SECURITIES (Tables)

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

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


	September 30, 2025				December 31, 2024
(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	$4,563	$23	($72)	$4,514	$3,631	$3	($109)	$3,525
State and political subdivisions	1	—	—	1	1	—	—	1
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	31,865	160	(1,474)	30,551	30,897	33	(2,135)	28,795
Other/non-agency	268	—	(5)	263	273	—	(13)	260
Total mortgage-backed securities	32,133	160	(1,479)	30,814	31,170	33	(2,148)	29,055
Collateralized loan obligations	90	—	—	90	184	—	—	184
Total debt securities available for sale, at fair value	$36,787	$183	($1,551)	$35,419	$34,986	$36	($2,257)	$32,765
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	$7,767	$1	($830)	$6,938	$8,187	$—	($1,051)	$7,136
Total mortgage-backed securities	7,767	1	(830)	6,938	8,187	—	(1,051)	7,136
Asset-backed securities	357	—	—	357	412	1	(9)	404
Total debt securities held to maturity	$8,124	$1	($830)	$7,295	$8,599	$1	($1,060)	$7,540
Equity securities, at cost(2)	$710	$—	$—	$710	$710	$—	$—	$710
Equity securities, at fair value(2)	286	—	—	286	220	—	—	220

(1) Excludes portfolio level basis adjustments of $37 million and $(75) million, respectively, for securities designated in active fair value hedge relationships under the portfolio layer method at September 30, 2025 and December 31, 2024.

(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, 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 Less	After 1 Year through 5 Years	After 5 Years through 10 Years	After 10 Years	Total
Amortized cost:
U.S. Treasury and other	$—	$3,380	$1,183	$—	$4,563
State and political subdivisions	—	—	—	1	1
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	100	2,274	1,120	28,371	31,865
Other/non-agency	—	—	—	268	268
Collateralized loan obligations	—	—	90	—	90
Total debt securities available for sale	100	5,654	2,393	28,640	36,787
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	7,767	7,767
Asset-backed securities	—	357	—	—	357
Total debt securities held to maturity	—	357	—	7,767	8,124
Total amortized cost of debt securities	$100	$6,011	$2,393	$36,407	$44,911

Fair value:
U.S. Treasury and other	$—	$3,311	$1,203	$—	$4,514
State and political subdivisions	—	—	—	1	1
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	99	2,235	1,073	27,144	30,551
Other/non-agency	—	—	—	263	263
Collateralized loan obligations	—	—	90	—	90
Total debt securities available for sale	99	5,546	2,366	27,408	35,419
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	6,938	6,938
Asset-backed securities	—	357	—	—	357
Total debt securities held to maturity	—	357	—	6,938	7,295
Total fair value of debt securities	$99	$5,903	$2,366	$34,346	$42,714

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)	2025	2024	2025	2024
Gains	$2	$9	$14	$14
Losses	—	—	—	—
Securities gains, net	$2	$9	$14	$14

Schedule of unrealized loss on investments

The following tables present AFS debt securities with fair values below their respective carrying values, disclosed by the length of time the individual securities have been in a continuous unrealized loss position:


	September 30, 2025
	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	$—	$—	$2,613	($72)	$2,613	($72)

Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	4,760	(171)	13,230	(1,303)	17,990	(1,474)
Other/non-agency	—	—	263	(5)	263	(5)
Total mortgage-backed securities	4,760	(171)	13,493	(1,308)	18,253	(1,479)

Total	$4,760	($171)	$16,106	($1,380)	$20,866	($1,551)


	December 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	$—	$—	$2,544	($109)	$2,544	($109)
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	9,560	(265)	14,304	(1,870)	23,864	(2,135)
Other/non-agency	—	—	260	(13)	260	(13)
Total mortgage-backed securities	9,560	(265)	14,564	(1,883)	24,124	(2,148)

Total	$9,560	($265)	$17,108	($1,992)	$26,668	($2,257)