|
Securities (Tables)
|
9 Months Ended |
|
Sep. 30, 2012
|
| Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities |
At
September 30, 2012 and December 31, 2011, the amortized
cost, gross unrealized gains, gross unrealized losses, and fair
values of securities are presented below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30, 2012 |
|
| |
|
|
|
|
Gross |
|
|
Gross |
|
|
|
|
| |
|
Amortized |
|
|
Unrealized |
|
|
Unrealized |
|
|
Fair |
|
|
(Dollars in
millions)
|
|
Cost |
|
|
Gains |
|
|
Losses |
|
|
Value |
|
|
U.S. government sponsored
agencies
|
|
$ |
2,599 |
|
|
$ |
30 |
|
|
$ |
— |
|
|
$ |
2,629 |
|
|
Residential mortgage-backed
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and government
sponsored agencies
|
|
|
11,687 |
|
|
|
285 |
|
|
|
2 |
|
|
|
11,970 |
|
|
Privately issued
|
|
|
505 |
|
|
|
10 |
|
|
|
17 |
|
|
|
498 |
|
|
Commercial mortgage-backed
securities
|
|
|
2,251 |
|
|
|
110 |
|
|
|
— |
|
|
|
2,361 |
|
|
Collateralized loan obligations
(CLOs)
|
|
|
1,652 |
|
|
|
4 |
|
|
|
66 |
|
|
|
1,590 |
|
|
Other debt securities
|
|
|
1,804 |
|
|
|
35 |
|
|
|
84 |
|
|
|
1,755 |
|
|
Equity securities
|
|
|
104 |
|
|
|
— |
|
|
|
— |
|
|
|
104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for
sale
|
|
$ |
20,602 |
|
|
$ |
474 |
|
|
$ |
169 |
|
|
$ |
20,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
debt securities in the table above include approximately $0.9
billion of tax-exempt conduit debt bonds. These instruments were
recorded as loans held for investment at December 31, 2011 and
prior periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
|
(Dollars in
millions)
|
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
U.S. government sponsored
agencies
|
|
$ |
6,943 |
|
|
$ |
54 |
|
|
$ |
— |
|
|
$ |
6,997 |
|
|
Residential mortgage-backed
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and government
sponsored agencies
|
|
|
13,307 |
|
|
|
182 |
|
|
|
4 |
|
|
|
13,485 |
|
|
Privately issued
|
|
|
800 |
|
|
|
1 |
|
|
|
63 |
|
|
|
738 |
|
|
Commercial mortgage-backed
securities
|
|
|
1,032 |
|
|
|
29 |
|
|
|
1 |
|
|
|
1,060 |
|
|
Other debt securities
|
|
|
463 |
|
|
|
11 |
|
|
|
2 |
|
|
|
472 |
|
|
Equity securities
|
|
|
81 |
|
|
|
— |
|
|
|
— |
|
|
|
81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for
sale
|
|
$ |
22,626 |
|
|
$ |
277 |
|
|
$ |
70 |
|
|
$ |
22,833 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Securities Available for Sale With Continuous Unrealized Loss |
The
Company’s securities available for sale with a continuous
unrealized loss position at September 30, 2012 and
December 31, 2011 are shown below, identified for periods less
than 12 months and 12 months or more.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30,
2012 |
|
| |
|
Less than 12
months |
|
|
12 months or more |
|
|
Total |
|
|
(Dollars in
millions)
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Residential mortgage-backed
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and government
sponsored agencies
|
|
$ |
562 |
|
|
$ |
2 |
|
|
$ |
24 |
|
|
$ |
— |
|
|
$ |
586 |
|
|
$ |
2 |
|
|
Privately issued
|
|
|
59 |
|
|
|
1 |
|
|
|
158 |
|
|
|
16 |
|
|
|
217 |
|
|
|
17 |
|
|
CLOs
|
|
|
— |
|
|
|
— |
|
|
|
1,106 |
|
|
|
66 |
|
|
|
1,106 |
|
|
|
66 |
|
|
Other debt securities
|
|
|
985 |
|
|
|
84 |
|
|
|
23 |
|
|
|
— |
|
|
|
1,008 |
|
|
|
84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for
sale
|
|
$ |
1,606 |
|
|
$ |
87 |
|
|
$ |
1,311 |
|
|
$ |
82 |
|
|
$ |
2,917 |
|
|
$ |
169 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
| |
|
Less than 12
months |
|
|
12 months or more |
|
|
Total |
|
|
(Dollars in
millions)
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Fair
Value |
|
|
Unrealized
Losses |
|
|
Residential mortgage-backed
securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and government
sponsored agencies
|
|
$ |
1,106 |
|
|
$ |
4 |
|
|
$ |
59 |
|
|
$ |
— |
|
|
$ |
1,165 |
|
|
$ |
4 |
|
|
Privately issued
|
|
|
551 |
|
|
|
23 |
|
|
|
99 |
|
|
|
40 |
|
|
|
650 |
|
|
|
63 |
|
|
Commercial mortgage-backed
securities
|
|
|
95 |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
95 |
|
|
|
1 |
|
|
Other debt securities
|
|
|
23 |
|
|
|
2 |
|
|
|
3 |
|
|
|
— |
|
|
|
26 |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities available for
sale
|
|
$ |
1,775 |
|
|
$ |
30 |
|
|
$ |
161 |
|
|
$ |
40 |
|
|
$ |
1,936 |
|
|
$ |
70 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortized Cost and Fair Value of Debt Securities Available for Sale by Contractual Maturity |
The
amortized cost and fair value of debt securities available for sale
by contractual maturity are shown below. Actual maturities may
differ from contractual maturities because borrowers may have the
right to prepay obligations with or without prepayment
penalties.
|
|
|
|
|
|
|
|
|
| |
|
September 30,
2012 |
|
|
(Dollars in
millions)
|
|
Amortized
Cost |
|
|
Fair Value |
|
|
Due in one year or less
|
|
$ |
1,195 |
|
|
$ |
1,202 |
|
|
Due after one year through five
years
|
|
|
2,557 |
|
|
|
2,578 |
|
|
Due after five years through ten
years
|
|
|
2,295 |
|
|
|
2,231 |
|
|
Due after ten years
|
|
|
14,451 |
|
|
|
14,792 |
|
|
|
|
|
|
|
|
|
|
|
Total debt securities available for
sale
|
|
$ |
20,498 |
|
|
$ |
20,803 |
|
|
|
|
|
|
|
|
|
|
|
| Proceeds from Sales of Securities Available for Sale and Gross Realized Gains and Losses |
The
proceeds from sales of securities available for sale and gross
realized gains and losses are shown below. The specific
identification method is used to calculate realized gains and
losses on sales.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the Three Months
Ended September 30, |
|
|
For the Nine Months
Ended September 30, |
|
|
(Dollars in
millions)
|
|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
|
|
Proceeds from sales
|
|
$ |
1,985 |
|
|
$ |
632 |
|
|
$ |
6,109 |
|
|
$ |
4,463 |
|
|
Gross realized gains
|
|
|
43 |
|
|
|
1 |
|
|
|
92 |
|
|
|
59 |
|
|
Gross realized losses
|
|
|
1 |
|
|
|
— |
|
|
|
2 |
|
|
|
— |
|
|
| Schedule of Held to Maturity Securities Recognized and Not Recognized In Other Comprehensive Income (OCI), and Fair Values |
The
securities held to maturity consist of CLOs and U.S. government and
government sponsored agencies residential mortgage-backed
securities. Management has asserted the positive intent and ability
to hold these securities to maturity. At September 30, 2012
and December 31, 2011, the amortized cost, gross unrealized
gains and losses recognized in other comprehensive income (OCI),
carrying amount, gross unrealized gains and losses not recognized
in OCI, and fair values of securities held to maturity are
presented below.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30, 2012 |
|
| |
|
|
|
|
Recognized in
OCI |
|
|
|
|
|
Not Recognized in
OCI |
|
|
|
|
|
(Dollars in
millions)
|
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Carrying
Amount |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
CLOs
|
|
$ |
157 |
|
|
$ |
— |
|
|
$ |
21 |
|
|
$ |
136 |
|
|
$ |
25 |
|
|
$ |
— |
|
|
$ |
161 |
|
|
U.S. government and government
sponsored agencies—residential mortgage backed
securities
|
|
|
1,041 |
|
|
|
5 |
|
|
|
— |
|
|
|
1,046 |
|
|
|
17 |
|
|
|
— |
|
|
|
1,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities held to
maturity
|
|
$ |
1,198 |
|
|
$ |
5 |
|
|
$ |
21 |
|
|
$ |
1,182 |
|
|
$ |
42 |
|
|
$ |
— |
|
|
$ |
1,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
| |
|
|
|
|
Recognized in
OCI |
|
|
|
|
|
Not Recognized in
OCI |
|
|
|
|
|
(Dollars in
millions)
|
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Carrying
Amount |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
|
CLOs
|
|
$ |
1,653 |
|
|
$ |
— |
|
|
$ |
380 |
|
|
$ |
1,273 |
|
|
$ |
159 |
|
|
$ |
3 |
|
|
$ |
1,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Securities Held to Maturity With Continuous Unrealized Loss Position |
The
Company’s securities held to maturity with a continuous
unrealized loss position at September 30, 2012 and
December 31, 2011 are shown below, separately for periods less
than 12 months and 12 months or more.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30,
2012 |
|
| |
|
Less than 12
months |
|
|
12 months or more |
|
|
Total |
|
| |
|
|
|
|
Unrealized Losses |
|
|
|
|
|
Unrealized Losses |
|
|
|
|
|
Unrealized Losses |
|
|
(Dollars in
millions)
|
|
Fair
Value |
|
|
Recognized
in OCI |
|
|
Not Recognized
in OCI |
|
|
Fair
Value |
|
|
Recognized
in OCI |
|
|
Not Recognized
in OCI |
|
|
Fair
Value |
|
|
Recognized
in OCI |
|
|
Not Recognized
in OCI |
|
|
CLOs
|
|
$ |
6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
155 |
|
|
$ |
21 |
|
|
$ |
— |
|
|
$ |
161 |
|
|
$ |
21 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
December 31, 2011 |
|
| |
|
Less than 12
months |
|
|
12 months or more |
|
|
Total |
|
| |
|
|
|
|
Unrealized Losses |
|
|
|
|
|
Unrealized Losses |
|
|
|
|
|
Unrealized Losses |
|
|
(Dollars in
millions)
|
|
Fair
Value |
|
|
Recognized
in OCI |
|
|
Not Recognized
in OCI |
|
|
Fair
Value |
|
|
Recognized
in OCI |
|
|
Not Recognized
in OCI |
|
|
Fair
Value |
|
|
Recognized
in OCI |
|
|
Not Recognized
in OCI |
|
|
CLOs
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,420 |
|
|
$ |
380 |
|
|
$ |
3 |
|
|
$ |
1,420 |
|
|
$ |
380 |
|
|
$ |
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortized Cost, Fair Value and Carrying Amount of Securities Held to Maturity by Contractual Maturity |
The
amortized cost, carrying amount and fair value of securities held
to maturity by contractual maturity are shown below. Actual
maturities may differ from contractual maturities because borrowers
may have the right to prepay obligations with or without prepayment
penalties.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
September 30,
2012 |
|
|
(Dollars in
millions)
|
|
Amortized
Cost |
|
|
Carrying
Amount |
|
|
Fair
Value |
|
|
Due after one year through five
years
|
|
$ |
157 |
|
|
$ |
136 |
|
|
$ |
161 |
|
|
Due after ten years
|
|
|
1,041 |
|
|
|
1,046 |
|
|
|
1,063 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total securities held to
maturity
|
|
$ |
1,198 |
|
|
$ |
1,182 |
|
|
$ |
1,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|