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Securities (Tables)
 9 Months Ended
Sep. 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 September 30, 2020 and December 31, 2019 are presented below.
 
 
September 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
 
$
3,048

 
$
234

 
$
—

 
$
3,282

 
$
5,485

 
$
6

 
$
53

 
$
5,438

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


U.S. agencies
 
5,390

 
74

 
3

 
5,461

 
5,491

 
13

 
36

 
5,468

Residential - non-agency
 
648

 
8

 
1

 
655

 
759

 
5

 
2

 
762

Commercial - non-agency
 
4,151

 
283

 
8

 
4,426

 
3,461

 
56

 
28

 
3,489

Collateralized loan obligations
 
1,387

 
—

 
16

 
1,371

 
1,499

 
—

 
8

 
1,491

Direct bank purchase bonds
 
901

 
45

 
9

 
937

 
911

 
43

 
18

 
936

Other
 
536

 
2

 
—

 
538

 
202

 
3

 
—

 
205

Total securities available for sale
 
$
16,061

 
$
646

 
$
37

 
$
16,670

 
$
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 nine months ended September 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 September 30,
 
For the Nine Months Ended September 30,
(Dollars in millions)
 
2020
 
2019
 
2020
 
2019
Gross realized gains
 
$
27

 
$
11

 
$
137

 
$
34
Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values
At September 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.
 
 
September 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
 
$
1,735

 
$
—

 
$
—

 
$
1,735

 
$
19

 
$
9

 
$
1,745

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
5,983

 
1

 
76

 
5,908

 
248

 
1

 
6,155

Total securities held to maturity
 
$
7,718

 
$
1

 
$
76

 
$
7,643

 
$
267

 
$
10

 
$
7,900


 
 
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 September 30, 2020 and December 31, 2019 are shown below, separately for periods less than 12 months and 12 months or more.
 
 
September 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
U.S. Treasury and government agencies
 
$
1,113

 
$
—

 
$
9

 
$
—

 
$
—

 
$
—

 
$
1,113

 
$
—

 
$
9

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
56

 
—

 
1

 
2,747

 
76

 
—

 
2,803

 
76

 
1

Total securities held to maturity
 
$
1,169

 
$
—

 
$
10

 
$
2,747

 
$
76

 
$
—

 
$
3,916

 
$
76

 
$
10


 
 
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.
 
 
September 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
 
$
—

 
$
—

 
$
—

 
$
—

 
$
441

 
$
459

 
$
1,294

 
$
1,286

 
$
1,735

 
$
1,745

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
—

 
—

 
645

 
672

 
730

 
764

 
4,533

 
4,719

 
5,908

 
6,155

Total securities held to maturity
 
$
—

 
$
—

 
$
645

 
$
672

 
$
1,171

 
$
1,223

 
$
5,827

 
$
6,005

 
$
7,643

 
$
7,900
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, 2020 and December 31, 2019 are shown below, identified for periods less than 12 months and 12 months or more.
 
 
September 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
U.S. Treasury and government agencies
 
$
80

 
$
—

 
$
—

 
$
—

 
$
80

 
$
—

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
561

 
1

 
801

 
2

 
1,362

 
3

Residential - non-agency
 
162

 
1

 
16

 
—

 
178

 
1

Commercial - non-agency
 
430

 
8

 
—

 
—

 
430

 
8

Collateralized loan obligations
 
871

 
8

 
482

 
8

 
1,353

 
16

Direct bank purchase bonds
 
69

 
2

 
187

 
7

 
256

 
9

Total securities available for sale
 
$
2,173

 
$
20

 
$
1,486

 
$
17

 
$
3,659

 
$
37


 
 
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.
 
 
September 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

 
$
2,963

 
$
161

 
$
3,282

Mortgage-backed:
 
 
 
 
 
 
 
 
 
 
U.S. agencies
 
—

 
66

 
1,017

 
4,378

 
5,461

Residential - non-agency
 
—

 
—

 
—

 
655

 
655

Commercial - non-agency
 
—

 
—

 
1,779

 
2,647

 
4,426

Collateralized loan obligations
 
—

 
7

 
731

 
633

 
1,371

Direct bank purchase bonds
 
94

 
369

 
394

 
80

 
937

Other
 
9

 
179

 
350

 
—

 
538

Total securities available for sale
 
$
103

 
$
779

 
$
7,234

 
$
8,554

 
$
16,670