Securities (Tables)

9 Months Ended

Sep. 30, 2015

Securities

Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities

At September 30, 2015 and December 31, 2014, the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities are presented below.

	September 30, 2015
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	$	7,879	$	8	$	27	$	7,860
Privately issued	131		2		1		132
Privately issued - commercial mortgage-backed securities	1,586		15		6		1,595
Collateralized loan obligations	3,132		2		25		3,109
Other	7		1		—		8
Asset Liability Management securities	12,735		28		59		12,704
Other debt securities:
Direct bank purchase bonds	1,567		46		19		1,594
Other	48		1		—		49
Equity securities	6		2		—		8
Total securities available for sale	$	14,356	$	77	$	78	$	14,355

	December 31, 2014
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	$	7,649	$	2	$	91	$	7,560
Privately issued	166		3		1		168
Privately issued - commercial mortgage-backed securities	1,689		15		13		1,691
Collateralized loan obligations	2,527		4		37		2,494
Other	8		1		—		9
Asset Liability Management securities	12,039		25		142		11,922
Other debt securities:
Direct bank purchase bonds	1,719		49		27		1,741
Other	53		—		1		52
Equity securities	8		2		1		9
Total securities available for sale	$	13,819	$	76	$	171	$	13,724

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)	2015		2014		2015		2014
Proceeds from sales	$	633	$	602	$	1,528	$	1,200
Gross realized gains	6		13		17		21
Gross realized losses	—		—		1		—

Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values

At September 30, 2015 and December 31, 2014, 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, 2015
			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
U.S. Treasury	$	488	$	—	$	—	$	488	$	11	$	—	$	499
U.S. government-sponsored agencies	900		—		—		900		1		—		901
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	7,322		4		56		7,270		113		8		7,375
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,758		—		75		1,683		71		1		1,753
Total securities held to maturity	$	10,468	$	4	$	131	$	10,341	$	196	$	9	$	10,528

	December 31, 2014
			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
U.S. Treasury	$	486	$	—	$	—	$	486	$	3	$	—	$	489
U.S. government-sponsored agencies	125		—		—		125		—		—		125
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	6,002		6		66		5,942		76		5		6,013
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,820		—		82		1,738		53		6		1,785
Total securities held to maturity	$	8,433	$	6	$	148	$	8,291	$	132	$	11	$	8,412

Securities Available for Sale

Securities

Securities in Unrealized Loss Position

The Company’s securities available for sale with a continuous unrealized loss position at September 30, 2015 and December 31, 2014 are shown below, identified for periods less than 12 months and 12 months or more.

	September 30, 2015
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	$	2,724	$	8	$	2,396	$	19	$	5,120	$	27
Privately issued	10		—		41		1		51		1
Privately issued - commercial mortgage-backed securities	710		5		76		1		786		6
Collateralized loan obligations	1,182		6		1,203		19		2,385		25
Other	—		—		1		—		1		—
Asset Liability Management securities	4,626		19		3,717		40		8,343		59
Other debt securities:
Direct bank purchase bonds	42		—		771		19		813		19
Other	2		—		—		—		2		—
Equity securities	—		—		5		—		5		—
Total securities available for sale	$	4,670	$	19	$	4,493	$	59	$	9,163	$	78

	December 31, 2014
	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
Asset Liability Management securities:
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	$	611	$	1	$	6,258	$	90	$	6,869	$	91
Privately issued	9		—		49		1		58		1
Privately issued - commercial mortgage-backed securities	143		—		842		13		985		13
Collateralized loan obligations	657		6		1,481		31		2,138		37
Other	—		—		1		—		1		—
Asset Liability Management securities	1,420		7		8,631		135		10,051		142
Other debt securities:
Direct bank purchase bonds	75		3		937		24		1,012		27
Other	—		—		22		1		22		1
Equity securities	1		1		5		—		6		1
Total securities available for sale	$	1,496	$	11	$	9,595	$	160	$	11,091	$	171

Debt Securities by Contractual Maturity

The 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, 2015
(Dollars in millions)	One Year or Less		Over One Year Through Five Years		Over Five Years Through Ten Years		Over Ten Years		Total Fair Value
Asset Liability Management securities:
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	$	—	$	22	$	382	$	7,456	$	7,860
Privately issued	—		3		—		129		132
Privately issued - commercial mortgage-backed securities	—		—		37		1,558		1,595
Collateralized loan obligations	—		11		1,444		1,654		3,109
Other	—		2		6		—		8
Asset Liability Management securities	—		38		1,869		10,797		12,704
Other debt securities:
Direct bank purchase bonds	66		476		654		398		1,594
Other	4		12		2		31		49
Total debt securities available for sale	$	70	$	526	$	2,525	$	11,226	$	14,347

Securities Held to Maturity

Securities

Securities in Unrealized Loss Position

The Company’s securities held to maturity with a continuous unrealized loss position at September 30, 2015 and December 31, 2014 are shown below, separately for periods less than 12 months and 12 months or more.

	September 30, 2015
	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
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	$	1,077	$	—	$	8	$	1,794	$	56	$	—	$	2,871	$	56	$	8
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	—		—		—		1,464		75		1		1,464		75		1
Total securities held to maturity	$	1,077	$	—	$	8	$	3,258	$	131	$	1	$	4,335	$	131	$	9

	December 31, 2014
	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
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	$	399	$	—	$	1	$	2,341	$	66	$	4	$	2,740	$	66	$	5
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	134		—		—		1,552		82		6		1,686		82		6
Total securities held to maturity	$	533	$	—	$	1	$	3,893	$	148	$	10	$	4,426	$	148	$	11

Debt Securities by Contractual Maturity

The 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, 2015
	Over One Year Through Five Years				Over Five Years Through Ten Years				Over Ten Years				Total
(Dollars in millions)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
U.S. Treasury	$	488	$	499	$	—	$	—	$	—	$	—	$	488	$	499
U.S. government-sponsored agencies	458		458		442		443		—		—		900		901
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	—		—		18		18		7,252		7,357		7,270		7,375
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	49		51		798		852		836		850		1,683		1,753
Total securities held to maturity	$	995	$	1,008	$	1,258	$	1,313	$	8,088	$	8,207	$	10,341	$	10,528