SECURITIES (Tables)

9 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

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


	September 30, 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	$4,726	$42	($79)	$4,689	$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	28,995	135	(1,480)	27,650	26,289	45	(1,857)	24,477
Other/non-agency	274	—	(13)	261	279	—	(24)	255
Total mortgage-backed securities	29,269	135	(1,493)	27,911	26,568	45	(1,881)	24,732
Collateralized loan obligations	234	—	—	234	667	—	(3)	664
Total debt securities available for sale, at fair value	$34,230	$177	($1,572)	$32,835	$31,729	$71	($2,023)	$29,777
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	$8,308	$2	($665)	$7,645	$8,696	$9	($818)	$7,887
Total mortgage-backed securities	8,308	2	(665)	7,645	8,696	9	(818)	7,887
Asset-backed securities	430	1	(9)	422	488	—	(25)	463
Total debt securities held to maturity	$8,738	$3	($674)	$8,067	$9,184	$9	($843)	$8,350
Equity securities, at cost(2)	$732	$—	$—	$732	$869	$—	$—	$869
Equity securities, at fair value(2)	203	—	—	203	173	—	—	173

(1) Excludes portfolio level basis adjustments of $176 million and $60 million, respectively, for securities designated in active fair value hedge relationships at September 30, 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 September 30, 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	$—	$3,606	$1,120	$—	$4,726
State and political subdivisions	—	—	—	1	1
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	2,108	1,321	25,566	28,995
Other/non-agency	—	—	—	274	274
Collateralized loan obligations	—	—	—	234	234
Total debt securities available for sale	—	5,714	2,441	26,075	34,230
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	8,308	8,308
Asset-backed securities	—	430	—	—	430
Total debt securities held to maturity	—	430	—	8,308	8,738
Total amortized cost of debt securities	$—	$6,144	$2,441	$34,383	$42,968

Fair value:
U.S. Treasury and other	$—	$3,535	$1,154	$—	$4,689
State and political subdivisions	—	—	—	1	1
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	2,060	1,281	24,309	27,650
Other/non-agency	—	—	—	261	261
Collateralized loan obligations	—	—	—	234	234
Total debt securities available for sale	—	5,595	2,435	24,805	32,835
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	7,645	7,645
Asset-backed securities	—	422	—	—	422
Total debt securities held to maturity	—	422	—	7,645	8,067
Total fair value of debt securities	$—	$6,017	$2,435	$32,450	$40,902

Schedule of income recognized on investment securities

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


	Three Months Ended September 30,		Nine Months Ended September 30,
(dollars in millions)	2024	2023	2024	2023
Gains	$9	$9	$14	$27
Losses	—	(4)	—	(8)
Securities gains, net	$9	$5	$14	$19

Schedule of financial instruments owned and pledged as collateral

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


	September 30, 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	$6,528	$6,080	$5,619	$5,305
Pledged as collateral for FHLB borrowing capacity	237	226	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:


	September 30, 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	$—	$—	$3,310	($79)	$3,310	($79)
State and political subdivisions	—	—	—	—	—	—
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	755	(4)	16,244	(1,476)	16,999	(1,480)
Other/non-agency	—	—	260	(13)	260	(13)
Total mortgage-backed securities	755	(4)	16,504	(1,489)	17,259	(1,493)
Collateralized loan obligations	—	—	—	—	—	—
Total	$755	($4)	$19,814	($1,568)	$20,569	($1,572)


	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)