Derivative financial instruments (Tables)

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Information about Interest Rate Swap Agreements

Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the interest rate swap agreements were intended to hedge follows:

			Average		Weighted-						Estimated
	Notional		Maturity		Average Rate						Fair Value
(Dollars in millions)	Amount		(In years)		Fixed			Variable			Gain (Loss) (a)
December 31, 2023
Fair value hedges:
Fixed rate long-term borrowings (b) (c)	$	3,000		5.8		3.45	%		5.62	%	$	(1	)
Cash flow hedges:
Interest payments on variable rate commercial real estate    loans (b) (d)		23,977		1.7	3.45			5.36				11
Total	$	26,977		2.2							$	10
December 31, 2022
Fair value hedges:
Fixed rate long-term borrowings (b)	$	1,500		3.3		2.98	%		4.52	%	$	(1	)
Cash flow hedges:
Interest payments on variable rate commercial real estate    loans (b) (e)		15,900		1.4	1.91			4.38				(7	)
Total	$	17,400		1.6							$	(8	)

(a)Certain clearinghouse exchanges consider payments by counterparties for variation margin on derivative instruments to be settlements of those positions. The impact of such payments for interest rate swap agreements designated as fair value hedges was a net settlement of losses of $43 million at December 31, 2023 and a net settlement of losses of $65 million at December 31, 2022. The impact of such payments on interest rate swap agreements designated as cash flow hedges was a net settlement of losses of $214 million at December 31, 2023 and a net settlement of losses of $330 million at December 31, 2022.

(b)Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.

(c)Includes notional amount and terms of $1.0 billion of forward-starting interest rate swap agreements that become effective in 2025.

(d)Includes notional amount and terms of $9.0 billion of forward-starting interest rate swap agreements that become effective in 2024.

(e)Includes notional amount and terms of $4.7 billion of forward-starting interest rate swap agreements that became effective in 2023.

Notional Amount of Interest Rate Swap Agreements Outstanding Maturity

The notional amount of interest rate swap agreements entered into for risk management purposes that were outstanding at December 31, 2023 mature as follows:

(Dollars in millions)
Year ending December 31:
2024	$	3,158
2025		10,369
2026		10,450
2027		1,000
2028		1,000
2033		1,000
	$	26,977

Information about Fair Values of Derivative Instruments in Consolidated Balance Sheet

Information about the fair values of derivative instruments in the Company’s Consolidated Balance Sheet and Consolidated Statement of Income follows:

	Asset Derivatives				Liability Derivatives
	Fair Value				Fair Value
	December 31,		December 31,		December 31,		December 31,
(Dollars in millions)	2023		2022		2023		2022
Derivatives designated and qualifying as hedging    instruments (a)
Interest rate swap agreements	$	12	$	1	$	2	$	9
Commitments to sell real estate loans		6		3		8		—
		18		4		10		9
Derivatives not designated and qualifying as hedging    instruments (a)
Mortgage banking:
Commitments to originate real estate loans for sale		15		—		32		46
Commitments to sell real estate loans		35		51		3		—
		50		51		35		46
Other:
Interest rate contracts (b)		237		356		879		1,278
Foreign exchange and other option and futures contracts		19		24		19		22
		256		380		898		1,300
Total derivatives	$	324	$	435	$	943	$	1,355

(a)Asset derivatives are reported in "accrued interest and other assets" and liability derivatives are reported in "accrued interest and other liabilities".

The impact of variation margin payments at December 31, 2023 and 2022 was a reduction of the estimated fair value of interest rate contracts not designated as hedging instruments in an asset position of $783 million and $1.1 billion, respectively, and in a liability position of $32 million and $29 million, respectively.

	Carrying Amount of the Hedged Item				Cumulative Amount of Fair Value Hedging Adjustment Increasing (Decreasing) the Carrying Amount of the Hedged Item
(Dollars in millions)	December 31, 2023		December 31, 2022		December 31, 2023			December 31, 2022
Location in the Consolidated Balance Sheet    of the Hedged Items in Fair Value Hedges
Long-term borrowings	$	2,954	$	1,434	$	(44	)	$	(65	)

Information about Fair Values of Derivative Instruments in Consolidated Statement of Income

	Amount of Gain (Loss) Recognized
	Year ended December 31,
	2023					2022					2021
(Dollars in millions)	Derivative		Hedged Item			Derivative			Hedged Item		Derivative			Hedged Item
Derivatives in fair value    hedging relationships
Interest rate swap agreements:
Fixed rate long-term borrowings (a)	$	22	$	(21	)	$	(109	)	$	109	$	(59	)	$	58
Derivatives not designated as    hedging instruments
Interest rate contracts (b)	$	31				$	28				$	12
Foreign exchange and other option and    futures contracts (b)		15					14					9
Total	$	46				$	42				$	21

(a)Reported as an adjustment to "interest expense" in the Consolidated Statement of Income.

(b)Reported as "trading account and other non-hedging derivative gains" in the Consolidated Statement of Income.