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FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
Summary of difference between aggregated fair value and unpaid principal balance of loans held for sale
The following table presents the difference between the aggregate fair value and the aggregate unpaid principal balance of LHFS measured at fair value:
December 31, 2025December 31, 2024
(dollars in millions)Aggregate Fair ValueAggregate Unpaid PrincipalAggregate Fair Value Greater (Less) Than Aggregate Unpaid PrincipalAggregate Fair ValueAggregate Unpaid PrincipalAggregate Fair Value Greater (Less) Than Aggregate Unpaid Principal
Residential mortgage loans held for sale
$895 $872 $23 $633 $625 $8 
Commercial loans held for sale
170 185 (15)192 199 (7)
Assets and liabilities measured on recurring basis
The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities, on a recurring basis at December 31, 2025:
(dollars in millions)TotalLevel 1Level 2Level 3
Debt securities available for sale:
Mortgage-backed securities$32,484 $— $32,484 $— 
Collateralized loan obligations89 — 89 — 
State and political subdivisions1 — 1 — 
U.S. Treasury and other3,123 3,123 — — 
Total debt securities available for sale35,697 3,123 32,574 — 
Loans held for sale:
Residential loans held for sale895 — 895 — 
Commercial loans held for sale170 — 170 — 
Total loans held for sale, at fair value1,065 — 1,065 — 
Mortgage servicing rights1,455 — — 1,455 
Derivative assets:
Interest rate contracts553 — 553 — 
Foreign exchange contracts510 — 510 — 
Commodities contracts458 — 458 — 
TBA contracts2 — 2 — 
Other contracts9 — 1 8 
Total derivative assets1,532 — 1,524 8 
Equity securities, at fair value(1)
251 251 — — 
Short-term investments
72 40 32 — 
Total assets$40,072 $3,414 $35,195 $1,463 
Derivative liabilities:
Interest rate contracts$471 $— $471 $— 
Foreign exchange contracts373 — 373 — 
Commodities contracts405 — 405 — 
TBA contracts6 — 6 — 
Other contracts3 — — 3 
Total derivative liabilities1,258 — 1,255 3 
Short-term borrowed funds
52 40 12 — 
Other liabilities
157 — 157 — 
Total liabilities$1,467 $40 $1,424 $3 
(1) Excludes investments of $66 million included in Other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $14 million at December 31, 2025, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments.
The following table presents assets and liabilities measured at fair value, including gross derivative assets and liabilities, on a recurring basis at December 31, 2024:
(dollars in millions)TotalLevel 1Level 2Level 3
Debt securities available for sale:
Mortgage-backed securities$29,055 $— $29,055 $— 
Collateralized loan obligations184 — 184 — 
State and political subdivisions1 — 1 — 
U.S. Treasury and other3,525 3,525 — — 
Total debt securities available for sale32,765 3,525 29,240 — 
Loans held for sale:
Residential loans held for sale633 — 633 — 
Commercial loans held for sale192 — 192 — 
Total loans held for sale, at fair value825 — 825 — 
Mortgage servicing rights1,491 — — 1,491 
Derivative assets:
Interest rate contracts562 — 562 — 
Foreign exchange contracts472 — 472 — 
Commodities contracts429 — 429 — 
TBA contracts10 — 10 — 
Other contracts3 — — 3 
Total derivative assets1,476 — 1,473 3 
Equity securities, at fair value(1)
162 162 — — 
Short-term investments
53 40 13 — 
Total assets$36,772 $3,727 $31,551 $1,494 
Derivative liabilities:
Interest rate contracts$910 $— $910 $— 
Foreign exchange contracts411 — 411 — 
Commodities contracts379 — 379 — 
TBA contracts8 — 8 — 
Other contracts2 — — 2 
Total derivative liabilities1,710 — 1,708 2 
Short-term borrowed funds
— — — — 
Other liabilities
101 — 101 — 
Total liabilities$1,811 $— $1,809 $2 
(1) Excludes investments of $58 million included in Other assets in the Consolidated Balance Sheets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient. These investments include capital contributions to private investment funds and have unfunded capital commitments of $24 million at December 31, 2024, which may be called at any time during prescribed time periods. The credit exposure is generally limited to the carrying amount of investments made and unfunded capital commitments.
Assets measured at fair value on recurring basis
The following table presents a roll forward of assets and liabilities measured at fair value on a recurring basis and classified as Level 3:
For the Year Ended December 31,
20252024
(dollars in millions)Mortgage Servicing RightsOther Derivative ContractsMortgage Servicing RightsOther Derivative Contracts
Beginning balance$1,491 $1 $1,552 $7 
Issuances159 70 106 60 
Sales(1)
(72)— (99)— 
Settlements(2)
(168)(77)(176)(41)
Changes in fair value recognized in earnings(3)
45 11 108 (25)
Ending balance$1,455 $5 $1,491 $1 
(1) For MSRs, represents the sale of the excess servicing yield on MSRs.
(2) For MSRs, represents changes in value of the MSRs due to i) the passage of time including the impact from both regularly scheduled loan principal payments and partial paydowns, and ii) loans that paid off during the period. For other derivative contracts, represents the closeout of interest rate lock commitments and other cash payments.
(3) Represents changes in fair value primarily driven by market conditions. These changes are recorded in Mortgage banking fees and Other income in the Consolidated Statements of Operations.
The following table presents quantitative information about significant unobservable inputs utilized to measure the fair of Level 3 assets and liabilities:
December 31, 2025December 31, 2024
Financial Instrument(1)
Valuation TechniqueUnobservable InputRange (Weighted Average)Range (Weighted Average)
Mortgage servicing rightsDiscounted Cash FlowConstant prepayment rate
5.51-14.62% CPR (7.00% CPR)
5.08-16.32% CPR (6.70% CPR)
Option adjusted spread
398-1,038 bps (588 bps)
398-1,058 bps (632 bps)
Other derivative contractsInternal ModelPull through rate
8.10-99.88% (84.71%)
5.09-99.90% (83.06%)
MSR value
24.53-177.00 bps (134.25 bps)
23.91-171.64 bps (121.23 bps)
(1) Disclosures related to the fair value measurement of financial instruments deemed immaterial are not included.
Gains (losses) on assets and liabilities measured on a nonrecurring basis included in earnings
The following table presents losses recorded in earnings on assets measured at fair value on a nonrecurring basis, regardless of whether the asset is still held at period end:
Year Ended December 31,
(dollars in millions)202520242023
Collateral-dependent loans ($136)($200)($138)
Fair value of assets and liabilities measured on a nonrecurring basis
The following table presents the carrying amount and fair value hierarchy of assets that were held as of period end and for which a nonrecurring fair value adjustment was recorded in earnings during the year. Carrying amount represents the fair value of the asset as of its measurement date, or date on which a nonrecurring fair value adjustment was recorded.
December 31, 2025December 31, 2024
(dollars in millions)TotalLevel 1Level 2Level 3TotalLevel 1Level 2Level 3
Collateral-dependent loans $135 $— $24 $111 $979 $— $979 $— 
Assets and liabilities measured at fair value
The following tables present the estimated fair value for financial instruments not recorded at fair value in the Consolidated Financial Statements. The carrying amounts are recorded in the Consolidated Balance Sheets under the indicated captions.
December 31, 2025
TotalLevel 1Level 2Level 3
(dollars in millions)Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
Financial assets(1):
Debt securities held to maturity$7,933 $7,150 $— $— $7,595 $6,812 $338 $338 
Loans held for sale
133 133 — — — — 133 133 
Net loans and leases
140,749 140,131 — — 437 437 140,312 139,694 
Other assets807 807 — — 768 768 39 39 
Financial liabilities:
Deposits183,313 183,277 — — 183,313 183,277 — — 
Short-term borrowed funds6 6 — — 6 6 — — 
Long-term borrowed funds11,224 11,472 — — 11,224 11,472 — — 
December 31, 2024
TotalLevel 1Level 2Level 3
(dollars in millions)Carrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair ValueCarrying ValueEstimated Fair Value
Financial assets(1):
Debt securities held to maturity$8,599 $7,540 $— $— $8,187 $7,136 $412 $404 
Loans held for sale
33 33 — — — — 33 33 
Net loans and leases
137,142 136,293 — — 979 979 136,163 135,314 
Other assets710 710 — — 689 689 21 21 
Financial liabilities:
Deposits174,776 174,651 — — 174,776 174,651 — — 
Long-term borrowed funds12,401 12,247 — — 12,401 12,247 — — 
(1) Excludes cash-related financial instruments not recorded at fair value in the Consolidated Balance Sheets with a carrying value and estimated fair value of $13.6 billion and $11.2 billion at December 31, 2025 and 2024, respectively.