AFS and HTM Debt Securities

3 Months Ended

Mar. 31, 2026

AFS And HTM Debt Securities [Abstract]

Available-for-Sale and Held-to-Maturity Debt Securities


Note 2: Available-for-Sale and Held-to-Maturity Debt Securities

Table 2.1 provides the amortized cost, net of the allowance for credit losses (ACL) for debt securities, and fair value by major categories of available-for-sale (AFS) debt securities, which are carried at fair value, and held-to-maturity (HTM) debt securities, which are carried at amortized cost, net of the ACL. The net unrealized gains (losses) for AFS debt securities are reported as a component of accumulated other comprehensive income (AOCI), net of the ACL and applicable income taxes. Information on debt securities held for trading is included in Note 17 (Revenue and Expenses). For both AFS and HTM debt securities, amortized cost is the unpaid principal amount, net of unamortized basis

adjustments. Basis adjustments may include purchase premiums or discounts, fair value hedge accounting basis adjustments, fair value write-downs related to recognition of intent to sell, impairment losses, and charge-offs or recoveries of amounts deemed uncollectible.

Outstanding balances exclude accrued interest receivable on AFS and HTM debt securities, which is included in other assets. See Note 5 (Intangible Assets and Other Assets) for additional information on accrued interest receivable. Amounts considered to be uncollectible are reversed through interest income.

Table 2.1: Available-for-Sale and Held-to-Maturity Debt Securities Outstanding


(in millions)	Amortized cost, net (1)		Gross unrealized gains	Gross unrealized losses	Net unrealized gains (losses)	Fair value
March 31, 2026
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	$	57,824	116	(253)	(137)	57,687
Securities of U.S. states and political subdivisions (2)	10,278		23	(358)	(335)	9,943
Federal agency mortgage-backed securities	147,913		794	(3,885)	(3,091)	144,822
Non-agency mortgage-backed securities (3)	1,868		2	(12)	(10)	1,858
Collateralized loan obligations	8,210		3	(8)	(5)	8,205
Other debt securities	307		54	(3)	51	358
Total available-for-sale debt securities, excluding portfolio level basis adjustments	226,400		992	(4,519)	(3,527)	222,873
Portfolio level basis adjustments (4)	(41)				41	—
Total available-for-sale debt securities	226,359		992	(4,519)	(3,486)	222,873
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies	3,799		—	(1,767)	(1,767)	2,032
Securities of U.S. states and political subdivisions	17,400		1	(3,471)	(3,470)	13,930
Federal agency mortgage-backed securities	175,626		52	(27,647)	(27,595)	148,031
Non-agency mortgage-backed securities (3)	1,522		73	(41)	32	1,554
Collateralized loan obligations	4,016		10	—	10	4,026
Other debt securities	1,717		9	(1)	8	1,725
Total held-to-maturity debt securities	204,080		145	(32,927)	(32,782)	171,298
Total	$	430,439	1,137	(37,446)	(36,268)	394,171
December 31, 2025
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	$	51,738	308	(237)	71	51,809

Securities of U.S. states and political subdivisions (2)	10,706		34	(343)	(309)	10,397
Federal agency mortgage-backed securities	142,022		1,447	(3,389)	(1,942)	140,080
Non-agency mortgage-backed securities (3)	2,141		3	(18)	(15)	2,126
Collateralized loan obligations	7,895		11	(2)	9	7,904
Other debt securities	1,198		61	(2)	59	1,257
Total available-for-sale debt securities, excluding portfolio level basis adjustments	215,700		1,864	(3,991)	(2,127)	213,573
Portfolio level basis adjustments (4)	75				(75)	—
Total available-for-sale debt securities	215,775		1,864	(3,991)	(2,202)	213,573
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies	3,797		—	(1,747)	(1,747)	2,050
Securities of U.S. states and political subdivisions	17,476		2	(3,270)	(3,268)	14,208
Federal agency mortgage-backed securities	178,882		79	(27,353)	(27,274)	151,608
Non-agency mortgage-backed securities (3)	1,497		82	(39)	43	1,540
Collateralized loan obligations	4,655		19	—	19	4,674
Other debt securities	1,716		7	(6)	1	1,717
Total held-to-maturity debt securities	208,023		189	(32,415)	(32,226)	175,797
Total	$	423,798	2,053	(36,406)	(34,428)	389,370

(1)Represents amortized cost of the securities, net of the ACL of $5 million and $23 million related to AFS debt securities at March 31, 2026, and December 31, 2025, respectively, and $93 million and $95 million related to HTM debt securities at March 31, 2026, and December 31, 2025, respectively.

(2)Includes investments in tax-exempt preferred debt securities issued by investment funds or trusts that predominantly invest in tax-exempt municipal securities. The amortized cost, net of the ACL, and fair value of these types of securities, was $2.5 billion at both March 31, 2026, and December 31, 2025.

(3)Predominantly consists of commercial mortgage-backed securities at both March 31, 2026, and December 31, 2025.

(4)Represents fair value hedge basis adjustments related to active portfolio layer method hedges of AFS debt securities, which are not allocated to individual securities in the portfolio. For additional information, see Note 10 (Derivatives).

Table 2.2 details the breakout of purchases of HTM debt securities by major category of security. There were no transfers to HTM debt securities during the periods presented below.

Table 2.2: Held-to-Maturity Debt Securities Purchases


	Quarter ended March 31,
(in millions)		2026		2025
Purchases of held-to-maturity debt securities (1):



Non-agency mortgage-backed securities		$	35	86


Total purchases of held-to-maturity debt securities		$	35	86

(1)Inclusive of non-cash purchases from securitization of loans held for sale (LHFS).

Table 2.3 shows the composition of interest income, provision for credit losses, and gross realized gains and losses

from sales and impairment write-downs, if any, included in earnings related to AFS and HTM debt securities (pre-tax).

Table 2.3: Income Statement Impacts for Available-for-Sale and Held-to-Maturity Debt Securities


	Quarter ended March 31,
(in millions)		2026		2025
Interest income:
Available-for-sale		$	2,385	1,942
Held-to-maturity		1,159		1,379
Total interest income		3,544		3,321
Provision for credit losses:
Available-for-sale		—		(1)
Held-to-maturity		(4)		8
Total provision for credit losses		(4)		7
Realized gains and losses (1):
Gross realized gains		68		2
Gross realized losses		(68)		(116)
Impairment write-downs		—		(33)
Net realized losses		$	—	(147)

(1)Realized gains and losses relate to AFS debt securities. There were no realized gains or losses from HTM debt securities in all periods presented.

Credit Quality

We monitor credit quality of debt securities by evaluating various attributes and utilize such information in our evaluation of the appropriateness of the ACL for debt securities. The credit quality indicators that we most closely monitor include credit ratings and delinquency status and are based on information as of our financial statement date.

CREDIT RATINGS. Credit ratings express opinions about the credit quality of a debt security. We determine the credit rating of a security according to the lowest credit rating made available by national recognized statistical rating organizations (NRSROs). Debt securities rated investment grade (those with ratings similar to BBB-/Baa3 or above) as defined by NRSROs, are generally considered by the rating agencies and market

participants to be low credit risk. Conversely, debt securities rated below investment grade, labeled as “speculative grade” by the rating agencies, are considered to be distinctively higher credit risk than investment grade debt securities. For debt securities not rated by NRSROs, we determine an internal credit grade of the debt securities (used for credit risk management purposes) equivalent to the credit ratings assigned by major credit agencies. Substantially all of our debt securities were rated by NRSROs at March 31, 2026, and December 31, 2025.

Table 2.4 shows the percentage of fair value of AFS debt securities and amortized cost of HTM debt securities determined to be rated investment grade, inclusive of securities rated based on internal credit grades.

Table 2.4: Investment Grade Debt Securities


	Available-for-Sale				Held-to-Maturity
($ in millions)	Fair value		% investment grade		Amortized cost		% investment grade
March 31, 2026
Total portfolio (1)	$	222,873	99	%	$	204,173	99	%
Breakdown by category:
Securities of U.S. Treasury and federal agencies (2)	$	202,509	100	%	$	179,425	100	%
Securities of U.S. states and political subdivisions	9,943		99		17,411		100
Collateralized loan obligations (3)	8,205		100		4,022		100
All other debt securities (4)	2,216		89		3,315		59
December 31, 2025
Total portfolio (1)	$	213,573	99	%	$	208,118	99	%
Breakdown by category:
Securities of U.S. Treasury and federal agencies (2)	$	191,889	100	%	$	182,679	100	%
Securities of U.S. states and political subdivisions	10,397		99		17,487		100
Collateralized loan obligations (3)	7,904		100		4,660		100
All other debt securities (4)	3,383		91		3,292		59

(1)99% were rated AA- and above at both March 31, 2026, and December 31, 2025.

(2)Includes federal agency mortgage-backed securities.

(3)100% were rated AA- and above at both March 31, 2026, and December 31, 2025.

(4)Includes non-U.S. government, non-agency mortgage-backed, and all other debt securities.

DELINQUENCY STATUS AND NONACCRUAL DEBT SECURITIES. Debt security issuers that are delinquent in payment of amounts due under contractual debt agreements have a higher probability of recognition of credit losses. As part of our monitoring of the credit quality of the debt security portfolio, we consider whether debt securities we own are past due in payment of principal or interest payments and whether any securities have been placed into nonaccrual status.

Debt securities that are past due and still accruing or in nonaccrual status were insignificant at both March 31, 2026, and December 31, 2025. Net charge-offs on debt securities were insignificant in the first quarter of both 2026 and 2025.

Unrealized Losses of Available-for-Sale Debt Securities

Table 2.5 shows the gross unrealized losses and fair value of AFS debt securities by length of time those individual securities in each category have been in a continuous loss position. Debt securities on which we have recognized credit impairment are

categorized as being “less than 12 months” or “12 months or more” in a continuous loss position based on the point in time that the fair value declined to below the amortized cost basis, net of the allowance for credit losses.

Table 2.5: Gross Unrealized Losses and Fair Value – Available-for-Sale Debt Securities


	Less than 12 months			12 months or more		Total
(in millions)	Gross unrealized losses (1)		Fair value	Gross unrealized losses (1)	Fair value	Gross unrealized losses (1)	Fair value
March 31, 2026
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	$	(27)	12,151	(226)	5,346	(253)	17,497
Securities of U.S. states and political subdivisions	(16)		1,163	(342)	4,743	(358)	5,906
Federal agency mortgage-backed securities	(1,437)		54,727	(2,448)	25,637	(3,885)	80,364
Non-agency mortgage-backed securities	(1)		734	(11)	550	(12)	1,284
Collateralized loan obligations	(8)		5,043	—	—	(8)	5,043
Other debt securities	—		—	(3)	17	(3)	17
Total available-for-sale debt securities	$	(1,489)	73,818	(3,030)	36,293	(4,519)	110,111
December 31, 2025
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies	$	—	—	(237)	6,119	(237)	6,119
Securities of U.S. states and political subdivisions	(5)		222	(338)	5,701	(343)	5,923
Federal agency mortgage-backed securities	(988)		11,307	(2,401)	37,377	(3,389)	48,684
Non-agency mortgage-backed securities	—		—	(18)	744	(18)	744
Collateralized loan obligations	(2)		1,776	—	—	(2)	1,776
Other debt securities	—		—	(2)	71	(2)	71
Total available-for-sale debt securities	$	(995)	13,305	(2,996)	50,012	(3,991)	63,317

(1)Gross unrealized losses exclude portfolio level basis adjustments.

We have assessed each debt security with gross unrealized losses included in the previous table for credit impairment. As part of that assessment we evaluated and concluded that we do not intend to sell any of the debt securities, and that it is more likely than not that we will not be required to sell, prior to recovery of the amortized cost basis. We evaluate, where necessary, whether credit impairment exists by comparing the present value of the expected cash flows to the debt securities’ amortized cost basis. Credit impairment is recognized as an ACL for debt securities.

For descriptions of the factors we consider when analyzing debt securities for impairment as well as methodology and significant inputs used to measure credit losses, see Note 1 (Summary of Significant Accounting Policies) in our 2025 Form 10-K.

Contractual Maturities

Table 2.6 and Table 2.7 show the remaining contractual maturities of AFS and HTM debt securities, respectively.

Table 2.6: Contractual Maturities – Available-for-Sale Debt Securities


By remaining contractual maturity ($ in millions)	Total			Within one year	After one year through five years	After five years through ten years	After ten years
March 31, 2026
Available-for-sale debt securities:
Securities of U.S. Treasury and federal agencies
Amortized cost, net	$	57,824		1,978	5,655	49,395	796
Fair value	57,687			1,978	5,495	49,471	743
Weighted average yield	3.89		%	3.58	1.79	4.13	4.53




Securities of U.S. states and political subdivisions
Amortized cost, net	$	10,278		819	3,754	2,154	3,551
Fair value	9,943			815	3,653	2,078	3,397
Weighted average yield	3.23		%	2.86	2.83	3.37	3.64
Federal agency mortgage-backed securities
Amortized cost, net	$	147,913		1	527	4,809	142,576
Fair value	144,822			1	525	4,808	139,488
Weighted average yield	4.50		%	1.93	3.99	4.42	4.50
Non-agency mortgage-backed securities
Amortized cost, net	$	1,868		—	—	8	1,860
Fair value	1,858			—	—	8	1,850
Weighted average yield	4.45		%	—	—	4.30	4.45
Collateralized loan obligations
Amortized cost, net	$	8,210		—	—	374	7,836
Fair value	8,205			—	—	374	7,831
Weighted average yield	5.01		%	—	—	5.11	5.00
Other debt securities
Amortized cost, net	$	307		34	206	44	23
Fair value	358			38	214	78	28
Weighted average yield	5.47		%	6.16	6.38	3.24	0.57
Total available-for-sale debt securities
Amortized cost, net (1)	$	226,400		2,832	10,142	56,784	156,642
Fair value	222,873			2,832	9,887	56,817	153,337
Weighted average yield (2)	4.30		%	3.40	2.38	4.13	4.51

(1)Amortized cost, net excludes portfolio level basis adjustments of $(41) million.

(2)Weighted average yields are calculated using the effective yield method and are weighted based on amortized cost, net of ACL. The effective yield method is calculated using the contractual coupon and the impact of any premiums and discounts and is shown pre-tax. We have not included the effect of any related hedging derivatives. The effective yield for mortgage-backed securities excludes unscheduled principal payments, and remaining expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations before the underlying mortgages mature.

Table 2.7: Contractual Maturities – Held-to-Maturity Debt Securities


By remaining contractual maturity ($ in millions)	Total			Within one year	After one year through five years	After five years through ten years	After ten years
March 31, 2026
Held-to-maturity debt securities:
Securities of U.S. Treasury and federal agencies
Amortized cost, net	$	3,799		—	—	—	3,799
Fair value	2,032			—	—	—	2,032
Weighted average yield	1.60		%	—	—	—	1.60
Securities of U.S. states and political subdivisions
Amortized cost, net	$	17,400		89	427	436	16,448
Fair value	13,930			88	419	417	13,006
Weighted average yield	2.52		%	0.94	2.33	2.67	2.53
Federal agency mortgage-backed securities
Amortized cost, net	$	175,626		—	—	—	175,626
Fair value	148,031			—	—	—	148,031
Weighted average yield	2.34		%	—	—	—	2.34
Non-agency mortgage-backed securities
Amortized cost, net	$	1,522		8	11	22	1,481
Fair value	1,554			11	17	24	1,502
Weighted average yield	3.82		%	2.47	6.24	2.75	3.82
Collateralized loan obligations
Amortized cost, net	$	4,016		—	75	3,941	—
Fair value	4,026			—	76	3,950	—
Weighted average yield	5.30		%	—	5.84	5.29	—
Other debt securities
Amortized cost, net	$	1,717		—	1,717	—	—
Fair value	1,725			—	1,725	—	—
Weighted average yield	5.27		%	—	5.27	—	—
Total held-to-maturity debt securities
Amortized cost, net	$	204,080		97	2,230	4,399	197,354
Fair value	171,298			99	2,237	4,391	164,571
Weighted average yield (1)	2.44		%	1.08	4.74	5.01	2.36

(1)Weighted average yields are calculated using the effective yield method and are weighted based on amortized cost, net of ACL. The effective yield method is calculated using the contractual coupon and the impact of any premiums and discounts and is shown pre-tax. We have not included the effect of any related hedging derivatives. The effective yield for mortgage-backed securities excludes unscheduled principal payments, and remaining expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations before the underlying mortgages mature.