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Investment Securities

3 Months Ended

Mar. 31, 2025

Investments, Debt and Equity Securities [Abstract]

The following tables summarize the Company’s portfolio of debt securities available for sale and equity investments with readily determinable fair values:


	March 31, 2025
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Cumulative Amount of Fair Value Hedging Adjustment		Fair Value
Debt securities available-for-sale
Mortgage-Related Debt Securities:
GSE CMOs	$	9,096	$	53	$	405	$	—	$	8,744
GSE certificates	1,254		1		145		—		1,110
Private Label collateralized mortgage obligations	156		7		1		—		162
Total mortgage-related debt securities	$	10,506	$	61	$	551	$	—	$	10,016
Other Debt Securities:
GSE debentures	$	1,502	$	—	$	261	$	—	$	1,241
U. S. Treasury obligations	1,002		—		1		7		1,008
Corporate bonds	259		—		10		—		249
Asset-backed securities (2)	232		—		3		—		229
Capital trust notes	47		5		9		—		43
Foreign notes	35		—		—		—		35
Municipal bonds	5		—		—		—		5
Total debt securities	$	3,082	$	5	$	284	$	7	$	2,810
Total debt securities available for sale, net of allowance(1)(3)	$	13,588	$	66	$	835	$	7	$	12,826

(1)As of March 31, 2025, the allowance for credit losses was $3 million.

(2)At March 31, 2025, substantially all of our debt securities available-for-sale are comprised of securities issued by government sponsored entities or are explicitly guaranteed by the U.S. government.

(3)Excludes accrued interest receivable of $40 million included in Other assets in the Condensed Consolidated Statements of Condition.


	December 31, 2024
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Debt securities available-for-sale
Mortgage-Related Debt Securities:
GSE CMOs	$	7,724	$	27	$	447	$	7,304
GSE certificates	1,273		—		167		1,106
Private Label collateralized mortgage obligations	158		6		1		163
Total mortgage-related debt securities	$	9,155	$	33	$	615	$	8,573
Other Debt Securities:

GSE debentures	$	1,502	$	—	$	299	$	1,203
Corporate bonds	314		—		6		308
Asset-backed securities (2)	237		1		2		236
Capital trust notes	47		5		10		42
Foreign Notes	35		—		—		35
Municipal bonds	5		—		—		5
Total debt securities	$	2,140	$	6	$	317	$	1,829
Total securities available for sale, net of allowance(1)(3)	$	11,295	$	39	$	932	$	10,402

(1)As of December 31, 2024, the allowance for credit losses was $3 million.

(2)At December 31, 2024, substantially all of our debt securities available-for-sale are comprised of securities issued by government sponsored entities or are explicitly guaranteed by the U.S. government.

(3)Excludes accrued interest receivable of $35 million included in Other assets in the Condensed Consolidated Statements of Condition.

At March 31, 2025, the Company had $587 million of FHLB-NY stock, at cost and $255 million of FHLB-Indianapolis stock, at cost. At December 31, 2024, the Company had $598 million of FHLB-NY stock, at cost and $329 million of FHLB-Indianapolis stock, at cost. The Company maintains an investment in FHLB stock partly in conjunction with its membership in the FHLB and partly related to its access to the FHLB funding it utilizes. In addition, at March 31, 2025, the Company had $219 million of Federal Reserve Bank stock, at cost. The Company had $219 million of Federal Reserve Bank stock, at December 31, 2024.

There were no realized gains and losses on sales of available-for-sale securities during the three months ended March 31, 2025 and 2024. No available-for-sale securities were sold during the three month periods ended March 31, 2025 and 2024.

The following table summarizes, by contractual maturity, the amortized cost of securities at March 31, 2025:


	Mortgage- Related Securities		U.S. Government and GSE Obligations		Corporate and Other Bonds		Asset-Backed Securities		Total
(in millions)
Available-for-Sale Debt Securities:
Due within one year	$	80	$	—	$	—	$	—	$	80
Due from one to five years	112		1,002		222		—		1,336
Due from five to ten years	287		1,502		84		—		1,873
Due after ten years	10,027		—		40		232		10,299
Total debt securities available for sale, net of allowance	$	10,506	$	2,504	$	346	$	232	$	13,588

The following table presents debt securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of March 31, 2025:


	Number of Debt Securities	Less than Twelve Months				Twelve Months or Longer				Total
		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Debt securities in a continuous unrealized loss position:
GSE collateralized mortgage obligations	221	$	1,869	$	7	$	2,829	$	398	$	4,698	$	405
U.S. Government agency and GSE obligations	33	—		—		1,241		261		1,241		261
GSE certificates	328	11		—		1,045		145		1,056		145
U. S. Treasury obligations	—	1,001		1		—		—		1,001		1
Corporate bonds	8	73		2		175		8		248		10
Asset-backed securities	5	15		—		150		3		165		3
Capital trust notes	5	—		—		34		9		34		9
Private Label collateralized mortgage obligations	2	4		—		16		1		20		1
Foreign notes	1	—		—		10		—		10		—
Municipal bonds	1	—		—		5		—		5		—
Total debt securities in a continuous unrealized loss position	604	$	2,973	$	10	$	5,505	$	825	$	8,478	$	835

The following table presents debt securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2024:


	Number of Debt Securities	Less than Twelve Months				Twelve Months or Longer				Total
		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Debt securities in a continuous unrealized loss position:

GSE collateralized mortgage obligations	223	$	1,636	$	3	$	2,822	$	444	$	4,458	$	447
U.S. Government agency and GSE obligations	33	—		—		1,203		299		1,203		299
GSE certificates	328	38		—		1,040		167		1,078		167
Corporate bonds	11	—		—		308		6		308		6
Asset-backed securities	5	—		—		154		2		154		2
Capital trust notes	5	—		—		33		10		33		10
Private Label collateralized mortgage obligations	2	—		—		17		1		17		1
Foreign notes	1	—		—		10		—		10		—
Municipal bonds	1	—		—		5		—		5		—
Total debt securities in a continuous unrealized loss position	609	$	1,674	$	3	$	5,592	$	929	$	7,266	$	932

The Company evaluates available-for-sale debt securities in unrealized loss positions at least quarterly to determine if an allowance for credit losses is required. We also assess whether (i) we intend to sell, or (ii) it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of these criteria is met, any previously recognized allowances are charged off and the security’s amortized cost basis is written down to fair value through income. Otherwise, we evaluate whether the decline in fair value has resulted from credit losses or other factors. If a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the amount to be collected is less than the amortized cost, an allowance for credit losses is established for the difference, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.