SECURITIES (Tables)

3 Months Ended

Mar. 31, 2024

Investments, Debt and Equity Securities [Abstract]

The following table presents the major components of securities at amortized cost and fair value:


	March 31, 2024				December 31, 2023
(dollars in millions)	Amortized Cost(1)	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	Amortized Cost(1)	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
U.S. Treasury and other	$4,944	$8	($182)	$4,770	$4,493	$26	($139)	$4,380
State and political subdivisions	1	—	—	1	1	—	—	1
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	27,989	26	(2,150)	25,865	26,289	45	(1,857)	24,477
Other/non-agency	278	—	(21)	257	279	—	(24)	255
Total mortgage-backed securities	28,267	26	(2,171)	26,122	26,568	45	(1,881)	24,732
Collateralized loan obligations	293	1	—	294	667	—	(3)	664
Total debt securities available for sale, at fair value	$33,505	$35	($2,353)	$31,187	$31,729	$71	($2,023)	$29,777
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	$8,587	$1	($906)	$7,682	$8,696	$9	($818)	$7,887
Total mortgage-backed securities	8,587	1	(906)	7,682	8,696	9	(818)	7,887
Asset-backed securities	467	1	(18)	450	488	—	(25)	463
Total debt securities held to maturity	$9,054	$2	($924)	$8,132	$9,184	$9	($843)	$8,350
Equity securities, at cost(2)	$791	$—	$—	$791	$869	$—	$—	$869
Equity securities, at fair value(2)	178	—	—	178	173	—	—	173

(1) Excludes portfolio level basis adjustments of $(74) million and $60 million, respectively, for securities designated in active fair value hedge relationships at March 31, 2024 and December 31, 2023.

(2) Included in other assets in the Consolidated Balance Sheets.

Schedule of investments classified by maturity date

The following table presents the amortized cost and fair value of debt securities by contractual maturity as of March 31, 2024. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties.


	Distribution of Maturities
(dollars in millions)	1 Year or Less	After 1 Year through 5 Years	After 5 Years through 10 Years	After 10 Years	Total
Amortized cost:
U.S. Treasury and other	$—	$3,507	$1,437	$—	$4,944
State and political subdivisions	—	—	—	1	1
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	1,853	2,056	24,080	27,989
Other/non-agency	—	—	—	278	278
Collateralized loan obligations	—	—	59	234	293
Total debt securities available for sale	—	5,360	3,552	24,593	33,505
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	8,587	8,587
Asset-backed securities	—	467	—	—	467
Total debt securities held to maturity	—	467	—	8,587	9,054
Total amortized cost of debt securities	$—	$5,827	$3,552	$33,180	$42,559

Fair value:
U.S. Treasury and other	$—	$3,334	$1,436	$—	$4,770
State and political subdivisions	—	—	—	1	1
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	1,761	1,945	22,159	25,865
Other/non-agency	—	—	—	257	257
Collateralized loan obligations	—	—	59	235	294
Total debt securities available for sale	—	5,095	3,440	22,652	31,187
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	7,682	7,682
Asset-backed securities	—	450	—	—	450
Total debt securities held to maturity	—	450	—	7,682	8,132
Total fair value of debt securities	$—	$5,545	$3,440	$30,334	$39,319

Schedule of income recognized on investment securities

The following table presents realized gains and losses on the sale of securities:


	Three Months Ended March 31,
(dollars in millions)	2024	2023
Gains	$5	$9
Losses	—	(4)
Securities gains, net	$5	$5

Schedule of financial instruments owned and pledged as collateral

The following table presents the amortized cost and fair value of debt securities pledged:


	March 31, 2024		December 31, 2023
(dollars in millions)	Amortized Cost	Fair Value	Amortized Cost	Fair Value
Pledged against derivatives, to qualify for fiduciary powers, or to secure public and other deposits as required by law	$7,402	$6,838	$5,619	$5,305
Pledged as collateral for FHLB borrowing capacity	242	222	242	220
Pledged against repurchase agreements	—	—	—	—

Schedule of unrealized loss on investments

The following tables present AFS debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position:


	March 31, 2024
	Less than 12 Months		12 Months or Longer		Total
(dollars in millions)	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
U.S. Treasury and other	$758	($7)	$3,211	($175)	$3,969	($182)
State and political subdivisions	—	—	1	—	1	—
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	5,710	(39)	16,007	(2,111)	21,717	(2,150)
Other/non-agency	—	—	257	(21)	257	(21)
Total mortgage-backed securities	5,710	(39)	16,264	(2,132)	21,974	(2,171)
Collateralized loan obligations	74	—	10	—	84	—
Total	$6,542	($46)	$19,486	($2,307)	$26,028	($2,353)


	December 31, 2023
	Less than 12 Months		12 Months or Longer		Total
(dollars in millions)	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
U.S. Treasury and other	$49	$—	$3,245	($139)	$3,294	($139)
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	2,939	(24)	16,398	(1,833)	19,337	(1,857)
Other/non-agency	—	—	255	(24)	255	(24)
Total mortgage-backed securities	2,939	(24)	16,653	(1,857)	19,592	(1,881)
Collateralized loan obligations	56	—	607	(3)	663	(3)
Total	$3,044	($24)	$20,505	($1,999)	$23,549	($2,023)