Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)

v3.20.2
INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)
 6 Months Ended
Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
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 June 30, 2020 and December 31, 2019:
 
 
 
Unrealized
 
 
(dollar amounts in millions)
Amortized
Cost
 
Gross
Gains
 
Gross
Losses
 
Fair Value
June 30, 2020
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
U.S. Treasury
$
8

 
$
—

 
$
—

 
$
8

Federal agencies:
 
 
 
 
 
 
 
Residential CMO
4,933

 
185

 
—

 
5,118

Residential MBS
3,718

 
120

 
—

 
3,838

Commercial MBS
764

 
24

 
—

 
788

Other agencies
144

 
3

 
—

 
147

Total U.S. Treasury, federal agency and other agency securities
9,567

 
332

 
—

 
9,899

Municipal securities
3,145

 
47

 
(35
)
 
3,157

Private-label CMO
5

 
—

 
—

 
5

Asset-backed securities
208

 
3

 
—

 
211

Corporate debt
22

 
—

 
(1
)
 
21

Other securities/Sovereign debt
4

 
—

 
—

 
4

Total available-for-sale securities
$
12,951

 
$
382

 
$
(36
)
 
$
13,297

 
 
 
 
 
 
 
 
Held-to-maturity securities:
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
Residential CMO
$
2,151

 
$
106

 
$
—

 
$
2,257

Residential MBS
3,361

 
120

 
—

 
3,481

Commercial MBS
3,631

 
202

 
—

 
3,833

Other agencies
269

 
12

 
—

 
281

Total federal agency and other agency securities
9,412

 
440

 
—

 
9,852

Municipal securities
4

 
—

 
—

 
4

Total held-to-maturity securities
$
9,416

 
$
440

 
$
—

 
$
9,856

 
 
 
 
 
 
 
 
Other securities, at cost:
 
 
 
 
 
 
 
Non-marketable equity securities:
 
 
 
 
 
 
 
Federal Home Loan Bank stock
$
84

 
$
—

 
$
—

 
$
84

Federal Reserve Bank stock
298

 
—

 
—

 
298

Other securities, at fair value
 
 
 
 
 
 
 
Mutual funds
52

 
—

 
—

 
52

Marketable equity securities
3

 
1

 
—

 
4

Total other securities
$
437

 
$
1

 
$
—

 
$
438


 
 
 
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

Marketable equity securities
1

 
—

 
—

 
1

Total other securities
$
441

 
$
—

 
$
—

 
$
441


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 June 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.
 
June 30, 2020
 
December 31, 2019
(dollar amounts in millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Available-for-sale securities:
 
 
 
 
 
 
 
Under 1 year
$
344

 
$
337

 
$
231

 
$
229

After 1 year through 5 years
1,166

 
1,159

 
1,196

 
1,189

After 5 years through 10 years
1,410

 
1,421

 
1,594

 
1,606

After 10 years
10,031

 
10,380

 
11,042

 
11,125

Total available-for-sale securities
$
12,951

 
$
13,297

 
$
14,063

 
$
14,149

 
 
 
 
 
 
 
 
Held-to-maturity securities:
 
 
 
 
 
 
 
Under 1 year
$
—

 
$
—

 
$
—

 
$
—

After 1 year through 5 years
141

 
149

 
17

 
17

After 5 years through 10 years
181

 
190

 
300

 
305

After 10 years
9,094

 
9,517

 
8,753

 
8,864

Total held-to-maturity securities
$
9,416

 
$
9,856

 
$
9,070

 
$
9,186


Schedule of Unrealized Loss on Investments [Table Text Block]
 
June 30, 2020
 
December 31, 2019
(dollar amounts in millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Available-for-sale securities:
 
 
 
 
 
 
 
Under 1 year
$
344

 
$
337

 
$
231

 
$
229

After 1 year through 5 years
1,166

 
1,159

 
1,196

 
1,189

After 5 years through 10 years
1,410

 
1,421

 
1,594

 
1,606

After 10 years
10,031

 
10,380

 
11,042

 
11,125

Total available-for-sale securities
$
12,951

 
$
13,297

 
$
14,063

 
$
14,149

 
 
 
 
 
 
 
 
Held-to-maturity securities:
 
 
 
 
 
 
 
Under 1 year
$
—

 
$
—

 
$
—

 
$
—

After 1 year through 5 years
141

 
149

 
17

 
17

After 5 years through 10 years
181

 
190

 
300

 
305

After 10 years
9,094

 
9,517

 
8,753

 
8,864

Total held-to-maturity securities
$
9,416

 
$
9,856

 
$
9,070

 
$
9,186


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 June 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
June 30, 2020
 
 
 
 
 
 
 
 
 
 
 
Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
Federal agencies:
 
 
 
 
 
 
 
 
 
 
 
Residential CMO
$
74

 
$
—

 
$
—

 
$
—

 
$
74

 
$
—

Residential MBS


 
—

 
—

 
—

 
—

 
—

Commercial MBS
—

 
—

 
—

 
—

 
—

 
—

Other agencies
—

 
—

 
—

 
—

 
—

 
—

Total federal agency and other agency securities
74

 
—

 
—

 
—

 
74

 
—

Municipal securities
428

 
(8
)
 
1,023

 
(27
)
 
1,451

 
(35
)
Asset-backed securities
26

 
—

 
56

 
—

 
82

 
—

Corporate debt
13

 
(1
)
 
—

 
—

 
13

 
(1
)
Total temporarily impaired securities
$
541

 
$
(9
)
 
$
1,079

 
$
(27
)
 
$
1,620

 
$
(36
)
 
 
 
 
 
 
 
 
 
 
 
 
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
)