| 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 | | June 30, 2026 | | | | | | | | | | Agency residential MBS | | $ | 3,306 | | | $ | 2 | | | $ | (247) | | | $ | 3,061 | | | Agency commercial MBS | | 950 | | | — | | | (70) | | | 880 | | | Agency CMOs | | 1,546 | | | 1 | | | (142) | | | 1,405 | | | U.S. Treasuries | | 532 | | | — | | | (1) | | | 531 | | | Other agency obligations | | 139 | | | — | | | (2) | | | 137 | | | Non-agency residential MBS | | 434 | | | — | | | (33) | | | 401 | | | Corporate bonds | | 65 | | | 1 | | | — | | | 66 | | | Other | | 15 | | | 1 | | | (1) | | | 15 | | | Total available-for-sale securities | | $ | 6,987 | | | $ | 5 | | | $ | (496) | | | $ | 6,496 | | | | | | | | | | | | 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 $19 million and $18 million of accrued interest on available-for-sale securities as of June 30, 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 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 3.8 years as of June 30, 2026. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | June 30, 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 | | | $ | 413 | | | $ | 1,567 | | | $ | 1,325 | | | $ | 3,306 | | | Fair value | | $ | 1 | | | $ | 390 | | | $ | 1,428 | | | $ | 1,242 | | | $ | 3,061 | | Weighted-average yield | | 2.18 | % | | 1.18 | % | | 1.35 | % | | 3.39 | % | | 2.14 | % | Agency commercial MBS | | | | | | | | | | | Amortized cost | | $ | 161 | | | $ | 738 | | | $ | 8 | | | $ | 43 | | | $ | 950 | | | Fair value | | $ | 159 | | | $ | 680 | | | $ | 7 | | | $ | 34 | | | $ | 880 | | Weighted-average yield | | 1.65 | % | | 1.28 | % | | 1.21 | % | | 1.83 | % | | 1.37 | % | Agency CMOs | | | | | | | | | | | Amortized cost | | $ | — | | | $ | — | | | $ | 29 | | | $ | 1,517 | | | $ | 1,546 | | | Fair value | | $ | — | | | $ | — | | | $ | 27 | | | $ | 1,378 | | | $ | 1,405 | | Weighted-average yield | | — | % | | — | % | | 1.46 | % | | 2.67 | % | | 2.64 | % | | U.S. Treasuries | | | | | | | | | | | Amortized cost | | $ | 205 | | | $ | 327 | | | $ | — | | | $ | — | | | $ | 532 | | | Fair value | | $ | 205 | | | $ | 326 | | | $ | — | | | $ | — | | | $ | 531 | | Weighted-average yield | | 3.98 | % | | 3.96 | % | | — | % | | — | % | | 3.97 | % | | Other agency obligations | | | | | | | | | | | Amortized cost | | $ | 27 | | | $ | 105 | | | $ | — | | | $ | 7 | | | $ | 139 | | | Fair value | | $ | 27 | | | $ | 103 | | | $ | — | | | $ | 7 | | | $ | 137 | | Weighted-average yield | | 3.08 | % | | 3.85 | % | | — | % | | 3.06 | % | | 3.66 | % | | Non-agency residential MBS | | | | | | | | | | | Amortized cost | | $ | — | | | $ | — | | | $ | — | | | $ | 434 | | | $ | 434 | | | Fair value | | $ | — | | | $ | — | | | $ | — | | | $ | 401 | | | $ | 401 | | Weighted-average yield | | — | % | | — | % | | — | % | | 3.96 | % | | 3.96 | % | | Corporate bonds | | | | | | | | | | | Amortized cost | | $ | 8 | | | $ | 48 | | | $ | 9 | | | $ | — | | | $ | 65 | | | Fair value | | $ | 8 | | | $ | 48 | | | $ | 10 | | | $ | — | | | $ | 66 | | Weighted-average yield | | 4.20 | % | | 4.62 | % | | 5.66 | % | | — | % | | 4.72 | % | | Other | | | | | | | | | | | Amortized cost | | $ | — | | | $ | — | | | $ | 5 | | | $ | 10 | | | $ | 15 | | | Fair value | | $ | — | | | $ | — | | | $ | 5 | | | $ | 10 | | | $ | 15 | | Weighted-average yield | | — | % | | — | % | | 1.99 | % | | 6.30 | % | | 4.84 | % | Total available-for-sale securities | | | | | | | | | | | Amortized cost | | $ | 402 | | | $ | 1,631 | | | $ | 1,618 | | | $ | 3,336 | | | $ | 6,987 | | | Fair value | | $ | 400 | | | $ | 1,547 | | | $ | 1,477 | | | $ | 3,072 | | | $ | 6,496 | | Weighted-average yield | | 2.98 | % | | 2.06 | % | | 1.37 | % | | 3.12 | % | | 2.46 | % |
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 | | June 30, 2026 | | | | | | | | | | | | | Agency residential MBS | | $ | 365 | | | $ | (3) | | | $ | 2,526 | | | $ | (244) | | | $ | 2,891 | | | $ | (247) | | Agency commercial MBS | | 5 | | | — | | | 871 | | | (70) | | | 876 | | | (70) | | Agency CMOs | | 401 | | | (3) | | | 871 | | | (139) | | | 1,272 | | | (142) | | | U.S. Treasuries | | 243 | | | (1) | | | 8 | | | — | | | 251 | | | (1) | | | Other agency obligations | | 43 | | | (1) | | | 95 | | | (1) | | | 138 | | | (2) | | | Non-agency residential MBS | | 12 | | | — | | | 355 | | | (33) | | | 367 | | | (33) | | | Corporate bonds | | 5 | | | — | | | 9 | | | — | | | 14 | | | — | | | Other | | 1 | | | — | | | 5 | | | (1) | | | 6 | | | (1) | | | Total | | $ | 1,075 | | | $ | (8) | | | $ | 4,740 | | | $ | (488) | | | $ | 5,815 | | | $ | (496) | | | | | | | | | | | | | | | | 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 June 30, 2026, of the 830 available-for-sale securities in an unrealized loss position, 97 were in a continuous unrealized loss position for less than 12 months and 733 securities were in a continuous unrealized loss position for greater than 12 months.
During the three and nine months ended June 30, 2026, we received proceeds of $40 million from sales of available-for-sale securities resulting in insignificant gains. There were no sales of available-for-sale securities during the three months ended June 30, 2025. During the nine months ended June 30, 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 nine months ended June 30, 2025.
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