Quarterly report [Sections 13 or 15(d)]

Securities

v3.26.1
Securities
 3 Months Ended
Mar. 31, 2026
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 March 31, 2026 and December 31, 2025.
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) March 31, 2026 December 31, 2025
Available-for-sale debt securities
Mortgage-backed securities:
Agency $ 44,544  $ 72  $ (1,170) $ 43,446  $ 34,240  $ 80  $ (1,179) $ 33,141 
Agency-collateralized mortgage obligations 18,365  47  (137) 18,275  19,304  27  (132) 19,199 
Commercial 44,212  181  (452) 43,941  38,688  191  (385) 38,494 
Non-agency residential (1)
270  54  (61) 263  273  55  (56) 272 
Total mortgage-backed securities 107,391  354  (1,820) 105,925  92,505  353  (1,752) 91,106 
U.S. Treasury and government agencies 215,210  103  (866) 214,447  250,065  390  (621) 249,834 
Non-U.S. securities 33,455  4  (47) 33,412  31,765  20  (18) 31,767 
Other taxable securities 6,185  3  (57) 6,131  6,328  12  (36) 6,304 
Tax-exempt securities 9,203  14  (169) 9,048  7,948  15  (176) 7,787 
Total available-for-sale debt securities 371,444  478  (2,959) 368,963  388,611  790  (2,603) 386,798 
Other debt securities carried at fair value (2)
17,492  118  (184) 17,426  16,066  200  (89) 16,177 
Total debt securities carried at fair value 388,936  596  (3,143) 386,389  404,677  990  (2,692) 402,975 
Held-to-maturity debt securities
Agency mortgage-backed securities 387,880  —  (67,766) 320,114  395,415  —  (67,309) 328,106 
U.S. Treasury and government agencies 121,252  —  (12,640) 108,612  121,242  —  (12,225) 109,017 
Other taxable securities 5,631  2  (748) 4,885  6,028  2  (723) 5,307 
Total held-to-maturity debt securities 514,763  2  (81,154) 433,611  522,685  2  (80,257) 442,430 
Total debt securities (3,4)
$ 903,699  $ 598  $ (84,297) $ 820,000  $ 927,362  $ 992  $ (82,949) $ 845,405 
(1)At both March 31, 2026 and December 31, 2025, the underlying collateral type included approximately 27 percent prime and 73 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 $132.1 billion and $153.8 billion at March 31, 2026 and December 31, 2025.
(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 $245.8 billion and $159.4 billion, and a fair value of $206.5 billion and $134.4 billion at March 31, 2026, and an amortized cost of $246.9 billion and $158.5 billion, and a fair value of $208.0 billion and $133.6 billion at December 31, 2025.
At March 31, 2026 and December 31, 2025, the Corporation’s expected credit losses on AFS and HTM debt securities with a total amortized cost of $886.2 billion and $911.3 billion were not significant. Of these amounts, $835.9 billion and $863.7 billion of AFS and HTM debt securities were predominantly U.S. agency and U.S. Treasury securities and had a zero credit loss assumption as of the end of the same periods. At March 31, 2026 and December 31, 2025, nonperforming AFS debt securities held by the Corporation were not significant. 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 2025 Annual Report on Form 10-K.
At March 31, 2026 and December 31, 2025, the Corporation held equity securities at an aggregate fair value of $250 million and $253 million, respectively, and other equity securities, as valued under the measurement alternative, at a carrying value of $523 million and $479 million, respectively,
both of which are included in other assets. At March 31, 2026 and December 31, 2025, the Corporation also held money market investments at a fair value of $1.3 billion and $1.2 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 months ended March 31, 2026 and 2025 are presented in the table below.
Gains and Losses on Sales of AFS Debt Securities
Three Months Ended March 31
(Dollars in millions) 2026 2025
Gross gains $ 67  $ 11 
Gross losses (64) (13)
Net gains (losses) on sales of AFS debt securities $ 3  $ (2)
Income tax expense (benefit) attributable to realized net gains (losses) on sales of AFS debt securities $ 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 March 31, 2026 and December 31, 2025. 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) March 31, 2026
Continuously unrealized loss-positioned AFS debt securities
Mortgage-backed securities:      
Agency $ 17,327  $ (93) $ 16,487  $ (1,077) $ 33,814  $ (1,170)
Agency-collateralized mortgage obligations 456  (1) 1,377  (136) 1,833  (137)
Commercial 15,687  (106) 4,394  (346) 20,081  (452)
Non-agency residential —  —  150  (61) 150  (61)
Total mortgage-backed securities 33,470  (200) 22,408  (1,620) 55,878  (1,820)
U.S. Treasury and government agencies 97,001  (250) 48,515  (616) 145,516  (866)
Non-U.S. securities 15,834  (39) 2,704  (8) 18,538  (47)
Other taxable securities 3,770  (20) 1,304  (37) 5,074  (57)
Tax-exempt securities 372  (1) 3,310  (168) 3,682  (169)
Total AFS debt securities in a continuous
   unrealized loss position
 $ 150,447  $ (510) $ 78,241  $ (2,449) $ 228,688  $ (2,959)
December 31, 2025
Continuously unrealized loss-positioned AFS debt securities
Mortgage-backed securities:
Agency $ 1,645  $ —  $ 18,512  $ (1,179) $ 20,157  $ (1,179)
Agency-collateralized mortgage obligations 2,503  (5) 2,351  (127) 4,854  (132)
Commercial 8,795  (27) 5,527  (358) 14,322  (385)
Non-agency residential —  —  154  (56) 154  (56)
Total mortgage-backed securities 12,943  (32) 26,544  (1,720) 39,487  (1,752)
U.S. Treasury and government agencies 5,398  (7) 68,763  (614) 74,161  (621)
Non-U.S. securities 10,891  (10) 2,808  (8) 13,699  (18)
Other taxable securities 979  (5) 1,356  (31) 2,335  (36)
Tax-exempt securities 415  (1) 1,730  (175) 2,145  (176)
Total AFS debt securities in a continuous
   unrealized loss position		 $ 30,626  $ (55) $ 101,201  $ (2,548) $ 131,827  $ (2,603)
The remaining contractual maturity distribution and yields of the Corporation’s debt securities carried at fair value and HTM debt securities at March 31, 2026 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 $ —  —  % $ 3  3.08  % $ 5  4.37  % $ 44,541  4.71  % $ 44,549  4.71  %
Agency-collateralized mortgage obligations —  —  —  —  1  1.00  18,364  5.57  18,365  5.57 
Commercial 195  2.82  22,703  4.17  18,998  4.42  2,329  5.11  44,225  4.32 
Non-agency residential —  —  —  —  11  22.08  538  11.73  549  11.93 
Total mortgage-backed securities 195  2.82  22,706  4.17  19,015  4.43  65,772  5.02  107,688  4.73 
U.S. Treasury and government agencies 29,575  4.13  173,862  3.59  16,422  3.47  31  3.97  219,890  3.65 
Non-U.S. securities 25,817  2.65  4,626  2.96  7,595  4.41  7,932  4.09  45,970  3.22 
Other taxable securities 837  5.03  4,233  4.33  422  3.79  693  4.41  6,185  4.39 
Tax-exempt securities 2,181  3.42  2,656  3.23  821  2.95  3,545  3.35  9,203  3.30 
Total amortized cost of debt securities carried at fair value $ 58,605  3.46  $ 208,083  3.65  $ 44,275  4.04  $ 77,973  4.84  $ 388,936  3.90 
Amortized cost of HTM debt securities
Agency mortgage-backed securities $ —  —  % $ —  —  % $ 47  2.92  % $ 387,833  2.11  % $ 387,880  2.11  %
U.S. Treasury and government agencies 4,098  1.69  90,914  1.38  26,240  1.38  —  —  121,252  1.39 
Other taxable securities 296  1.27  259  2.92  266  2.49  4,810  2.53  5,631  2.48 
Total amortized cost of HTM debt securities $ 4,394  1.67  $ 91,173  1.39  $ 26,553  1.39  $ 392,643  2.12  $ 514,763  1.95 
Debt securities carried at fair value                    
Mortgage-backed securities:                    
Agency $ —    $ 3    $ 5    $ 43,443    $ 43,451   
Agency-collateralized mortgage obligations —    —    1    18,274    18,275   
Commercial 193    22,629    18,971    2,160    43,953   
Non-agency residential —    —    27    475    502   
Total mortgage-backed securities 193  22,632  19,004  64,352  106,181 
U.S. Treasury and government agencies 29,611  173,249  16,236  30  219,126 
Non-U.S. securities 25,765    4,619    7,590    7,925    45,899   
Other taxable securities 835    4,206    411    683    6,135   
Tax-exempt securities 2,181    2,644    812    3,411    9,048   
Total debt securities carried at fair value $ 58,585    $ 207,350    $ 44,053    $ 76,401    $ 386,389   
Fair value of HTM debt securities
Agency mortgage-backed securities $ —  $ —  $ 45  $ 320,069  $ 320,114 
U.S. Treasury and government agencies 4,028  81,513  23,071  —  108,612 
Other taxable securities 294  252  221  4,118  4,885 
Total fair value of HTM debt securities $ 4,322  $ 81,765  $ 23,337  $ 324,187  $ 433,611 
(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.