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Securities (Tables)
 3 Months Ended
Mar. 31, 2017
Securities  
Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities
At March 31, 2017 and December 31, 2016, the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale are presented below.
 
 
March 31, 2017
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Asset Liability Management securities:
 
 
 
 
 
 
 


U.S. Treasury
 
$
2,920

 
$
2

 
$
109

 
$
2,813

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
7,474

 
5

 
101

 
7,378

Privately issued
 
431

 
1

 
6

 
426

Privately issued - commercial mortgage-backed securities
 
664

 
5

 
6

 
663

Collateralized loan obligations
 
1,985

 
13

 
1

 
1,997

Other
 
7

 
—

 
—

 
7

Asset Liability Management securities
 
13,481

 
26

 
223

 
13,284

Other debt securities:
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
1,528

 
39

 
24

 
1,543

Other
 
94

 
—

 
1

 
93

Equity securities
 
5

 
—

 
—

 
5

Total securities available for sale
 
$
15,108

 
$
65

 
$
248

 
$
14,925

 
 
December 31, 2016
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Asset Liability Management securities:
 
 
 
 
 
 
 
 
U.S. Treasury
 
$
2,625

 
$
1

 
$
121

 
$
2,505

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
6,814

 
3

 
122

 
6,695

Privately issued
 
333

 
1

 
7

 
327

Privately issued - commercial mortgage-backed securities
 
666

 
4

 
6

 
664

Collateralized loan obligations
 
2,219

 
4

 
5

 
2,218

Other
 
7

 
—

 
—

 
7

Asset Liability Management securities
 
12,664

 
13

 
261

 
12,416

Other debt securities:
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
1,601

 
41

 
29

 
1,613

Other
 
108

 
—

 
1

 
107

Equity securities
 
5

 
—

 
—

 
5

Total securities available for sale
 
$
14,378

 
$
54

 
$
291

 
$
14,141
Proceeds from Sales of Securities Available for Sale and Gross Realized Gains and Losses
The gross realized gains and losses from sales of available for sale securities for the three months ended March 31, 2017 and 2016 are shown below. The specific identification method is used to calculate realized gains and losses on sales.
 
 
For the Three Months Ended March 31,
 
(Dollars in millions)
 
2017
 
2016
 
Gross realized gains
 
$
2

 
$
13

 
Gross realized losses
 
—

 
—

 
Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values
At March 31, 2017 and December 31, 2016, the amortized cost, gross unrealized gains and losses recognized in OCI, carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. Management has asserted the positive intent and ability to hold these securities to maturity.
 
 
March 31, 2017
 
 
 
 
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
 
$
493

 
$
—

 
$
—

 
$
493

 
$
4

 
$
—

 
$
497

U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
 
8,342

 
2

 
38

 
8,306

 
32

 
98

 
8,240

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
1,636

 
—

 
61

 
1,575

 
43

 
7

 
1,611

Total securities held to maturity
 
$
10,471

 
$
2

 
$
99

 
$
10,374

 
$
79

 
$
105

 
$
10,348


 
 
December 31, 2016
 
 
 
 
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
 
$
492

 
$
—

 
$
—

 
$
492

 
$
5

 
$
—

 
$
497

U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
 
8,301

 
3

 
41

 
8,263

 
34

 
96

 
8,201

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
1,645

 
—

 
63

 
1,582

 
43

 
7

 
1,618

Total securities held to maturity
 
$
10,438

 
$
3

 
$
104

 
$
10,337

 
$
82

 
$
103

 
$
10,316
Securities Available for Sale  
Securities  
Securities in Unrealized Loss Position
The Company’s securities available for sale with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, identified for periods less than 12 months and 12 months or more.
 
 
March 31, 2017
 
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
 
$
2,270

 
$
109

 
$
—

 
$
—

 
$
2,270

 
$
109

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
5,567

 
93

 
606

 
8

 
6,173

 
101

Privately issued
 
249

 
5

 
26

 
1

 
275

 
6

Privately issued - commercial mortgage-backed securities
 
371

 
6

 
11

 
—

 
382

 
6

Collateralized loan obligations
 
168

 
—

 
129

 
1

 
297

 
1

Asset Liability Management securities
 
8,625

 
213

 
772

 
10

 
9,397

 
223

Other debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
193

 
6

 
539

 
18

 
732

 
24

Other
 
91

 
1

 
5

 
—

 
96

 
1

Total securities available for sale
 
$
8,909

 
$
220

 
$
1,316

 
$
28

 
$
10,225

 
$
248


 
 
December 31, 2016
 
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
 
$
2,257

 
$
121

 
$
—

 
$
—

 
$
2,257

 
$
121

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
5,501

 
113

 
667

 
9

 
6,168

 
122

Privately issued
 
249

 
6

 
29

 
1

 
278

 
7

Privately issued - commercial mortgage-backed securities
 
415

 
6

 
11

 
—

 
426

 
6

Collateralized loan obligations
 
75

 
—

 
1,077

 
5

 
1,152

 
5

Other
 
—

 
—

 
1

 
—

 
1

 
—

Asset Liability Management securities
 
8,497

 
246

 
1,785

 
15

 
10,282

 
261

Other debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
386

 
12

 
499

 
17

 
885

 
29

Other
 
36

 
1

 
—

 
—

 
36

 
1

Equity securities
 
—

 
—

 
5

 
—

 
5

 
—

Total securities available for sale
 
$
8,919

 
$
259

 
$
2,289

 
$
32

 
$
11,208

 
$
291
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.
 
 
March 31, 2017
(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:
 
 
 
 
 
 
 
 
 
 
   U.S. Treasury
 
$
—

 
$
393

 
$
2,420

 
$
—

 
$
2,813

   Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
   U.S. government agency and government-sponsored agencies
 
—

 
9

 
301

 
7,068

 
7,378

     Privately issued
 
—

 
1

 
—

 
425

 
426

Privately issued - commercial mortgage-backed securities
 
—

 
—

 
—

 
663

 
663

   Collateralized loan obligations
 
—

 
—

 
1,020

 
977

 
1,997

   Other
 
1

 
1

 
5

 
—

 
7

    Asset Liability Management securities
 
1

 
404

 
3,746

 
9,133

 
13,284

Other debt securities:
 
 
 
 
 
 
 
 
 
 
   Direct bank purchase bonds
 
4

 
428

 
719

 
392

 
1,543

   Other
 
—

 
67

 
—

 
26

 
93

      Total debt securities available for sale
 
$
5

 
$
899

 
$
4,465

 
$
9,551

 
$
14,920
Securities Held to Maturity  
Securities  
Securities in Unrealized Loss Position
The Company’s securities held to maturity with a continuous unrealized loss position at March 31, 2017 and December 31, 2016 are shown below, separately for periods less than 12 months and 12 months or more.
 
 
March 31, 2017
 
 
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
 
$
4,977

 
$
—

 
$
96

 
$
1,324

 
$
38

 
$
2

 
$
6,301

 
$
38

 
$
98

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
109

 
—

 
2

 
1,445

 
61

 
5

 
1,554

 
61

 
7

Total securities held to maturity
 
$
5,086

 
$
—

 
$
98

 
$
2,769

 
$
99

 
$
7

 
$
7,855

 
$
99

 
$
105


 
 
December 31, 2016
 
 
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
 
$
4,492

 
$
—

 
$
92

 
$
1,386

 
$
41

 
$
4

 
$
5,878

 
$
41

 
$
96

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
111

 
—

 
1

 
1,448

 
63

 
6

 
1,559

 
63

 
7

Total securities held to maturity
 
$
4,603

 
$
—

 
$
93

 
$
2,834

 
$
104

 
$
10

 
$
7,437

 
$
104

 
$
103
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.
 
 
March 31, 2017
 
 
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
 
$
493

 
$
497

 
$
—

 
$
—

 
$
—

 
$
—

 
$
493

 
$
497

U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
 
—

 
—

 
326

 
324

 
7,980

 
7,916

 
8,306

 
8,240

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
299

 
309

 
558

 
581

 
718

 
721

 
1,575

 
1,611

Total securities held to maturity
 
$
792

 
$
806

 
$
884

 
$
905

 
$
8,698

 
$
8,637

 
$
10,374

 
$
10,348