v3.25.2
Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Carrying Amounts and Fair Values of Investment Securities
The carrying amounts and fair values of investment securities are summarized as follows:
June 30, 2025
Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
(in millions)
Held-to-maturity
Tax-exempt$1,369 $2 $(141)$1,230 
Private label residential MBS171 — (33)138 
Total HTM securities$1,540 $2 $(174)$1,368 
Available-for-sale debt securities
Residential MBS issued by GSEs and GNMA$6,986 $35 $(355)$6,666 
U.S. Treasury securities5,470 38 (4)5,504 
CLO1,895 6 — 1,901 
Private label residential MBS1,164 1 (175)990 
Tax-exempt909 — (113)796 
Commercial MBS issued by GSEs and GNMA604 4 (9)599 
Corporate debt securities391 — (17)374 
Other75 1 (8)68 
Total AFS debt securities$17,494 $85 $(681)$16,898 
December 31, 2024
Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
(in millions)
Held-to-maturity
Tax-exempt$1,350 $1 $(180)$1,171 
Private label residential MBS176 — (38)138 
Total HTM securities$1,526 $1 $(218)$1,309 
Available-for-sale debt securities
Residential MBS issued by GSEs and GNMA$6,225 $16 $(410)$5,831 
U.S. Treasury securities4,385 1 (3)4,383 
Private label residential MBS1,148 — (201)947 
Tax-exempt921 — (76)845 
CLO570 — — 570 
Commercial MBS issued by GSEs and GNMA447 1 (11)437 
Corporate debt securities407 — (21)386 
Other75 1 (7)69 
Total AFS debt securities$14,178 $19 $(729)$13,468 
Unrealized Losses and Fair Value of Investment Securities in Continuous Unrealized Loss Position
The following tables summarize the Company's AFS debt securities in an unrealized loss position, aggregated by major security type and length of time in a continuous unrealized loss position: 
June 30, 2025
Less Than Twelve MonthsMore Than Twelve MonthsTotal
Gross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair Value
(in millions)
Available-for-sale debt securities
Residential MBS issued by GSEs and GNMA$3 $1,061 $352 $1,471 $355 $2,532 
U.S. Treasury securities4 1,948 — — 4 1,948 
Private label residential MBS— — 175 893 175 893 
Tax-exempt— — 113 723 113 723 
Corporate debt securities (1)— — 17 339 17 339 
Commercial MBS issued by GSEs and GNMA1 170 8 66 9 236 
Other4 31 4 16 8 47 
Total AFS securities$12 $3,210 $669 $3,508 $681 $6,718 
(1)Includes securities with an ACL that have a fair value of $8 million and unrealized losses of $1 million.
December 31, 2024
Less Than Twelve MonthsMore Than Twelve MonthsTotal
Gross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair Value
(in millions)
Available-for-sale debt securities
Residential MBS issued by GSEs and GNMA$18 $1,793 $392 $1,482 $410 $3,275 
U.S. Treasury securities3 2,185 — — 3 2,185 
Private label residential MBS— — 201 939 201 939 
Tax-exempt1 32 75 813 76 845 
Corporate debt securities (1)— — 21 362 21 362 
Commercial MBS issued by GSEs and GNMA10 220 1 16 11 236 
Other2 32 5 25 7 57 
Total AFS securities$34 $4,262 $695 $3,637 $729 $7,899 
(1)Includes securities with an ACL that have a fair value of $8 million and unrealized losses of $1 million.
Rollforward by Major Security Type of the ACL on AFS Debt Securities The following table presents a rollforward of the ACL on these AFS debt securities:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(in millions)
Balance, beginning of period$0.2 $1.3 $0.4 $1.4 
Provision for (recovery of) credit losses0.1 (0.5)(0.1)(0.6)
Charge-offs— — — — 
Recoveries— — — — 
Balance, end of period$0.3 $0.8 $0.3 $0.8 
Rollforward by Major Security Type of the ACL on HTM Debt Securities
The following table presents a rollforward of the ACL on the Company's HTM tax-exempt debt securities:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(in millions)
Balance, beginning of period$11.6 $8.2 $16.4 $7.8 
Provision for (recovery of) credit losses— 0.5 (4.8)0.9 
Charge-offs— — — — 
Recoveries— — — — 
Balance, end of period$11.6 $8.7 $11.6 $8.7 
Investment Securities by Credit Rating Type
The following tables summarize the carrying amount of the Company’s investment ratings position, which are updated quarterly and used to monitor the credit quality of the Company's securities: 
June 30, 2025
AAASplit-rated AAA/AA+AA+ to AA-A+ to A-BBB+ to BBB-BB+ and belowUnratedTotals
(in millions)
Held-to-maturity
Tax-exempt$— $— $— $— $— $— $1,369 $1,369 
Private label residential MBS— — — — — — 171 171 
Total HTM securities (1)$— $— $— $— $— $— $1,540 $1,540 
Available-for-sale debt securities
Residential MBS issued by GSEs and GNMA$— $— $6,666 $— $— $— $— $6,666 
U.S. Treasury securities— — 5,504 — — — — 5,504 
CLO190 — 1,475 236 — — — 1,901 
Private label residential MBS963 — 27 — — — — 990 
Tax-exempt22 — 327 354 — — 93 796 
Commercial MBS issued by GSEs and GNMA— — 599 — — — — 599 
Corporate debt securities— — — 79 217 78 — 374 
Other— — 11 2 38 1 16 68 
Total AFS securities (1)$1,175 $— $14,609 $671 $255 $79 $109 $16,898 
Trading securities
Residential MBS issued by GSEs and GNMA$— $— $53 $— $— $— $— $53 
Total trading securities (1)$— $— $53 $— $— $— $— $53 
Equity securities
Preferred stock$— $— $— $— $33 $30 $— $63 
Common stock— — — — — — 32 32 
CRA investments— 27 — — — — — 27 
Total equity securities (1)$— $27 $— $— $33 $30 $32 $122 
(1)For rated securities, if ratings differ, the Company uses an average of the available ratings by major credit agencies.
December 31, 2024
AAASplit-rated AAA/AA+AA+ to AA-A+ to A-BBB+ to BBB-BB+ and belowUnratedTotals
(in millions)
Held-to-maturity
Tax-exempt$— $— $— $— $— $— $1,350 $1,350 
Private label residential MBS— — — — — — 176 176 
Total HTM securities (1)$— $— $— $— $— $— $1,526 $1,526 
Available-for-sale debt securities
Residential MBS issued by GSEs and GNMA$— $5,831 $— $— $— $— $— $5,831 
U.S. Treasury securities— 4,383 — — — — — 4,383 
Private label residential MBS921 — 26 — — — — 947 
Tax-exempt9 19 348 375 — — 94 845 
CLO50 — 465 55 — — — 570 
Commercial MBS issued by GSEs and GNMA— 437 — — — — — 437 
Corporate debt securities— — — 78 226 82 — 386 
Other— 1 8 2 40 1 17 69 
Total AFS securities (1)$980 $10,671 $847 $510 $266 $83 $111 $13,468 
Equity securities
Preferred stock$— $— $— $— $50 $29 $12 $91 
CRA investments— 26 — — — — — 26 
Total equity securities (1)$— $26 $— $— $50 $29 $12 $117 
(1)For rated securities, if ratings differ, the Company uses an average of the available ratings by major credit agencies.
Amortized Cost and Fair Value of Investment Securities by Contractual Maturities
The amortized cost and fair value of the Company's debt securities as of June 30, 2025, by contractual maturities are shown below. MBS are shown separately as individual MBS are comprised of pools of loans with varying maturities.
June 30, 2025
Amortized CostEstimated Fair Value
(in millions)
Held-to-maturity
Due in one year or less$24 $24 
After one year through five years18 18 
After five years through ten years173 162 
After ten years1,154 1,026 
Mortgage-backed securities171 138 
Total HTM securities$1,540 $1,368 
Available-for-sale
Due in one year or less$1,632 $1,630 
After one year through five years1,912 1,909 
After five years through ten years840 828 
After ten years4,356 4,276 
Mortgage-backed securities8,754 8,255 
Total AFS securities$17,494 $16,898 
Gains and Losses on Sales of Investment Securities
The following table presents gross gains and losses on sales of investment securities:
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
(in millions)
Available-for-sale securities
Gross gains$11.8 $2.7 $13.9 $3.6 
Gross losses— (0.4)— (2.2)
Net gain on AFS securities$11.8 $2.3 $13.9 $1.4 
Equity securities
Gross gains $0.2 $— $0.2 $— 
Gross losses(0.6)— (0.6)— 
Net loss on equity securities$(0.4)$— $(0.4)$—