Capital

12 Months Ended

Dec. 31, 2024

Broker-Dealer [Abstract]

Capital

Capital

The Bank is subject to regulation, examination, and supervision by the OCC and the Federal Reserve (the “Regulators”). The Bank is also governed by numerous federal and state laws and regulations, including the FDIC Improvement Act of 1991, which established five categories of capital adequacy ranging from “well capitalized” to “critically undercapitalized.” Such classifications are used by the FDIC to determine various matters, including prompt corrective action and each institution’s FDIC deposit insurance premium assessments. Capital amounts and classifications are also subject to the Regulators’ qualitative judgments about the components of capital and risk weightings, among other factors.

The quantitative measures established to ensure capital adequacy require that banks maintain minimum amounts and ratios of leverage capital to average assets and of common equity tier 1 capital, tier 1 capital, and total capital to risk-weighted assets (as such measures are defined in the regulations). At December 31, 2024, our capital measures continued to exceed the minimum federal requirements for a bank holding company and for a bank. The following tables sets forth our common equity tier 1, tier 1 risk-based, total risk-based, and leverage capital amounts and ratios on a consolidated basis and for the Bank on a stand-alone basis, as well as the respective minimum regulatory capital requirements, at that date:

The following table presents the actual capital amounts and ratios for the Company:

	Risk-Based Capital
December 31, 2024	Common Equity Tier 1				Tier 1				Total				Leverage Capital
(dollars in millions)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital	$	7,997	11.83	%	$	8,501	12.57	%	$	10,238	15.14	%	$	8,501	7.68	%
Minimum for capital adequacy purposes	3,043		4.50		4,057		6.00		5,409		8.00		4,428		4.00
Excess	$	4,954	7.33	%	$	4,444	6.57	%	$	4,829	7.14	%	$	4,073	3.68	%
December 31, 2023
Total capital	$	8,009	9.05	%	$	8,512	9.62	%	$	10,415	11.77	%	$	8,512	7.75	%
Minimum for capital adequacy purposes	3,983		4.50		5,310		6.00		7,081		8.00		4,392		4.00
Excess	$	4,026	4.55	%	$	3,202	3.62	%	$	3,334	3.77	%	$	4,120	3.75	%

The following table presents the actual capital amounts and ratios for the Bank:

	Risk-Based Capital
December 31, 2024	Common Equity Tier 1				Tier 1				Total				Leverage Capital
(dollars in millions)	Amount		Ratio		Amount		Ratio		Amount		Ratio		Amount		Ratio
Total capital	$	8,912	13.21	%	$	8,912	13.21	%	$	9,760	14.47	%	$	8,912	8.05	%
Minimum for capital adequacy purposes	3,036		4.50		4,048		6.00		5,398		8.00		4,426		4.00
Excess	$	5,876	8.71	%	$	4,864	7.21	%	$	4,362	6.47	%	$	4,486	4.05	%
December 31, 2023
Total capital	$	9,305	10.52	%	$	9,305	10.52	%	$	10,271	11.61	%	$	9,305	8.48	%
Minimum for capital adequacy purposes	3,980		4.50		5,307		6.00		7,076		8.00		4,389		4.00
Excess	$	5,325	6.02	%	$	3,998	4.52	%	$	3,195	3.61	%	$	4,916	4.48	%

The Bank also exceeded the minimum capital requirements to be categorized as “Well Capitalized.” To be categorized as well capitalized, a bank must maintain a minimum common equity tier 1 ratio of 6.50 percent; a minimum tier 1 risk-based capital ratio of 8 percent; a minimum total risk-based capital ratio of 10 percent; and a minimum leverage capital ratio of 5 percent. At December 31, 2024, our total risk-based capital ratio exceeded the minimum requirement for capital adequacy purposes by 714 basis points and the fully phased-in capital conservation buffer by 464 basis points.