XML 30 R19.htm IDEA: XBRL DOCUMENT
v3.26.1

Derivative financial instruments | 6 Months Ended
--- | ---
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative financial instruments | 11. Derivative financial instruments As part of managing interest rate risk, the Company enters into interest rate swap agreements to modify the repricing characteristics of certain portions of the Company’s portfolios of earning assets and interest-bearing liabilities. The Company designates interest rate swap agreements utilized in the management of interest rate risk as either fair value hedges or cash flow hedges. Interest rate swap agreements are generally entered into with counterparties that meet established credit standards and most contain master netting, collateral and/or settlement provisions protecting the at-risk party. 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. The Company utilizes commitments to sell residential and commercial real estate loans to hedge the exposure to changes in fair value of real estate loans held for sale. Such commitments have generally been designated as fair value hedges. The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in the fair value of certain commitments to originate real estate loans for sale. Changes in unrealized gains and losses as a result of such activities are included in Mortgage banking revenues in the Company's Consolidated Statement of Income and, in general, are realized in subsequent periods as the related loans are sold and commitments satisfied. As described in note 1, the Company elected to prospectively measure its residential mortgage loan servicing right assets at fair value. In preparation for this election, on December 31, 2025 the Company began economically hedging the risk of fair value changes in those residential mortgage loan servicing right assets through the use of various interest rate and other derivative contracts with a total notional value of $1.4 billion and $1.6 billion at June 30, 2026 and December 31, 2025, respectively. Changes in the fair value of such derivative contracts in 2026 are included in Mortgage banking revenues in the Company's Consolidated Statement of Income. Other derivative financial instruments not designated as hedging instruments included interest rate contracts, foreign exchange and other option and futures contracts. Interest rate contracts not designated as hedging instruments had notional values of $48.5 billion and $43.0 billion at June 30, 2026 and December 31, 2025, respectively. The notional amounts of foreign currency and other option and futures contracts not designated as hedging instruments aggregated $2.4 billion at each of June 30, 2026 and December 31, 2025. 11. Derivative financial instruments 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.
| 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. 11. Derivative financial instruments
| Amount of Gain (Loss) Recognized
| Six 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) | $ | (87) |  |  | $ | 87 |  |  | $ | 147 |  |  | $ | (147) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |
Interest rate and other contracts (b) | $ | 27 |  |  |  |  | $ | 12 |  |  |
Foreign exchange and other option and futures contracts (c) | 11 |  |  |  |  | 6 |  |  |
Total | $ | 38 |  |  |  |  | $ | 18 |  |  |
__________________________________________________________________________________ (a)Reported as an adjustment to Interest expense in the Company's Consolidated Statement of Income. (b)Includes gains of $26 million and $12 million in Trading account and other non-hedging derivative gains for the six months ended June 30, 2026 and 2025, respectively, and gains of $1 million in Mortgage banking revenues in the Company's Consolidated Statement of Income for the six months ended June 30, 2026. (c)Included in Trading account and other non-hedging derivative gains in the Company's Consolidated Statement of Income.
| 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) |
The net effect of interest rate swap agreements was to increase net interest income by $5 million and $6 million during the three-month and six-month periods ended June 30, 2026, respectively, and to decrease net interest income by $44 million and $106 million during the three-month and six-month periods ended June 30, 2025, respectively. The amount of interest income recognized in the Company's Consolidated Statement of Income associated with derivatives designated as cash flow hedges was an increase of $8 million and a decrease of $33 million for the three-month periods ended June 30, 2026 and 2025, respectively, and an increase of $13 million and a decrease of $86 million for the six-month periods ended June 30, 2026 and 2025, respectively. As of June 30, 2026, the unrealized loss recognized in other comprehensive income related to cash flow hedges was $68 million of which losses of $39 million are expected to be reclassified into earnings over the next twelve months. The Company predominantly clears non-customer derivative transactions through a clearinghouse, rather than directly with counterparties. The transactions cleared through a clearinghouse require initial margin collateral and variation margin payments depending on the contracts being in a net asset or liability position. The amount of initial margin collateral posted by the Company was $161 million and $224 million at June 30, 2026 and December 31, 2025, respectively. The fair value asset and liability amounts of derivative contracts have been reduced by variation margin payments treated as settlements as described herein. Variation margin on derivative contracts not treated as settlements continues to represent collateral posted or received by the Company. The Company does not offset derivative asset and liability positions in its consolidated financial statements. The Company’s exposure to credit risk by entering into derivative contracts is mitigated through master netting agreements and collateral posting or settlement requirements. Master netting agreements covering interest rate and foreign exchange contracts with the same party include a right to set-off that becomes enforceable in the event of default, early termination or under other specific conditions. Interest rate swap agreements entered into with customers are subject to the Company’s credit risk standards and may contain illiquid cross-collateral provisions with customer credit facilities. Information about master netting agreements and collateral postings related to the derivative instruments in the Company's Consolidated Balance Sheet follows. 11. Derivative financial instruments
(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.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 18 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-18 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 18 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-18 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 505 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 18 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481112/505-10-50-18 Reference 4: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 181 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-181 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 182 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-182 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 184 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-184 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 185 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-185 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(5) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4H -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4H Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4H -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4H Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 15 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480960/815-15-50-3 Reference 16: http://www.xbrl.org/2003/role/exampleRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 183 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480401/815-10-55-183 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(4) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4K -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4K Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4I -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4I Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 4F -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-4F Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(iii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(ii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 26: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-2 Reference 27: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1B -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1B Reference 28: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 29: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 30: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 31: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-1A Reference 32: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent Reference 33: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration