Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2025

The table below summarizes the changes in AOCL, net of tax:


	Debt Securities AFS		Cash Flow Hedges		Pension and Post-retirement Plans		Total
Three Months Ended June 30, 2025
Balance, beginning of period	$	(560)	$	40	$	(33)	$	(553)
Other comprehensive income (loss) before reclassification, net of tax(1)	16		—		—		16
Amounts reclassified from AOCL, net of tax	—		(5)		—		(5)
Other comprehensive income (loss), net of tax	16		(5)		—		11
Balance, end of period	$	(544)	$	35	$	(33)	$	(542)
Three Months Ended June 30, 2024
Balance, beginning of period	$	(651)	$	61	$	(27)	$	(617)
Other comprehensive income (loss) before reclassification, net of tax(1)	(23)		39		(2)		14
Amounts reclassified from AOCL, net of tax	—		(12)		1		(11)
Other comprehensive income (loss), net of tax	(23)		27		(1)		3
Balance, end of period	$	(674)	$	88	$	(28)	$	(614)

Six Months Ended June 30, 2025
Balance, beginning of period	$	(653)	$	47	$	(34)	$	(640)
Other comprehensive income (loss) before reclassification, net of tax(2)	109		—		—		109
Amounts reclassified from AOCL, net of tax	—		(12)		1		(11)
Other comprehensive income (loss), net of tax	109		(12)		1		98
Balance, end of period	$	(544)	$	35	$	(33)	$	(542)
Six Months Ended June 30, 2024
Balance, beginning of period	$	(581)	$	10	$	(28)	$	(599)
Other comprehensive income (loss) before reclassification, net of tax(2)	(93)		107		(2)		12
Amounts reclassified from AOCL, net of tax	—		(29)		2		(27)
Other comprehensive income (loss), net of tax	(93)		78		—		(15)
Balance, end of period	$	(674)	$	88	$	(28)	$	(614)

(1)During the three months ended June 30, 2025 and 2024, the tax impact on amount of gain (loss) recognized in AOCL on cash flow hedges was immaterial and $(13) million, respectively. During the three months ended June 30, 2025 and 2024, the tax impact on amount of gain (loss) recognized in AOCL on debt securities AFS was $(6) million and $8 million, respectively.

(2)During the six months ended June 30, 2025 and 2024, the tax impact on amount of gain (loss) recognized in AOCL on cash flow hedges was immaterial and $(36) million, respectively. During the six months ended June 30, 2025 and 2024, the tax impact on amount of gain (loss) recognized in debt securities AFS was $(38) million and $31 million, respectively.

At June 30, 2025, we had $35 million (net-of-tax) of unrealized gains related to terminated cash flow hedges recorded in AOCL. We had $47 million (net-of-tax) of unrealized gains related to terminated cash flow hedges recorded in AOCL at December 31, 2024.

Amounts reported in AOCL related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate borrowings. We will recognize $28 million of lower interest expense over the next rolling twelve-month period related to the reclassification.

The following table summarizes the amounts reclassified from AOCL, net of tax:


	Amount Reclassified out of AOCL(1)
	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024		Affected Line Item in the Condensed Consolidated Statements of (Loss) Income



Cash Flow Hedges:
Realized gain on cash flow hedges	$	7	$	16	$	16	$	39	Interest expense - Borrowed funds
Tax benefit	(2)		(4)		(4)		(10)		Income tax (expense)
	$	5	$	12	$	12	$	29
Pension and Post-retirement Plans:

Amortization of actuarial losses	(1)		(1)		(2)		(2)		General and administrative
Tax benefit	1		—		1		—		Income tax (expense)
	$	—	$	(1)	$	(1)	$	(2)
Amounts reclassified from AOCL, net of tax	$	5	$	11	$	11	$	27

(1)Amounts in parentheses indicate expense items.