v3.25.2
Debt Securities
 6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Securities
NOTE 3. DEBT SECURITIES
The amortized cost, gross unrealized gains and losses, and estimated fair value of debt securities held to maturity and debt securities available for sale are as follows:
 June 30, 2025
Recognized in OCI (1)
Not recognized in OCI
 Amortized
Cost		Gross Unrealized GainsGross Unrealized LossesCarrying ValueGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
 (In millions)
Debt securities held to maturity:
Mortgage-backed securities:
Residential agency$6,416 $— $(905)$5,511 $— $(147)$5,364 
Commercial agency461 — — 461 — (11)450 
$6,877 $— $(905)$5,972 $— $(158)$5,814 
Debt securities available for sale:
U.S. Treasury securities$2,166 $9 $(70)$2,105 $2,105 
Federal agency securities491 6 (10)487 487 
Obligations of states and political subdivisions2 — — 2 2 
Mortgage-backed securities:
Residential agency19,384 79 (907)18,556 18,556 
Commercial agency4,710 17 (191)4,536 4,536 
Commercial non-agency92 — (9)83 83 
Corporate and other debt securities566 5 (7)564 564 
$27,411 $116 $(1,194)$26,333 $26,333 
 
 
December 31, 2024
Recognized in OCI (1)
Not recognized in OCI
 Amortized
Cost		Gross Unrealized GainsGross Unrealized LossesCarrying ValueGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
 (In millions)
Debt securities held to maturity:
Mortgage-backed securities:
Residential agency$4,663 $— $(743)$3,920 $— $(186)$3,734 
Commercial agency507 — — 507 — (15)492 
$5,170 $— $(743)$4,427 $— $(201)$4,226 
Debt securities available for sale:
U.S. Treasury securities$2,088 $2 $(87)$2,003 $2,003 
Federal agency securities460 1 (17)444 444 
Obligations of states and political subdivisions2 — — 2 2 
Mortgage-backed securities:
Residential agency20,482 20 (1,557)18,945 18,945 
Commercial agency4,389 1 (300)4,090 4,090 
Commercial non-agency92 — (10)82 82 
Corporate and other debt securities670 2 (14)658 658 
$28,183 $26 $(1,985)$26,224 $26,224 
_________
(1)Debt securities held to maturity gross unrealized losses recognized in OCI resulted from transfers of securities available for sale.
The Company utilizes interest rate swap agreements to manage interest rate exposure on certain of the Company's fixed-rate prepayable and non-prepayable debt securities available for sale. See Note 9 for additional information.
The Company reclassified debt securities with an amortized cost, excluding items recognized in OCI, of $1.0 billion in each of the first and second quarters of 2025, for a total of $2.0 billion from available for sale to held to maturity. The Company determined it has both the positive intent and ability to hold these debt securities to maturity. The debt securities were transferred at amortized cost, in addition to the amount of any remaining unrealized holding gain or loss reported in AOCI, and represented a non-cash transaction. OCI included net pre-tax unrealized losses of $153 million and $74 million in the first and
second quarter, respectively, at the date of transfer and the offsetting OCI components are being amortized into net interest income over the remaining life of the related debt securities as a yield adjustment, resulting in no impact on future net income.
Debt securities with carrying values of $22.0 billion and $20.9 billion at June 30, 2025 and December 31, 2024, respectively, were pledged to secure public funds, trust deposits and other borrowing arrangements.
The amortized cost and estimated fair value of debt securities held to maturity and debt securities available for sale at June 30, 2025, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
Amortized
Cost		Estimated
Fair Value
 (In millions)
Debt securities held to maturity:
Mortgage-backed securities:
Residential agency$6,416 $5,364 
Commercial agency461 450 
$6,877 $5,814 
Debt securities available for sale:
Due in one year or less$441 $436 
Due after one year through five years1,895 1,851 
Due after five years through ten years815 800 
Due after ten years74 71 
Mortgage-backed securities:
Residential agency19,384 18,556 
Commercial agency4,710 4,536 
Commercial non-agency92 83 
$27,411 $26,333 
The following tables present gross unrealized losses and the related estimated fair value of debt securities held to maturity and debt securities available for sale at June 30, 2025 and December 31, 2024. For debt securities transferred to held to maturity from available for sale, the analysis in the tables below compares the debt securities' original amortized cost to its current estimated fair value. All debt securities in an unrealized position are segregated between investments that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more.
 June 30, 2025
 Less Than Twelve MonthsTwelve Months or MoreTotal
 Estimated
Fair
Value		Gross
Unrealized
Losses		Estimated
Fair
Value		Gross
Unrealized
Losses		Estimated
Fair
Value		Gross
Unrealized
Losses
 (In millions)
Debt securities held to maturity:
Mortgage-backed securities:
Residential agency$199 $(3)$5,165 $(1,049)$5,364 $(1,052)
Commercial agency— — 447 (11)447 (11)
$199 $(3)$5,612 $(1,060)$5,811 $(1,063)
Debt securities available for sale:
U.S Treasury securities$517 $(19)$1,030 $(51)$1,547 $(70)
Federal agency securities75 (1)184 (9)259 (10)
Mortgage-backed securities:
Residential agency5,021 (102)7,485 (805)12,506 (907)
Commercial agency801 (26)2,625 (165)3,426 (191)
Commercial non-agency— — 83 (9)83 (9)
Corporate and other debt securities5 — 256 (7)261 (7)
$6,419 $(148)$11,663 $(1,046)$18,082 $(1,194)
 
 December 31, 2024
 Less Than Twelve MonthsTwelve Months or MoreTotal
 Estimated
Fair
Value		Gross
Unrealized
Losses		Estimated
Fair
Value		Gross
Unrealized
Losses		Estimated
Fair
Value		Gross
Unrealized
Losses
 (In millions)
Debt securities held to maturity:
Mortgage-backed securities:
Residential agency$— $— $3,734 $(929)$3,734 $(929)
Commercial agency— — 492 (15)492 (15)
$— $— $4,226 $(944)$4,226 $(944)
Debt securities available for sale:
U.S. Treasury securities$612 $(14)$1,033 $(73)$1,645 $(87)
Federal agency securities155 (3)195 (14)350 (17)
Mortgage-backed securities:
Residential agency8,012 (203)9,605 (1,354)17,617 (1,557)
Commercial agency1,043 (35)2,991 (265)4,034 (300)
Commercial non-agency— — 82 (10)82 (10)
Corporate and other debt securities59 (1)397 (13)456 (14)
$9,881 $(256)$14,303 $(1,729)$24,184 $(1,985)
The number of individual debt security positions in an unrealized loss position in the tables above decreased to 1,531 at June 30, 2025 from 1,722 at December 31, 2024. The decrease in the total amount of unrealized losses was impacted by changes in market interest rates. In instances where an unrealized loss existed, there was no indication of an adverse change in credit on the underlying positions in the tables above. As it relates to these positions, management believes no individual unrealized loss represented credit impairment as of those dates. At June 30, 2025, the Company does not intend to sell, and it is not more likely than not that the Company will be required to sell, the positions before the recovery of their amortized cost bases, which may be at maturity.
Gross realized losses on sales of debt securities available for sale totaled $27 million and gross realized gains totaled $1 million resulting in a recognized net realized loss of $26 million for the six months ended June 30, 2025. These amounts were immaterial for the three months ended June 30, 2025. Gross realized losses on sales of debt securities available for sale totaled $50 million and $100 million, respectively, and gross realized gains were immaterial for both the three and six months ended June 30, 2024. The cost of debt securities sold is based on the specific identification method. As part of the Company's normal process for evaluating impairment, including credit-related impairment, impairment identified by management was immaterial for both the three and six months ended June 30, 2025 and 2024.