Investment Securities

3 Months Ended

Mar. 31, 2021

Investments, Debt and Equity Securities [Abstract]

Investment Securities

INVESTMENT SECURITIES

A summary of the Corporation’s investment securities follows:

(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2021
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	$	4,578	$	59	$	24	$	4,613
Residential mortgage-backed securities (a)	10,924		178		120		10,982
Total investment securities available-for-sale	$	15,502	$	237	$	144	$	15,595
December 31, 2020
Investment securities available-for-sale:
U.S. Treasury and other U.S. government agency securities	$	4,583	$	76	$	1	$	4,658
Residential mortgage-backed securities (a)	10,169		203		2		10,370
Total investment securities available-for-sale	$	14,752	$	279	$	3	$	15,028

(a)Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.

A summary of the Corporation’s investment securities in an unrealized loss position as of March 31, 2021 and December 31, 2020 follows:

	Temporarily Impaired
	Less than 12 Months				12 Months or more				Total
(in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
March 31, 2021
U.S. Treasury and other U.S. government agency securities	$	1,834	$	24	$	—	$	—	$	1,834	$	24
Residential mortgage-backed securities (a)	3,577		120		—		—		3,577		120
Total temporarily impaired securities	$	5,411	$	144	$	—	$	—	$	5,411	$	144
December 31, 2020
U.S. Treasury and other U.S. government agency securities	$	1,119	$	1	$	—	$	—	$	1,119	$	1
Residential mortgage-backed securities (a)	952		2		—		—		952		2
Total temporarily impaired securities	$	2,071	$	3	$	—	$	—	$	2,071	$	3

(a)Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises.

Unrealized losses resulted from changes in market interest rates and liquidity. The Corporation’s portfolio is comprised of securities issued or guaranteed by the U.S. government or government-sponsored enterprises. As such, it is expected that the securities would not be settled at a price less than the amortized cost of the investments. Further, the Corporation does not intend to sell the investments, and it is not more likely than not that it will be required to sell the investments before recovery of amortized costs. At March 31, 2021, the Corporation had 138 securities in an unrealized loss

position with no allowance for credit losses, comprised of 19 U.S. Treasury securities and 119 residential mortgage-backed

securities.

Interest receivable on investment securities totaled $19 million at March 31, 2021 and $18 million at December 31, 2020 and was included in accrued income and other assets on the Consolidated Balance Sheets.

Sales, calls and write-downs of investment securities available-for-sale resulted in the following losses recorded in net securities losses on the Consolidated Statements of Comprehensive Income, computed based on the adjusted cost of the specific security.

	Three Months Ended March 31,
(in millions)	2021		2020
Securities losses	$	—	$	(1)
Net securities losses	$	—	$	(1)

The following table summarizes the amortized cost and fair values of debt securities by contractual maturity. Securities with multiple maturity dates are classified in the period of final maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

(in millions)
March 31, 2021	Amortized Cost		Fair Value
Contractual maturity
Within one year	$	1,617	$	1,634
After one year through five years	3,177		3,208
After five years through ten years	570		587
After ten years	10,138		10,166
Total investment securities	$	15,502	$	15,595

Included in the contractual maturity distribution in the table above were residential mortgage-backed securities with a total amortized cost of $10.9 billion and a fair value of $11.0 billion. The actual cash flows of mortgage-backed securities may differ as borrowers of the underlying loans may exercise prepayment options.

At March 31, 2021, investment securities with a carrying value of $4.7 billion were pledged where permitted or required by law, including $4.0 billion pledged to the Federal Home Loan Bank (FHLB) as collateral for potential future borrowings of approximately $3.9 billion and $648 million to secure $485 million of liabilities, primarily public and other deposits of state and local government agencies as well as derivative instruments. For information on FHLB borrowings, refer to Note 7.