5.Securities Available for Sale and Securities Held to Maturity

The amortized cost, gross unrealized gains and losses, and fair value of securities available for sale and securities held to maturity are as follows:


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2013	Cost		Gains		Losses		Value
Securities available for sale:
U.S. agency mortgage-backed securities	$	18,554	$	140	$	49	$	18,645
Asset-backed securities		15,201		42		37		15,206
Corporate debt securities		8,973		49		15		9,007
U.S. agency notes		4,239		1		104		4,136
Certificates of deposit		3,650		4		2		3,652
Non-agency residential mortgage-backed securities		616		11		34		593
Non-agency commercial mortgage-backed securities		271		8		-		279
Other securities		100		-		-		100
Total securities available for sale	$	51,604	$	255	$	241	$	51,618
Securities held to maturity:
U.S. agency mortgage-backed securities	$	29,260	$	161	$	921	$	28,500
Non-agency commercial mortgage-backed securities		958		-		68		890
Other securities		100		-		-		100
Total securities held to maturity	$	30,318	$	161	$	989	$	29,490


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
December 31, 2012	Cost		Gains		Losses		Value
Securities available for sale:
U.S. agency mortgage-backed securities	$	20,080	$	396	$	-	$	20,476
Asset-backed securities		8,104		62		2		8,164
Corporate debt securities		6,197		61		2		6,256
Certificates of deposit		6,150		12		1		6,161
U.S. agency notes		3,465		2		3		3,464
Non-agency residential mortgage-backed securities		796		2		65		733
Commercial paper		574		-		-		574
Other securities		278		17		-		295
Total securities available for sale	$	45,644	$	552	$	73	$	46,123
Securities held to maturity:
U.S. agency mortgage-backed securities	$	17,750	$	558	$	19	$	18,289
Other securities		444		-		1		443
Total securities held to maturity	$	18,194	$	558	$	20	$	18,732

A summary of securities with unrealized losses, aggregated by category and period of continuous unrealized loss, is as follows:


	Less than				12 months
	12 months				or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2013	Value		Losses		Value		Losses		Value		Losses
Securities available for sale:
U.S agency mortgage-backed securities	$	5,044	$	47	$	93	$	2	$	5,137	$	49
Asset-backed securities		6,391		33		591		4		6,982		37
Corporate debt securities		1,802		14		499		1		2,301		15
U.S. agency notes		3,636		104		-		-		3,636		104
Certificates of deposit		-		-		299		2		299		2
Non-agency residential mortgage-backed
securities		89		2		374		32		463		34
Total	$	16,962	$	200	$	1,856	$	41	$	18,818	$	241
Securities held to maturity:
U.S. agency mortgage-backed securities	$	19,175	$	698	$	2,345	$	223	$	21,520	$	921
Non-agency commercial mortgage-backed
securities		630		43		260		25		890		68
Total	$	19,805	$	741	$	2,605	$	248	$	22,410	$	989
Total securities with unrealized losses (1)	$	36,767	$	941	$	4,461	$	289	$	41,228	$	1,230

(1)	The number of investment positions with unrealized losses totaled 273 for securities available for sale and 193 for securities held to maturity.


	Less than				12 months
	12 months				or longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
December 31, 2012	Value		Losses		Value		Losses		Value		Losses
Securities available for sale:
Asset-backed securities	$	-	$	-	$	801	$	2	$	801	$	2
Corporate debt securities		878		2		-		-		878		2
Certificates of deposit		599		1		-		-		599		1
U.S. agency notes		2,102		3		-		-		2,102		3
Non-agency residential mortgage-backed
securities		46		1		549		64		595		65
Total	$	3,625	$	7	$	1,350	$	66	$	4,975	$	73
Securities held to maturity:
U.S. agency mortgage-backed securities	$	2,680	$	19	$	-	$	-	$	2,680	$	19
Other securities		240		1		-		-		240		1
Total	$	2,920	$	20	$	-	$	-	$	2,920	$	20
Total securities with unrealized losses (1)	$	6,545	$	27	$	1,350	$	66	$	7,895	$	93

(1)	The number of investment positions with unrealized losses totaled 139 for securities available for sale and 24 for securities held to maturity.

Management evaluates whether securities available for sale and securities held to maturity are other-than-temporarily impaired (OTTI) on a quarterly basis as described in note “2 – Summary of Significant Accounting Policies.”

Non-agency residential mortgage-backed securities include securities collateralized by loans that are considered to be
“Prime” (defined as loans to borrowers with a Fair Isaac Corporation (FICO) credit score of 620 or higher at origination), and “Alt-A” (defined as Prime loans with reduced documentation at origination). Management determined that it does not expect to recover all of the amortized cost of certain of its Alt-A and Prime residential mortgage-backed securities and therefore determined that these securities were OTTI. The Company does not intend to sell these securities and it is not “more likely than not” that the Company will be required to sell these securities before anticipated recovery of the unrealized losses on these securities. The Company recognized an impairment charge equal to the securities’ expected credit losses of $10 million in 2013. The expected credit losses were measured as the difference between the present value of expected cash flows and the amortized cost of the securities. Further deterioration in the performance of the underlying loans in the Company’s non-agency residential mortgage-backed securities portfolio could result in the recognition of additional impairment losses.

The following table is a rollforward of the amount of credit losses recognized in earnings for OTTI securities held by the Company during the period for which a portion of the impairment was reclassified from or recognized in other comprehensive (loss) income:


Year Ended December 31,		2013		2012		2011
Balance at beginning of year	$	159	$	127	$	96
Credit losses recognized into current year earnings on debt securities for
which an other-than-temporary impairment was not previously recognized		1		6		6
Credit losses recognized into current year earnings on debt securities for
which an other-than-temporary impairment was previously recognized		9		26		25
Balance at end of year	$	169	$	159	$	127

The maturities of securities available for sale and securities held to maturity at December 31, 2013, are as follows:


			After 1 year		After 5 years
	Within		through		through		After
	1 year		5 years		10 years		10 years		Total
Securities available for sale:
U.S. agency mortgage-backed securities (1)	$	-	$	508	$	4,458	$	13,679	$	18,645
Asset-backed securities		-		1,219		3,284		10,703		15,206
Corporate debt securities		1,348		7,554		105		-		9,007
U.S. agency notes		-		3,896		240		-		4,136
Certificates of deposit		1,826		1,826		-		-		3,652
Non-agency residential mortgage-backed
securities (1)		-		4		-		589		593
Non-agency commercial mortgage-backed
securities (1)		-		-		-		279		279
Other securities		100		-		-		-		100
Total fair value	$	3,274	$	15,007	$	8,087	$	25,250	$	51,618
Total amortized cost	$	3,270	$	15,062	$	8,041	$	25,231	$	51,604
Securities held to maturity:
U.S. agency mortgage-backed securities (1)	$	-	$	555	$	11,985	$	15,960	$	28,500
Non-agency commercial mortgage-backed
securities (1)		-		-		337		553		890
Other securities		100		-		-		-		100
Total fair value	$	100	$	555	$	12,322	$	16,513	$	29,490
Total amortized cost	$	100	$	550	$	12,894	$	16,774	$	30,318

(1)	Mortgage-backed securities have been allocated to maturity groupings based on final contractual maturities. Actual maturities will differ from final contractual maturities because borrowers on a certain portion of loans underlying these securities have the right to prepay their obligations.

Proceeds and gross realized gains from sales of securities available for sale are as follows:


Year Ended December 31,		2013		2012		2011
Proceeds	$	6,167	$	3,336	$	500
Gross realized gains	$	7	$	35	$	1

There were no realized losses from the sales of securities available for sale in 2013, 2012, or 2011.