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Securities
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Securities Securities
Our securities available-for-sale and securities held-to-maturity portfolios consisted of the following:
March 31, 2024Amortized
Cost		Allowance for Credit LossesUnrealized
Gains		Unrealized
Losses		Fair
Value
 (in millions)
Securities available-for-sale:
U.S. Treasury$7,217 $— $30 $(175)$7,072 
U.S. Government sponsored enterprises:
Mortgage-backed securities5,786 — — (930)4,856 
Collateralized mortgage obligations1,414 — — (314)1,100 
Direct agency obligations1,582 — 1 (25)1,558 
U.S. Government agency issued or guaranteed:
Mortgage-backed securities5,649 — — (458)5,191 
Collateralized mortgage obligations2,807 — — (544)2,263 
Direct agency obligations208 — 5 (1)212 
Asset-backed securities collateralized by:
Home equity12 — — (1)11 
Other103 — — (12)91 
Foreign debt securities(1)
3,194 — 3 (1)3,196 
Total available-for-sale securities$27,972 $— $39 $(2,461)$25,550 
Securities held-to-maturity:
U.S. Treasury$1,927 $— $— $(49)$1,878 
U.S. Government sponsored enterprises:
Mortgage-backed securities1,052 — — (79)973 
Collateralized mortgage obligations285 — 2 (16)271 
U.S. Government agency issued or guaranteed:
Mortgage-backed securities10,344 — 18 (287)10,075 
Collateralized mortgage obligations1,682 — — (166)1,516 
Obligations of U.S. states and political subdivisions3 — — — 3 
Asset-backed securities collateralized by residential mortgages1 — — — 1 
Total held-to-maturity securities$15,294 $— $20 $(597)$14,717 
December 31, 2023Amortized
Cost		Allowance for Credit LossesUnrealized
Gains		Unrealized
Losses		Fair
Value
 (in millions)
Securities available-for-sale:
U.S. Treasury$7,489 $— $22 $(225)$7,286 
U.S. Government sponsored enterprises:
Mortgage-backed securities5,864 — — (845)5,019 
Collateralized mortgage obligations1,436 — — (300)1,136 
Direct agency obligations1,719 — — (38)1,681 
U.S. Government agency issued or guaranteed:
Mortgage-backed securities5,804 — 1 (378)5,427 
Collateralized mortgage obligations2,865 — — (506)2,359 
Direct agency obligations215 — 3 (3)215 
Asset-backed securities collateralized by:
Home equity13 — — (1)12 
Other103 — — (11)92 
Foreign debt securities(1)
2,472 — — (3)2,469 
Total available-for-sale securities$27,980 $— $26 $(2,310)$25,696 
Securities held-to-maturity:
U.S. Treasury$1,917 $— $1 $(18)$1,900 
U.S. Government sponsored enterprises:
Mortgage-backed securities1,069 — — (68)1,001 
Collateralized mortgage obligations297 — 3 (16)284 
U.S. Government agency issued or guaranteed:
Mortgage-backed securities10,043 — 43 (180)9,906 
Collateralized mortgage obligations1,745 — — (152)1,593 
Obligations of U.S. states and political subdivisions4 — — — 4 
Asset-backed securities collateralized by residential mortgages1 — — — 1 
Total held-to-maturity securities$15,076 $— $47 $(434)$14,689 
(1)Foreign debt securities represent public sector entity, bank or corporate debt.
Securities Available-for-Sale The following provides additional information about our portfolio of securities available-for-sale:
Allowance for credit losses On a quarterly basis, we perform an assessment to determine whether there have been any events or economic circumstances to indicate that a debt security available-for-sale in an unrealized loss position has suffered impairment due to credit factors. A debt security available-for-sale is considered impaired if its fair value is less than its amortized cost basis at the reporting date. If impaired, we assess whether the impairment is due to credit factors.
If we intend to sell the debt security or if it is more-likely-than-not that we will be required to sell the debt security before the recovery of its amortized cost basis, the impairment is recognized and the unrealized loss is recorded as a direct write-down of the security's amortized cost basis with an offsetting charge to earnings. If we do not intend to sell the debt security or believe we will not be required to sell the debt security before the recovery of its amortized cost basis, the impairment is assessed to determine if a credit loss component exists. We use a discounted cash flow method to determine the credit loss component. In the event a credit loss exists, an allowance for credit losses is recorded in earnings for the credit loss component of the impairment while the remaining portion of the impairment attributable to factors other than credit loss is recognized, net of tax, in other comprehensive income (loss). The amount of impairment recognized due to credit factors is limited to the excess of the amortized cost basis over the fair value of the security available-for-sale.
In determining whether a credit loss component exists, we consider a series of factors which include:
•The extent to which the fair value is less than the amortized cost basis;
•The credit protection features embedded within the instrument, which include but are not limited to credit subordination positions, payment structure, overcollateralization, protective triggers and financial guarantees provided by third parties;
•Changes in the near term prospects of the issuer or the underlying collateral of a security such as changes in default rates, loss severities given default and significant changes in prepayment assumptions;
•The level of excess cash flows generated from the underlying collateral supporting the principal and interest payments of the debt securities; and
•Any adverse change to the credit conditions of the issuer, the monoline insurer or the security such as credit downgrades by external rating agencies or changes to internal ratings.
At both March 31, 2024 and December 31, 2023, the allowance for credit losses on securities available-for-sale was nil.
Securities in an unrealized loss position for which no allowance for credit losses has been recognized The following table summarizes gross unrealized losses and related fair values for securities available-for-sale by major security type at March 31, 2024 and December 31, 2023 classified as to the length of time the losses have existed:
 One Year or LessGreater Than One Year
Number
of
Securities		Gross
Unrealized
Losses		Aggregate
Fair Value
of Investment		Number
of
Securities		Gross
Unrealized
Losses		Aggregate
Fair Value
of Investment
 (dollars are in millions)
At March 31, 2024
U.S. Treasury— $— $— 40 $(175)$4,636 
U.S. Government sponsored enterprises— — — 290 (1,269)7,336 
U.S. Government agency issued or guaranteed2 (2)118 142 (1,001)7,353 
Asset-backed securities— — — 6 (13)102 
Foreign debt securities7 — 1,221 3 (1)161 
Securities available-for-sale9 $(2)$1,339 481 $(2,459)$19,588 
At December 31, 2023
U.S. Treasury3 $(1)$1,008 41 $(224)$4,906 
U.S. Government sponsored enterprises2 — 80 293 (1,183)7,701 
U.S. Government agency issued or guaranteed— — — 151 (887)7,765 
Asset-backed securities— — — 6 (12)104 
Foreign debt securities17 (1)1,801 4 (2)183 
Securities available-for-sale22 $(2)$2,889 495 $(2,308)$20,659 
Gross unrealized losses increased as compared with December 31, 2023 due primarily to increasing yields on U.S. Government agency mortgage-backed and U.S. Government sponsored mortgage-backed securities.
Although the fair value of a particular security may be below its amortized cost, it does not necessarily result in a credit loss and hence an allowance for credit losses. The decline in fair value may be caused by, among other things, higher market rates or the illiquidity of the market. We have reviewed the securities in an unrealized loss position for which no allowance for credit losses has been recognized in accordance with our accounting policies, discussed further above. At March 31, 2024, we do not consider any of these securities to be impaired due to credit factors as we expect to recover their amortized cost basis and we neither intend nor expect to be required to sell these securities prior to recovery, even if that equates to holding them until their individual maturities. However, impairments due to credit factors may occur in future periods if the credit quality of the securities deteriorates.
Securities Held-to-Maturity The following provides additional information about our portfolio of securities held-to-maturity:
Allowance for credit losses We exclude from our calculation of lifetime expected credit losses ("ECL") securities for which we expect that non-payment of the amortized cost basis will be zero ("Zero Expected Credit Loss Exception"). Due to the composition of our portfolio of securities held-to-maturity, substantially all of our portfolio qualifies for the Zero Expected Credit Loss Exception and has been excluded from our lifetime ECL calculation. At both March 31, 2024 and December 31, 2023, the allowance for credit losses on securities held-to-maturity was nil.
At March 31, 2024 and December 31, 2023, none of our securities held-to-maturity were past due or in nonaccrual status.
Credit risk profile Securities are assigned a credit rating based on the estimated probability of default. The credit ratings are used as a credit quality indicator to monitor our securities held-to-maturity portfolio. We utilize Standard and Poor's ("S&P") as
the primary source of our credit ratings. If S&P ratings are not available, ratings by Moody's and Fitch are used in that order. Investment grade includes securities with credit ratings of at least BBB- or above. At March 31, 2024 and December 31, 2023, all of our securities held-to-maturity were investment grade.
Other securities gains, net  The following table summarizes realized gains and losses on investment securities transactions attributable to available-for-sale securities:
Three Months Ended March 31,20242023
 (in millions)
Gross realized gains$2 $3 
Gross realized losses— — 
Net realized gains$2 $3 
Contractual Maturities and Yields  The following table summarizes the amortized cost and fair values of securities available-for-sale and securities held-to-maturity at March 31, 2024 by contractual maturity. Expected maturities differ from contractual maturities because borrowers have the right to prepay obligations without prepayment penalties in certain cases. The table below also reflects the distribution of maturities of debt securities held at March 31, 2024, together with the approximate yield of the portfolio. The yields shown are calculated by dividing annualized interest income, including the accretion of discounts and the amortization of premiums, by the amortized cost of securities outstanding at March 31, 2024.
 Within
One Year		After One
But Within
Five Years		After Five
But Within
Ten Years		After Ten
Years
AmountYieldAmountYieldAmountYieldAmountYield
 (dollars are in millions)
Available-for-sale:
U.S. Treasury$237 1.00 %$3,406 1.98 %$833 2.46 %$2,741 2.82 %
U.S. Government sponsored enterprises
820 1.03 979 2.73 1,276 2.16 5,707 1.84 
U.S. Government agency issued or guaranteed
— — 68 3.21 2 5.52 8,594 2.99 
Asset-backed securities— — 55 4.36 48 3.88 12 5.78 
Foreign debt securities1,383 .39 1,811 4.54 — — — — 
Total amortized cost$2,440 .67 %$6,319 2.87 %$2,159 2.32 %$17,054 2.58 %
Total fair value$2,419 $6,236 $2,068 $14,827 
Held-to-maturity:
U.S. Treasury$— — %$1,185 3.74 %$742 3.71 %$— — %
U.S. Government sponsored enterprises
85 2.32 81 3.61 780 3.45 391 2.84 
U.S. Government agency issued or guaranteed
— — 1 5.39 14 5.74 12,011 4.50 
Obligations of U.S. states and political subdivisions
1 3.97 2 4.11 — — — — 
Asset-backed securities— — — — 1 4.19 — — 
Total amortized cost$86 2.34 %$1,269 3.74 %$1,537 3.60 %$12,402 4.45 %
Total fair value$85 $1,240 $1,458 $11,934 
Equity Securities Equity securities that are not classified as trading and are included in other assets consisted of the following:
March 31, 2024December 31, 2023
 (in millions)
Equity securities carried at fair value$267 $270 
Equity securities without readily determinable fair values13 13 
On a quarterly basis, we perform an assessment to determine whether any equity securities without readily determinable fair values are impaired. In the event an equity security is deemed impaired, the security is written down to fair value with impairment recorded in earnings. During the first quarter of 2024 and the first quarter of 2023, we determined that certain equity securities without readily determinable fair values were impaired and, as a result, we recorded an impairment loss of $4 million in both periods as a component of other income (loss) in the consolidated statement of income.
Also included in other assets were investments in Federal Home Loan Bank ("FHLB") stock and Federal Reserve Bank stock of $95 million and $438 million, respectively, at both March 31, 2024 and December 31, 2023. Our investment in Federal Reserve Bank stock represents approximately half of the total subscription price for our subscribed shares. The remaining half is unpaid and remains subject to call by the Federal Reserve Board ("FRB").