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Securities (Tables)
 6 Months Ended
Jun. 30, 2020
Securities  
Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities
he amortized cost, gross unrealized gains, gross unrealized losses and fair value of securities available for sale at June 30, 2020 and December 31, 2019 are presented below.
 
 
June 30, 2020
 
December 31, 2019
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury and government agencies
 
$
3,661

 
$
242

 
$
—

 
$
3,903

 
$
5,485

 
$
6

 
$
53

 
$
5,438

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


U.S. agencies
 
4,366

 
85

 
7

 
4,444

 
5,491

 
13

 
36

 
5,468

Residential - non-agency
 
681

 
9

 
1

 
689

 
759

 
5

 
2

 
762

Commercial - non-agency
 
3,877

 
250

 
13

 
4,114

 
3,461

 
56

 
28

 
3,489

Collateralized loan obligations
 
1,397

 
—

 
38

 
1,359

 
1,499

 
—

 
8

 
1,491

Direct bank purchase bonds
 
904

 
39

 
11

 
932

 
911

 
43

 
18

 
936

Other
 
187

 
1

 
—

 
188

 
202

 
3

 
—

 
205

Total securities available for sale
 
$
15,073

 
$
626

 
$
70

 
$
15,629

 
$
17,808

 
$
126

 
$
145

 
$
17,789
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 six months ended June 30, 2020 and 2019 are shown below. The specific identification method is used to calculate realized gains and losses on sales.
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(Dollars in millions)
 
2020
 
2019
 
2020
 
2019
Gross realized gains
 
$
57

 
$
22

 
$
110

 
$
23
Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values
At June 30, 2020 and December 31, 2019, the amortized cost, gross unrealized gains and losses recognized in OCI, carrying amount, gross unrealized gains and losses not recognized in OCI, and fair value of securities held to maturity are presented below. Management has asserted the positive intent and ability to hold these securities to maturity.
 
 
June 30, 2020
 
 
 
 
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 and government agencies
 
$
1,243

 
$
—

 
$
—

 
$
1,243

 
$
19

 
$
—

 
$
1,262

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
6,949

 
1

 
88

 
6,862

 
295

 
—

 
7,157

Total securities held to maturity
 
$
8,192

 
$
1

 
$
88

 
$
8,105

 
$
314

 
$
—

 
$
8,419


 
 
December 31, 2019
 
 
 
 
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 and government agencies
 
$
1,359

 
$
—

 
$
—

 
$
1,359

 
$
—

 
$
6

 
$
1,353

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
8,166

 
—

 
104

 
8,062

 
123

 
30

 
8,155

Total securities held to maturity
 
$
9,525

 
$
—

 
$
104

 
$
9,421

 
$
123

 
$
36

 
$
9,508
Securities Held to Maturity  
Securities  
Securities in Unrealized Loss Position
The Company’s securities held to maturity with a continuous unrealized loss position at June 30, 2020 and December 31, 2019 are shown below, separately for periods less than 12 months and 12 months or more.
 
 
June 30, 2020
 
 
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
Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
$
38

 
$
—

 
$
—

 
$
3,048

 
$
88

 
$
—

 
$
3,086

 
$
88

 
$
—

Total securities held to maturity
 
$
38

 
$
—

 
$
—

 
$
3,048

 
$
88

 
$
—

 
$
3,086

 
$
88

 
$
—


 
 
December 31, 2019
 
 
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. Treasury and government agencies
 
$
509

 
$
—

 
$
6

 
$
—

 
$
—

 
$
—

 
$
509

 
$
—

 
$
6

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
1,084

 
—

 
9

 
4,515

 
104

 
21

 
5,599

 
104

 
30

Total securities held to maturity
 
$
1,593

 
$
—

 
$
15

 
$
4,515

 
$
104

 
$
21

 
$
6,108

 
$
104

 
$
36
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.
 
 
June 30, 2020
 
 
Within One Year
 
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
 
Carrying
Amount
 
Fair
Value
U.S. Treasury and government agencies
 
$
2

 
$
2

 
$
—

 
$
—

 
$
1,241

 
$
1,260

 
$
—

 
$
—

 
$
1,243

 
$
1,262

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
—

 
—

 
658

 
688

 
786

 
821

 
5,418

 
5,648

 
6,862

 
7,157

Total securities held to maturity
 
$
2

 
$
2

 
$
658

 
$
688

 
$
2,027

 
$
2,081

 
$
5,418

 
$
5,648

 
$
8,105

 
$
8,419
Securities Available for Sale  
Securities  
Securities in Unrealized Loss Position
The Company’s securities available for sale with a continuous unrealized loss position at June 30, 2020 and December 31, 2019 are shown below, identified for periods less than 12 months and 12 months or more.
 
 
June 30, 2020
 
 
Less Than 12 Months
 
12 Months or More
 
Total
(Dollars in millions)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
$
114

 
$
1

 
$
1,078

 
$
6

 
$
1,192

 
$
7

Residential - non-agency
 
89

 
1

 
17

 
—

 
106

 
1

Commercial - non-agency
 
281

 
13

 
2

 
—

 
283

 
13

Collateralized loan obligations
 
883

 
21

 
476

 
17

 
1,359

 
38

Direct bank purchase bonds
 
159

 
2

 
185

 
9

 
344

 
11

Other
 
50

 
—

 
—

 
—

 
50

 
—

Total securities available for sale
 
$
1,576

 
$
38

 
$
1,758

 
$
32

 
$
3,334

 
$
70


 
 
December 31, 2019
 
 
Less Than 12 Months
 
12 Months or More
 
Total
(Dollars in millions)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
U.S. Treasury and government agencies
 
$
4,407

 
$
48

 
$
543

 
$
5

 
$
4,950

 
$
53

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
914

 
4

 
2,769

 
32

 
3,683

 
36

Residential - non-agency
 
127

 
—

 
155

 
2

 
282

 
2

Commercial - non-agency
 
1,669

 
28

 
12

 
—

 
1,681

 
28

Collateralized loan obligations
 
597

 
2

 
790

 
6

 
1,387

 
8

Direct bank purchase bonds
 
118

 
1

 
294

 
17

 
412

 
18

Other
 
25

 
—

 
—

 
—

 
25

 
—

Total securities available for sale
 
$
7,857

 
$
83

 
$
4,563

 
$
62

 
$
12,420

 
$
145
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.
 
 
June 30, 2020
(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
U.S. Treasury and government agencies
 
$
—

 
$
158

 
$
3,637

 
$
108

 
$
3,903

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
—

 
76

 
990

 
3,378

 
4,444

Residential - non-agency
 
—

 
—

 
—

 
689

 
689

Commercial - non-agency
 
28

 
—

 
1,685

 
2,401

 
4,114

Collateralized loan obligations
 
—

 
3

 
412

 
944

 
1,359

Direct bank purchase bonds
 
82

 
273

 
482

 
95

 
932

Other
 
10

 
178

 
—

 
—

 
188

Total securities available for sale
 
$
120

 
$
688

 
$
7,206

 
$
7,615

 
$
15,629