v3.25.4
LONG-TERM DEBT
 12 Months Ended
Dec. 31, 2025
Long-Term Debt, Unclassified [Abstract]  
LONG-TERM DEBT LONG-TERM DEBT
The following schedule presents the components of our long-term debt:
December 31,
(In millions)20252024
Subordinated notes$969 $946 
Senior notes499 — 
Finance lease obligations4 4 
Total$1,472 $950 
Long-term debt carrying values include the par value of the debt, adjusted for unamortized premiums or discounts, unamortized debt issuance costs, and fair value hedge basis adjustments. The increase in long-term debt from the prior year was primarily due to the issuance of $500 million in 4.70% Fixed-to-Floating Senior Notes with a maturity date of August 18, 2028, during the third quarter of 2025.
During the fourth quarter of 2024, we entered into a receive-fixed interest rate swap designated as a hedge of the $500 million subordinated notes maturing in November 2035. In 2023, we terminated a receive-fixed interest rate swap that had been designated as a hedge of the $500 million subordinated notes maturing in October 2029. The
remaining unamortized hedge basis adjustment from the terminated hedging relationship continues to be amortized into earnings through the contractual maturity of the hedged notes. The carrying values include any unamortized hedge basis adjustments. For additional information on derivatives designated as qualifying hedges, see Note 7.
Subordinated Notes
The following schedule presents our subordinated notes outstanding at December 31, 2025:
(Dollar amounts in millions)Subordinated notes
Coupon rateCarrying valuePar amountMaturity dateEarliest redemption dateInterest terms
3.25%$466 $500 October 2029July 2029
3.25% fixed; interest payable semi‑annually
6.82%503 500 November 2035November 2034
6.82% fixed-to-floating: interest payable semi‑annually during fixed period; converts in Nov. 2034 to compounded SOFR + 2.83% payable quarterly
Total$969 $1,000 
Senior Notes
The following schedule presents our senior notes outstanding at December 31, 2025:
(Dollar amounts in millions)Senior notes
Coupon rateCarrying valuePar amountMaturity dateEarliest redemption dateInterest terms
4.70%$499 $500 August 2028August 2027
4.70% fixed-to-floating: interest payable semi‑annually during fixed period; converts in Aug. 2027 to compounded SOFR + 1.16% payable quarterly
On February 4, 2026, we issued $500 million of 4.48% Fixed-to-Floating Senior Notes, maturing on February 9, 2029. These notes are unsecured, with interest payable semi-annually during the fixed-rate period; the earliest redemption date for these notes is February 9, 2028, after which the interest rate changes to an annual floating rate equal to compounded SOFR + 1.06%, payable quarterly.
Maturities of Long-term Debt
The following schedule presents the carrying value of our long-term debt by maturity for each of the next five years:
(In millions)20262027202820292030ThereafterTotal
Subordinated notes$— $— $— $466 $— $503 $969 
Senior notes— — 499 — — — 499 
Finance lease obligations— — — — — 4 4 
Total$— $— $499 $466 $— $507 $1,472