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v3.25.1

SECURITIES | 3 Months Ended
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Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | NOTE 2 - SECURITIES The following table presents the major components of securities at amortized cost and fair value:
| March 31, 2025 |  | December 31, 2024
(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 | $4,145 |  | $15 |  | ($91) |  | $4,069 |  |  | $3,631 |  | $3 |  | ($109) |  | $3,525 |
State and political subdivisions | 1 |  | — |  | — |  | 1 |  |  | 1 |  | — |  | — |  | 1 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
Federal agencies and U.S. government sponsored entities | 31,444 |  | 81 |  | (1,772) |  | 29,753 |  |  | 30,897 |  | 33 |  | (2,135) |  | 28,795 |
Other/non-agency | 272 |  | — |  | (11) |  | 261 |  |  | 273 |  | — |  | (13) |  | 260 |
Total mortgage-backed securities | 31,716 |  | 81 |  | (1,783) |  | 30,014 |  |  | 31,170 |  | 33 |  | (2,148) |  | 29,055 |
Collateralized loan obligations | 124 |  | — |  | — |  | 124 |  |  | 184 |  | — |  | — |  | 184 |
Total debt securities available for sale, at fair value | $35,986 |  | $96 |  | ($1,874) |  | $34,208 |  |  | $34,986 |  | $36 |  | ($2,257) |  | $32,765 |
Mortgage-backed securities: |  |  |  |  |  |  |  |  |
Federal agencies and U.S. government sponsored entities | $8,077 |  | $— |  | ($948) |  | $7,129 |  |  | $8,187 |  | $— |  | ($1,051) |  | $7,136 |
Total mortgage-backed securities | 8,077 |  | — |  | (948) |  | 7,129 |  |  | 8,187 |  | — |  | (1,051) |  | 7,136 |
Asset-backed securities | 392 |  | — |  | (6) |  | 386 |  |  | 412 |  | 1 |  | (9) |  | 404 |
Total debt securities held to maturity | $8,469 |  | $— |  | ($954) |  | $7,515 |  |  | $8,599 |  | $1 |  | ($1,060) |  | $7,540 |
Equity securities, at cost(2) | $711 |  | $— |  | $— |  | $711 |  |  | $710 |  | $— |  | $— |  | $710 |
Equity securities, at fair value(2) | 236 |  | — |  | — |  | 236 |  |  | 220 |  | — |  | — |  | 220 |
(1) Excludes portfolio level basis adjustments of $(2) million and $(75) million, respectively, for securities designated in active fair value hedge relationships under the portfolio layer method at March 31, 2025 and December 31, 2024. (2) Included in other assets in the Consolidated Balance Sheets. Accrued interest receivable on debt securities totaled $129 million and $125 million as of March 31, 2025 and December 31, 2024, 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, 2025. 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 | $— |  | $3,142 |  | $1,003 |  | $— |  | $4,145 |
State and political subdivisions | — |  | — |  | — |  | 1 |  | 1 |
Mortgage-backed securities: |  |  |  |  |
Federal agencies and U.S. government sponsored entities | — |  | 2,266 |  | 1,125 |  | 28,053 |  | 31,444 |
Other/non-agency | — |  | — |  | — |  | 272 |  | 272 |
Collateralized loan obligations | — |  | — |  | 124 |  | — |  | 124 |
Total debt securities available for sale | — |  | 5,408 |  | 2,252 |  | 28,326 |  | 35,986 |
Mortgage-backed securities: |  |  |  |  |
Federal agencies and U.S. government sponsored entities | — |  | — |  | — |  | 8,077 |  | 8,077 |
Asset-backed securities | — |  | 392 |  | — |  | — |  | 392 |
Total debt securities held to maturity | — |  | 392 |  | — |  | 8,077 |  | 8,469 |
Total amortized cost of debt securities | $— |  | $5,800 |  | $2,252 |  | $36,403 |  | $44,455 |
Fair value: |  |  |  |  |
U.S. Treasury and other | $— |  | $3,054 |  | $1,015 |  | $— |  | $4,069 |
State and political subdivisions | — |  | — |  | — |  | 1 |  | 1 |
Mortgage-backed securities: |  |  |  |  |
Federal agencies and U.S. government sponsored entities | — |  | 2,202 |  | 1,070 |  | 26,481 |  | 29,753 |
Other/non-agency | — |  | — |  | — |  | 261 |  | 261 |
Collateralized loan obligations | — |  | — |  | 124 |  | — |  | 124 |
Total debt securities available for sale | — |  | 5,256 |  | 2,209 |  | 26,743 |  | 34,208 |
Mortgage-backed securities: |  |  |  |  |
Federal agencies and U.S. government sponsored entities | — |  | — |  | — |  | 7,129 |  | 7,129 |
Asset-backed securities | — |  | 386 |  | — |  | — |  | 386 |
Total debt securities held to maturity | — |  | 386 |  | — |  | 7,129 |  | 7,515 |
Total fair value of debt securities | $— |  | $5,642 |  | $2,209 |  | $33,872 |  | $41,723 |
Taxable interest income from investment securities as presented in the Consolidated Statements of Operations was $418 million and $399 million for the three months ended March 31, 2025 and 2024, respectively. The following table presents realized gains and losses on the sale of securities:
| Three Months Ended March 31, |  |
(dollars in millions) | 2025 |  | 2024 |  |  |  |
Gains | $7 |  |  | $5 |  |  |  |  |
Losses | — |  |  | — |  |  |  |  |
Securities gains, net | $7 |  |  | $5 |  |  |  |  |
At March 31, 2025 and December 31, 2024, debt securities with a carrying value of $3.6 billion and $4.0 billion, respectively, were pledged to secure public deposits, trust funds, FHLB borrowing capacity, repurchase agreements, derivative contracts and for other purposes as required or permitted by law. Impairment The Company evaluated its existing HTM portfolio as of March 31, 2025 and concluded that 95% 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, 2025. The following tables present AFS debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position:
| March 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 | $— |  | $— |  |  | $2,582 |  | ($91) |  |  | $2,582 |  | ($91) |
Mortgage-backed securities: |  |  |  |  |  |  |  |
Federal agencies and U.S. government sponsored entities | 6,836 |  | (189) |  |  | 14,089 |  | (1,583) |  |  | 20,925 |  | (1,772) |
Other/non-agency | — |  | — |  |  | 261 |  | (11) |  |  | 261 |  | (11) |
Total mortgage-backed securities | 6,836 |  | (189) |  |  | 14,350 |  | (1,594) |  |  | 21,186 |  | (1,783) |
Total | $6,836 |  | ($189) |  |  | $16,932 |  | ($1,685) |  |  | $23,768 |  | ($1,874) |
| December 31, 2024
| 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 | $— |  | $— |  |  | $2,544 |  | ($109) |  |  | $2,544 |  | ($109) |
Mortgage-backed securities: |  |  |  |  |  |  |  |
Federal agencies and U.S. government sponsored entities | 9,560 |  | (265) |  |  | 14,304 |  | (1,870) |  |  | 23,864 |  | (2,135) |
Other/non-agency | — |  | — |  |  | 260 |  | (13) |  |  | 260 |  | (13) |
Total mortgage-backed securities | 9,560 |  | (265) |  |  | 14,564 |  | (1,883) |  |  | 24,124 |  | (2,148) |
Total | $9,560 |  | ($265) |  |  | $17,108 |  | ($1,992) |  |  | $26,668 |  | ($2,257) |
The Company does not currently have the intent to sell these debt securities, and it is not more likely than not that the Company will be required to sell these debt securities 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, 2025. The unrealized losses on these debt securities reflect non-credit-related factors driven by changes in interest rates. Therefore, the Company determined that these debt securities are not impaired.

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