Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2024

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

The following table presents assets and liabilities measured at estimated fair value on a recurring basis as of December 31:


	2024								2023
	Level 1		Level 2		Level 3 (1)		Total Estimated Fair Value		Level 1		Level 2		Level 3 (1)		Total Estimated Fair Value
	(In millions)
Recurring fair value measurements
Debt securities available for sale:
U.S. Treasury securities	$	2,003	$	—	$	—	$	2,003	$	1,223	$	—	$	—	$	1,223
Federal agency securities	—		444		—		444		—		1,043		—		1,043
Obligations of states and political subdivisions	—		2		—		2		—		2		—		2
Mortgage-backed securities:
Residential agency	—		18,945		—		18,945		—		17,372		—		17,372

Commercial agency	—		4,090		—		4,090		—		7,307		—		7,307
Commercial non-agency	—		82		—		82		—		83		—		83
Corporate and other debt securities	—		655		3		658		—		1,073		1		1,074
Total debt securities available for sale	$	2,003	$	24,218	$	3	$	26,224	$	1,223	$	26,880	$	1	$	28,104
Loans held for sale	$	—	$	234	$	—	$	234	$	—	$	201	$	—	$	201
Marketable equity securities in other earning assets	$	819	$	—	$	—	$	819	$	813	$	—	$	—	$	813
Residential mortgage servicing rights	$	—	$	—	$	1,007	$	1,007	$	—	$	—	$	906	$	906
Commercial mortgage servicing rights through non-DUS agency programs	$	—	$	—	$	97	$	97	$	—	$	—	$	81	$	81
Derivative assets (2):
Interest rate swaps	$	—	$	1,634	$	—	$	1,634	$	—	$	1,813	$	—	$	1,813
Interest rate options	—		30		5		35		—		83		4		87
Interest rate futures and forward commitments	—		8		—		8		—		7		—		7
Other contracts	13		126		—		139		—		198		—		198
Total derivative assets	$	13	$	1,798	$	5	$	1,816	$	—	$	2,101	$	4	$	2,105

Derivative liabilities (2):
Interest rate swaps	$	—	$	2,411	$	—	$	2,411	$	—	$	2,419	$	—	$	2,419
Interest rate options	—		30		—		30		—		70		—		70
Interest rate futures and forward commitments	—		4		—		4		—		12		—		12
Other contracts	3		103		—		106		—		189		1		190
Total derivative liabilities	$	3	$	2,548	$	—	$	2,551	$	—	$	2,690	$	1	$	2,691
Securities sold, but not yet purchased	$	147	$	—	$	—	$	147	$	—	$	—	$	—	$	—

_________

(1)All following disclosures related to Level 3 recurring assets do not include those deemed to be immaterial.

(2)As permitted under U.S. GAAP, variation margin collateral payments made or received for derivatives that are centrally cleared are legally characterized as settled. As such, these derivative assets and derivative liabilities and the related variation margin collateral are presented on a net basis on the balance sheet.

Summary Of Quantitative Information About Level 3 Measurements

The following tables present detailed information regarding material assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of December 31, 2024 and 2023. The tables include the valuation techniques and the significant unobservable inputs utilized. The range of each significant unobservable input as well as the weighted-average within the range utilized at December 31, 2024 and 2023 are included. Following the tables are descriptions of the valuation techniques and the sensitivity of the techniques to changes in the significant unobservable inputs.

December 31, 2024

Level 3
Estimated Fair Value

Valuation
Technique

Unobservable
Input(s)

Quantitative Range of
Unobservable Inputs and
(Weighted-Average)

(Dollars in millions)

Recurring fair value measurements:

Residential mortgage servicing rights (1)

$1,007

Discounted cash flow

Weighted-average CPR (%)

4.6% - 23.1% (8.0%)

OAS (%)

4.8% - 7.7% (5.1%)

Commercial mortgage servicing rights through non-DUS agency programs (1)

$97

Discounted cash flow

Weighted-average CPR (%)

5.4% - 10.6% 7.7%%)

Discount rate (%)

7.0% - 8.0% (7.1%)

December 31, 2023

Level 3
Estimated Fair Value

Valuation
Technique

Unobservable
Input(s)

Quantitative Range of
Unobservable Inputs and
(Weighted-Average)

(Dollars in millions)

Recurring fair value measurements:

Residential mortgage servicing rights (1)

$906

Discounted cash flow

Weighted-average CPR (%)

5.6% - 21.5% (8.2%)

OAS (%)

4.5% -8.2% (4.8%)

Commercial mortgage servicing rights through non-DUS agency programs (1)

$81

Discounted cash flow

Weighted-average CPR (%)

5.4% - 11.5% (8.1%)

Discount rate (%)

7.0% -8.0% (7.1%)

_______

(1)See Note 6 for additional disclosures related to assumptions used in the fair value calculations for residential and commercial mortgage servicing rights.

Schedule Of Carrying Amounts And Estimated Fair Values Of Financial Instruments

The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments as of December 31, 2024 are as follows:


	2024
	Carrying Amount		Estimated Fair Value(1)		Level 1		Level 2		Level 3
	(In millions)
Financial assets:
Cash and cash equivalents	$	10,712	$	10,712	$	10,712	$	—	$	—
Debt securities held to maturity	4,427		4,226		—		4,226		—
Debt securities available for sale	26,224		26,224		2,003		24,218		3
Loans held for sale	594		594		—		594		—
Loans (excluding leases), net of unearned income and allowance for loan losses(2)(3)	93,424		89,907		—		—		89,907
Other earning assets	1,616		1,616		819		797		—
Derivative assets	1,816		1,816		13		1,798		5

Financial liabilities:
Derivative liabilities	2,551		2,551		3		2,548		—
Deposits with no stated maturity(4)	111,883		111,883		—		111,883		—
Time deposits(4)	15,720		15,694		—		15,694		—
Short-term borrowings	500		500		—		500		—
Long-term borrowings	5,993		6,059		—		6,058		1
Loan commitments and letters of credit	149		149		—		—		149

_________

(1)Estimated fair values are consistent with an exit price concept. The assumptions used to estimate the fair values are intended to approximate those that a market participant would use in a hypothetical orderly transaction. In estimating fair value, the Company makes adjustments for estimated changes in interest rates, market liquidity and credit spreads in the periods they are deemed to have occurred.

(2)The estimated fair value of portfolio loans assumes sale of the loans to a third-party financial investor. Accordingly, the value to the Company if the loans were held to maturity is not reflected in the fair value estimate. The fair value discount on the loan portfolio's net carrying amount at December 31, 2024 was $3.5 billion or 3.8 percent.

(3)Excluded from this table is the sales-type, direct financing, and leveraged lease carrying amount of $1.7 billion at December 31, 2024.

(4)The fair value of non-interest-bearing demand accounts, interest-bearing checking accounts, savings accounts, and money market accounts is the amount payable on demand at the reporting date (i.e., the carrying amount) as these instruments have an indeterminate maturity date. Fair values for time deposits are estimated by using discounted cash flow analyses, based on market spreads to benchmark rates.

The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company's financial instruments as of December 31, 2023 are as follows:


	2023
	Carrying Amount		Estimated Fair Value(1)		Level 1		Level 2		Level 3
	(In millions)
Financial assets:
Cash and cash equivalents	$	6,801	$	6,801	$	6,801	$	—	$	—
Debt securities held to maturity	754		716		—		716		—
Debt securities available for sale	28,104		28,104		1,223		26,880		1
Loans held for sale	400		400		—		397		3
Loans (excluding leases), net of unearned income and allowance for loan losses(2)(3)	95,141		91,352		—		—		91,352
Other earning assets	1,417		1,417		813		604		—
Derivative assets	2,105		2,105		—		2,101		4
Financial liabilities:
Derivative liabilities	2,691		2,691		—		2,690		1
Deposits with no stated maturity(4)	112,816		112,816		—		112,816		—
Time deposits(4)	14,972		14,905		—		14,905		—

Long-term borrowings	2,330		2,319		—		2,318		1
Loan commitments and letters of credit	156		156		—		—		156

_________

(3)Excluded from this table is the sales-type, direct financing, and leveraged lease carrying amount of $1.7 billion at December 31, 2023.