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Investment Securities
 9 Months Ended
Sep. 30, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIESThe following table summarizes our available for sale and held to maturity portfolios by major security type:
Table 35: Investment Securities Summary (a)(b)
September 30, 2024December 31, 2023
In millionsAmortized
Cost (c)		UnrealizedFair
Value		Amortized
Cost (c)		UnrealizedFair
Value
GainsLossesGainsLosses
Securities Available for Sale
U.S. Treasury and government agencies$22,955 $106 $(422)$22,639 $7,596 $22 $(667)$6,951 
Residential mortgage-backed
Agency31,666 126 (2,131)29,661 30,643 46 (2,809)27,880 
Non-agency517 116 (5)628 585 118 (7)696 
Commercial mortgage-backed
Agency1,980 5 (93)1,892 1,680 1 (135)1,546 
Non-agency752  (18)734 913 1 (45)869 
Asset-backed2,229 61 (1)2,289 1,092 25 (1)1,116 
Other 2,551 44 (100)2,495 2,844 44 (161)2,727 
Total securities available for sale $62,650 $458 $(2,770)$60,338 $45,353 $257 $(3,825)$41,785 
Securities Held to Maturity
U.S. Treasury and government agencies$33,824 $24 $(602)$33,246 $36,529 $9 $(1,141)$35,397 
Residential mortgage-backed
Agency40,983 179 (2,090)39,072 42,686 92 (2,733)40,045 
Non-agency245 (10)235 259  (17)242 
Commercial mortgage-backed
Agency972 17 (12)977 939 9 (23)925 
Non-agency1,006 3 (10)999 1,373 2 (27)1,348 
Asset-backed4,006 45 (11)4,040 5,890 17 (39)5,868 
Other2,809 44 (24)2,829 3,108 50 (35)3,123 
Total securities held to maturity (d)$83,845 $312 $(2,759)$81,398 $90,784 $179 $(4,015)$86,948 
(a) At September 30, 2024, the accrued interest associated with our held to maturity and available for sale portfolios totaled $234 million and $247 million, respectively. The comparable amounts at December 31, 2023 were $281 million and $144 million, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet.
(b) Credit ratings represent a primary credit quality indicator used to monitor and manage credit risk. Of our total securities portfolio, 97% were rated AAA/AA at both September 30, 2024 and December 31, 2023.
(c) Amortized cost is presented net of allowance of $88 million for securities available for sale, primarily related to non-agency commercial mortgage-backed securities, and $5 million for securities held to maturity at September 30, 2024. The comparable amounts at December 31, 2023 were $86 million and $6 million, respectively.
(d) Held to maturity securities transferred from available for sale are included in held to maturity at fair value at the time of the transfer. The amortized cost of held to maturity securities included net unrealized losses of $3.6 billion at September 30, 2024 related to securities transferred, which are offset in AOCI, net of tax. The comparable amount at December 31, 2023 was $4.2 billion.

The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Securities available for sale are carried at fair value with net unrealized gains and losses included in Total shareholders’ equity as AOCI, unless credit-related. Net unrealized gains and losses are determined by taking the difference between the fair value of a security and its amortized cost, net of any allowance. Securities held to maturity are carried at amortized cost, net of any allowance. Investment securities at September 30, 2024 included $952 million of net unsettled purchases that represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows. The comparable amount for September 30, 2023 was $28 million of net unsettled purchases.
We maintain the allowance for investment securities at levels that we believe to be appropriate as of the balance sheet date to absorb expected credit losses on our portfolio. At September 30, 2024, the allowance for investment securities was $93 million and primarily related to non-agency commercial mortgage-backed securities in the available for sale portfolio. The comparable amount at December 31, 2023 was $92 million. See Note 1 Accounting Policies in our 2023 Form 10-K for a discussion of the methodologies used to determine the allowance for investment securities.

At September 30, 2024, AOCI included pretax losses of $280 million from derivatives that hedged the purchase of investment securities classified as held to maturity. The losses will be accreted to interest income as an adjustment of yield on the securities.

Table 36 presents the gross unrealized losses and fair value of securities available for sale that do not have an associated allowance for investment securities at September 30, 2024 and December 31, 2023. These securities are segregated between investments that had been in a continuous unrealized loss position for less than twelve months and twelve months or more, based on the point in time that the fair value declined below the amortized cost basis. All securities included in the table have been evaluated to determine if a credit loss exists. As part of that assessment, as of September 30, 2024, we concluded that we do not intend to sell and believe we will not be required to sell these securities prior to recovery of the amortized cost basis.
Table 36: Gross Unrealized Loss and Fair Value of Securities Available for Sale Without an Allowance for Credit Losses
Unrealized loss position
less than 12 months		Unrealized loss position
12 months or more		Total
In millionsUnrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value
September 30, 2024
U.S. Treasury and government agencies$(37)$11,531 $(385)$1,962 $(422)$13,493 
Residential mortgage-backed
Agency(1)577 (2,130)21,064 (2,131)21,641 
Non-agency  (3)52 (3)52 
Commercial mortgage-backed
Agency(1)240 (92)1,432 (93)1,672 
Non-agency  (18)600 (18)600 
Asset-backed  (1)8 (1)8 
Other   (80)1,790 (80)1,790 
Total securities available for sale$(39)$12,348 $(2,709)$26,908 $(2,748)$39,256 
December 31, 2023
U.S. Treasury and government agencies  $(666)$6,035 $(666)$6,035 
Residential mortgage-backed
Agency$(4)$1,015 (2,805)24,306 (2,809)25,321 
Non-agency(1)15 (4)84 (5)99 
Commercial mortgage-backed
Agency  (135)1,495 (135)1,495 
Non-agency(45)731 (45)731 
Asset-backed  (1)9 (1)9 
Other(3)78 (136)2,106 (139)2,184 
Total securities available for sale$(8)$1,108 $(3,792)$34,766 $(3,800)$35,874 
Information related to gross realized securities gains and losses from the sales of securities is set forth in the following table:

Table 37: Gains (Losses) on Sales of Securities Available for Sale

Nine months ended September 30
In millions
Gross GainsGross LossesNet Gains (Losses) Tax Expense (Benefit)
2024$2 $(500)$(498)$(105)
2023$(2)$(2)
The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at September 30, 2024:
Table 38: Contractual Maturity of Debt Securities
September 30, 2024
Dollars in millions		1 Year or LessAfter 1 Year
through 5 Years		After 5 Years
through 10 Years		After 10
Years		Total
Securities Available for Sale
U.S. Treasury and government agencies$507 $8,700 $11,291 $2,457 $22,955 
Residential mortgage-backed
Agency1 218 3,323 28,124 31,666 
Non-agency17 500 517 
Commercial mortgage-backed
Agency72 953 626 329 1,980 
Non-agency1 103 86 562 752 
Asset-backed750 318 1,161 2,229 
Other 375 1,753 283 140 2,551 
Total securities available for sale at amortized cost$956 $12,477 $15,944 $33,273 $62,650 
Fair value$953 $12,432 $15,760 $31,193 $60,338 
Weighted-average yield, GAAP basis (a)3.34 %3.61 %4.15 %3.59 %3.73 %
Securities Held to Maturity
U.S. Treasury and government agencies$10,401 $20,906 $1,640 $877 $33,824 
Residential mortgage-backed
Agency 8 295 40,680 40,983 
Non-agency245 245 
Commercial mortgage-backed
Agency180 582 210 972 
Non-agency 46  960 1,006 
Asset-backed17 1,081 1,716 1,192 4,006 
Other325 829 371 1,284 2,809 
Total securities held to maturity at amortized cost$10,743 $23,050 $4,604 $45,448 $83,845 
Fair value$10,690 $22,663 $4,532 $43,513 $81,398 
Weighted-average yield, GAAP basis (a)1.30 %1.51 %3.51 %2.95 %2.37 %
(a)Weighted-average yields are based on amortized cost with effective yields weighted for the contractual maturity of each security. Actual maturities and yields may differ as certain securities may be prepaid.
At September 30, 2024, there were no securities of a single issuer, other than FNMA and FHLMC, that exceeded 10% of total shareholders’ equity. The FNMA and FHLMC investments had a total amortized cost of $35.9 billion and $32.4 billion, and fair value of $34.0 billion and $31.0 billion, respectively.
The following table presents the fair value of securities that have been either pledged to or accepted from others to collateralize outstanding borrowings:
Table 39: Fair Value of Securities Pledged and Accepted as Collateral
In millionsSeptember 30, 2024December 31, 2023
Pledged to others$71,329 $29,878 
Accepted from others:
Permitted by contract or custom to sell or repledge$1,454 $755 
Permitted amount repledged to others$1,454 $755 
The securities pledged to others include positions held in our portfolio of investment securities, trading securities and securities accepted as collateral from others that we are permitted by contract or custom to sell or repledge, and were used to secure public and trust deposits, repurchase agreements and for other purposes. See Note 12 Financial Derivatives for information related to securities pledged and accepted as collateral for derivatives.