LONG-TERM DEBT AND SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2024

Debt And Equity [Abstract]

LONG-TERM DEBT AND SHAREHOLDERS' EQUITY

LONG-TERM DEBT AND SHAREHOLDERS’ EQUITY

Long-Term Debt

The long-term debt carrying values presented on the consolidated balance sheet represent the par value of the debt, adjusted for any unamortized premium or discount, unamortized debt issuance costs, and basis adjustments for interest rate swaps designated as fair value hedges.

The following schedule presents the components of our long-term debt:

LONG-TERM DEBT

(In millions)	September 30, 2024		December 31, 2023
Subordinated notes 1	$	544	$	538
Finance lease obligations	4		4
Total	$	548	$	542

1 The change in the subordinated notes balance is primarily due to a fair value hedge accounting adjustment. See also Note 7.

Shareholders' Equity

Our common stock is traded on the National Association of Securities Dealers Automated Quotations (“NASDAQ”) Global Select Market. At September 30, 2024, there were 147.7 million shares of $0.001 par value common stock outstanding. Common stock and additional paid-in capital was $1.7 billion at both September 30, 2024 and December 31, 2023.

The AOCI balance was a loss of $2.3 billion at September 30, 2024, and largely reflects a decline in the fair value of fixed-rate AFS securities as a result of changes in interest rates, and includes $1.9 billion ($1.4 billion after tax) of unrealized losses on the securities previously transferred from AFS to HTM. The following schedule presents the changes in AOCI by major component:

(In millions)	Net unrealized gains/(losses) on investment securities		Net unrealized gains/(losses) on derivatives and other		Pension and post-retirement		Total
Nine Months Ended September 30, 2024
Balance at December 31, 2023	$	(2,526)	$	(165)	$	(1)	$	(2,692)
Other comprehensive income before reclassifications, net of tax	137		2		—		139
Amounts reclassified from AOCI, net of tax	147		70		—		217
Other comprehensive income	284		72		—		356
Balance at September 30, 2024	$	(2,242)	$	(93)	$	(1)	$	(2,336)
Income tax expense included in OCI	$	93	$	24	$	—	$	117
Nine Months Ended September 30, 2023
Balance at December 31, 2022	$	(2,800)	$	(311)	$	(1)	$	(3,112)
Other comprehensive income (loss) before reclassifications, net of tax	(170)		19		—		(151)
Amounts reclassified from AOCI, net of tax	159		96		—		255
Other comprehensive income (loss)	(11)		115		—		104
Balance at September 30, 2023	$	(2,811)	$	(196)	$	(1)	$	(3,008)
Income tax expense (benefit) included in OCI (loss)	$	(4)	$	38	$	—	$	34

	Amounts reclassified from AOCI
(In millions)	Three Months Ended September 30,				Nine Months Ended September 30,
AOCI components	2024		2023		2024		2023		Affected line item on statement of income
Net unrealized gains (losses) on investment securities	$	(67)	$	(74)	$	(195)	$	(210)	Securities gains (losses), net
Less: Income tax expense (benefit)	(16)		(18)		(48)		(51)
Total	$	(51)	$	(56)	$	(147)	$	(159)
Net unrealized gains (losses) on derivative instruments	$	(28)	$	(39)	$	(93)	$	(128)	Interest and fees on loans; Interest on short- and long-term borrowings
Less: Income tax expense (benefit)	(7)		(10)		(23)		(32)
Total	$	(21)	$	(29)	$	(70)	$	(96)