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Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Schedule of Investment Portfolio The cost, fair value, and gross unrealized gains and losses on available-for-sale and held-to-maturity securities were as follows.
June 30, 2024December 31, 2023
Amortized costGross unrealized
Fair value
Amortized costGross unrealized
Fair value
($ in millions)gainslossesgainslosses
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies$2,274 $— $(227)$2,047 $2,284 $— $(209)$2,075 
U.S. States and political subdivisions704 — (82)622 727 1 (70)658 
Foreign government183 1 (9)175 190 1 (8)183 
Agency mortgage-backed residential (a)17,491 — (3,155)14,336 18,122 1 (2,739)15,384 
Mortgage-backed residential259 — (45)214 268 — (43)225 
Agency mortgage-backed commercial (a)4,650 1 (839)3,812 4,539 2 (783)3,758 
Asset-backed266 — (6)260 344 — (12)332 
Corporate debt1,878 2 (146)1,734 1,942 4 (146)1,800 
Total available-for-sale securities (b) (c) (d) (e) (f)$27,705 $4 $(4,509)$23,200 $28,416 $9 $(4,010)$24,415 
Held-to-maturity securities
Debt securities
Agency mortgage-backed residential$966 $— $(196)$770 $999 $— $(173)$826 
Mortgage-backed residential3,472 150 — 3,622 3,603 221 — 3,824 
Asset-backed retained notes110 1 — 111 78 1 — 79 
Total held-to-maturity securities (d) (f) (g)$4,548 $151 $(196)$4,503 $4,680 $222 $(173)$4,729 
(a)Fair value includes basis adjustments for securities in closed portfolios with active hedges under the portfolio layer method. This includes a $94 million liability and a $46 million asset for agency mortgage-backed residential securities at June 30, 2024, and December 31, 2023, respectively, and a $42 million liability and a $29 million asset for agency mortgage-backed commercial securities at June 30, 2024, and December 31, 2023. These basis adjustments would be allocated to the amortized cost of specific securities within the pool if the hedge was dedesignated. Refer to Note 19 for additional information.
(b)Certain available-for-sale securities are included in fair value hedging relationships. Refer to Note 19 for additional information.
(c)Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $12 million at both June 30, 2024, and December 31, 2023.
(d)Investment securities with a fair value of $5.2 billion and $4.7 billion were pledged as collateral at June 30, 2024, and December 31, 2023, respectively. This primarily included $3.1 billion and $3.3 billion pledged to secure advances from the FHLB at June 30, 2024, and December 31, 2023, respectively. This also included securities pledged for other purposes as required by contractual obligations or law, under which agreements we granted the counterparty the right to sell or pledge $2.1 billion and $1.4 billion of the underlying available-for-sale securities at June 30, 2024, and December 31, 2023, respectively.
(e)Totals do not include accrued interest receivable, which was $74 million and $76 million at June 30, 2024, and December 31, 2023, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.
(f)There was no allowance for credit losses recorded at both June 30, 2024, or December 31, 2023, as management determined that there were no expected credit losses in our portfolio of available-for-sale and held-to-maturity securities.
(g)Totals do not include accrued interest receivable, which was $13 million at both June 30, 2024, and December 31, 2023. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.
Schedule of Investments Classified by Contractual Maturity Date
The maturity distribution of debt securities outstanding is summarized in the following tables based upon contractual maturities. Call or prepayment options may cause actual maturities to differ from contractual maturities.
TotalDue in one year or lessDue after one year through five yearsDue after five years through ten yearsDue after ten years
($ in millions)AmountYieldAmountYieldAmountYieldAmountYieldAmountYield
June 30, 2024
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies$2,047 1.5 %$256 0.8 %$1,065 1.5 %$726 1.9 %$— — %
U.S. States and political subdivisions622 3.2 5 3.9 60 3.0 104 3.8 453 3.1 
Foreign government175 2.5 35 1.9 53 2.5 87 2.7 — — 
Agency mortgage-backed residential (b)14,336 2.6 — — 8 1.9 28 2.5 14,300 2.6 
Mortgage-backed residential214 2.7 — — — — — — 214 2.7 
Agency mortgage-backed commercial (b)3,812 2.4 — — 266 3.7 1,609 2.4 1,937 2.2 
Asset-backed260 1.7 — — 255 1.7 5 3.9 — — 
Corporate debt1,734 2.9 250 2.9 818 2.6 648 3.1 18 5.6 
Total available-for-sale securities$23,200 2.5 $546 1.8 $2,525 2.2 $3,207 2.5 $16,922 2.5 
Amortized cost of available-for-sale securities
$27,705 $556 $2,705 $3,704 $20,740 
Amortized cost of held-to-maturity securities
Agency mortgage-backed residential$966 2.8 %$— — %$— — %$— — %$966 2.8 %
Mortgage-backed residential3,472 2.8 — — — — 11 3.0 3,461 2.8 
Asset-backed retained notes
110 5.4 4 5.5 72 5.4 34 5.5 — — 
Total held-to-maturity securities
$4,548 2.9 $4 5.5 $72 5.4 $45 5.0 $4,427 2.8 
December 31, 2023
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies$2,075 1.6 %$215 0.9 %$1,120 1.5 %$740 1.9 %$— — %
U.S. States and political subdivisions658 3.2 4 3.4 55 2.7 110 3.6 489 3.1 
Foreign government183 2.3 20 1.3 82 2.4 81 2.5 — — 
Agency mortgage-backed residential (b)15,384 2.6 — — 10 1.9 32 2.5 15,342 2.6 
Mortgage-backed residential225 2.7 — — — — — — 225 2.7 
Agency mortgage-backed commercial (b)3,758 2.3 — — 163 3.8 1,641 2.4 1,954 2.1 
Asset-backed332 1.7 — — 327 1.7 4 3.9 1 2.7 
Corporate debt1,800 2.7 210 2.4 915 2.6 671 2.9 4 6.2 
Total available-for-sale securities$24,415 2.5 $449 1.7 $2,672 2.1 $3,279 2.4 $18,015 2.5 
Amortized cost of available-for-sale securities
$28,416 $461 $2,844 $3,746 $21,365 
Amortized cost of held-to-maturity securities
Agency mortgage-backed residential
$999 2.8 %$— — %$— — %$— — %$999 2.8 %
Mortgage-backed residential3,603 2.8 — — — — 12 3.0 3,591 2.8 
Asset-backed retained notes
78 5.6 1 5.6 41 5.6 2 6.0 34 5.6 
Total held-to-maturity securities
$4,680 2.8 $1 5.6 $41 5.6 $14 3.4 $4,624 2.8 
(a)Yield is calculated using the effective yield of each security at the end of the period, weighted based on the market value. The effective yield considers the contractual coupon and amortized cost, and excludes expected capital gains and losses.
(b)Fair value includes basis adjustments for securities in closed portfolios with active hedges under the portfolio layer method. This includes a $94 million liability and a $46 million asset for agency mortgage-backed residential securities at June 30, 2024, and December 31, 2023, respectively, and a $42 million liability and a $29 million asset for agency mortgage-backed commercial securities at June 30, 2024, and December 31, 2023. These basis adjustments would be allocated to the amortized cost of specific securities within the pool if the hedge was dedesignated. Refer to Note 19 for additional information.
Schedule of Investment Income
The following table presents interest and dividends on investment securities.
Three months ended June 30,Six months ended June 30,
($ in millions)2024202320242023
Taxable interest$244 $229 $489 $446 
Taxable dividends6 4 10 7 
Interest and dividends exempt from U.S. federal income tax5 5 11 11 
Interest and dividends on investment securities$255 $238 $510 $464 
Schedule of Realized Gain (Loss)
The following table presents gross gains and losses realized upon the sales of available-for-sale securities, and net gains or losses on equity securities held during the period.
Three months ended June 30,Six months ended June 30,
($ in millions)2024202320242023
Available-for-sale securities
Gross realized gains$— $— $1 $5 
Net realized gain on available-for-sale securities— — 1 5 
Net realized gain on equity securities21 1 38 6 
Net unrealized (loss) gain on equity securities(28)25 (17)89 
Other (loss) gain on investments, net$(7)$26 $22 $100 
Schedule of Held to Maturity Debt Securities by Credit Quality
The following table presents the credit quality of our held-to-maturity securities, based on the latest available information as of June 30, 2024, and December 31, 2023. The credit ratings are sourced from nationally recognized statistical rating organizations, which include S&P, Moody’s, and Fitch. The ratings presented are a composite of the ratings sourced from the agencies or, if the ratings cannot be sourced from the agencies, are based on the asset type of the particular security. All our held-to-maturity securities were current in their payment of principal and interest as of both June 30, 2024, and December 31, 2023. We have not recorded any interest income reversals on our held-to-maturity securities during the six months ended June 30, 2024, or 2023.
($ in millions)AAAAAABBBTotal (a)
June 30, 2024
Debt securities
Agency mortgage-backed residential$— $966 $— $— $966 
Mortgage-backed residential3,375 85 12 — 3,472 
Asset-backed retained notes102 3 3 2 110 
Total held-to-maturity securities$3,477 $1,054 $15 $2 $4,548 
December 31, 2023
Debt securities
Agency mortgage-backed residential$— $999 $— $— $999 
Mortgage-backed residential3,497 93 13 — 3,603 
Asset-backed retained notes73 2 2 1 78 
Total held-to-maturity securities$3,570 $1,094 $15 $1 $4,680 
(a)Rating agencies indicate that they base their ratings on many quantitative and qualitative factors, which may include capital adequacy, liquidity, asset quality, business mix, level and quality of earnings, and the current operating, legislative, and regulatory environment. A credit rating is not a recommendation to buy, sell, or hold securities, and the ratings are subject to revision or withdrawal at any time by the assigning rating agency.
Schedule of Available-for-Sale Securities in Unrealized Loss Position
The following table summarizes available-for-sale securities in an unrealized loss position, which we evaluated to determine if a credit loss exists requiring the recognition of an allowance for credit losses. For additional information on our methodology, refer to Note 1 to the Consolidated Financial Statements in our 2023 Annual Report on Form 10-K. As of June 30, 2024, and December 31, 2023, we did not have the intent to sell the available-for-sale securities with an unrealized loss position and we do not believe it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. We have not recorded any interest income reversals on our available-for-sale securities during the six months ended June 30, 2024, or 2023.
June 30, 2024December 31, 2023
Less than 12 months12 months or longerLess than 12 months12 months or longer
($ in millions)
Fair value
Unrealized loss
Fair value
Unrealized loss
Fair valueUnrealized lossFair valueUnrealized loss
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies$— $— $2,047 $(227)$— $— $2,075 $(209)
U.S. States and political subdivisions65 (1)524 (81)70 — 501 (70)
Foreign government16 — 134 (9)16 — 134 (8)
Agency mortgage-backed residential (a)92 (1)14,231 (3,154)300 (5)15,015 (2,734)
Mortgage-backed residential— — 214 (45)— — 225 (43)
Agency mortgage-backed commercial (a)138 (2)3,523 (837)153 (4)3,472 (779)
Asset-backed— — 252 (6)18 — 302 (12)
Corporate debt88 (2)1,501 (144)33 (1)1,607 (145)
Total available-for-sale securities
$399 $(6)$22,426 $(4,503)$590 $(10)$23,331 $(4,000)
(a)Includes basis adjustments for certain securities that are included in closed portfolios with active hedges under the portfolio layer method at June 30, 2024, and December 31, 2023. The basis adjustments would be allocated to the amortized cost of specific securities within the pool if the hedge was dedesignated. Refer to Note 19 for additional information.