We classify our investment securities as either AFS or 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 (“OCI”).

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.

Purchase premiums on callable debt securities classified as AFS or HTM are amortized into interest income using the effective yield method based on the earliest call date. For all other AFS and HTM securities, purchase premiums and discounts are amortized into interest income over the contractual life of the security using the effective yield method.

When principal prepayments occur, a proportionate amount of the related premium or discount is recognized in income to maintain a consistent effective yield on the remaining balance of the security. For more information regarding the methodologies used to estimate the fair value of investment securities, see Note 3.

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 accumulated other comprehensive income (“AOCI”) offsets the impact of amortizing the resulting premium or discount through interest income created by the transfer.


	December 31, 2025
(In millions)	Amortized cost		Gross unrealized gains 1		Gross unrealized losses		Estimated fair value
Available-for-sale
U.S. Treasury securities	$	1,500	$	17	$	106	$	1,411
U.S. Government agencies and corporations:
Agency securities	313		—		15		298
Agency guaranteed mortgage-backed securities	7,207		5		989		6,223
Small Business Administration loan-backed securities	355		—		14		341
Municipal securities	953		—		44		909
Other debt securities	25		—		—		25


Total available-for-sale	10,353		22		1,168		9,207
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities	137		—		3		134
Agency guaranteed mortgage-backed securities	8,459		111		25		8,545
Municipal securities	271		—		10		261
Total held-to-maturity	8,867		111		38		8,940
Total investment securities	$	19,220	$	133	$	1,206	$	18,147


	December 31, 2024
(In millions)	Amortized cost		Gross unrealized gains 1		Gross unrealized losses		Estimated fair value
Available-for-sale
U.S. Treasury securities	$	781	$	—	$	119	$	662
U.S. Government agencies and corporations:
Agency securities	441		—		26		415
Agency guaranteed mortgage-backed securities	7,713		1		1,263		6,451
Small Business Administration loan-backed securities	455		—		21		434
Municipal securities	1,186		—		78		1,108
Other debt securities	25		—		—		25
Total available-for-sale	10,601		1		1,507		9,095
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities	148		—		8		140
Agency guaranteed mortgage-backed securities	9,202		2		263		8,941
Municipal securities	319		—		18		301
Total held-to-maturity	9,669		2		289		9,382
Total investment securities	$	20,270	$	3	$	1,796	$	18,477


	December 31, 2025
	Less than 12 months				12 months or more				Total
(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 securities	2		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


	December 31, 2024
	Less than 12 months				12 months or more				Total
(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	$	3	$	198	$	116	$	285	$	119	$	483
U.S. Government agencies and corporations:
Agency securities	—		3		26		403		26		406
Agency guaranteed mortgage-backed securities	—		86		1,263		6,171		1,263		6,257
Small Business Administration loan-backed securities	—		35		21		387		21		422
Municipal securities	—		68		78		984		78		1,052








Total available-for-sale investment securities	$	3	$	390	$	1,504	$	8,230	$	1,507	$	8,620


	2025						2024						2023
(In millions)	Taxable		Nontaxable		Total		Taxable		Nontaxable		Total		Taxable		Nontaxable		Total

Available-for-sale	$	261	$	27	$	288	$	294	$	31	$	325	$	291	$	31	$	322
Held-to-maturity	199		5		204		218		4		222		236		3		239
Total investment securities	$	460	$	32	$	492	$	512	$	35	$	547	$	527	$	34	$	561

The following schedule presents the amortized cost and weighted average yields of debt securities, categorized by the remaining contractual maturity of principal payments at December 31, 2025. 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.


	December 31, 2025
	Total debt securities				Due in one year or less				Due after one year through five years				Due after five years through ten years				Due after ten years
(Dollar amounts in millions)	Amortized cost		Average yield		Amortized cost		Average yield		Amortized cost		Average yield		Amortized cost		Average yield		Amortized cost		Average yield
Available-for-sale
U.S. Treasury securities	$	1,500	3.71	%	$	100	4.04	%	$	201	3.99	%	$	798	4.28	%	$	401	2.35	%
U.S. Government agencies and corporations:
Agency securities	313		3.25		—		—		56		3.98		159		2.97		98		3.30
Agency guaranteed mortgage-backed securities	7,207		2.09		7		1.30		218		2.91		1,778		1.83		5,204		2.14
Small Business Administration loan-backed securities	355		4.36		—		—		11		5.26		106		3.70		238		4.61
Municipal securities 1	953		2.06		100		3.17		298		1.93		541		1.92		14		2.41
Other debt securities	25		7.97		—		—		10		9.51		—		—		15		6.95


Total available-for-sale securities	10,353		2.45		207		3.53		794		3.01		3,382		2.54		5,970		2.29
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities	137		4.15		—		—		—		—		76		3.50		61		4.96
Agency guaranteed mortgage-backed securities	8,459		1.84		—		—		28		1.45		10		2.78		8,421		1.84
Municipal securities 1	271		3.22		24		2.03		137		2.95		103		3.67		7		5.88
Total held-to-maturity securities	8,867		1.91		24		2.03		165		2.69		189		3.55		8,489		1.86
Total investment securities	$	19,220	2.20		$	231	3.37		$	959	2.95		$	3,571	2.59		$	14,459	2.04

We review our AFS securities portfolio for potential impairment on a quarterly basis, assessing each security individually. An AFS security is considered impaired when its fair value is less than its amortized cost basis as of the balance sheet date. If we either intend to sell the impaired security, or determine that it is more likely than not that we will be required to sell the security before recovering its amortized cost basis, an impairment loss is recognized through earnings by adjusting the amortized cost basis to fair value as of the reporting date.

If we have the intent and ability to hold the security, we evaluate whether any impairment is attributable to credit-related factors. This assessment includes consideration of several factors, primarily internal and external credit ratings, to determine whether the decline in fair value relative to amortized cost is due to credit deterioration or other factors. When credit impairment is identified, we measure the credit loss and record an allowance.

To measure the credit loss, we generally compare the present value of expected future cash flows to the security’s amortized cost basis. Expected cash flows incorporate assumptions related to default probabilities and loss severity, among other factors, and may include prepayment assumptions. Certain internal models may be utilized in this process. The security-specific effective interest rate is used to discount expected cash flows. If the present value of expected cash flows is less than the amortized cost basis, the shortfall is recorded as an allowance for credit loss, limited to the amount by which fair value is less than amortized cost basis (i.e., the allowance cannot reduce the carrying value below fair value).

The assumptions used to estimate expected cash flows vary depending on the asset class, structure, and credit rating of the security. Declines in fair value not reflected in the allowance for credit losses (“ACL”) are recorded in other comprehensive income, net of applicable taxes. The process, methodology, and factors considered in evaluating securities for impairment are described below. For additional information regarding the fair value measurement of investment securities, see Note 3.

No impairment losses were recognized on our AFS investment securities portfolio during 2025 and 2024. 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 December 31, 2025, 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.

For HTM securities, the ACL is evaluated using the same methodology applied to loans and leases measured at amortized cost, as described in Note 6. At December 31, 2025, 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.