XML 31 R10.htm IDEA: XBRL DOCUMENT v3.25.4
SECURITIES
 12 Months Ended
Dec. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
NOTE 2 - SECURITIES
Investments include debt, equity, and other securities. The Company classifies debt securities as AFS, HTM, or trading based on management’s intent to hold to maturity at the time of purchase. Management reserves the right to change the initial classification of a security based on its intent to hold to maturity or as permitted by periodic changes in accounting guidance. Equity securities are recorded at fair value or at cost if there is not a readily determinable fair value.
Debt securities that will be held for indefinite periods of time and may be sold in response to changes in liquidity, interest rates, or prepayment risk, among other factors, are classified as AFS and reported at fair value, with unrealized gains and losses, net of taxes, reported in AOCI. Gains and losses on the sale of AFS securities are recognized in Noninterest income in the Consolidated Statements of Operations and are computed using the specific identification method.
Debt securities that the Company has the ability and intent to hold to maturity are classified as HTM and reported at amortized cost. Transfers of debt securities to the HTM classification are recognized at fair value at the date of transfer.
Interest income for AFS and HTM debt securities is recorded on the accrual basis, including the amortization of premiums and the accretion of discounts, utilizing the effective interest method over the estimated lives of the individual securities. The Company uses actual prepayment experience and future prepayment estimates to determine the constant effective yield necessary to apply the effective interest method of income recognition. Future prepayment estimates are based on the underlying collateral characteristics of each security and are derived from market sources. Judgment is involved to determine prepayment expectations, as well as to change those expectations in response to changes in interest rates and macroeconomic conditions.
Securities classified as trading are held principally for sale in the near-term and carried at fair value, with changes in fair value recognized in earnings. Realized and unrealized gains and losses on such securities are reported in Noninterest income in the Consolidated Statements of Operations.
Equity securities primarily consist of FHLB and FRB stock carried at cost and money market mutual fund investments held by the Company’s broker-dealers carried at fair value, with changes in fair value recognized in Noninterest income. Equity securities are recorded in Other assets in the Consolidated Balance Sheets, with those carried at cost reviewed annually for impairment, at a minimum. Valuation adjustments, to the extent necessary, are reported in Noninterest income in the Consolidated Statements of Operations.
The following table presents the major components of securities at amortized cost and fair value:
December 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$3,163 $10 ($50)$3,123 $3,631 $3 ($109)$3,525 
State and political subdivisions1 — — 1 1 — — 1 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities33,379 215 (1,374)32,220 30,897 33 (2,135)28,795 
Other/non-agency268 — (4)264 273 — (13)260 
Total mortgage-backed
securities		33,647 215 (1,378)32,484 31,170 33 (2,148)29,055 
Collateralized loan obligations89 — — 89 184 — — 184 
Total debt securities available for sale, at fair value$36,900 $225 ($1,428)$35,697 $34,986 $36 ($2,257)$32,765 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities$7,595 $2 ($785)$6,812 $8,187 $— ($1,051)$7,136 
Total mortgage-backed securities
7,595 2 (785)6,812 8,187 — (1,051)7,136 
Asset-backed securities338 — — 338 412 1 (9)404 
Total debt securities held to maturity$7,933 $2 ($785)$7,150 $8,599 $1 ($1,060)$7,540 
Equity securities, at cost(2)
$807 $— $— $807 $710 $— $— $710 
Equity securities, at fair value(2)
317 — — 317 220 — — 220 
(1) Excludes portfolio level basis adjustments of $17 million and $(75) million, respectively, for securities designated in active fair value hedge relationships under the portfolio layer method at December 31, 2025 and 2024.
(2) Included in Other assets in the Consolidated Balance Sheets.
Accrued interest receivable on debt securities totaled $139 million and $125 million as of December 31, 2025 and 2024, respectively, and is included in Other assets in the Consolidated Balance Sheets.
The following table presents the amortized cost and fair value of debt securities by contractual maturity as of December 31, 2025. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties.
Distribution of Maturities
(dollars in millions)
1 Year or Less
After 1 Year through 5 YearsAfter 5 Years through 10 Years
After 10 Years
Total
Amortized cost:
U.S. Treasury and other$— $2,359 $804 $— $3,163 
State and political subdivisions— — — 1 1 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities110 2,305 1,018 29,946 33,379 
Other/non-agency— — — 268 268 
Collateralized loan obligations— — 89 — 89 
Total debt securities available for sale110 4,664 1,911 30,215 36,900 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities— — — 7,595 7,595 
Asset-backed securities— 338 — — 338 
Total debt securities held to maturity— 338 — 7,595 7,933 
Total amortized cost of debt securities$110 $5,002 $1,911 $37,810 $44,833 
Fair value:
U.S. Treasury and other$— $2,311 $812 $— $3,123 
State and political subdivisions— — — 1 1 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities109 2,275 972 28,864 32,220 
Other/non-agency— — — 264 264 
Collateralized loan obligations— — 89 — 89 
Total debt securities available for sale109 4,586 1,873 29,129 35,697 
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities— — — 6,812 6,812 
Asset-backed securities— 338 — — 338 
Total debt securities held to maturity— 338 — 6,812 7,150 
Total fair value of debt securities$109 $4,924 $1,873 $35,941 $42,847 
Taxable interest income from investment securities as presented in the Consolidated Statements of Operations was $1.7 billion for each of the years ended December 31, 2025 and 2024, and $1.2 billion for the year ended December 31, 2023.
The following table presents realized gains and losses on the sale of securities:
Year Ended December 31,
(dollars in millions)202520242023
Gains
$33 $32 $36 
Losses(11)(14)(8)
Securities gains, net$22 $18 $28 
At December 31, 2025 and 2024, debt securities with a carrying value of $3.4 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.
Impairment
Upon purchase, and at each subsequent measurement date, the Company is required to evaluate HTM securities for risk of loss over their life and establish an associated reserve, if necessary. Recognition of a reserve for expected credit losses is not required if the Company does not expect to realize a loss (commonly referred to as “zero expected credit losses”). The Company evaluated its existing HTM portfolio as of December 31, 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 December 31, 2025.
AFS debt securities are reviewed for impairment at the individual security level on a quarterly basis, or more frequently if a potential loss triggering event occurs. The initial indicator of impairment for an AFS debt security is a decline in fair value below its amortized cost basis, at which point an impairment loss would be recognized if management has the intent to sell the security or if it is more likely than not it will be required to sell the security before recovery of its amortized cost basis.
Estimating the recovery of the amortized cost basis of a debt security is based on an assessment of the present value of the cash flows expected to be collected, discounted at the security’s original effective yield. If the present value of the cash flows is less than the amortized cost basis, then impairment equal to the shortfall in cash flows has occurred, and the Company must evaluate whether the impairment is attributable to credit-related factors. If credit-related factors exist, a credit-related impairment has occurred regardless of the Company’s intent to hold the security until it recovers.
The credit-related portion of impairment is recognized as provision expense through the establishment of an allowance for AFS securities, to the extent the allowance does not reduce the carrying value of the AFS security below its current fair value. The remaining non-credit related portion of impairment is recognized in OCI. Improvement in credit losses in subsequent periods results in a reversal of the allowance for AFS securities and a corresponding decrease to provision expense, to the extent the allowance does not become negative. Accrued interest receivable on AFS debt securities is excluded from the balances used to calculate the allowance for AFS securities and is immediately reversed against interest income when it is deemed uncollectible.
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:
December 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
$— $— $1,990 ($50)$1,990 ($50)
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities3,415 (164)13,098 (1,210)16,513 (1,374)
Other/non-agency— — 263 (4)263 (4)
Total mortgage-backed securities3,415 (164)13,361 (1,214)16,776 (1,378)
Total$3,415 ($164)$15,351 ($1,264)$18,766 ($1,428)
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 December 31, 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.