BORROWED FUNDS

12 Months Ended

Dec. 31, 2025

Debt Disclosure [Abstract]

BORROWED FUNDS

NOTE 11 - BORROWED FUNDS

Short-term borrowed funds

Borrowings with original maturities of one year or less are classified as short-term and were comprised of the following:    

	December 31,
(dollars in millions)	2025	2024
Other short-term borrowed funds(1)	$58	$—
Total short-term borrowed funds	$58	$—

(1) Consists primarily of short positions held by the Company’s commercial broker dealer. See Note 12 for additional information regarding forward purchase contracts entered into to economically hedge these short positions.

Long-term borrowed funds

The following table presents a summary of the carrying amount of the Company’s long-term borrowed funds:

	December 31,
(dollars in millions)	2025	2024
Parent Company:
4.350% fixed-rate subordinated debt, due August 2025	$—	$133
4.300% fixed-rate subordinated debt, due December 2025	—	336
2.850% fixed-rate senior unsecured notes, due July 2026	500	499
5.841% fixed/floating-rate senior unsecured notes, due January 2030	1,246	1,245
2.500% fixed-rate senior unsecured notes, due February 2030	299	299
3.250% fixed-rate senior unsecured notes, due April 2030	747	747
3.750% fixed-rate reset subordinated debt, due February 2031	69	69
4.300% fixed-rate reset subordinated debt, due February 2031	135	135
4.350% fixed-rate reset subordinated debt, due February 2031	60	60
5.253% fixed/floating-rate senior unsecured notes, due March 2031	747	—
5.718% fixed/floating-rate senior unsecured notes, due July 2032	1,244	1,243
2.638% fixed-rate subordinated debt, due September 2032	577	570
6.645% fixed/floating-rate senior unsecured notes, due April 2035	746	745
5.641% fixed-rate reset subordinated debt, due May 2037	398	398
CBNA’s Global Note Program:
2.250% senior unsecured notes, due April 2025	—	750
5.284% fixed/floating-rate senior unsecured notes, due January 2026(1)	—	350
3.750% senior unsecured notes, due February 2026(2)	—	492
4.575% fixed/floating-rate senior unsecured notes, due August 2028	799	798
Additional Borrowings by CBNA and Other Subsidiaries:
Federal Home Loan Bank advances, 3.918% weighted average rate, due through 2045(3)	2,013	53
Secured borrowings, 5.539% weighted average rate, due through 2031(3)(4)	1,625	3,461
Other	19	18
Total long-term borrowed funds	$11,224	$12,401

(1) Notes were redeemed in January 2025.

(2) Notes were redeemed in November 2025.

(3) Rate disclosed reflects the weighted average rate as of December 31, 2025.

(4) Collateralized by loans. See Note 9 for additional information.

At December 31, 2025, the Company’s long-term borrowed funds include principal balances of $11.3 billion and unamortized debt issuance costs and discounts of $71 million. At December 31, 2024, the Company’s long-term borrowed funds include principal balances of $12.5 billion, unamortized debt issuance costs and discounts of $85 million, and hedging basis adjustments of ($8) million. See Note 12 for further information about the Company’s hedging of certain long-term borrowed funds.

Advances, lines of credit, and letters of credit from the FHLB are collateralized primarily by residential mortgages and home equity products sufficient to satisfy the collateral maintenance level established by the FHLB. The utilized FHLB borrowing capacity, primarily for advances and letters of credit, was $7.1 billion and $4.6 billion at December 31, 2025 and 2024, respectively. The Company’s available FHLB borrowing capacity was $22.1 billion and $21.1 billion at December 31, 2025 and 2024, respectively. The Company can also borrow from the FRB discount window to meet short-term liquidity requirements. Collateral, including certain loans, is pledged to support this borrowing capacity. At December 31, 2025, the Company’s unused secured borrowing capacity was approximately $75.2 billion, which includes unencumbered securities, FHLB borrowing capacity, and FRB discount window capacity.

The following table presents a summary of maturities for the Company’s long-term borrowed funds at December 31, 2025:

(dollars in millions)	Parent Company	CBNA and Other Subsidiaries	Consolidated
Year
2026	$500	$—	$500
2027	—	2,030	2,030
2028	—	1,982	1,982
2029	—	6	6
2030	2,292	298	2,590
2031 and thereafter	3,976	140	4,116
Total	$6,768	$4,456	$11,224