XML 21 R11.htm IDEA: XBRL DOCUMENT v3.25.1
Investment Securities
 3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
 NOTE 3  Investment Securities
The Company’s held-to-maturity investment securities are carried at historical cost, adjusted for amortization of premiums and accretion of discounts. The Company’s available-for-sale investment securities are carried at fair value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders’ equity.
The amortized cost, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities were as follows:
 March 31, 2025December 31, 2024
(Dollars in Millions)Amortized
Cost 		Unrealized
Gains		Unrealized
Losses 		Fair ValueAmortized
Cost		Unrealized
Gains		Unrealized
Losses 		Fair Value
Held-to-Maturity
U.S. Treasury and agencies$1,297 $— $(13)$1,284 $1,296 $— $(21)$1,275 
Mortgage-backed securities
Residential agency74,773 12 (10,912)63,873 75,392 3 (12,317)63,078 
Commercial agency1,699 5 (4)1,700 1,702 — (27)1,675 
Other239 3 — 242 244 3 — 247 
Total held-to-maturity$78,008 $20 $(10,929)$67,099 $78,634 $6 $(12,365)$66,275 
Available-for-Sale
U.S. Treasury and agencies$30,387 $11 $(1,782)$28,616 $30,467 $1 $(2,081)$28,387 
Mortgage-backed securities
Residential agency35,535 51 (1,912)33,674 35,558 13 (2,290)33,281 
Commercial
Agency8,647 — (1,144)7,503 8,673 — (1,322)7,351 
Non-agency7 — — 7 7 — (1)6 
Asset-backed securities7,323 15 (6)7,332 7,136 30 (1)7,165 
Obligations of state and political subdivisions10,650 9 (1,333)9,326 10,690 13 (1,151)9,552 
Other314 2 — 316 249 1 — 250 
Total available-for-sale, excluding portfolio level basis adjustments92,863 88 (6,177)86,774 92,780 58 (6,846)85,992 
Portfolio level basis adjustments(a)
204 — (204)— 13 — (13)— 
Total available-for-sale$93,067 $88 $(6,381)$86,774 $92,793 $58 $(6,859)$85,992 
(a)Represents fair value hedge basis adjustments related to active portfolio layer method hedges of available-for-sale investment securities, which are not allocated to individual securities in the portfolio. For additional information, refer to Note 12.
Investment securities with a fair value of $16.4 billion at March 31, 2025, and $18.8 billion at December 31, 2024, were pledged to secure public, private and trust deposits, repurchase agreements and for other purposes required by contractual obligation or law. Included in these amounts were securities where the Company and certain counterparties have agreements granting the counterparties the right to sell or pledge the securities. Investment securities securing these types of arrangements had a fair value of $543 million at March 31, 2025, and $320 million at December 31, 2024.
The following table provides information about the amount of interest income from taxable and non-taxable investment securities:
Three Months Ended
March 31
(Dollars in Millions)20252024
Taxable$1,234 $1,099 
Non-taxable74 76 
Total interest income from investment securities$1,308 $1,175 
The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities:
Three Months Ended
March 31
(Dollars in Millions)20252024
Realized gains$7 $3 
Realized losses(7)(1)
Net realized gains (losses)$— $2 
Income tax (benefit) on net realized gains (losses)$— $1 
The Company conducts a regular assessment of its available-for-sale investment securities with unrealized losses to determine whether all or some portion of a security’s unrealized loss is related to credit and an allowance for credit losses is necessary. If the Company intends to sell or it is more likely than not the Company will be required to sell an investment security, the amortized cost of the security is written down to fair value. When evaluating credit losses, the Company considers various factors such as the nature of the investment security, the credit ratings or financial condition of the issuer, the extent of the unrealized loss, expected cash flows of underlying collateral, the existence of any government or agency guarantees, and market conditions. The Company measures the allowance for credit losses using market information where available and discounting the cash flows at the original effective rate of the investment security. The allowance for credit losses is adjusted each period through earnings and can be subsequently recovered. The allowance for credit losses on the Company’s available-for-sale investment securities was immaterial at March 31, 2025 and December 31, 2024.
At March 31, 2025, certain investment securities had a fair value below amortized cost. The following table shows the gross unrealized losses excluding portfolio level basis adjustments and fair value of the Company’s available-for-sale investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at March 31, 2025:
Less Than 12 Months 12 Months or Greater Total
(Dollars in Millions)Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
Fair Value
Unrealized
Losses
U.S. Treasury and agencies$6,408 $(5)$17,376 $(1,777)$23,784 $(1,782)
Mortgage-backed securities
Residential agency11,691 (131)15,511 (1,781)27,202 (1,912)
Commercial
     Agency— — 7,503 (1,144)7,503 (1,144)
Non-agency— — 7 — 7 — 
Asset-backed securities1,719 (4)983 (2)2,702 (6)
Obligations of state and political subdivisions1,363 (29)7,632 (1,304)8,995 (1,333)
Other— — 4 — 4 — 
Total investment securities$21,181 $(169)$49,016 $(6,008)$70,197 $(6,177)
These unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase of these available-for-sale investment securities. U.S. Treasury and agencies securities and agency mortgage-backed securities are issued, guaranteed or otherwise supported by the United States government. The Company’s obligations of state and political subdivisions are generally high grade. Accordingly, the Company does not consider these unrealized losses to be credit-related and an allowance for credit losses is not necessary. In general, the issuers of the investment securities are contractually prohibited from prepayment at less than par, and the Company did not pay significant purchase premiums for these investment securities. At March 31, 2025, the Company had no plans to sell investment securities with unrealized losses, and believes it is more likely than not it would not be required to sell such investment securities before recovery of their amortized cost.
During the three months ended March 31, 2025 and 2024, the Company did not purchase any investment securities that had more-than-insignificant credit deterioration.
Predominately all of the Company’s held-to-maturity investment securities are U.S. Treasury and agencies securities and highly rated agency mortgage-backed securities that are guaranteed or otherwise supported by the United States government and have no history of credit losses. Accordingly the Company does not expect to incur any credit losses on held-to-maturity investment securities and has no allowance for credit losses recorded for these securities.
The following table provides information about the amortized cost, fair value and yield by maturity date of the investment securities outstanding at March 31, 2025:
(Dollars in Millions)
Amortized
Cost
Fair Value
Weighted- Average
Maturity in Years
Weighted-Average Yield(e)
Held-to-Maturity
U.S. Treasury and agencies
Maturing in one year or less$650 $649 0.12.71 %
Maturing after one year through five years647 635 2.13.00 
Maturing after five years through ten years— — — — 
Maturing after ten years— — — — 
Total$1,297 $1,284 1.12.85 %
Mortgage-backed securities(a)
Maturing in one year or less$144 $144 0.84.70 %
Maturing after one year through five years2,010 2,017 3.54.47 
Maturing after five years through ten years74,273 63,367 8.72.16 
Maturing after ten years45 45 11.44.23 
Total$76,472 $65,573 8.52.22 %
Other
Maturing in one year or less$— $— $— — %
Maturing after one year through five years239 242 2.22.68 
Maturing after five years through ten years— — — — 
Maturing after ten years— — — — 
Total$239 $242 2.22.68 %
Total held-to-maturity(b)
$78,008 $67,099 8.42.23 %
Available-for-Sale
U.S. Treasury and agencies
Maturing in one year or less$11 $11 0.24.44 %
Maturing after one year through five years14,787 14,198 3.02.57 
Maturing after five years through ten years15,077 14,018 6.33.02 
Maturing after ten years512 389 10.51.78 
Total$30,387 $28,616 4.82.78 %
Mortgage-backed securities(a)
Maturing in one year or less$23 $23 0.51.89 %
Maturing after one year through five years7,627 7,161 4.02.73 
Maturing after five years through ten years36,268 33,742 7.33.98 
Maturing after ten years271 258 11.35.39 
Total$44,189 $41,184 6.83.77 %
Asset-backed securities(a)
Maturing in one year or less$10 $10 0.47.40 %
Maturing after one year through five years3,159 3,169 1.74.83 
Maturing after five years through ten years4,154 4,153 5.85.76 
Maturing after ten years— — — — 
Total$7,323 $7,332 4.05.36 %
Obligations of state and political subdivisions(c)(d)
Maturing in one year or less$118 $117 0.45.07 %
Maturing after one year through five years928 922 2.64.70 
Maturing after five years through ten years1,200 1,125 7.63.68 
Maturing after ten years8,404 7,162 14.73.31 
Total$10,650 $9,326 12.73.49 %
Other
Maturing in one year or less$109 $109 0.74.87 %
Maturing after one year through five years205 207 2.44.65 
Maturing after five years through ten years— — — — 
Maturing after ten years— — — — 
Total$314 $316 1.84.72 %
Total available-for-sale(b)(f)
$92,863 $86,774 6.63.54 %
(a)Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments.
(b)The weighted-average maturity of total held-to-maturity investment securities was 8.7 years at December 31, 2024, with a corresponding weighted-average yield of 2.20 percent. The weighted-average maturity of total available-for-sale investment securities was 6.8 years at December 31, 2024, with a corresponding weighted-average yield of 3.67 percent.
(c)Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount.
(d)Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par.
(e)Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to-maturity.
(f)Amortized cost excludes portfolio level basis adjustments of $204 million.