Investment Securities

6 Months Ended

Jun. 30, 2025

Investments, Debt and Equity Securities [Abstract]

INVESTMENT SECURITIESThe following table summarizes our available-for-sale and held-to-maturity portfolios by major security type:

Table 39: Investment Securities Summary (a) (b)


	June 30, 2025								December 31, 2024
In millions	Amortized Cost (c)		Unrealized				Fair Value		Amortized Cost (c)		Unrealized				Fair Value
			Gains		Losses						Gains		Losses
Securities Available-for-Sale
U.S. Treasury and government agencies	$	26,275	$	113	$	(426)	$	25,962	$	23,962	$	25	$	(436)	$	23,551
Residential mortgage-backed
Agency	34,916		89		(2,432)		32,573		33,589		28		(2,991)		30,626
Non-agency	474		112		(5)		581		504		105		(6)		603
Commercial mortgage-backed
Agency	2,983		12		(86)		2,909		2,077		1		(133)		1,945
Non-agency	507		—		(7)		500		706		—		(15)		691
Asset-backed	2,481		46		—		2,527		2,353		42		(3)		2,392
Other	2,122		45		(83)		2,084		2,307		42		(118)		2,231
Total securities available-for-sale	$	69,758	$	417	$	(3,039)	$	67,136	$	65,498	$	243	$	(3,702)	$	62,039
Securities Held-to-Maturity
U.S. Treasury and government agencies	$	26,116	$	19	$	(506)	$	25,629	$	29,420	$	—	$	(896)	$	28,524
Residential mortgage-backed
Agency	42,352		114		(2,883)		39,583		40,171		16		(3,696)		36,491
Non-agency	230		—		(16)		214		240		—		(21)		219
Commercial mortgage-backed
Agency	934		9		(12)		931		955		3		(28)		930
Non-agency	575		4		(2)		577		836		3		(7)		832
Asset-backed	2,507		38		(10)		2,535		3,380		37		(16)		3,401
Other	2,498		15		(62)		2,451		2,691		19		(49)		2,661
Total securities held-to-maturity (d)	$	75,212	$	199	$	(3,491)	$	71,920	$	77,693	$	78	$	(4,713)	$	73,058

(a) At June 30, 2025, the accrued interest associated with our held-to-maturity and available-for-sale portfolios totaled $235 million and $325 million, respectively. The comparable amounts at December 31, 2024 were $242 million and $328 million, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet.

(b) Credit ratings represent a primary credit quality indicator used to monitor and manage credit risk. Of our total securities portfolio, 97% were rated AAA/AA at both June 30, 2025 and December 31, 2024.

(c) Amortized cost is presented net of allowance of $63 million for securities available-for-sale, primarily related to non-agency commercial mortgage-backed securities, and $5 million for securities held-to-maturity at June 30, 2025. The comparable amounts at December 31, 2024 were $86 million and $5 million, respectively.

(d) Held-to-maturity securities transferred from available-for-sale are included in held-to-maturity at fair value at the time of the transfer. The amortized cost of held-to-maturity securities included net unrealized losses of $3.0 billion at June 30, 2025 related to securities transferred, which are offset in AOCI, net of tax. The comparable amount at December 31, 2024 was $3.4 billion.

The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Securities available-for-sale are carried at fair value with net unrealized gains and losses included in Total shareholders’ equity as AOCI, unless credit-related. Net unrealized gains and losses are determined by taking the difference between the fair value of a security and its amortized cost, net of any allowance. Securities held-to-maturity are carried at amortized cost, net of any allowance. Investment securities at June 30, 2025 included $577 million of net unsettled purchases that represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows. The comparable amount at June 30, 2024 was $151 million of net unsettled purchases.

We maintain the allowance for investment securities at levels that we believe to be appropriate as of the balance sheet date to absorb expected credit losses on our portfolio. At June 30, 2025, the allowance for investment securities was $68 million and primarily related to non-agency commercial mortgage-backed securities in the available-for-sale portfolio. The comparable amount at December 31, 2024 was $91 million. See Note 1 Accounting Policies in our 2024 Form 10-K for a discussion of the methodologies used to determine the allowance for investment securities.

At June 30, 2025, AOCI included pretax losses of $265 million from derivatives that hedged the purchase of investment securities classified as held-to-maturity. The losses will be accreted to interest income as an adjustment of yield on the securities.

Table 40 presents the gross unrealized losses and fair value of securities available-for-sale that do not have an associated allowance for investment securities at June 30, 2025 and December 31, 2024. These securities are segregated between investments that had been in a continuous unrealized loss position for less than twelve months and twelve months or more, based on the point in time that the fair

value declined below the amortized cost basis. All securities included in the table have been evaluated to determine if a credit loss exists. As part of that assessment, as of June 30, 2025, we concluded that we do not intend to sell and believe we will not be required to sell these securities prior to recovery of the amortized cost basis.

Table 40: Gross Unrealized Loss and Fair Value of Securities Available-for-Sale Without an Allowance for Credit Losses


	Unrealized loss position less than 12 months				Unrealized loss position 12 months or more				Total
In millions	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value
June 30, 2025

U.S. Treasury and government agencies	$	(17)	$	9,256	$	(409)	$	9,495	$	(426)	$	18,751
Residential mortgage-backed
Agency	(25)		4,316		(2,407)		18,692		(2,432)		23,008
Non-agency	—		—		(2)		32		(2)		32
Commercial mortgage-backed
Agency	(2)		390		(84)		1,348		(86)		1,738
Non-agency	—		—		(7)		415		(7)		415
Asset-backed	—		—		—		—		—		—
Other	(6)		72		(64)		1,572		(70)		1,644
Total securities available-for-sale	$	(50)	$	14,034	$	(2,973)	$	31,554	$	(3,023)	$	45,588
December 31, 2024
U.S. Treasury and government agencies	$	(70)	$	17,500	$	(366)	$	1,824	$	(436)	$	19,324
Residential mortgage-backed
Agency	(65)		6,163		(2,926)		19,595		(2,991)		25,758
Non-agency	—		—		(3)		41		(3)		41
Commercial mortgage-backed
Agency	(8)		501		(125)		1,388		(133)		1,889
Non-agency	—		—		(15)		559		(15)		559
Asset-backed	(2)		226		(1)		8		(3)		234
Other	(2)		99		(98)		1,734		(100)		1,833

Total securities available-for-sale	$	(147)	$	24,489	$	(3,534)	$	25,149	$	(3,681)	$	49,638

Information related to gross realized securities gains and losses from the sales of securities is set forth in the following table:

Table 41: Gains (Losses) on Sales of Securities Available-for-Sale


Six months ended June 30 In millions
	Gross Gains		Gross Losses		Net Gains (Losses)		Tax Expense (Benefit)
2025	$	2	$	(4)	$	(2)	$	—
2024	$	2	$	(501)	$	(499)	$	(105)

The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at June 30, 2025:

Table 42: Contractual Maturity of Debt Securities


June 30, 2025 Dollars in millions	1 Year or Less			After 1 Year through 5 Years			After 5 Years through 10 Years			After 10 Years			Total
Securities Available-for-Sale
U.S. Treasury and government agencies	$	537		$	11,821		$	11,756		$	2,161		$	26,275
Residential mortgage-backed
Agency	1			315			3,398			31,202			34,916
Non-agency	—			—			62			412			474
Commercial mortgage-backed
Agency	50			1,444			111			1,378			2,983
Non-agency	—			79			77			351			507
Asset-backed	—			1,072			450			959			2,481
Other	464			1,308			199			151			2,122
Total securities available-for-sale at amortized cost	$	1,052		$	16,039		$	16,053		$	36,614		$	69,758
Fair value	$	1,044		$	15,998		$	15,872		$	34,222		$	67,136
Weighted-average yield, GAAP basis (a)	2.98		%	3.73		%	4.22		%	3.95		%	3.95		%
Securities Held-to-Maturity
U.S. Treasury and government agencies	$	7,858		$	15,964		$	1,452		$	842		$	26,116
Residential mortgage-backed
Agency	—			5			439			41,908			42,352
Non-agency	—			—			—			230			230
Commercial mortgage-backed
Agency	—			273			443			218			934
Non-agency	—			36			—			539			575
Asset-backed	2			652			1,075			778			2,507
Other	327			716			264			1,191			2,498
Total securities held-to-maturity at amortized cost	$	8,187		$	17,646		$	3,673		$	45,706		$	75,212
Fair value	$	8,139		$	17,376		$	3,575		$	42,830		$	71,920
Weighted-average yield, GAAP basis (a)	1.41		%	1.76		%	2.72		%	3.08		%	2.57		%

(a)Weighted-average yields are based on amortized cost with effective yields weighted for the contractual maturity of each security. Actual maturities and yields may differ as certain securities may be prepaid.

The following table presents the fair value of securities that have been either pledged to or accepted from others to collateralize outstanding borrowings:

Table 43: Fair Value of Securities Pledged and Accepted as Collateral


In millions	June 30, 2025		December 31, 2024
Pledged to others	$	66,610	$	69,330
Accepted from others:
Permitted by contract or custom to sell or repledge	$	1,421	$	1,231
Permitted amount repledged to others	$	1,421	$	1,231

The securities pledged to others include positions held in our portfolio of investment securities, trading securities and securities accepted as collateral from others that we are permitted by contract or custom to sell or repledge. Such securities were pledged to the Federal Reserve and pledged to secure public and trust deposits, repurchase agreements and for other purposes. See Note 12 Financial Derivatives for information related to securities pledged and accepted as collateral for derivatives.