Quarterly report [Sections 13 or 15(d)]

Fair Value Option

v3.26.1
Fair Value Option
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Option Fair Value Option
The Corporation elects to account for certain financial instruments under the fair value option. For more information on the primary financial instruments for which the fair value option elections have been made, see Note 21 – Fair Value Option to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K. The following tables provide
information about the fair value carrying amount and the contractual principal outstanding of assets and liabilities accounted for under the fair value option at March 31, 2026 and December 31, 2025, and information about where changes in the fair value of assets and liabilities accounted for under the fair value option are included in the Consolidated Statement of Income for the three months ended March 31, 2026 and 2025.





Fair Value Option Elections
March 31, 2026 December 31, 2025
(Dollars in millions)
 Fair Value
 Carrying
 Amount		 Contractual
 Principal
 Outstanding		 Fair Value
Carrying
Amount Less
 Unpaid Principal		 Fair Value
Carrying
Amount		 Contractual
 Principal
 Outstanding		 Fair Value
Carrying
  Amount Less
 Unpaid Principal
Federal funds sold and securities borrowed or purchased under agreements to resell
 $ 228,013  $ 227,926  $ 87  $ 185,491  $ 185,324  $ 167 
Loans reported as trading account assets (1)
10,954  25,050  (14,096) 10,230  24,475  (14,245)
Trading inventory – other 14,279  n/a n/a 16,791  n/a n/a
Consumer and commercial loans 3,757  3,822  (65) 3,498  3,594  (96)
Loans held-for-sale (1)
5,431  5,951  (520) 2,271  2,868  (597)
Other assets 4,175  n/a n/a 4,054  n/a n/a
Long-term deposits 1,783  1,873  (90) 1,223  1,385  (162)
Federal funds purchased and securities loaned or sold under agreements to repurchase
 227,301  227,323  (22) 223,067  223,087  (20)
Short-term borrowings 11,444  11,450  (6) 8,051  8,046  5 
Unfunded loan commitments 68  n/a n/a 67  n/a n/a
Accrued expenses and other liabilities 2,981  2,957  24  3,767  3,628  139 
Long-term debt 79,274  85,021  (5,747) 72,591  76,534  (3,943)
(1)    A significant portion of the loans reported as trading account assets and LHFS are distressed loans that were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding.
n/a = not applicable
Gains (Losses) Related to Assets and Liabilities Accounted for Under the Fair Value Option
Three Months Ended March 31
2026 2025
(Dollars in millions) Market making
 and similar
 activities		 Other
Income		 Total Market making
 and similar
 activities		 Other
Income		 Total
Federal funds sold and securities borrowed or purchased under agreements to resell $ (89) $ (2) $ (91) $ 134  $ (2) $ 132 
Loans reported as trading account assets 267  1  268  112  —  112 
Trading inventory – other (1)
(2,515) —  (2,515) 1,707  —  1,707 
Consumer and commercial loans 137  (16) 121  18  1  19 
Loans held-for-sale (2)
—  (32) (32) —  60  60 
Short-term borrowings 155  —  155  41  —  41 
Unfunded loan commitments —  (1) (1) —  (9) (9)
Accrued expenses and other liabilities 19  (95) (76) (7) —  (7)
Long-term debt (3)
(1,039) (10) (1,049) (255) (12) (267)
Other (4)
38  (26) 12  (115) (10) (125)
Total $ (3,027) $ (181) $ (3,208) $ 1,635  $ 28  $ 1,663 
(1)    The gains (losses) in market making and similar activities are primarily offset by (losses) gains on trading liabilities that hedge these assets.
(2)    Includes the value of IRLCs on funded loans, including those sold during the period.
(3)    The net gains (losses) in market making and similar activities relate to the embedded derivatives in structured liabilities and are typically offset by (losses) gains on derivatives and securities that hedge these liabilities. For the cumulative impact of changes in the Corporation’s own credit spreads and the amount recognized in accumulated OCI, see Note 12 – Accumulated Other Comprehensive Income (Loss). For more information on how the Corporation’s own credit spread is determined, see Note 20 – Fair Value Measurements to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K.
(4)    Includes gains (losses) on other assets, long-term deposits and federal funds purchased and securities loaned or sold under agreements to repurchase.
Gains (Losses) Related to Borrower-specific Credit Risk for Assets and Liabilities Accounted for Under the Fair Value Option
Three Months Ended March 31
(Dollars in millions) 2026 2025
Loans reported as trading account assets $ (86) $ 160 
Consumer and commercial loans (16) — 
Loans held-for-sale (17) 1 
Unfunded loan commitments (1) (9)