Investments (Tables)

3 Months Ended

Mar. 31, 2023

The following schedule summarizes the amortized cost and estimated fair values of our HTM and AFS securities:


	March 31, 2023
(In millions)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities	$	98	$	—	$	6	$	92
Agency guaranteed mortgage-backed securities 1	10,471		281		2		10,750
Municipal securities	392		—		24		368
Total held-to-maturity	10,961		281		32		11,210
Available-for-sale
U.S. Treasury securities	656		—		145		511
U.S. Government agencies and corporations:
Agency securities	753		—		37		716
Agency guaranteed mortgage-backed securities	9,423		—		1,203		8,220
Small Business Administration loan-backed securities	701		1		26		676
Municipal securities	1,517		—		70		1,447
Other debt securities	25		—		1		24
Total available-for-sale	13,075		1		1,482		11,594
Total HTM and AFS investment securities	$	24,036	$	282	$	1,514	$	22,804


	December 31, 2022
(In millions)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities	$	100	$	—	$	7	$	93
Agency guaranteed mortgage-backed securities 1	10,621		165		14		10,772
Municipal securities	405		—		31		374
Total held-to-maturity	11,126		165		52		11,239
Available-for-sale
U.S. Treasury securities	557		—		164		393
U.S. Government agencies and corporations:
Agency securities	782		—		46		736
Agency guaranteed mortgage-backed securities	9,652		—		1,285		8,367
Small Business Administration loan-backed securities	740		1		29		712
Municipal securities	1,732		1		99		1,634
Other debt securities	75		—		2		73
Total available-for-sale	13,538		2		1,625		11,915
Total HTM and AFS investment securities	$	24,664	$	167	$	1,677	$	23,154

1 During the fourth quarter of 2022, we transferred approximately $10.7 billion fair value ($13.1 billion amortized cost) of mortgage-backed AFS securities to the HTM category to reflect our intent for these securities. The transfer of these securities from AFS to HTM at fair value resulted in a discount to the amortized cost basis of the HTM securities equivalent to the $2.4 billion ($1.8 billion after-tax) of unrealized losses in AOCI. The amortization of the unrealized losses will offset the effect of the accretion of the discount created by the transfer.

Contractual Maturities Debt Securities

The following schedule shows the amortized cost and weighted average yields of debt securities by contractual maturity of principal payments at March 31, 2023. Actual principal payments and maturities may differ from contractual or expected principal payments and maturities because borrowers have the right to call or prepay obligations with or without call or prepayment penalties.


	March 31, 2023
	Total debt securities				Due in one year or less				Due after one year through five years				Due after five years through ten years				Due after ten years
(Dollar amounts in millions)	Amortized cost		Average yield		Amortized cost		Average yield		Amortized cost		Average yield		Amortized cost		Average yield		Amortized cost		Average yield
Held-to-maturity
U.S. Government agencies and corporations:
Agency securities	$	98	3.51	%	$	—	—	%	$	—	—	%	$	—	—	%	$	98	3.51	%
Agency guaranteed mortgage-backed securities	10,471		1.84		—		—		—		—		48		2.00		10,423		1.84
Municipal securities 1	392		3.17		34		3.36		135		3.06		180		3.31		43		2.80
Total held-to-maturity securities	10,961		1.90		34		3.36		135		3.06		228		3.04		10,564		1.86
Available-for-sale
U.S. Treasury securities	656		2.43		99		4.56		—		—		—		—		557		2.05
U.S. Government agencies and corporations:
Agency securities	753		2.63		18		5.22		313		2.23		224		2.54		198		3.12
Agency guaranteed mortgage-backed securities	9,423		1.96		24		4.32		268		1.55		1,559		2.06		7,572		1.94
Small Business Administration loan-backed securities	701		4.80		—		—		39		5.31		151		4.14		511		4.96
Municipal securities 1	1,517		2.19		119		2.49		517		2.62		680		1.86		201		2.05
Other debt securities	25		8.27		—		—		—		—		10		9.50		15		7.45
Total available-for-sale securities	13,075		2.21		260		3.63		1,137		2.35		2,624		2.20		9,054		2.16
Total HTM and AFS investment securities	$	24,036	2.07	%	$	294	3.60	%	$	1,272	2.43	%	$	2,852	2.26	%	$	19,618	2.00	%

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 AFS securities and the estimated fair value by length of time the securities have been in an unrealized loss position.


	March 31, 2023
	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






Available-for-sale
U.S. Treasury securities	$	—	$	—	$	145	$	412	$	145	$	412
U.S. Government agencies and corporations:
Agency securities	11		216		26		500		37		716
Agency guaranteed mortgage-backed securities	58		1,118		1,145		7,074		1,203		8,192
Small Business Administration loan-backed securities	6		102		20		494		26		596
Municipal securities	4		509		66		873		70		1,382
Other	—		—		1		14		1		14








Total available-for-sale investment securities	$	79	$	1,945	$	1,403	$	9,367	$	1,482	$	11,312


	December 31, 2022
	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






Available-for-sale
U.S. Treasury securities	$	94	$	308	$	70	$	85	$	164	$	393
U.S. Government agencies and corporations:
Agency securities	39		634		7		102		46		736
Agency guaranteed mortgage-backed securities	447		4,322		838		4,042		1,285		8,364
Small Business Administration loan-backed securities	8		101		21		524		29		625
Municipal securities	63		1,295		36		256		99		1,551
Other	2		13		—		—		2		13








Total available-for-sale investment securities	$	653	$	6,673	$	972	$	5,009	$	1,625	$	11,682

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

The following schedule summarizes securities gains and losses recognized in the income statement.


	Three Months Ended March 31,
	2023				2022
(In millions)	Gross gains		Gross losses		Gross gains		Gross losses



Available-for-sale	$	1	$	1	$	—	$	—
Trading	3		3		—		—
Other noninterest-bearing investments	4		3		3		20
Total gains	8		7		3		20
Net gains (losses) 1			$	1			$	(17)

1 Net gains (losses) were recognized in securities gains (losses) in the income statement.

Interest Income by Security Type

The following schedule presents interest income by security type.


	Three Months Ended March 31,
	2023						2022
(In millions)	Taxable		Nontaxable		Total		Taxable		Nontaxable		Total
Investment securities:
Held-to-maturity	$	60	$	1	$	61	$	2	$	1	$	3
Available-for-sale	69		6		75		96		8		104
Trading	1		—		1		—		5		5
Total securities	$	130	$	7	$	137	$	98	$	14	$	112