
	December 31, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(in millions)
Held-to-maturity
Tax-exempt	$	1,350	$	1	$	(180)	$	1,171
Private label residential MBS	176		—		(38)		138
Total HTM securities	$	1,526	$	1	$	(218)	$	1,309

Available-for-sale debt securities
Residential MBS issued by GSEs and GNMA	$	6,225	$	16	$	(410)	$	5,831
U.S. Treasury securities	4,385		1		(3)		4,383
Private label residential MBS	1,148		—		(201)		947
Tax-exempt	921		—		(76)		845
CLO	570		—		—		570
Commercial MBS issued by GSEs and GNMA	447		1		(11)		437
Corporate debt securities	407		—		(21)		386


Other	75		1		(7)		69
Total AFS debt securities	$	14,178	$	19	$	(729)	$	13,468


	December 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)		Fair Value
	(in millions)
Held-to-maturity
Tax-exempt	$	1,243	$	1	$	(140)	$	1,104
Private label residential MBS	186		—		(39)		147
Total HTM securities	$	1,429	$	1	$	(179)	$	1,251

Available-for-sale debt securities
U.S. Treasury securities	$	4,853	$	1	$	(1)	$	4,853
Residential MBS issued by GSEs and GNMA	2,328		3		(359)		1,972
CLO	1,407		1		(9)		1,399
Private label residential MBS	1,320		1		(204)		1,117
Tax-exempt	925		—		(67)		858
Commercial MBS issued by GSEs and GNMA	531		8		(9)		530
Corporate debt securities	411		—		(44)		367
Other	74		4		(9)		69
Total AFS debt securities	$	11,849	$	18	$	(702)	$	11,165

In addition, the Company held equity securities, which primarily consisted of preferred stock and CRA investments, with a fair value of $117 million and $126 million at December 31, 2024 and 2023, respectively. Unrealized gains (losses) on equity securities of $5.1 million and $(1.3) million for the years ended December 31, 2024 and 2023, respectively, were recognized in earnings as a component of Fair value gain (loss) adjustments, net.


	December 31, 2024
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in millions)





Available-for-sale debt securities
Residential MBS issued by GSEs and GNMA	$	18	$	1,793	$	392	$	1,482	$	410	$	3,275
U.S. Treasury securities	3		2,185		—		—		3		2,185
Private label residential MBS	—		—		201		939		201		939
Tax-exempt	1		32		75		813		76		845
Corporate debt securities (1)	—		—		21		362		21		362
Commercial MBS issued by GSEs and GNMA	10		220		1		16		11		236



Other	2		32		5		25		7		57
Total AFS securities	$	34	$	4,262	$	695	$	3,637	$	729	$	7,899


	December 31, 2023
	Less Than Twelve Months				More Than Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(in millions)



Available-for-sale debt securities
U.S. Treasury securities	$	1	$	2,208	$	—	$	—	$	1	$	2,208
Residential MBS issued by GSEs and GNMA	3		174		356		1,551		359		1,725
Private label residential MBS	—		—		204		1,020		204		1,020
CLO	—		—		9		845		9		845
Tax-exempt	3		67		64		773		67		840
Corporate debt securities (1)	—		—		44		359		44		359
Commercial MBS issued by GSEs and GNMA	—		—		9		53		9		53
Other	—		—		9		54		9		54

Total AFS securities	$	7	$	2,449	$	695	$	4,655	$	702	$	7,104

On a quarterly basis, the Company performs an impairment analysis on its AFS debt securities in an unrealized loss position at the end of the period to determine whether credit losses should be recognized on these securities.

U.S. Treasury securities and commercial and residential MBS are issued by either government agencies or GSEs. These securities are either explicitly or implicitly guaranteed by the U.S. government, and are highly rated by major rating agencies. Further, principal and interest payments on these securities continue to be made on a timely basis.

Qualitative factors used in the Company's credit loss assessment of its securities that are not issued and guaranteed by the U.S. government include consideration of any adverse conditions related to a specific security, industry, or geographic region of its securities, any credit ratings below investment grade, the payment structure of the security and the likelihood of the issuer to be able to make payments that increase in the future, and failure of the issuer to make any scheduled principal or interest payments.

For the Company's corporate debt and tax-exempt securities, the Company also considers various metrics of the issuer including days of cash on hand, the ratio of long-term debt to total assets, the net change in cash between reporting periods, and consideration of any breach in covenant requirements. The Company's corporate debt securities are primarily investment grade, issuers continue to make timely principal and interest payments, and the unrealized losses on these security portfolios primarily relate to changes in interest rates and other market conditions not considered to be credit-related issues. The Company continues to receive timely principal and interest payments on its tax-exempt securities and the majority of these issuers have revenues pledged for payment of debt service prior to payment of other types of expenses.

The Company performed a targeted impairment analysis on its AFS debt securities issued by regional banks held in its corporate debt securities portfolio. The Company considered the issuers' credit ratings, probability of default, and other factors. As a result of the analysis, a $1.0 million recovery of credit losses was recognized during the year ended December 31, 2024, compared to an $18.5 million provision of credit losses during the year ended December 31, 2023. The provision for credit losses for the year ended December 31, 2023 included recognition of a $17.1 million charge-off for one debt security issued by a regional bank that was sold. The Company does not intend to sell and it is more likely than not the Company will not be required to sell the remainder of these regional bank debt securities prior to their anticipated recovery, therefore, no additional credit losses on the Company's remaining portfolio have been recognized during the year ended December 31, 2024.

For the Company's private label residential MBS, which consist of non-agency collateralized mortgage obligations secured by pools of residential mortgage loans, the Company also considers metrics such as securitization risk weight factor, current credit support, whether there were any mortgage principal losses resulting from defaults in payments on the underlying mortgage collateral, and the credit default rate over the last twelve months. These securities primarily carry investment grade credit ratings, principal and interest payments on these securities continue to be made on a timely basis, and credit support for these securities is considered adequate.

The Company's CLO portfolio consists of highly rated securitization tranches, containing pools of medium to large-sized corporate, high yield loans. These are variable rate securities that have an investment grade rating of Single-A or better. Unrealized losses on these securities are primarily a function of the differential from the offer price and the valuation mid-market price as well as changes in interest rates.

Unrealized losses on the Company's other securities portfolio relate to taxable municipal and trust preferred securities. The Company is continuing to receive timely principal and interest payments on its taxable municipal securities, these securities continue to be highly rated, and the number of days of cash on hand is strong. The Company's trust preferred securities are investment grade and the issuers continue to make timely principal and interest payments.


	Year Ended December 31, 2024
	Balance, December 31, 2023		Recovery of Credit Losses		Charge-offs		Recoveries		Balance, December 31, 2024
	(in millions)
Available-for-sale securities
Corporate debt securities	$	1.4	$	(1.0)	$	—	$	—	$	0.4


	Year Ended December 31, 2023
	Balance, December 31, 2022		Provision for Credit Losses		Charge-offs		Recoveries		Balance December 31, 2023
	(in millions)
Available-for-sale securities
Corporate debt securities	$	—	$	18.5	$	(17.1)	$	—	$	1.4


	Year Ended December 31, 2024
	Balance, December 31, 2023		Provision for Credit Losses		Charge-offs		Recoveries		Balance, December 31, 2024
	(in millions)
Held-to-maturity debt securities
Tax-exempt	$	7.8	$	8.6	$	—	$	—	$	16.4


	Year Ended December 31, 2023
	Balance, December 31, 2022		Provision for Credit Losses		Charge-offs		Recoveries		Balance December 31, 2023
	(in millions)
Held-to-maturity debt securities
Tax-exempt	$	5.2	$	2.6	$	—	$	—	$	7.8

The following tables summarize the carrying amount of the Company’s investment ratings position as of December 31, 2024 and 2023, which are updated quarterly and used to monitor the credit quality of the Company's securities:


	December 31, 2024
	AAA		Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in millions)
Held-to-maturity
Tax-exempt	$	—	$	—	$	—	$	—	$	—	$	—	$	1,350	$	1,350
Private label residential MBS	—		—		—		—		—		—		176		176
Total HTM securities (1)	$	—	$	—	$	—	$	—	$	—	$	—	$	1,526	$	1,526

Available-for-sale debt securities
Residential MBS issued by GSEs and GNMA	$	—	$	5,831	$	—	$	—	$	—	$	—	$	—	$	5,831
U.S. Treasury securities	—		4,383		—		—		—		—		—		4,383
Private label residential MBS	921		—		26		—		—		—		—		947
Tax-exempt	9		19		348		375		—		—		94		845
CLO	50		—		465		55		—		—		—		570
Commercial MBS issued by GSEs and GNMA	—		437		—		—		—		—		—		437
Corporate debt securities	—		—		—		78		226		82		—		386


Other	—		1		8		2		40		1		17		69
Total AFS securities (1)	$	980	$	10,671	$	847	$	510	$	266	$	83	$	111	$	13,468

Equity securities
Preferred stock	$	—	$	—	$	—	$	—	$	50	$	29	$	12	$	91
CRA investments	—		26		—		—		—		—		—		26

Total equity securities (1)	$	—	$	26	$	—	$	—	$	50	$	29	$	12	$	117


	December 31, 2023
	AAA		Split-rated AAA/AA+		AA+ to AA-		A+ to A-		BBB+ to BBB-		BB+ and below		Unrated		Totals
	(in millions)
Held-to-maturity
Tax-exempt	$	—	$	—	$	—	$	—	$	—	$	—	$	1,243	$	1,243
Private label residential MBS	—		—		—		—		—		—		186		186
Total HTM securities (1)	$	—	$	—	$	—	$	—	$	—	$	—	$	1,429	$	1,429

Available-for-sale debt securities
U.S. Treasury securities	$	—	$	4,853	$	—	$	—	$	—	$	—	$	—	$	4,853
Residential MBS issued by GSEs and GNMA	—		1,972		—		—		—		—		—		1,972
CLO	79		—		1,265		55		—		—		—		1,399
Private label residential MBS	1,090		—		26		—		—		1		—		1,117
Tax-exempt	9		16		361		386		—		—		86		858
Commercial MBS issued by GSEs and GNMA	—		530		—		—		—		—		—		530
Corporate debt securities	—		—		—		76		211		80		—		367
Other	—		—		9		11		28		4		17		69


Total AFS securities (1)	$	1,178	$	7,371	$	1,661	$	528	$	239	$	85	$	103	$	11,165

Equity securities
Preferred stock	$	—	$	—	$	—	$	—	$	54	$	35	$	11	$	100
CRA investments	—		26		—		—		—		—		—		26

Total equity securities (1)	$	—	$	26	$	—	$	—	$	54	$	35	$	11	$	126

A security is considered to be past due once it is 30 days contractually past due under the terms of the agreement. As of December 31, 2024, the Company did not have a significant amount of investment securities that were past due or on nonaccrual status.

The amortized cost and fair value of the Company's debt securities as of December 31, 2024, by contractual maturities, are shown below. MBS are shown separately as individual MBS are comprised of pools of loans with varying maturities. Therefore, these securities are listed separately in the maturity summary.


	December 31, 2024
	Amortized Cost		Estimated Fair Value
	(in millions)
Held-to-maturity
Due in one year or less	$	35	$	35
After one year through five years	9		9
After five years through ten years	117		105
After ten years	1,189		1,022
Mortgage-backed securities	176		138
Total HTM securities	$	1,526	$	1,309

Available-for-sale
Due in one year or less	$	4,404	$	4,402
After one year through five years	172		167
After five years through ten years	548		531
After ten years	1,234		1,153
Mortgage-backed securities	7,820		7,215
Total AFS securities	$	14,178	$	13,468


	Year Ended December 31,
	2024		2023		2022
	(in millions)
Available-for-sale securities
Gross gains	$	19.6	$	4.0	$	7.5
Gross losses	(2.2)		(44.4)		(0.2)
Net gain (loss) on AFS securities	$	17.4	$	(40.4)	$	7.3

Equity securities
Gross gains	$	—	$	—	$	—
Gross losses	—		(0.4)		(0.5)
Net loss on equity securities	$	—	$	(0.4)	$	(0.5)

During the years ended December 31, 2024, 2023, and 2022, the Company sold AFS securities with a carrying value of $4.5 billion, $1.6 billion and $170 million, respectively, and recognized a net gain (loss) of $17.4 million, $(40.4) million, and $7.3 million, respectively. During the year ended December 31, 2024, U.S. Treasury securities and MBS were sold to secure gains, while CLOs were sold as part of the Company's efforts to shift the investment portfolio mix toward high quality liquid assets. During the year ended December 31, 2023, losses on AFS securities sales related primarily to sales of CLO securities that were executed as part of the Company's balance sheet repositioning strategy. Lastly, during the year ended December 31, 2022, AFS securities sales were largely related to the Company's interest rate management actions to secure gains on tax-exempt municipal securities that were purchased at a discount at the onset of the pandemic.