Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)

v3.20.2
INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)
 9 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost, Fair Value, and Gross Unrealized Gains and Losses by Investment Category
The following tables provide amortized cost, fair value, and gross unrealized gains and losses by investment category at September 30, 2020 and December 31, 2019:
Unrealized
(dollar amounts in millions)
Amortized
Cost
Gross
Gains
Gross
Losses
 Fair Value
September 30, 2020
Available-for-sale securities:
U.S. Treasury $ 5  $ —  $ —  $ 5 
Federal agencies:
Residential CMO 4,343  157  (2) 4,498 
Residential MBS 5,669  98  (6) 5,761 
Commercial MBS 787  22  (2) 807 
Other agencies 112  2  —  114 
Total U.S. Treasury, federal agency and other agency securities 10,916  279  (10) 11,185 
Municipal securities 3,071  89  (16) 3,144 
Private-label CMO 5  —  —  5 
Asset-backed securities 197  6  —  203 
Corporate debt 267  —  (1) 266 
Other securities/Sovereign debt 4  —  —  4 
Total available-for-sale securities $ 14,460  $ 374  $ (27) $ 14,807 
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 1,959  $ 98  $ —  $ 2,057 
Residential MBS 2,926  102  —  3,028 
Commercial MBS 3,413  199  —  3,612 
Other agencies 256  14  —  270 
Total federal agency and other agency securities 8,554  413  —  8,967 
Municipal securities 3  —  —  3 
Total held-to-maturity securities $ 8,557  $ 413  $ —  $ 8,970 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock $ 64  $ —  $ —  $ 64 
Federal Reserve Bank stock 299  —  —  299 
Other securities, at fair value
Mutual funds 49  —  —  49 
Equity securities 9  —  —  9 
Total other securities $ 421  $ —  $ —  $ 421 
Unrealized
(dollar amounts in millions) Amortized
Cost		 Gross
Gains		 Gross
Losses		 Fair Value
December 31, 2019
Available-for-sale securities:
U.S. Treasury $ 10  $ —  $ —  $ 10 
Federal agencies:
Residential CMO 5,055  48  (18) 5,085 
Residential MBS 4,180  45  (3) 4,222 
Commercial MBS 979  1  (4) 976 
Other agencies 165  1  (1) 165 
Total U.S. Treasury, federal agency and other agency securities 10,389  95  (26) 10,458 
Municipal securities 3,044  34  (23) 3,055 
Private-label CMO 2  —  —  2 
Asset-backed securities 575  6  (2) 579 
Corporate debt 49  2  —  51 
Other securities/Sovereign debt 4  —  —  4 
Total available-for-sale securities $ 14,063  $ 137  $ (51) $ 14,149 
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 2,351  $ 33  $ (3) $ 2,381 
Residential MBS 2,463  50  —  2,513 
Commercial MBS 3,959  34  —  3,993 
Other agencies 293  2  —  295 
Total federal agency and other agency securities 9,066  119  (3) 9,182 
Municipal securities 4  —  —  4 
Total held-to-maturity securities $ 9,070  $ 119  $ (3) $ 9,186 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock $ 90  $ —  $ —  $ 90 
Federal Reserve Bank stock 297  —  —  297 
Other securities, at fair value
Mutual funds 53  —  —  53 
Equity securities 1  —  —  1 
Total other securities $ 441  $ —  $ —  $ 441 
Investments by Contractual Maturity
The following table provides the amortized cost and fair value of securities by contractual maturity at September 30, 2020 and December 31, 2019. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without incurring penalties.
September 30, 2020 December 31, 2019
(dollar amounts in millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available-for-sale securities:
Under 1 year $ 349  $ 345  $ 231  $ 229 
After 1 year through 5 years 1,198  1,203  1,196  1,189 
After 5 years through 10 years 1,522  1,562  1,594  1,606 
After 10 years 11,391  11,697  11,042  11,125 
Total available-for-sale securities $ 14,460  $ 14,807  $ 14,063  $ 14,149 
Held-to-maturity securities:
Under 1 year $ —  $ —  $ —  $ — 
After 1 year through 5 years 137  145  17  17 
After 5 years through 10 years 173  181  300  305 
After 10 years 8,247  8,644  8,753  8,864 
Total held-to-maturity securities $ 8,557  $ 8,970  $ 9,070  $ 9,186 
Investments with Unrealized Losses by Investment Category
The following tables provide detail on investment securities with unrealized losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position at September 30, 2020 and December 31, 2019:
Less than 12 Months Over 12 Months Total
(dollar amounts in millions) Fair
Value		 Gross Unrealized
Losses		 Fair
Value		 Gross Unrealized
Losses		 Fair
Value		 Gross Unrealized
Losses
September 30, 2020
Available-for-sale securities:
Federal agencies:
Residential CMO $ 209  $ (2) $ —  $ —  $ 209  $ (2)
Residential MBS 1,849  (6) —  —  1,849  (6)
Commercial MBS 27  (2) —  —  27  (2)
Other agencies —  —  —  —  —  — 
Total federal agency and other agency securities 2,085  (10) —  —  2,085  (10)
Municipal securities 166  (3) 684  (13) 850  (16)
Asset-backed securities 16  —  —  —  16  — 
Corporate debt 230  (1) —  —  230  (1)
Total temporarily impaired securities $ 2,497  $ (14) $ 684  $ (13) $ 3,181  $ (27)
Held-to-maturity securities:
Federal agencies:
Residential CMO $ —  $ —  $ —  $ —  $ —  $ — 
Residential MBS —  —  —  —  —  — 
Commercial MBS —  —  —  —  —  — 
Other agencies —  —  —  —  —  — 
Total federal agency and other agency securities —  —  —  —  —  — 
Municipal securities —  —  —  —  —  — 
Total temporarily impaired securities $ —  $ —  $ —  $ —  $ —  $ — 
Less than 12 Months Over 12 Months Total
(dollar amounts in millions) Fair
Value		 Gross Unrealized
Losses		 Fair
Value		 Gross Unrealized
Losses		 Fair
Value		 Gross Unrealized
Losses
December 31, 2019
Available-for-sale securities:
Federal agencies:
Residential CMO $ 1,206  $ (10) $ 519  $ (8) $ 1,725  $ (18)
Residential MBS 1,169  (3) 9  —  1,178  (3)
Commercial MBS 472  (2) 272  (2) 744  (4)
Other agencies 86  (1) —  —  86  (1)
Total federal agency and other agency securities 2,933  (16) 800  (10) 3,733  (26)
Municipal securities 273  (4) 1,204  (19) 1,477  (23)
Asset-backed securities 116  (1) 37  (1) 153  (2)
Corporate debt 1  —  —  —  1  — 
Total temporarily impaired securities $ 3,323  $ (21) $ 2,041  $ (30) $ 5,364  $ (51)
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 218  $ (1) $ 112  $ (2) $ 330  $ (3)
Residential MBS 317  —  —  —  317  — 
Commercial MBS 81  —  —  —  81  — 
Other agencies 58  —  —  —  58  — 
Total federal agency and other agency securities 674  (1) 112  (2) 786  (3)
Municipal securities 4  —  —  —  4  — 
Total temporarily impaired securities $ 678  $ (1) $ 112  $ (2) $ 790  $ (3)