Investment Securities (Tables)

9 Months Ended

Sep. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Investment Securities

 Table 4    Investment Securities

	Available-for-Sale									Held-to-Maturity
At September 30, 2018 (Dollars in Millions)	Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)			Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)
U.S. Treasury and Agencies
Maturing in one year or less	$	3,028	$	3,016		.4		1.26	%	$	650	$	646		.7		1.73	%
Maturing after one year through five years		16,490		15,935		3.0		1.70			2,912		2,755		4.4		1.64
Maturing after five years through ten years		658		630		7.6		2.85			1,550		1,475		5.7		2.10
Maturing after ten years		–		–		–		–			–		–		–		–
Total	$	20,176	$	19,581		2.8		1.67	%	$	5,112	$	4,876		4.3		1.79	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	69	$	69		.4		3.83	%	$	36	$	36		.8		2.51	%
Maturing after one year through five years		13,644		13,074		4.4		2.09			15,158		14,479		4.0		2.03
Maturing after five years through ten years		23,195		22,574		6.3		2.63			25,348		24,544		6.3		2.67
Maturing after ten years		2,583		2,598		14.4		3.18			360		361		14.0		3.06
Total	$	39,491	$	38,315		6.2		2.48	%	$	40,902	$	39,420		5.5		2.43	%
Asset-Backed Securities (a)
Maturing in one year or less	$	–	$	–		–		–	%	$	–	$	–		–		–	%
Maturing after one year through five years		402		408		3.6		3.49			3		4		3.3		2.90
Maturing after five years through ten years		–		–		–		–			2		3		6.4		3.00
Maturing after ten years		–		–		–		–			–		1		17.0		2.84
Total	$	402	$	408		3.6		3.49	%	$	5	$	8		4.4		2.93	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	238	$	242		.6		5.70	%	$	–	$	–		.2		6.24	%
Maturing after one year through five years		583		587		3.5		4.62			1		1		3.4		6.67
Maturing after five years through ten years		3,886		3,818		8.2		4.37			5		6		7.5		2.01
Maturing after ten years		2,140		1,961		19.0		4.11			–		–		–		–
Total	$	6,847	$	6,608		10.9		4.35	%	$	6	$	7		7.0		2.55	%
Other
Maturing in one year or less	$	–	$	–		–		–	%	$	9	$	9		.1		3.21	%
Maturing after one year through five years		–		–		–		–			12		12		1.2		3.08
Maturing after five years through ten years		–		–		–		–			–		–		–		–
Maturing after ten years		–		–		–		–			–		–		–		–
Total	$	–	$	–		–		–	%	$	21	$	21		.7		3.14	%
Total investment securities (d)	$	66,916	$	64,912		5.6		2.43	%	$	46,046	$	44,332		5.4		2.36	%

(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) 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.

(c) 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.

(d) The weighted-average maturity of the available-for-sale investment securities was 5.1 years at December 31, 2017, with a corresponding weighted-average yield of 2.25 percent.

The weighted-average maturity of the held-to-maturity investment securities was 4.7 years at December 31, 2017, with a corresponding weighted-average yield of 2.14 percent.

(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 for 2018 and 35 percent for 2017. Yields on available-for-sale and held-to-maturity 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.

	September 30, 2018					December 31, 2017
(Dollars in Millions)	Amortized Cost		Percent of Total			Amortized Cost		Percent of Total
U.S. Treasury and agencies	$	25,288		22.4	%	$	28,767		25.5	%
Mortgage-backed securities		80,393		71.2			77,606		68.6
Asset-backed securities		407		.3			419		.4
Obligations of state and political subdivisions		6,853		6.1			6,246		5.5
Other		21		–			41		–
Total investment securities	$	112,962		100.0	%	$	113,079		100.0	%

Investment Securities Held-to-Maturity

The amortized cost, other-than-temporary impairment recorded in other comprehensive income (loss), gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities were as follows:

	September 30, 2018											December 31, 2017
					Unrealized Losses											Unrealized Losses
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Other-than- Temporary (a)		Other (b)			Fair Value		Amortized Cost		Unrealized Gains		Other-than- Temporary (a)		Other (b)			Fair Value
Held-to-maturity
U.S. Treasury and agencies	$	5,112	$	–	$	–	$	(236	)	$	4,876	$	5,181	$	5	$	–	$	(120	)	$	5,066
Residential agency mortgage-backed securities		40,902		30		–		(1,512	)		39,420		39,150		48		–		(579	)		38,619
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		1		–		–			1		–		4		–		–			4
Other		5		2		–		–			7		6		2		–		–			8
Obligations of state and political subdivisions		6		1		–		–			7		6		1		–		–			7
Obligations of foreign governments		9		–		–		–			9		7		–		–		–			7
Other		12		–		–		–			12		12		–		–		–			12
Total held-to-maturity	$	46,046	$	34	$	–	$	(1,748	)	$	44,332	$	44,362	$	60	$	–	$	(699	)	$	43,723

(a) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired.

(b) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired.

Investment Securities Available-for-Sale

The amortized cost, other-than-temporary impairment recorded in other comprehensive income (loss), gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities were as follows:

	September 30, 2018					December 31, 2017
			Unrealized Losses					Unrealized Losses
(Dollars in Millions)	Amortized Cost	Unrealized Gains	Other-than- Temporary (a)	Other (b)	Fair Value	Amortized Cost	Unrealized Gains	Other-than- Temporary (a)	Other (b)	Fair Value

Available-for-sale
U.S. Treasury and agencies	$	20,176	$	1	$	–	$	(596	)	$	19,581	$	23,586	$	3	$	–	$	(288	)	$	23,301
Mortgage-backed securities
Residential agency		39,486		103		–		(1,279	)		38,310		38,450		152		–		(571	)		38,031
Commercial agency		5		–		–		–			5		6		–		–		–			6
Other asset-backed securities		402		6		–		–			408		413		6		–		–			419
Obligations of state and political subdivisions		6,847		21		–		(260	)		6,608		6,240		147		–		(29	)		6,358
Other		–		–		–		–			–		22		–		–		–			22
Total available-for-sale	$	66,916	$	131	$	–	$	(2,135	)	$	64,912	$	68,717	$	308	$	–	$	(888	)	$	68,137

(a) Represents impairment not related to credit for those investment securities that have been determined to be other-than-temporarily impaired.

(b) Represents unrealized losses on investment securities that have not been determined to be other-than-temporarily impaired.

Amount of Interest Income from Taxable and Non-Taxable Investment Securities

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in Millions)	2018		2017		2018		2017
Taxable	$	605	$	523	$	1,763	$	1,513
Non-taxable		56		45		164		140
Total interest income from investment securities	$	661	$	568	$	1,927	$	1,653

Amount of Gross Gains and Losses Realized through Sales of Available-for-Sale Investment Securities

The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities:

	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in Millions)	2018		2017		2018		2017
Realized gains	$	10	$	9	$	25	$	65
Realized losses		–		–		–		(18	)
Net realized gains (losses)	$	10	$	9	$	25	$	47
Income tax (benefit) on net realized gains (losses)	$	2	$	3	$	6	$	18

Gross Unrealized Losses and Fair Value of Company's Investment Securities

The following table shows the gross unrealized losses and fair value of the Company’s 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 September 30, 2018:

	Less Than 12 Months					12 Months or Greater					Total
(Dollars in Millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Held-to-maturity
U.S. Treasury and agencies	$	1,867	$	(43	)	$	2,993	$	(193	)	$	4,860	$	(236	)
Residential agency mortgage-backed securities		18,097		(522	)		18,191		(990	)		36,288		(1,512	)
Other asset-backed securities		–		–			2		–			2		–
Obligations of foreign governments		1		–			–		–			1		–
Other		–		–			12		–			12		–
Total held-to-maturity	$	19,965	$	(565	)	$	21,198	$	(1,183	)	$	41,163	$	(1,748	)
Available-for-sale
U.S. Treasury and agencies	$	8,685	$	(225	)	$	10,848	$	(371	)	$	19,533	$	(596	)
Residential agency mortgage-backed securities		10,786		(246	)		20,350		(1,033	)		31,136		(1,279	)
Commercial agency mortgage-backed securities		5		–			–		–			5		–
Obligations of state and political subdivisions		3,950		(125	)		1,197		(135	)		5,147		(260	)
Total available-for-sale	$	23,426	$	(596	)	$	32,395	$	(1,539	)	$	55,821	$	(2,135	)