NOTE 14 — ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
The following table includes the components of AOCI:
Components of Accumulated Other Comprehensive Loss | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | dollars in millions | March 31, 2026 | | December 31, 2025 | | Pretax | | Income Taxes | | Net of Income Taxes | | Pretax | | Income Taxes | | Net of Income Taxes | | Unrealized loss on securities available for sale | $ | (349) | | | $ | 73 | | | $ | (276) | | | $ | (162) | | | $ | 25 | | | $ | (137) | | | Unrealized loss on securities available for sale transferred to held to maturity | (5) | | | 1 | | | (4) | | | (5) | | | 1 | | | (4) | | | Defined benefit pension items | 280 | | | (72) | | | 208 | | | 282 | | | (72) | | | 210 | | | | | | | | | | | | | | | Unrealized gain on cash flow hedge derivatives | — | | | — | | | — | | | 19 | | | (5) | | | 14 | | | Total accumulated other comprehensive (loss) income | $ | (74) | | | $ | 2 | | | $ | (72) | | | $ | 134 | | | $ | (51) | | | $ | 83 | |
The following table summarizes the changes in the components of AOCI, net of income taxes:
Changes in Accumulated Other Comprehensive (Loss) Income by Component | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | dollars in millions | Unrealized loss on securities available for sale | | Unrealized loss on securities available for sale transferred to held to maturity | | Defined benefit pension items | | | | Unrealized gain on cash flow hedge derivatives | | Total accumulated other comprehensive (loss) income | | Balance as of December 31, 2025 | $ | (137) | | | $ | (4) | | | $ | 210 | | | | | $ | 14 | | | $ | 83 | | | AOCI activity before reclassifications | (139) | | | — | | | (2) | | | | | (14) | | | (155) | | | Amounts reclassified from AOCI to earnings | — | | | — | | | — | | | | | — | | | — | | | Other comprehensive income for the period | (139) | | | — | | | (2) | | | | | (14) | | | (155) | | | Balance as of March 31, 2026 | $ | (276) | | | $ | (4) | | | $ | 208 | | | | | $ | — | | | $ | (72) | | | | | | | | | | | | | | | Balance as of December 31, 2024 | $ | (584) | | | $ | (4) | | | $ | 135 | | | | | $ | 8 | | | $ | (445) | | | AOCI activity before reclassifications | 239 | | | — | | | — | | | | | 10 | | | 249 | | | Amounts reclassified from AOCI to earnings | — | | | — | | | — | | | | | (3) | | | (3) | | | Other comprehensive (loss) income for the period | 239 | | | — | | | — | | | | | 7 | | | 246 | | | Balance as of March 31, 2025 | $ | (345) | | | $ | (4) | | | $ | 135 | | | | | $ | 15 | | | $ | (199) | |
Other Comprehensive Income The amounts included in the Consolidated Statements of Comprehensive Income are net of income taxes. The following table presents the pretax and after tax components of other comprehensive income:
Other Comprehensive Income (Loss) by Component | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | dollars in millions | Three Months Ended March 31, | | | | 2026 | | 2025 | | | | Pretax | | Income Taxes | | Net of Income Taxes | | Pretax | | Income Taxes | | Net of Income Taxes | | Income Statement Line Items | | Unrealized loss on securities available for sale: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Other comprehensive (loss) income on securities available for sale | $ | (187) | | | $ | 48 | | | $ | (139) | | | $ | 322 | | | $ | (83) | | | $ | 239 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Defined benefit pension items: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Actuarial loss | $ | (2) | | | $ | — | | | $ | (2) | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Unrealized gain on cash flow hedge derivatives: | | | | | | | | | | | | | | | AOCI activity before reclassifications | $ | (19) | | | $ | 5 | | | $ | (14) | | | $ | 12 | | | $ | (2) | | | $ | 10 | | | | | Amounts reclassified from AOCI to earnings | — | | | — | | | — | | | (3) | | | — | | | (3) | | | Interest income on loans and leases | | Other comprehensive income on cash flow hedge derivatives | $ | (19) | | | $ | 5 | | | $ | (14) | | | $ | 9 | | | $ | (2) | | | $ | 7 | | | | | Total other comprehensive income | $ | (208) | | | $ | 53 | | | $ | (155) | | | $ | 331 | | | $ | (85) | | | $ | 246 | | | |
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