v3.25.3
Investment Securities
 9 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
Investment securities held by us are classified as either trading account assets, AFS, HTM or equity securities held at fair value at the time of purchase and reassessed periodically, based on management’s intent. For additional
information on our accounting for investment securities, refer to page 136 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
Trading assets are carried at fair value. Both realized and unrealized gains and losses on trading assets are recorded in other fee revenue in our consolidated statement of income. AFS securities are carried at fair value, with any allowance for credit losses recorded through the consolidated statement of income and after-tax net unrealized gains and losses are recorded in AOCI. Gains or losses realized on sales of AFS investment securities are computed using the specific identification method and are recorded in gains (losses) from sales of available-for-sale securities, net, in our consolidated statement of income. HTM investment securities are carried at cost, adjusted for amortization of premiums and accretion of discounts, with any allowance for credit losses recorded through the consolidated statement of income.
The following table presents the amortized cost, fair value and associated unrealized gains and losses of AFS and HTM investment securities as of the dates indicated:
 September 30, 2025December 31, 2024
 Amortized
Cost		Gross
Unrealized		Fair
Value		Amortized
Cost		Gross
Unrealized		Fair
Value
(In millions)GainsLossesGainsLosses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations$24,136 $42 $25 $24,153 $23,539 $38 $52 $23,525 
Mortgage-backed securities(1)
15,565 79 93 15,551 10,699 21 154 10,566 
Total U.S. Treasury and federal agencies39,701 121 118 39,704 34,238 59 206 34,091 
Non-U.S. debt securities:
Mortgage-backed securities2,783 10 1 2,792 2,426 5 1 2,430 
Asset-backed securities(2)
2,374 7 1 2,380 1,865 5 2 1,868 
Non-U.S. sovereign, supranational and non-U.S. agency18,396 89 21 18,464 13,954 54 69 13,939 
Other(3)
3,014 48 — 3,062 2,787 38 4 2,821 
Total non-U.S. debt securities26,567 154 23 26,698 21,032 102 76 21,058 
Asset-backed securities:
Student loans(4)
81 — — 81 89 1 — 90 
Collateralized loan obligations(5)
2,832 4 — 2,836 3,447 6 — 3,453 
Non-agency CMBS and RMBS(6)
— 4 — 4 1 3 — 4 
Other90 1 — 91 90 1 — 91 
Total asset-backed securities3,003 9 — 3,012 3,627 11 — 3,638 
State and political subdivisions26 — — 26 56 — — 56 
Other U.S. debt securities
3 — — 3 53 — 1 52 
Total available-for-sale securities(7)
$69,300 $284 $141 $69,443 $59,006 $172 $283 $58,895 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$2,011 $— $8 $2,003 $5,417 $— $55 $5,362 
Mortgage-backed securities(8)
33,683 6 4,228 29,461 36,101 2 5,677 30,426 
Total U.S. Treasury and federal agencies35,694 6 4,236 31,464 41,518 2 5,732 35,788 
Non-U.S. debt securities:
Non-U.S. sovereign, supranational and non-U.S. agency2,908 7 38 2,877 3,673 7 73 3,607 
Total non-U.S. debt securities2,908 7 38 2,877 3,673 7 73 3,607 
Asset-backed securities:
Student loans(4)
2,332 6 25 2,313 2,536 4 29 2,511 
Total asset-backed securities2,332 6 25 2,313 2,536 4 29 2,511 
Total held-to-maturity securities(7)
$40,934 $19 $4,299 $36,654 $47,727 $13 $5,834 $41,906 
(1) As of September 30, 2025 and December 31, 2024, the total fair value included $3.29 billion and $4.36 billion, respectively, of agency CMBS and $12.26 billion and $6.20 billion, respectively, of agency MBS.
(2) As of September 30, 2025 and December 31, 2024, the fair value includes non-U.S. collateralized loan obligations of $0.89 billion and $0.70 billion, respectively.
(3) As of September 30, 2025 and December 31, 2024, the fair value includes non-U.S. corporate bonds of $2.41 billion and $2.54 billion, respectively.
(4) Primarily comprises securities guaranteed by the federal government with respect to at least 97% of defaulted principal and accrued interest on the underlying loans.
(5) Excludes collateralized loan obligations in loan form. Refer to Note 4 for additional information.
(6) Consists entirely of non-agency RMBS as of both September 30, 2025 and December 31, 2024.
(7) An immaterial amount of accrued interest related to HTM and AFS investment securities was excluded from the amortized cost basis for the periods ended September 30, 2025 and December 31, 2024.
(8) As of September 30, 2025 and December 31, 2024, the total amortized cost included $5.12 billion and $5.18 billion of agency CMBS, respectively.
Aggregate investment securities with carrying values of approximately $81.14 billion and $86.70 billion as of September 30, 2025 and December 31, 2024, respectively, were designated as pledged for public and trust deposits, short-term borrowings and for other purposes as provided by law.
In the three and nine months ended September 30, 2025, proceeds from sales of AFS securities were approximately $2.39 billion and $9.91 billion, respectively, primarily from sales of U.S. Treasury, agency MBS, non-U.S. agency and supranational securities. We recognized a pre-tax gain of $1 million from these sales in both the three and nine months ended September 30, 2025.
The following tables present the aggregate fair values of AFS investment securities that have been in a continuous unrealized loss position for less than 12 months, and those that have been in a continuous unrealized loss position for 12 months or longer, as of the dates indicated:
September 30, 2025
Less than 12 months12 months or longerTotal
(In millions)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations$2,901 $1 $7,589 $24 $10,490 $25 
Mortgage-backed securities2,828 20 3,783 73 6,611 93 
Total U.S. Treasury and federal agencies5,729 21 11,372 97 17,101 118 
Non-U.S. debt securities:
Mortgage-backed securities70 1 91 — 161 1 
Asset-backed securities208 — 243 1 451 1 
Non-U.S. sovereign, supranational and non-U.S. agency5,005 11 2,225 10 7,230 21 
Other25 — 11 — 36 — 
Total non-U.S. debt securities5,308 12 2,570 11 7,878 23 
Asset-backed securities:
Student loans7 — — — 7 — 
Collateralized loan obligations424 — 2 — 426 — 
Total asset-backed securities431 — 2 — 433 — 
Total$11,468 $33 $13,944 $108 $25,412 $141 

December 31, 2024
Less than 12 months12 months or longerTotal
(In millions)Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses		Fair
Value		Gross
Unrealized
Losses
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations$8,113 $25 $2,435 $27 $10,548 $52 
Mortgage-backed securities3,742 59 4,360 95 8,102 154 
Total U.S. Treasury and federal agencies11,855 84 6,795 122 18,650 206 
Non-U.S. debt securities:
Mortgage-backed securities730 1 225 — 955 1 
Asset-backed securities387 — 506 2 893 2 
Non-U.S. sovereign, supranational and non-U.S. agency4,695 49 2,695 20 7,390 69 
Other312 2 116 2 428 4 
Total non-U.S. debt securities6,124 52 3,542 24 9,666 76 
Asset-backed securities:
Student loans12 — — — 12 — 
Collateralized loan obligations684 — — — 684 — 
Total asset-backed securities696 — — — 696 — 
State and political subdivisions— — 26 — 26 — 
Other U.S. debt securities3 — 49 1 52 1 
Total$18,678 $136 $10,412 $147 $29,090 $283 
The following table presents the amortized cost and the fair value of contractual maturities of debt investment securities as of September 30, 2025. The maturities of certain ABS, MBS and collateralized mortgage obligations are based on expected principal payments. Actual maturities may differ from these expected maturities since certain borrowers have the right to prepay obligations with or without prepayment penalties.
September 30, 2025
(In millions)Under 1 Year1 to 5 Years6 to 10 YearsOver 10 YearsTotal
Amortized CostFair ValueAmortized CostFair ValueAmortized CostFair ValueAmortized CostFair ValueAmortized CostFair Value
Available-for-sale:
U.S. Treasury and federal agencies:
Direct obligations$6,277 $6,275 $17,671 $17,688 $188 $190 $— $— $24,136 $24,153 
Mortgage-backed securities133 133 1,612 1,611 1,558 1,544 12,262 12,263 15,565 15,551 
Total U.S. Treasury and federal agencies6,410 6,408 19,283 19,299 1,746 1,734 12,262 12,263 39,701 39,704 
Non-U.S. debt securities:
Mortgage-backed securities205 206 465 466 — — 2,113 2,120 2,783 2,792 
Asset-backed securities124 124 376 376 1,147 1,151 727 729 2,374 2,380 
Non-U.S. sovereign, supranational and non-U.S. agency3,805 3,809 12,941 13,009 1,650 1,646 — — 18,396 18,464 
Other674 676 2,278 2,322 62 64 — — 3,014 3,062 
Total non-U.S. debt securities4,808 4,815 16,060 16,173 2,859 2,861 2,840 2,849 26,567 26,698 
Asset-backed securities:
Student loans22 22 — — 10 10 49 49 81 81 
Collateralized loan obligations108 108 82 82 1,422 1,423 1,220 1,223 2,832 2,836 
Non-agency CMBS and RMBS— — — — — 4 — — — 4 
Other— — 90 91 — — — — 90 91 
Total asset-backed securities130 130 172 173 1,432 1,437 1,269 1,272 3,003 3,012 
State and political subdivisions— — 26 26 — — — — 26 26 
Other U.S. debt securities3 3 — — — — — — 3 3 
Total$11,351 $11,356 $35,541 $35,671 $6,037 $6,032 $16,371 $16,384 $69,300 $69,443 
Held-to-maturity:
U.S. Treasury and federal agencies:
Direct obligations$1,901 $1,895 $102 $101 $1 $1 $7 $6 $2,011 $2,003 
Mortgage-backed securities157 147 3,590 3,273 1,352 1,205 28,584 24,836 33,683 29,461 
Total U.S. Treasury and federal agencies2,058 2,042 3,692 3,374 1,353 1,206 28,591 24,842 35,694 31,464 
Non-U.S. debt securities:
Non-U.S. sovereign, supranational and non-U.S. agency1,457 1,446 1,357 1,339 94 92 — — 2,908 2,877 
Total non-U.S. debt securities1,457 1,446 1,357 1,339 94 92 — — 2,908 2,877 
Asset-backed securities:
Student loans133 130 435 434 422 422 1,342 1,327 2,332 2,313 
Total asset-backed securities133 130 435 434 422 422 1,342 1,327 2,332 2,313 
Total$3,648 $3,618 $5,484 $5,147 $1,869 $1,720 $29,933 $26,169 $40,934 $36,654 
Interest income related to debt securities is recognized in our consolidated statement of income using the effective interest method, or on a basis approximating a level rate of return over the contractual or estimated life of the security. The level rate of return considers any non-refundable fees or costs, as well as purchase premiums or discounts, adjusted as prepayments occur, resulting in amortization or accretion, accordingly.
Allowance for Credit Losses on Debt Securities and Impairment of AFS Securities
We conduct quarterly reviews of HTM and AFS securities on a collective (pool) basis when similar risk characteristics exist to determine whether an allowance for credit losses should be recognized. We review individual AFS securities periodically to assess if additional impairment is required. For additional information about the Current Expected Credit Loss methodology and the review of investment securities for expected credit losses or impairment, refer to pages 140 to 141 in Note 3 to the consolidated financial statements included under Item 8, Financial Statements and Supplementary Data, in our 2024 Form 10-K.
We monitor the credit quality of the HTM and AFS investment securities using a variety of methods, including both external and internal credit ratings. As of September 30, 2025, over 99% of our HTM and AFS investment portfolio is publicly rated investment grade.
As of both September 30, 2025 and December 31, 2024, we had no allowance for credit losses on HTM and AFS investment securities. In the third quarter of 2025, we recorded no provision for credit losses and no charge-offs on HTM and AFS investment securities.
We have elected to not record an allowance on accrued interest for HTM and AFS securities. Accrued interest on these securities is reversed against interest income when payment on a security is delinquent for greater than 90 days from the date of payment.
After a review of the investment portfolio, taking into consideration then-current economic conditions, adverse situations that might affect our ability to fully collect principal and interest, the timing of future payments, the credit quality and performance of the collateral underlying MBS and ABS and other relevant factors, management considered the aggregate decline in fair value of the investment securities portfolio and the resulting gross pre-tax unrealized losses of $4.44 billion related to 1,347 securities as of September 30, 2025 to be primarily related to changes in interest rates, and not the result of any material changes in the credit characteristics of the securities. The unrealized loss has not been recognized as of September 30, 2025, as management did not have the intent to sell, nor was it more likely than not that we would be required to sell these securities before the expected recovery of their amortized cost basis.