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Derivative financial instruments (Tables) | 9 Months Ended
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Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Information about Interest Rate Swap Agreements | Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:
| Notional Amount |  | Weighted-Average Maturity (In years) |  | Weighted- Average Rate |  | Estimated Fair Value Gain (Loss) (a)
(Dollars in millions) |  |  | Fixed |  | Variable |
September 30, 2024 |  |  |  |  |  |  |  |  |
Fair value hedges: |  |  |  |  |  |  |  |  |
Fixed rate long-term borrowings (b) (d) | $ | 3,850 |  |  | 5.4 |  | 3.48 | % |  | 5.06 | % |  | $ | (8) |
Fixed rate investment securities available for sale (c) | 15 |  |  | 0.3 |  | 4.84 |  |  | 4.86 |  |  | — |
Cash flow hedges: |  |  |  |  |  |  |  |  |
Interest payments on variable rate commercial real estate and commercial and industrial loans (b) (e) | 26,705 |  |  | 1.5 |  | 3.39 |  |  | 5.02 |  |  | (30) |
Total | $ | 30,570 |  |  | 2.0 |  |  |  |  |  | $ | (38) |
December 31, 2023 |  |  |  |  |  |  |  |  |
Fair value hedges: |  |  |  |  |  |  |  |  |
Fixed rate long-term borrowings (b) (f) | $ | 3,000 |  |  | 5.8 |  | 3.45 | % |  | 5.62 | % |  | $ | (1) |
Cash flow hedges: |  |  |  |  |  |  |  |  |
Interest payments on variable rate commercial real estate loans (b) (g) | 23,977 |  |  | 1.7 |  | 3.45 |  |  | 5.36 |  |  | 11 |
Total | $ | 26,977 |  |  | 2.2 |  |  |  |  |  | $ | 10 |
_______________________________________________________________ (a)Certain clearinghouse exchanges consider payments by counterparties for variation margin on derivative instruments to be settlements of those positions. The impact of such payments for interest rate swap agreements designated as fair value hedges was a net settlement of gains of $15 million at September 30, 2024 and of losses of $43 million at December 31, 2023. The impact of such payments on interest rate swap agreements designated as cash flow hedges was a net settlement of gains of $89 million at September 30, 2024 and of losses of $214 million at December 31, 2023. (b)Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate. (c)Under the terms of these agreements, the Company receives settlement amounts at a variable rate and pays at a fixed rate. (d)Includes notional amount and terms of $1.9 billion of forward-starting interest rate swap agreements that become effective in 2025. (e)Includes notional amount and terms of $6.6 billion of forward-starting interest rate swap agreements that become effective in 2024, 2025 and 2026. (f)Includes notional amount and terms of $1.0 billion of forward-starting interest rate swap agreements that become effective in 2025. (g)Includes notional amount and terms of $9.0 billion of forward-starting interest rate swap agreements that become effective in 2024.
Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet | Information about the fair values of derivative instruments in the Company’s Consolidated Balance Sheet and Consolidated Statement of Income follows:
| Asset Derivatives |  | Liability Derivatives
| Fair Value |  | Fair Value
(Dollars in millions) | September 30, 2024 |  | December 31, 2023 |  | September 30, 2024 |  | December 31, 2023
Derivatives designated and qualifying as hedging instruments (a) |  |  |  |  |  |  |
Interest rate swap agreements | $ | — |  |  | $ | 12 |  |  | $ | 38 |  |  | $ | 2 |
Commitments to sell real estate loans | 1 |  |  | 6 |  |  | 17 |  |  | 8 |
| 1 |  |  | 18 |  |  | 55 |  |  | 10 |
Derivatives not designated and qualifying as hedging instruments (a) |  |  |  |  |  |  |
Mortgage banking: |  |  |  |  |  |  |
Mortgage-related commitments to originate real estate loans for sale | 29 |  |  | 15 |  |  | 21 |  |  | 32 |
Commitments to sell real estate loans | 24 |  |  | 35 |  |  | 19 |  |  | 3 |
| 53 |  |  | 50 |  |  | 40 |  |  | 35 |
Other: |  |  |  |  |  |  |
Interest rate contracts (b) | 218 |  |  | 237 |  |  | 571 |  |  | 879 |
Foreign exchange and other option and futures contracts | 14 |  |  | 19 |  |  | 13 |  |  | 19 |
| 232 |  |  | 256 |  |  | 584 |  |  | 898 |
Total derivatives | $ | 286 |  |  | $ | 324 |  |  | $ | 679 |  |  | $ | 943 |
_______________________________________________________________ (a)Asset derivatives are reported in "accrued interest and other assets" and liability derivatives are reported in "accrued interest and other liabilities" in the Consolidated Balance Sheet. (b)The impact of variation margin payments at September 30, 2024 and December 31, 2023 was a reduction of the estimated fair value of interest rate contracts not designated as hedging instruments in an asset position of $496 million and $783 million, respectively, as of each period end, and in a liability position of $51 million and $32 million, respectively.
| Carrying Amount of the Hedged Item |  | Cumulative Amount of Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount of the Hedged Item
(Dollars in millions) | September 30, 2024 |  | December 31, 2023 |  | September 30, 2024 |  | December 31, 2023
Location in the Consolidated Balance Sheet of the Hedged Items in Fair Value Hedges |  |  |  |  |  |  |
Long-term borrowings | $ | 3,853 |  |  | $ | 2,954 |  |  | $ | 8 |  |  | $ | (44) |
Investment securities available for sale | 391 |  |  |  |  | — |  |  |
Information about Fair Values of Derivative Instruments in Consolidated Statement of Income |
| Amount of Gain (Loss) Recognized
| Three Months Ended September 30,
| 2024 |  | 2023
(Dollars in millions) | Derivative |  | Hedged Item |  | Derivative |  | Hedged Item
Derivatives in fair value hedging relationships |  |  |  |  |  |  |
Interest rate swap agreements: |  |  |  |  |  |  |
Fixed rate long-term borrowings (a) | $ | 130 |  |  | $ | (130) |  |  | $ | (61) |  |  | $ | 61 |
Fixed rate investment securities available for sale (b) | — |  |  | — |  |  |  |  |
Total | $ | 130 |  |  | $ | (130) |  |  | $ | (61) |  |  | $ | 61 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Interest rate contracts (c) | $ | 5 |  |  |  |  | $ | 6 |  |  |
Foreign exchange and other option and futures contracts (c) | 5 |  |  |  |  | 4 |  |  |
Total | $ | 10 |  |  |  |  | $ | 10 |  |  |
| Amount of Gain (Loss) Recognized
| Nine Months Ended September 30,
| 2024 |  | 2023
(Dollars in millions) | Derivative |  | Hedged Item |  | Derivative |  | Hedged Item
Derivatives in fair value hedging relationships |  |  |  |  |  |  |
Interest rate swap agreements: |  |  |  |  |  |  |
Fixed rate long-term borrowings (a) | $ | 52 |  |  | $ | (52) |  |  | $ | (95) |  |  | $ | 96 |
Fixed rate investment securities available for sale (b) | — |  |  | — |  |  |  |  |
Total | $ | 52 |  |  | $ | (52) |  |  | $ | (95) |  |  | $ | 96 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Interest rate contracts (c) | $ | 11 |  |  |  |  | $ | 25 |  |  |
Foreign exchange and other option and futures contracts (c) | 13 |  |  |  |  | 11 |  |  |
Total | $ | 24 |  |  |  |  | $ | 36 |  |  |
_______________________________________________________________ (a)Reported as an adjustment to "interest expense" in the Consolidated Statement of Income. (b)Reported as an adjustment to "interest income" in the Consolidated Statement of Income. (c)Reported as "trading account and other non-hedging derivative gains" in the Consolidated Statement of Income.

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- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4E -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4E Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4A + Details
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