Annual report pursuant to Section 13 and 15(d)

INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)

v3.20.4
INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)
 12 Months Ended
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Unrealized Gain (Loss) on Investments
The following tables provide amortized cost, fair value, and gross unrealized gains and losses by investment category at December 31, 2020 and 2019:
Unrealized
(dollar amounts in millions) Amortized
Cost (1)
Gross
Gains
Gross
Losses
 Fair Value
December 31, 2020
Available-for-sale securities:
U.S. Treasury $ 5  $ —  $ —  $ 5 
Federal agencies:
Residential CMO 3,550  121  (5) 3,666 
Residential MBS 7,843  97  (5) 7,935 
Commercial MBS 1,151  21  (9) 1,163 
Other agencies 60  2  —  62 
Total U.S. Treasury, federal agency and other agency securities 12,609  241  (19) 12,831 
Municipal securities 2,928  91  (15) 3,004 
Private-label CMO 9  —  —  9 
Asset-backed securities 185  7  —  192 
Corporate debt 440  5  —  445 
Other securities/Sovereign debt
 4  —  —  4 
Total available-for-sale securities $ 16,175  $ 344  $ (34) $ 16,485 
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 1,779  $ 88  $ —  $ 1,867 
Residential MBS 3,715  103  —  3,818 
Commercial MBS 3,118  191  —  3,309 
Other agencies 246  12  —  258 
Total federal agency and other agency securities 8,858  394  —  9,252 
Municipal securities 3  —  —  3 
Total held-to-maturity securities $ 8,861  $ 394  $ —  $ 9,255 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock $ 60  $ —  $ —  $ 60 
Federal Reserve Bank stock 299  —  —  299 
Other securities, at fair value
Mutual funds 50  —  —  50 
Equity securities 8  1  —  9 
Total other securities $ 417  $ 1  $ —  $ 418 
(1)Amortized cost amounts excludes accrued interest receivable, which is recorded within other assets on the Consolidated Balance Sheets. At December 31, 2020, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $32 million and $20 million, respectively.
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 Classified by Contractual Maturity Date
The following table provides the amortized cost and fair value of securities by contractual maturity at December 31, 2020 and 2019. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without incurring penalties.
2020 2019
(dollar amounts in millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available-for-sale securities:
Under 1 year $ 308  $ 304  $ 231  $ 229 
After 1 year through 5 years 1,145  1,154  1,196  1,189 
After 5 years through 10 years 1,607  1,654  1,594  1,606 
After 10 years 13,115  13,373  11,042  11,125 
Total available-for-sale securities $ 16,175  $ 16,485  $ 14,063  $ 14,149 
Held-to-maturity securities:
Under 1 year $ —  $ —  $ —  $ — 
After 1 year through 5 years 160  169  17  17 
After 5 years through 10 years 131  138  300  305 
After 10 years 8,570  8,948  8,753  8,864 
Total held-to-maturity securities $ 8,861  $ 9,255  $ 9,070  $ 9,186 
Schedule of Unrealized Loss on Investments
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 December 31, 2020 and 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
December 31, 2020
Available-for-sale securities:
Federal agencies:
Residential CMO $ 302  $ (5) $ —  $ —  $ 302  $ (5)
Residential MBS 1,633  (5) —  —  1,633  (5)
Commercial MBS 321  (9) —  —  321  (9)
Other agencies —  —  —  —  —  — 
Total federal agency and other agency securities 2,256  (19) —  —  2,256  (19)
Municipal securities 110  (3) 490  (12) 600  (15)
Asset-backed securities 15  —  —  —  15  — 
Corporate debt 51  —  —  —  51  — 
Total temporarily impaired available-for-sale securities $ 2,432  $ (22) $ 490  $ (12) $ 2,922  $ (34)
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 available-for-sale 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 held-to-maturity securities $ 678  $ (1) $ 112  $ (2) $ 790  $ (3)