Fair Values of Assets and Liabilities

3 Months Ended

Mar. 31, 2024


Note 12: Fair Values of Assets and Liabilities

We use fair value measurements to record fair value adjustments to certain assets and liabilities and to fulfill fair value disclosure requirements. Assets and liabilities recorded at fair value on a recurring basis, such as derivatives, residential MSRs, and trading or AFS debt securities, are presented in Table 12.1 in this Note. Additionally, from time to time, we record fair value adjustments on a nonrecurring basis. These nonrecurring adjustments typically involve application of lower of cost or fair value (LOCOM) accounting, write-downs of individual assets or application of the measurement alternative for nonmarketable equity securities. Assets recorded at fair value on a nonrecurring basis are presented in Table 12.4 in this Note. We provide in Table 12.9 estimates of fair value for financial instruments that are not recorded at fair value, such as loans and debt liabilities carried at amortized cost.

See Note 1 (Summary of Significant Accounting Policies) in our 2023 Form 10-K for a discussion of how we determine fair value. For descriptions of the valuation methodologies we use for assets and liabilities recorded at fair value on a recurring or nonrecurring basis, see Note 15 (Fair Values of Assets and Liabilities) in our 2023 Form 10-K.

FAIR VALUE HIERARCHY We classify our assets and liabilities recorded at fair value as either Level 1, 2, or 3 in the fair value hierarchy. The highest priority (Level 1) is assigned to valuations based on unadjusted quoted prices in active markets and the lowest priority (Level 3) is assigned to valuations based on significant unobservable inputs. See Note 1 (Summary of Significant Accounting Policies) in our 2023 Form 10-K for a detailed description of the fair value hierarchy.

In the determination of the classification of financial instruments in Level 2 or Level 3 of the fair value hierarchy, we consider all available information, including observable market data, indications of market liquidity and orderliness, and our understanding of the valuation techniques and significant inputs used. This determination is ultimately based upon the specific facts and circumstances of each instrument or instrument category and judgments are made regarding the significance of the unobservable inputs to the instruments’ fair value measurement in its entirety. If unobservable inputs are considered significant, the instrument is classified as Level 3.

We do not classify nonmarketable equity securities in the fair value hierarchy if we use the non-published net asset value (NAV) per share (or its equivalent) as a practical expedient to measure fair value. Marketable equity securities with published NAVs are classified in the fair value hierarchy.

Assets and Liabilities Recorded at Fair Value on a Recurring Basis

Table 12.1 presents the balances of assets and liabilities recorded at fair value on a recurring basis.

Table 12.1: Fair Value on a Recurring Basis


	March 31, 2024							December 31, 2023
(in millions)	Level 1		Level 2		Level 3	Total		Level 1	Level 2	Level 3	Total
Trading debt securities:
Securities of U.S. Treasury and federal agencies	$	36,228	5,469		—	41,697		32,178	3,027	—	35,205
Collateralized loan obligations	—		868		66	934		—	762	64	826
Corporate debt securities	—		15,219		54	15,273		—	12,859	82	12,941
Federal agency mortgage-backed securities	—		45,274		—	45,274		—	42,944	—	42,944
Non-agency mortgage-backed securities	—		1,392		3	1,395		—	1,477	10	1,487
Other debt securities	—		4,751		—	4,751		—	3,898	1	3,899
Total trading debt securities	36,228		72,973		123	109,324		32,178	64,967	157	97,302
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	42,846		—		—	42,846		45,467	—	—	45,467

Securities of U.S. states and political subdivisions	—		15,623		29	15,652		—	20,009	57	20,066
Federal agency mortgage-backed securities	—		75,150		—	75,150		—	59,578	—	59,578
Non-agency mortgage-backed securities	—		2,449		—	2,449		—	2,748	1	2,749
Collateralized loan obligations	—		1,551		—	1,551		—	1,533	—	1,533
Other debt securities	—		433		164	597		—	892	163	1,055
Total available-for-sale debt securities	42,846		95,206		193	138,245		45,467	84,760	221	130,448
Loans held for sale	—		3,145		322	3,467		—	2,444	448	2,892
Mortgage servicing rights (residential)	—		—		7,249	7,249		—	—	7,468	7,468
Derivative assets (gross):
Interest rate contracts	153		29,636		597	30,386		195	31,434	816	32,445
Commodity contracts	—		3,139		25	3,164		—	2,723	18	2,741
Equity contracts	99		15,316		220	15,635		71	13,041	193	13,305
Foreign exchange contracts	—		17,812		10	17,822		—	24,730	37	24,767
Credit contracts	—		109		5	114		—	74	39	113

Total derivative assets (gross)	252		66,012		857	67,121		266	72,002	1,103	73,371
Equity securities:
Marketable	11,605		21		1	11,627		10,849	9	6	10,864
Nonmarketable	—		9,582		48	9,630		—	8,940	37	8,977
Total equity securities	11,605		9,603		49	21,257		10,849	8,949	43	19,841
Other assets	—		—		168	168		—	—	49	49
Total assets prior to derivative netting	$	90,931	246,939		8,961	346,831		88,760	233,122	9,489	331,371
Derivative netting (1)						(49,468)					(55,148)
Total assets after derivative netting						$	297,363				276,223
Derivative liabilities (gross):
Interest rate contracts	$	(150)	(30,296)		(5,322)	(35,768)		(201)	(32,298)	(4,383)	(36,882)
Commodity contracts	—		(2,491)		(21)	(2,512)		—	(2,719)	(27)	(2,746)
Equity contracts	(46)		(13,597)		(1,819)	(15,462)		(35)	(12,108)	(1,667)	(13,810)
Foreign exchange contracts	—		(18,408)		(21)	(18,429)		—	(27,138)	(19)	(27,157)
Credit contracts	—		(61)		(4)	(65)		—	(39)	(5)	(44)

Total derivative liabilities (gross)	(196)		(64,853)		(7,187)	(72,236)		(236)	(74,302)	(6,101)	(80,639)






Short-sale and other liabilities	(21,476)		(6,437)		(61)	(27,974)		(19,695)	(5,776)	(83)	(25,554)
Interest-bearing deposits	—		(1,285)		—	(1,285)		—	(1,297)	—	(1,297)
Long-term debt	—		(2,865)		—	(2,865)		—	(2,308)	—	(2,308)
Total liabilities prior to derivative netting	$	(21,672)	$	(75,440)	(7,248)	(104,360)		(19,931)	(83,683)	(6,184)	(109,798)
Derivative netting (1)						55,120					62,144
Total liabilities after derivative netting						$	(49,240)				(47,654)

(1)Represents balance sheet netting of derivative asset and liability balances, related cash collateral, and portfolio level counterparty valuation adjustments. See Note 11 (Derivatives) for additional information.

Level 3 Assets and Liabilities Recorded at Fair Value on a Recurring Basis

Table 12.2 presents the changes in Level 3 assets and liabilities measured at fair value on a recurring basis.

Table 12.2: 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, 2024
Trading debt securities	$	157	—	46	(79)	(2)	14	(13)	123	1	(6)
Available-for-sale debt securities	221		(2)	5	—	(3)	—	(28)	193	(2)	(6)
Loans held for sale	448		(2)	71	(19)	(47)	34	(163)	322	(2)	(7)
Mortgage servicing rights (residential) (8)	7,468		25	19	(263)	—	—	—	7,249	251	(7)
Net derivative assets and liabilities:
Interest rate contracts	(3,567)		(1,872)	—	—	714	—	—	(4,725)	(1,199)
Equity contracts	(1,474)		(263)	—	—	155	(45)	28	(1,599)	(128)
Other derivative contracts	43		25	—	(1)	(73)	—	—	(6)	(60)
Total derivative contracts	(4,998)		(2,110)	—	(1)	796	(45)	28	(6,330)	(1,387)	(9)
Equity securities	43		3	8	(5)	—	—	—	49	3	(6)

Other assets and liabilities	(34)		142	—	(1)	—	—	—	107	142	(10)
Quarter ended March 31, 2023
Trading debt securities	$	185	1	76	(112)	(1)	—	(17)	132	1	(6)
Available-for-sale debt securities	276		(20)	69	—	(6)	233	(47)	505	(19)	(6)
Loans held for sale	793		10	73	(49)	(39)	16	(240)	564	10	(7)
Mortgage servicing rights (residential) (8)	9,310		(546)	48	7	—	—	—	8,819	(225)	(7)
Net derivative assets and liabilities:
Interest rate contracts	(2,582)		295	—	—	267	(746)	14	(2,752)	509
Equity contracts	(1,224)		(303)	—	—	285	(38)	2	(1,278)	(2)
Other derivative contracts	9		(55)	2	(1)	37	(2)	—	(10)	(41)
Total derivative contracts	(3,797)		(63)	2	(1)	589	(786)	16	(4,040)	466	(9)
Equity securities	20		(1)	—	—	—	13	—	32	(1)	(6)
Other assets and liabilities	(167)		(26)	—	—	—	—	—	(193)	(26)	(10)

(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. Net gains (losses) included in other comprehensive income for AFS debt securities were $0 and $(16) million for first quarter 2024 and 2023, respectively. Net gains (losses) included in other comprehensive income for other assets and liabilities were $(2) million and $0 for first quarter 2024 and 2023, 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 other comprehensive income. Net unrealized gains (losses) included in other comprehensive income for AFS debt securities were $0 and $(15) million for first quarter 2024 and 2023, respectively. Net unrealized gains (losses) included in other comprehensive income for other assets and liabilities were $(2) million and $0 for first quarter 2024 and 2023, respectively.

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

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

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

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

(10)Included in other noninterest income on our consolidated statement of income.

Table 12.3 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.

The significant unobservable inputs for Level 3 assets inherent in the fair values obtained from third-party vendors are not included in the table, as the specific inputs applied are not

provided by the vendor (for additional information on vendor-developed valuations, see Note 15 (Fair Values of Assets and Liabilities) in our 2023 Form 10-K).

Weighted averages of inputs are calculated using outstanding unpaid principal balance for cash instruments, such as loans and securities, and notional amounts for derivative instruments.

Table 12.3: 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, 2024
Trading and available-for-sale debt securities	$	30		Discounted cash flow	Discount rate	3.0		-	7.1	%	4.0

	123			Market comparable pricing	Comparability adjustment	(26.3)		-	26.4		(11.4)

	163			Market comparable pricing	Multiples	0.9x		-	9.8x		4.9x
Loans held for sale	208			Discounted cash flow	Default rate	0.0		-	30.3	%	1.3
					Discount rate	1.5		-	15.8		9.1
					Loss severity	0.0		-	58.3		16.1
					Prepayment rate	3.2		-	13.4		10.8
	114			Market comparable pricing	Comparability adjustment	(4.1)		-	3.1		(0.2)
Mortgage servicing rights (residential)	7,249			Discounted cash flow	Cost to service per loan (1)	$	52	-	539		108
					Discount rate	9.2		-	15.0	%	9.7
					Prepayment rate (2)	7.1		-	23.8		8.7
Net derivative assets and (liabilities):
Interest rate contracts	(4,644)			Discounted cash flow	Discount rate	3.6		-	5.3		4.7
	(36)			Discounted cash flow	Default rate	0.4		-	1.7		0.6
					Loss severity	50.0		-	50.0		50.0

Interest rate contracts: derivative loan commitments	(45)			Discounted cash flow	Fall-out factor	1.0		-	99.0		27.8
					Initial-value servicing	5.0		-	141.0	bps	45.7
Equity contracts	(987)			Discounted cash flow	Conversion factor	(6.7)		-	0.0	%	(6.3)
					Weighted average life	0.2		-	1.8	yrs	0.8
	(612)			Option model	Correlation factor	(70.0)		-	99.0	%	73.2
					Volatility factor	6.5		-	118.0		38.0
Insignificant Level 3 assets, net of liabilities	150
Total Level 3 assets, net of liabilities	$	1,713	(3)
December 31, 2023
Trading and available-for-sale debt securities	$	60		Discounted cash flow	Discount rate	2.7		-	7.3	%	4.7
	157			Market comparable pricing	Comparability adjustment	(27.1)		-	20.1		(1.9)

	161			Market comparable pricing	Multiples	1.2x		-	10.3x		5.6x
Loans held for sale	359			Discounted cash flow	Default rate	0.0		-	28.0	%	1.1
					Discount rate	1.7		-	15.4		9.8
					Loss severity	0.0		-	58.1		15.7
					Prepayment rate	2.6		-	12.1		10.6
	89			Market comparable pricing	Comparability adjustment	(6.4)		-	1.1		(1.1)
Mortgage servicing rights (residential)	7,468			Discounted cash flow	Cost to service per loan (1)	$	52	-	527		105
					Discount rate	8.9		-	13.9	%	9.4
					Prepayment rate (2)	7.3		-	24.3		8.9
Net derivative assets and (liabilities):
Interest rate contracts	(3,501)			Discounted cash flow	Discount rate	3.6		-	5.4		4.2
	(36)			Discounted cash flow	Default rate	0.4		-	5.0		1.2
					Loss severity	50.0		-	50.0		50.0
					Prepayment rate	22.0		-	22.0		22.0
Interest rate contracts: derivative loan commitments	(30)			Discounted cash flow	Fall-out factor	1.0		-	99.0		30.2
					Initial-value servicing	(5.5)		-	141.0	bps	10.0
Equity contracts	(1,020)			Discounted cash flow	Conversion factor	(6.9)		-	0.0	%	(6.4)
					Weighted average life	0.5		-	2.0	yrs	1.1
	(454)			Option model	Correlation factor	(67.0)		-	99.0	%	73.8
					Volatility factor	6.5		-	147.0		38.6






Insignificant Level 3 assets, net of liabilities	52
Total Level 3 assets, net of liabilities	$	3,305	(3)

(1)The high end of the range of inputs is for servicing modified loans. For non-modified loans, the range is $52 - $164 at March 31, 2024, and $52 - $167 at December 31, 2023.

(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.

(3)Consists of total Level 3 assets of $9.0 billion and $9.5 billion and total Level 3 liabilities of $7.2 billion and $6.2 billion, before netting of derivative balances, at March 31, 2024, and December 31, 2023, respectively.

For additional information on the valuation techniques and significant unobservable inputs used in the valuation of our Level 3 assets and liabilities, including how changes in these inputs affect fair value estimates, see Note 15 (Fair Values of Assets and Liabilities) in our 2023 Form 10-K.

Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis

We may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with

GAAP. These adjustments to fair value usually result from application of LOCOM accounting, write-downs of individual assets, or application of the measurement alternative for certain nonmarketable equity securities.

Table 12.4 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, 2024, and December 31, 2023, and for which a nonrecurring fair value adjustment was recorded during the quarter ended March 31, 2024, and the year ended December 31, 2023.

Table 12.4: Fair Value on a Nonrecurring Basis


	March 31, 2024				December 31, 2023
(in millions)	Level 2		Level 3	Total	Level 2	Level 3	Total
Loans held for sale (1)	$	385	303	688	326	297	623
Loans:
Commercial	692		—	692	1,565	—	1,565
Consumer	43		—	43	97	—	97
Total loans	735		—	735	1,662	—	1,662

Nonmarketable equity securities	395		1,396	1,791	2,086	2,354	4,440
Other assets	2,236		2	2,238	2,451	58	2,509
Total assets at fair value on a nonrecurring basis	$	3,751	1,701	5,452	6,525	2,709	9,234

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

Table 12.5 presents the gains (losses) on certain 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 12.5: Gains (Losses) on Assets with Nonrecurring Fair Value Adjustment


	Quarter ended March 31,
(in millions)	2024		2023
Loans held for sale	$	(7)	(8)
Loans:
Commercial	(226)		(68)
Consumer	(175)		(214)
Total loans	(401)		(282)

Nonmarketable equity securities (1)	(71)		(339)

Other assets (2)	83		20
Total	$	(396)	(609)

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

(2)Includes impairment of operating lease ROU assets, valuation of physical commodities, valuation losses on foreclosed real estate and other collateral owned, and impairment of venture capital and private equity investments in consolidated portfolio companies.

Table 12.6 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 and determined using an internal model. The table is limited to financial instruments that had nonrecurring fair value adjustments during the periods presented. Weighted averages of inputs are calculated using outstanding unpaid principal balance for cash instruments, such as loans, and carrying value prior to the nonrecurring fair value measurement for nonmarketable equity securities and venture capital and private equity investments in consolidated portfolio companies.

Table 12.6: 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, 2024
Loans held for sale	$	303	Discounted cash flow	Default rate	0.1	-	89.9	%	16.8
				Discount rate	3.4	-	14.3		6.0
				Loss severity	5.0	-	58.0		16.1
				Prepayment rate	2.5	-	30.5		11.9




Nonmarketable equity securities	963		Market comparable pricing	Multiples	0.9x	-	9.8x		2.3x

	433		Market comparable pricing	Comparability Adjustment	(85.0)	-	(11.3)	%	(29.7)





Insignificant Level 3 assets	2
Total	$	1,701
December 31, 2023
Loans held for sale	$	297	Discounted cash flow	Default rate	0.1	-	95.8	%	17.5
				Discount rate	3.0	-	13.2		5.8
				Loss severity	5.4	-	58.6		16.6
				Prepayment rate	2.1	-	33.8		11.8




Nonmarketable equity securities	1,721		Market comparable pricing	Multiples	0.7x	-	27.1x		8.4x

	591		Market comparable pricing	Comparability Adjustment	(100.0)	-	(11.5)	%	(42.9)
	42		Discounted cash flow	Discount rate	5.0	-	5.0		5.0




Insignificant Level 3 assets	58
Total	$	2,709

(1)See Note 15 (Fair Values of Assets and Liabilities) in our 2023 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

The fair value option is an irrevocable election, generally only permitted upon initial recognition of financial assets or liabilities, to measure eligible financial instruments at fair value with changes in fair value reflected in earnings. We may elect the fair value option to align the measurement model with how the financial assets or liabilities are managed or to reduce complexity or accounting asymmetry. Following is a discussion of the

portfolios for which we elected the fair value option. For additional information, including the basis for our fair value option elections, see Note 15 (Fair Values of Assets and Liabilities) in our 2023 Form 10-K.

Table 12.7 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 12.7: Fair Value Option


	March 31, 2024				December 31, 2023
(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
Loans held for sale (1)	$	3,467	3,631	(164)	2,892	3,119	(227)
Interest-bearing deposits	(1,285)		(1,287)	2	(1,297)	(1,298)	1
Long-term debt (2)	(2,865)		(3,459)	594	(2,308)	(2,864)	556

(1)Nonaccrual loans and loans 90 days or more past due and still accruing included in LHFS for which we have elected the fair value option were insignificant at March 31, 2024, and December 31, 2023.

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

Table 12.8 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 recorded in net interest income are excluded from the table below.

Table 12.8: Gains (Losses) on Changes in Fair Value Included in Earnings



	2024				2023
(in millions)	Mortgage banking noninterest income		Net gains from trading and securities	Other noninterest income	Mortgage banking noninterest income	Net gains (losses) from trading and securities	Other noninterest income
Quarter ended March 31,




Loans held for sale	$	23	18	—	97	12	(4)
Interest-bearing deposits	—		2	—	—	—	—
Long-term debt	—		41	—	—	(30)	—

For performing loans, instrument-specific credit risk gains or losses are derived principally by determining the change in fair value of the loans due to changes in the observable or implied credit spread. Credit spread is the market yield on the loans less the relevant risk-free benchmark interest rate. For nonperforming loans, we attribute all changes in fair value to instrument-specific credit risk. For LHFS accounted for under the fair value option, instrument-specific credit gains or losses were

insignificant during the first quarter of both 2024 and 2023.

For interest-bearing deposits and long-term debt, instrument-specific credit risk gains or losses represent the impact of changes in fair value due to changes in our credit spread and are generally derived using observable secondary bond market information. These impacts are recorded within the debit valuation adjustments (DVA) in OCI. See Note 21 (Other Comprehensive Income) for additional information.

Disclosures about Fair Value of Financial Instruments

Table 12.9 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 12.9. 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 $536 million and $575 million at March 31, 2024, and December 31, 2023, 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 12.9: Fair Value Estimates for Financial Instruments


			Estimated fair value
(in millions)	Carrying amount		Level 1	Level 2	Level 3	Total
March 31, 2024
Financial assets
Cash and due from banks (1)	$	30,180	30,180	—	—	30,180
Interest-earning deposits with banks (1)	239,467		239,236	231	—	239,467
Federal funds sold and securities purchased under resale agreements (1)	68,751		—	68,751	—	68,751
Held-to-maturity debt securities	258,711		2,173	213,520	2,839	218,532
Loans held for sale	2,006		—	890	1,156	2,046
Loans, net (2)	891,987		—	50,130	806,350	856,480
Nonmarketable equity securities (cost method)	4,865		—	—	4,933	4,933
Total financial assets	$	1,495,967	271,589	333,522	815,278	1,420,389
Financial liabilities
Deposits (3)	$	192,685	—	124,658	67,319	191,977
Short-term borrowings	108,772		—	108,797	—	108,797
Long-term debt (4)	184,880		—	187,288	2,106	189,394
Total financial liabilities	$	486,337	—	420,743	69,425	490,168
December 31, 2023
Financial assets
Cash and due from banks (1)	$	33,026	33,026	—	—	33,026
Interest-earning deposits with banks (1)	204,193		203,960	233	—	204,193
Federal funds sold and securities purchased under resale agreements (1)	80,456		—	80,456	—	80,456
Held-to-maturity debt securities	262,708		2,288	222,209	2,819	227,316
Loans held for sale	2,044		—	848	1,237	2,085
Loans, net (2)	905,764		—	52,127	818,358	870,485
Nonmarketable equity securities (cost method)	5,276		—	—	5,344	5,344
Total financial assets	$	1,493,467	239,274	355,873	827,758	1,422,905
Financial liabilities
Deposits (3)	$	190,970	—	127,738	62,372	190,110
Short-term borrowings	89,340		—	89,340	—	89,340
Long-term debt (4)	205,261		—	205,705	2,028	207,733
Total financial liabilities	$	485,571	—	422,783	64,400	487,183

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

(2)Excludes lease financing with a carrying amount of $16.4 billion and $16.2 billion at March 31, 2024, and December 31, 2023, respectively.

(3)Excludes deposit liabilities with no defined or contractual maturity of $1.2 trillion at both March 31, 2024, and December 31, 2023.

(4)Excludes obligations under finance leases of $19 million at both March 31, 2024, and December 31, 2023.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details