Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2026

Table 11.1 presents the balances of assets and liabilities recognized at fair value on a recurring basis.

Table 11.1: Fair Value on a Recurring Basis


	March 31, 2026						December 31, 2025
(in millions)	Level 1		Level 2	Level 3	Total		Level 1	Level 2	Level 3	Total
Trading assets:
Debt securities:
Securities of U.S. Treasury and federal agencies	$	58,601	5,110	2	63,713		51,376	3,421	—	54,797
Collateralized loan obligations	—		941	69	1,010		—	859	77	936
Corporate debt securities	—		18,497	22	18,519		—	19,349	15	19,364
Federal agency mortgage-backed securities	—		66,136	—	66,136		—	69,836	—	69,836
Non-agency mortgage-backed securities	—		1,629	—	1,629		—	1,692	1	1,693
Other debt securities	—		8,074	3	8,077		—	7,236	—	7,236
Total trading debt securities	58,601		100,387	96	159,084		51,376	102,393	93	153,862
Equity securities	20,147		5,159	4	25,310		32,322	5,948	4	38,274
Physical commodities inventory	3,634		6,931	—	10,565		3,430	5,677	—	9,107
Trading loans	—		4,302	119	4,421		—	4,813	69	4,882
Derivative assets (gross):
Interest rate contracts	51		22,713	239	23,003		58	21,985	300	22,343
Commodity contracts	400		8,134	256	8,790		38	3,096	113	3,247
Equity contracts	—		19,169	302	19,471		—	20,636	152	20,788
Foreign exchange contracts	—		48,157	5	48,162		—	38,069	2	38,071
Credit contracts	—		114	4	118		—	51	30	81
Total derivative assets (gross)	451		98,287	806	99,544		96	83,837	597	84,530
Total trading assets prior to derivative netting	$	82,833	215,066	1,025	298,924		87,224	202,668	763	290,655
Derivative netting (1)					(77,213)					(62,720)
Total trading assets after derivative netting					$	221,711				227,935
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	$	57,687	—	—	57,687		51,809	—	—	51,809

Securities of U.S. states and political subdivisions	—		9,930	13	9,943		—	10,383	14	10,397
Federal agency mortgage-backed securities	—		144,822	—	144,822		—	140,080	—	140,080
Non-agency mortgage-backed securities	—		1,857	1	1,858		—	2,124	2	2,126
Collateralized loan obligations	—		8,205	—	8,205		—	7,904	—	7,904
Other debt securities	—		147	211	358		—	1,040	217	1,257
Total available-for-sale debt securities	57,687		164,961	225	222,873		51,809	161,531	233	213,573
Loans held for sale (2)	—		826	85	911		—	721	107	828
Mortgage servicing rights (residential) (2)	—		—	5,608	5,608		—	—	5,696	5,696
Equity securities	1,678		21	66	1,765		1,941	—	67	2,008
Other assets	317		—	116	433		311	—	161	472
Total assets measured at fair value on a recurring basis	$	142,515	380,874	7,125	530,514		141,285	364,920	7,027	513,232
Trading liabilities:
Securities sold, not yet purchased	$	(31,115)	(8,044)	(2)	(39,161)		(24,581)	(7,261)	(2)	(31,844)
Derivative liabilities gross:
Interest rate contracts	(27)		(22,104)	(510)	(22,641)		(65)	(22,268)	(442)	(22,775)
Commodity contracts	(465)		(6,134)	(225)	(6,824)		(79)	(4,265)	(61)	(4,405)
Equity contracts	—		(18,079)	(1,135)	(19,214)		—	(21,438)	(1,276)	(22,714)
Foreign exchange contracts	—		(47,126)	(16)	(47,142)		—	(36,975)	(2)	(36,977)
Credit contracts	—		(50)	(15)	(65)		—	(57)	(28)	(85)
Total derivative liabilities (gross)	(492)		(93,493)	(1,901)	(95,886)		(144)	(85,003)	(1,809)	(86,956)






Total trading liabilities prior to derivative netting	(31,607)		(101,537)	(1,903)	(135,047)		(24,725)	(92,264)	(1,811)	(118,800)
Derivative netting (1)					81,400					73,332
Total trading liabilities after derivative netting					$	(53,647)				(45,468)
Other liabilities	—		(317)	(51)	(368)		—	(311)	(46)	(357)

Long-term debt	—		(9,398)	—	(9,398)		—	(7,082)	—	(7,082)
Total liabilities measured at fair value on a recurring basis	$	(31,607)	(111,252)	(1,954)	(144,813)		(24,725)	(99,657)	(1,857)	(126,239)

(1)Represents balance sheet netting of derivative asset and liability balances, related cash collateral, and portfolio level valuation adjustments. See Note 10 (Derivatives) for additional information.

(2)Loans held for sale and mortgage servicing rights are included in other assets on our consolidated balance sheet.

Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis

Table 11.2 presents the changes in Level 3 assets and liabilities recognized at fair value on a recurring basis.

Table 11.2: Changes in Level 3 Fair Value Assets and Liabilities on a Recurring Basis


										Net unrealized gains (losses) related to assets and liabilities held at period end
(in millions)	Balance, beginning of period		Net gains/(losses) (1)	Purchases (2)	Sales	Settlements	Transfers into Level 3 (3)	Transfers out of Level 3 (4)	Balance, end of period		(5)
Quarter ended March 31, 2026






















Trading assets (6):
Debt instruments (7)	$	162	(16)	227	(229)	(6)	84	(7)	215	(15)	(8)
Net derivative assets and liabilities:
Interest rate contracts	(142)		(163)	—	—	5	—	29	(271)	(133)
Equity contracts	(1,124)		182	—	—	207	(235)	137	(833)	347
Other derivative contracts	54		(15)	2	(4)	(9)	(2)	(17)	9	1
Total derivative contracts	(1,212)		4	2	(4)	203	(237)	149	(1,095)	215	(9)
Available-for-sale debt securities	233		(9)	5	—	(4)	—	—	225	(8)	(8)
Mortgage servicing rights (residential) (10)	5,696		(106)	17	1	—	—	—	5,608	56	(11)
Other (6)	222		(55)	9	(30)	(3)	9	(2)	150	(53)	(12)
Quarter ended March 31, 2025
Trading assets (6):
Debt instruments (7)	$	144	(7)	13	(7)	(10)	28	(8)	153	(7)	(8)
Net derivative assets and liabilities:
Interest rate contracts	(3,603)		868	—	—	405	—	—	(2,330)	1,210
Equity contracts	(1,167)		54	—	—	120	(140)	9	(1,124)	110
Other derivative contracts	(33)		83	2	—	(148)	—	—	(96)	(64)
Total derivative contracts	(4,803)		1,005	2	—	377	(140)	9	(3,550)	1,256	(9)
Available-for-sale debt securities	216		1	3	—	(9)	—	—	211	—	(8)
Mortgage servicing rights (residential) (10)	6,844		(257)	25	(76)	—	—	—	6,536	(68)	(11)
Other (6)	278		(76)	5	—	(3)	5	(46)	163	(76)	(12)

(1)All amounts represent net gains (losses) included in net income except for AFS debt securities and other assets and liabilities which also included net gains (losses) in other comprehensive income (OCI). Net gains (losses) included in OCI for AFS debt securities were $(9) million and $0 for first quarter 2026 and 2025, respectively. Net gains (losses) included in OCI for other assets and liabilities were $7 million and $1 million for first quarter 2026 and 2025, respectively.

(2)Includes originations of mortgage servicing rights and loans held for sale.

(3)All assets and liabilities transferred into Level 3 were previously classified within Level 2.

(4)All assets and liabilities transferred out of Level 3 are classified as Level 2.

(5)All amounts represent net unrealized gains (losses) related to assets and liabilities held at period end included in net income except for AFS debt securities and other assets and liabilities which also included net unrealized gains (losses) related to assets and liabilities held at period end in OCI. Net unrealized gains (losses) included in OCI for AFS debt securities were $(8) million and $0 for first quarter 2026 and 2025, respectively. Net unrealized gains (losses) included in OCI for other assets and liabilities were $7 million and $1 million for first quarter 2026 and 2025, respectively.

(6)In fourth quarter 2025, we changed the presentation of certain items on our consolidated balance sheet, including trading assets and liabilities and short-term borrowings, with corresponding changes to our consolidated statement of income. Prior period balances have been revised to conform with the current period presentation. For additional information, see Note 1 (Summary of Significant Accounting Policies).

(7)Includes trading debt securities and trading loans.

(8)Included in net gains from trading and securities on our consolidated statement of income.

(9)Included in mortgage banking income, net gains from trading and securities, and other noninterest income on our consolidated statement of income.

(10)For additional information on the changes in mortgage servicing rights, see Note 6 (Mortgage Banking Activities).

(11)Included in mortgage banking income on our consolidated statement of income.

(12)Included in mortgage banking income and other noninterest income on our consolidated statement of income.

Valuation Techniques – Recurring Basis

Table 11.3 provides quantitative information about the valuation techniques and significant unobservable inputs used in the valuation of our Level 3 assets and liabilities measured at fair value on a recurring basis.

Weighted averages of inputs are calculated using outstanding unpaid principal balances of loans serviced for residential MSRs and notional amounts for derivative instruments.

Table 11.3: Valuation Techniques – Recurring Basis


($ in millions, except cost to service amounts)	Fair Value Level 3		Valuation Technique	Significant Unobservable Input	Range of Inputs					Weighted Average
March 31, 2026










Mortgage servicing rights (residential)	$	5,608	Discounted cash flow	Cost to service per loan (1)	$	62	-	434		94
				Discount rate	9.0		-	13.0	%	9.3
				Prepayment rate (2)	5.7		-	23.8		8.1
Net derivative assets and (liabilities):
Interest rate contracts	(270)		Discounted cash flow	Discount rate	2.8		-	3.7		3.7
	(1)		Discounted cash flow	Default rate	0.4		-	12.0		2.5
				Loss severity	50.0		-	50.0		50.0



Equity contracts	(397)		Discounted cash flow	Conversion factor	(0.4)		-	0.0		(0.2)
				Weighted average life	0.8		-	3.8	yrs	1.4
	(436)		Option model	Correlation factor	(66.5)		-	98.0	%	66.0
				Volatility factor	13.8		-	115.9		48.1


December 31, 2025









Mortgage servicing rights (residential)	$	5,696	Discounted cash flow	Cost to service per loan (1)	$	61	-	446		96
				Discount rate	8.8		-	12.5	%	9.1
				Prepayment rate (2)	5.7		-	23.0		8.0
Net derivative assets and (liabilities):
Interest rate contracts	(139)		Discounted cash flow	Discount rate	2.5		-	3.5		3.4
	(3)		Discounted cash flow	Default rate	0.4		-	12.0		2.4
				Loss severity	50.0		-	50.0		50.0



Equity contracts	(579)		Discounted cash flow	Conversion factor	(0.3)		-	0.0		(0.2)
				Weighted average life	1.0		-	4.0	yrs	1.7
	(545)		Option model	Correlation factor	(20.0)		-	98.5	%	77.1
				Volatility factor	8.0		-	105.0		42.7

(1)The high end of the range of inputs is for servicing modified loans. For non-modified loans, the range is $62 - $108 at March 31, 2026, and $61 - $112 at December 31, 2025.

(2)Includes a blend of prepayment speeds and expected defaults. Prepayment speeds are influenced by mortgage interest rates as well as our estimation of drivers of borrower behavior.

Fair Value on a Nonrecurring Basis

Table 11.4 provides the fair value hierarchy and fair value at the date of the nonrecurring fair value adjustment for all assets that

were still held as of March 31, 2026, and December 31, 2025, and for which a nonrecurring fair value adjustment was recognized during the quarter ended March 31, 2026, and the year ended December 31, 2025.

Table 11.4: Fair Value on a Nonrecurring Basis


	March 31, 2026				December 31, 2025
(in millions)	Level 2		Level 3	Total	Level 2	Level 3	Total
Loans held for sale (1)	$	1,086	13	1,099	1,846	240	2,086
Loans:
Commercial	420		—	420	1,161	—	1,161
Consumer	33		—	33	96	—	96
Total loans	453		—	453	1,257	—	1,257

Equity securities	499		911	1,410	1,001	1,791	2,792
Other assets	39		—	39	89	9	98
Total assets at fair value on a nonrecurring basis	$	2,077	924	3,001	4,193	2,040	6,233

(1)Consists of commercial mortgages and residential mortgage – first lien loans.

Gains (Losses) on Assets with Nonrecurring Fair Value Adjustments

Table 11.5 presents the gains (losses) on all assets held at the end of the reporting periods presented for which a nonrecurring

fair value adjustment was recognized in earnings during the respective periods.

Table 11.5: Gains (Losses) on Assets with Nonrecurring Fair Value Adjustments


	Quarter ended March 31,
(in millions)	2026		2025
Loans held for sale	$	(9)	12
Loans:
Commercial	(337)		(143)
Consumer	(111)		(120)
Total loans	(448)		(263)

Equity securities (1)	56		(177)

Other assets (2)(3)	(10)		(19)
Total	$	(411)	(447)

(1)Includes impairment of equity securities and observable price changes related to equity securities accounted for under the measurement alternative.

(2)Includes impairment of operating lease ROU assets, valuation losses on foreclosed real estate, and other collateral owned.

(3)In fourth quarter 2025, we changed the presentation of certain items on our consolidated balance sheet, including trading assets and liabilities, with corresponding changes to our consolidated statement of income. Prior period balances have been revised to conform with the current period presentation. For additional information, see Note 1 (Summary of Significant Accounting Policies).

Valuation Techniques – Nonrecurring Basis

Table 11.6 provides quantitative information about the valuation techniques and significant unobservable inputs used in the valuation of our Level 3 assets that are measured at fair value on

a nonrecurring basis. Weighted averages of inputs for equity securities are calculated using carrying value prior to the nonrecurring fair value measurement.

Table 11.6: Valuation Techniques – Nonrecurring Basis

($ in millions)

Fair Value
Level 3

Valuation
Technique (1)

Significant
Unobservable Input (1)

Range of Inputs
Positive (Negative)

Weighted
Average

March 31, 2026

Equity securities

911

Market comparable pricing

Multiples

1.1x

7.4x

1.5x

December 31, 2025

Equity securities

393

Market comparable pricing

Comparability adjustment

(100.0)

(4.9)

(49.1)

1,398

Market comparable pricing

Multiples

1.1x

44.1x

12.3x

(1)See Note 14 (Fair Value Measurements) in our 2025 Form 10-K for additional information on the valuation technique(s) and significant unobservable inputs used in the valuation of Level 3 assets.

Fair Value Option

Table 11.7 reflects differences between the fair value carrying amount of the assets and liabilities for which we have elected the fair value option and the contractual aggregate unpaid principal amount at maturity.

Table 11.7: Fair Value Option


	March 31, 2026				December 31, 2025
(in millions)	Fair value carrying amount		Aggregate unpaid principal	Fair value carrying amount less aggregate unpaid principal	Fair value carrying amount	Aggregate unpaid principal	Fair value carrying amount less aggregate unpaid principal
Trading assets (1)	$	4,421	4,800	(379)	4,882	5,180	(298)
Other assets (1)	911		929	(18)	828	846	(18)

Other liabilities	(317)		—	(317)	(311)	—	(311)
Long-term debt (2)	(9,398)		(10,156)	758	(7,082)	(7,647)	565

(1)Trading assets consists of trading loans and other assets consists of loans held for sale accounted for under the fair value option. Nonaccrual loans and loans 90 days or more past due and still accruing were insignificant at March 31, 2026, and December 31, 2025.

(2)Includes zero coupon notes for which the aggregate unpaid principal amount reflects the contractual principal due at maturity.

Gains (Losses) on Changes in Fair Value Included in Earnings

Table 11.8 reflects amounts included in earnings related to initial measurement and subsequent changes in fair value, by income statement line item, for assets and liabilities for which the fair

value option was elected. Amounts recognized in net interest income are excluded from the table below.

Table 11.8: Gains (Losses) on Changes in Fair Value Included in Earnings


	Quarter ended March 31,
	2026				2025
(in millions)	Mortgage banking noninterest income		Net gains from trading and securities (1)	Other noninterest income	Mortgage banking noninterest income	Net gains from trading and securities	Other noninterest income
Quarter ended March 31,





Trading assets (1)	$	—	(53)	—	—	(3)	—
Other assets (1)	—		—	—	21	—	—

Other liabilities	—		—	(6)	—	—	3
Long-term debt	—		99	—	—	(26)	—

(1)In fourth quarter 2025, we changed the presentation of certain items on our consolidated balance sheet, including trading assets and liabilities, with corresponding changes to our consolidated statement of income. Prior period balances have been revised to conform with the current period presentation. For additional information, see Note 1 (Summary of Significant Accounting Policies).

Fair Value Estimates for Financial Instruments

Table 11.9 presents a summary of fair value estimates for financial instruments that are not carried at fair value on a recurring basis. Some financial instruments are excluded from the scope of this table, such as certain insurance contracts, certain nonmarketable equity securities, and leases. This table also excludes assets and liabilities that are not financial instruments such as the value of the long-term relationships with our deposit, credit card and trust customers, MSRs, premises and equipment, goodwill and deferred taxes.

Loan commitments, standby letters of credit and commercial and similar letters of credit are not included in Table 11.9. A reasonable estimate of the fair value of these instruments is the carrying value of deferred fees plus the allowance for unfunded credit commitments, which totaled $613 million and $639 million at March 31, 2026 and December 31, 2025, respectively.

The total of the fair value calculations presented does not represent, and should not be construed to represent, the underlying fair value of the Company.

Table 11.9: Fair Value Estimates for Financial Instruments


			Estimated fair value
(in millions)	Carrying amount		Level 1	Level 2	Level 3	Total
March 31, 2026
Financial assets
Cash and due from banks (1)	$	33,543	33,543	—	—	33,543
Interest-earning deposits with banks (1)	141,241		140,909	332	—	141,241
Federal funds sold and securities borrowed or purchased under resale agreements (1)	215,599		—	215,599	—	215,599
Held-to-maturity debt securities	204,080		2,032	165,988	3,278	171,298
Loans held for sale (2)	3,740		—	3,565	190	3,755
Loans, net (2)	987,622		—	874	960,875	961,749
Equity securities (cost method)	4,955		—	—	5,061	5,061
Total financial assets	$	1,590,780	176,484	386,358	969,404	1,532,246
Financial liabilities
Deposits (3)	$	189,154	—	100,924	88,102	189,026
Federal funds purchased and securities loaned or sold under repurchase agreements (1)	234,371		—	234,371	—	234,371
Short-term borrowings	32,282		—	32,286	—	32,286
Long-term debt (4)	174,532		—	176,898	1,420	178,318
Total financial liabilities	$	630,339	—	544,479	89,522	634,001
December 31, 2025
Financial assets
Cash and due from banks (1)	$	39,182	39,182	—	—	39,182
Interest-earning deposits with banks (1)	135,028		134,695	333	—	135,028
Federal funds sold and securities borrowed or purchased under resale agreements (1)	193,929		—	193,929	—	193,929
Held-to-maturity debt securities	208,023		2,051	170,490	3,256	175,797
Loans held for sale	2,618		—	2,418	263	2,681
Loans, net (2)	957,037		—	820	931,108	931,928
Equity securities (cost method)	4,323		—	—	4,415	4,415
Total financial assets	$	1,540,140	175,928	367,990	939,042	1,482,960
Financial liabilities
Deposits (3)	$	166,686	—	75,728	90,379	166,107
Federal funds purchased and securities loaned or sold under repurchase agreements (1)	232,687		—	232,687	—	232,687
Short-term borrowings	18,323		—	18,331	—	18,331
Long-term debt (4)	167,618		—	172,563	1,390	173,953
Total financial liabilities	$	585,314	—	499,309	91,769	591,078

(1)Amounts consist of financial instruments for which carrying value approximates fair value.

(2)Excludes lease financing in loans and loans held for sale, net of allowance for credit losses, of $15.3 billion and $16.4 billion at March 31, 2026 and December 31, 2025, respectively.

(3)Excludes deposit liabilities with no defined or contractual maturity of $1.3 trillion at both March 31, 2026 and December 31, 2025.

(4)Excludes obligations under finance leases of $11 million and $12 million at March 31, 2026 and December 31, 2025, respectively.