Quarterly report pursuant to Section 13 or 15(d)

INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)

v3.21.2
INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)
9 Months Ended
Sep. 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 September 30, 2021 and December 31, 2020:
Unrealized
(dollar amounts in millions) Amortized
Cost (1)
Gross
Gains
Gross
Losses
Fair Value
September 30, 2021
Available-for-sale securities:
U.S. Treasury $ $ —  $ —  $
Federal agencies:
Residential CMO 3,683  63  (12) 3,734 
Residential MBS 14,413  47  (123) 14,337 
Commercial MBS 1,522  11  (35) 1,498 
Other agencies 263  —  264 
Total U.S. Treasury, federal agency and other agency securities 19,886  122  (170) 19,838 
Municipal securities 3,570  82  (18) 3,634 
Private-label CMO 120  —  —  120 
Asset-backed securities 284  (2) 285 
Corporate debt 1,789  (21) 1,773 
Other securities/Sovereign debt —  — 
Total available-for-sale securities $ 25,653  $ 212  $ (211) $ 25,654 
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 2,701  $ 56  $ (4) $ 2,753 
Residential MBS 7,079  62  (33) 7,108 
Commercial MBS 2,468  77  (1) 2,544 
Other agencies 205  —  212 
Total federal agency and other agency securities 12,453  202  (38) 12,617 
Municipal securities —  — 
Total held-to-maturity securities $ 12,455  $ 202  $ (38) $ 12,619 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock $ 52  $ —  $ —  $ 52 
Federal Reserve Bank stock 511  —  —  511 
Other securities, at fair value
Mutual funds 62  —  —  62 
Equity securities 24  —  —  24 
Total other securities $ 649  $ —  $ —  $ 649 
(1)Amortized cost amounts excludes accrued interest receivable, which is recorded within other assets on the Consolidated Balance Sheets. At September 30, 2021, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $60 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 by Contractual Maturity
The following table provides the amortized cost and fair value of securities by contractual maturity at September 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.
September 30, 2021 December 31, 2020
(dollar amounts in millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available-for-sale securities:
Under 1 year $ 354  $ 351  $ 308  $ 304 
After 1 year through 5 years 1,665  1,668  1,145  1,154 
After 5 years through 10 years 2,935  2,962  1,607  1,654 
After 10 years 20,699  20,673  13,115  13,373 
Total available-for-sale securities $ 25,653  $ 25,654  $ 16,175  $ 16,485 
Held-to-maturity securities:
After 1 year through 5 years $ 80  $ 83  $ 160  $ 169 
After 5 years through 10 years 70  72  131  138 
After 10 years 12,305  12,464  8,570  8,948 
Total held-to-maturity securities $ 12,455  $ 12,619  $ 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 September 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
September 30, 2021
Available-for-sale securities:
Federal agencies:
Residential CMO 1,064  (7) 120  (5) 1,184  (12)
Residential MBS 10,212  (123) —  —  10,212  (123)
Commercial MBS 900  (31) 25  (4) 925  (35)
Other agencies 119  —  —  —  119  — 
Total federal agency and other agency securities 12,295  (161) 145  (9) 12,440  (170)
Municipal securities 339  (8) 377  (10) 716  (18)
Private-label CMO 58 58
Asset-backed securities 186  (1) (1) 193  (2)
Corporate debt 1,184  (20) 28  (1) 1,212  (21)
Total temporarily impaired available-for-sale securities $ 14,062  $ (190) $ 557  $ (21) $ 14,619  $ (211)
Held-to-maturity securities:
Federal agencies:
Residential CMO $ 1,032  $ (4) $ —  $ —  $ 1,032  $ (4)
Residential MBS $ 4,398  $ (33) $ —  $ —  $ 4,398  $ (33)
Commercial MBS 271  (1) —  —  271  (1)
Total federal agency and other agency securities 5,701  (38) —  —  5,701  (38)
Total temporarily impaired held-to-maturity securities $ 5,701  $ (38) $ —  $ —  $ 5,701  $ (38)
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)