Debt Securities

9 Months Ended

Sep. 30, 2026

Investments, Debt and Equity Securities [Abstract]

DEBT SECURITIES

All of our debt securities are classified as available-for-sale and are held to meet our liquidity objectives or to comply with the Community Reinvestment Act (“CRA”). Our debt securities consist of the following:


	September 30, 2026								December 31, 2025
			Gross		Gross						Gross		Gross
	Amortized		unrealized		unrealized		Estimated		Amortized		unrealized		unrealized		Estimated
($ in millions)	cost		gains		losses		fair value		cost		gains		losses		fair value
U.S. government and federal agency	$	3,411	$	—	$	(17)	$	3,394	$	1,485	$	7	$	—	$	1,492
State and municipal	53		—		(3)		50		35		—		—		35
Residential mortgage-backed(a)	343		—		(34)		309		318		1		(22)		297
Asset-backed(b)	600		—		(5)		595		509		6		—		515
Other	8		—		—		8		8		1		—		9

Total(c)	$	4,415	$	—	$	(59)	$	4,356	$	2,355	$	15	$	(22)	$	2,348

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(a) Our residential mortgage-backed securities have been issued by government-sponsored entities and are collateralized by U.S. mortgages.

(b) Our asset-backed securities are collateralized by credit card and auto loans.

(c) At September 30, 2026 and December 31, 2025, the estimated fair value of debt securities pledged by the Bank as collateral to the Federal Reserve to secure Federal Reserve discount window advances was $288 million and $470 million, respectively.

The following table presents the estimated fair values and gross unrealized losses of our available-for-sale debt securities:


	In loss position for
	Less than 12 months				12 months or more
			Gross				Gross
	Estimated		unrealized		Estimated		unrealized
($ in millions)	fair value		losses		fair value		losses
At September 30, 2026
U.S. government and federal agency	$	3,146	$	(17)	$	—	$	—
State and municipal	25		(3)		4		(1)
Residential mortgage-backed	126		(7)		183		(26)
Asset-backed	464		(5)		—		—
Other	—		—		—		—
Total(a)	$	3,761	$	(32)	$	187	$	(27)

At December 31, 2025
U.S. government and federal agency	$	—	$	—	$	—	$	—
State and municipal	17		—		5		—
Residential mortgage-backed	—		—		229		(22)
Asset-backed	—		—		—		—
Other	—		—		—		—
Total(a)	$	17	$	—	$	234	$	(22)

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(a)Consists of 288 and 211 securities in gross unrealized loss positions at September 30, 2026 and December 31, 2025, respectively.

We regularly review debt securities for impairment resulting from credit loss using both qualitative and quantitative criteria, as necessary, based on the composition of the portfolio at period end. Based on our assessment, no material impairments from credit losses were recognized during the period.

We presently do not intend to sell our debt securities that are in an unrealized loss position and believe that it is not more likely than not that we will be required to sell these securities before recovery of our amortized cost.

Contractual Maturities of Investments in Available-for-Sale Debt Securities


At September 30, 2026 ($ in millions)	Due within 1 year			Due after 1 year through 5 years			Due after 5 years through 10 years			Due after 10 years			Total
U.S. government and federal agency	$	2,269		$	1,125		$	—		$	—		$	3,394
State and municipal	—			6			—			44			50
Residential mortgage-backed	—			56			63			190			309
Asset-backed	240			355			—			—			595
Other	—			8			—			—			8
Total estimated fair value	$	2,509		$	1,550		$	63		$	234		$	4,356

Amortized cost	$	2,515		$	1,569		$	72		$	259		$	4,415
Weighted average yield(a)	4.1		%	4.1		%	1.2		%	4.4		%	4.0		%

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(a)Weighted average yield is calculated based on the amortized cost of each security. In calculating yield, no adjustment has been made with respect to any tax-exempt obligations.

All securities are presented above based upon contractual maturity date, except our asset-backed securities which are allocated based upon expected final payment date. We expect actual maturities to differ from contractual maturities because borrowers have the right to prepay certain obligations.

There were no material realized gains or losses recognized for the nine months ended September 30, 2026 and 2025.

Although we generally do not have the intent to sell any specific securities held at September 30, 2026, in the ordinary course of managing our debt securities portfolio, we may sell securities prior to their maturities for a variety of reasons, including diversification, credit quality, yield, liquidity requirements and funding obligations.