Investment Securities

9 Months Ended

Sep. 30, 2025

Investments, Debt and Equity Securities [Abstract]

Debt securities available-for-sale

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


	September 30, 2025
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Debt securities available for sale
Mortgage-Related Debt Securities:
GSE CMOs	$	11,476	$	56	$	371	$	11,161
GSE certificates	1,130		1		126		1,005
Private label CMOs	150		11		—		161
Total mortgage-related debt securities	$	12,756	$	68	$	497	$	12,327
Other Debt Securities:
GSE debentures	$	1,502	$	—	$	216	$	1,286
U. S. treasury obligations	1,000		14		—		1,014
Asset-backed securities (1)	222		—		4		218
Corporate bonds	164		—		7		157
Capital trust notes	47		6		8		45

Municipal bonds	5		—		—		5
Total debt securities	$	2,940	$	20	$	235	$	2,725
Total debt securities available for sale, net of allowance(2)(3)(4)	$	15,696	$	88	$	732	$	15,052

(1)At September 30, 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 September 30, 2025, the ACL was $2 million.

(3)Excludes accrued interest receivable of $43 million included in Other assets in the Condensed Consolidated Statements of Condition.

(4)We pledged investment securities of $14.8 billion as collateral for certain borrowings.


	December 31, 2024
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Debt securities available for sale
Mortgage-Related Debt Securities:
GSE CMOs	$	7,724	$	27	$	447	$	7,304
GSE certificates	1,273		—		167		1,106
Private label CMOs	158		6		1		163
Total mortgage-related debt securities	$	9,155	$	33	$	615	$	8,573
Other Debt Securities:

GSE debentures	$	1,502	$	—	$	299	$	1,203
Corporate bonds	314		—		6		308
Asset-backed securities (1)	237		1		2		236
Capital trust notes	47		5		10		42
Foreign notes	35		—		—		35
Municipal bonds	5		—		—		5
Total debt securities	$	2,140	$	6	$	317	$	1,829
Total securities available for sale, net of allowance(2)(3)(4)	$	11,295	$	39	$	932	$	10,402

(1)At December 31, 2024, 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, 2024, the ACL was $3 million.

(3)Excludes accrued interest receivable of $35 million included in Other assets in the Condensed Consolidated Statements of Condition.

(4)We pledged investment securities of $10.2 billion as collateral for certain borrowings.

There were $10 million and $85 million of available-for-sale securities sold during the three and nine months ended September 30, 2025, respectively and no available-for-sale securities sold during the three and nine months ended September 30, 2024.

There were no realized gains and losses on sales of available-for-sale securities in the three and nine months ended September 30, 2025. There were no realized gains and losses on sales of available-for-sale securities in the three months ended September 30, 2024 and less than $1 million in the nine months ended September 30, 2024.

The following table summarizes, by contractual maturity, the fair value of securities at September 30, 2025:


	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	$	1	$	—	$	—	$	—	$	1
Due from one to five years	122		1,080		143		—		1,345
Due from five to ten years	240		1,220		26		—		1,486
Due after ten years	11,964		—		38		218		12,220
Total debt securities available for sale, net of allowance	$	12,327	$	2,300	$	207	$	218	$	15,052

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 September 30, 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:
GSE CMOs	230	$	899	$	1	$	3,037	$	370	$	3,936	$	371
U.S. Government agency and GSE obligations	33	—		—		1,287		216		1,287		216
GSE certificates	326	—		—		948		126		948		126

Corporate bonds	6	—		—		157		7		157		7
Asset-backed securities	5	14		—		142		4		156		4
Capital trust notes	5	—		—		35		8		35		8
Private Label CMOs	1	—		—		14		—		14		—

Municipal bonds	1	—		—		5		—		5		—
Total debt securities in a continuous unrealized loss position	607	$	913	$	1	$	5,625	$	731	$	6,538	$	732

(1)Count of securities that have been in a loss position for twelve or more 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, 2024:


	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	223	$	1,636	$	3	$	2,822	$	444	$	4,458	$	447
U.S. Government agency and GSE obligations	33	—		—		1,203		299		1,203		299
GSE certificates	328	38		—		1,040		167		1,078		167
Corporate bonds	11	—		—		308		6		308		6
Asset-backed securities	5	—		—		154		2		154		2
Capital trust notes	5	—		—		33		10		33		10
Private Label CMOs	2	—		—		17		1		17		1
Foreign notes	1	—		—		10		—		10		—
Municipal bonds	1	—		—		5		—		5		—
Total debt securities in a continuous unrealized loss position	609	$	1,674	$	3	$	5,592	$	929	$	7,266	$	932

(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 (Loss) Income. 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 are 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 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 September 30, 2025, and December 31, 2024, we held equity securities with readily determinable fair values of $55 million and $14 million, respectively. During the three months ended September 30, 2025, we recognized a gain of $21 million, which was recorded in Net gain on investment securities in the Condensed Consolidated Statements of (Loss) Income. This gain resulted from our investment in Figure Technology Solutions, Inc., which obtained a readily determinable fair value upon the completion of its initial public offering. We are subject to a contractual restriction that prohibits the sale of our shares in Figure Technology Solutions, Inc. until the three months ended March 31, 2026. For the three and nine months ended September 30, 2025, we recognized total gains of $21 million and $22 million, respectively, on all our equity investment securities, compared to an immaterial amount for the three and nine months ended September 30, 2024.

Federal Reserve and Federal Home Loan Bank Stock

We also carry shares in the following entities at cost:


	September 30, 2025		December 31, 2024
FHLB-Indianapolis	$	255	$	329
FHLB-New York	542		598
Federal Reserve Bank stock	221		219