Securities (Tables)

9 Months Ended

Sep. 30, 2017

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

At September 30, 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.



	September 30, 2017
(Dollars in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Asset Liability Management securities:
U.S. Treasury	$	3,072	$	—	$	90	$	2,982
U.S. government-sponsored agencies	11		1		—		12
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	10,117		11		82		10,046
Privately issued	552		3		4		551
Privately issued - commercial mortgage-backed securities	739		6		3		742
Collateralized loan obligations	2,133		9		1		2,141
Other	5		—		—		5
Asset Liability Management securities	16,629		30		180		16,479
Other debt securities:
Direct bank purchase bonds	1,519		47		21		1,545
Other	80		—		—		80
Equity securities	10		—		—		10
Total securities available for sale	$	18,238	$	77	$	201	$	18,114



	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 and nine months ended September 30, 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 September 30,				For the Nine Months Ended September 30,
(Dollars in millions)	2017		2016		2017		2016
Gross realized gains	$	6	$	23	$	15	$	55

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

At September 30, 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.



	September 30, 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	$	524	$	—	$	—	$	524	$	6	$	—	$	530
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	8,324		2		34		8,292		38		78		8,252
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	1,582		—		55		1,527		46		6		1,567
Total securities held to maturity	$	10,430	$	2	$	89	$	10,343	$	90	$	84	$	10,349



	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 September 30, 2017 and December 31, 2016 are shown below, identified for periods less than 12 months and 12 months or more.



	September 30, 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	$	2,600	$	75	$	382	$	15	$	2,982	$	90
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	5,556		66		924		16		6,480		82
Privately issued	175		2		52		2		227		4
Privately issued - commercial mortgage-backed securities	314		3		7		—		321		3
Collateralized loan obligations	63		—		54		1		117		1
Asset Liability Management securities	8,708		146		1,419		34		10,127		180
Other debt securities:
Direct bank purchase bonds	11		3		589		18		600		21
Other	56		—		—		—		56		—
Equity securities	—		—		10		—		10		—
Total securities available for sale	$	8,775	$	149	$	2,018	$	52	$	10,793	$	201



	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.



	September 30, 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	$	—	$	—	$	2,982	$	—	$	2,982
U.S. government-sponsored agencies	9		3		—		—		12
Residential mortgage-backed securities:
U.S. government agency and government-sponsored agencies	2		4		407		9,633		10,046
Privately issued	—		1		—		550		551
Privately issued - commercial mortgage-backed securities	—		—		—		742		742
Collateralized loan obligations	—		12		940		1,189		2,141
Other	—		5		—		—		5
Asset Liability Management securities	11		25		4,329		12,114		16,479
Other debt securities:
Direct bank purchase bonds	8		529		630		378		1,545
Other	—		56		—		24		80
Total debt securities available for sale	$	19	$	610	$	4,959	$	12,516	$	18,104

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, 2017 and December 31, 2016 are shown below, separately for periods less than 12 months and 12 months or more.



	September 30, 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	$	4,024	$	—	$	61	$	1,710	$	34	$	17	$	5,734	$	34	$	78
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	—		—		—		1,515		55		6		1,515		55		6
Total securities held to maturity	$	4,024	$	—	$	61	$	3,225	$	89	$	23	$	7,249	$	89	$	84



	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.



	September 30, 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	$	524	$	530	$	—	$	—	$	—	$	—	$	524	$	530
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities	100		100		391		389		7,801		7,763		8,292		8,252
U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities	783		816		69		72		675		679		1,527		1,567
Total securities held to maturity	$	1,407	$	1,446	$	460	$	461	$	8,476	$	8,442	$	10,343	$	10,349

- Definition

Tabular disclosure of all investments in certain debt and equity securities for which the entity has the positive intent and ability to hold until maturity.

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