LONG-TERM DEBT AND SHAREHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2025

LONG-TERM DEBT AND SHAREHOLDERS’ EQUITY

Long-Term Debt

The long-term debt carrying values presented on the consolidated balance sheet represent the par value of the debt, adjusted for any unamortized premium or discount, unamortized debt issuance costs, and fair value hedge basis adjustments. During the third quarter of 2025, we issued $500 million in 4.70% Fixed-to-Floating Senior Notes with a maturity date of August 18, 2028.

The following schedule presents the components of our long-term debt:

LONG-TERM DEBT


(In millions)	September 30, 2025		December 31, 2024

Subordinated notes 1	$	971	$	946
Senior notes	499		—
Finance lease obligations	3		4
Total	$	1,473	$	950

1 The change in the subordinated note balance is primarily due to fair value hedge basis adjustments. See also Note 7.

Shareholders' Equity

Our common stock is traded on the National Association of Securities Dealers Automated Quotations (“NASDAQ”) Global Select Market. At September 30, 2025, there were 147.6 million shares of $0.001 par value common stock outstanding. Common stock and additional paid-in capital was $1.7 billion at both September 30, 2025 and December 31, 2024.

At September 30, 2025, the AOCI balance reflected a net loss of $2.1 billion, primarily attributable to a decline in the fair value of fixed-rate AFS securities as a result of changes in interest rates. This amount includes $1.7 billion ($1.2 billion after tax) of unrealized losses associated with securities previously transferred from AFS to HTM. The following schedule presents the changes in AOCI by major component:


(In millions)	Net unrealized gains (losses) on investment securities		Net unrealized gains (losses) on derivatives and other		Pension and post-retirement		Total
Nine Months Ended September 30, 2025
Balance at December 31, 2024	$	(2,301)	$	(78)	$	(1)	$	(2,380)
Other comprehensive income before reclassifications, net of tax	142		6		—		148
Amounts reclassified from AOCI, net of tax	137		39		—		176
Other comprehensive income	279		45		—		324
Balance at September 30, 2025	$	(2,022)	$	(33)	$	(1)	$	(2,056)
Income tax expense included in other comprehensive income	$	91	$	15	$	—	$	106
Nine Months Ended September 30, 2024
Balance at December 31, 2023	$	(2,526)	$	(165)	$	(1)	$	(2,692)
Other comprehensive income before reclassifications, net of tax	137		2		—		139
Amounts reclassified from AOCI, net of tax	147		70		—		217
Other comprehensive income	284		72		—		356
Balance at September 30, 2024	$	(2,242)	$	(93)	$	(1)	$	(2,336)
Income tax expense included in other comprehensive income	$	93	$	24	$	—	$	117


	Amounts reclassified from AOCI
(In millions)	Three Months Ended September 30,				Nine Months Ended September 30,
AOCI components	2025		2024		2025		2024		Affected line item on statement of income





Net unrealized gains (losses) on investment securities	$	(62)	$	(67)	$	(182)	$	(195)		Securities gains (losses), net
Less: Income tax expense (benefit)	(15)		(16)		(45)		(48)
Total	$	(47)	$	(51)	$	(137)	$	(147)



Net unrealized gains (losses) on derivative instruments and other	$	(15)	$	(28)	$	(52)	$	(93)		Interest and fees on loans; Interest on short- and long-term borrowings
Less: Income tax expense (benefit)	(4)		(7)		(13)		(23)
Total	$	(11)	$	(21)	$	(39)	$	(70)