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Fair Value (Tables)
3 Months Ended
Mar. 31, 2024
Fair Value [Abstract]  
Fair Value Measurements - Recurring Basis Summary The following table summarizes our assets and liabilities measured at fair value on a recurring basis, including instruments for which we have elected the fair value option.
Table 64: Fair Value Measurements – Recurring Basis Summary

 March 31, 2024December 31, 2023
In millionsLevel 1Level 2Level 3Total
Fair Value
Level 1Level 2Level 3Total
Fair Value
Assets
Residential mortgage loans held for sale$422 $98 $520 $371 $103 $474 
Commercial mortgage loans held for sale190 11 201 227 11 238 
Securities available for sale
U.S. Treasury and government agencies$6,962 918 7,880 $6,292 659 6,951 
Residential mortgage-backed
Agency26,842 26,842 27,880 27,880 
Non-agency668 668  696 696 
Commercial mortgage-backed
Agency1,639 1,639 1,546 1,546 
Non-agency731 103 834 766 103869 
Asset-backed1,727 100 1,827 1,014 102 1,116 
Other2,537 53 2,590 2,672 55 2,727 
Total securities available for sale6,962 34,394 924 42,280 6,292 34,537 956 41,785 
Loans504 713 1,217 512 726 1,238 
Equity investments (a) 511 2,030 2,739 574 1,952 2,717 
Residential mortgage servicing rights2,687 2,687 2,654 2,654 
Commercial mortgage servicing rights1,075 1,075 1,032 1,032 
Trading securities (b) 468 1,998 2,466 377 2,422 2,799 
Financial derivatives (b) (c)12 3,311 3,332 293,394 3,429 
Other assets425 100 533 403 85 496 
Total assets (d)$8,378 $40,919 $7,555 $57,050 $7,675 $41,548 $7,448 $56,862 
Liabilities
Other borrowed funds $861 $109 $$979 $724 $84 $$817 
Financial derivatives (c) (e) 6,243 113 6,365 11 5,736 152 5,899 
Other liabilities189 189 237 237 
Total liabilities (f) $870 $6,352 $311 $7,533 $735 $5,820 $398 $6,953 
(a)Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
(b)Included in Other assets on the Consolidated Balance Sheet.
(c)Amounts at March 31, 2024 and December 31, 2023 are presented gross and are not reduced by the impact of legally enforceable master netting agreements that allow us to net positive and negative positions and cash collateral held or placed with the same counterparty. See Note 12 Financial Derivatives for additional information related to derivative offsetting.
(d)Total assets at fair value as a percentage of total consolidated assets was 10% at both March 31, 2024 and December 31, 2023. Level 3 assets as a percentage of total assets at fair value was 13% at both March 31, 2024 and December 31, 2023. Level 3 assets as a percentage of total consolidated assets was 1% at both March 31, 2024 and December 31, 2023.
(e)Included in Other liabilities on the Consolidated Balance Sheet.
(f)Total liabilities at fair value as a percentage of total consolidated liabilities was 1% at both March 31, 2024 and December 31, 2023. Level 3 liabilities as a percentage of total liabilities at fair value was 4% and 6% at March 31, 2024 and December 31, 2023, respectively. Level 3 liabilities as a percentage of total consolidated liabilities was less than 1% at both March 31, 2024 and December 31, 2023.
Reconciliation of Level 3 Assets and Liabilities
Reconciliations of assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three months ended March 31, 2024 and 2023 are as follows:

Table 65: Reconciliation of Level 3 Assets and Liabilities
Three Months Ended March 31, 2024
   Total realized / unrealized
gains or losses for the 
period (a)
              Unrealized
gains / losses for the period
on assets and
liabilities held on
Consolidated
Balance Sheet at
Mar. 31, 2024 (a) (c)
Level 3 Instruments Only
In millions
Fair Value Dec. 31, 2023Included in
Earnings
Included
in Other
comprehensive
income (b)
PurchasesSalesIssuancesSettlementsTransfers
into
Level 3
Transfers
out of
Level 3
Fair
Value Mar. 31, 2024
Assets             
Residential mortgage
    loans held for sale
$103 $(1) $  $(2)$$(6)(d)$98 $(1) 
Commercial mortgage
    loans held for sale
11        11  
Securities available for sale     
Residential mortgage-
  backed non-agency
696 $(6)   (25) 668  
Commercial mortgage-
  backed non-agency
103        103  
Asset-backed102      (2) 100  
Other55 (2)   (1) 53 (2) 
Total securities
    available for sale
956 (5) (28) 924 (2) 
Loans726    (20) (2)(d)713 
Equity investments1,952 (5) 89 $(6)    2,030 (5) 
Residential mortgage
    servicing rights
2,654 72  13  $(57) 2,687 72 
Commercial mortgage
    servicing rights
1,032 107  12  (79) 1,075 107  
Financial derivatives     (6)  
Other assets    
Total assets $7,448 $187 $(5)$121 $(6)$$(192)$$(8)$7,555 $185 
Liabilities 
Other borrowed funds$$$(3)$ 
Financial derivatives 152 $  (47)113 $ 
Other liabilities 237 (20)  13 (41)189  
Total liabilities $398 $(12) $16 $(91)$311 $11  
Net gains (losses) $199 (e)        $174 (f) 
(Continued from previous page)

Three Months Ended March 31, 2023
   Total realized / unrealized
gains or losses for the 
period (a)
            Unrealized gains/losses for the period on assets and liabilities held on Consolidated Balance Sheet at Mar. 31, 2023 (a) (c)
Level 3 Instruments Only
In millions
Fair Value Dec. 31, 2022Included in EarningsIncluded in Other comprehensive income (b)PurchasesSalesIssuancesSettlementsTransfers into Level 3Transfers out of Level 3Fair Value Mar. 31, 2023
Assets             
Residential mortgage
   loans held for sale
$243 $$$(1)$(5)$$(8)(d)$242 $
Commercial mortgage
    loans held for sale
33 (1) 32 
Securities available for sale
Residential mortgage-
    backed non-agency
819 $(10)(26)787 
Commercial mortgage-backed non-agency 
Asset-backed124  (4)121 
Other55 (4)  (1)53 
Total securities
    available for sale
1,001 (13)  (31)964 
Loans769  (22)(2)(d)757 
Equity investments 1,778 121 140 (70)(134)(g)1,835 117 
Residential mortgage
    servicing rights
2,310 (48)18 $(53)2,232 (47)
Commercial mortgage
    servicing rights
1,113 13 (82)1,061 
Financial derivatives17 (4)19 17 
Total assets$7,252 $109 $(13)$182 $(71)$18 $(197)$$(144)$7,142 $102 
Liabilities
Other borrowed funds$$$(2)$
Financial derivatives123 $39 $(67)97 $42 
Other liabilities294 24  18 (107)229 20 
Total liabilities$421 $63  $$21 $(176)$331 $62 
Net gains (losses)$46 (e)$40 (f)
(a)Losses for assets are bracketed while losses for liabilities are not.
(b)The difference in unrealized gains and losses for the period included in Other comprehensive income and changes in unrealized gains and losses for the period included in Other comprehensive income for securities available for sale held at the end of the reporting period were insignificant.
(c)The amount of the total gains or losses for the period included in earnings that is attributable to the change in unrealized gains or losses related to those assets and liabilities held at the end of the reporting period.
(d)Residential mortgage loan transfers out of Level 3 are primarily driven by residential mortgage loans transferring to OREO as well as reclassification of mortgage loans held for sale to held for investment.
(e)Net gains (losses) realized and unrealized included in earnings related to Level 3 assets and liabilities included amortization and accretion. The amortization and accretion amounts were included in Interest income on the Consolidated Income Statement and the remaining net gains (losses) realized and unrealized were included in Noninterest income on the Consolidated Income Statement.
(f)Net unrealized gains (losses) related to assets and liabilities held at the end of the reporting period were included in Noninterest income on the Consolidated Income Statement.
(g)Transfers out of Level 3 during the prior period were due to valuation methodology changes for certain private company investments. See Note 1 Accounting Policies in our 2023 Form 10-K for more information on our accounting for private company investments.
Fair Value Measurements - Recurring Quantitative Information
Quantitative information about the significant unobservable inputs within Level 3 recurring assets and liabilities follows:

Table 66: Fair Value Measurements – Recurring Quantitative Information

March 31, 2024
Level 3 Instruments Only
Dollars in millions
Fair ValueValuation TechniquesUnobservable InputsRange (Weighted-Average) (a)
Commercial mortgage loans held for sale$11 Discounted cash flowSpread over the benchmark curve (b)
580bps - 7,155bps (2,649bps)
Residential mortgage-backed
    non-agency securities
668 Priced by a third-party vendor using a discounted cash flow pricing modelConstant prepayment rate
1.0% - 27.9% (2.9%)
Constant default rate
0.0% - 12.0% (1.9%)
Loss severity
10.0% - 70.0% (42.3%)
Spread over the benchmark curve (b)
268bps weighted-average
Asset-backed securities100 Priced by a third-party vendor using a discounted cash flow pricing modelConstant prepayment rate
1.0% - 28.0% (4.1%)
Constant default rate
0.0% - 8.1% (1.6%)
Loss severity
30.0% - 100.0% (49.7%)
Spread over the benchmark curve (b)
227bps weighted-average
Loans - Residential real estate - Uninsured539 Consensus pricing (c)Cumulative default rate
3.6% - 100.0% (58.2%)
Loss severity
0.0% - 100.0% (5.3%)
Discount rate
5.5% - 7.5% (5.8%)
Loans - Residential real estate73 Discounted cash flowLoss severity
6.0% weighted-average
Discount rate
8.0% weighted-average
Loans - Home equity - First-lien17 Consensus pricing (c)Cumulative default rate
3.6% - 100.0% (60.7%)
Loss severity
0.0% - 100.0% (13.8%)
Discount rate
5.5% - 7.5% (6.1%)
Loans - Home equity84 Consensus pricing (c)Credit and liquidity discount
0.3% - 100.0% (43.7%)
Equity investments 2,030 Multiple of adjusted earningsMultiple of earnings
5.5x - 27.0x (10.4x)
Residential mortgage servicing rights2,687 Discounted cash flowConstant prepayment rate
0.0% - 40.1% (6.3%)
Spread over the benchmark curve (b)
337bps - 1,648bps (766bps)
Commercial mortgage servicing rights1,075 Discounted cash flowConstant prepayment rate
5.0% - 8.6% (5.2%)
Discount rate
8.0% - 10.3% (9.9%)
Financial derivatives - Swaps related to
    sales of certain Visa Class B-1
    common shares
(106)Discounted cash flowEstimated conversion factor of Visa Class B-1 shares into Class A shares
1.59 weighted-average
Estimated annual growth rate of Visa Class A share price
16.0%
Estimated litigation resolution date
Q3 2024
Insignificant Level 3 assets, net of
    liabilities (d)
66 
Total Level 3 assets, net of liabilities (e)$7,244 
(Continued from previous page)

December 31, 2023
Level 3 Instruments Only
Dollars in millions
Fair ValueValuation TechniquesUnobservable InputsRange (Weighted-Average) (a)
Commercial mortgage loans held for sale$11 Discounted cash flowSpread over the benchmark curve (b)
575bps - 3,610bps (1,647bps)
Residential mortgage-backed
    non-agency securities
696 Priced by a third-party vendor using a discounted cash flow pricing modelConstant prepayment rate
1.0% - 27.9% (3.7%)
Constant default rate
0.0% - 12.0% (2.7%)
Loss severity
10.0% - 69.0% (41.2%)
Spread over the benchmark curve (b)
285bps weighted-average
Asset-backed securities102 Priced by a third-party vendor using a discounted cash flow pricing modelConstant prepayment rate
1.0% - 28.0% (5.1%)
Constant default rate
0.0% - 4.3% (1.7%)
Loss severity
20.0% - 100.0% (49.5%)
Spread over the benchmark curve (b)
248bps weighted-average
Loans - Residential real estate - Uninsured546 Consensus pricing (c)Cumulative default rate
3.6% - 100.0% (59.1%)
Loss severity
0.0% - 100.0% (5.4%)
Discount rate
5.5% - 7.5% (5.8%)
Loans - Residential real estate75 Discounted cash flowLoss severity
6.0% weighted-average
Discount rate
7.8% weighted-average
Loans - Home equity - First-lien18 Consensus pricing (c)Cumulative default rate
3.6% - 100.0% (60.9%)
Loss severity
0.0% - 100.0% (14.4%)
Discount rate
5.5% - 7.5% (6.2%)
Loans - Home equity87 Consensus pricing (c)Credit and Liquidity discount
0.3% - 100.0% (43.8%)
Equity investments 1,952 Multiple of adjusted earningsMultiple of earnings
4.5x - 26.7x (10.1x)
Residential mortgage servicing rights2,654 Discounted cash flowConstant prepayment rate
0.0% - 33.6% (6.4%)
Spread over the benchmark curve (b)
337bps - 1,668bps (765bps)
Commercial mortgage servicing rights1,032 Discounted cash flowConstant prepayment rate
5.3% - 9.7% (5.5%)
Discount rate
7.6% - 10.0% (9.6%)
Financial derivatives - Swaps related to
    sales of certain Visa Class B-1
    common shares
(145)Discounted cash flowEstimated conversion factor of Visa Class B-1 shares into Class A shares
1.59 weighted-average
Estimated annual growth rate of Visa Class A share price
16.0%
Estimated litigation resolution date
Q3 2024
Insignificant Level 3 assets, net of
    liabilities (d)
22  
Total Level 3 assets, net of liabilities (e)$7,050    
(a)Unobservable inputs were weighted by the relative fair value of the instruments.
(b)The assumed yield spread over the benchmark curve for each instrument is generally intended to incorporate non-interest rate risks, such as credit and liquidity risks.
(c)Consensus pricing refers to fair value estimates that are generally internally developed using information such as dealer quotes or other third-party provided valuations or comparable asset prices.
(d)Represents the aggregate amount of Level 3 assets and liabilities measured at fair value on a recurring basis that are individually and in the aggregate insignificant. The amount includes certain financial derivative assets and liabilities, trading securities, other securities, residential mortgage loans held for sale, other assets, other borrowed funds and other liabilities.
(e)Consisted of total Level 3 assets of $7.6 billion and total Level 3 liabilities of $0.3 billion as of March 31, 2024 and $7.4 billion and $0.4 billion as of December 31, 2023, respectively.
Fair Value Measurements - Nonrecurring
Assets measured at fair value on a nonrecurring basis follow:

Table 67: Fair Value Measurements – Nonrecurring (a) (b) (c)
 Fair Value Gains (Losses)
Three months ended
In millionsMarch 31
2024
December 31
2023
March 31
2024
March 31
2023
Assets
Nonaccrual loans$602 $578 $(60)$(79)
Equity investments10 203 (10)(5)
OREO and foreclosed assets12  
Long-lived assets(3)(5)
Total assets$628 $802 $(73)$(89)
(a)All Level 3 for the periods presented, except for $30 million included in Equity investments which was categorized as Level 1 as of December 31, 2023.
(b)Valuation techniques applied were fair value of property or collateral.
(c)Unobservable inputs used were appraised value/sales price, broker opinions or projected income/required improvement costs. Additional quantitative information was not meaningful for the periods presented.
Fair Value Option - Fair Value and Principal Balances
Fair values and aggregate unpaid principal balances of items for which we elected the fair value option are as follows:
Table 68: Fair Value Option – Fair Value and Principal Balances
March 31, 2024December 31, 2023
In millionsFair ValueAggregate Unpaid
Principal Balance
DifferenceFair ValueAggregate Unpaid
Principal Balance
Difference
Assets
Residential mortgage loans held for sale
Accruing loans less than 90 days past due$480 $481 $(1)$432 $429 $
Accruing loans 90 days or more past due
Nonaccrual loans35 42 (7)36 43 (7)
Total$520 $528 $(8)$474 $478 $(4)
Commercial mortgage loans held for sale (a) (b)
Accruing loans less than 90 days past due$201 $200 $$238 $228 $10 
Loans
Accruing loans less than 90 days past due$515 $527 $(12)$507 $520 $(13)
Accruing loans 90 days or more past due130 141 (11)146 156 (10)
Nonaccrual loans572 773 (201)585 793 (208)
Total$1,217 $1,441 $(224)$1,238 $1,469 $(231)
Other assets$101 $95 $$85 $69 $16 
Liabilities
Other borrowed funds$38 $39 $(1)$39 $40 $(1)
Other liabilities$98 $98 $124 $124 
(a)There were no accruing loans 90 days or more past due within this category at March 31, 2024 or December 31, 2023.
(b)There were no nonaccrual loans within this category at March 31, 2024 or December 31, 2023.
Fair Value Option - Changes in Fair Value
The changes in fair value for items for which we elected the fair value option are as follows:

Table 69: Fair Value Option – Changes in Fair Value (a)
Gains (Losses)
 Three months ended
March 31March 31
In millions20242023
Assets
Residential mortgage loans held for sale$$15 
Commercial mortgage loans held for sale$(5)$
Loans$$
Other assets$$(14)
Liabilities
Other liabilities$(2)$(20)
(a)The impact on earnings of offsetting hedged items or hedging instruments is not reflected in these amounts.
Additional Fair Value Information Related to Other Financial Instruments
The following table presents the carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of all other financial instruments that are not recorded on our Consolidated Balance Sheet at fair value as of March 31, 2024 and December 31, 2023. For more information regarding the methods and assumptions used to estimate the fair values of financial instruments included in Table 70, see Note 14 Fair Value in our 2023 Form 10-K.
Table 70: Additional Fair Value Information Related to Other Financial Instruments
 CarryingFair Value
In millionsAmountTotalLevel 1Level 2Level 3
March 31, 2024
Assets
Cash and due from banks$5,933 $5,933 $5,933 
Interest-earning deposits with banks53,612 53,612 $53,612 
Securities held to maturity88,185 83,301 29,696 53,451 $154 
Net loans (excludes leases)307,409 298,395 298,395 
Other assets5,769 5,769 5,760 
Total assets$460,908 $447,010 $35,629 $112,823 $298,558 
Liabilities
Time deposits$34,221 $34,246 $34,246 
Borrowed funds71,639 72,479 71,315 $1,164 
Unfunded lending related commitments672 672 672 
Other liabilities1,445 1,445 1,445 
Total liabilities$107,977 $108,842  $107,006 $1,836 
December 31, 2023
Assets
Cash and due from banks$6,921 $6,921 $6,921 
Interest-earning deposits with banks43,804 43,804 $43,804 
Securities held to maturity90,790 86,948 30,943 55,850 $155 
Net loans (excludes leases)308,936 299,645 299,645 
Other assets5,872 5,872 5,872  
Total assets$456,323 $443,190 $37,864 $105,526 $299,800 
Liabilities
Time deposits$31,569 $31,602 $31,602 
Borrowed funds71,816 72,369 71,194 $1,175 
Unfunded lending related commitments663 663 663 
Other liabilities1,091 1,091 1,091 
Total liabilities$105,139 $105,725 $103,887 $1,838