AVAILABLE-FOR-SALE SECURITIES (Tables)
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9 Months Ended |
Sep. 30, 2018 |
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| Investments, Debt and Equity Securities [Abstract] |
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| Contractual maturities of investment securities |
ontractual maturities of available-for-sale securities at September 30, 2018 and December 31, 2017 were:
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September 30, 2018 |
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December 31, 2017 |
(dollar amounts in millions) |
Amortized
Cost
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Fair Value |
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Amortized
Cost
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Fair Value |
U.S. Treasury, Federal agency, and other agency securities: |
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U.S. Treasury: |
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1 year or less |
$ |
5 |
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$ |
5 |
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$ |
5 |
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$ |
5 |
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Total U.S. Treasury |
5 |
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|
5 |
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|
5 |
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|
5 |
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Federal agencies: |
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|
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Residential CMO: |
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After 1 year through 5 years |
— |
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— |
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1 |
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|
1 |
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After 5 years through 10 years |
41 |
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|
40 |
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|
90 |
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|
89 |
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After 10 years |
7,266 |
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6,900 |
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6,570 |
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6,394 |
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Total Residential CMO |
7,307 |
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6,940 |
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6,661 |
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6,484 |
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Residential MBS: |
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After 1 year through 5 years |
3 |
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3 |
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6 |
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6 |
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After 5 years through 10 years |
30 |
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29 |
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7 |
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8 |
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After 10 years |
613 |
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588 |
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1,358 |
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|
1,353 |
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Total Residential MBS |
646 |
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|
620 |
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1,371 |
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1,367 |
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Commercial MBS: |
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After 1 year through 5 years |
68 |
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|
65 |
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23 |
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22 |
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After 5 years through 10 years |
8 |
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8 |
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151 |
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|
148 |
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After 10 years |
1,707 |
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1,630 |
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2,365 |
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2,317 |
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Total Commercial MBS |
1,783 |
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1,703 |
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2,539 |
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2,487 |
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Other agencies: |
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1 year or less |
1 |
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1 |
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2 |
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2 |
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After 1 year through 5 years |
10 |
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10 |
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9 |
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9 |
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After 5 years through 10 years |
151 |
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146 |
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58 |
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|
59 |
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Total other agencies |
162 |
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157 |
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69 |
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70 |
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Total U.S. Treasury, Federal agency, and other agency securities |
9,903 |
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9,425 |
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10,645 |
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10,413 |
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Municipal securities: |
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1 year or less |
211 |
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208 |
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103 |
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103 |
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After 1 year through 5 years |
1,156 |
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1,143 |
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1,140 |
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1,134 |
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After 5 years through 10 years |
1,714 |
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1,686 |
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1,709 |
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1,704 |
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After 10 years |
833 |
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|
811 |
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940 |
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937 |
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Total municipal securities |
3,914 |
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3,848 |
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3,892 |
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3,878 |
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Asset-backed securities: |
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After 1 year through 5 years |
40 |
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39 |
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80 |
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|
80 |
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After 5 years through 10 years |
41 |
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41 |
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53 |
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54 |
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After 10 years |
291 |
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283 |
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|
349 |
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|
333 |
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Total asset-backed securities |
372 |
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363 |
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482 |
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|
467 |
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Corporate debt: |
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1 year or less |
1 |
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1 |
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— |
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— |
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After 1 year through 5 years |
74 |
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74 |
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73 |
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74 |
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After 5 years through 10 years |
11 |
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12 |
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20 |
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21 |
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After 10 years |
— |
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— |
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13 |
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14 |
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Total corporate debt |
86 |
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87 |
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106 |
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109 |
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Other securities/Sovereign debt: |
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1 year or less |
— |
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— |
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1 |
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1 |
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After 1 year through 5 years |
4 |
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4 |
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1 |
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1 |
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Total other securities/Sovereign debt |
4 |
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4 |
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2 |
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2 |
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Total available-for-sale securities |
$ |
14,279 |
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$ |
13,727 |
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$ |
15,127 |
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$ |
14,869 |
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| Amortized cost, fair value, and gross unrealized gains and losses recognized in accumulated other comprehensive income |
The following tables provide amortized cost, fair value, and gross unrealized gains and losses recognized in OCI by investment category at September 30, 2018 and December 31, 2017:
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Unrealized |
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(dollar amounts in millions) |
Amortized
Cost
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Gross
Gains
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Gross
Losses
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Fair Value |
September 30, 2018 |
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U.S. Treasury |
$ |
5 |
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$ |
— |
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$ |
— |
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$ |
5 |
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Federal agencies: |
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Residential CMO |
7,307 |
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— |
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(367 |
) |
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6,940 |
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Residential MBS |
646 |
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— |
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(26 |
) |
|
620 |
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Commercial MBS |
1,783 |
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— |
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(80 |
) |
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1,703 |
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Other agencies |
162 |
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— |
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(5 |
) |
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157 |
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Total U.S. Treasury, Federal agency and other agency securities |
9,903 |
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— |
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(478 |
) |
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9,425 |
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Municipal securities |
3,914 |
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11 |
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(77 |
) |
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3,848 |
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Asset-backed securities |
372 |
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— |
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(9 |
) |
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363 |
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Corporate debt |
86 |
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1 |
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— |
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87 |
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Other securities/Sovereign debt |
4 |
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— |
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— |
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4 |
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Total available-for-sale securities |
$ |
14,279 |
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$ |
12 |
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$ |
(564 |
) |
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$ |
13,727 |
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Unrealized |
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(dollar amounts in millions) |
Amortized
Cost
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Gross
Gains
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Gross
Losses
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Fair Value |
December 31, 2017 |
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U.S. Treasury |
$ |
5 |
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$ |
— |
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$ |
— |
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$ |
5 |
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Federal agencies: |
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Residential CMO |
6,661 |
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1 |
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(178 |
) |
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6,484 |
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Residential MBS |
1,371 |
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1 |
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(5 |
) |
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1,367 |
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Commercial MBS |
2,539 |
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— |
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(52 |
) |
|
2,487 |
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Other agencies |
69 |
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|
1 |
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— |
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|
70 |
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Total U.S. Treasury, Federal agency and other agency securities |
10,645 |
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3 |
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(235 |
) |
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10,413 |
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Municipal securities |
3,892 |
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21 |
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(35 |
) |
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3,878 |
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Asset-backed securities |
482 |
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1 |
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(16 |
) |
|
467 |
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Corporate debt |
106 |
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3 |
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— |
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|
109 |
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Other securities/Sovereign debt |
2 |
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— |
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— |
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2 |
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Total available-for-sale securities |
$ |
15,127 |
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$ |
28 |
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$ |
(286 |
) |
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$ |
14,869 |
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| Available for sale securities in an unrealized loss position table text block |
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 as of September 30, 2018 and December 31, 2017.
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Less than 12 Months |
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Over 12 Months |
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Total |
(dollar amounts in millions) |
Fair Value |
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Gross Unrealized
Losses
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Fair Value |
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Gross Unrealized
Losses
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Fair Value |
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Gross Unrealized
Losses
|
September 30, 2018 |
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Federal agencies: |
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Residential CMO |
$ |
2,286 |
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$ |
(77 |
) |
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$ |
4,632 |
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$ |
(290 |
) |
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$ |
6,918 |
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$ |
(367 |
) |
Residential MBS |
542 |
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(23 |
) |
|
70 |
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|
(3 |
) |
|
612 |
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(26 |
) |
Commercial MBS |
109 |
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(4 |
) |
|
1,594 |
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(76 |
) |
|
1,703 |
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|
(80 |
) |
Other agencies |
80 |
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(2 |
) |
|
72 |
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(3 |
) |
|
152 |
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(5 |
) |
Total Federal Agency and other agency securities |
3,017 |
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(106 |
) |
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6,368 |
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(372 |
) |
|
9,385 |
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|
(478 |
) |
Municipal securities |
1,846 |
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(39 |
) |
|
1,278 |
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(38 |
) |
|
3,124 |
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|
(77 |
) |
Asset-backed securities |
157 |
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|
(3 |
) |
|
146 |
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(6 |
) |
|
303 |
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|
(9 |
) |
Corporate debt |
65 |
|
|
— |
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|
— |
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|
— |
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|
65 |
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|
— |
|
Other securities/Sovereign debt |
— |
|
|
— |
|
|
— |
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|
— |
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|
— |
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|
— |
|
Total temporarily impaired securities |
$ |
5,085 |
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|
$ |
(148 |
) |
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$ |
7,792 |
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|
$ |
(416 |
) |
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$ |
12,877 |
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$ |
(564 |
) |
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Less than 12 Months |
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Over 12 Months |
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Total |
(dollar amounts in millions) |
Fair Value |
|
Gross Unrealized
Losses
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Fair Value |
|
Gross Unrealized
Losses
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|
Fair Value |
|
Gross Unrealized
Losses
|
December 31, 2017 |
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Federal agencies: |
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Residential CMO |
$ |
1,660 |
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|
$ |
(19 |
) |
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$ |
4,520 |
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$ |
(159 |
) |
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$ |
6,180 |
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$ |
(178 |
) |
Residential MBS |
1,078 |
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(5 |
) |
|
11 |
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|
— |
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|
1,089 |
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|
(5 |
) |
Commercial MBS |
960 |
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|
(15 |
) |
|
1,527 |
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(37 |
) |
|
2,487 |
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|
(52 |
) |
Other agencies |
39 |
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|
— |
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|
— |
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|
— |
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|
39 |
|
|
— |
|
Total Federal Agency and other agency securities |
3,737 |
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|
(39 |
) |
|
6,058 |
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|
(196 |
) |
|
9,795 |
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|
(235 |
) |
Municipal securities |
1,681 |
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|
(21 |
) |
|
497 |
|
|
(14 |
) |
|
2,178 |
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|
(35 |
) |
Asset-backed securities |
127 |
|
|
(1 |
) |
|
173 |
|
|
(15 |
) |
|
300 |
|
|
(16 |
) |
Total temporarily impaired securities |
$ |
5,545 |
|
|
$ |
(61 |
) |
|
$ |
6,728 |
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|
$ |
(225 |
) |
|
$ |
12,273 |
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|
$ |
(286 |
) |
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| Realized securities gains and losses |
The following table is a summary of realized securities gains and losses for the three-month and nine-month periods ended September 30, 2018 and 2017, respectively.
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Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
(dollar amounts in millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Gross gains on sales of securities |
$ |
— |
|
|
$ |
4 |
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|
$ |
6 |
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|
$ |
8 |
|
Gross losses on sales of securities |
(2 |
) |
|
(4 |
) |
|
(8 |
) |
|
(4 |
) |
Net (loss) gain on sales of securities |
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
(2 |
) |
|
$ |
4 |
|
OTTI recognized in earnings |
— |
|
|
— |
|
|
— |
|
|
(4 |
) |
Net securities losses |
$ |
(2 |
) |
|
$ |
— |
|
|
$ |
(2 |
) |
|
$ |
— |
|
|