v3.26.1
Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2026
Investments, Debt and Equity Securities [Abstract]  
Carrying Amounts and Fair Values of Investment Securities
The carrying amounts and fair values of investment securities are summarized as follows:
June 30, 2026
Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
(in millions)
Held-to-maturity
Private label residential MBS$159 $— $(29)$130 
Tax-exempt1,517 2 (152)1,367 
Total HTM securities$1,676 $2 $(181)$1,497 
Available-for-sale debt securities
CLO$3,218 $5 $(2)$3,221 
Commercial MBS issued by GSEs and GNMA523 1 (10)514 
Corporate debt securities229 — (7)222 
Private label residential MBS1,289 — (153)1,136 
Residential MBS issued by GSEs and GNMA7,767 13 (352)7,428 
Tax-exempt860 — (66)794 
U.S. Treasury securities5,583 — (89)5,494 
Other78 — (7)71 
Total AFS debt securities$19,547 $19 $(686)$18,880 
December 31, 2025
Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
(in millions)
Held-to-maturity
Private label residential MBS$165 $— $(28)$137 
Tax-exempt1,419 3 (132)1,290 
Total HTM securities$1,584 $3 $(160)$1,427 
Available-for-sale debt securities
CLO$2,743 $4 $— $2,747 
Commercial MBS issued by GSEs and GNMA638 5 (8)635 
Corporate debt securities308 — (11)297 
Private label residential MBS1,185 2 (148)1,039 
Residential MBS issued by GSEs and GNMA7,489 52 (311)7,230 
Tax-exempt879 — (77)802 
U.S. Treasury securities5,986 31 (47)5,970 
Other75 1 (8)68 
Total AFS debt securities$19,303 $95 $(610)$18,788 
Unrealized Losses and Fair Value of Investment Securities in Continuous Unrealized Loss Position
The following tables summarize the Company's AFS debt securities in an unrealized loss position, aggregated by major security type and length of time in a continuous unrealized loss position: 
June 30, 2026
Less Than Twelve MonthsMore Than Twelve MonthsTotal
Gross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair Value
(in millions)
Available-for-sale debt securities
CLO$2 $1,144 $— $— $2 $1,144 
Commercial MBS issued by GSEs and GNMA2 203 8 117 10 320 
Corporate debt securities1 56 6 146 7 202 
Private label residential MBS— — 153 834 153 834 
Residential MBS issued by GSEs and GNMA39 4,098 313 1,327 352 5,425 
Tax-exempt5 58 61 693 66 751 
U.S. Treasury securities89 5,471 — — 89 5,471 
Other— — 7 50 7 50 
Total AFS securities$138 $11,030 $548 $3,167 $686 $14,197 
December 31, 2025
Less Than Twelve MonthsMore Than Twelve MonthsTotal
Gross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair Value
(in millions)
Available-for-sale debt securities
Commercial MBS issued by GSEs and GNMA$— $— $8 $81 $8 $81 
Corporate debt securities1 19 10 226 11 245 
Private label residential MBS— — 148 875 148 875 
Residential MBS issued by GSEs and GNMA— — 311 1,503 311 1,503 
Tax-exempt2 10 75 731 77 741 
U.S. Treasury securities47 1,891 — — 47 1,891 
Other— — 8 56 8 56 
Total AFS securities$50 $1,920 $560 $3,472 $610 $5,392 
Rollforward by Major Security Type of the ACL on AFS Debt Securities The following table presents a rollforward of the ACL for the three and six months ended June 30, 2025 based on the Company's impairment analysis of AFS debt securities:
Three Months Ended June 30, 2025Six Months Ended June 30, 2025
(in millions)
Balance, beginning of period$0.2 $0.4 
Provision for (recovery of) credit losses0.1 (0.1)
Charge-offs— — 
Recoveries— — 
Balance, end of period$0.3 $0.3 
Rollforward by Major Security Type of the ACL on HTM Debt Securities The following table presents a rollforward of the ACL on the Company's HTM tax-exempt debt securities:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Balance, beginning of period$13.4 $11.6 $12.9 $16.4 
Provision for (recovery of) credit losses0.4 — 0.9 (4.8)
Charge-offs— — — — 
Recoveries— — — — 
Balance, end of period$13.8 $11.6 $13.8 $11.6 
Investment Securities by Credit Rating Type
The following tables summarize the carrying amount of the Company’s securities by investment ratings position, which are updated quarterly and used to monitor credit quality of the securities: 
June 30, 2026
AAAAA+ to AA-A+ to A-BBB+ to BBB-BB+ and belowUnratedTotals
(in millions)
Held-to-maturity
Private label residential MBS$— $— $— $— $— $159 $159 
Tax-exempt— — — — — 1,517 1,517 
Total HTM securities (1)$— $— $— $— $— $1,676 $1,676 
Available-for-sale debt securities
CLO$961 $2,208 $— $— $— $52 $3,221 
Commercial MBS issued by GSEs and GNMA1 513 — — — — 514 
Corporate debt securities— 19 59 122 8 14 222 
Private label residential MBS1,110 26 — — — — 1,136 
Residential MBS issued by GSEs and GNMA— 7,428 — — — — 7,428 
Tax-exempt55 349 328 — — 62 794 
U.S. Treasury securities— 5,494 — — — — 5,494 
Other— 9 2 29 10 21 71 
Total AFS securities (1)$2,127 $16,046 $389 $151 $18 $149 $18,880 
Equity securities
CRA investments$— $28 $— $— $— $— $28 
Preferred stock— — — 21 30 1 52 
Total equity securities (1)$— $28 $— $21 $30 $1 $80 
(1)For rated securities where ratings differ, the Company uses an average of the available ratings by major credit agencies.
December 31, 2025
AAAAA+ to AA-A+ to A-BBB+ to BBB-BB+ and belowUnratedTotals
(in millions)
Held-to-maturity
Private label residential MBS$— $— $— $— $— $165 $165 
Tax-exempt— — — — — 1,419 1,419 
Total HTM securities (1)$— $— $— $— $— $1,584 $1,584 
Available-for-sale debt securities
CLO$739 $1,857 $151 $— $— $— $2,747 
Commercial MBS issued by GSEs and GNMA1 634 — — — — 635 
Corporate debt securities— — 78 138 81 — 297 
Private label residential MBS1,012 26 — — 1 — 1,039 
Residential MBS issued by GSEs and GNMA— 7,230 — — — — 7,230 
Tax-exempt8 362 361 — — 71 802 
U.S. Treasury securities— 5,970 — — — — 5,970 
Other— 11 3 28 10 16 68 
Total AFS securities (1)$1,760 $16,090 $593 $166 $92 $87 $18,788 
Equity securities
CRA investments$— $27 $— $— $— $— $27 
Preferred stock— — — 21 30 1 52 
Total equity securities (1)$— $27 $— $21 $30 $1 $79 
(1)For rated securities where ratings differ, the Company uses an average of the available ratings by major credit agencies.
Amortized Cost and Fair Value of Investment Securities by Contractual Maturities
The amortized cost and fair value of the Company's debt securities as of June 30, 2026, by contractual maturities are shown below. MBS are shown separately as individual MBS are comprised of pools of loans with varying maturities.
June 30, 2026
Amortized CostEstimated Fair Value
(in millions)
Held-to-maturity
Due in one year or less$18 $18 
After one year through five years30 31 
After five years through ten years180 172 
After ten years1,289 1,146 
Mortgage-backed securities159 130 
Total HTM securities$1,676 $1,497 
Available-for-sale
Due in one year or less$850 $847 
After one year through five years1,462 1,450 
After five years through ten years469 467 
After ten years7,187 7,038 
Mortgage-backed securities9,579 9,078 
Total AFS securities$19,547 $18,880 
Gains and Losses on Sales of Investment Securities
The following table presents gross gains and losses on sales of investment securities:
Three Months Ended June 30,Six Months Ended June 30,
2026202520262025
(in millions)
Available-for-sale securities
Gross gains$1.4 $11.8 $59.0 $13.9 
Gross losses— — (7.1)— 
Net gain on AFS securities$1.4 $11.8 $51.9 $13.9 
Equity securities
Gross gains $1.6 $0.2 $1.6 $0.2 
Gross losses— (0.6)— (0.6)
Net gain (loss) on equity securities$1.6 $(0.4)$1.6 $(0.4)