Investment Securities

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Our investment portfolio includes various debt and equity securities. Our debt securities, which are classified as available-for-sale or held-to-maturity, include government securities, corporate bonds, asset-backed securities, and mortgage-backed securities. The cost, fair value, and gross unrealized gains and losses on available-for-sale and held-to-maturity securities were as follows.



	2024								2023
	Amortized cost		Gross unrealized				Fair value		Amortized cost		Gross unrealized				Fair value
December 31, ($ in millions)			gains		losses						gains		losses
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies	$	2,073	$	—	$	(200)	$	1,873	$	2,284	$	—	$	(209)	$	2,075
U.S. States and political subdivisions	704		—		(87)		617		727		1		(70)		658
Foreign government	198		1		(5)		194		190		1		(8)		183
Agency mortgage-backed residential (a)	16,765		—		(3,112)		13,653		18,122		1		(2,739)		15,384
Mortgage-backed residential	249		—		(43)		206		268		—		(43)		225
Agency mortgage-backed commercial (a)	4,819		1		(836)		3,984		4,539		2		(783)		3,758

Asset-backed	131		—		(2)		129		344		—		(12)		332
Corporate debt	1,871		3		(120)		1,754		1,942		4		(146)		1,800
Total available-for-sale securities (b) (c) (d) (e) (f)	$	26,810	$	5	$	(4,405)	$	22,410	$	28,416	$	9	$	(4,010)	$	24,415
Held-to-maturity securities
Debt securities
Agency mortgage-backed residential	$	935	$	—	$	(196)	$	739	$	999	$	—	$	(173)	$	826
Mortgage-backed residential	3,323		142		—		3,465		3,603		221		—		3,824
Asset-backed retained notes	88		1		—		89		78		1		—		79
Total held-to-maturity securities (d) (f) (g)	$	4,346	$	143	$	(196)	$	4,293	$	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 $72 million liability and a $46 million asset for agency mortgage-backed residential securities at December 31, 2024, and December 31, 2023, respectively, and a $34 million liability and a $29 million asset for agency mortgage-backed commercial securities at December 31, 2024, and December 31, 2023, respectively. These basis adjustments would be allocated to the amortized cost of specific securities within the pool if the hedge was dedesignated. Refer to Note 21 for additional information.

(b)Certain available-for-sale securities are included in fair value hedging relationships. Refer to Note 21 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 December 31, 2024, and December 31, 2023, respectively.

(d)Investment securities with a fair value of $3.4 billion and $4.7 billion were pledged as collateral at December 31, 2024, and December 31, 2023, respectively. This primarily included $2.9 billion and $3.3 billion pledged to secure advances from the FHLB at December 31, 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 $439 million and $1.4 billion of the underlying available-for-sale securities at December 31, 2024, and December 31, 2023, respectively.

(e)Totals do not include accrued interest receivable, which was $73 million and $76 million at December 31, 2024, and December 31, 2023, respectively. Accrued interest receivable is included in other assets on our Consolidated Balance Sheet.

(f)There was no allowance for credit losses recorded at both December 31, 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 December 31, 2024, and December 31, 2023, respectively. Accrued interest receivable is included in other assets on our Consolidated Balance Sheet.

In the fourth quarter of 2023, non-agency mortgage-backed residential securities with a fair value of $3.6 billion were transferred from available-for-sale to held-to-maturity. At the time of the transfer, $911 million of unrealized losses were retained in accumulated other comprehensive loss on our Consolidated Balance Sheet. The transfer of these securities to held-to-maturity reduces our exposure to fluctuations in accumulated other comprehensive loss on our Consolidated Balance Sheet that can result from unrealized losses on available-for-sale securities due to changes in market interest rates. The unrealized loss at the time of transfer is amortized over the remaining life of the security, offsetting the amortization of the security’s premium or discount, and resulting in no impact to the Consolidated Statement of Income. Refer to Note 18 for additional information.

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
December 31, 2024
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies	$	1,873	1.6	%	$	54	1.0	%	$	1,087	1.5	%	$	732	1.9	%	$	—	—	%
U.S. States and political subdivisions	617		3.4		33		6.2		72		3.1		86		4.1		426		3.2
Foreign government	194		2.7		33		2.1		51		2.5		110		2.9		—		—
Agency mortgage-backed residential (b)	13,653		2.6		—		—		7		2.0		23		2.5		13,623		2.6
Mortgage-backed residential	206		2.7		—		—		—		—		—		—		206		2.7
Agency mortgage-backed commercial (b)	3,984		2.5		23		3.1		339		3.7		1,724		2.5		1,898		2.1

Asset-backed	129		1.5		—		—		128		1.5		1		4.0		—		—
Corporate debt	1,754		3.1		184		3.0		754		2.6		695		3.3		121		5.3
Total available-for-sale securities	$	22,410	2.5		$	327	2.3		$	2,438	2.2		$	3,371	2.6		$	16,274	2.6
Amortized cost of available-for-sale securities	$	26,810			$	330			$	2,579			$	3,844			$	20,057
Amortized cost of held-to-maturity securities (c)
Agency mortgage-backed residential	$	935	2.7	%	$	—	—	%	$	—	—	%	$	—	—	%	$	935	2.7	%
Mortgage-backed residential	3,323		2.8		—		—		—		—		9		3.1		3,314		2.8
Asset-backed retained notes	88		5.4		—		—		64		5.3		24		5.6		—		—
Total held-to-maturity securities	$	4,346	2.9		$	—	—		$	64	5.3		$	33	5.0		$	4,249	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 $72 million liability and a $46 million asset for agency mortgage-backed residential securities at December 31, 2024, and December 31, 2023, respectively, and a $34 million liability and a $29 million asset for agency mortgage-backed commercial securities at December 31, 2024, and December 31, 2023, respectively. These basis adjustments would be allocated to the amortized cost of specific securities within the pool if the hedge was dedesignated. Refer to Note 21 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.

The balances of cash equivalents were $106 million and $36 million at December 31, 2024, and December 31, 2023, respectively, and were composed primarily of money-market funds.

The following table presents interest and dividends on investment securities.



Year ended December 31, ($ in millions)	2024		2023		2022
Taxable interest	$	952	$	938	$	765
Taxable dividends	22		20		17
Interest and dividends exempt from U.S. federal income tax	22		22		22
Interest and dividends on investment securities	$	996	$	980	$	804

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.



Year ended December 31, ($ in millions)	2024		2023		2022
Available-for-sale securities
Gross realized gains	$	3	$	5	$	23

Net realized gain on available-for-sale securities	3		5		23
Net realized gain on equity securities	75		32		72
Net unrealized (loss) gain on equity securities	(6)		107		(215)
Other gain (loss) on investments, net	$	72	$	144	$	(120)

The following table presents the credit quality of our held-to-maturity securities, based on the latest available information as of December 31, 2024, and December 31, 2023. The credit ratings are sourced from nationally recognized statistical rating organizations, which include S&P, Moody’s, Fitch, and DBRS. 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 December 31, 2024, and December 31, 2023. We have not recorded any interest income reversals on our held-to-maturity securities during the years ended December 31, 2024, or 2023.



December 31, ($ in millions)	AAA		AA		A		BBB		Total (a)
2024
Debt securities
Agency mortgage-backed residential	$	—	$	935	$	—	$	—	$	935
Mortgage-backed residential	3,241		78		4		—		3,323
Asset-backed retained notes	81		3		2		2		88
Total held-to-maturity securities	$	3,322	$	1,016	$	6	$	2	$	4,346
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.

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. As of December 31, 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 years ended December 31, 2024, or 2023.


	2024								2023

	Less than 12 months				12 months or longer				Less than 12 months				12 months or longer
December 31, ($ 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	$	—	$	—	$	1,873	$	(200)	$	—	$	—	$	2,075	$	(209)
U.S. States and political subdivisions	87		(2)		472		(85)		70		—		501		(70)
Foreign government	40		—		112		(5)		16		—		134		(8)
Agency mortgage-backed residential (a)	127		(3)		13,518		(3,109)		300		(5)		15,015		(2,734)
Mortgage-backed residential	—		—		206		(43)		—		—		225		(43)
Agency mortgage-backed commercial (a)	428		(11)		3,445		(825)		153		(4)		3,472		(779)

Asset-backed	—		—		124		(2)		18		—		302		(12)
Corporate debt	265		(6)		1,319		(114)		33		(1)		1,607		(145)
Total available-for-sale securities	$	947	$	(22)	$	21,069	$	(4,383)	$	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 December 31, 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 21 for additional information.

During the years ended December 31, 2024, and 2023, management determined that there were no expected credit losses for securities in an unrealized loss position. This analysis considered a variety of factors including, but not limited to, performance indicators of the issuer, default rates, industry analyst reports, credit ratings, and other relevant information, which indicated that contractual cash flows are expected to occur. As a result of this evaluation, management determined that no credit reserves were required at December 31, 2024, or December 31, 2023.