information about the fair value carrying amount and the contractual principal outstanding of assets and liabilities accounted for under the fair value option at March 31, 2026 and December 31, 2025, and information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for the three months ended March 31, 2026 and 2025.



Fair Value Option Elections

	March 31, 2026						December 31, 2025
(Dollars in millions)	Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal		Fair Value Carrying Amount		Contractual Principal Outstanding		Fair Value Carrying Amount Less Unpaid Principal
Federal funds sold and securities borrowed or purchased under agreements to resell	$	228,013	$	227,926	$	87	$	185,491	$	185,324	$	167
Loans reported as trading account assets (1)	10,954		25,050		(14,096)		10,230		24,475		(14,245)
Trading inventory – other	14,279		n/a		n/a		16,791		n/a		n/a
Consumer and commercial loans	3,757		3,822		(65)		3,498		3,594		(96)
Loans held-for-sale (1)	5,431		5,951		(520)		2,271		2,868		(597)

Other assets	4,175		n/a		n/a		4,054		n/a		n/a
Long-term deposits	1,783		1,873		(90)		1,223		1,385		(162)
Federal funds purchased and securities loaned or sold under agreements to repurchase	227,301		227,323		(22)		223,067		223,087		(20)
Short-term borrowings	11,444		11,450		(6)		8,051		8,046		5
Unfunded loan commitments	68		n/a		n/a		67		n/a		n/a
Accrued expenses and other liabilities	2,981		2,957		24		3,767		3,628		139
Long-term debt	79,274		85,021		(5,747)		72,591		76,534		(3,943)

(1) A significant portion of the loans reported as trading account assets and LHFS are distressed loans that were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding.



Gains (Losses) Related to Assets and Liabilities Accounted for Under the Fair Value Option

	Three Months Ended March 31
	2026						2025
(Dollars in millions)	Market making and similar activities		Other Income		Total		Market making and similar activities		Other Income		Total

Federal funds sold and securities borrowed or purchased under agreements to resell	$	(89)	$	(2)	$	(91)	$	134	$	(2)	$	132
Loans reported as trading account assets	267		1		268		112		—		112
Trading inventory – other (1)	(2,515)		—		(2,515)		1,707		—		1,707
Consumer and commercial loans	137		(16)		121		18		1		19
Loans held-for-sale (2)	—		(32)		(32)		—		60		60




Short-term borrowings	155		—		155		41		—		41
Unfunded loan commitments	—		(1)		(1)		—		(9)		(9)
Accrued expenses and other liabilities	19		(95)		(76)		(7)		—		(7)
Long-term debt (3)	(1,039)		(10)		(1,049)		(255)		(12)		(267)
Other (4)	38		(26)		12		(115)		(10)		(125)
Total	$	(3,027)	$	(181)	$	(3,208)	$	1,635	$	28	$	1,663

(3) The net gains (losses) in market making and similar activities relate to the embedded derivatives in structured liabilities and are typically offset by (losses) gains on derivatives and securities that hedge these liabilities. For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 12 – Accumulated Other Comprehensive Income (Loss). For more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.



Gains (Losses) Related to Borrower-specific Credit Risk for Assets and Liabilities Accounted for Under the Fair Value Option

	Three Months Ended March 31
(Dollars in millions)		2026		2025
Loans reported as trading account assets		$	(86)	$	160
Consumer and commercial loans		(16)		—
Loans held-for-sale		(17)		1
Unfunded loan commitments		(1)		(9)