Long-Term Debt and Shareholders' Equity

3 Months Ended

Mar. 31, 2024

LONG-TERM DEBT AND SHAREHOLDERS’ EQUITY

Long-Term Debt

The long-term debt carrying values presented on the consolidated balance sheet represent the par value of the debt, adjusted for any unamortized premium or discount, unamortized debt issuance costs, and basis adjustments for interest rate swaps designated as fair value hedges.

The following schedule presents the components of our long-term debt:

LONG-TERM DEBT


(In millions)	March 31, 2024		December 31, 2023



Subordinated notes 1	$	540	$	538

Finance lease obligations	4		4
Total	$	544	$	542

1 The change in the subordinated notes balance is primarily due to a fair value hedge accounting adjustment. See also Note 7.

Shareholders' Equity

Our common stock is traded on the National Association of Securities Dealers Automated Quotations (“NASDAQ”) Global Select Market. At March 31, 2024, there were 147.7 million shares of $0.001 par value common stock

outstanding. Common stock and additional paid-in capital decreased $26 million, or 2%, to $1.7 billion at March 31, 2024, from December 31, 2023, primarily due to common stock repurchases. During the first quarter of 2024, we repurchased 0.9 million common shares outstanding for $35 million at an average price of $39.32 per share.

The AOCI balance was a loss of $2.6 billion at March 31, 2024, and primarily reflects the decline in the fair value of fixed-rate investment securities as a result of higher interest rates, and includes $2.0 billion ($1.5 billion after tax) of unrealized losses on the securities previously transferred from AFS to HTM. The following schedule presents the changes in AOCI by major component:


(In millions)	Net unrealized gains/(losses) on investment securities		Net unrealized gains/(losses) on derivatives and other		Pension and post-retirement		Total
Three Months Ended March 31, 2024
Balance at December 31, 2023	$	(2,526)	$	(165)	$	(1)	$	(2,692)
Other comprehensive income (loss) before reclassifications, net of tax	12		(1)		—		11
Amounts reclassified from AOCI, net of tax	46		26		—		72
Other comprehensive income	58		25		—		83
Balance at March 31, 2024	$	(2,468)	$	(140)	$	(1)	$	(2,609)
Income tax expense included in OCI	$	19	$	8	$	—	$	27
Three Months Ended March 31, 2023
Balance at December 31, 2022	$	(2,800)	$	(311)	$	(1)	$	(3,112)
Other comprehensive income before reclassifications, net of tax	77		29		—		106
Amounts reclassified from AOCI, net of tax	49		37		—		86
Other comprehensive income	126		66		—		192
Balance at March 31, 2023	$	(2,674)	$	(245)	$	(1)	$	(2,920)
Income tax expense included in OCI	$	41	$	22	$	—	$	63


	Amounts reclassified from AOCI
(In millions)	Three Months Ended March 31,
AOCI components	2024		2023		Affected line item on statement of income





Net unrealized gains (losses) on investment securities	$	(61)	$	(65)		Securities gains (losses), net
Less: Income tax expense (benefit)	(15)		(16)
Total	$	(46)	$	(49)



Net unrealized gains (losses) on derivative instruments	$	(34)	$	(49)		Interest and fees on loans; Interest on short- and long-term borrowings
Less: Income tax expense (benefit)	(8)		(12)
Total	$	(26)	$	(37)