AVAILABLE-FOR-SALE SECURITIES (Tables)

6 Months Ended

Mar. 31, 2024

Debt Securities, Available-for-Sale [Abstract]

Amortized Cost and Estimated Fair Values of Available-For-Sale Securities, and Continuous Unrealized Loss Position

The following table details the amortized costs and fair values of our available-for-sale securities. See Note 3 for additional information regarding the fair value of available-for-sale securities.

$ in millions	Cost basis		Gross unrealized gains		Gross unrealized losses		Fair value
March 31, 2024
Agency residential MBS	$	4,522	$	1	$	(476)	$	4,047
Agency commercial MBS	1,450		—		(165)		1,285
Agency CMOs	1,401		—		(216)		1,185
Other agency obligations	658		—		(17)		641
Non-agency residential MBS	582		1		(44)		539
U.S. Treasuries	1,188		—		(8)		1,180
Corporate bonds	140		1		(5)		136
Other	18		—		—		18
Total available-for-sale securities	$	9,959	$	3	$	(931)	$	9,031
September 30, 2023
Agency residential MBS	$	4,865	$	—	$	(654)	$	4,211
Agency commercial MBS	1,464		—		(211)		1,253
Agency CMOs	1,448		—		(265)		1,183
Other agency obligations	710		—		(31)		679
Non-agency residential MBS	527		—		(64)		463
U.S. Treasuries	1,261		—		(21)		1,240
Corporate bonds	140		—		(6)		134
Other	18		—		—		18
Total available-for-sale securities	$	10,433	$	—	$	(1,252)	$	9,181

Contractual Maturities, Amortized Cost, Carrying Values, and Current Yields for Available-For-Sales Securities

The following table details the contractual maturities, amortized costs, fair values and current yields for our available-for-sale securities.  Weighted-average yields are calculated on a taxable-equivalent basis based on estimated annual income divided by the average amortized cost of these securities. Since our MBS and CMO available-for-sale securities are backed by mortgages, actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. As a result, the weighted-average life of our available-for-sale securities portfolio, after factoring in estimated prepayments, was approximately 3.9 years as of March 31, 2024.

	March 31, 2024
$ in millions	Within one year			After one but within five years			After five but within ten years			After ten years			Total
Agency residential MBS
Amortized cost	$	—		$	112		$	1,917		$	2,493		$	4,522
Fair value	$	—		$	109		$	1,740		$	2,198		$	4,047
Weighted-average yield	—		%	2.52		%	1.31		%	2.02		%	1.73		%
Agency commercial MBS
Amortized cost	$	38		$	950		$	413		$	49		$	1,450
Fair value	$	38		$	867		$	340		$	40		$	1,285
Weighted-average yield	3.48		%	1.57		%	1.16		%	1.87		%	1.51		%
Agency CMOs
Amortized cost	$	—		$	6		$	37		$	1,358		$	1,401
Fair value	$	—		$	6		$	33		$	1,146		$	1,185
Weighted-average yield	—		%	2.46		%	1.50		%	1.69		%	1.69		%
Other agency obligations
Amortized cost	$	165		$	403		$	80		$	10		$	658
Fair value	$	161		$	395		$	76		$	9		$	641
Weighted-average yield	2.28		%	3.62		%	3.43		%	3.07		%	3.25		%
Non-agency residential MBS
Amortized cost	$	—		$	—		$	—		$	582		$	582
Fair value	$	—		$	—		$	—		$	539		$	539
Weighted-average yield	—		%	—		%	—		%	4.42		%	4.42		%
U.S. Treasuries
Amortized cost	$	847		$	341		$	—		$	—		$	1,188
Fair value	$	840		$	340		$	—		$	—		$	1,180
Weighted-average yield	3.07		%	5.30		%	—		%	—		%	3.71		%
Corporate bonds
Amortized cost	$	33		$	84		$	23		$	—		$	140
Fair value	$	33		$	82		$	21		$	—		$	136
Weighted-average yield	4.68		%	5.66		%	5.06		%	—		%	5.33		%
Other
Amortized cost	$	—		$	5		$	5		$	8		$	18
Fair value	$	—		$	4		$	5		$	9		$	18
Weighted-average yield	—		%	7.37		%	5.21		%	8.28		%	7.24		%
Total available-for-sale securities
Amortized cost	$	1,083		$	1,901		$	2,475		$	4,500		$	9,959
Fair value	$	1,072		$	1,803		$	2,215		$	3,941		$	9,031
Weighted-average yield	3.01		%	2.93		%	1.40		%	2.24		%	2.25		%

Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value

The following table details the gross unrealized losses and fair values of securities that were in a loss position at the reporting period end, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position.

	Less than 12 months				12 months or more				Total
$ in millions	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
March 31, 2024
Agency residential MBS	$	50	$	(1)	$	3,907	$	(475)	$	3,957	$	(476)
Agency commercial MBS	—		—		1,282		(165)		1,282		(165)
Agency CMOs	10		—		1,155		(216)		1,165		(216)
Other agency obligations	—		—		641		(17)		641		(17)
Non-agency residential MBS	32		—		433		(44)		465		(44)
U.S. Treasuries	95		—		760		(8)		855		(8)
Corporate bonds	—		—		87		(5)		87		(5)
Other	—		—		9		—		9		—
Total	$	187	$	(1)	$	8,274	$	(930)	$	8,461	$	(931)
September 30, 2023
Agency residential MBS	$	73	$	(3)	$	4,119	$	(651)	$	4,192	$	(654)
Agency commercial MBS	3		—		1,250		(211)		1,253		(211)
Agency CMOs	—		—		1,183		(265)		1,183		(265)
Other agency obligations	97		(1)		582		(30)		679		(31)
Non-agency residential MBS	62		(1)		401		(63)		463		(64)
U.S. Treasuries	120		—		995		(21)		1,115		(21)
Corporate bonds	13		—		78		(6)		91		(6)
Other	5		—		9		—		14		—
Total	$	373	$	(5)	$	8,617	$	(1,247)	$	8,990	$	(1,252)