XML 22 R10.htm IDEA: XBRL DOCUMENT v3.25.1
SECURITIES
 3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
NOTE 2 - SECURITIES
The following table presents the major components of securities at amortized cost and fair value:
March 31, 2025December 31, 2024
(dollars in millions)
Amortized Cost(1)
Gross Unrealized GainsGross Unrealized LossesFair Value
Amortized Cost(1)
Gross Unrealized GainsGross Unrealized LossesFair Value
U.S. Treasury and other$4,145 $15 ($91)$4,069 $3,631 $3 ($109)$3,525 
State and political subdivisions1 — — 1 1 — — 1 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities31,444 81 (1,772)29,753 30,897 33 (2,135)28,795 
Other/non-agency272 — (11)261 273 — (13)260 
Total mortgage-backed securities31,716 81 (1,783)30,014 31,170 33 (2,148)29,055 
Collateralized loan obligations124 — — 124 184 — — 184 
Total debt securities available for sale, at fair value$35,986 $96 ($1,874)$34,208 $34,986 $36 ($2,257)$32,765 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities$8,077 $— ($948)$7,129 $8,187 $— ($1,051)$7,136 
Total mortgage-backed securities8,077 — (948)7,129 8,187 — (1,051)7,136 
Asset-backed securities392 — (6)386 412 1 (9)404 
Total debt securities held to maturity$8,469 $— ($954)$7,515 $8,599 $1 ($1,060)$7,540 
Equity securities, at cost(2)
$711 $— $— $711 $710 $— $— $710 
Equity securities, at fair value(2)
236 — — 236 220 — — 220 
(1) Excludes portfolio level basis adjustments of $(2) million and $(75) million, respectively, for securities designated in active fair value hedge relationships under the portfolio layer method at March 31, 2025 and December 31, 2024.
(2) Included in other assets in the Consolidated Balance Sheets.
Accrued interest receivable on debt securities totaled $129 million and $125 million as of March 31, 2025 and December 31, 2024, respectively, and is included in other assets in the Consolidated Balance Sheets.
The following table presents the amortized cost and fair value of debt securities by contractual maturity as of March 31, 2025. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties.
Distribution of Maturities
(dollars in millions)1 Year or LessAfter 1 Year through 5 YearsAfter 5 Years through 10 YearsAfter 10 YearsTotal
Amortized cost:
U.S. Treasury and other$— $3,142 $1,003 $— $4,145 
State and political subdivisions— — — 1 1 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities— 2,266 1,125 28,053 31,444 
Other/non-agency— — — 272 272 
Collateralized loan obligations— — 124 — 124 
Total debt securities available for sale— 5,408 2,252 28,326 35,986 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities— — — 8,077 8,077 
Asset-backed securities— 392 — — 392 
Total debt securities held to maturity— 392 — 8,077 8,469 
Total amortized cost of debt securities$— $5,800 $2,252 $36,403 $44,455 
Fair value:
U.S. Treasury and other$— $3,054 $1,015 $— $4,069 
State and political subdivisions— — — 1 1 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities— 2,202 1,070 26,481 29,753 
Other/non-agency— — — 261 261 
Collateralized loan obligations— — 124 — 124 
Total debt securities available for sale— 5,256 2,209 26,743 34,208 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities— — — 7,129 7,129 
Asset-backed securities— 386 — — 386 
Total debt securities held to maturity— 386 — 7,129 7,515 
Total fair value of debt securities$— $5,642 $2,209 $33,872 $41,723 
Taxable interest income from investment securities as presented in the Consolidated Statements of Operations was $418 million and $399 million for the three months ended March 31, 2025 and 2024, respectively.
The following table presents realized gains and losses on the sale of securities:
Three Months Ended March 31,
(dollars in millions)20252024
Gains$7 $5 
Losses— — 
Securities gains, net$7 $5 
At March 31, 2025 and December 31, 2024, debt securities with a carrying value of $3.6 billion and $4.0 billion, respectively, were pledged to secure public deposits, trust funds, FHLB borrowing capacity, repurchase agreements, derivative contracts and for other purposes as required or permitted by law.
Impairment
The Company evaluated its existing HTM portfolio as of March 31, 2025 and concluded that 95% of HTM securities met the zero expected credit loss criteria and, therefore, no ACL was recognized. Lifetime expected credit losses on the remainder of the HTM portfolio were determined to be insignificant based on the modeling of the Company’s credit loss position in the securities. The Company monitors the credit exposure through the use of credit quality indicators. For these securities, the Company uses external credit ratings or an internally derived credit rating when an external rating is not available. All securities were determined to be investment grade at March 31, 2025.
The following tables present AFS debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position:
March 31, 2025
Less than 12 Months12 Months or LongerTotal
(dollars in millions)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. Treasury and other$— $— $2,582 ($91)$2,582 ($91)
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities6,836 (189)14,089 (1,583)20,925 (1,772)
Other/non-agency— — 261 (11)261 (11)
Total mortgage-backed securities6,836 (189)14,350 (1,594)21,186 (1,783)
Total$6,836 ($189)$16,932 ($1,685)$23,768 ($1,874)
December 31, 2024
Less than 12 Months12 Months or LongerTotal
(dollars in millions)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. Treasury and other$— $— $2,544 ($109)$2,544 ($109)
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities9,560 (265)14,304 (1,870)23,864 (2,135)
Other/non-agency— — 260 (13)260 (13)
Total mortgage-backed securities9,560 (265)14,564 (1,883)24,124 (2,148)
Total$9,560 ($265)$17,108 ($1,992)$26,668 ($2,257)
The Company does not currently have the intent to sell these debt securities, and it is not more likely than not that the Company will be required to sell these debt securities prior to recovery of their amortized cost bases. The Company determined that credit losses are not expected to be incurred on the AFS debt securities identified with unrealized losses as of March 31, 2025. The unrealized losses on these debt securities reflect non-credit-related factors driven by changes in interest rates. Therefore, the Company determined that these debt securities are not impaired.