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Derivative financial instruments (Tables) | 6 Months Ended
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Jun. 30, 2026
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 those agreements were intended to hedge follows.
| Notional Amount |  | Weighted-Average Maturity (In years) |  | Weighted- Average Rate |  | Fair Value Gain (Loss) (a)
(Dollars in millions) |  |  | Fixed |  | Variable |
June 30, 2026 |  |  |  |  |  |  |  |  |
Fair value hedges: |  |  |  |  |  |  |  |  |
Fixed rate long-term borrowings (b) | $ | 6,100 |  |  | 4.3 |  | 3.56 | % |  | 3.79 | % |  | $ | (10) |
Cash flow hedges: |  |  |  |  |  |  |  |  |
Interest payments on variable rate commercial real estate and commercial and industrial loans (b) (c) | 26,200 |  |  | 1.1 |  | 3.70 |  |  | 3.63 |  |  | (7) |
Total | $ | 32,300 |  |  | 1.7 |  |  |  |  |  | $ | (17) |
December 31, 2025 |  |  |  |  |  |  |  |  |
Fair value hedges: |  |  |  |  |  |  |  |  |
Fixed rate long-term borrowings (b) (d) | $ | 6,100 |  |  | 4.8 |  | 3.56 | % |  | 4.02 | % |  | $ | (9) |
Cash flow hedges: |  |  |  |  |  |  |  |  |
Interest payments on variable rate commercial real estate and commercial and industrial loans (b) (e) | 24,900 |  |  | 1.3 |  | 3.63 |  |  | 3.81 |  |  | (6) |
Total | $ | 31,000 |  |  | 2.0 |  |  |  |  |  | $ | (15) |
__________________________________________________________________________________ (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 losses of $92 million and $6 million at June 30, 2026 and December 31, 2025, respectively. The impact of such payments on interest rate swap agreements designated as cash flow hedges was a net settlement of losses of $61 million and of gains of $96 million at June 30, 2026 and December 31, 2025, respectively. (b)Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate. (c)Includes notional amount and terms of $10.2 billion of forward-starting interest rate swap agreements that become effective in 2026 and 2027. (d)Includes notional amount and terms of $1.8 billion of forward-starting interest rate swap agreements that became effective in 2026. (e)Includes notional amount and terms of $9.7 billion of forward-starting interest rate swap agreements that become effective in 2026 and 2027.
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) | June 30, 2026 |  | December 31, 2025 |  | June 30, 2026 |  | December 31, 2025
Derivatives designated and qualifying as hedging instruments (a) |  |  |  |  |  |  |
Interest rate swap agreements | $ | — |  |  | $ | — |  |  | $ | 17 |  |  | $ | 15 |
Commitments to sell real estate loans | — |  |  | 1 |  |  | 1 |  |  | 1 |
| — |  |  | 1 |  |  | 18 |  |  | 16 |
Derivatives not designated and qualifying as hedging instruments (a) |  |  |  |  |  |  |
Mortgage banking: |  |  |  |  |  |  |
Commitments to originate real estate loans for sale | 9 |  |  | 17 |  |  | 4 |  |  | 21 |
Commitments to sell real estate loans | 8 |  |  | 24 |  |  | 2 |  |  | 6 |
Interest rate and other contracts (b) | 7 |  |  | 13 |  |  | 3 |  |  | 2 |
| 24 |  |  | 54 |  |  | 9 |  |  | 29 |
Other: |  |  |  |  |  |  |
Interest rate contracts (b) | 196 |  |  | 173 |  |  | 456 |  |  | 394 |
Foreign exchange and other option and futures contracts | 22 |  |  | 17 |  |  | 20 |  |  | 15 |
| 218 |  |  | 190 |  |  | 476 |  |  | 409 |
Total derivatives | $ | 242 |  |  | $ | 245 |  |  | $ | 503 |  |  | $ | 454 |
__________________________________________________________________________________ (a)Asset derivatives are included in Accrued interest and other assets and liability derivatives are included in Accrued interest and other liabilities in the Consolidated Balance Sheet. (b)The impact of variation margin payments at June 30, 2026 and December 31, 2025 was a reduction of the estimated fair value of interest rate contracts not designated as hedging instruments in an asset position of $366 million and $341 million, respectively, and in a liability position of $6 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) | June 30, 2026 |  | December 31, 2025 |  | June 30, 2026 |  | December 31, 2025
Location in the Consolidated Balance Sheet of the Hedged Items in Fair Value Hedges |  |  |  |  |  |  |
Long-term borrowings | $ | 5,986 |  |  | $ | 6,072 |  |  | $ | (103) |  |  | $ | (16) |
Information about Fair Values of Derivative Instruments in Consolidated Statement of Income |
| Amount of Gain (Loss) Recognized
| Three Months Ended June 30,
| 2026 |  | 2025
(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) | $ | (54) |  |  | $ | 54 |  |  | $ | 54 |  |  | $ | (55) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Interest rate and other contracts (b) | $ | 17 |  |  |  |  | $ | 7 |  |  |
Foreign exchange and other option and futures contracts (c) | 5 |  |  |  |  | 2 |  |  |
Total | $ | 22 |  |  |  |  | $ | 9 |  |  |
__________________________________________________________________________________ (a)Reported as an adjustment to Interest expense in the Company's Consolidated Statement of Income. (b)Includes gains of $18 million and $7 million in Trading account and other non-hedging derivative gains for the three months ended June 30, 2026 and 2025, respectively, and losses of $1 million in Mortgage banking revenues in the Company's Consolidated Statement of Income for the three months ended June 30, 2026. (c)Included in Trading account and other non-hedging derivative gains in the Company's Consolidated Statement of Income.
Offsetting Liabilities | Information about master netting agreements and collateral postings related to the derivative instruments in the Company's Consolidated Balance Sheet follows.
(Dollars in millions) | Fair Value Amount in Consolidated Balance Sheet |  | Master Netting Agreements |  |  |  | Collateral (a) |  | Net Amount
June 30, 2026 |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |
Clearinghouse settlements (b) | $ | 13 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 13 |
Subject to master netting agreements | 167 |  |  | (14) |  |  |  |  | (148) |  |  | 5 |
Not subject to master netting agreements (c) | 62 |  |  | — |  |  |  |  | (1) |  |  | 61 |
Total | $ | 242 |  |  | $ | (14) |  |  |  |  | $ | (149) |  |  | $ | 79 |
Derivative liabilities |  |  |  |  |  |  |  |  |
Clearinghouse settlements (b) | $ | 21 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 21 |
Subject to master netting agreements | 14 |  |  | (14) |  |  |  |  | 3 |  |  | 3 |
Not subject to master netting agreements (c) | 468 |  |  | — |  |  |  |  | — |  |  | 468 |
Total | $ | 503 |  |  | $ | (14) |  |  |  |  | $ | 3 |  |  | $ | 492 |
December 31, 2025 |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |
Clearinghouse settlements (b) | $ | 8 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 8 |
Subject to master netting agreements | 98 |  | (33) |  |  |  |  | (49) |  |  | 16
Not subject to master netting agreements (c) | 139 |  |  | — |  |  |  |  | — |  |  | 139 |
Total | $ | 245 |  |  | $ | (33) |  |  |  |  | $ | (49) |  |  | $ | 163 |
Derivative liabilities |  |  |  |  |  |  |  |  |
Clearinghouse settlements (b) | $ | 16 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 16 |
Subject to master netting agreements | 38 |  | (33) |  |  |  |  | (7) |  |  | (2) |
Not subject to master netting agreements (c) | 400 |  |  | — |  |  |  |  | (1) |  |  | 399 |
Total | $ | 454 |  |  | $ | (33) |  |  |  |  | $ | (8) |  |  | $ | 413 |
__________________________________________________________________________________ (a)Includes postings of cash and investment securities only and excludes initial margin amounts posted to clearinghouses. (b)The fair value of derivative assets and derivative liabilities subject to clearinghouse settlements are presented net of the variation margin payments in the Consolidated Balance Sheet. (c)The fair value of derivative assets and derivative liabilities not subject to master netting agreements predominantly relate to transactions with commercial customers.
Offsetting Assets | Information about master netting agreements and collateral postings related to the derivative instruments in the Company's Consolidated Balance Sheet follows.
(Dollars in millions) | Fair Value Amount in Consolidated Balance Sheet |  | Master Netting Agreements |  |  |  | Collateral (a) |  | Net Amount
June 30, 2026 |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |
Clearinghouse settlements (b) | $ | 13 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 13 |
Subject to master netting agreements | 167 |  |  | (14) |  |  |  |  | (148) |  |  | 5 |
Not subject to master netting agreements (c) | 62 |  |  | — |  |  |  |  | (1) |  |  | 61 |
Total | $ | 242 |  |  | $ | (14) |  |  |  |  | $ | (149) |  |  | $ | 79 |
Derivative liabilities |  |  |  |  |  |  |  |  |
Clearinghouse settlements (b) | $ | 21 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 21 |
Subject to master netting agreements | 14 |  |  | (14) |  |  |  |  | 3 |  |  | 3 |
Not subject to master netting agreements (c) | 468 |  |  | — |  |  |  |  | — |  |  | 468 |
Total | $ | 503 |  |  | $ | (14) |  |  |  |  | $ | 3 |  |  | $ | 492 |
December 31, 2025 |  |  |  |  |  |  |  |  |
Derivative assets |  |  |  |  |  |  |  |  |
Clearinghouse settlements (b) | $ | 8 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 8 |
Subject to master netting agreements | 98 |  | (33) |  |  |  |  | (49) |  |  | 16
Not subject to master netting agreements (c) | 139 |  |  | — |  |  |  |  | — |  |  | 139 |
Total | $ | 245 |  |  | $ | (33) |  |  |  |  | $ | (49) |  |  | $ | 163 |
Derivative liabilities |  |  |  |  |  |  |  |  |
Clearinghouse settlements (b) | $ | 16 |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 16 |
Subject to master netting agreements | 38 |  | (33) |  |  |  |  | (7) |  |  | (2) |
Not subject to master netting agreements (c) | 400 |  |  | — |  |  |  |  | (1) |  |  | 399 |
Total | $ | 454 |  |  | $ | (33) |  |  |  |  | $ | (8) |  |  | $ | 413 |
__________________________________________________________________________________ (a)Includes postings of cash and investment securities only and excludes initial margin amounts posted to clearinghouses. (b)The fair value of derivative assets and derivative liabilities subject to clearinghouse settlements are presented net of the variation margin payments in the Consolidated Balance Sheet. (c)The fair value of derivative assets and derivative liabilities not subject to master netting agreements predominantly relate to transactions with commercial customers.

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