Investment Securities (Tables)

12 Months Ended

Dec. 31, 2024

Investments, Debt and Equity Securities [Abstract]

Schedule of available for sale securities by type

The following is a summary of investment securities as of December 31:

TABLE 4.1: INVESTMENT SECURITIES

	2024								2023
Description of Securities (Millions)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
State and municipal obligations	$	57	$	1	$	(9)	$	49	$	61	$	—	$	(6)	$	55
U.S. Government agency obligations	4		—		—		4		4		—		—		4
U.S. Government treasury obligations	289		—		(2)		287		1,217		1		(12)		1,206
Mortgage-backed securities (a)	11		—		(1)		10		12		—		(1)		11
Foreign government bonds and obligations	765		—		—		765		770		—		—		770
Other (b)	77		—		—		77		74		—		—		74
Equity securities (c)(d)	53		4		(9)		48		60		16		(10)		66
Total	$	1,256	$	5	$	(21)	$	1,240	$	2,198	$	17	$	(29)	$	2,186

(a)Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.

(b)Represents investments in debt securities issued by Community Development Financial Institutions.

(c)Equity securities comprise investments in common stock and mutual funds.

(d)During 2024, an equity investment transferred from Other assets to Investment securities following the completion of an initial public offering by the issuer of the securities. The investment had a fair value of $7 million with an associated cost of $3 million as of December 31, 2024.

Available-for-sale securities, continuous unrealized loss position, fair value

The following table provides information about our AFS debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2024 and 2023:

TABLE 4.2: AFS DEBT SECURITIES WITH GROSS UNREALIZED LOSSES BY DURATION

	2024								2023
	Less than 12 months				12 months or more				Less than 12 months				12 months or more
Description of Securities (Millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
State and municipal obligations	$	—	$	—	$	22	$	(9)	$	—	$	—	$	33	$	(6)
U.S. Government treasury obligations	—		—		123		(2)		—		—		1,114		(12)
Mortgage-backed securities	—		—		7		(1)		—		—		7		(1)
Total	$	—	$	—	$	152	$	(12)	$	—	$	—	$	1,154	$	(19)

Available for sale securities ratio of fair value to amortized cost

The following table summarizes the gross unrealized losses for AFS debt securities by ratio of fair value to amortized cost as of December 31, 2024 and 2023:

TABLE 4.3: AFS GROSS UNREALIZED LOSSES BY RATIO OF FAIR VALUE TO AMORTIZED COST

	Less than 12 months					12 months or more					Total
Ratio of Fair Value to Amortized Cost (Dollars in millions)	Number of Securities	Estimated Fair Value		Gross Unrealized Losses		Number of Securities	Estimated Fair Value		Gross Unrealized Losses		Number of Securities	Estimated Fair Value		Gross Unrealized Losses
2024:
90%–100%	—	$	—	$	—	30	$	129	$	(3)	30	$	129	$	(3)
Less than 90%	—	—		—		15	23		(9)		15	23		(9)
Total as of December 31, 2024	—	$	—	$	—	45	$	152	$	(12)	45	$	152	$	(12)
2023:
90%–100%	—	$	—	$	—	69	$	1,140	$	(14)	69	$	1,140	$	(14)
Less than 90%	—	—		—		2	14		(5)		2	14		(5)
Total as of December 31, 2023	—	$	—	$	—	71	$	1,154	$	(19)	71	$	1,154	$	(19)

Contractual maturities of investment securities

Weighted average yields and contractual maturities for AFS debt securities with stated maturities as of December 31, 2024 were as follows:

TABLE 4.4: WEIGHTED AVERAGE YIELDS AND CONTRACTUAL MATURITIES OF AFS DEBT SECURITIES

(Millions)	Due within 1 year			Due after 1 year but within 5 years			Due after 5 years but within 10 years			Due after 10 years			Total
State and municipal obligations (a)	$	—		$	—		$	23		$	26		$	49
U.S. Government agency obligations (a)	—			—			—			4			4
U.S. Government treasury obligations	189			98			—			—			287
Mortgage-backed securities (a)(b)	—			—			—			10			10
Foreign government bonds and obligations	764			1			—			—			765
Other (c)	—			67			10			—			77
Total Estimated Fair Value	$	953		$	166		$	33		$	40		$	1,192
Total Cost	$	955		$	166		$	32		$	50		$	1,203
Weighted average yield (d)	5.33		%	3.71		%	4.81		%	2.73		%	4.98		%

(a)The expected payments on state and municipal obligations, U.S. Government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.

(b)Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.

(c)Represents investments in debt securities issued by Community Development Financial Institutions.

(d)Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 21 percent.