Subsequent events

9 Months Ended

Sep. 30, 2022

Subsequent event [Abstract]

Subsequent Events

Note 34 ─ Subsequent events

Transfer of Securities from Available-for Sale to Held-To-Maturity

In October 2022, the Corporation transferred U.S. Treasury securities with a fair value of $6.5 billion (par value of $7.4 billion) from its available-for-sale portfolio to its held-to-maturity portfolio. This transaction was accounted for during the fourth quarter of 2022, when management changed its intent to hold these securities to maturity to reduce the impact on accumulated other comprehensive income (“AOCI”) and tangible capital of further increases in interest rates. The Corporation has the intent and ability to hold these securities to maturity.

The securities were reclassified at fair value at the time of the transfer. At the date of the transfer, these securities had pre-tax unrealized losses of $873.1 million recorded in AOCI. This fair value discount will be accreted to interest income and the unrealized loss remaining in AOCI will be amortized, offsetting each other through the remaining life of the securities. There were no realized gains or losses recorded as a result of this transfer.