Investment securities principally include available-for-sale (AFS) debt securities carried at fair value on the Consolidated Balance Sheets. Unrealized losses attributable to credit deterioration are recorded in the Consolidated Statements of Income in Other loans Provision for credit losses. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. We had accrued interest on our AFS debt securities totaling $9 million and $3 million as of March 31, 2026 and December 31, 2025, respectively, presented as Other assets on the Consolidated Balance Sheets.

Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in the Consolidated Statements of Income as Other, net expense.

Realized gains and losses are recognized upon disposition of the securities using the specific identification method and recorded in the Consolidated Statements of Income as Other, net expense.


	2026								2025
Description of Securities (Millions)	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Available-for-sale debt securities:
State and municipal obligations	$	53	$	1	$	(7)	$	47	$	54	$	1	$	(7)	$	48
U.S. Government agency obligations	3		—		—		3		3		—		—		3
U.S. Government treasury obligations	1,635		—		(7)		1,628		138		1		—		138
Mortgage-backed securities (a)	9		—		—		9		10		—		—		9
Foreign government bonds and obligations	813		—		—		813		717		—		—		717
Other (b)	81		—		—		81		81		—		—		81
Equity securities (c)	54		—		(9)		44		54		—		(8)		46
Total	$	2,648	$	2	$	(24)	$	2,625	$	1,056	$	2	$	(16)	$	1,043

The following table provides information about our AFS debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of March 31, 2026 and December 31, 2025:


	2026								2025
	Less than 12 months				12 months or more				Less than 12 months				12 months or more
Description of Securities (Millions)	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses
State and municipal obligations	$	—	$	—	$	25	$	(7)	$	—	$	—	$	26	$	(7)
U.S. Government treasury obligations	1,515		(7)		—		—		—		—		—		—


Total	$	1,515	$	(7)	$	25	$	(7)	$	—	$	—	$	26	$	(7)

The gross unrealized losses on our AFS debt securities are primarily attributable to an increase in the current benchmark interest rate. Overall, for the AFS debt securities in gross unrealized loss positions, (i) we do not intend to sell the securities, (ii) it is more likely than not that we will not be required to sell the securities before recovery of the unrealized losses, and (iii) we expect that the contractual principal and interest will be received on the securities. We concluded that there was no credit loss attributable to the securities in an unrealized loss position for the periods presented.

Table 4.3: Contractual Maturities of AFS Debt Securities


(Millions)	Cost		Estimated Fair Value
Due in 1 year or less	$	902	$	902
Due after 1 year through 5 years	1,643		1,637
Due after 5 years through 10 years	7		7
Due after 10 years	43		36
Total	$	2,595	$	2,581

The expected payments on state and municipal obligations, U.S. Government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.