Investments (Tables)

12 Months Ended

Dec. 31, 2020


	December 31, 2020
(In millions)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Held-to-maturity
Municipal securities	$	636	$	5	$	1	$	640
Available-for-sale
U.S. Treasury securities	205		—		13		192
U.S. Government agencies and corporations:
Agency securities	1,051		40		—		1,091
Agency guaranteed mortgage-backed securities	11,439		262		8		11,693
Small Business Administration loan-backed securities	1,195		—		35		1,160
Municipal securities	1,352		68		—		1,420
Other debt securities	175		—		—		175


Total available-for-sale	15,417		370		56		15,731
Total investment securities	$	16,053	$	375	$	57	$	16,371


	December 31, 2019
(In millions)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Held-to-maturity
Municipal securities	$	592	$	5	$	—	$	597
Available-for-sale
U.S. Treasury securities	25		—		—		25
U.S. Government agencies and corporations:
Agency securities	1,301		5		4		1,302
Agency guaranteed mortgage-backed securities	9,518		83		42		9,559
Small Business Administration loan-backed securities	1,535		1		41		1,495
Municipal securities	1,282		37		—		1,319
Other debt securities	25		—		—		25


Total available-for-sale	13,686		126		87		13,725
Total investment securities	$	14,278	$	131	$	87	$	14,322

Contractual Maturities Debt Securities


	December 31, 2020
	Total debt investment securities				Due in one year or less				Due after one year through five years				Due after five years through 10 years				Due after 10 years
(Dollar amounts in millions)	Amortized cost		Avg yield		Amortized cost		Avg yield		Amortized cost		Avg yield		Amortized cost		Avg yield		Amortized cost		Avg yield
Held-to-maturity
Municipal securities 1	$	636	3.08	%	$	146	2.05	%	$	187	3.42	%	$	174	3.19	%	$	129	3.58	%

Available-for-sale
U.S. Treasury securities	205		0.99		50		0.09		—		—		—		—		155		1.28
U.S. Government agencies and corporations:
Agency securities	1,051		2.36		—		—		292		1.73		238		2.65		521		2.58
Agency guaranteed mortgage-backed securities	11,439		1.87		—		—		372		1.48		728		1.77		10,339		1.89
Small Business Administration loan-backed securities	1,195		1.56		—		—		43		1.39		137		1.61		1,015		1.56
Municipal securities 1	1,352		2.44		99		1.83		640		2.39		432		2.60		181		2.59
Other debt securities	175		1.05		—		—		—		—		160		0.87		15		2.93


Total available-for-sale securities	15,417		1.91		149		1.24		1,347		1.96		1,695		2.01		12,226		1.89
Total investment securities	$	16,053	1.95	%	$	295	1.64	%	$	1,534	2.14	%	$	1,869	2.12	%	$	12,355	1.91	%

1 The yields on tax-exempt securities are calculated on a tax-equivalent basis.

Summary of Amount of Gross Unrealized Losses for Debt Securities and Estimated Fair Value

The following schedule summarizes the amount of gross unrealized losses for debt securities and the estimated fair value by length of time the securities have been in an unrealized loss position:


	December 31, 2020
	Less than 12 months				12 months or more				Total
(In millions)	Gross unrealized losses		Estimated fair value		Gross unrealized losses		Estimated fair value		Gross unrealized losses		Estimated fair value
Held-to-maturity
Municipal securities	$	1	$	96	$	—	$	12	$	1	$	108




Available-for-sale
U.S. Treasury securities	13		142		—		—		13		142
U.S. Government agencies and corporations:
Agency securities	—		6		—		2		—		8
Agency guaranteed mortgage-backed securities	7		1,197		1		179		8		1,376
Small Business Administration loan-backed securities	—		15		35		1,068		35		1,083
Municipal securities	—		19		—		—		—		19
Other	—		150		—		—		—		150







Total available-for-sale	20		1,529		36		1,249		56		2,778
Total investment securities	$	21	$	1,625	$	36	$	1,261	$	57	$	2,886


	December 31, 2019
	Less than 12 months				12 months or more				Total
(In millions)	Gross unrealized losses		Estimated fair value		Gross unrealized losses		Estimated fair value		Gross unrealized losses		Estimated fair value
Held-to-maturity
Municipal securities	$	—	$	73	$	—	$	45	$	—	$	118




Available-for-sale
U.S. Government agencies and corporations:
Agency securities	2		222		2		359		4		581
Agency guaranteed mortgage-backed securities	4		1,173		38		3,215		42		4,388
Small Business Administration loan-backed securities	1		172		40		1,215		41		1,387
Municipal securities	—		50		—		5		—		55
Other	—		—		—		—		—		—







Total available-for-sale	7		1,617		80		4,794		87		6,411
Total investment securities	$	7	$	1,690	$	80	$	4,839	$	87	$	6,529

Debt Securities, Held-to-maturity

The amortized cost basis of HTM securities categorized by year of issuance is summarized as follows:


	December 31, 2020
	Amortized cost basis by year of issuance
(In millions)	2020		2019		2018		2017		2016		Prior		Total Securities
Held-to-maturity	$	216	$	18	$	—	$	12	$	176	$	214	$	636

Gains and Losses, Including OTTI, Recognized in Statement of Income

The following summarizes gains and losses that were recognized in the statement of income:


	2020				2019				2018
(In millions)	Gross gains		Gross losses		Gross gains		Gross losses		Gross gains		Gross losses



Other noninterest-bearing investments	$	27	$	20	$	20	$	17	$	17	$	16

Net gains			$	7			$	3			$	1

Interest Income by Security Type

Interest income by security type is as follows:


(In millions)	2020						2019						2018
	Taxable		Nontaxable		Total		Taxable		Nontaxable		Total		Taxable		Nontaxable		Total
Investment securities:
Held-to-maturity	$	10	$	10	$	20	$	9	$	13	$	22	$	10	$	14	$	24
Available-for-sale	252		25		277		308		25		333		295		26		321
Trading	—		7		7		1		6		7		1		4		5
Total	$	262	$	42	$	304	$	318	$	44	$	362	$	306	$	44	$	350