Quarterly report [Sections 13 or 15(d)]

Securities

v3.25.3
Securities
 9 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
The table below presents the amortized cost, gross unrealized gains and losses, and fair value of AFS debt securities, other debt securities carried at fair value and held-to-maturity (HTM) debt securities at September 30, 2025 and December 31, 2024.
Debt Securities
Amortized
Cost		 Gross
Unrealized
Gains		 Gross
Unrealized
Losses		 Fair
Value		 Amortized
Cost		 Gross
Unrealized
Gains		 Gross
Unrealized
Losses		 Fair
Value
(Dollars in millions) September 30, 2025 December 31, 2024
Available-for-sale debt securities
Mortgage-backed securities:
Agency $ 33,308  $ 15  $ (1,383) $ 31,940  $ 32,781  $ 35  $ (1,614) $ 31,202 
Agency-collateralized mortgage obligations 20,418  14  (150) 20,282  19,519  17  (218) 19,318 
Commercial 32,335  112  (424) 32,023  26,032  73  (503) 25,602 
Non-agency residential (1)
275  54  (54) 275  287  50  (52) 285 
Total mortgage-backed securities 86,336  195  (2,011) 84,520  78,619  175  (2,387) 76,407 
U.S. Treasury and government agencies 267,405  198  (970) 266,633  235,582  150  (1,153) 234,579 
Non-U.S. securities 28,045  45  (13) 28,077  22,453  20  (42) 22,431 
Other taxable securities 3,093  10  (29) 3,074  4,646  2  (45) 4,603 
Tax-exempt securities 8,145  19  (175) 7,989  8,628  17  (233) 8,412 
Total available-for-sale debt securities 393,024  467  (3,198) 390,293  349,928  364  (3,860) 346,432 
Other debt securities carried at fair value (2)
14,272  162  (91) 14,343  12,352  59  (236) 12,175 
Total debt securities carried at fair value 407,296  629  (3,289) 404,636  362,280  423  (4,096) 358,607 
Held-to-maturity debt securities
Agency mortgage-backed securities 403,854  —  (71,037) 332,817  430,135  —  (88,458) 341,677 
U.S. Treasury and government agencies 121,232  —  (13,093) 108,139  121,696  —  (18,661) 103,035 
Other taxable securities 6,363  2  (777) 5,588  6,882  1  (1,047) 5,836 
Total held-to-maturity debt securities 531,449  2  (84,907) 446,544  558,713  1  (108,166) 450,548 
Total debt securities (3,4)
$ 938,745  $ 631  $ (88,196) $ 851,180  $ 920,993  $ 424  $ (112,262) $ 809,155 
(1)At September 30, 2025 and December 31, 2024, the underlying collateral type included approximately 26 percent and 25 percent prime and 74 percent and 75 percent subprime.
(2)Primarily includes non-U.S. securities used to satisfy certain international regulatory requirements. Any changes in value are reported in market making and similar activities. For detail on the components, see Note 14 – Fair Value Measurements.
(3)Includes securities pledged as collateral of $165.4 billion and $184.6 billion at September 30, 2025 and December 31, 2024.
(4)The Corporation held debt securities from Fannie Mae (FNMA) and Freddie Mac (FHLMC) that each exceeded 10 percent of shareholders’ equity, with an amortized cost of $246.2 billion and $157.6 billion, and a fair value of $205.0 billion and $131.4 billion at September 30, 2025, and an amortized cost of $260.9 billion and $169.0 billion, and a fair value of $209.6 billion and $136.5 billion at December 31, 2024.
At September 30, 2025, the accumulated net unrealized loss on AFS debt securities, excluding the amount related to debt securities previously transferred to held to maturity, included in accumulated OCI was $2.0 billion, net of the related income tax benefit of $666 million. At September 30, 2025 and December 31, 2024, nonperforming AFS debt securities held by the Corporation were not significant.
At September 30, 2025 and December 31, 2024, $883.5 billion and $871.1 billion of AFS and HTM debt securities, which were predominantly U.S. agency and U.S. Treasury securities, have a zero credit loss assumption. For the same periods, the expected credit losses on the remaining $41.0 billion and $37.5 billion of AFS and HTM debt securities were insignificant. For more information on the zero credit loss assumption, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2024 Annual Report on Form 10-K.
At September 30, 2025 and December 31, 2024, the Corporation held equity securities at an aggregate fair value of $252 million and $247 million and other equity securities, as valued under the measurement alternative, at a carrying value
of $478 million and $438 million, both of which are included in other assets. At September 30, 2025 and December 31, 2024, the Corporation also held money market investments at a fair value of $1.4 billion and $1.3 billion, which are included in time deposits placed and other short-term investments.
The gross realized gains and losses on sales of AFS debt securities for the three and nine months ended September 30, 2025 and 2024 are presented in the table below.
Gains and Losses on Sales of AFS Debt Securities
Three Months Ended September 30 Nine Months Ended September 30
(Dollars in millions) 2025 2024 2025 2024
Gross gains $ 34  $ 4  $ 50  $ 19 
Gross losses (37) (23) (73) (25)
Net gains (losses) on sales of AFS debt securities $ (3) $ (19) $ (23) $ (6)
Income tax expense (benefit) attributable to realized net gains (losses) on sales of AFS debt securities $ (1) $ (5) $ (6) $ (1)
The table below presents the fair value and the associated gross unrealized losses on AFS debt securities and whether these securities have had gross unrealized losses for less than 12 months or for 12 months or longer at September 30, 2025 and December 31, 2024. Substantially all of the unrealized losses relate to debt securities that have a zero credit loss assumption.
Total AFS Debt Securities in a Continuous Unrealized Loss Position
Less than Twelve Months Twelve Months or Longer Total
Fair
Value		 Gross
 Unrealized
 Losses		 Fair
Value		 Gross
 Unrealized
 Losses		 Fair
Value		 Gross
 Unrealized
 Losses
(Dollars in millions) September 30, 2025
Continuously unrealized loss-positioned AFS debt securities
Mortgage-backed securities:      
Agency $ 8,797  $ (17) $ 19,137  $ (1,366) $ 27,934  $ (1,383)
Agency-collateralized mortgage obligations 5,690  (9) 2,037  (141) 7,727  (150)
Commercial 9,474  (37) 5,821  (387) 15,295  (424)
Non-agency residential —  —  154  (54) 154  (54)
Total mortgage-backed securities 23,961  (63) 27,149  (1,948) 51,110  (2,011)
U.S. Treasury and government agencies 43,485  (47) 102,604  (923) 146,089  (970)
Non-U.S. securities 5,704  (2) 3,557  (11) 9,261  (13)
Other taxable securities 815  (3) 918  (26) 1,733  (29)
Tax-exempt securities 401  —  1,601  (175) 2,002  (175)
Total AFS debt securities in a continuous
   unrealized loss position
 $ 74,366  $ (115) $ 135,829  $ (3,083) $ 210,195  $ (3,198)
December 31, 2024
Continuously unrealized loss-positioned AFS debt securities
Mortgage-backed securities:
Agency $ 2,908  $ (22) $ 20,085  $ (1,592) $ 22,993  $ (1,614)
Agency-collateralized mortgage obligations 9,597  (21) 1,493  (197) 11,090  (218)
Commercial 11,486  (57) 4,667  (446) 16,153  (503)
Non-agency residential —  —  160  (52) 160  (52)
Total mortgage-backed securities 23,991  (100) 26,405  (2,287) 50,396  (2,387)
U.S. Treasury and government agencies 75,753  (135) 69,027  (1,018) 144,780  (1,153)
Non-U.S. securities 3,367  (26) 4,906  (16) 8,273  (42)
Other taxable securities 3,192  (5) 814  (40) 4,006  (45)
Tax-exempt securities 1,025  (20) 2,194  (213) 3,219  (233)
Total AFS debt securities in a continuous
   unrealized loss position		 $ 107,328  $ (286) $ 103,346  $ (3,574) $ 210,674  $ (3,860)
The remaining contractual maturity distribution and yields of the Corporation’s debt securities carried at fair value and HTM debt securities at September 30, 2025 are summarized in the table below. Actual duration and yields may differ as prepayments on the loans underlying the mortgage-backed securities (MBS) or other asset-backed securities (ABS) are passed through to the Corporation.
Maturities of Debt Securities Carried at Fair Value and Held-to-maturity Debt Securities
Due in One
Year or Less		 Due after One Year
through Five Years		 Due after Five Years
through Ten Years		 Due after
Ten Years		 Total
(Dollars in millions) Amount
Yield (1)
Amount
Yield (1)
Amount
Yield (1)
Amount
Yield (1)
Amount
Yield (1)
Amortized cost of debt securities carried at fair value                    
Mortgage-backed securities:                    
Agency $ —  —  % $ 4  2.71  % $ 5  4.06  % $ 33,299  4.57  % $ 33,308  4.57  %
Agency-collateralized mortgage obligations —  —  —  —  1  1.00  20,417  5.21  20,418  5.21 
Commercial 127  2.80  13,023  4.18  16,980  4.37  2,217  3.61  32,347  4.23 
Non-agency residential —  —  —  —  —  —  546  11.80  546  11.80 
Total mortgage-backed securities 127  2.80  13,027  4.18  16,986  4.37  56,479  4.84  86,619  4.64 
U.S. Treasury and government agencies 53,681  4.40  201,148  3.66  14,987  3.13  34  3.98  269,850  3.78 
Non-U.S. securities 24,607  2.83  4,570  1.78  5,428  4.11  4,984  3.47  39,589  2.97 
Other taxable securities 593  5.44  1,808  4.92  363  3.78  329  4.40  3,093  4.83 
Tax-exempt securities 648  2.99  2,894  3.54  868  3.17  3,735  3.69  8,145  3.53 
Total amortized cost of debt securities carried at fair value $ 79,656  3.91  $ 223,447  3.66  $ 38,632  3.82  $ 65,561  4.66  $ 407,296  3.89 
Amortized cost of HTM debt securities
Agency mortgage-backed securities $ —  —  % $ —  —  % $ 53  2.89  % $ 403,801  2.11  % $ 403,854  2.11  %
U.S. Treasury and government agencies —  —  61,817  1.39  59,415  1.39  —  —  121,232  1.39 
Other taxable securities 688  1.85  384  3.04  238  2.53  5,053  2.53  6,363  2.49 
Total amortized cost of HTM debt securities $ 688  1.85  $ 62,201  1.40  $ 59,706  1.39  $ 408,854  2.12  $ 531,449  1.95 
Debt securities carried at fair value                    
Mortgage-backed securities:                    
Agency $ —    $ 4    $ 6    $ 31,930    $ 31,940   
Agency-collateralized mortgage obligations —    —    1    20,281    20,282   
Commercial 126    13,002    16,870    2,036    32,034   
Non-agency residential —    —    —    528    528   
Total mortgage-backed securities 126  13,006  16,877  54,775  84,784 
U.S. Treasury and government agencies 53,793  200,497  14,755  32  269,077 
Non-U.S. securities 24,717    4,576    5,431    4,985    39,709   
Other taxable securities 593    1,809    354    321    3,077   
Tax-exempt securities 648    2,883    870    3,588    7,989   
Total debt securities carried at fair value $ 79,877    $ 222,771    $ 38,287    $ 63,701    $ 404,636   
Fair value of HTM debt securities
Agency mortgage-backed securities $ —  $ —  $ 50  $ 332,767  $ 332,817 
U.S. Treasury and government agencies —  55,658  52,481  —  108,139 
Other taxable securities 681  375  194  4,338  5,588 
Total fair value of HTM debt securities $ 681  $ 56,033  $ 52,725  $ 337,105  $ 446,544 
(1)The weighted-average yield is computed based on a constant effective yield over the contractual life of each security. The yield considers the contractual coupon and the amortization of premiums and accretion of discounts, excluding the effect of related open hedging derivatives.