Investment securities

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

3. Investment securities

The amortized cost and estimated fair value of investment securities were as follows:


(Dollars in millions)	Amortized Cost (a)		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
September 30, 2025
Investment securities available for sale:
U.S. Treasury	$	6,581	$	42	$	3	$	6,620
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	4,789		74		2		4,861
Residential	11,628		120		68		11,680
Other	2		—		—		2
	23,000		236		73		23,163
Investment securities held to maturity:
U.S. Treasury	444		—		6		438
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	2,020		—		77		1,943
Residential	8,048		7		662		7,393
Privately issued	33		12		—		45
State and political subdivisions	2,165		—		61		2,104
Other	1		—		—		1
	12,711		19		806		11,924
Total debt securities	$	35,711	$	255	$	879	$	35,087
Equity and other securities:
Readily marketable equity — at fair value	$	257	$	3	$	2	$	258
Other — at cost	732		—		—		732
Total equity and other securities	$	989	$	3	$	2	$	990

December 31, 2024
Investment securities available for sale:
U.S. Treasury	$	7,945	$	13	$	27	$	7,931
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	3,739		8		45		3,702
Residential	7,368		13		167		7,214
Other	2		—		—		2
	19,054		34		239		18,849
Investment securities held to maturity:
U.S. Treasury	1,015		—		14		1,001
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	2,034		—		157		1,877
Residential	8,773		—		961		7,812
Privately issued	37		9		—		46
State and political subdivisions	2,335		—		117		2,218
Other	1		—		—		1
	14,195		9		1,249		12,955
Total debt securities	$	33,249	$	43	$	1,488	$	31,804
Equity and other securities:
Readily marketable equity — at fair value	$	235	$	3	$	3	$	235
Other — at cost	772		—		—		772
Total equity and other securities	$	1,007	$	3	$	3	$	1,007

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(a)Amortized cost balances of debt securities exclude accrued interest receivable of $176 million at each of September 30, 2025 and December 31, 2024, which is included in Accrued interest and other assets in the Company's Consolidated Balance Sheet.

A summary of debt investment securities that as of September 30, 2025 and December 31, 2024 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:


	Less Than 12 Months				12 Months or More
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
September 30, 2025
Investment securities available for sale:
U.S. Treasury	$	—	$	—	$	247	$	3
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	135		—		323		2
Residential	458		2		1,442		66
Other	1		—		—		—
	594		2		2,012		71
Investment securities held to maturity:
U.S. Treasury	—		—		438		6
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	—		—		1,943		77
Residential	83		1		6,513		661
Privately issued	2		—		—		—
State and political subdivisions	9		—		1,916		61
	94		1		10,810		805
Total	$	688	$	3	$	12,822	$	876

December 31, 2024
Investment securities available for sale:
U.S. Treasury	$	1,971	$	9	$	2,554	$	18
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	2,566		45		64		—
Residential	4,429		53		1,623		114
Other	—		—		2		—
	8,966		107		4,243		132
Investment securities held to maturity:
U.S. Treasury	50		—		951		14
Mortgage-backed securities:
Government issued or guaranteed:
Commercial	—		—		1,877		157
Residential	996		19		6,811		942

State and political subdivisions	39		1		2,131		116
	1,085		20		11,770		1,229
Total	$	10,051	$	127	$	16,013	$	1,361

The Company owned 3,158 individual debt securities with aggregate gross unrealized losses of $879 million at September 30, 2025. Based on a review of each of the securities in the investment securities portfolio at September 30, 2025, the Company concluded that it expected to recover the amortized cost basis of its investment. As of September 30, 2025, the Company does not intend to sell nor is it anticipated that it would be required to sell any of its impaired investment securities at a loss. At September 30, 2025, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $732 million of cost method equity securities.

The Company estimated no material allowance for credit losses for its investment securities classified as held to maturity at September 30, 2025 and December 31, 2024.

At September 30, 2025, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:


(Dollars in millions)	Amortized Cost		Estimated Fair Value
Debt securities available for sale:
Due in one year or less	$	2,634	$	2,639
Due after one year through five years	3,949		3,983
Due after five years through ten years	—		—
Due after ten years	—		—
	6,583		6,622
Mortgage-backed securities	16,417		16,541
	$	23,000	$	23,163
Debt securities held to maturity:
Due in one year or less	$	71	$	71
Due after one year through five years	679		672
Due after five years through ten years	1,355		1,336
Due after ten years	505		464
	2,610		2,543
Mortgage-backed securities	10,101		9,381
	$	12,711	$	11,924

At September 30, 2025 and December 31, 2024, investment securities with carrying values of $6.0 billion (including $65 million related to repurchase transactions) and $6.2 billion (including $71 million related to repurchase transactions), respectively, were pledged to secure outstanding borrowings, lines of credit and governmental deposits.