AVAILABLE-FOR-SALE SECURITIES (Tables)

9 Months Ended

Jun. 30, 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
June 30, 2024
Agency residential MBS	$	4,344	$	—	$	(471)	$	3,873
Agency commercial MBS	1,439		—		(159)		1,280
Agency CMOs	1,381		—		(214)		1,167
Other agency obligations	629		—		(16)		613
Non-agency residential MBS	567		1		(47)		521
U.S. Treasuries	949		—		(4)		945
Corporate bonds	116		1		(4)		113
Other	19		—		(1)		18
Total available-for-sale securities	$	9,444	$	2	$	(916)	$	8,530
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 4.0 years as of June 30, 2024.

	June 30, 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	$	1		$	99		$	1,804		$	2,440		$	4,344
Fair value	$	1		$	97		$	1,638		$	2,137		$	3,873
Weighted-average yield	1.85		%	2.52		%	1.29		%	2.04		%	1.74		%
Agency commercial MBS
Amortized cost	$	67		$	911		$	412		$	49		$	1,439
Fair value	$	66		$	833		$	342		$	39		$	1,280
Weighted-average yield	3.04		%	1.53		%	1.17		%	1.87		%	1.51		%
Agency CMOs
Amortized cost	$	—		$	6		$	36		$	1,339		$	1,381
Fair value	$	—		$	6		$	32		$	1,129		$	1,167
Weighted-average yield	—		%	2.34		%	1.52		%	1.73		%	1.73		%
Other agency obligations
Amortized cost	$	195		$	382		$	43		$	9		$	629
Fair value	$	192		$	372		$	40		$	9		$	613
Weighted-average yield	2.64		%	3.59		%	3.05		%	3.07		%	3.25		%
Non-agency residential MBS
Amortized cost	$	—		$	—		$	—		$	567		$	567
Fair value	$	—		$	—		$	—		$	521		$	521
Weighted-average yield	—		%	—		%	—		%	4.39		%	4.39		%
U.S. Treasuries
Amortized cost	$	763		$	186		$	—		$	—		$	949
Fair value	$	759		$	186		$	—		$	—		$	945
Weighted-average yield	3.68		%	5.23		%	—		%	—		%	3.99		%
Corporate bonds
Amortized cost	$	14		$	79		$	23		$	—		$	116
Fair value	$	14		$	77		$	22		$	—		$	113
Weighted-average yield	3.71		%	5.78		%	5.02		%	—		%	5.38		%
Other
Amortized cost	$	—		$	5		$	5		$	9		$	19
Fair value	$	—		$	5		$	4		$	9		$	18
Weighted-average yield	—		%	7.38		%	5.21		%	8.24		%	7.21		%
Total available-for-sale securities
Amortized cost	$	1,040		$	1,668		$	2,323		$	4,413		$	9,444
Fair value	$	1,032		$	1,576		$	2,078		$	3,844		$	8,530
Weighted-average yield	3.45		%	2.69		%	1.35		%	2.27		%	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
June 30, 2024
Agency residential MBS	$	88	$	(1)	$	3,730	$	(470)	$	3,818	$	(471)
Agency commercial MBS	—		—		1,277		(159)		1,277		(159)
Agency CMOs	19		—		1,114		(214)		1,133		(214)
Other agency obligations	—		—		613		(16)		613		(16)
Non-agency residential MBS	30		—		421		(47)		451		(47)
U.S. Treasuries	—		—		525		(4)		525		(4)
Corporate bonds	—		—		78		(4)		78		(4)
Other	—		—		9		(1)		9		(1)
Total	$	137	$	(1)	$	7,767	$	(915)	$	7,904	$	(916)
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)