Investments (Tables)

12 Months Ended

Dec. 31, 2023

Investments [Abstract]

Summary of Investment Securities

The following schedules present the amortized cost and estimated fair values of our HTM and AFS securities:

	December 31, 2023
(In millions)	Amortized cost		Gross unrealized gains 1		Gross unrealized losses		Estimated fair value
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities	$	93	$	—	$	6	$	87
Agency guaranteed mortgage-backed securities	9,935		156		50		10,041
Municipal securities	354		—		16		338
Total held-to-maturity	10,382		156		72		10,466
Available-for-sale
U.S. Treasury securities	585		—		93		492
U.S. Government agencies and corporations:
Agency securities	663		—		33		630
Agency guaranteed mortgage-backed securities	8,530		—		1,239		7,291
Small Business Administration loan-backed securities	571		—		25		546
Municipal securities	1,385		—		67		1,318
Other	25		—		2		23
Total available-for-sale	11,759		—		1,459		10,300
Total HTM and AFS investment securities	$	22,141	$	156	$	1,531	$	20,766

1 Gross unrealized gains for the respective AFS security categories were individually less than $1 million.

	December 31, 2022
(In millions)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities	$	100	$	—	$	7	$	93
Agency guaranteed mortgage-backed securities	10,621		165		14		10,772
Municipal securities	405		—		31		374
Total held-to-maturity	11,126		165		52		11,239
Available-for-sale
U.S. Treasury securities	557		—		164		393
U.S. Government agencies and corporations:
Agency securities	782		—		46		736
Agency guaranteed mortgage-backed securities 1	9,652		—		1,285		8,367
Small Business Administration loan-backed securities	740		1		29		712
Municipal securities	1,732		1		99		1,634
Other 1	75		—		2		73
Total available-for-sale	13,538		2		1,625		11,915
Total HTM and AFS investment securities	$	24,664	$	167	$	1,677	$	23,154

1 Gross unrealized gains for these security categories were less than $1 million.

Contractual Maturities Debt Securities

The following schedule presents the amortized cost and weighted average yields of debt securities by contractual maturity of principal payments at December 31, 2023. This schedule does not reflect the duration of the portfolio, which would incorporate amortization, expected prepayments, interest rate resets, and fair value hedges; the effects of which result in measured durations shorter than contractual maturities.

	December 31, 2023
	Total debt securities				Due in one year or less				Due after one year through five years				Due after five years through ten years				Due after ten years
(Dollar amounts in millions)	Amortized cost		Average yield		Amortized cost		Average yield		Amortized cost		Average yield		Amortized cost		Average yield		Amortized cost		Average yield
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities	$	93	3.55	%	$	—	—	%	$	—	—	%	$	—	—	%	$	93	3.55	%
Agency guaranteed mortgage-backed securities	9,935		1.85		—		—		—		—		45		1.94		9,890		1.85
Municipal securities 1	354		3.15		26		2.70		127		3.00		166		3.36		35		3.08
Total held-to-maturity securities	10,382		1.91		26		2.70		127		3.00		211		3.06		10,018		1.87
Available-for-sale
U.S. Treasury securities	585		3.26		184		5.24		—		—		—		—		401		2.35
U.S. Government agencies and corporations:
Agency securities	663		2.63		116		0.93		154		3.16		207		2.73		186		3.15
Agency guaranteed mortgage-backed securities	8,530		2.01		3		1.40		174		1.63		1,459		2.11		6,894		2.00
Small Business Administration loan-backed securities	571		5.54		1		5.33		22		6.33		141		4.40		407		5.89
Municipal securities 1	1,385		2.18		138		2.54		432		2.63		717		1.84		98		2.22
Other debt securities	25		8.77		—		—		—		—		10		9.50		15		8.28
Total available-for-sale securities	11,759		2.32		442		3.24		782		2.61		2,534		2.24		8,001		2.26
Total HTM and AFS investment securities	$	22,141	2.13	%	$	468	3.21	%	$	909	2.67	%	$	2,745	2.30	%	$	18,019	2.04	%

1 The yields on tax-exempt securities are calculated on a tax-equivalent basis.

Debt Securities, Available-for-Sale

The following schedule presents gross unrealized losses for AFS securities and the estimated fair value by length of time the securities have been in an unrealized loss position:

	December 31, 2023
	Less than 12 months				12 months or more				Total
(In millions)	Gross unrealized losses		Estimated fair value		Gross unrealized losses		Estimated fair value		Gross unrealized losses		Estimated fair value
Available-for-sale
U.S. Treasury securities	$	—	$	—	$	93	$	308	$	93	$	308
U.S. Government agencies and corporations:
Agency securities	—		5		33		605		33		610
Agency guaranteed mortgage-backed securities	71		312		1,168		6,902		1,239		7,214
Small Business Administration loan-backed securities	—		4		25		484		25		488
Municipal securities	2		229		65		1,061		67		1,290
Other	—		—		2		13		2		13
Total available-for-sale investment securities	$	73	$	550	$	1,386	$	9,373	$	1,459	$	9,923

	December 31, 2022
	Less than 12 months				12 months or more				Total
(In millions)	Gross unrealized losses		Estimated fair value		Gross unrealized losses		Estimated fair value		Gross unrealized losses		Estimated fair value
Available-for-sale
U.S. Treasury securities	$	94	$	308	$	70	$	85	$	164	$	393
U.S. Government agencies and corporations:
Agency securities	39		634		7		102		46		736
Agency guaranteed mortgage-backed securities	447		4,322		838		4,042		1,285		8,364
Small Business Administration loan-backed securities	8		101		21		524		29		625
Municipal securities	63		1,295		36		256		99		1,551
Other	2		13		—		—		2		13
Total available-for-sale investment securities	$	653	$	6,673	$	972	$	5,009	$	1,625	$	11,682

Gains and Losses, Including OTTI, Recognized in Statement of Income

The following schedule presents securities gains and losses recognized in income:

	2023				2022				2021
(In millions)	Gross gains		Gross losses		Gross gains		Gross losses		Gross gains		Gross losses
Available-for-sale	72		72		—		—		—		—
Trading	13		11		—		—		—		—
Other noninterest-bearing investments	$	27	$	25	$	11	$	26	$	119	$	48
Total	112		108		11		26		119		48
Net gains (losses) 1			$	4			$	(15)			$	71

1 Net gains (losses) are included in “Securities gains (losses), net” on the consolidated statement of income.

Interest Income by Security Type

The following schedule presents interest income by security type:

(In millions)	2023						2022						2021
	Taxable		Nontaxable		Total		Taxable		Nontaxable		Total		Taxable		Nontaxable		Total
Investment securities:
Held-to-maturity	$	236	$	3	$	239	$	42	$	4	$	46	$	10	$	5	$	15
Available-for-sale	291		31		322		411		40		451		256		29		285
Trading	—		2		2		—		15		15		—		11		11
Total securities	$	527	$	36	$	563	$	453	$	59	$	512	$	266	$	45	$	311