Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)

v3.19.3
INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)
9 Months Ended
Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract]  
Gain (Loss) on Securities [Table Text Block]
The following table is a summary of realized securities gains and losses for the three-month and nine-month periods ended September 30, 2019 and 2018, respectively.
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(dollar amounts in millions)
2019
 
2018
 
2019
 
2018
Gross gains on sales of securities
$

 
$

 
$
9

 
$
6

Gross losses on sales of securities

 
(2
)
 
(11
)
 
(8
)
Net (loss) gain on sales of securities
$

 
$
(2
)
 
$
(2
)
 
$
(2
)

Unrealized Gain (Loss) on Investments [Table Text Block]
The following tables provide amortized cost, fair value, and gross unrealized gains and losses by investment category at September 30, 2019 and December 31, 2018:
 
 
 
Unrealized
 
 
(dollar amounts in millions)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
September 30, 2019
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
U.S. Treasury
$
10

 
$

 
$

 
$
10

Federal agencies:
 
 
 
 
 
 
 
Residential CMO
6,668

 
71

 
(15
)
 
6,724

Residential MBS
2,355

 
39

 
(1
)
 
2,393

Commercial MBS
1,237

 
3

 
(1
)
 
1,239

Other agencies
117

 

 

 
117

Total U.S. Treasury, federal agency and other agency securities
10,387

 
113

 
(17
)
 
10,483

Municipal securities
3,147

 
35

 
(30
)
 
3,152

Asset-backed securities
588

 
8

 
(1
)
 
595

Corporate debt
50

 
2

 

 
52

Other securities/Sovereign debt
4

 

 

 
4

Total available-for-sale securities
$
14,176

 
$
158

 
$
(48
)
 
$
14,286

 
 
 
 
 
 
 
 
Held-to-maturity securities:
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
Residential CMO
$
1,970

 
$
41

 
$
(3
)
 
$
2,008

Residential MBS
2,065

 
45

 

 
2,110

Commercial MBS
4,075

 
66

 

 
4,141

Other agencies
316

 
5

 

 
321

Total federal agency and other agency securities
8,426

 
157

 
(3
)
 
8,580

Municipal securities
4

 

 

 
4

Total held-to-maturity securities
$
8,430

 
$
157

 
$
(3
)
 
$
8,584

 
 
 
 
 
 
 
 
Other securities, at cost:
 
 
 
 
 
 
 
Non-marketable equity securities:
 
 
 
 
 
 
 
Federal Home Loan Bank stock
$
104

 
$

 
$

 
$
104

Federal Reserve Bank stock
297

 

 

 
297

Other securities, at fair value
 
 
 
 
 
 
 
Mutual funds
53

 

 

 
53

Marketable equity securities
1

 

 

 
1

Total other securities
$
455

 
$

 
$

 
$
455

 
 
 
Unrealized
 
 
(dollar amounts in millions)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
December 31, 2018
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
U.S. Treasury
$
5

 
$

 
$

 
$
5

Federal agencies:
 
 
 
 
 
 
 
Residential CMO
7,185

 
15

 
(201
)
 
6,999

Residential MBS
1,261

 
9

 
(15
)
 
1,255

Commercial MBS
1,641

 

 
(58
)
 
1,583

Other agencies
128

 

 
(2
)
 
126

Total U.S. Treasury, federal agency and other agency securities
10,220

 
24

 
(276
)
 
9,968

Municipal securities
3,512

 
6

 
(78
)
 
3,440

Asset-backed securities
318

 
1

 
(4
)
 
315

Corporate debt
54

 

 
(1
)
 
53

Other securities/Sovereign debt
4

 

 

 
4

Total available-for-sale securities
$
14,108

 
$
31

 
$
(359
)
 
$
13,780

 
 
 
 
 
 
 
 
Held-to-maturity securities:
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
Residential CMO
$
2,124

 
$

 
$
(47
)
 
$
2,077

Residential MBS
1,851

 
2

 
(42
)
 
1,811

Commercial MBS
4,235

 

 
(186
)
 
4,049

Other agencies
350

 

 
(6
)
 
344

Total federal agency and other agency securities
8,560

 
2

 
(281
)
 
8,281

Municipal securities
5

 

 

 
5

Total held-to-maturity securities
$
8,565

 
$
2

 
$
(281
)
 
$
8,286

 
 
 
 
 
 
 
 
Other securities, at cost:
 
 
 
 
 
 
 
Non-marketable equity securities:
 
 
 
 
 
 
 
Federal Home Loan Bank stock
$
248

 
$

 
$

 
$
248

Federal Reserve Bank stock
295

 

 

 
295

Other securities, at fair value
 
 
 
 
 
 
 
Mutual funds
20

 

 

 
20

Marketable equity securities
1

 
1

 

 
2

Total other securities
$
564

 
$
1

 
$

 
$
565


Investments Classified by Contractual Maturity Date [Table Text Block]
The following table provides the amortized cost and fair value of securities by contractual maturity at September 30, 2019 and December 31, 2018. 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, 2019
 
December 31, 2018
(dollar amounts in millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Available-for-sale securities:
 
 
 
 
 
 
 
Under 1 year
$
294

 
$
291

 
$
186

 
$
185

After 1 year through 5 years
1,084

 
1,074

 
1,057

 
1,039

After 5 years through 10 years
1,708

 
1,717

 
1,838

 
1,802

After 10 years
11,090

 
11,204

 
11,027

 
10,754

Total available-for-sale securities
$
14,176

 
$
14,286

 
$
14,108

 
$
13,780

 
 
 
 
 
 
 
 
Held-to-maturity securities:
 
 
 
 
 
 
 
Under 1 year
$

 
$

 
$

 
$

After 1 year through 5 years
18

 
19

 
11

 
11

After 5 years through 10 years
329

 
335

 
362

 
356

After 10 years
8,083

 
8,230

 
8,192

 
7,919

Total held-to-maturity securities
$
8,430

 
$
8,584

 
$
8,565

 
$
8,286


Schedule of Unrealized Loss on Investments [Table Text Block]
 
September 30, 2019
 
December 31, 2018
(dollar amounts in millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Available-for-sale securities:
 
 
 
 
 
 
 
Under 1 year
$
294

 
$
291

 
$
186

 
$
185

After 1 year through 5 years
1,084

 
1,074

 
1,057

 
1,039

After 5 years through 10 years
1,708

 
1,717

 
1,838

 
1,802

After 10 years
11,090

 
11,204

 
11,027

 
10,754

Total available-for-sale securities
$
14,176

 
$
14,286

 
$
14,108

 
$
13,780

 
 
 
 
 
 
 
 
Held-to-maturity securities:
 
 
 
 
 
 
 
Under 1 year
$

 
$

 
$

 
$

After 1 year through 5 years
18

 
19

 
11

 
11

After 5 years through 10 years
329

 
335

 
362

 
356

After 10 years
8,083

 
8,230

 
8,192

 
7,919

Total held-to-maturity securities
$
8,430

 
$
8,584

 
$
8,565

 
$
8,286


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, 2019 and December 31, 2018:
 
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, 2019
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO
$
1,287

 
$
(3
)
 
$
1,207

 
$
(12
)
 
$
2,494

 
$
(15
)
Residential MBS
353

 
(1
)
 
9

 

 
362

 
(1
)
Commercial MBS
80

 

 
401

 
(1
)
 
481

 
(1
)
Other agencies
1

 

 

 

 
1

 

Total federal agency and other agency securities
1,721

 
(4
)
 
1,617

 
(13
)
 
3,338

 
(17
)
Municipal securities
403

 
(7
)
 
1,238

 
(23
)
 
1,641

 
(30
)
Asset-backed securities
68

 

 
93

 
(1
)
 
161

 
(1
)
Corporate debt

 

 

 

 

 

Total temporarily impaired securities
$
2,192

 
$
(11
)
 
$
2,948

 
$
(37
)
 
$
5,140

 
$
(48
)
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO
$
160

 
$
(1
)
 
$
119

 
$
(2
)
 
$
279

 
$
(3
)
Residential MBS

 

 

 

 

 

Commercial MBS

 

 
27

 

 
27

 

Other agencies
5

 

 

 

 
5

 

Total federal agency and other agency securities
165

 
(1
)
 
146

 
(2
)
 
311

 
(3
)
Municipal securities
4

 

 

 

 
4

 

Total temporarily impaired securities
$
169

 
$
(1
)
 
$
146

 
$
(2
)
 
$
315

 
$
(3
)
 
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, 2018
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO
$
425

 
$
(3
)
 
$
5,943

 
$
(198
)
 
$
6,368

 
$
(201
)
Residential MBS
259

 
(6
)
 
319

 
(9
)
 
578

 
(15
)
Commercial MBS
10

 

 
1,573

 
(58
)
 
1,583

 
(58
)
Other agencies

 

 
124

 
(2
)
 
124

 
(2
)
Total federal agency and other agency securities
694

 
(9
)
 
7,959

 
(267
)
 
8,653

 
(276
)
Municipal securities
1,425

 
(24
)
 
1,602

 
(54
)
 
3,027

 
(78
)
Asset-backed securities
95

 
(2
)
 
117

 
(2
)
 
212

 
(4
)
Corporate debt
40

 

 
1

 
(1
)
 
41

 
(1
)
Total temporarily impaired securities
$
2,254

 
$
(35
)
 
$
9,679

 
$
(324
)
 
$
11,933

 
$
(359
)
 
 
 
 
 
 
 
 
 
 
 
 
Held-to-maturity securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO
$
12

 
$

 
$
2,004

 
$
(47
)
 
$
2,016

 
$
(47
)
Residential MBS
16

 

 
1,457

 
(42
)
 
1,473

 
(42
)
Commercial MBS

 

 
4,041

 
(186
)
 
4,041

 
(186
)
Other agencies
113

 
(2
)
 
205

 
(4
)
 
318

 
(6
)
Total federal agency and other agency securities
141

 
(2
)
 
7,707

 
(279
)
 
7,848

 
(281
)
Municipal securities

 

 
4

 

 
4

 

Total temporarily impaired securities
$
141

 
$
(2
)
 
$
7,711

 
$
(279
)
 
$
7,852

 
$
(281
)