v3.25.4
Debt Securities
12 Months Ended
Dec. 31, 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:
 December 31, 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$6,103 $— $(866)$5,237 $37 $(53)$5,221 
Commercial agency370 — (1)369 — (6)363 
$6,473 $— $(867)$5,606 $37 $(59)$5,584 
Debt securities available for sale:
U.S. Treasury securities$2,313 $10 $(47)$2,276 $2,276 
Federal agency securities544 (7)543 543 
Obligations of states and political subdivisions— — 
Mortgage-backed securities:
Residential agency18,820 244 (677)18,387 18,387 
Commercial agency5,925 34 (130)5,829 5,829 
Commercial non-agency91 — (9)82 82 
Corporate and other debt securities439 (3)441 441 
$28,134 $299 $(873)$27,560 $27,560 
 
 
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 $$(87)$2,003 $2,003 
Federal agency securities460 (17)444 444 
Obligations of states and political subdivisions— — 
Mortgage-backed securities:
Residential agency20,482 20 (1,557)18,945 18,945 
Commercial agency4,389 (300)4,090 4,090 
Commercial non-agency92 — (10)82 82 
Corporate and other debt securities670 (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 20 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 quarters, 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 $20.9 billion at both December 31, 2025 and 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 December 31, 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$6,103 $5,221 
Commercial agency370 363 
$6,473 $5,584 
Debt securities available for sale:
Due in one year or less$292 $291 
Due after one year through five years1,930 1,908 
Due after five years through ten years1,005 994 
Due after ten years71 69 
Mortgage-backed securities:
Residential agency18,820 18,387 
Commercial agency5,925 5,829 
Commercial non-agency91 82 
$28,134 $27,560 
The following tables present gross unrealized losses and the related estimated fair value of debt securities available for sale at December 31, 2025 and 2024. 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.
 December 31, 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 available for sale:
U.S Treasury securities$203 $(1)$1,197 $(46)$1,400 $(47)
Federal agency securities— — 57 (7)57 (7)
Mortgage-backed securities:
Residential agency— — 8,498 (677)8,498 (677)
Commercial agency754 (3)2,430 (127)3,184 (130)
Commercial non-agency— — 82 (9)82 (9)
Corporate and other debt securities— — 169 (3)169 (3)
$957 $(4)$12,433 $(869)$13,390 $(873)
 
 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 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 1,058 at December 31, 2025 from 1,564 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 December 31, 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.
The following table presents gross realized gains and gross realized losses on sales of debt securities available for sale as of December 31: