Quarterly report [Sections 13 or 15(d)]

INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)

v3.25.1
INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)
3 Months Ended
Mar. 31, 2025
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost, Fair Value, and Gross Unrealized Gains and Losses by Investment Category The following tables provide amortized cost, fair value, and gross unrealized gains and losses by investment category.
Unrealized
(dollar amounts in millions)
Amortized
Cost (1)(2)
Gross
Gains
Gross
Losses
Fair Value
At March 31, 2025
Available-for-sale securities:
U.S. Treasury $ 6,625  $ 28  $ (14) $ 6,639 
Federal agencies:
Residential MBS 11,727  (1,700) 10,029 
Residential CMO
4,198  (377) 3,822 
Commercial MBS 2,514  —  (719) 1,795 
Other agencies 127  —  (4) 123 
Total U.S. Treasury, federal agency, and other agency securities
25,191  31  (2,814) 22,408 
Municipal securities 4,088  —  (126) 3,962 
Corporate debt 1,138  —  (86) 1,052 
Asset-backed securities 313  —  (15) 298 
Private-label CMO 117  (9) 109 
Other securities/sovereign debt
10  —  —  10 
Total available-for-sale securities $ 30,857  $ 32  $ (3,050) $ 27,839 
Held-to-maturity securities:
U.S. Treasury $ 2,320  $ $ (7) $ 2,321 
Federal agencies:
Residential MBS 8,338  —  (1,156) 7,182 
Residential CMO
4,201  (610) 3,599 
Commercial MBS 1,388  —  (211) 1,177 
Other agencies 67  —  (3) 64 
Total federal agency and other agency securities 16,314  16  (1,987) 14,343 
Municipal securities —  — 
Total held-to-maturity securities $ 16,315  $ 16  $ (1,987) $ 14,344 
Other securities, at cost:
Non-marketable equity securities:
FRB stock
$ 574  $ —  $ —  $ 574 
FHLB stock
252  —  —  252 
Other non-marketable equity securities
23  —  —  23 
Other securities, at fair value:
Mutual funds 29  —  —  29 
Equity securities —  — 
Total other securities $ 880  $ —  $ —  $ 880 
(1)Amortized cost amounts exclude accrued interest receivable, which is recorded within accrued income and other receivables on the Unaudited Consolidated Balance Sheets. At March 31, 2025, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $99 million and $43 million, respectively.
(2)Excluded from the amortized cost are portfolio level basis adjustments for securities designated in fair value hedges under the portfolio layer method. The basis adjustments totaled $336 million and represent a reduction to the amortized cost of the securities being hedged. The securities being hedged under the portfolio layer method are primarily Residential CMO and Residential MBS securities.
Unrealized
(dollar amounts in millions) Amortized
Cost (1)(2)
Gross
Gains
Gross
Losses
Fair Value
At December 31, 2024
Available-for-sale securities:
U.S. Treasury $ 6,588  $ 11  $ (43) $ 6,556 
Federal agencies:
Residential MBS 11,988  —  (1,971) 10,017 
Residential CMO
3,778  (434) 3,345 
Commercial MBS 2,519  —  (767) 1,752 
Other agencies 135  —  (5) 130 
Total U.S. Treasury, federal agency, and other agency securities 25,008  12  (3,220) 21,800 
Municipal securities 4,119  (132) 3,988 
Corporate debt 1,157  —  (102) 1,055 
Asset-backed securities 330  —  (19) 311 
Private-label CMO
119  —  (10) 109 
Other securities/sovereign debt
10  —  —  10 
Total available-for-sale securities $ 30,743  $ 13  $ (3,483) $ 27,273 
Held-to-maturity securities:
U.S. Treasury
$ 2,045  $ —  $ (22) $ 2,023 
Federal agencies:
Residential MBS 8,533  —  (1,336) 7,197 
Residential CMO
4,309  (691) 3,621 
Commercial MBS 1,407  —  (231) 1,176 
Other agencies 73  —  (5) 68 
Total U.S. Treasury, federal agency, and other agency securities 16,367  (2,285) 14,085 
Municipal securities —  — 
Total held-to-maturity securities $ 16,368  $ $ (2,285) $ 14,086 
Other securities, at cost:
Non-marketable equity securities:
FRB stock
$ 521  $ —  $ —  $ 521 
FHLB stock
246  —  —  246 
Other non-marketable equity securities 25  —  —  25 
Other securities, at fair value:
Mutual funds 29  —  —  29 
Equity securities — 
Total other securities $ 822  $ $ —  $ 823 
(1)Amortized cost amounts exclude accrued interest receivable, which is recorded within accrued income and other receivables on the Unaudited Consolidated Balance Sheets. At December 31, 2024, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $89 million and $46 million, respectively.
(2)Excluded from the amortized cost are portfolio level basis adjustments for securities designated in fair value hedges under the portfolio layer method. The basis adjustments totaled $458 million and represent a reduction to the amortized cost of the securities being hedged. The securities being hedged under the portfolio layer method are primarily Residential CMO and Residential MBS securities.
Investments by Contractual Maturity The following table provides the amortized cost and fair value of securities by contractual maturity. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without incurring penalties.
At March 31, 2025 At December 31, 2024
(dollar amounts in millions) Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available-for-sale securities:
Under 1 year $ 3,073  $ 3,071  $ 3,620  $ 3,624 
After 1 year through 5 years 6,716  6,627  5,993  5,844 
After 5 years through 10 years 1,666  1,554  1,857  1,732 
After 10 years 19,402  16,587  19,273  16,073 
Total available-for-sale securities $ 30,857  $ 27,839  $ 30,743  $ 27,273 
Held-to-maturity securities:
Under 1 year $ 201  $ 200  $ 255  $ 256 
After 1 year through 5 years 2,143  2,144  1,818  1,796 
After 5 years through 10 years 67  64  65  60 
After 10 years 13,904  11,936  14,230  11,974 
Total held-to-maturity securities $ 16,315  $ 14,344  $ 16,368  $ 14,086 
Investments with Unrealized Losses by Investment Category
The following tables provide detail on investment securities with unrealized losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position.
Less than 12 Months Over 12 Months Total
(dollar amounts in millions) Fair
Value
Gross Unrealized
Losses
Fair
Value
Gross Unrealized
Losses
Fair
Value
Gross Unrealized
Losses
At March 31, 2025
Available-for-sale securities:
U.S. Treasury $ 1,975  $ (14) $ —  $ —  $ 1,975  $ (14)
Federal agencies:
Residential MBS 215  (2) 9,692  (1,698) 9,907  (1,700)
Residential CMO
665  (1) 2,792  (376) 3,457  (377)
Commercial MBS —  —  1,795  (719) 1,795  (719)
Other agencies 20  —  66  (4) 86  (4)
Total U.S. Treasury, federal agency, and other agency securities 2,875  (17) 14,345  (2,797) 17,220  (2,814)
Municipal securities 1,349  (25) 2,266  (101) 3,615  (126)
Corporate debt —  —  1,037  (86) 1,037  (86)
Asset-backed securities —  —  298  (15) 298  (15)
Private-label CMO —  —  86  (9) 86  (9)
Total temporarily impaired available-for-sale securities $ 4,224  $ (42) $ 18,032  $ (3,008) $ 22,256  $ (3,050)
Held-to-maturity securities:
U.S. Treasury $ 1,125  $ (7) $ —  $ —  $ 1,125  $ (7)
Federal agencies:
Residential MBS 56  (1) 7,084  (1,155) 7,140  (1,156)
Residential CMO
—  —  3,142  (610) 3,142  (610)
Commercial MBS —  —  1,177  (211) 1,177  (211)
Other agencies —  —  64  (3) 64  (3)
Total U.S. Treasury, federal agency, and other agency securities 1,181  (8) 11,467  (1,979) 12,648  (1,987)
Municipal securities —  —  —  — 
Total temporarily impaired held-to-maturity securities $ 1,181  $ (8) $ 11,468  $ (1,979) $ 12,649  $ (1,987)
Less than 12 Months Over 12 Months Total
(dollar amounts in millions) Fair
Value
Gross Unrealized
Losses
Fair
Value
Gross Unrealized
Losses
Fair
Value
Gross Unrealized
Losses
At December 31, 2024
Available-for-sale securities:
U.S. Treasury $ 3,153  $ (43) $ —  $ —  $ 3,153  $ (43)
Federal agencies:
Residential MBS 275  (5) 9,676  (1,966) 9,951  (1,971)
Residential CMO
243  (1) 2,802  (433) 3,045  (434)
Commercial MBS —  —  1,752  (767) 1,752  (767)
Other agencies 21  —  69  (5) 90  (5)
Total U.S. Treasury, federal agency, and other agency securities
3,692  (49) 14,299  (3,171) 17,991  (3,220)
Municipal securities 985  (25) 2,336  (107) 3,321  (132)
Corporate debt —  —  1,053  (102) 1,053  (102)
Asset-backed securities 49  —  263  (19) 312  (19)
Private-label CMO —  —  87  (10) 87  (10)
Total temporarily impaired available-for-sale securities $ 4,726  $ (74) $ 18,038  $ (3,409) $ 22,764  $ (3,483)
Held-to-maturity securities:
U.S. Treasury $ 1,581  $ (22) $ —  $ —  $ 1,581  $ (22)
Federal agencies:
Residential MBS 99  (2) 7,097  (1,334) 7,196  (1,336)
Residential CMO
163  (1) 3,152  (690) 3,315  (691)
Commercial MBS —  —  1,176  (231) 1,176  (231)
Other agencies —  —  69  (5) 69  (5)
Total U.S. Treasury, federal agency, and other agency securities
1,843  (25) 11,494  (2,260) 13,337  (2,285)
Municipal securities —  —  —  — 
Total temporarily impaired held-to-maturity securities $ 1,843  $ (25) $ 11,495  $ (2,260) $ 13,338  $ (2,285)