Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)

v3.21.2
INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)
6 Months Ended
Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost, Fair Value, and Gross Unrealized Gains and Losses by Investment Category
The following tables provide amortized cost, fair value, and gross unrealized gains and losses by investment category at June 30, 2021 and December 31, 2020:
Unrealized
(dollar amounts in millions) Amortized
Cost (1)
Gross
Gains
Gross
Losses
Fair Value
June 30, 2021
Available-for-sale securities:
U.S. Treasury $ $ —  $ —  $
Federal agencies:
Residential CMO 2,576  81  (8) 2,649 
Residential MBS 13,219  52  (74) 13,197 
Commercial MBS 1,377  15  (24) 1,368 
Other agencies 283  —  284 
Total U.S. Treasury, federal agency and other agency securities 17,460  149  (106) 17,503 
Municipal securities 3,589  89  (17) 3,661 
Private-label CMO 142  —  —  142 
Asset-backed securities 298  (1) 301 
Corporate debt 1,309  (13) 1,304 
Other securities/Sovereign debt —  — 
Total available-for-sale securities $ 22,802  $ 250  $ (137) $ 22,915 
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 2,228  $ 65  $ —  $ 2,293 
Residential MBS 6,259  61  (12) 6,308 
Commercial MBS 2,705  102  —  2,807 
Other agencies 220  10  —  230 
Total federal agency and other agency securities 11,412  238  (12) 11,638 
Municipal securities —  — 
Total held-to-maturity securities $ 11,415  $ 238  $ (12) $ 11,641 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock $ 201  $ —  $ —  $ 201 
Federal Reserve Bank stock 425  —  —  425 
Other securities, at fair value
Mutual funds 42  —  —  42 
Equity securities 24  —  —  24 
Total other securities $ 692  $ —  $ —  $ 692 
(1)Amortized cost amounts excludes accrued interest receivable, which is recorded within other assets on the Consolidated Balance Sheets. At June 30, 2021, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $48 million and $25 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 
Investments by Contractual Maturity
The following table provides the amortized cost and fair value of securities by contractual maturity at June 30, 2021 and December 31, 2020. 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, 2021 December 31, 2020
(dollar amounts in millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available-for-sale securities:
Under 1 year $ 389  $ 384  $ 308  $ 304 
After 1 year through 5 years 1,590  1,597  1,145  1,154 
After 5 years through 10 years 2,583  2,624  1,607  1,654 
After 10 years 18,240  18,310  13,115  13,373 
Total available-for-sale securities $ 22,802  $ 22,915  $ 16,175  $ 16,485 
Held-to-maturity securities:
After 1 year through 5 years $ 500  $ 507  $ 160  $ 169 
After 5 years through 10 years 98  103  131  138 
After 10 years 10,817  11,031  8,570  8,948 
Total held-to-maturity securities $ 11,415  $ 11,641  $ 8,861  $ 9,255 
Investments with Unrealized Losses by Investment Category
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, 2021 and December 31, 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
June 30, 2021
Available-for-sale securities:
Federal agencies:
Residential CMO 321  (8) —  —  321  (8)
Residential MBS 8,170  (74) —  —  8,170  (74)
Commercial MBS 671  (24) —  —  671  (24)
Other agencies 207  —  —  —  207  — 
Total federal agency and other agency securities 9,369  (106) —  —  9,369  (106)
Municipal securities 218  (5) 427  (12) 645  (17)
Private-label CMO 28 28
Asset-backed securities 75  (1) —  83  (1)
Corporate debt 643  (13) —  —  643  (13)
Total temporarily impaired available-for-sale securities $ 10,333  $ (125) $ 435  $ (12) $ 10,768  $ (137)
Held-to-maturity securities:
Federal agencies:
Residential MBS $ 1,408  $ (12) $ —  $ —  $ 1,408  $ (12)
Total federal agency and other agency securities 1,408  (12) —  —  1,408  (12)
Total temporarily impaired held-to-maturity securities $ 1,408  $ (12) $ —  $ —  $ 1,408  $ (12)
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)
Private-label CMO —  —  —  —  —  — 
Asset-backed securities 15  —  —  —  15  — 
Corporate debt 51  —  —  —  51  — 
Total temporarily impaired available-for-sale securities
$ 2,432  $ (22) $ 490  $ (12) $ 2,922  $ (34)