Investment Securities

6 Months Ended

Jun. 30, 2026

Investments, Debt and Equity Securities [Abstract]

Debt securities available-for-sale

The following tables summarize our portfolio of debt securities available-for-sale:


	June 30, 2026
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Debt securities available-for-sale
Mortgage-Related Debt Securities:
GSE CMOs	$	13,168	$	27	$	423	$	12,772
GSE certificates	1,075		1		125		951
Private label CMOs	142		10		—		152
Total mortgage-related debt securities	$	14,385	$	38	$	548	$	13,875
Other Debt Securities:
GSE debentures	$	1,501	$	—	$	218	$	1,283
U. S. Treasury obligations	1,000		1		2		999
Asset-backed securities	203		—		4		199
Corporate bonds	148		—		2		146
Capital trust notes	48		6		7		47

Municipal bonds	4		—		—		4
Total debt securities	$	2,904	$	7	$	233	$	2,678
Total debt securities available-for-sale, net of allowance(1)(2)(3)(4)	$	17,289	$	45	$	781	$	16,553

(1)At June 30, 2026, substantially all of our debt securities available-for-sale are comprised of securities issued by GSEs or are explicitly guaranteed by the U.S. government.

(2)As of June 30, 2026, the ACL was $2 million.

(3)Excludes accrued interest receivable of $63 million included in Other assets in the Condensed Consolidated Statements of Condition.

(4)We pledged investment securities of $16.3 billion as collateral for certain borrowings as of June 30, 2026.


	December 31, 2025
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Debt securities available-for-sale
Mortgage-Related Debt Securities:
GSE CMOs	$	12,129	$	55	$	360	$	11,824
GSE certificates	1,116		2		119		999
Private label CMOs	147		12		—		159
Total mortgage-related debt securities	$	13,392	$	69	$	479	$	12,982
Other Debt Securities:
GSE debentures	$	1,502	$	—	$	206	$	1,296
U. S. Treasury obligations	1,001		16		—		1,017
Corporate bonds	147		—		3		144
Asset-backed securities	217		—		4		213
Capital trust notes	47		6		8		45

Municipal bonds	4		—		—		4
Total debt securities	$	2,918	$	22	$	221	$	2,719
Total debt securities available-for-sale, net of allowance(1)(2)(3)(4)	$	16,310	$	91	$	700	$	15,701

(1)At December 31, 2025, substantially all of our debt securities available-for-sale are comprised of securities issued by GSEs or are explicitly guaranteed by the U.S. government.

(2)As of December 31, 2025, the ACL was $2 million.

(3)Excludes accrued interest receivable of $58 million included in Other assets in the Condensed Consolidated Statements of Condition.

(4)We pledged investment securities of $15.4 billion as collateral for certain borrowings as of December 31, 2025.

There were no available-for-sale securities sold during the three and six months ended June 30, 2026 and $75 million of available-for-sale securities sold during the three and six months ended June 30, 2025.

There were no realized gains and losses on sales of available-for-sale securities during the three and six months ended June 30, 2026 and 2025, respectively.

The following table summarizes, by contractual maturity, the fair value of securities at June 30, 2026:


	Mortgage- Related Securities		U.S. Government and GSE Obligations		Corporate and Other Bonds		Asset-Backed Securities		Total

Available-for-Sale Debt Securities:
Due within one year	$	—	$	—	$	—	$	—	$	—
Due from one to five years	147		1,258		128		—		1,533
Due from five to ten years	200		1,024		29		—		1,253
Due after ten years	13,528		—		40		199		13,767
Total debt securities available-for-sale, net of allowance	$	13,875	$	2,282	$	197	$	199	$	16,553

The following table presents debt securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of June 30, 2026:


	Number of Debt Securities(1)	Less than Twelve Months				Twelve Months or Longer				Total
		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Debt securities in a continuous unrealized loss position:
GSE CMOs	222	$	5,138	$	29	$	2,690	$	394	$	7,828	$	423
U.S. Government agency and GSE obligations	33	—		—		1,285		218		1,285		218
GSE certificates	321	25		—		882		125		907		125
U. S. Treasury obligations(2)	1	600		2		—		—		600		2
Asset-backed securities	5	6		—		143		4		149		4
Corporate bonds	5	—		—		146		2		146		2
Capital trust notes	5	—		—		37		7		37		7


Municipal bonds	1	—		—		4		—		4		—
Total debt securities in a continuous unrealized loss position	593	$	5,769	$	31	$	5,187	$	750	$	10,956	$	781

(1)Count of securities that have been in a loss position for twelve or more months.

(2)Count of U.S. Treasury obligations that have been in a loss position for less than twelve months.

The following table presents debt securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2025:


	Number of Debt Securities(1)	Less than Twelve Months				Twelve Months or Longer				Total
		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Debt securities in a continuous unrealized loss position:

U.S. Government agency and GSE obligations	33	$	—	$	—	$	1,297	$	206	$	1,297	$	206
GSE certificates	324	8		—		926		119		934		119
GSE CMOs	226	427		1		2,993		359		3,420		360
Asset-backed securities	5	—		—		152		4		152		4
Municipal bonds	1	—		—		4		—		4		—
Corporate bonds	5	—		—		144		3		144		3
Capital trust notes	5	—		—		35		8		35		8


Total debt securities in a continuous unrealized loss position	599	$	435	$	1	$	5,551	$	699	$	5,986	$	700

(1)Count of securities that have been in a loss position for twelve or more months.

We evaluate available-for-sale debt securities in unrealized loss positions at least quarterly to determine if an ACL is required. We also assess whether (i) we intend to sell, or (ii) it is more likely than not that we will be required to sell the

security before recovery of its amortized cost basis. If either of these criteria is met, any previously recognized allowances are charged off and the security’s amortized cost basis is written down to fair value through income and recorded in Provision for credit losses on the Condensed Consolidated Statements of Income (Loss). Otherwise, we evaluate whether the decline in fair value has resulted from credit losses or other factors. If a credit loss exists, the present value of cash flows expected to be collected from the security is compared to the amortized cost basis of the security. If the expected amount to be collected is less than the amortized cost, an ACL is established for the shortfall, but not in excess of the difference between the amortized cost basis and the fair value. Any unrealized loss that has not been recorded through an ACL is recognized in Other comprehensive (loss) income.

Equity investments with readily determinable fair values

As of June 30, 2026 and December 31, 2025, we held equity securities with readily determinable fair values of $14 million and $65 million, respectively. During the three and six months ended June 30, 2026, we recognized a gain of $4 million and a loss of $5 million, respectively, related to our investment in Figure Technology Solutions, Inc. These amounts were recorded in Net (loss) gain on investment securities in the Condensed Consolidated Statements of Income (Loss). During the three months ended June 30, 2026, we sold our entire investment for $46 million.