Investment Securities (Tables)

6 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Summary of AFS and HTM Securities

The following tables summarize the Company’s AFS and HTM securities:

June 30, 2025 (Dollars in millions)	Amortized Cost		Gross Unrealized				Net unrealized gains (losses)		Fair Value
			Gains		Losses
AFS securities:
U.S. Treasury	$	13,389	$	114	$	(32)	$	82	$	13,471
GSE	459		3		(27)		(24)		435
Agency MBS – residential	54,173		116		(4,834)		(4,718)		49,455
Agency MBS – commercial	3,247		6		(600)		(594)		2,653
States and political subdivisions	369		11		(19)		(8)		361
Other	15		—		—		—		15
Total AFS securities, excluding portfolio level basis adjustments	71,652		250		(5,512)		(5,262)		66,390
Portfolio level basis adjustments(1)	89						(89)		—
Total AFS securities	$	71,741	$	250	$	(5,512)	$	(5,351)	$	66,390
HTM securities:
Agency MBS – residential	$	48,973	$	—	$	(9,362)	$	(9,362)	$	39,611
December 31, 2024 (Dollars in millions)	Amortized Cost		Gross Unrealized				Net unrealized gains (losses)		Fair Value
			Gains		Losses
AFS securities:
U.S. Treasury	$	14,279	$	156	$	(24)	$	132	$	14,411
GSE	441		1		(39)		(38)		403
Agency MBS – residential	55,769		6		(5,816)		(5,810)		49,959
Agency MBS – commercial	2,938		—		(645)		(645)		2,293
States and political subdivisions	390		11		(19)		(8)		382
Other	16		—		—		—		16
Total AFS securities, excluding portfolio level basis adjustments	73,833		174		(6,543)		(6,369)		67,464
Portfolio level basis adjustments(1)	(385)						385		—
Total AFS securities	$	73,448	$	174	$	(6,543)	$	(5,984)	$	67,464
HTM securities:
Agency MBS – residential	$	50,640	$	—	$	(10,354)	$	(10,354)	$	40,286

(1)Represents fair value hedge basis adjustments related to active portfolio layer method hedges, which are not allocated to individual securities. For additional information, refer to “Note 16. Derivative Financial Instruments.”

Schedule of MBS issued by FNMA and FHLMC that exceed 10% of shareholders equity

The amortized cost and estimated fair value of certain MBS securities issued by FNMA and FHLMC that exceeded 10% of shareholders’ equity are shown in the table below:

	June 30, 2025
(Dollars in millions)	Amortized Cost		Fair Value
FNMA	$	29,017	$	24,713
FHLMC	29,349		24,842

Schedule of Amortized Cost and Estimated Fair Value by Contractual Maturity

The amortized cost and estimated fair value of the securities portfolio by contractual maturity are shown in the following table. The expected life of MBS may be shorter than the contractual maturities because borrowers have the right to prepay their obligations with or without penalties.

	Amortized Cost										Fair Value
June 30, 2025 (Dollars in millions)	Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total		Due in one year or less		Due after one year through five years		Due after five years through ten years		Due after ten years		Total
AFS securities:
U.S. Treasury	$	4,362	$	7,859	$	430	$	738	$	13,389	$	4,383	$	7,944	$	428	$	716	$	13,471
GSE	—		—		1		458		459		—		—		1		434		435
Agency MBS – residential	—		1		40		54,132		54,173		—		1		40		49,414		49,455
Agency MBS – commercial	—		169		255		2,823		3,247		—		171		254		2,228		2,653
States and political subdivisions	21		66		147		135		369		21		68		146		126		361
Other	—		7		8		—		15		—		7		8		—		15
Total AFS securities	$	4,383	$	8,102	$	881	$	58,286	$	71,652	$	4,404	$	8,191	$	877	$	52,918	$	66,390
HTM securities:
Agency MBS – residential	$	—	$	—	$	—	$	48,973	$	48,973	$	—	$	—	$	—	$	39,611	$	39,611

Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value

The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position:

	Less than 12 months				12 months or more				Total
June 30, 2025 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
AFS securities:
U.S. Treasury	$	2,731	$	(21)	$	242	$	(11)	$	2,973	$	(32)
GSE	105		(2)		208		(25)		313		(27)
Agency MBS – residential	10,300		(122)		25,721		(4,712)		36,021		(4,834)
Agency MBS – commercial	35		—		2,118		(600)		2,153		(600)
States and political subdivisions	178		(16)		37		(3)		215		(19)
Other	8		—		7		—		15		—
Total	$	13,357	$	(161)	$	28,333	$	(5,351)	$	41,690	$	(5,512)
HTM securities:
Agency MBS – residential	$	—	$	—	$	39,611	$	(9,362)	$	39,611	$	(9,362)
	Less than 12 months				12 months or more				Total
December 31, 2024 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
AFS securities:
U.S. Treasury	$	1,579	$	(6)	$	352	$	(18)	$	1,931	$	(24)
GSE	146		(4)		230		(35)		376		(39)
Agency MBS – residential	20,546		(322)		26,788		(5,494)		47,334		(5,816)
Agency MBS – commercial	105		(1)		2,111		(644)		2,216		(645)
States and political subdivisions	20		(1)		202		(18)		222		(19)
Other	—		—		7		—		7		—
Total	$	22,396	$	(334)	$	29,690	$	(6,209)	$	52,086	$	(6,543)
HTM securities:
Agency MBS – residential	$	—	$	—	$	40,286	$	(10,354)	$	40,286	$	(10,354)

Schedule of Realized Gain (Loss)

The following table presents gross securities gains and losses recognized in earnings:

(Dollars in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Gross realized gains	$	—	$	—	$	2	$	—
Gross realized losses(1)	(18)		(6,650)		(21)		(6,650)
Securities gains (losses), net	$	(18)	$	(6,650)	$	(19)	$	(6,650)

(1)Includes $485 million pre-tax gain on terminated hedges for the three and six months ended June 30, 2024.