v3.25.4
FAIR VALUE MEASUREMENT
 12 Months Ended
Dec. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENT FAIR VALUE MEASUREMENT
ASC 820-10, Fair Value Measurement, defines fair value, establishes a consistent framework for measuring fair value and requires disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, and therefore represents an exit price. Among other things, the standard requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
Under ASC 820-10, the probability of counterparty default is factored into the valuation of derivatives and other positions, and the impact of Citigroup’s own credit risk is factored into the valuation of derivatives and other liabilities that are measured at fair value. For more information regarding the fair value hierarchy and how the Company measures fair value, see “Fair Value” in Note 1.
The following section describes the valuation methodologies used by the Company to measure various financial instruments. Where appropriate, the description includes details of the valuation models, the key inputs to those models and any significant assumptions.

Market Valuation Adjustments
The unit of account for a financial instrument is generally the individual financial instrument. The Company applies market valuation adjustments that are consistent with the unit of account, which do not include adjustments due to the size of the Company’s position, except where ASC 820-10 permits an exception, to measure the fair value of a portfolio of financial assets and financial liabilities on the basis of the net open risk position when certain criteria are met.
Valuation adjustments are applied to items classified as Level 2 or Level 3 in the fair value hierarchy to ensure that the fair value reflects the price at which the net open risk position could be exited. These valuation adjustments are based on the bid/offer spread for an instrument in the market. When Citi has elected to measure certain portfolios of financial instruments, such as derivatives, on the basis of the net open risk position, the valuation adjustment may take into account the size of the position.
Credit valuation adjustments (CVA) and funding valuation adjustments (FVA) are applied to certain over-the-counter (OTC) derivative instruments where adjustments to reflect counterparty credit risk, own credit risk and term funding risk are required to estimate fair value (e.g., uncollateralized interest rate swaps).
The CVA represents a portfolio-level adjustment to reflect the risk premium associated with the counterparty’s (assets) or Citi’s (liabilities) non-performance risk. The FVA represents a market funding risk premium inherent in the uncollateralized portion of a derivative portfolio and in certain collateralized derivative portfolios that do not include standard credit support annexes (CSAs), such as where the CSA does not permit the reuse of collateral received.
Citi’s CVA and FVA methodologies primarily consist of two steps:

•First, the exposure profile for each counterparty is determined using the terms of all individual derivative positions, and a Monte Carlo simulation or other quantitative analysis is used to generate a series of expected cash flows at future points in time. The calculation of this exposure profile considers the effect of credit risk mitigants and sources of funding, including pledged cash or other collateral and any legal right of offset that exists with a counterparty through arrangements such as netting agreements.
•Second, for CVA, market-based views of default probabilities and recovery estimates are applied to the expected future cash flows determined in step one. Citi’s own credit CVA is determined using Citi-specific CDS spreads for the relevant tenor. Proxy approaches are applied where counterparty-specific CDS data are not available. For FVA, a term structure of spreads is applied to the expected funding exposures (e.g., the market liquidity spread used to represent the term funding premium associated with certain OTC derivatives).

The CVA and FVA are designed to incorporate a market view of the credit and funding risk, respectively, inherent in the derivative portfolio. The table below summarizes the CVA and FVA applied to the fair value of derivative instruments (recorded in Trading account assets and Trading account liabilities on the Consolidated Balance Sheet) at December 31, 2025 and 2024:

 Credit and funding
valuation adjustments
contra-liability (contra-asset)
In millions of dollarsDecember 31,
2025		December 31,
2024
Counterparty CVA$(561)$(561)
Asset FVA(573)(539)
Citigroup (own credit) CVA331 346 
Liability FVA185 209 
Total CVA and FVA—derivative instruments$(618)$(545)


The table below summarizes pretax gains (losses) related to changes in CVA and FVA on derivative instruments, net of hedges (recorded in Principal transactions revenue in the Consolidated Statement of Income), and changes in debt valuation adjustments (DVA) on Citi’s own fair value option (FVO) liabilities (recorded in Other comprehensive income in the Consolidated Statement of Comprehensive Income) for the years indicated:

 Credit/funding/debt valuation
adjustments gain (loss)
In millions of dollars202520242023
Counterparty CVA$(90)$(63)$(31)
Asset FVA22 68 64 
Own credit CVA(18)(56)(212)
Liability FVA14 (46)(23)
Total CVA and FVA—derivative instruments$(72)$(97)$(202)
DVA related to own FVO liabilities(1)
$(1,285)$(573)$(2,078)
Total CVA, DVA and FVA$(1,357)$(670)$(2,280)

(1)    See Note 21.

Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase
Fair value is determined using a discounted cash flow technique. Cash flows are estimated, taking into account any embedded derivatives or other features. These cash flows are discounted using interest rates appropriate to the maturity of the instrument as well as the nature of the underlying collateral. Generally, when such instruments are recorded at fair value, they are classified within Level 2 of the fair value hierarchy, as the inputs used in the valuation are readily observable. However, certain long-dated positions may be classified as Level 3.

Trading Account Assets and Liabilities—Trading Securities and Trading Loans
When quoted market prices in active markets are available, the Company uses those prices to determine the fair value of trading securities, and such instruments are classified within Level 1 of the fair value hierarchy.
For securities and loans that do not have quoted prices in an active market, the Company determines fair value by maximizing the use of observable market information. The valuation process places priority on observable market transactions in the same instrument or observable transactions in instruments with similar risk characteristics such as comparable credit, structural features, seniority or rating. In some cases, alternative valuation techniques are applied, such as discounted cash flow analysis, or net asset value when observable inputs are limited. These instruments are classified as either Level 2 or 3 depending on the observability of the significant inputs to the valuation.

Trading Account Assets and Liabilities—Derivatives
Derivatives with a quoted price in an active market, such as certain exchange traded derivatives, are classified as Level 1.
Derivatives without a quoted price in an active market and derivatives executed over the counter are valued using internal valuation techniques. These derivative instruments are classified as either Level 2 or Level 3 depending on the observability of the significant inputs to the valuation.
The valuation techniques depend on the type of derivative and the nature of the underlying instrument. The principal techniques used to value these instruments are discounted cash flows and internal models, such as derivative pricing models (e.g., Black-Scholes and Monte Carlo simulations).
The key inputs depend upon the type of derivative and the nature of the underlying instrument and include yield curves, foreign exchange rates, volatilities and correlation.

Investments
The investments category includes available-for-sale debt and marketable equity securities whose fair values are generally determined by utilizing similar procedures described for trading securities above or, in some cases, using vendor pricing as the primary source.
Also included in investments are nonpublic investments in private equity and real estate entities. Determining the fair value of nonpublic securities involves a significant degree of management judgment, as no quoted prices exist and such securities are not generally traded. In addition, there may be transfer restrictions on private equity securities. The Company’s process for determining the fair value of such securities utilizes commonly accepted valuation techniques, including guideline public company analysis and comparable transactions. In determining the fair value of nonpublic securities, the Company also considers events such as a proposed sale of the investee company, initial public offerings, equity issuances or other observable transactions. Private equity securities are generally classified within Level 3 of the fair value hierarchy.

Mortgage Servicing Rights
The fair value of the mortgage servicing rights (MSRs), included in Intangible assets, is primarily affected by changes in prepayments of mortgages that result from shifts in mortgage interest rates. Specifically, higher interest rates tend to lead to declining prepayments, which causes the fair value of the MSRs to increase. See Note 23 for additional information on Citi’s MSRs.

Short-Term Borrowings and Long-Term Debt
Where fair value accounting has been elected, the fair value of non-structured liabilities is determined by utilizing internal models using the appropriate discount rate for the applicable maturity. Such instruments are classified within Level 2 of the fair value hierarchy when all significant inputs are readily observable.
The Company determines the fair value of hybrid financial instruments, including structured liabilities, using the appropriate derivative valuation methodology (described above in “Trading Account Assets and Liabilities—Derivatives”) given the nature of the embedded risk profile. Such instruments are classified within Level 2 or Level 3 depending on the observability of significant inputs to the valuation.
Items Measured at Fair Value on a Recurring Basis
The following tables present for each of the fair value hierarchy levels the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2025 and 2024. The Company may hedge positions that have
been classified in the Level 3 category with other financial instruments (hedging instruments) that may be classified as Level 3, but also with financial instruments classified as Level 1 or Level 2. These hedges are presented gross in the following tables:

Fair Value Levels

In millions of dollars at December 31, 2025Level 1Level 2Level 3Gross
inventory
Netting(1)
Net
balance
Assets      
Securities borrowed and purchased under agreements to resell$485 $590,615 $49 $591,149 $(385,039)$206,110 
Trading non-derivative assets
Trading mortgage-backed securities
U.S. government-sponsored agency guaranteed— 92,074 382 92,456 — 92,456 
Residential— 798 99 897 — 897 
Commercial— 597 55 652 — 652 
Total trading mortgage-backed securities$— $93,469 $536 $94,005 $— $94,005 
U.S. Treasury and federal agency securities$140,671 $3,051 $— $143,722 $— $143,722 
State and municipal— 171 1 172 — 172 
Foreign government65,966 57,390 35 123,391 — 123,391 
Corporate1,161 20,412 270 21,843 — 21,843 
Equity securities61,986 8,110 287 70,383 — 70,383 
Asset-backed securities— 2,308 225 2,533 — 2,533 
Other trading assets— 25,243 413 25,656 — 25,656 
Total trading non-derivative assets$269,784 $210,154 $1,767 $481,705 $— $481,705 
Trading derivatives
Interest rate contracts$9 $224,077 $1,825 $225,911 
Foreign exchange contracts— 161,072 612 161,684 
Equity contracts31 67,453 1,823 69,307 
Commodity contracts— 21,675 1,013 22,688 
Credit derivatives— 8,580 1,143 9,723 
Total trading derivatives—before netting and collateral$40 $482,857 $6,416 $489,313 
Netting agreements$(406,408)
Netting of cash collateral received(27,471)
Total trading derivatives—after netting and collateral$40 $482,857 $6,416 $489,313 $(433,879)$55,434 
Investments
Mortgage-backed securities
U.S. government-sponsored agency guaranteed$— $36,725 $31 $36,756 $— $36,756 
Other— 976 — 976 — 976 
Total investment mortgage-backed securities$— $37,701 $31 $37,732 $— $37,732 
U.S. Treasury and federal agency securities$35,465 $— $— $35,465 $— $35,465 
State and municipal— 1,033 504 1,537 — 1,537 
Foreign government80,048 83,034 25 163,107 — 163,107 
Corporate3,193 1,183 315 4,691 — 4,691 
Marketable equity securities342 2 131 475 — 475 
Asset-backed securities— 1,072 1 1,073 — 1,073 
Other debt securities64 3,051 — 3,115 — 3,115 
Non-marketable equity securities(2)
— — 409 409 — 409 
Total investments$119,112 $127,076 $1,416 $247,604 $— $247,604 

Table continues on the next page.
In millions of dollars at December 31, 2025Level 1Level 2Level 3Gross
inventory
Netting(1)
Net
balance
Loans$— $6,733 $122 $6,855 $— $6,855 
Mortgage servicing rights— — 759 759 — 759 
Other financial assets$6,130 $10,551 $— $16,681 $— $16,681 
Total assets$395,551 $1,427,986 $10,529 $1,834,066 $(818,918)$1,015,148 
Total as a percentage of gross assets(3)
21.5 %77.9 %0.6 %
Liabilities
Deposits$— $3,983 $239 $4,222 $— $4,222 
Securities loaned and sold under agreements to repurchase— 426,084 952 427,036 (227,614)199,422 
Trading account liabilities
Securities sold, not yet purchased89,352 15,177 45 104,574 — 104,574 
Other trading liabilities— 10 — 10 — 10 
Total trading account liabilities$89,352 $15,187 $45 $104,584 $— $104,584 
Trading derivatives
Interest rate contracts$5 $215,562 $1,805 $217,372 
Foreign exchange contracts— 152,202 662 152,864 
Equity contracts49 74,365 4,787 79,201 
Commodity contracts— 23,713 869 24,582 
Credit derivatives— 9,670 1,562 11,232 
Total trading derivatives—before netting and collateral$54 $475,512 $9,685 $485,251 
Netting agreements$(406,408)
Netting of cash collateral paid(20,629)
Total trading derivatives—after netting and collateral$54 $475,512 $9,685 $485,251 $(427,037)$58,214 
Short-term borrowings$— $21,275 $292 $21,567 $— $21,567 
Long-term debt— 106,767 23,959 130,726 — 130,726 
Other financial liabilities$5,437 $55 $— $5,492 $— $5,492 
Total liabilities$94,843 $1,048,863 $35,172 $1,178,878 $(654,651)$524,227 
Total as a percentage of gross liabilities(3)
8.0 %89.0 %3.0 %

(1)Represents netting of (i) the amounts due under securities purchased under agreements to resell and the amounts owed under securities sold under agreements to repurchase and (ii) derivative exposures covered by a qualifying master netting agreement and cash collateral offsetting.
(2)Amounts exclude $37 million of investments measured at net asset value (NAV) in accordance with ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).
(3)Because the amount of the cash collateral paid/received has not been allocated to the Level 1, 2 and 3 subtotals, these percentages are calculated based on total assets and liabilities measured at fair value on a recurring basis, excluding the cash collateral paid/received on derivatives.
Fair Value Levels

In millions of dollars at December 31, 2024Level 1Level 2Level 3Gross
inventory
Netting(1)
Net
balance
Assets      
Securities borrowed and purchased under agreements to resell$— $462,542 $128 $462,670 $(321,815)$140,855 
Trading non-derivative assets
Trading mortgage-backed securities
U.S. government-sponsored agency guaranteed— 63,365 301 63,666 — 63,666 
Residential— 528 67 595 — 595 
Commercial— 631 36 667 — 667 
Total trading mortgage-backed securities$— $64,524 $404 $64,928 $— $64,928 
U.S. Treasury and federal agency securities$142,837 $6,517 $1 $149,355 $— $149,355 
State and municipal— 168 11 179 — 179 
Foreign government35,805 39,035 15 74,855 — 74,855 
Corporate1,197 13,474 269 14,940 — 14,940 
Equity securities41,163 7,479 166 48,808 — 48,808 
Asset-backed securities— 2,131 178 2,309 — 2,309 
Other trading assets— 26,441 333 26,774 — 26,774 
Total trading non-derivative assets$221,002 $159,769 $1,377 $382,148 $— $382,148 
Trading derivatives
Interest rate contracts$17 $128,562 $1,699 $130,278 
Foreign exchange contracts— 215,330 715 216,045 
Equity contracts44 53,734 1,366 55,144 
Commodity contracts— 11,546 1,074 12,620 
Credit derivatives— 7,993 722 8,715 
Total trading derivatives—before netting and collateral$61 $417,165 $5,576 $422,802 
Netting agreements$(334,900)
Netting of cash collateral received(27,303)
Total trading derivatives—after netting and collateral$61 $417,165 $5,576 $422,802 $(362,203)$60,599 
Investments
Mortgage-backed securities
U.S. government-sponsored agency guaranteed$— $29,270 $36 $29,306 $— $29,306 
Other— 597 28 625 — 625 
Total investment mortgage-backed securities$— $29,867 $64 $29,931 $— $29,931 
U.S. Treasury and federal agency securities$51,501 $878 $— $52,379 $— $52,379 
State and municipal— 1,230 428 1,658 — 1,658 
Foreign government62,106 71,241 12 133,359 — 133,359 
Corporate3,163 1,505 146 4,814 — 4,814 
Marketable equity securities130 7 14 151 — 151 
Asset-backed securities— 846 2 848 — 848 
Other debt securities— 3,881 6 3,887 — 3,887 
Non-marketable equity securities(2)
— — 404 404 — 404 
Total investments$116,900 $109,455 $1,076 $227,431 $— $227,431 

Table continues on the next page.
In millions of dollars at December 31, 2024Level 1Level 2Level 3Gross
inventory
Netting(1)
Net
balance
Loans$— $7,778 $262$8,040 $— $8,040 
Mortgage servicing rights— — 760 760 — 760 
Other financial assets$5,373 $9,424 $15 $14,812 $— $14,812 
Total assets$343,336 $1,166,133 $9,194 $1,518,663 $(684,018)$834,645 
Total as a percentage of gross assets(3)
22.6 %76.8 %0.6 %
Liabilities
Deposits$— $3,569 $39 $3,608 $— $3,608 
Securities loaned and sold under agreements to repurchase— 260,286 390 260,676 (211,522)49,154 
Trading account liabilities
Securities sold, not yet purchased72,324 13,184 28 85,536 — 85,536 
Other trading liabilities— 12 — 12 — 12 
Total trading account liabilities$72,324 $13,196 $28 $85,548 $— $85,548 
Trading derivatives
Interest rate contracts$6 $120,097 $2,029 $122,132 
Foreign exchange contracts— 205,487 530 206,017 
Equity contracts40 58,642 3,054 61,736 
Commodity contracts— 13,960 670 14,630 
Credit derivatives— 6,635 618 7,253 
Total trading derivatives—before netting and collateral$46 $404,821 $6,901 $411,768 
Netting agreements$(334,900)
Netting of cash collateral paid(28,570)
Total trading derivatives—after netting and collateral$46 $404,821 $6,901 $411,768 $(363,470)$48,298 
Short-term borrowings$— $12,187 $297 $12,484 $— $12,484 
Long-term debt— 91,619 21,100 112,719 — 112,719 
Other financial liabilities$4,478 $744 $— $5,222 $— $5,222 
Total liabilities$76,848 $786,422 $28,755 $892,025 $(574,992)$317,033 
Total as a percentage of gross liabilities(3)
8.6 %88.2 %3.2 %

(1)Represents netting of (i) the amounts due under securities purchased under agreements to resell and the amounts owed under securities sold under agreements to repurchase and (ii) derivative exposures covered by a qualifying master netting agreement and cash collateral offsetting.
(2)Amounts exclude $23 million of investments measured at NAV in accordance with ASU 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent).
(3)Because the amount of the cash collateral paid/received has not been allocated to the Level 1, 2 and 3 subtotals, these percentages are calculated based on total assets and liabilities measured at fair value on a recurring basis, excluding the cash collateral paid/received on derivatives.
Changes in Level 3 Fair Value Category
The following tables present the changes in the Level 3 fair value category for the years ended December 31, 2025 and 2024. The gains and losses presented below include changes in the fair value related to both observable and unobservable inputs.
The Company often hedges positions with offsetting positions that are classified in a different level. For example,
the gains and losses for assets and liabilities in the Level 3 category presented in the tables below do not reflect the effect of offsetting losses and gains on hedging instruments that may be classified in the Level 1 and Level 2 categories. In addition, the Company hedges items classified in the Level 3 category with instruments also classified in Level 3 of the fair value hierarchy. The hedged items and related hedges are presented gross in the following tables:

Level 3 Fair Value Rollforward

  
Net realized/unrealized
gains (losses) included in(1)
Transfers     
Unrealized
gains (losses)
still held(3)
In millions of dollarsDec. 31, 2024Principal
transactions
Other(1)(2)
into
Level 3		out of
Level 3		PurchasesIssuancesSalesSettlementsDec. 31, 2025
Assets
Securities borrowed and purchased under agreements to resell$128 $46 $— $— $(181)$637 $— $— $(581)$49 $1 
Trading non-derivative assets
Trading mortgage-backed securities
U.S. government-sponsored agency guaranteed301 24 — 347 (426)625 — (489)— 382 (13)
Residential67 (3)— 66 (139)232 — (124)— 99 (4)
Commercial36 (7)— 62 (81)68 — (23)— 55 (2)
Total trading mortgage-backed securities$404 $14 $— $475 $(646)$925 $— $(636)$— $536 $(19)
U.S. Treasury and federal agency securities$1 $— $— $— $(1)$— $— $— $— $— $— 
State and municipal11 1 — — (11)— — — — 1 — 
Foreign government15 5 — 62 (36)19 — (30)— 35 3 
Corporate269 (15)— 105 (184)368 — (273)— 270 (55)
Marketable equity securities166 26 — 74 (53)260 — (186)— 287 12 
Asset-backed securities178 (42)— 74 (139)373 — (219)— 225 (18)
Other trading assets333 93 — 69 (56)468 42 (503)(33)413 10 
Total trading non-derivative assets$1,377 $82 $— $859 $(1,126)$2,413 $42 $(1,847)$(33)$1,767 $(67)
Trading derivatives, net(4)
Interest rate contracts$(330)$306 $— $108 $31 $(150)$10 $(91)$136 $20 $362 
Foreign exchange contracts185 12 — 68 (152)32 — (190)(5)(50)36 
Equity contracts(1,688)(149)— 73 777 (2,780)— (66)869 (2,964)(1,530)
Commodity contracts404 418 — (250)188 (308)— (10)(298)144 219 
Credit derivatives104 (107)— 4 157 (776)— — 199 (419)(114)
Total trading derivatives, net(4)
$(1,325)$480 $— $3 $1,001 $(3,982)$10 $(357)$901 $(3,269)$(1,027)

Table continues on the next page.
  
Net realized/unrealized
gains (losses) included in(1)
Transfers     
Unrealized
gains (losses)
still held(3)
In millions of dollarsDec. 31, 2024Principal
transactions
Other(1)(2)
into
Level 3		out of
Level 3		PurchasesIssuancesSalesSettlementsDec. 31, 2025
Investments
Mortgage-backed securities
U.S. government-sponsored agency guaranteed$36 $— $(1)$10 $(15)$4 $— $(3)$— $31 $(3)
Other28 — — — (15)— — (13)— — — 
Total investment mortgage-backed securities$64 $— $(1)$10 $(30)$4 $— $(16)$— $31 $(3)
U.S. Treasury and federal agency securities$— $— $— $— $— $— $— $— $— $— $— 
State and municipal428 — 35 91 (16)261 — (295)— 504 10 
Foreign government12 — (5)20 (2)— — — — 25 1 
Corporate146 — (9)262 (112)279 — (251)— 315 (3)
Marketable equity securities14 — (21)— — 218 — (80)— 131 — 
Asset-backed securities2 — — — (2)1 — — — 1 — 
Other debt securities6 — — — — 1 — (7)— — — 
Non-marketable equity securities404 — (20)— (8)53 — (20)— 409 (2)
Total investments$1,076 $— $(21)$383 $(170)$817 $— $(669)$— $1,416 $3 
Loans$262 $— $109 $7 $(171)$— $189 $— $(274)$122 $34 
Mortgage servicing rights760 — (21)— — — 103 — (83)759 (22)
Other financial assets15 — 1 2 — 62 30 (64)(46)— — 
Liabilities
Deposits$39 $— $(34)$10 $— $— $259 $— $(103)$239 $(141)
Securities loaned and sold under agreements to repurchase390 (11)— — (100)1,486 — — (835)952 — 
Trading account liabilities
Securities sold, not yet purchased28 19 — 27 (39)116 — — (68)45 45 
Other trading liabilities— 1 — — (2)25 — — (22)— — 
Short-term borrowings297 51 — 78 (144)13 928 — (829)292 (92)
Long-term debt21,100 (1,156)— 3,120 (4,158)— 5,064 — (2,323)23,959 (866)
Other financial liabilities measured on a recurring basis— — — 15 (1)50 1 — (65)— — 

(1)Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets and as (increase) decrease to Level 3 liabilities. Changes in fair value of available-for-sale debt securities are recorded in AOCI, unless related to credit impairment, while gains and losses from sales are recorded in Realized gains (losses) from sales of investments in the Consolidated Statement of Income.
(2)Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3)Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and DVA on fair value option liabilities), attributable to the change in fair value relating to assets and liabilities classified as Level 3 that are still held at December 31, 2025.
(4)Total Level 3 trading derivative assets and liabilities have been netted in these tables for presentation purposes only.
  
Net realized/unrealized
gains (losses) included in(1)
Transfers     
Unrealized
gains
(losses)
still held(3)
In millions of dollarsDec. 31, 2023Principal
transactions
Other(1)(2)
into
Level 3		out of
Level 3		PurchasesIssuancesSalesSettlementsDec. 31, 2024
Assets           
Securities borrowed and purchased under agreements to resell$139 $(4)$— $— $— $111 $— $— $(118)$128 $(4)
Trading non-derivative assets           
Trading mortgage-backed securities           
U.S. government-sponsored agency guaranteed581 (50)— 456 (856)667 — (497)— 301 (18)
Residential116 (8)— 84 (79)159 — (205)— 67 (1)
Commercial202 17 — 56 (189)162 — (212)— 36 (4)
Total trading mortgage-backed securities$899 $(41)$— $596 $(1,124)$988 $— $(914)$— $404 $(23)
U.S. Treasury and federal agency securities$7 $4 $— $1 $(1)$— $— $— $(10)$1 $— 
State and municipal3 2 — 20 (10)— — (4)— 11 1 
Foreign government54 (9)— 21 (49)192 — (194)— 15 — 
Corporate500 155 — 188 (484)587 — (669)(8)269 97 
Marketable equity securities292 5 — 239 (75)169 — (464)— 166 (8)
Asset-backed securities531 (53)— 54 (210)273 — (417)— 178 (21)
Other trading assets833 174 — 200 (440)377 34 (829)(16)333 42 
Total trading non-derivative assets$3,119 $237 $— $1,319 $(2,393)$2,586 $34 $(3,491)$(34)$1,377 $88 
Trading derivatives, net(4)
Interest rate contracts$(1,085)$(875)$— $275 $462 $94 $19 $(35)$815 $(330)$(381)
Foreign exchange contracts295 600 — 100 (485)13 — (197)(141)185 (474)
Equity contracts(1,634)68 — (135)1,022 (954)— (77)22 (1,688)(459)
Commodity contracts279 460 — 46 (210)(104)— (66)(1)404 512 
Credit derivatives(73)155 — (20)29 (4)— — 17 104 81 
Total trading derivatives, net(4)
$(2,218)$408 $— $266 $818 $(955)$19 $(375)$712 $(1,325)$(721)
Investments
Mortgage-backed securities
U.S. government-sponsored agency guaranteed$75 $— $4 $3 $— $7 $— $(53)$— $36 $5 
Other116 — (3)5 (90)— — — — 28 (3)
Total investment mortgage-backed securities$191 $— $1 $8 $(90)$7 $— $(53)$— $64 $2 
U.S. Treasury and federal agency securities$— $— $— $— $— $— $— $— $— $— $— 
State and municipal542 — (31)— (8)14 — (89)— 428 (14)
Foreign government194 — (16)8 (174)36 — (36)— 12 (3)
Corporate362 — (24)78 (348)183 — (105)— 146 (7)
Marketable equity securities27 — (13)— — — — — — 14 — 
Asset-backed securities— — — 2 — 3 — (3)— 2 — 
Other debt securities— — — — — 6 — — — 6 — 
Non-marketable equity securities483 — (3)— — 187 — (263)— 404 (7)
Total investments$1,799 $— $(86)$96 $(620)$436 $— $(549)$— $1,076 $(29)

Table continues on the next page.
  
Net realized/unrealized
gains (losses) included in(1)
Transfers     
Unrealized
gains
(losses)
still held(3)
In millions of dollarsDec. 31, 2023Principal
transactions
Other(1)(2)
into
Level 3		out of
Level 3		PurchasesIssuancesSalesSettlementsDec. 31, 2024
Loans$427 $— $(85)$664 $(896)$— $250 $— $(98)$262 $(6)
Mortgage servicing rights691 — 37 — — — 104 — (72)760 44 
Other financial assets30 — (1)— — 5 51 (5)(65)15 (1)
Liabilities
Deposits$29 $1 $4 $51 $(40)$— $39 $— $(35)$39 $1 
Securities loaned and sold under agreements to repurchase390 5 — — — 976 — — (971)390 5 
Trading account liabilities
Securities sold, not yet purchased35 (14)— 35 (30)116 — — (142)28 5 
Other trading liabilities— — — — — — — — — — — 
Short-term borrowings481 (94)— 88 (560)1 479 — (286)297 (37)
Long-term debt38,380 1,757 — 4,626 (22,923)— 5,995 — (3,221)21,100 1,731 
Other financial liabilities6 — — — — — 5 — (11)— — 

(1)Net realized/unrealized gains (losses) are presented as increase (decrease) to Level 3 assets and as (increase) decrease to Level 3 liabilities. Changes in fair value of available-for-sale debt securities are recorded in AOCI, unless related to credit impairment, while gains and losses from sales are recorded in Realized gains (losses) from sales of investments in the Consolidated Statement of Income.
(2)Unrealized gains (losses) on MSRs are recorded in Other revenue in the Consolidated Statement of Income.
(3)Represents the amount of total gains or losses for the period, included in earnings (and AOCI for changes in fair value of available-for-sale debt securities and DVA on fair value option liabilities), attributable to the change in fair value relating to assets and liabilities classified as Level 3 that are still held at December 31, 2024.
(4)Total Level 3 derivative assets and liabilities have been netted in these tables for presentation purposes only.


Level 3 Fair Value Transfers
The following were the significant Level 3 transfers for the period December 31, 2024 to December 31, 2025:

During the 12 months ended December 31, 2025, transfers of Long-term debt were $4.2 billion from Level 3 to Level 2, and $3.1 billion from Level 2 to Level 3. The Level 3 to Level 2 transfers were primarily the result of certain unobservable inputs becoming less significant to the overall valuation of these instruments. The Level 2 to Level 3 transfers were primarily the result of certain unobservable inputs becoming more significant to the overall valuation of these instruments.
The following were the significant Level 3 transfers for the period December 31, 2023 to December 31, 2024:

During the 12 months ended December 31, 2024, transfers of Long-term debt were $22.9 billion from Level 3 to Level 2, and $4.6 billion from Level 2 to Level 3. The Level 3 to Level 2 transfers were primarily the result of enhanced significance testing of unobservable inputs for certain structured debt instruments. The Level 2 to Level 3 transfers were primarily the result of certain unobservable inputs becoming more significant to the overall valuation of these instruments. The Level 3 to Level 2 transfers of $1.0 billion related to Equity contracts were primarily the result of certain unobservable inputs related to equity options becoming less significant to the overall valuation of these instruments.

Valuation Techniques and Inputs for Level 3 Fair
Value Measurements
The following tables present the valuation techniques covering the majority of Level 3 inventory and the most significant unobservable inputs used in Level 3 fair value measurements.
Differences between these tables and amounts presented in the Level 3 Fair Value Rollforward tables represent individually immaterial items that have been measured using a variety of valuation techniques other than those listed.

As of December 31, 2025
Fair value(1)
(in millions)
MethodologyInput
Low(2)(3)
High(2)(3)
Weighted
average(4)
Assets      
Mortgage-backed securities$352 Price-basedPrice$0.80 $145.12 $37.47 
214 
Yield analysis
Yield4.78 %26.14 %12.86 %
State and municipal, foreign government, corporate and other debt securities$866 Price-basedPrice$20.77 $194.45 $114.31 
389 Model-basedCredit spread167.00 bps508.30 bps399.15 bps
159 Cash flowYield2.30 %9.30 %8.72 %
WAL3.24 years8.14 years6.80 years
Interest rate contracts (gross)$3,608 Model-basedIR normal volatility0.06 %2.98 %0.65 %
Equity volatility12.00 %48.92 %26.43 %
Foreign exchange contracts (gross)$1,217 Model-basedIR normal volatility0.49 %0.86 %0.74 %
IR basis(20.15)%11.17 %(0.05)%
FX volatility0.32 %74.14 %7.91 %
Yield1.05 %14.90 %6.43 %
Equity contracts (gross)(7)
$6,597 Model-basedEquity volatility2.81 %184.01 %42.80 %
Equity forward53.29 %373.46 %111.14 %
Equity-FX correlation(75.75)%70.00 %(13.61)%
Equity-Equity correlation(36.22)%99.00 %52.48 %
Commodity and other contracts (gross)$1,881 Model-basedForward price0.11 %395.49 %98.83 %
Commodity volatility8.40 %316.56 %42.29 %
Credit derivatives (gross)$1,720 Model-basedCredit spread5.20 bps592.93 bps74.28 bps
Recovery rate0.50 %40.00 %34.87 %
985 Price-basedPrice$8.00 $119.13 $85.45 
Upfront points5.05 %106.23 %61.00 %
Mortgage servicing rights$676 Cash flowWAL3.24 years8.14 years6.80 years
82 Model-basedYield(0.40)%12.00 %6.35 %
Liabilities
Securities loaned and sold under agreements to repurchase$952 Model-basedInterest rate 3.47 %5.43 %3.85 %
IR normal volatility0.46 %0.89 %0.78 %
Short-term borrowings and long-term debt$24,126 Model-basedIR normal volatility0.06 %2.98 %0.74 %
FX volatility5.26 %14.01 %9.08 %
Equity volatility5.50 %92.67 %20.95 %
IR-FX correlation(34.00)%60.00 %46.37 %
Equity-IR correlation— %56.64 %36.32 %
IR-IR correlation40.00 %40.00 %40.00 %
Equity-FX correlation(60.00)%70.00 %(16.57)%
As of December 31, 2024
Fair value(1)
(in millions)
MethodologyInput
Low(2)(3)
High(2)(3)
Weighted
average(4)
Assets      
Securities borrowed and purchased under agreements to resell$128 Model-basedCredit spread10 bps10 bps10 bps
Interest rate3.81 %3.81 %3.81 %
Mortgage-backed securities$230 Yield analysisYield5.24 %18.43 %9.25 %
214 Price-basedPrice$0.01 $99.81 $35.24 
State and municipal, foreign government, corporate and other debt securities$560 Price-basedPrice$— $173.20 $98.52 
489 Model-basedCredit spread35 bps550 bps277 bps
Yield4.20 %10.60 %9.88 %
140 Cash flowWAL3.59 years8.82 years7.57 years
Marketable equity securities(5)
$131 Price-basedPrice$— $14,382.07 $442.64 
22 Model-basedWAL2.40 years2.40 years2.40 years
Recovery (in millions)
$8,628 $8,628 $8,628 
Asset-backed securities$132 Price-basedPrice$3.46 $132.54 $74.86 
47 Yield analysisYield5.85 %12.76 %8.07 %
Non-marketable equities$222 Comparable analysisIlliquidity discount 7.40 %33.00 %16.47 %
Revenue multiple4.50x16.31x11.97x
EBITDA multiples16.20x16.20x16.20x
81 Price-basedPrice$0.54 $2,960.96 $432.84 
50 Cash flowDiscount rate9.75 %17.50 %13.38 %
50 Model-based
Derivatives—gross(6)
Interest rate contracts (gross)$3,574 Model-basedIR normal volatility0.16 %20.00 %2.18 %
Yield1.69 %46.32 %5.64 %
Equity forward71.78 %334.29 %106.48 %
Foreign exchange contracts (gross)$1,247 Model-basedIR normal volatility0.67 %1.13 %0.93 %
IR basis(7.50)%64.75 %5.01 %
FX volatility3.33 %27.64 %12.55 %
Yield1.69 %46.32 %9.26 %
Equity contracts (gross)(7)
$4,345 Model-basedEquity volatility— %145.41 %32.89 %
Equity forward71.78 %334.29 %105.90 %
Equity-FX correlation(93.33)%70.00 %(14.52)%
Equity-Equity correlation(36.22)%99.00 %72.43 %
Commodity and other contracts (gross)$1,716 Model-basedForward price1.84 %244.41 %115.84 %
Commodity volatility7.14 %285.61 %35.86 %
Credit derivatives (gross)$869 Model-basedRecovery rate20.00 %72.00 %41.54 %
Credit spread5.00 bps747.27 bps100.50 bps
Credit spread volatility29.85 %81.44 %67.58 %
468 Price-basedPrice$43.71 $103.53 $85.76 
Upfront points(6.25)%110.52 %43.93 %
Other financial assets and liabilities (gross)$14 Price-basedPrice$91.12 $104.49 $100.04 
Loans and leases$177 Model-basedEquity volatility35.42 %41.94 %37.21 %
Forward price1.84 %244.41 %102.92 %
82 Price-basedPrice$73.88 $99.25 $85.09 
Mortgage servicing rights$671 Cash flowWAL3.59 years8.82 years7.57 years
84 Model-basedYield0.30 %12.00 %6.82 %
Liabilities
Interest-bearing deposits$39 Model-basedForward price100.00 %100.00 %100.00 %
Securities loaned and sold under agreements to repurchase$390 Model-basedInterest rate 4.25 %4.85 %4.28 %
IR normal volatility0.67 %1.13 %0.93 %
Trading account liabilities
Securities sold, not yet purchased and other trading liabilities$27 Price-basedPrice$— $14,382.07 $91.47 
Short-term borrowings and long-term debt$20,883 Model-basedIR normal volatility0.04 %20.00 %1.54 %
Equity volatility— %145.41 %19.81 %
Equity-IR correlation(34.00)%60.00 %27.29 %

(1)The tables above include the fair values for the items listed and may not represent the total population for each category.
(2)Some inputs are shown as zero due to rounding.
(3)When the low and high inputs are the same, there is either a constant input applied to all positions, or the methodology involving the input applies to only one large position.
(4)Weighted averages are calculated based on the fair values of the instruments.
(5)For marketable equity securities, the price inputs are expressed on an absolute basis, not as a percentage of the notional amount.
(6)Both trading and non-trading account derivatives—assets and liabilities—are presented on a gross absolute value basis.
(7)Includes hybrid products.
Uncertainty of Fair Value Measurements Relating to Unobservable Inputs
Valuation uncertainty arises when there is insufficient or dispersed market data to allow a precise determination of the exit value of a fair-valued position or portfolio in today’s market. This is especially prevalent in Level 3 fair value instruments, where uncertainty exists in valuation inputs that may be both unobservable and significant to the instrument’s (or portfolio’s) overall fair value measurement. The uncertainties associated with key unobservable inputs on the Level 3 fair value measurements may not be independent of one another. In addition, the amount and direction of the uncertainty on a fair value measurement for a given change in an unobservable input depends on the nature of the instrument as well as whether the Company holds the instrument as an asset or a liability. For certain instruments, the pricing, hedging and risk management are sensitive to the correlation between various inputs rather than on the analysis and aggregation of the individual inputs.
The following section describes some of the most significant unobservable inputs used by the Company in Level 3 fair value measurements.

Correlation
Correlation is a measure of the extent to which two or more variables change in relation to each other. A variety of correlation-related assumptions are required for a wide range of instruments, including equity and credit baskets, foreign exchange options, credit index tranches and many other instruments. For almost all of these instruments, correlations are not directly observable in the market and must be calculated using alternative sources, including historical information. Estimating correlation can be especially difficult where it may vary over time, and calculating correlation information from market data requires significant assumptions regarding the informational efficiency of the market (e.g., swaption markets). Uncertainty therefore exists when an estimate of the appropriate level of correlation as an input into some fair value measurements is required.
Changes in correlation levels can have a substantial impact, favorable or unfavorable, on the value of an instrument, depending on its nature. A change in the default correlation of the fair value of the underlying bonds comprising a CDO structure would affect the fair value of the senior tranche. For example, an increase in the default correlation of the underlying bonds would reduce the fair value of the senior tranche, because highly correlated instruments produce greater losses in the event of default and a portion of these losses would become attributable to the senior tranche. That same change in default correlation would have a different impact on junior tranches of the same structure.

Volatility
Volatility represents the speed and severity of market price changes and is a key factor in pricing options. Volatility generally depends on the tenor of the underlying instrument
and the strike price or level defined in the contract. Volatilities for certain combinations of tenor and strike are not observable and need to be estimated using alternative methods, such as comparable instruments, historical analysis or other sources of
market information. This leads to uncertainty around the final fair value measurement of instruments with unobservable volatilities.
The general relationship between changes in the value of an instrument (or a portfolio) to changes in volatility also depends on changes in interest rates and the level of the underlying index. Generally, long option positions (assets) benefit from increases in volatility, whereas short option positions (liabilities) will suffer losses. Some instruments are more sensitive to changes in volatility than others. For example, an at-the-money option would experience a greater percentage change in its fair value than a deep-in-the-money option. In addition, the fair value of an option with more than one underlying security (e.g., an option on a basket of equities) depends on the volatility of the individual underlying securities as well as their correlations.

Yield
In some circumstances, the yield of an instrument is not observable in the market and must be estimated from historical data or from yields of similar securities. This estimated yield may need to be adjusted to capture the characteristics of the security being valued. Whenever the amount of the adjustment is significant to the value of the security, the fair value measurement is classified as Level 3.
Adjusted yield is generally used to discount the projected future principal and interest cash flows on instruments, such as asset-backed securities. Adjusted yield is impacted by changes in the interest rate environment and relevant credit spreads.

Prepayment
Voluntary unscheduled payments (prepayments) change the future cash flows for the investor and thereby change the fair value of the security. The effect of prepayments is more pronounced for residential mortgage-backed securities. Prepayment is generally negatively correlated with delinquency and interest rate. A combination of low prepayments and high delinquencies amplifies each input’s negative impact on a mortgage security’s valuation. As prepayment speeds change, the weighted-average life of the security changes, which impacts the valuation either positively or negatively, depending upon the nature of the security and the direction of the change in the weighted-average life.

Recovery
Recovery is the proportion of the total outstanding balance of a bond or loan that is expected to be collected in a liquidation scenario. For many credit securities (e.g., commercial mortgage-backed securities), the expected recovery amount of a defaulted property is typically unknown until a liquidation of the property is imminent. The assumed recovery of a security may differ from its actual recovery that will be observable in the future. Generally, an increase in the recovery rate assumption increases the fair value of the security. An increase in loss severity, the inverse of the recovery rate, reduces the amount of principal available for distribution and, as a result, decreases the fair value of the security.



Credit Spread
Credit spread is a component of the security representing its credit quality. Credit spread reflects the market perception of changes in prepayment, delinquency and recovery rates, therefore capturing the impact of other variables on the fair value. Changes in credit spread affect the fair value of securities differently depending on the characteristics and maturity profile of the security. For example, credit spread is a more significant driver of the fair value measurement of a high-yield bond as compared to an investment-grade bond. Generally, the credit spread for an investment-grade bond is also more observable and less volatile than its high-yield counterpart.
Items Measured at Fair Value on a Nonrecurring Basis
Certain assets and liabilities are measured at fair value on a nonrecurring basis and, therefore, are not included in the tables above. These include assets measured at cost that have been written down to fair value during the periods as a result of an impairment. These also include non-marketable equity securities that have been measured using the measurement alternative and are either (i) written down to fair value during the periods as a result of an impairment or (ii) adjusted upward or downward to fair value as a result of a transaction observed during the periods for an identical or similar investment in the same issuer. In addition, these assets include loans held-for-sale and other real estate owned that are measured at the lower of cost or market value.
The following tables present the carrying amounts of all assets that were still held as of the balance sheet date for which a nonrecurring fair value measurement was recorded during the period. The amounts reflect the fair values of the assets as of their respective remeasurement dates, which are generally prior to the balance sheet date. The following tables exclude certain consumer mortgage loans for which Citi has elected the fair value option (see Note 27), and consumer loans and other assets held by businesses held-for-sale (see “Significant Disposals” in Note 2):

In millions of dollarsFair valueLevel 2Level 3
December 31, 2025   
Loans HFS(1)
$641 $188 $453 
Other real estate owned— — — 
Loans(2)
272 — 272 
Non-marketable equity securities measured using the measurement alternative350 — 350 
Total assets at fair value on a nonrecurring basis$1,263 $188 $1,075 
In millions of dollarsFair valueLevel 2Level 3
December 31, 2024   
Loans HFS(1)
$684 $413 $271 
Other real estate owned1 — 1 
Loans(2)
353 — 353 
Non-marketable equity securities measured using the measurement alternative184 — 184 
Total assets at fair value on a nonrecurring basis$1,222 $413 $809 

(1)Net of mark-to-market amounts on the unfunded portion of loans HFS recognized as Other liabilities on the Consolidated Balance Sheet.
(2)Represents collateral-dependent loans held-for-investment for which the fair value of collateral is used to estimate expected credit losses, and whose carrying amount is based on the fair value of the underlying collateral less costs to sell, as applicable (primarily real estate).

The fair value of loans HFS is determined where possible using quoted secondary-market prices. If no such quoted price exists, the fair value of a loan is determined using quoted prices for a similar asset or assets, adjusted for the specific attributes of that loan. Fair value for the other real estate owned is based on appraisals. For loans whose carrying amount is based on the fair value of the underlying collateral, the fair values depend on the type of collateral. Fair value of the collateral is typically estimated based on quoted market prices if available, appraisals or other internal valuation techniques.
Where the fair value of the related collateral is based on an appraised value, the loan is generally classified as Level 3. In addition, for corporate loans, appraisals of the collateral are often based on sales of similar assets; however, because the prices of similar assets require significant adjustments to reflect the unique features of the underlying collateral, these fair value measurements are generally classified as Level 3.
The fair value of non-marketable equity securities under the measurement alternative is based on observed transaction prices for the identical or similar investment of the same issuer, or an internal valuation technique in the case of an impairment. Where there are insufficient market observations to conclude the inputs are observable, where significant adjustments are made to the observed transaction prices or when an internal valuation technique is used, the security is classified as Level 3. Fair value may differ from the observed transaction price due to a number of factors, including marketability adjustments and differences in rights and obligations when the observed transaction is not for the identical investment held by Citi.

Valuation Techniques and Inputs for Level 3 Nonrecurring Fair Value Measurements
The following tables present the valuation techniques covering the majority of Level 3 nonrecurring fair value measurements and the most significant unobservable inputs used in those measurements:

As of December 31, 2025
Fair value(1)
(in millions)
MethodologyInput
Low(2)
High
Weighted
average(3)
Loans HFS$453 Price-basedPrice$83.00 $100.00 $98.66 
Loans(4)
$271 Recovery analysis
Appraised value(5)
$10,000 $75,424,500 $30,328,429 
Recovery rate35.10 %85.20 %60.55 %
Non-marketable equity securities measured using the measurement alternative$254 Price-basedPrice$4.57 $205.01 $70.91 
96 Comparable analysisRevenue multiple2.07x27.20x15.51x

As of December 31, 2024
Fair value(1)
(in millions)
MethodologyInput
Low(2)
High
Weighted
average(3)
Loans HFS$271 Price-basedPrice$— $101.00 $96.61 
Loans(4)
$353 Recovery analysis
Appraised value(5)
$10,000 $104,049,422 $58,636,070 
Non-marketable equity securities measured using the measurement alternative$136 Price-basedPrice$1.50 $2,961.00 $258.00 
29 Comparable analysisRevenue multiple3.80x9.19x6.67x
19 Recovery analysis
Appraised value(5)
$503,332 $7,220,000 $4,309,976 

(1)The tables above include the fair values for the items listed and may not represent the total population for each category.
(2)Some inputs are shown as zero due to rounding.
(3)Weighted averages are calculated based on the fair values of the instruments.
(4)Represents collateral-dependent loans held-for-investment for which the fair value of collateral is used to estimate expected credit losses, and whose carrying amount is based on the fair value of the underlying collateral less costs to sell, as applicable (primarily real estate).
(5)Appraised values are disclosed in whole dollars.


Nonrecurring Fair Value Changes
The following table presents total nonrecurring fair value measurements for the period, included in earnings, attributable to the change in fair value relating to assets that were still held:

Year ended December 31,
In millions of dollars20252024
Loans HFS$(38)$(10)
Other real estate owned— — 
Loans(1)
(10)(44)
Non-marketable equity securities measured using the measurement alternative(60)(29)
Total nonrecurring fair value gains (losses)$(108)$(83)

(1)Represents collateral-dependent loans held-for-investment for which the fair value of collateral is used to estimate expected credit losses, and whose carrying amount is based on the fair value of the underlying collateral less costs to sell, as applicable (primarily real estate).
Estimated Fair Value of Financial Instruments Not Carried at Fair Value
The following tables present the carrying value and fair value of Citigroup’s financial instruments that are not carried at fair value. The tables below therefore exclude items measured at fair value on a recurring basis presented in the tables above.
The disclosure also excludes leases, affiliate investments, pension and benefit obligations, certain insurance contracts and tax-related items. Also, as required, the disclosure excludes the effect of taxes, any premium or discount that could result from offering for sale at one time the entire holdings of a particular instrument, excess fair value
associated with deposits with no fixed maturity and other expenses that would be incurred in a market transaction. In addition, the tables exclude the values of non-financial assets and liabilities, as well as a wide range of franchise, relationship and intangible values, which are integral to a full assessment of Citigroup’s financial position and the value of its net assets.
Fair values vary from period to period based on changes in a wide range of factors, including interest rates, credit quality and market perceptions of value, and as existing assets and liabilities run off and new transactions are entered into.


 December 31, 2025Estimated fair value
 Carrying
value		Estimated
fair value
In billions of dollarsLevel 1Level 2Level 3
Assets     
HTM debt securities, net of allowance(1)
$194.9 $184.7 $87.3 $95.2 $2.2 
Securities borrowed and purchased under agreements to resell150.1 150.1 — 150.1 — 
Loans(2)(3)
726.0 742.1 — — 742.1 
Other financial assets(3)(4)(5)
448.0 448.0 349.6 98.4 — 
Liabilities     
Deposits$1,399.4 $1,399.3 $— $1,399.3 $— 
Securities loaned and sold under agreements to repurchase148.7 148.7 — 148.7 — 
Long-term debt(6)
185.0 189.9 — 183.8 6.1 
Other financial liabilities(5)(7)
141.8 141.8 — 141.8 — 

 December 31, 2024Estimated fair value
 Carrying
value		Estimated
fair value
In billions of dollarsLevel 1Level 2Level 3
Assets     
HTM debt securities, net of allowance(1)
$247.6 $229.8 $120.2 $107.4 $2.2 
Securities borrowed and purchased under agreements to resell133.2 133.2 — 133.2 — 
Loans(2)(3)
667.6 673.5 — — 673.5 
Other financial assets(3)(4)
362.2 362.2 260.6 15.9 85.7 
Liabilities     
Deposits$1,280.9 $1,280.9 $— $1,280.9 $— 
Securities loaned and sold under agreements to repurchase205.6 205.6 — 205.6 — 
Long-term debt(6)
174.5 178.0 — 162.1 15.9 
Other financial liabilities(7)
137.7 137.7 — 34.7 103.0 

(1)Includes $5.1 billion and $5.2 billion of non-marketable equity securities carried at cost at December 31, 2025 and 2024, respectively.
(2)The carrying value of loans is net of the allowance for credit losses on loans of $19.2 billion for December 31, 2025 and $18.6 billion for December 31, 2024. In addition, the carrying values exclude $0.1 billion and $0.3 billion of lease finance receivables at December 31, 2025 and 2024, respectively.
(3)Includes items measured at fair value on a nonrecurring basis.
(4)Includes cash and due from banks, deposits with banks, brokerage receivables, reinsurance recoverables and other financial instruments included in Other assets on the Consolidated Balance Sheet, for all of which the carrying value is a reasonable estimate of fair value.
(5)As a result of Citi’s refining its application of fair value hierarchy methodologies, certain other financial assets and other financial liabilities that were previously classified as Level 2 or 3 are now classified as Level 1 or 2.
(6)The carrying value includes long-term debt balances under qualifying fair value hedges.
(7)Includes brokerage payables, separate and variable accounts, short-term borrowings (carried at cost) and other financial instruments included in Other liabilities on the Consolidated Balance Sheet, for all of which the carrying value is a reasonable estimate of fair value.

The estimated fair values of the Company’s corporate unfunded lending commitments at December 31, 2025 and 2024 were off-balance sheet liabilities of $10.8 billion and $13.5 billion, respectively, substantially all of which are
classified as Level 3. The Company does not estimate the fair values of consumer unfunded lending commitments, which are generally cancelable by providing notice to the borrower.