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SECURITIES
 9 Months Ended
Sep. 30, 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:
September 30, 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$4,563 $23 ($72)$4,514 $3,631 $3 ($109)$3,525 
State and political subdivisions1 — — 1 1 — — 1 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities31,865 160 (1,474)30,551 30,897 33 (2,135)28,795 
Other/non-agency268 — (5)263 273 — (13)260 
Total mortgage-backed securities32,133 160 (1,479)30,814 31,170 33 (2,148)29,055 
Collateralized loan obligations90 — — 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 securities7,767 1 (830)6,938 8,187 — (1,051)7,136 
Asset-backed securities357 — — 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.
Accrued interest receivable on debt securities totaled $135 million and $125 million as of September 30, 2025 and December 31, 2024, respectively, and is included in Other assets in the Consolidated Balance Sheets.
The following table presents the amortized cost and fair value of debt securities by contractual maturity as of September 30, 2025. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties.
Distribution of Maturities
(dollars in millions)1 Year or LessAfter 1 Year through 5 YearsAfter 5 Years through 10 YearsAfter 10 YearsTotal
Amortized cost:
U.S. Treasury and other$— $3,380 $1,183 $— $4,563 
State and political subdivisions— — — 1 1 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities100 2,274 1,120 28,371 31,865 
Other/non-agency— — — 268 268 
Collateralized loan obligations— — 90 — 90 
Total debt securities available for sale100 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 entities99 2,235 1,073 27,144 30,551 
Other/non-agency— — — 263 263 
Collateralized loan obligations— — 90 — 90 
Total debt securities available for sale99 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 
Taxable interest income from investment securities as presented in the Consolidated Statements of Operations was $433 million and $423 million for the three months ended September 30, 2025 and 2024, respectively, and $1.3 billion and $1.2 billion for the nine months ended September 30, 2025 and 2024, respectively.
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)2025202420252024
Gains$2 $9 $14 $14 
Losses— — — — 
Securities gains, net$2 $9 $14 $14 
At September 30, 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, and derivative contracts, and for other purposes as required or permitted by law.
Retained interests from the sale and securitization of originated mortgage loans totaled $87 million during the three and nine months ended September 30, 2025. Retained interests from the sale and securitization of originated mortgage loans totaled $48 million and $181 million, respectively, during the three and nine months ended September 30, 2024. The debt securities received from the issuers, FNMA and FHLMC, include a substantive guarantee and are classified as Debt securities available for sale in the Consolidated Balance Sheets.
Impairment
The Company evaluated its existing HTM portfolio as of September 30, 2025 and concluded that 96% of HTM securities met the zero expected credit loss criteria and, therefore, no ACL was recognized. Lifetime expected credit losses on the remainder of the HTM portfolio were determined to be insignificant based on the modeling of the Company’s credit loss position in the securities. The Company monitors the credit exposure through the use of credit quality indicators. For these securities, the Company uses external credit ratings or an internally derived credit rating when an external rating is not available. All securities were determined to be investment grade at September 30, 2025.
The following tables present AFS debt securities with fair values below their respective carrying values, disclosed by the length of time the individual securities have been in a continuous unrealized loss position:
September 30, 2025
Less than 12 Months12 Months or LongerTotal
(dollars in millions)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. Treasury and other$— $— $2,613 ($72)$2,613 ($72)
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities4,760 (171)13,230 (1,303)17,990 (1,474)
Other/non-agency— — 263 (5)263 (5)
Total mortgage-backed securities4,760 (171)13,493 (1,308)18,253 (1,479)
Total$4,760 ($171)$16,106 ($1,380)$20,866 ($1,551)
December 31, 2024
Less than 12 Months12 Months or LongerTotal
(dollars in millions)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. Treasury and other$— $— $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 AFS debt securities, and it is not more likely than not that the Company will be required to sell them 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 September 30, 2025. The unrealized losses on these AFS debt securities reflect non-credit-related factors driven by changes in interest rates. Therefore, the Company determined that these AFS debt securities are not impaired.