ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

NOTE 16 — ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

The following table details the components of Accumulated Other Comprehensive (Loss) Income (“AOCI”):

Components of Accumulated Other Comprehensive (Loss) Income

dollars in millions	March 31, 2024						December 31, 2023
	Pretax		Income Taxes		Net of Income Taxes		Pretax		Income Taxes		Net of Income Taxes
Unrealized loss on securities available for sale	$	(876)	$	208	$	(668)	$	(752)	$	175	$	(577)
Unrealized loss on securities available for sale transferred to held to maturity	(7)		2		(5)		(7)		2		(5)
Defined benefit pension items	122		(31)		91		122		(31)		91
Total accumulated other comprehensive loss	$	(761)	$	179	$	(582)	$	(637)	$	146	$	(491)

The following table details the changes in the components of AOCI, net of income taxes:

Changes in Accumulated Other Comprehensive (Loss) Income by Component

dollars in millions	Unrealized (loss) gain on securities available for sale		Unrealized loss on securities available for sale transferred to held to maturity		Net change in defined benefit pension items		Total accumulated other comprehensive (loss) income
Balance as of December 31, 2023	$	(577)	$	(5)	$	91	$	(491)
AOCI activity before reclassifications	(91)		—		—		(91)
Amounts reclassified from AOCI to earnings	—		—		—		—
Other comprehensive loss for the period	(91)		—		—		(91)
Balance as of March 31, 2024	$	(668)	$	(5)	$	91	$	(582)
Balance as of December 31, 2022	$	(739)	$	(6)	$	10	$	(735)
AOCI activity before reclassifications	45		—		8		53
Amounts reclassified from AOCI to earnings	13		—		—		13
Other comprehensive income for the period	58		—		8		66
Balance as of March 31, 2023	$	(681)	$	(6)	$	18	$	(669)

Other Comprehensive Income

The amounts included in the Consolidated Statements of Comprehensive Income are net of income taxes. The following table presents the pretax and after tax components of other comprehensive income:

Other Comprehensive Income (Loss) by Component

dollars in millions	Three Months Ended March 31,
	2024						2023
	Pretax		Income Taxes		Net of Income Taxes		Pretax		Income Taxes		Net of Income Taxes		Income Statement Line Items
Unrealized (loss) gain on securities available for sale:
AOCI activity before reclassifications	$	(124)	$	33	$	(91)	$	60	$	(15)	$	45
Amounts reclassified from AOCI to earnings	—		—		—		18		(5)		13		$14 million realized loss on sale of investment securities available for sale, net; $4 million provision for credit losses
Other comprehensive (loss) gain on securities available for sale	$	(124)	$	33	$	(91)	$	78	$	(20)	$	58
Defined benefit pension items:
Actuarial gain	$	—	$	—	$	—	$	10	$	(2)	$	8
Amounts reclassified from AOCI to earnings	—		—		—		—		—		—
Other comprehensive income for defined benefit pension items	$	—	$	—	$	—	$	10	$	(2)	$	8
Total other comprehensive (loss) income	$	(124)	$	33	$	(91)	$	88	$	(22)	$	66