Annual report pursuant to Section 13 and 15(d)

INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)

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INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)
12 Months Ended
Dec. 31, 2021
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, 2021 and 2020:
Unrealized
(dollar amounts in millions) Amortized
Cost (1)
Gross
Gains
Gross
Losses
Fair Value
December 31, 2021
Available-for-sale securities:
U.S. Treasury $ $ —  $ —  $
Federal agencies:
Residential CMO 4,649  40  (40) 4,649 
Residential MBS 15,533  135  (160) 15,508 
Commercial MBS 1,896  (38) 1,865 
Other agencies 248  (1) 248 
Total U.S. Treasury, federal agency and other agency securities 22,331  183  (239) 22,275 
Municipal securities 3,497  62  (33) 3,526 
Private-label CMO 106  (1) 106 
Asset-backed securities 385  (4) 382 
Corporate debt 2,183  22  (38) 2,167 
Other securities/Sovereign debt
—  — 
Total available-for-sale securities $ 28,506  $ 269  $ (315) $ 28,460 
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 2,602  $ 35  $ (20) $ 2,617 
Residential MBS 7,475  41  (59) 7,457 
Commercial MBS 2,175  45  (5) 2,215 
Other agencies 193  —  198 
Total federal agency and other agency securities 12,445  126  (84) 12,487 
Municipal securities —  — 
Total held-to-maturity securities $ 12,447  $ 126  $ (84) $ 12,489 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock $ 52  $ —  $ —  $ 52 
Federal Reserve Bank stock 512  —  —  512 
Equity securities 12  —  —  12 
Other securities, at fair value
Mutual funds 65  —  —  65 
Equity securities — 
Total other securities $ 647  $ $ —  $ 648 
(1)Amortized cost amounts excludes accrued interest receivable, which is recorded within other assets on the Consolidated Balance Sheets. At December 31, 2021, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $62 million and $26 million, respectively.
Unrealized
(dollar amounts in millions) Amortized
Cost (1)
Gross
Gains
Gross
Losses
Fair Value
December 31, 2020
Available-for-sale securities:
U.S. Treasury $ $ —  $ —  $
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  —  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 —  — 
Asset-backed securities 185  —  192 
Corporate debt 440  —  445 
Other securities/Sovereign debt
—  — 
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 —  — 
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 — 
Total other securities $ 417  $ $ —  $ 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.
Investments Classified by Contractual Maturity Date
The following table provides the amortized cost and fair value of securities by contractual maturity at December 31, 2021 and 2020. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without incurring penalties.
2021 2020
(dollar amounts in millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available-for-sale securities:
Under 1 year $ 377  $ 374  $ 308  $ 304 
After 1 year through 5 years 1,888  1,880  1,145  1,154 
After 5 years through 10 years 3,166  3,180  1,607  1,654 
After 10 years 23,075  23,026  13,115  13,373 
Total available-for-sale securities $ 28,506  $ 28,460  $ 16,175  $ 16,485 
Held-to-maturity securities:
Under 1 year $ $ $ —  $ — 
After 1 year through 5 years 162  164  160  169 
After 5 years through 10 years 44  45  131  138 
After 10 years 12,239  12,278  8,570  8,948 
Total held-to-maturity securities $ 12,447  $ 12,489  $ 8,861  $ 9,255 
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, 2021 and 2020:
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, 2021
Available-for-sale securities:
Federal agencies:
Residential CMO $ 2,925  $ (40) $ —  $ —  $ 2,925  $ (40)
Residential MBS 13,491  (160) —  —  13,491  (160)
Commercial MBS 1,251  (38) —  —  1,251  (38)
Other agencies 140  (1) —  —  140  (1)
Total federal agency and other agency securities 17,807  (239) —  —  17,807  (239)
Municipal securities 859  (22) 319  (11) 1,178  (33)
Private-label CMO 78  (1) —  —  78  (1)
Asset-backed securities 237  (4) —  —  237  (4)
Corporate debt 1,766  (38) —  —  1,766  (38)
Total temporarily impaired available-for-sale securities $ 20,747  $ (304) $ 319  $ (11) $ 21,066  $ (315)
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 1,453  $ (20) $ —  $ —  $ 1,453  $ (20)
Residential MBS 5,837  (59) —  —  5,837  (59)
Commercial MBS 318  (5) —  —  318  (5)
Total federal agency and other agency securities 7,608  (84) —  —  7,608  (84)
Total temporarily impaired securities $ 7,608  $ (84) $ —  $ —  $ 7,608  $ (84)
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)
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)