v3.26.1
Investment Securities
 3 Months Ended
Mar. 31, 2026
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
Our investment portfolio includes various debt and equity securities. Our debt securities, which are classified as available-for-sale or held-to-maturity, include government securities, corporate bonds, asset-backed securities, and mortgage-backed securities. The amortized cost basis, fair value, and gross unrealized gains and losses on available-for-sale and held-to-maturity securities were as follows.
March 31, 2026December 31, 2025
Amortized cost basisGross unrealized
Fair value
Amortized cost basisGross unrealized
Fair value
($ in millions)gainslossesgainslosses
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies$2,444 $8 $(55)$2,397 $2,308 $22 $(51)$2,279 
U.S. States and political subdivisions593 — (76)517 624 1 (74)551 
Foreign government202 1 (4)199 191 1 (4)188 
Agency mortgage-backed residential (a)14,787 16 (2,108)12,695 14,966 19 (2,084)12,901 
Mortgage-backed residential226 — (33)193 230 — (32)198 
Agency mortgage-backed commercial (a)5,729 8 (630)5,107 5,540 14 (622)4,932 
Asset-backed2 — — 2 12 — — 12 
Corporate debt1,991 8 (71)1,928 1,954 19 (61)1,912 
Total available-for-sale securities (b) (c) (d) (e) (f)$25,974 $41 $(2,977)$23,038 $25,825 $76 $(2,928)$22,973 
Held-to-maturity securities
Debt securities
Agency mortgage-backed residential$1,337 $3 $(157)$1,183 $1,303 $8 $(157)$1,154 
Mortgage-backed residential2,957 203 — 3,160 3,018 228 — 3,246 
Asset-backed retained notes43 1 — 44 50 1 — 51 
Total held-to-maturity securities (d) (f) (g)$4,337 $207 $(157)$4,387 $4,371 $237 $(157)$4,451 
(a)Fair value includes basis adjustments for securities in closed portfolios with active hedges under the portfolio layer method. This includes a $31 million liability and a $13 million asset for agency mortgage-backed residential securities at March 31, 2026, and December 31, 2025, respectively, and a $10 million asset and a $33 million asset for agency mortgage-backed commercial securities at March 31, 2026, and December 31, 2025, respectively. These basis adjustments would be allocated to the amortized cost basis of specific securities within the pool if the hedge was dedesignated. Refer to Note 18 for additional information.
(b)Certain available-for-sale securities are included in fair value hedging relationships. Refer to Note 18 for additional information.
(c)Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $14 million at both March 31, 2026, and December 31, 2025.
(d)Investment securities with a fair value of $3.5 billion and $3.7 billion were pledged as collateral at March 31, 2026, and December 31, 2025, respectively. This primarily included $2.7 billion pledged to secure advances from the FHLB at both March 31, 2026, and December 31, 2025. This also included securities pledged for other purposes as required by contractual obligations or law, under which agreements we granted the counterparty the right to sell or pledge $866 million and $932 million of the underlying available-for-sale securities at March 31, 2026, and December 31, 2025, respectively.
(e)Totals do not include accrued interest receivable, which was $86 million and $87 million at March 31, 2026, and December 31, 2025, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.
(f)There was no allowance for credit losses recorded at both March 31, 2026, and December 31, 2025, as management determined that there were no expected credit losses in our portfolio of available-for-sale and held-to-maturity securities.
(g)Totals do not include accrued interest receivable, which was $12 million and $13 million at March 31, 2026, and December 31, 2025, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.
The maturity distribution of debt securities outstanding is summarized in the following tables based upon contractual maturities. Call or prepayment options may cause actual maturities to differ from contractual maturities.
TotalDue in one year or lessDue after one year through five yearsDue after five years through ten yearsDue after ten years
($ in millions)AmountYieldAmountYieldAmountYieldAmountYieldAmountYield
March 31, 2026
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies$2,397 3.5 %$68 1.5 %$2,050 3.7 %$279 2.3 %$— — %
U.S. States and political subdivisions517 3.4 39 5.1 54 3.7 53 4.5 371 3.1 
Foreign government199 2.8 14 1.9 92 2.3 93 3.4 — — 
Agency mortgage-backed residential (b)12,695 2.9 — — 1 2.8 — — 12,694 2.9 
Mortgage-backed residential193 2.7 — — — — — — 193 2.7 
Agency mortgage-backed commercial (b)5,107 2.7 144 3.1 1,647 3.3 2,491 2.4 825 2.3 
Asset-backed2 1.5 1 1.5 1 1.3 — — — — 
Corporate debt1,928 3.6 214 2.6 892 2.5 700 4.9 122 5.4 
Total available-for-sale securities$23,038 3.0 $480 2.8 $4,737 3.3 $3,616 3.0 $14,205 2.9 
Amortized cost basis of available-for-sale securities$25,974 $483 $4,871 $4,046 $16,574 
Amortized cost basis of held-to-maturity securities (c)
Agency mortgage-backed residential$1,337 3.5 %$— — %$— — %$— — %$1,337 3.5 %
Mortgage-backed residential2,957 2.8 — — 4 2.9 1 5.3 2,952 2.8 
Asset-backed retained notes
43 5.4 — — 30 5.3 13 5.7 — — 
Total held-to-maturity securities
$4,337 3.0 $— — $34 5.0 $14 5.7 $4,289 3.0 
December 31, 2025
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies$2,279 3.4 %$84 0.8 %$1,771 3.9 %$424 2.0 %$— — %
U.S. States and political subdivisions551 3.4 48 4.8 50 3.7 65 4.3 388 3.1 
Foreign government188 2.8 14 2.0 75 2.3 99 3.3 — — 
Agency mortgage-backed residential (b)12,901 2.9 — — 1 2.8 — — 12,900 2.9 
Mortgage-backed residential198 2.7 — — — — — — 198 2.7 
Agency mortgage-backed commercial (b)4,932 2.7 87 3.4 1,453 3.5 2,314 2.4 1,078 2.3 
Asset-backed12 1.5 — — 12 1.5 — — — — 
Corporate debt1,912 3.4 232 2.4 866 2.5 679 4.6 135 5.5 
Total available-for-sale securities$22,973 3.0 $465 2.5 $4,228 3.4 $3,581 2.9 $14,699 2.9 
Amortized cost basis of available-for-sale securities$25,825 $468 $4,298 $3,968 $17,091 
Amortized cost basis of held-to-maturity securities (c)
Agency mortgage-backed residential
$1,303 3.5 %$— — %$— — %$— — %$1,303 3.5 %
Mortgage-backed residential3,018 2.8 — — 5 2.9 1 5.5 3,012 2.8 
Asset-backed retained notes
50 5.4 — — 35 5.3 15 5.7 — — 
Total held-to-maturity securities
$4,371 3.0 $— — $40 5.0 $16 5.7 $4,315 3.0 
(a)Yield is calculated using the effective yield of each security at the end of the period, weighted based on the fair value by security for the securities within each maturity distribution range. The effective yield considers the contractual coupon and amortized cost basis inclusive of hedge basis adjustments for dedesignated hedges, and excludes expected capital gains and losses. Yield does not consider hedging effects for securities in active hedges.
(b)Fair value includes basis adjustments for securities in closed portfolios with active hedges under the portfolio layer method. This includes a $31 million liability and a $13 million asset for agency mortgage-backed residential securities at March 31, 2026, and December 31, 2025, respectively, and a $10 million asset and a $33 million asset for agency mortgage-backed commercial securities at March 31, 2026, and December 31, 2025, respectively. These basis adjustments would be allocated to the amortized cost basis of specific securities within the pool if the hedge was dedesignated. Refer to Note 18 for additional information.
(c)Yield is calculated using the effective yield of each security at the end of the period, weighted based on amortized cost basis by security for the securities within each maturity distribution range. The effective yield considers the contractual coupon and amortized cost basis and excludes capital gains, capital losses, and the premium or discount on securities transferred from available-for-sale to held-to-maturity.
The balances of cash equivalents were $444 million and $107 million at March 31, 2026, and December 31, 2025, respectively, and were composed primarily of money-market funds.
The following table presents interest and dividends on investment securities.
Three months ended March 31,
($ in millions)20262025
Taxable interest$214 $210 
Taxable dividends4 5 
Interest and dividends exempt from U.S. federal income tax5 6 
Interest and dividends on investment securities$223 $221 
The following table presents gross gains and losses realized upon the sales of available-for-sale securities, and net gains or losses on equity securities held during the period.
Three months ended March 31,
($ in millions)20262025
Available-for-sale securities
Gross realized gains$3 $— 
Gross realized losses (a)— (495)
Net realized gain (loss) on available-for-sale securities3 (495)
Net realized gain on equity securities35 8 
Net unrealized loss on equity securities(59)(12)
Other loss on investments, net$(21)$(499)
(a)Includes losses reclassified from accumulated other comprehensive loss related to the balance sheet repositioning of our available-for-sale securities portfolio during the three months ended March 31, 2025.
The following table presents the credit quality of our held-to-maturity securities, based on the latest available information as of March 31, 2026, and December 31, 2025. The credit ratings are sourced from nationally recognized statistical rating organizations, which include S&P, Moody’s, Fitch, and DBRS. The ratings presented are a composite of the ratings sourced from the agencies or, if the ratings cannot be sourced from the agencies, are based on the asset type of the particular security. All our held-to-maturity securities were current in their payment of principal and interest as of both March 31, 2026, and December 31, 2025. We have not recorded any interest income reversals on our held-to-maturity securities during the three months ended March 31, 2026, or March 31, 2025.
($ in millions)AAAAAABBBTotal (a)
March 31, 2026
Debt securities
Agency mortgage-backed residential$— $1,337 $— $— $1,337 
Mortgage-backed residential2,893 63 1 — 2,957 
Asset-backed retained notes38 3 1 1 43 
Total held-to-maturity securities$2,931 $1,403 $2 $1 $4,337 
December 31, 2025
Debt securities
Agency mortgage-backed residential$— $1,303 $— $— $1,303 
Mortgage-backed residential2,951 66 1 — 3,018 
Asset-backed retained notes45 2 2 1 50 
Total held-to-maturity securities$2,996 $1,371 $3 $1 $4,371 
(a)Rating agencies indicate that they base their ratings on many quantitative and qualitative factors, which may include capital adequacy, liquidity, asset quality, business mix, level and quality of earnings, and the current operating, legislative, and regulatory environment. A credit rating is not a recommendation to buy, sell, or hold securities, and the ratings are subject to revision or withdrawal at any time by the assigning rating agency.
The following table summarizes available-for-sale securities in an unrealized loss position, which we evaluated to determine if a credit loss exists requiring the recognition of an allowance for credit losses. For additional information on our methodology, refer to Note 1. As of March 31, 2026, and December 31, 2025, we did not have the intent to sell available-for-sale securities in an unrealized loss position and we do not believe it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. We have not recorded any interest income reversals on our available-for-sale securities during the three months ended March 31, 2026, or March 31, 2025.
March 31, 2026December 31, 2025
Less than 12 months12 months or longerLess than 12 months12 months or longer
($ in millions)
Fair value
Unrealized loss
Fair value
Unrealized loss
Fair valueUnrealized lossFair valueUnrealized loss
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies$267 $(1)$572 $(54)$— $— $609 $(51)
U.S. States and political subdivisions47 (1)398 (75)24 — 429 (74)
Foreign government91 (1)67 (3)51 (1)72 (3)
Agency mortgage-backed residential (a)552 (7)9,938 (2,101)120 — 10,310 (2,084)
Mortgage-backed residential— — 193 (33)— — 198 (32)
Agency mortgage-backed commercial (a)678 (6)3,548 (624)299 (1)3,629 (621)
Asset-backed— — 2 — — — 12 — 
Corporate debt423 (7)1,030 (64)86 (1)1,123 (60)
Total available-for-sale securities
$2,058 $(23)$15,748 $(2,954)$580 $(3)$16,382 $(2,925)
(a)Includes basis adjustments for certain securities that are included in closed portfolios with active hedges under the portfolio layer method at March 31, 2026, and December 31, 2025. The basis adjustments would be allocated to the amortized cost basis of specific securities within the pool if the hedge was dedesignated. Refer to Note 18 for additional information.
During the three months ended March 31, 2026, and March 31, 2025, management determined that there were no expected credit losses for securities in an unrealized loss position. This analysis considered a variety of factors including, but not limited to, performance indicators of the issuer, default rates, industry analyst reports, credit ratings, and other relevant information, which indicated that contractual cash flows are expected to occur. As a result of this evaluation, management determined that no credit reserves were required at March 31, 2026, or December 31, 2025.