Quarterly report [Sections 13 or 15(d)]

Securities

v3.25.1
Securities
 3 Months Ended
Mar. 31, 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 March 31, 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) March 31, 2025 December 31, 2024
Available-for-sale debt securities
Mortgage-backed securities:
Agency $ 31,974  $ 42  $ (1,448) $ 30,568  $ 32,781  $ 35  $ (1,614) $ 31,202 
Agency-collateralized mortgage obligations 20,718  13  (198) 20,533  19,519  17  (218) 19,318 
Commercial 30,030  85  (465) 29,650  26,032  73  (503) 25,602 
Non-agency residential (1)
282  52  (52) 282  287  50  (52) 285 
Total mortgage-backed securities 83,004  192  (2,163) 81,033  78,619  175  (2,387) 76,407 
U.S. Treasury and government agencies 260,631  213  (999) 259,845  235,582  150  (1,153) 234,579 
Non-U.S. securities 23,956  26  (18) 23,964  22,453  20  (42) 22,431 
Other taxable securities 3,032  3  (38) 2,997  4,646  2  (45) 4,603 
Tax-exempt securities 8,601  15  (206) 8,410  8,628  17  (233) 8,412 
Total available-for-sale debt securities 379,224  449  (3,424) 376,249  349,928  364  (3,860) 346,432 
Other debt securities carried at fair value (2)
12,306  114  (110) 12,310  12,352  59  (236) 12,175 
Total debt securities carried at fair value 391,530  563  (3,534) 388,559  362,280  423  (4,096) 358,607 
Held-to-maturity debt securities
Agency mortgage-backed securities 422,326  —  (79,614) 342,712  430,135  —  (88,458) 341,677 
U.S. Treasury and government agencies 121,708  —  (15,826) 105,882  121,696  —  (18,661) 103,035 
Other taxable securities 6,722  2  (910) 5,814  6,882  1  (1,047) 5,836 
Total held-to-maturity debt securities 550,756  2  (96,350) 454,408  558,713  1  (108,166) 450,548 
Total debt securities (3,4)
$ 942,286  $ 565  $ (99,884) $ 842,967  $ 920,993  $ 424  $ (112,262) $ 809,155 
(1)At March 31, 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 $189.7 billion and $184.6 billion at March 31, 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 $259.3 billion and $167.0 billion, and a fair value of $213.1 billion and $137.7 billion at March 31, 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 March 31, 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 $2.2 billion, net of the related income tax benefit of $748 million. At March 31, 2025 and December 31, 2024, nonperforming AFS debt securities held by the Corporation were not significant.
At March 31, 2025 and December 31, 2024, $892.7 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 $37.3 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 both March 31, 2025 and December 31, 2024, the Corporation held equity securities at an aggregate fair value of $247 million and other equity securities, as valued under
the measurement alternative, at a carrying value of $453 million and $438 million, both of which are included in other assets. At March 31, 2025 and December 31, 2024, the Corporation also held money market investments at a fair value of $1.5 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 months ended March 31, 2025 and 2024 are presented in the table below.
Gains and Losses on Sales of AFS Debt Securities
Three Months Ended March 31
(Dollars in millions) 2025 2024
Gross gains $ 11  $ 11 
Gross losses (13) (1)
Net gains (losses) on sales of AFS debt securities $ (2) $ 10 
Income tax expense (benefit) attributable to realized net gains (losses) on sales of AFS debt securities $ —  $ 2 
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, 2025 and December 31, 2024.
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, 2025
Continuously unrealized loss-positioned AFS debt securities
Mortgage-backed securities:      
Agency $ 923  $ (2) $ 21,037  $ (1,446) $ 21,960  $ (1,448)
Agency-collateralized mortgage obligations 12,022  (32) 1,475  (166) 13,497  (198)
Commercial 11,957  (49) 4,993  (416) 16,950  (465)
Non-agency residential —  —  160  (52) 160  (52)
Total mortgage-backed securities 24,902  (83) 27,665  (2,080) 52,567  (2,163)
U.S. Treasury and government agencies 89,932  (82) 66,905  (917) 156,837  (999)
Non-U.S. securities 3,128  (2) 5,084  (16) 8,212  (18)
Other taxable securities 1,363  (3) 868  (35) 2,231  (38)
Tax-exempt securities 1,042  (7) 2,226  (199) 3,268  (206)
Total AFS debt securities in a continuous
   unrealized loss position		 $ 120,367  $ (177) $ 102,748  $ (3,247) $ 223,115  $ (3,424)
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 March 31, 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 $ —  —  % $ 5  3.00  % $ 5  4.20  % $ 31,964  4.53  % $ 31,974  4.53  %
Agency-collateralized mortgage obligations —  —  —  —  1  1.00  20,717  5.64  20,718  5.64 
Commercial 119  3.55  11,845  4.21  15,897  4.30  2,182  3.71  30,043  4.22 
Non-agency residential —  —  —  —  —  —  549  11.62  549  11.62 
Total mortgage-backed securities 119  3.55  11,850  4.21  15,903  4.30  55,412  4.98  83,284  4.74 
U.S. Treasury and government agencies 33,717  4.54  218,753  3.87  11,615  2.70  34  3.94  264,119  3.91 
Non-U.S. securities 20,778  2.98  5,054  2.37  3,816  4.15  2,846  3.61  32,494  3.08 
Other taxable securities 888  5.75  1,613  5.24  389  4.36  142  4.51  3,032  5.24 
Tax-exempt securities 787  2.87  3,432  3.54  956  3.01  3,426  3.62  8,601  3.45 
Total amortized cost of debt securities carried at fair value
 $ 56,289  3.96  $ 240,702  3.87  $ 32,679  3.68  $ 61,860  4.84  $ 391,530  4.02 
Amortized cost of HTM debt securities
Agency mortgage-backed securities $ —  —  % $ —  —  % $ 9  2.89  % $ 422,317  2.12  % $ 422,326  2.12  %
U.S. Treasury and government agencies 496  2.71  32,580  1.67  88,632  1.28  —  —  121,708  1.39 
Other taxable securities 543  2.24  608  2.32  97  3.52  5,474  2.52  6,722  2.49 
Total amortized cost of HTM debt securities $ 1,039  2.46  $ 33,188  1.68  $ 88,738  1.28  $ 427,791  2.13  $ 550,756  1.96 
Debt securities carried at fair value                    
Mortgage-backed securities:                    
Agency $ —    $ 5    $ 5    $ 30,558    $ 30,568   
Agency-collateralized mortgage obligations —    —    1    20,532    20,533   
Commercial 118    11,809    15,746    1,989    29,662   
Non-agency residential —    2    —    528    530   
Total mortgage-backed securities 118  11,816  15,752  53,607  81,293 
U.S. Treasury and government agencies 33,798  218,150  11,353  33  263,334 
Non-U.S. securities 20,807    5,055    3,815    2,845    32,522   
Other taxable securities 885    1,606    375    134    3,000   
Tax-exempt securities 784    3,415    937    3,274    8,410   
Total debt securities carried at fair value $ 56,392    $ 240,042    $ 32,232    $ 59,893    $ 388,559   
Fair value of HTM debt securities
Agency mortgage-backed securities $ —  $ —  $ 9  $ 342,703  $ 342,712 
U.S. Treasury and government agencies 494  29,143  76,245  —  105,882 
Other taxable securities 534  588  76  4,616  5,814 
Total fair value of HTM debt securities $ 1,028  $ 29,731  $ 76,330  $ 347,319  $ 454,408 
(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.