Investment Securities (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

The cost, fair value, and gross unrealized gains and losses on available-for-sale and held-to-maturity securities were as follows.



	September 30, 2024								December 31, 2023
	Amortized cost		Gross unrealized				Fair value		Amortized cost		Gross unrealized				Fair value
($ in millions)			gains		losses						gains		losses
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	$	2,270	$	—	$	(155)	$	2,115	$	2,284	$	—	$	(209)	$	2,075
U.S. States and political subdivisions	718		1		(72)		647		727		1		(70)		658
Foreign government	203		2		(5)		200		190		1		(8)		183
Agency mortgage-backed residential (a)	17,094		1		(2,398)		14,697		18,122		1		(2,739)		15,384
Mortgage-backed residential	254		—		(35)		219		268		—		(43)		225
Agency mortgage-backed commercial (a)	4,675		7		(666)		4,016		4,539		2		(783)		3,758

Asset-backed	204		—		(2)		202		344		—		(12)		332
Corporate debt	1,894		12		(97)		1,809		1,942		4		(146)		1,800
Total available-for-sale securities (b) (c) (d) (e) (f)	$	27,312	$	23	$	(3,430)	$	23,905	$	28,416	$	9	$	(4,010)	$	24,415


Held-to-maturity securities
Debt securities
Agency mortgage-backed residential	$	950	$	—	$	(155)	$	795	$	999	$	—	$	(173)	$	826
Mortgage-backed residential	3,392		283		—		3,675		3,603		221		—		3,824
Asset-backed retained notes	99		1		—		100		78		1		—		79
Total held-to-maturity securities (d) (f) (g)	$	4,441	$	284	$	(155)	$	4,570	$	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 $100 million asset and a $46 million asset for agency mortgage-backed residential securities at September 30, 2024, and December 31, 2023, respectively, and a $57 million asset and a $29 million asset for agency mortgage-backed commercial securities at September 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 $13 million and $12 million at September 30, 2024, and December 31, 2023, respectively.

(d)Investment securities with a fair value of $4.0 billion and $4.7 billion were pledged as collateral at September 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 September 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 $901 million and $1.4 billion of the underlying available-for-sale securities at September 30, 2024, and December 31, 2023, respectively.

(e)Totals do not include accrued interest receivable, which was $72 million and $76 million at September 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 September 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 $12 million and $13 million at September 30, 2024, and December 31, 2023, respectively. 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.


	Total				Due in one year or less				Due after one year through five years				Due after five years through ten years				Due after ten years
($ in millions)	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
September 30, 2024
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies	$	2,115	1.6	%	$	253	0.8	%	$	1,100	1.5	%	$	762	1.9	%	$	—	—	%
U.S. States and political subdivisions	647		3.4		32		6.7		69		3.0		94		4.0		452		3.2
Foreign government	200		2.6		39		1.9		50		2.3		107		2.9		4		3.3
Agency mortgage-backed residential (b)	14,697		2.6		—		—		8		2.0		26		2.5		14,663		2.6
Mortgage-backed residential	219		2.7		—		—		—		—		—		—		219		2.7
Agency mortgage-backed commercial (b)	4,016		2.4		23		3.1		273		3.7		1,694		2.4		2,026		2.2

Asset-backed	202		1.6		—		—		197		1.6		4		3.9		1		2.7
Corporate debt	1,809		3.0		214		3.0		789		2.6		729		3.2		77		5.2
Total available-for-sale securities	$	23,905	2.5		$	561	1.8		$	2,486	2.2		$	3,416	2.5		$	17,442	2.5
Amortized cost of available-for-sale securities	$	27,312			$	565			$	2,596			$	3,767			$	20,384
Amortized cost of held-to-maturity securities (c)
Agency mortgage-backed residential	$	950	2.7	%	$	—	—	%	$	—	—	%	$	—	—	%	$	950	2.7	%
Mortgage-backed residential	3,392		2.8		—		—		—		—		9		3.0		3,383		2.8
Asset-backed retained notes	99		5.4		—		—		67		5.4		32		5.5		—		—
Total held-to-maturity securities	$	4,441	2.9		$	—	—		$	67	5.4		$	41	5.0		$	4,333	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 subdivisions	658		3.2		4		3.4		55		2.7		110		3.6		489		3.1
Foreign government	183		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 residential	225		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-backed	332		1.7		—		—		327		1.7		4		3.9		1		2.7
Corporate debt	1,800		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 (c)
Agency mortgage-backed residential	$	999	2.8	%	$	—	—	%	$	—	—	%	$	—	—	%	$	999	2.8	%
Mortgage-backed residential	3,603		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 by security for the securities within each maturity distribution range. The effective yield considers the contractual coupon and amortized cost inclusive of hedge basis adjustments for dedesignated hedges, and excludes expected capital gains and losses. Yield does not consider hedging effects for securities in active hedges.

(b)Fair value includes basis adjustments for securities in closed portfolios with active hedges under the portfolio layer method. This includes a $100 million asset and a $46 million asset for agency mortgage-backed residential securities at September 30, 2024, and December 31, 2023, respectively, and a $57 million asset and a $29 million asset for agency mortgage-backed commercial securities at September 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.

(c)Yield is calculated using the effective yield of each security at the end of the period, weighted based on amortized cost by security for the securities within each maturity distribution range. The effective yield considers the contractual coupon and amortized cost and excludes capital gains, capital losses, and the premium or discount on securities transferred from available-for-sale to held-to-maturity.

Schedule of Investment Income

The following table presents interest and dividends on investment securities.


	Three months ended September 30,				Nine months ended September 30,
($ in millions)	2024		2023		2024		2023
Taxable interest	$	243	$	246	$	732	$	692
Taxable dividends	5		5		15		12
Interest and dividends exempt from U.S. federal income tax	5		5		16		16
Interest and dividends on investment securities	$	253	$	256	$	763	$	720

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 September 30,				Nine months ended September 30,
($ in millions)	2024		2023		2024		2023
Available-for-sale securities
Gross realized gains	$	1	$	—	$	2	$	5

Net realized gain on available-for-sale securities	1		—		2		5
Net realized gain on equity securities	15		15		53		21
Net unrealized gain (loss) on equity securities	58		(56)		41		33
Other gain (loss) on investments, net	$	74	$	(41)	$	96	$	59

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 September 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 September 30, 2024, and December 31, 2023. We have not recorded any interest income reversals on our held-to-maturity securities during the nine months ended September 30, 2024, or 2023.



($ in millions)	AAA		AA		A		BBB		Total (a)
September 30, 2024
Debt securities
Agency mortgage-backed residential	$	—	$	950	$	—	$	—	$	950
Mortgage-backed residential	3,299		81		12		—		3,392
Asset-backed retained notes	91		4		2		2		99
Total held-to-maturity securities	$	3,390	$	1,035	$	14	$	2	$	4,441
December 31, 2023
Debt securities
Agency mortgage-backed residential	$	—	$	999	$	—	$	—	$	999
Mortgage-backed residential	3,497		93		13		—		3,603
Asset-backed retained notes	73		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 September 30, 2024, and December 31, 2023, we did not have the intent to sell the available-for-sale securities in 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 nine months ended September 30, 2024, or 2023.


	September 30, 2024								December 31, 2023

	Less than 12 months				12 months or longer				Less than 12 months				12 months or longer
($ in millions)	Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss		Fair value		Unrealized loss
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	$	—	$	—	$	2,115	$	(155)	$	—	$	—	$	2,075	$	(209)
U.S. States and political subdivisions	47		(1)		497		(71)		70		—		501		(70)
Foreign government	9		—		122		(5)		16		—		134		(8)
Agency mortgage-backed residential (a)	18		—		14,548		(2,398)		300		(5)		15,015		(2,734)
Mortgage-backed residential	—		—		219		(35)		—		—		225		(43)
Agency mortgage-backed commercial (a)	79		(1)		3,608		(665)		153		(4)		3,472		(779)

Asset-backed	—		—		178		(2)		18		—		302		(12)
Corporate debt	57		(1)		1,423		(96)		33		(1)		1,607		(145)
Total available-for-sale securities	$	210	$	(3)	$	22,710	$	(3,427)	$	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 September 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.