| AVAILABLE-FOR-SALE SECURITIES |
AVAILABLE-FOR-SALE SECURITIES The following table details the amortized costs and fair values of our available-for-sale securities. See Note 2 of our 2025 Form 10-K for a discussion of our accounting policies applicable to our available-for-sale securities. See Note 4 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 | | March 31, 2026 | | | | | | | | | | Agency residential MBS | | $ | 3,322 | | | $ | 2 | | | $ | (239) | | | $ | 3,085 | | | Agency commercial MBS | | 1,055 | | | — | | | (71) | | | 984 | | | Agency CMOs | | 1,393 | | | 1 | | | (140) | | | 1,254 | | | U.S. Treasuries | | 422 | | | 1 | | | — | | | 423 | | | Other agency obligations | | 153 | | | — | | | (1) | | | 152 | | | Non-agency residential MBS | | 450 | | | — | | | (31) | | | 419 | | | Corporate bonds | | 69 | | | 1 | | | — | | | 70 | | | Other | | 16 | | | — | | | (1) | | | 15 | | | Total available-for-sale securities | | $ | 6,880 | | | $ | 5 | | | $ | (483) | | | $ | 6,402 | | | | | | | | | | | | September 30, 2025 | | | | | | | | | | Agency residential MBS | | $ | 3,531 | | | $ | 3 | | | $ | (265) | | | $ | 3,269 | | | Agency commercial MBS | | 1,223 | | | — | | | (85) | | | 1,138 | | | Agency CMOs | | 1,421 | | | 3 | | | (147) | | | 1,277 | | | U.S. Treasuries | | 429 | | | 1 | | | — | | | 430 | | | Other agency obligations | | 229 | | | — | | | (2) | | | 227 | | | Non-agency residential MBS | | 484 | | | 1 | | | (32) | | | 453 | | | Corporate bonds | | 79 | | | 1 | | | (1) | | | 79 | | | Other | | 14 | | | 1 | | | — | | | 15 | | | Total available-for-sale securities | | $ | 7,410 | | | $ | 10 | | | $ | (532) | | | $ | 6,888 | |
The amortized costs and fair values in the preceding table exclude $17 million and $18 million of accrued interest on available-for-sale securities as of March 31, 2026 and September 30, 2025, respectively, which was included in “Other receivables, net” on our Condensed Consolidated Statements of Financial Condition. See Note 7 for additional information regarding available-for-sale securities pledged with the FHLB and Federal Reserve Bank (“FRB”).
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 March 31, 2026. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | March 31, 2026 | | $ 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 | | $ | 1 | | | $ | 343 | | | $ | 1,620 | | | $ | 1,358 | | | $ | 3,322 | | | Fair value | | $ | 1 | | | $ | 325 | | | $ | 1,492 | | | $ | 1,267 | | | $ | 3,085 | | Weighted-average yield | | 2.21 | % | | 1.21 | % | | 1.32 | % | | 3.07 | % | | 2.02 | % | Agency commercial MBS | | | | | | | | | | | Amortized cost | | $ | 200 | | | $ | 802 | | | $ | 9 | | | $ | 44 | | | $ | 1,055 | | | Fair value | | $ | 198 | | | $ | 742 | | | $ | 8 | | | $ | 36 | | | $ | 984 | | Weighted-average yield | | 1.62 | % | | 1.30 | % | | 1.16 | % | | 1.86 | % | | 1.38 | % | Agency CMOs | | | | | | | | | | | Amortized cost | | $ | — | | | $ | — | | | $ | 31 | | | $ | 1,362 | | | $ | 1,393 | | | Fair value | | $ | — | | | $ | — | | | $ | 29 | | | $ | 1,225 | | | $ | 1,254 | | Weighted-average yield | | — | % | | — | % | | 1.47 | % | | 2.41 | % | | 2.39 | % | | U.S. Treasuries | | | | | | | | | | | Amortized cost | | $ | 244 | | | $ | 178 | | | $ | — | | | $ | — | | | $ | 422 | | | Fair value | | $ | 245 | | | $ | 178 | | | $ | — | | | $ | — | | | $ | 423 | | Weighted-average yield | | 3.93 | % | | 3.85 | % | | — | % | | — | % | | 3.90 | % | | Other agency obligations | | | | | | | | | | | Amortized cost | | $ | 32 | | | $ | 113 | | | $ | — | | | $ | 8 | | | $ | 153 | | | Fair value | | $ | 33 | | | $ | 112 | | | $ | — | | | $ | 7 | | | $ | 152 | | Weighted-average yield | | 3.10 | % | | 3.45 | % | | — | % | | 3.07 | % | | 3.36 | % | | Non-agency residential MBS | | | | | | | | | | | Amortized cost | | $ | — | | | $ | — | | | $ | — | | | $ | 450 | | | $ | 450 | | | Fair value | | $ | — | | | $ | — | | | $ | — | | | $ | 419 | | | $ | 419 | | Weighted-average yield | | — | % | | — | % | | — | % | | 4.03 | % | | 4.03 | % | | Corporate bonds | | | | | | | | | | | Amortized cost | | $ | 8 | | | $ | 44 | | | $ | 17 | | | $ | — | | | $ | 69 | | | Fair value | | $ | 8 | | | $ | 45 | | | $ | 17 | | | $ | — | | | $ | 70 | | Weighted-average yield | | 5.25 | % | | 4.69 | % | | 4.99 | % | | — | % | | 4.83 | % | | Other | | | | | | | | | | | Amortized cost | | $ | — | | | $ | — | | | $ | 6 | | | $ | 10 | | | $ | 16 | | | Fair value | | $ | — | | | $ | — | | | $ | 5 | | | $ | 10 | | | $ | 15 | | Weighted-average yield | | — | % | | — | % | | 6.78 | % | | 6.40 | % | | 6.53 | % | Total available-for-sale securities | | | | | | | | | | | Amortized cost | | $ | 485 | | | $ | 1,480 | | | $ | 1,683 | | | $ | 3,232 | | | $ | 6,880 | | | Fair value | | $ | 485 | | | $ | 1,402 | | | $ | 1,551 | | | $ | 2,964 | | | $ | 6,402 | | Weighted-average yield | | 2.94 | % | | 1.85 | % | | 1.37 | % | | 2.91 | % | | 2.31 | % |
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 | | March 31, 2026 | | | | | | | | | | | | | Agency residential MBS | | $ | 200 | | | $ | (1) | | | $ | 2,690 | | | $ | (238) | | | $ | 2,890 | | | $ | (239) | | Agency commercial MBS | | 5 | | | — | | | 976 | | | (71) | | | 981 | | | (71) | | Agency CMOs | | 156 | | | (1) | | | 908 | | | (139) | | | 1,064 | | | (140) | | | U.S. Treasuries | | 50 | | | — | | | 8 | | | — | | | 58 | | | — | | | Other agency obligations | | 43 | | | — | | | 109 | | | (1) | | | 152 | | | (1) | | | Non-agency residential MBS | | 19 | | | — | | | 366 | | | (31) | | | 385 | | | (31) | | | Corporate bonds | | 5 | | | — | | | 13 | | | — | | | 18 | | | — | | | Other | | 1 | | | — | | | 4 | | | (1) | | | 5 | | | (1) | | | Total | | $ | 479 | | | $ | (2) | | | $ | 5,074 | | | $ | (481) | | | $ | 5,553 | | | $ | (483) | | | | | | | | | | | | | | | | September 30, 2025 | | | | | | | | | | | | | Agency residential MBS | | $ | 23 | | | $ | — | | | $ | 2,994 | | | $ | (265) | | | $ | 3,017 | | | $ | (265) | | Agency commercial MBS | | — | | | — | | | 1,129 | | | (85) | | | 1,129 | | | (85) | | Agency CMOs | | 2 | | | — | | | 978 | | | (147) | | | 980 | | | (147) | | | U.S. Treasuries | | 215 | | | — | | | 9 | | | — | | | 224 | | | — | | | Other agency obligations | | — | | | — | | | 227 | | | (2) | | | 227 | | | (2) | | | Non-agency residential MBS | | — | | | — | | | 380 | | | (32) | | | 380 | | | (32) | | | Corporate bonds | | — | | | — | | | 15 | | | (1) | | | 15 | | | (1) | | | Other | | 1 | | | — | | | 5 | | | — | | | 6 | | | — | | Total | | $ | 241 | | | $ | — | | | $ | 5,737 | | | $ | (532) | | | $ | 5,978 | | | $ | (532) | |
At March 31, 2026, of the 789 available-for-sale securities in an unrealized loss position, 47 were in a continuous unrealized loss position for less than 12 months and 742 securities were in a continuous unrealized loss position for greater than 12 months.
During the three and six months ended March 31, 2026 and three months ended March 31, 2025, there were no sales of available-for-sale securities. During the six months ended March 31, 2025, we received proceeds of $78 million from sales of available-for-sale securities resulting in $2 million of losses. Such losses were reclassified from accumulated other comprehensive income/loss (“AOCI”) to “Other” revenue on the Condensed Consolidated Statements of Income and Comprehensive Income during the six months ended March 31, 2025.
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