AVAILABLE-FOR-SALE SECURITIES (Tables)
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9 Months Ended |
Jun. 30, 2025 |
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| Debt Securities, Available-for-Sale [Abstract] |
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| Amortized Cost and Estimated Fair Values of Available-For-Sale Securities, and Continuous Unrealized Loss Position |
The following table details the amortized costs and fair values of our available-for-sale securities. See Note 2 of our 2024 Form 10-K for a discussion of our accounting policies applicable to our available-for-sale securities. See Note 3 of this Form 10-Q for additional information regarding the fair value of available-for-sale securities. | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ in millions | | Cost basis | | Gross
unrealized gains | | Gross
unrealized losses | | Fair value | | June 30, 2025 | | | | | | | | | | Agency residential MBS | | $ | 3,693 | | | $ | 2 | | | $ | (299) | | | $ | 3,396 | | | Agency commercial MBS | | 1,282 | | | — | | | (98) | | | 1,184 | | | Agency CMOs | | 1,394 | | | 2 | | | (161) | | | 1,235 | | | U.S. Treasuries | | 431 | | | 1 | | | — | | | 432 | | | Other agency obligations | | 354 | | | — | | | (3) | | | 351 | | | Non-agency residential MBS | | 499 | | | 1 | | | (37) | | | 463 | | | Corporate bonds | | 89 | | | — | | | — | | | 89 | | | Other | | 15 | | | 1 | | | (1) | | | 15 | | | Total available-for-sale securities | | $ | 7,757 | | | $ | 7 | | | $ | (599) | | | $ | 7,165 | | | | | | | | | | | | September 30, 2024 | | | | | | | | | | Agency residential MBS | | $ | 4,147 | | | $ | 3 | | | $ | (327) | | | $ | 3,823 | | | Agency commercial MBS | | 1,415 | | | — | | | (119) | | | 1,296 | | | Agency CMOs | | 1,394 | | | 1 | | | (170) | | | 1,225 | | | U.S. Treasuries | | 706 | | | — | | | (2) | | | 704 | | | Other agency obligations | | 565 | | | — | | | (6) | | | 559 | | | Non-agency residential MBS | | 553 | | | 1 | | | (27) | | | 527 | | | Corporate bonds | | 107 | | | 1 | | | (2) | | | 106 | | | Other | | 19 | | | 1 | | | — | | | 20 | | | Total available-for-sale securities | | $ | 8,906 | | | $ | 7 | | | $ | (653) | | | $ | 8,260 | |
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| Contractual Maturities, Amortized Cost, Carrying Values, and Current Yields for Available-For-Sales Securities |
The following table details the contractual maturities, amortized costs, fair values and current yields for our available-for-sale securities. Weighted-average yields are calculated on a taxable-equivalent basis based on estimated annual income divided by the average amortized cost of these securities. Since our MBS and CMO available-for-sale securities are backed by mortgages, actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations without prepayment penalties. As a result, the weighted-average life of our available-for-sale securities portfolio, after factoring in estimated prepayments, was approximately 3.9 years as of June 30, 2025. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | $ in millions | | Within one year | | After one but
within five years | | After five but
within ten years | | After ten years | | Total | Agency residential MBS | | | | | | | | | | | Amortized cost | | $ | — | | | $ | 125 | | | $ | 1,385 | | | $ | 2,183 | | | $ | 3,693 | | | Fair value | | $ | — | | | $ | 120 | | | $ | 1,295 | | | $ | 1,981 | | | $ | 3,396 | | Weighted-average yield | | — | % | | 1.77 | % | | 1.29 | % | | 2.22 | % | | 1.86 | % | Agency commercial MBS | | | | | | | | | | | Amortized cost | | $ | 236 | | | $ | 636 | | | $ | 362 | | | $ | 48 | | | $ | 1,282 | | | Fair value | | $ | 231 | | | $ | 601 | | | $ | 314 | | | $ | 38 | | | $ | 1,184 | | Weighted-average yield | | 1.67 | % | | 1.43 | % | | 1.21 | % | | 1.86 | % | | 1.43 | % | Agency CMOs | | | | | | | | | | | Amortized cost | | $ | — | | | $ | — | | | $ | 26 | | | $ | 1,368 | | | $ | 1,394 | | | Fair value | | $ | — | | | $ | — | | | $ | 24 | | | $ | 1,211 | | | $ | 1,235 | | Weighted-average yield | | — | % | | — | % | | 1.43 | % | | 2.17 | % | | 2.16 | % | | U.S. Treasuries | | | | | | | | | | | Amortized cost | | $ | 178 | | | $ | 253 | | | $ | — | | | $ | — | | | $ | 431 | | | Fair value | | $ | 178 | | | $ | 254 | | | $ | — | | | $ | — | | | $ | 432 | | Weighted-average yield | | 4.43 | % | | 4.29 | % | | — | % | | — | % | | 4.35 | % | | Other agency obligations | | | | | | | | | | | Amortized cost | | $ | 189 | | | $ | 129 | | | $ | 28 | | | $ | 8 | | | $ | 354 | | | Fair value | | $ | 188 | | | $ | 127 | | | $ | 28 | | | $ | 8 | | | $ | 351 | | Weighted-average yield | | 2.85 | % | | 3.77 | % | | 2.42 | % | | 3.07 | % | | 3.16 | % | | Non-agency residential MBS | | | | | | | | | | | Amortized cost | | $ | — | | | $ | — | | | $ | — | | | $ | 499 | | | $ | 499 | | | Fair value | | $ | — | | | $ | — | | | $ | — | | | $ | 463 | | | $ | 463 | | Weighted-average yield | | — | % | | — | % | | — | % | | 4.18 | % | | 4.18 | % | | Corporate bonds | | | | | | | | | | | Amortized cost | | $ | 4 | | | $ | 63 | | | $ | 22 | | | $ | — | | | $ | 89 | | | Fair value | | $ | 4 | | | $ | 63 | | | $ | 22 | | | $ | — | | | $ | 89 | | Weighted-average yield | | 5.71 | % | | 5.40 | % | | 5.02 | % | | — | % | | 5.32 | % | | Other | | | | | | | | | | | Amortized cost | | $ | — | | | $ | — | | | $ | 5 | | | $ | 10 | | | $ | 15 | | | Fair value | | $ | — | | | $ | — | | | $ | 4 | | | $ | 11 | | | $ | 15 | | Weighted-average yield | | — | % | | — | % | | 6.99 | % | | 6.92 | % | | 6.94 | % | Total available-for-sale securities | | | | | | | | | | | Amortized cost | | $ | 607 | | | $ | 1,206 | | | $ | 1,828 | | | $ | 4,116 | | | $ | 7,757 | | | Fair value | | $ | 601 | | | $ | 1,165 | | | $ | 1,687 | | | $ | 3,712 | | | $ | 7,165 | | Weighted-average yield | | 2.88 | % | | 2.52 | % | | 1.36 | % | | 2.45 | % | | 2.24 | % |
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| Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value |
The following table details the gross unrealized losses and fair values of securities that were in a loss position at the reporting period end, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 12 months | | 12 months or more | | Total | | $ in millions | | Fair value | | Unrealized
losses | | Fair value | | Unrealized
losses | | Fair value | | Unrealized
losses | | June 30, 2025 | | | | | | | | | | | | | Agency residential MBS | | $ | 82 | | | $ | — | | | $ | 3,138 | | | $ | (299) | | | $ | 3,220 | | | $ | (299) | | Agency commercial MBS | | 5 | | | — | | | 1,176 | | | (98) | | | 1,181 | | | (98) | | Agency CMOs | | 8 | | | — | | | 996 | | | (161) | | | 1,004 | | | (161) | | | U.S. Treasuries | | — | | | — | | | 11 | | | — | | | 11 | | | — | | | Other agency obligations | | — | | | — | | | 342 | | | (3) | | | 342 | | | (3) | | | Non-agency residential MBS | | 14 | | | — | | | 383 | | | (37) | | | 397 | | | (37) | | | Corporate bonds | | 4 | | | — | | | 21 | | | — | | | 25 | | | — | | | Other | | 1 | | | — | | | 4 | | | (1) | | | 5 | | | (1) | | | Total | | $ | 114 | | | $ | — | | | $ | 6,071 | | | $ | (599) | | | $ | 6,185 | | | $ | (599) | | | | | | | | | | | | | | | | September 30, 2024 | | | | | | | | | | | | | Agency residential MBS | | $ | — | | | $ | — | | | $ | 3,679 | | | $ | (327) | | | $ | 3,679 | | | $ | (327) | | Agency commercial MBS | | — | | | — | | | 1,287 | | | (119) | | | 1,287 | | | (119) | | Agency CMOs | | 30 | | | — | | | 1,114 | | | (170) | | | 1,144 | | | (170) | | | U.S. Treasuries | | 475 | | | — | | | 229 | | | (2) | | | 704 | | | (2) | | | Other agency obligations | | 10 | | | — | | | 539 | | | (6) | | | 549 | | | (6) | | | Non-agency residential MBS | | — | | | — | | | 417 | | | (27) | | | 417 | | | (27) | | | Corporate bonds | | — | | | — | | | 42 | | | (2) | | | 42 | | | (2) | | | Other | | — | | | — | | | 4 | | | — | | | 4 | | | — | | Total | | $ | 515 | | | $ | — | | | $ | 7,311 | | | $ | (653) | | | $ | 7,826 | | | $ | (653) | |
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