Investment Securities (Tables)
|
6 Months Ended |
Jun. 30, 2026 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Schedule of Available-for-Sale Securities |
The table below presents the amortized cost basis, allowance for credit losses, gross unrealized gains and losses and fair value of our investment securities aggregated by major security type as of June 30, 2026 and December 31, 2025. Accrued interest receivable of $348 million and $327 million as of June 30, 2026 and December 31, 2025, respectively, is not included in the table below. Table 3.1: Investment Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | (Dollars in millions) | | Amortized Cost Basis | | Allowance
for Credit
Losses | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair
Value | | Investment securities available for sale: | | | | | | | | | | | | U.S. Treasury securities | | $ | 9,157 | | | $ | — | | | $ | 31 | | | $ | (12) | | | $ | 9,176 | | | RMBS: | | | | | | | | | | | | Agency | | 74,505 | | | — | | | 224 | | | (6,880) | | | 67,849 | | | Non-agency | | 506 | | | (3) | | | 56 | | | (2) | | | 557 | | | Total RMBS | | 75,011 | | | (3) | | | 280 | | | (6,882) | | | 68,406 | | | Agency CMBS | | 7,890 | | | — | | | 29 | | | (347) | | | 7,572 | | Other securities(1) | | 4,896 | | | — | | | 3 | | | (12) | | | 4,887 | | | Total investment securities available for sale | | $ | 96,954 | | | $ | (3) | | | $ | 343 | | | $ | (7,253) | | | $ | 90,041 | | | Investment securities held to maturity: | | | | | | | | | | | | Agency RMBS | | $ | 2,342 | | | $ | — | | | $ | 1 | | | $ | (20) | | | $ | 2,323 | | | U.S. Treasury securities | | 395 | | | — | | | — | | | (5) | | | 390 | | | Total investment securities held to maturity | | $ | 2,737 | | | $ | — | | | $ | 1 | | | $ | (25) | | | $ | 2,713 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | (Dollars in millions) | | Amortized Cost Basis | | Allowance
for Credit
Losses | | Gross
Unrealized
Gains | | Gross
Unrealized
Losses | | Fair
Value | | Investment securities available for sale: | | | | | | | | | | | | U.S. Treasury securities | | $ | 9,958 | | | $ | — | | | $ | 55 | | | $ | — | | | $ | 10,013 | | | RMBS: | | | | | | | | | | | | Agency | | 75,561 | | | — | | | 322 | | | (6,742) | | | 69,141 | | | Non-agency | | 525 | | | (3) | | | 67 | | | (2) | | | 587 | | | Total RMBS | | 76,086 | | | (3) | | | 389 | | | (6,744) | | | 69,728 | | | Agency CMBS | | 8,201 | | | — | | | 35 | | | (344) | | | 7,892 | | Other securities(1) | | 3,411 | | | — | | | 7 | | | — | | | 3,418 | | | Total investment securities available for sale | | $ | 97,656 | | | $ | (3) | | | $ | 486 | | | $ | (7,088) | | | $ | 91,051 | |
__________(1)Includes $2.5 billion and $1.9 billion of asset-backed securities (“ABS”) as of June 30, 2026 and December 31, 2025, respectively. The remaining amount is primarily comprised of supranational bonds, foreign government bonds and U.S. agency debt bonds.
|
| Schedule of Available-for-Sale Securities in Gross Unrealized Loss Position |
The table below provides the gross unrealized losses and fair value of our investment securities available for sale aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2026 and December 31, 2025. The amounts include investment securities available for sale without an allowance for credit losses. Table 3.2: Investment Securities Available for Sale in a Gross Unrealized Loss Position | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | | Less than 12 Months | | 12 Months or Longer | | Total | | (Dollars in millions) | | Fair Value | | Gross
Unrealized
Losses | | Fair Value | | Gross
Unrealized
Losses | | Fair Value | | Gross
Unrealized
Losses | | Investment securities available for sale without an allowance for credit losses: | | | | | | | | | | | | | | U.S. Treasury securities | | $ | 3,067 | | | $ | (12) | | | $ | — | | | $ | — | | | $ | 3,067 | | | $ | (12) | | | RMBS: | | | | | | | | | | | | | | Agency | | 8,763 | | | (100) | | | 41,789 | | | (6,780) | | | 50,552 | | | (6,880) | | | Non-agency | | 4 | | | — | | | 5 | | | — | | | 9 | | | — | | | Total RMBS | | 8,767 | | | (100) | | | 41,794 | | | (6,780) | | | 50,561 | | | (6,880) | | | Agency CMBS | | 1,154 | | | (9) | | | 4,042 | | | (338) | | | 5,196 | | | (347) | | | Other securities | | 3,717 | | | (12) | | | — | | | — | | | 3,717 | | | (12) | | Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(1) | | $ | 16,705 | | | $ | (133) | | | $ | 45,836 | | | $ | (7,118) | | | $ | 62,541 | | | $ | (7,251) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2025 | | | Less than 12 Months | | 12 Months or Longer | | Total | | (Dollars in millions) | | Fair Value | | Gross
Unrealized
Losses | | Fair Value | | Gross
Unrealized
Losses | | Fair Value | | Gross
Unrealized
Losses | | Investment securities available for sale without an allowance for credit losses: | | | | | | | | | | | | | | U.S. Treasury securities | | $ | — | | | $ | — | | | $ | 588 | | | $ | — | | | $ | 588 | | | $ | — | | | RMBS: | | | | | | | | | | | | | | Agency | | 1,063 | | | (4) | | | 46,859 | | | (6,738) | | | 47,922 | | | (6,742) | | | Non-agency | | 2 | | | — | | | 4 | | | — | | | 6 | | | — | | | Total RMBS | | 1,065 | | | (4) | | | 46,863 | | | (6,738) | | | 47,928 | | | (6,742) | | | Agency CMBS | | 698 | | | (2) | | | 4,795 | | | (342) | | | 5,493 | | | (344) | | | Other securities | | 425 | | | — | | | — | | | — | | | 425 | | | — | | Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(1) | | $ | 2,188 | | | $ | (6) | | | $ | 52,246 | | | $ | (7,080) | | | $ | 54,434 | | | $ | (7,086) | |
__________(1) Consists of approximately 2,450 and 2,270 securities in gross unrealized loss positions as of June 30, 2026 and December 31, 2025, respectively.
|
| Schedule of Contractual Maturities for Securities |
The table below summarizes, as of June 30, 2026, the fair value of our investment securities by major security type and contractual maturity as well as the total fair value, amortized cost basis and weighted-average yields of our investment securities by contractual maturity. Since borrowers may have the right to call or prepay certain obligations, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. The weighted-average yield below represents the effective yield for the investment securities presented on a pre-tax basis and is calculated based on the amortized cost basis of each security, inclusive of the contractual coupon, the impact of any premium amortization or discount accretion and any basis adjustments resulting from discontinued hedge accounting relationships. The effective yield is calculated to the contractural maturity or to the earliest call date for certain callable debt securities. Table 3.3: Contractual Maturities and Weighted-Average Yields of Investment Securities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 2026 | | (Dollars in millions) | | Due in
1 Year or Less | | Due > 1 Year
through
5 Years | | Due > 5 Years
through
10 Years | | Due > 10 Years | | Total | | Fair value of investment securities available for sale: | | | | | | | | | | | | U.S. Treasury securities | | $ | 425 | | $ | 4,171 | | $ | 4,580 | | $ | — | | $ | 9,176 | RMBS(1): | | | | | | | | | | | | Agency | | 6 | | 144 | | 1,490 | | 66,209 | | 67,849 | | Non-agency | | — | | — | | 58 | | 499 | | 557 | | Total RMBS | | 6 | | 144 | | 1,548 | | 66,708 | | 68,406 | Agency CMBS(1) | | 734 | | 2,752 | | 2,452 | | 1,634 | | 7,572 | | Other securities | | 860 | | 3,912 | | 17 | | 98 | | 4,887 | | Total investment securities available for sale | | $ | 2,025 | | $ | 10,979 | | $ | 8,597 | | $ | 68,440 | | $ | 90,041 | | Amortized cost basis of investment securities available for sale | | $ | 2,028 | | $ | 11,086 | | $ | 8,797 | | $ | 75,043 | | $ | 96,954 | | Weighted-average yield for investment securities available for sale | | 3.95% | | 3.66% | | 3.56% | | 3.56% | | 3.58% | | Amortized cost basis of investment securities held to maturity: | | | | | | | | | | | Agency RMBS(1) | | — | | — | | — | | 2,342 | | 2,342 | U.S. Treasury securities | | — | | — | | 395 | | — | | 395 | | Total investment securities held to maturity | | $ | — | | $ | — | | $ | 395 | | $ | 2,342 | | $ | 2,737 | | Fair value of investment securities held to maturity | | $ | — | | $ | — | | $ | 390 | | $ | 2,323 | | $ | 2,713 | | Weighted-average yield for investment securities held to maturity | | —% | | —% | | 4.09% | | 4.02% | | 4.03% |
__________(1)As of June 30, 2026, the weighted-average expected maturities of RMBS and Agency CMBS were 7.7 years and 4.3 years, respectively.
|