AVAILABLE-FOR-SALE SECURITIES (Tables)
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6 Months Ended |
Mar. 31, 2026 |
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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 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 | |
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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 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 | % |
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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 | | 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) | |
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