XML 37 R11.htm IDEA: XBRL DOCUMENT
v3.25.2

FAIR VALUE | 6 Months Ended
--- | ---
Jun. 30, 2025
Fair Value Disclosures [Abstract] |
FAIR VALUE | FAIR VALUE Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. For more information about our valuation methodologies for assets and liabilities measured at fair value, as well as the fair value hierarchy, see Note 3 of our 2024 Form 10-K. Fair Value Hierarchy The following schedule presents assets and liabilities measured at fair value on a recurring basis:
(In millions) | June 30, 2025
Level 1 |  | Level 2 |  | Level 3 |  | Total
ASSETS |  |  |  |  |  |  |
Trading securities | $ | — |  |  | $ | 180 |  |  | $ | — |  |  | $ | 180 |
Available-for-sale securities: |  |  |  |  |  |  |
U.S. Treasury, agencies, and corporations | 1,101 |  |  | 6,954 |  |  | — |  |  | 8,055 |
Municipal securities | — |  |  | 1,036 |  |  | — |  |  | 1,036 |
Other debt securities | — |  |  | 25 |  |  | — |  |  | 25 |
Total available-for-sale | 1,101 |  |  | 8,015 |  |  | — |  |  | 9,116 |
Loans held for sale | — |  |  | 100 |  |  | — |  |  | 100 |
Other noninterest-bearing investments: |  |  |  |  |  |  |
Bank-owned life insurance | — |  |  | 567 |  |  | — |  |  | 567 |
Private equity investments 1 | 16 |  |  | — |  |  | 116 |  |  | 132 |
Other assets: |  |  |  |  |  |  |
Agriculture loan servicing | — |  |  | — |  |  | 20 |  |  | 20 |
Deferred compensation plan assets | 139 |  |  | — |  |  | — |  |  | 139 |
Derivatives | — |  |  | 376 |  |  | — |  |  | 376 |
Total assets | $ | 1,256 |  |  | $ | 9,238 |  |  | $ | 136 |  |  | $ | 10,630 |
LIABILITIES |  |  |  |  |  |  |
Fed funds and other short-term borrowings: |  |  |  |  |  |  |
Securities sold, not yet purchased | $ | 136 |  |  | $ | — |  |  | $ | — |  |  | $ | 136 |
Other liabilities: |  |  |  |  |  |  |
Derivatives | — |  |  | 274 |  |  | — |  |  | 274 |
Total liabilities | $ | 136 |  |  | $ | 274 |  |  | $ | — |  |  | $ | 410 |
1 The Level 1 private equity investments (“PEIs”) generally relate to the portion of our Small Business Investment Company (“SBIC”) investments and other similar investments that are publicly traded.
(In millions) | December 31, 2024
Level 1 |  | Level 2 |  | Level 3 |  | Total
ASSETS |  |  |  |  |  |  |
Trading securities | $ | — |  |  | $ | 35 |  |  | $ | — |  |  | $ | 35 |
Available-for-sale securities: |  |  |  |  |  |  |
U.S. Treasury, agencies, and corporations | 662 |  |  | 7,300 |  |  | — |  |  | 7,962 |
Municipal securities | — |  |  | 1,108 |  |  | — |  |  | 1,108 |
Other debt securities | — |  |  | 25 |  |  | — |  |  | 25 |
Total available-for-sale | 662 |  |  | 8,433 |  |  | — |  |  | 9,095 |
Loans held for sale | — |  |  | 25 |  |  | — |  |  | 25 |
Other noninterest-bearing investments: |  |  |  |  |  |  |
Bank-owned life insurance | — |  |  | 562 |  |  | — |  |  | 562 |
Private equity investments 1 | 3 |  |  | — |  |  | 105 |  |  | 108 |
Other assets: |  |  |  |  |  |  |
Agriculture loan servicing | — |  |  | — |  |  | 20 |  |  | 20 |
Deferred compensation plan assets | 149 |  |  | — |  |  | — |  |  | 149 |
Derivatives | — |  |  | 446 |  |  | — |  |  | 446 |
Total assets | $ | 814 |  |  | $ | 9,501 |  |  | $ | 125 |  |  | $ | 10,440 |
LIABILITIES |  |  |  |  |  |  |
Fed funds and other short-term borrowings: |  |  |  |  |  |  |
Securities sold, not yet purchased | $ | 21 |  |  | $ | — |  |  | $ | — |  |  | $ | 21 |
Other liabilities: |  |  |  |  |  |  |
Derivatives | — |  |  | 350 |  |  | — |  |  | 350 |
Total liabilities | $ | 21 |  |  | $ | 350 |  |  | $ | — |  |  | $ | 371 |
1 The Level 1 PEIs generally relate to the portion of our SBIC investments and other similar investments that are publicly traded. Fair Value Option for Certain Loans Held for Sale We have elected to apply the fair value option to certain commercial real estate (“CRE”) loans designated for sale to third-party conduits for securitization and hedged with derivative instruments. This election reduces accounting volatility that would otherwise arise from the mismatch between measuring loans held for sale at the lower of cost or fair value and derivatives at fair value, without requiring the application of hedge accounting. These loans are included in “Loans held for sale” on the consolidated balance sheet. Associated fair value gains and losses are included in “Capital markets fees and income” on the consolidated statement of income, while accrued interest is included in “Interest and fees on loans.” At June 30, 2025 and December 31, 2024, we had $100 million and $25 million, respectively, of loans measured at fair value, with corresponding unpaid principal balance of $100 million and $26 million. During the first six months of 2025 and 2024, we recognized approximately $3 million and $6 million, respectively, in net gains from loan sales and valuation adjustments related to loans measured at fair value and the associated derivatives. Level 3 Valuations Our Level 3 financial instruments include PEIs and agriculture loan servicing. For additional information regarding our Level 3 financial instruments, including the methods and significant assumptions used to estimate their fair value, see Note 3 of our 2024 Form 10-K. Roll-forward of Level 3 Fair Value Measurements The following schedule presents a roll-forward of assets and liabilities that are measured at fair value on a recurring basis using Level 3 inputs:
| Level 3 Instruments
| Three Months Ended June 30, 2025 |  | Three Months Ended June 30, 2024 |  | Six Months Ended June 30, 2025 |  | Six Months Ended June 30, 2024
(In millions) | Private equity investments |  | Ag loan servicing |  | Private equity investments |  | Ag loan servicing |  | Private equity investments |  | Ag loan servicing |  | Private equity investments |  | Ag loan servicing
Balance at beginning of period | $ | 109 |  |  | $ | 19 |  |  | $ | 98 |  |  | $ | 19 |  |  | $ | 105 |  |  | $ | 20 |  |  | $ | 92 |  |  | $ | 19 |
Unrealized securities gains, net | 20 |  |  | — |  |  | 2 |  |  | — |  |  | 24 |  |  | — |  |  | 2 |  |  | — |
Other noninterest income | — |  |  | 1 |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
Purchases | 4 |  |  | — |  |  | 2 |  |  | — |  |  | 5 |  |  | — |  |  | 9 |  |  | — |
Cost of investments sold | (5) |  |  | — |  |  | (1) |  |  | — |  |  | (6) |  |  | — |  |  | (2) |  |  | — |
Transfers out | (12) |  |  | — |  |  | — |  |  | — |  |  | (12) |  |  | — |  |  | — |  |  | — |
Balance at end of period | $ | 116 |  |  | $ | 20 |  |  | $ | 101 |  |  | $ | 20 |  |  | $ | 116 |  |  | $ | 20 |  |  | $ | 101 |  |  | $ | 20 |
The roll-forward of Level 3 instruments includes the following realized gains and losses recognized in “Securities gains (losses), net” on the consolidated statement of income for the periods presented:
(In millions) | Three Months Ended |  | Six Months Ended
June 30, 2025 |  | June 30, 2024 |  | June 30, 2025 |  | June 30, 2024
Securities gains (losses), net | $ | (5) |  |  | $ | (1) |  |  | $ | (5) |  |  | $ | 1 |
Nonrecurring Fair Value Measurements Certain assets and liabilities may be measured at fair value on a nonrecurring basis. These include impaired loans measured at the fair value of the underlying collateral, other real estate owned (“OREO”), and equity investments without readily determinable fair values. Nonrecurring fair value adjustments generally arise from observable price changes for such equity investments, write-downs of individual assets, or the application of lower of cost or fair value accounting. At June 30, 2025, we had $2 million in collateral-dependent loans measured at fair value. During the second quarter of 2025, we recognized $1 million in losses related to fair value changes for these loans. For additional information on assets and liabilities measured at fair value on a nonrecurring basis, see Note 3 of our 2024 Form 10-K.
Fair Value of Certain Financial Instruments The following schedule presents the carrying values and estimated fair values of certain financial instruments:
| June 30, 2025 |  | December 31, 2024 |
(In millions) | Carrying value |  | Fair value |  | Level |  | Carrying value |  | Fair value |  | Level |
Financial assets: |  |  |  |  |  |  |  |  |  |  |  |
Held-to-maturity investment securities | $ | 9,272 |  |  | $ | 9,229 |  |  | 2 |  | $ | 9,669 |  |  | $ | 9,382 |  |  | 2 |
Loans and leases (including loans held for sale), net of allowance | 60,315 |  |  | 58,623 |  |  | 3 |  | 58,788 |  |  | 57,130 |  |  | 3 |
Financial liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Time deposits | 10,133 |  |  | 10,114 |  |  | 2 |  | 11,482 |  |  | 11,468 |  |  | 2 |
Long-term debt | 970 |  |  | 980 |  |  | 2 |  | 950 |  |  | 950 |  |  | 2 |
The preceding schedule excludes certain financial instruments that are recorded at fair value on a recurring basis, as well as certain financial assets and liabilities for which the carrying value approximates fair value. For additional information regarding the financial instruments included within the scope of this disclosure, along with the valuation methodologies and significant assumptions used in estimating their fair values, see Note 3 of our 2024 Form 10-K.

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

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 107 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-107 Reference 3: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 100 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-100 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2E -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2E Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6A -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-6A Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (g) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 940 -SubTopic 820 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478119/940-820-50-1 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration