Investment Securities

12 Months Ended

Dec. 31, 2025

Investments, Debt and Equity Securities [Abstract]

Debt securities available-for-sale

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


	December 31, 2025
	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Debt securities available-for-sale
Mortgage-Related Debt Securities:
GSE CMOs	$	12,129	$	55	$	360	$	11,824
GSE certificates	1,116		2		119		999
Private label CMOs	147		12		—		159
Total mortgage-related debt securities	$	13,392	$	69	$	479	$	12,982
Other Debt Securities:
GSE debentures	$	1,502	$	—	$	206	$	1,296
U. S. Treasury obligations	1,001		16		—		1,017
Corporate bonds	147		—		3		144
Asset-backed securities	217		—		4		213
Capital trust notes	47		6		8		45

Municipal bonds	4		—		—		4
Total debt securities	$	2,918	$	22	$	221	$	2,719
Total debt securities available-for-sale, net of allowance(1)(2)(3)(4)	$	16,310	$	91	$	700	$	15,701

(1)At December 31, 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 December 31, 2025, the ACL was $2 million.

(3)Excludes accrued interest receivable of $58 million included in Other assets in the Consolidated Statements of Condition.

(4)We pledged investment securities of $15.4 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	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(1)(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 Consolidated Statements of Condition.

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

There were $95 million, $106 million, $1.6 billion of available-for-sale securities sold during the year ended December 31, 2025, 2024, and 2023, respectively.

There was an immaterial amount of realized gains and losses on sales of available-for-sale securities in the year ended December 31, 2025. During the year ended December 31, 2024, gross realized gains and losses were less than $1 million. During the year ended December 31, 2023, gross realized gains were $2 million and gross realized losses were $3 million.

The following table summarizes, by contractual maturity, the fair value of securities as of December 31, 2025:


	Mortgage- Related Securities		U.S. Government and GSE Obligations		Corporate and Other Bonds		Asset-Backed Securities		Total

Available-for-Sale Debt Securities:

Due from one to five years	$	148	$	1,083	$	128	$	—	$	1,359
Due from five to ten years	210		1,230		27		—		1,467
Due after ten years	12,624		—		38		213		12,875
Total debt securities available-for-sale	$	12,982	$	2,313	$	193	$	213	$	15,701

The following table presents securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 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:

U.S. Government agency and GSE obligations	33	$	—	$	—	$	1,297	$	206	$	1,297	$	206
GSE certificates	324	8		—		926		119		934		119

GSE CMOs	226	427		1		2,993		359		3,420		360
Asset-backed securities	5	—		—		152		4		152		4
Municipal bonds	1	—		—		4		—		4		—
Corporate bonds	5	—		—		144		3		144		3

Capital trust notes	5	—		—		35		8		35		8
Total debt securities in a continuous unrealized loss position	599	$	435	$	1	$	5,551	$	699	$	5,986	$	700

(1)Count of securities that have been in a loss position for twelve or more months.

The following table presents 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 in the 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 December 31, 2025, and December 31, 2024, we held equity securities with readily determinable fair values of $65 million and $14 million, respectively. During the year ended 2025, we recognized a gain of $30 million, which was recorded in Net gain on investment securities in the Consolidated Statements of (Loss) Income, resulting 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 year ended 2025, we recognized total gains of $31 million on all our equity investment securities, compared to an immaterial amount for the years ended 2024 and 2023