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INVESTMENT SECURITIES
 9 Months Ended
Sep. 30, 2026
Investments [Abstract]  
INVESTMENT SECURITIES INVESTMENT SECURITIES
Investment Securities
We classify our investment securities as either available-for-sale (“AFS”) or held-to-maturity (“HTM”). AFS securities, which primarily consist of debt instruments used to manage liquidity and interest rate risk and to generate interest income, are measured at fair value. Unrealized gains and losses from AFS securities, net of applicable taxes, are recognized in other comprehensive income.
HTM securities represent investments that management has both the intent and ability to hold until maturity. These securities are carried at amortized cost, which reflects the original purchase price, adjusted for the amortization or accretion of any premiums or discounts, as well as any impairment losses, including those related to credit. Gains or losses resulting from the sale of investment securities are recognized in noninterest income and are measured using the specific identification method.
The carrying values of our investment securities exclude accrued interest receivables of $58 million and $64 million at September 30, 2026 and December 31, 2025, respectively. These amounts are included in “Other assets” on the consolidated balance sheet.
Investment securities with a carrying value of $16.5 billion and $17.5 billion were pledged as collateral for potential borrowings at September 30, 2026 and December 31, 2025, respectively.
When a security is transferred from AFS to HTM, the difference between its amortized cost basis and its fair value on the transfer date is amortized as a yield adjustment through interest income. The fair value at the transfer date establishes either a premium or discount relative to the amortized cost basis of the HTM securities. The amortization of unrealized gains or losses reported in AOCI offsets the impact of amortizing the resulting premium or discount through interest income created by the transfer.
The discount associated with securities previously transferred from AFS to HTM was $1.4 billion ($1.1 billion after tax) at September 30, 2026, compared with $1.6 billion ($1.2 billion after tax) at December 31, 2025.
For additional information regarding our fair value estimation process and the accounting treatment of our investment securities, see Notes 3 and 5, respectively, of our 2025 Form 10-K.
The following schedule presents the amortized cost and estimated fair values of our AFS and HTM securities:
September 30, 2026
(In millions)Amortized
cost
Gross unrealized gains 1
Gross unrealized lossesEstimated
fair value
Available-for-sale
U.S. Treasury securities$2,292 $— $227 $2,065 
U.S. Government agencies and corporations:
Agency securities260 — 22 238 
Agency guaranteed mortgage-backed securities6,631 1 1,218 5,414 
Small Business Administration loan-backed securities283 — 14 269 
Municipal securities858 — 83 775 
Other debt securities25 — — 25 
Total available-for-sale10,349 1 1,564 8,786 
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities127 — 6 121 
Agency guaranteed mortgage-backed securities7,904 1 394 7,511 
Municipal securities237 — 13 224 
Total held-to-maturity8,268 1 413 7,856 
Total investment securities$18,617 $2 $1,977 $16,642 
December 31, 2025
(In millions)Amortized
cost
Gross unrealized gains 1
Gross unrealized lossesEstimated
fair value
Available-for-sale
U.S. Treasury securities$1,500 $17 $106 $1,411 
U.S. Government agencies and corporations:
Agency securities313 — 15 298 
Agency guaranteed mortgage-backed securities7,207 5 989 6,223 
Small Business Administration loan-backed securities355 — 14 341 
Municipal securities953 — 44 909 
Other debt securities25 — — 25 
Total available-for-sale10,353 22 1,168 9,207 
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities137 — 3 134 
Agency guaranteed mortgage-backed securities8,459 111 25 8,545 
Municipal securities271 — 10 261 
Total held-to-maturity8,867 111 38 8,940 
Total investment securities$19,220 $133 $1,206 $18,147 
1 Gross unrealized gains for the respective AFS security categories without values were individually less than $1 million.
The following schedule presents gross unrealized losses for AFS securities and the estimated fair value, categorized by the length of time the securities have been in an unrealized loss position:
September 30, 2026
Less than 12 months12 months or moreTotal
(In millions)Gross
unrealized
losses		Estimated
fair
value		Gross
unrealized
losses		Estimated
fair
value		Gross
unrealized
losses		Estimated
fair
value
Available-for-sale
U.S. Treasury securities$94 $1,797 $133 $268 $227 $2,065 
U.S. Government agencies and corporations:
Agency securities— 13 22 216 22 229 
Agency guaranteed mortgage-backed securities14 301 1,204 5,017 1,218 5,318 
Small Business Administration loan-backed securities— — 14 241 14 241 
Municipal securities2 85 81 669 83 754 
Other— 15 — — — 15 
Total available-for-sale investment securities$110 $2,211 $1,454 $6,411 $1,564 $8,622 
December 31, 2025
Less than 12 months12 months or moreTotal
(In millions)Gross
unrealized
losses		Estimated
 fair
 value		Gross
unrealized
losses		Estimated
 fair
 value		Gross
unrealized
losses		Estimated
 fair
 value
Available-for-sale
U.S. Treasury securities$— $99 $106 $296 $106 $395 
U.S. Government agencies and corporations:
Agency securities— 7 15 288 15 295 
Agency guaranteed mortgage-backed securities2 86 987 5,735 989 5,821 
Small Business Administration loan-backed securities— 24 14 309 14 333 
Municipal securities— 68 44 797 44 865 
Other— 15 — — — 15 
Total available-for-sale investment securities$2 $299 $1,166 $7,425 $1,168 $7,724 
At September 30, 2026 and December 31, 2025, the number of AFS investment securities in an unrealized loss position totaled 1,940 and 2,037, respectively.
There were no gross realized gains or losses from sales of AFS investment securities for the three and nine months ended September 30, 2026 and 2025.
The following schedule presents interest income categorized by investment security type:
Three Months Ended September 30,
20262025
(In millions)TaxableNontaxableTotalTaxableNontaxableTotal
Available-for-sale$65 $5 $70 $66 $7 $73 
Held-to-maturity44 1 45 49 2 51 
Total investment securities$109 $6 $115 $115 $9 $124 
Nine Months Ended September 30,
20262025
(In millions)TaxableNontaxableTotalTaxableNontaxableTotal
Available-for-sale$188 $17 $205 $196 $21 $217 
Held-to-maturity136 3 139 151 4 155 
Total investment securities$324 $20 $344 $347 $25 $372 
Maturities
The following schedule presents the amortized cost and weighted average yields of debt securities, categorized by the remaining contractual maturity of principal payments at September 30, 2026. The schedule does not reflect the effects of interest rate resets or fair value hedges. Additionally, the remaining contractual principal maturities shown do not represent the portfolio's duration, as they exclude expected prepayments or amortization, which typically result in measured durations that are significantly shorter than contractual maturities.
September 30, 2026
Total
debt securities		Due in one year or lessDue after one year through five yearsDue after five years through ten yearsDue after ten years
(Dollar amounts in millions)Amortized costAverage yieldAmortized costAverage yieldAmortized costAverage yieldAmortized costAverage yieldAmortized costAverage yield
Available-for-sale
U.S. Treasury securities$2,292 3.92 %$100 4.05 %$397 4.22 %$1,394 4.27 %$401 2.35 %
U.S. Government agencies and corporations:
Agency securities260 3.50 8 2.51 57 4.21 124 3.28 71 3.42 
Agency guaranteed mortgage-backed securities6,631 2.06 34 3.61 302 2.27 1,954 1.67 4,341 2.21 
Small Business Administration loan-backed securities283 3.96 — — 16 4.84 92 3.50 175 4.12 
Municipal securities 1
858 1.95 56 3.00 373 1.78 416 1.95 13 2.46 
Other debt securities25 7.81 — — 10 9.50 — — 15 6.69 
Total available-for-sale securities10,349 2.57 198 3.62 1,155 2.98 3,980 2.70 5,016 2.32 
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities127 4.16 — — — — 77 3.52 50 5.14 
Agency guaranteed mortgage-backed securities
7,904 2.14 — — 35 1.90 — — 7,869 2.14 
Municipal securities 1
237 3.26 33 3.53 121 2.68 78 3.78 5 7.36 
Total held-to-maturity securities 2
8,268 2.20 33 3.53 156 2.51 155 3.65 7,924 2.16 
Total investment securities$18,617 2.40 $231 3.60 $1,311 2.92 $4,135 2.74 $12,940 2.22 
1 The yields on tax-exempt securities are calculated on a tax-equivalent basis.
2 Weighted average yields by maturity bucket are based on amortized cost, excluding unamortized basis adjustments associated with the transfer of certain debt securities from AFS to HTM, and are presented pre-tax.
Impairment
AFS Impairment
We review our AFS securities portfolio for potential impairment on a quarterly basis, assessing each security individually. For additional information regarding our impairment assessment methodology and the related accounting policies applicable to investment securities, see Note 5 of our 2025 Form 10-K.
No impairment losses were recognized on our AFS investment securities portfolio during the first nine months of 2026 or 2025. The unrealized losses primarily reflect the impact of higher interest rates subsequent to the purchase of the securities and are not attributable to credit-related factors. Accordingly, absent any future sales, we expect to recover the full principal value of these securities upon maturity. At September 30, 2026, we did not intend to sell any securities in an unrealized loss position, nor do we believe it is more likely than not that we would be required to sell such securities prior to recovering their amortized cost basis.
HTM Impairment
For HTM securities, the allowance for credit losses (“ACL”) is evaluated using the same methodology applied to loans and leases measured at amortized cost, as described in Note 6. At September 30, 2026, the ACL for HTM securities was less than $1 million. All HTM securities were assigned a credit quality rating of “Pass,” with none classified as past due.