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Investment Securities
 12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
NOTE 5 Investment Securities
The Company’s held-to-maturity investment securities are carried at historical cost, adjusted for amortization of premiums and accretion of discounts. The Company’s available-for-sale investment securities are carried at fair
value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders’ equity.
The amortized cost, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities at December 31 were as follows:
 20232022
(Dollars in Millions)Amortized CostUnrealized GainsUnrealized Losses Fair ValueAmortized CostUnrealized GainsUnrealized Losses Fair Value
Held-to-maturity
U.S. Treasury and agencies$1,345 $— $(35)$1,310 $1,344 $— $(51)$1,293 
Mortgage-backed securities
Residential agency80,997 6 (9,929)71,074 85,693 2 (10,810)74,885 
Commercial agency1,695 6 (5)1,696 1,703 1 (8)1,696 
Other8 — — 8 — — — — 
Total held-to-maturity$84,045 $12 $(9,969)$74,088 $88,740 $3 $(10,869)$77,874 
Available-for-sale
U.S. Treasury and agencies$21,768 $8 $(2,234)$19,542 $24,801 $1 $(2,769)$22,033 
Mortgage-backed securities        
Residential agency28,185 104 (2,211)26,078 32,060 8 (2,797)29,271 
Commercial
Agency8,703 — (1,360)7,343 8,736 — (1,591)7,145 
Non-agency7 — (1)6 7 — — 7 
Asset-backed securities6,713 25 (14)6,724 4,356 5 (38)4,323 
Obligations of state and political subdivisions10,867 36 (914)9,989 11,484 12 (1,371)10,125 
Other24 — — 24 6 — — 6 
Total available-for-sale, excluding portfolio level basis adjustments76,267 173 (6,734)69,706 81,450 26 (8,566)72,910 
Portfolio level basis adjustments (a)
335 — (335)— — — — — 
Total available-for-sale$76,602 $173 $(7,069)$69,706 $81,450 $26 $(8,566)$72,910 
(a)Represents fair value hedge basis adjustments related to active portfolio layer method hedges of available-for-sale investment securities, which are not allocated to individual securities in the portfolio. For additional information, refer to Note 20.

Investment securities with a fair value of $20.5 billion at December 31, 2023, and $15.3 billion at December 31, 2022, were pledged to secure public, private and trust deposits, repurchase agreements and for other purposes required by contractual obligation or law. Included in these amounts were securities where the Company and certain
counterparties have agreements granting the counterparties the right to sell or pledge the securities. Investment securities securing these types of arrangements had a fair value of $338 million at December 31, 2023, and $858 million at December 31, 2022.
The following table provides information about the amount of interest income from taxable and non-taxable investment securities:
Year Ended December 31 (Dollars in Millions)202320222021
Taxable$4,171 $3,081 $2,103 
Non-taxable314 297 262 
Total interest income from investment securities$4,485 $3,378 $2,365 
The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities:
Year Ended December 31 (Dollars in Millions)202320222021
Realized gains$74 $163 $122 
Realized losses(219)(143)(19)
Net realized gains (losses)$(145)$20 $103 
Income tax expense (benefit) on net realized gains (losses)$(37)$5 $26 
The Company conducts a regular assessment of its available-for-sale investment securities with unrealized losses to determine whether all or some portion of a security’s unrealized loss is related to credit and an allowance for credit losses is necessary. If the Company intends to sell or it is more likely than not the Company will be required to sell an investment security, the amortized cost of the security is written down to fair value. When evaluating credit losses, the Company considers various factors such as the nature of the investment security, the credit ratings or financial condition of the issuer, the extent
of the unrealized loss, expected cash flows of underlying collateral, the existence of any government or agency guarantees, and market conditions. The Company measures the allowance for credit losses using market information where available and discounting the cash flows at the original effective rate of the investment security. The allowance for credit losses is adjusted each period through earnings and can be subsequently recovered. The allowance for credit losses on the Company’s available-for-sale investment securities was immaterial at December 31, 2023 and December 31, 2022.
At December 31, 2023, certain investment securities had a fair value below amortized cost. The following table shows the gross unrealized losses excluding portfolio level basis adjustments and fair value of the Company’s available-for-sale investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at December 31, 2023:
Less Than 12 Months 12 Months or Greater Total
(Dollars in Millions)Fair ValueUnrealized Losses Fair ValueUnrealized Losses Fair ValueUnrealized Losses
U.S. Treasury and agencies$874 $(3)$17,270 $(2,231)$18,144 $(2,234)
Mortgage-backed securities
Residential agency519 (8)21,356 (2,203)21,875 (2,211)
Commercial
Agency— — 7,343 (1,360)7,343 (1,360)
Non-agency— — 6 (1)6 (1)
Asset-backed securities2,235 (14)— — 2,235 (14)
Obligations of state and political subdivisions544 (3)7,464 (911)8,008 (914)
Other— — 4 — 4 — 
Total investment securities$4,172 $(28)$53,443 $(6,706)$57,615 $(6,734)
These unrealized losses primarily relate to changes in interest rates and market spreads subsequent to purchase of these available-for-sale investment securities. U.S. Treasury and agencies securities and agency mortgage-backed securities are issued, guaranteed or otherwise supported by the United States government. The Company’s obligations of state and political subdivisions are generally high grade. Accordingly, the Company does not consider these unrealized losses to be credit-related and an allowance for credit losses is not necessary. In general, the issuers of the investment securities are contractually prohibited from prepayment at less than par, and the Company did not pay significant purchase premiums for these investment securities. At December 31, 2023, the Company had no plans to sell investment securities with
unrealized losses, and believes it is more likely than not it would not be required to sell such investment securities before recovery of their amortized cost.
During the years ended December 31, 2023 and 2022, the Company did not purchase any investment securities that had more-than-insignificant credit deterioration.
Predominantly all of the Company’s held-to-maturity investment securities are U.S. Treasury and agencies securities and highly rated agency mortgage-backed securities that are guaranteed or otherwise supported by the United States government and have no history of credit losses. Accordingly the Company does not expect to incur any credit losses on held-to-maturity investment securities and has no allowance for credit losses recorded for these securities.
The following table provides information about the amortized cost, fair value and yield by maturity date of the investment securities outstanding at December 31, 2023:
(Dollars in Millions)Amortized
 Cost		Fair ValueWeighted-
 Average
 Maturity in
 Years
Weighted-Average Yield(e)
 
Held-to-maturity
U.S. Treasury and Agencies
Maturing in one year or less$50 $50 0.32.67 %
Maturing after one year through five years1,295 1,260 2.42.85 
Maturing after five years through ten years— — —— 
Maturing after ten years— — —— 
Total$1,345 $1,310 2.32.85 %
Mortgage-Backed Securities(a)
Maturing in one year or less$22 $22 0.74.43 %
Maturing after one year through five years1,268 1,266 2.54.52 
Maturing after five years through ten years75,984 67,094 8.82.19 
Maturing after ten years5,418 4,388 10.21.91 
Total$82,692 $72,770 8.82.21 %
Other
Maturing in one year or less$— $— —— %
Maturing after one year through five years8 8 2.82.56 
Maturing after five years through ten years— — —— 
Maturing after ten years— — —— 
Total$8 $8 2.82.56 %
Total held-to-maturity(b)
$84,045 $74,088 8.72.22 %
Available-for-sale
U.S. Treasury and Agencies
Maturing in one year or less$9 $9 0.35.28 %
Maturing after one year through five years8,882 8,378 3.72.35 
Maturing after five years through ten years11,165 9,827 6.82.08 
Maturing after ten years1,712 1,328 10.82.02 
Total$21,768 $19,542 5.92.19 %
Mortgage-Backed Securities(a)
Maturing in one year or less$83 $81 0.82.26 %
Maturing after one year through five years11,196 10,860 3.53.80 
Maturing after five years through ten years24,455 21,483 7.32.76 
Maturing after ten years1,161 1,003 10.93.43 
Total$36,895 $33,427 6.33.09 %
Asset-Backed Securities (a)
Maturing in one year or less$— $— —— %
Maturing after one year through five years5,834 5,844 1.75.05 
Maturing after five years through ten years879 880 5.87.15 
Maturing after ten years— — —— 
Total$6,713 $6,724 2.25.33 %
Obligations of State and Political Subdivisions(c) (d)
Maturing in one year or less$225 $225 0.45.52 %
Maturing after one year through five years3,546 3,536 3.04.55 
Maturing after five years through ten years1,453 1,414 7.33.86 
Maturing after ten years5,643 4,814 15.33.14 
Total$10,867 $9,989 9.93.75 %
Other
Maturing in one year or less$— $— —— %
Maturing after one year through five years24 24 1.74.51 
Maturing after five years through ten years— — —— 
Maturing after ten years— — —— 
Total$24 $24 1.74.51 %
Total available-for-sale(b) (f)
$76,267 $69,706 6.33.12 %
(a)Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments.
(b)The weighted-average maturity of total held-to-maturity investment securities was 9.2 years at December 31, 2022, with a corresponding weighted-average yield of 2.18 percent. The weighted-average maturity of total available-for-sale investment securities was 7.4 years at December 31, 2022, with a corresponding weighted-average yield of 2.94 percent.
(c)Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount.
(d)Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par.
(e)Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to maturity.
(f)Amortized cost excludes portfolio level basis adjustments of $335 million.