SECURITIES

3 Months Ended

Mar. 31, 2026

Investments, Debt and Equity Securities [Abstract]

NOTE 2 - SECURITIES

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


	March 31, 2026				December 31, 2025
(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	$4,385	$6	($57)	$4,334	$3,163	$10	($50)	$3,123
State and political subdivisions	1	—	—	1	1	—	—	1
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	32,986	134	(1,445)	31,675	33,379	215	(1,374)	32,220
Other/non-agency	265	—	(3)	262	268	—	(4)	264
Total mortgage-backed securities	33,251	134	(1,448)	31,937	33,647	215	(1,378)	32,484
Collateralized loan obligations	89	—	—	89	89	—	—	89
Total debt securities available for sale, at fair value	$37,726	$140	($1,505)	$36,361	$36,900	$225	($1,428)	$35,697
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	$7,484	$1	($801)	$6,684	$7,595	$2	($785)	$6,812
Total mortgage-backed securities	7,484	1	(801)	6,684	7,595	2	(785)	6,812
Asset-backed securities	316	—	(2)	314	338	—	—	338
Total debt securities held to maturity	$7,800	$1	($803)	$6,998	$7,933	$2	($785)	$7,150
Equity securities, at cost(2)	$836	$—	$—	$836	$807	$—	$—	$807
Equity securities, at fair value(2)	336	—	—	336	317	—	—	317

(1) Excludes portfolio level basis adjustments of $(4) million and $17 million, respectively, for securities designated in active fair value hedge relationships under the portfolio layer method at March 31, 2026 and December 31, 2025.

(2) Included in Other assets in the Consolidated Balance Sheets.

Accrued interest receivable on debt securities totaled $138 million and $139 million as of March 31, 2026 and December 31, 2025, 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, 2026. 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	$499	$1,928	$1,958	$—	$4,385
State and political subdivisions	—	—	—	1	1
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	209	2,309	1,352	29,116	32,986
Other/non-agency	—	—	—	265	265
Collateralized loan obligations	—	—	89	—	89
Total debt securities available for sale	708	4,237	3,399	29,382	37,726
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	7,484	7,484
Asset-backed securities	—	316	—	—	316
Total debt securities held to maturity	—	316	—	7,484	7,800
Total amortized cost of debt securities	$708	$4,553	$3,399	$36,866	$45,526

Fair value:
U.S. Treasury and other	$494	$1,888	$1,952	$—	$4,334
State and political subdivisions	—	—	—	1	1
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	208	2,269	1,302	27,896	31,675
Other/non-agency	—	—	—	262	262
Collateralized loan obligations	—	—	89	—	89
Total debt securities available for sale	702	4,157	3,343	28,159	36,361
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	6,684	6,684
Asset-backed securities	—	314	—	—	314
Total debt securities held to maturity	—	314	—	6,684	6,998
Total fair value of debt securities	$702	$4,471	$3,343	$34,843	$43,359

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


	Three Months Ended March 31,
(dollars in millions)	2026	2025
Gains	$7	$7
Losses	—	—
Securities gains, net	$7	$7

At March 31, 2026 and December 31, 2025, debt securities with a carrying value of $3.7 billion and $3.4 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

The Company evaluated its existing HTM portfolio as of March 31, 2026 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 March 31, 2026.

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:


	March 31, 2026
	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	$1,498	($12)	$1,984	($45)	$3,482	($57)

Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	8,630	(241)	12,285	(1,204)	20,915	(1,445)
Other/non-agency	—	—	262	(3)	262	(3)
Total mortgage-backed securities	8,630	(241)	12,547	(1,207)	21,177	(1,448)

Total	$10,128	($253)	$14,531	($1,252)	$24,659	($1,505)


	December 31, 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	$—	$—	$1,990	($50)	$1,990	($50)
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	3,415	(164)	13,098	(1,210)	16,513	(1,374)
Other/non-agency	—	—	263	(4)	263	(4)
Total mortgage-backed securities	3,415	(164)	13,361	(1,214)	16,776	(1,378)

Total	$3,415	($164)	$15,351	($1,264)	$18,766	($1,428)

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 March 31, 2026. 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.