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Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2018
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

  TABLE 13

 

   Investment Securities

 

    Available-for-Sale            Held-to-Maturity  
At December 31, 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

   $ 2,231      $ 2,221        .5        1.49 %             $ 650      $ 647        .5        1.73 % 

Maturing after one year through five years

     16,735        16,416        2.8        1.75            3,459        3,338        4.2        1.64  

Maturing after five years through ten years

     638        620        7.4        2.82            993        976        5.9        2.36  

Maturing after ten years

     –        –        –        –                –        –        –        –  

Total

   $ 19,604      $ 19,257        2.7        1.76 %                 $ 5,102      $ 4,961        4.1        1.79 % 

Mortgage-Backed Securities(a)

                           

Maturing in one year or less

   $ 60      $ 60        .2        3.85 %             $ 65      $ 65        .8        2.37 % 

Maturing after one year through five years

     19,058        18,598        4.4        2.38            18,247        17,688        4.1        2.17  

Maturing after five years through ten years

     18,987        18,648        6.4        2.81            22,280        21,891        6.2        2.84  

Maturing after ten years

     2,439        2,448        14.2        3.45                328        327        13.9        3.34  

Total

   $ 40,544      $ 39,754        5.9        2.65 %                 $ 40,920      $ 39,971        5.3        2.54 % 

Asset-Backed Securities(a)

                           

Maturing in one year or less

   $ –      $ –        –        – %             $ –      $ –        –        – % 

Maturing after one year through five years

     397        403        3.5        3.69            3        4        3.3        3.19  

Maturing after five years through ten years

     –        –        –        –            2        3        5.6        3.29  

Maturing after ten years

     –        –        –        –                –        1        15.6        3.20  

Total

   $ 397      $ 403        3.5        3.69 %                 $ 5      $ 8        4.1        3.22 % 

Obligations of State and Political Subdivisions(b)(c)

                           

Maturing in one year or less

   $ 284      $ 287        .5        5.67 %             $ –      $ –        .2        6.49 % 

Maturing after one year through five years

     552        558        3.5        4.53            1        1        3.1        6.65  

Maturing after five years through ten years

     4,093        4,069        7.9        4.36            5        6        7.2        1.97  

Maturing after ten years

     1,907        1,787        19.1        4.09                –        –        –        –  

Total

   $ 6,836      $ 6,701        10.4        4.35 %                 $ 6      $ 7        6.8        2.45 % 

Other

                           

Maturing in one year or less

   $ –      $ –        –        – %             $ 9      $ 9        .6        3.68 % 

Maturing after one year through five years

     –        –        –        –            8        8        1.4        3.34  

Maturing after five years through ten years

     –        –        –        –            –        –        –        –  

Maturing after ten years

     –        –        –        –                –        –        –        –  

Total

   $ –      $ –        –        – %                 $ 17      $ 17        1.0        3.52 % 

Total investment securities(d)

   $ 67,381      $ 66,115        5.4        2.57 %                 $ 46,050      $ 44,964        5.2        2.46 % 
(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.

 

    2018               2017  
At December 31 (Dollars in Millions)   Amortized
Cost		        Percent
of Total		               Amortized
Cost		        Percent
of Total		  

U.S. Treasury and agencies

   $ 24,706          21.8 %           $ 28,767          25.5 % 

Mortgage-backed securities

     81,464          71.8              77,606          68.6  

Asset-backed securities

     402          .4              419          .4  

Obligations of state and political subdivisions

     6,842          6.0              6,246          5.5  

Other

     17          –                  41          –  

Total investment securities

   $ 113,431          100.0 %               $ 113,079          100.0 % 

 
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 at December 31 were as follows:

Available-for-sale

                      

U.S. Treasury and agencies

   $ 19,604     $ 11     $ –     $ (358 )    $ 19,257     $ 23,586     $ 3     $ –     $ (288 )    $ 23,301  

Mortgage-backed securities

                      

Residential agency

     40,542       120       –       (910 )      39,752       38,450       152       –       (571 )      38,031  

Commercial agency

     2       –       –       –       2       6       –       –       –       6  

Other asset-backed securities

     397       6       –       –       403       413       6       –       –       419  

Obligations of state and political subdivisions

     6,836       37       –       (172 )      6,701       6,240       147       –       (29 )      6,358  

Other

     –       –       –       –       –       22       –       –       –       22  

Total available-for-sale

   $ 67,381     $ 174     $ –     $ (1,440 )    $ 66,115     $ 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.

 
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 at December 31 were as follows:

 

    2018     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

   $ 5,102     $ 2     $ –     $ (143 )    $ 4,961     $ 5,181     $ 5     $ –     $ (120 )    $ 5,066  

Residential agency mortgage-backed securities

     40,920       45       –       (994 )      39,971       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

     8       –       –       –       8       12       –       –       –       12  

Total held-to-maturity

   $ 46,050     $ 51     $ –     $ (1,137 )    $ 44,964     $ 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.
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:

 

Year Ended December 31 (Dollars in Millions)   2018        2017        2016  

Taxable

   $ 2,396        $ 2,043        $ 1,878  

Non-taxable

     220          189          200  

Total interest income from investment securities

   $ 2,616        $ 2,232        $ 2,078  
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:

 

Year Ended December 31 (Dollars in Millions)   2018        2017        2016  

Realized gains

   $ 30        $ 75        $ 93  

Realized losses

     –          (18 )         (66 ) 

Net realized gains (losses)

   $ 30        $ 57        $ 27  

Income tax (benefit) on net realized gains (losses)

   $ 7        $ 22        $ 10  
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 December 31, 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

   $ 182        $ (1 )       $ 4,639        $ (142 )       $ 4,821        $ (143 ) 

Residential agency mortgage-backed securities

     7,878          (83 )         25,570          (911 )         33,448          (994 ) 

Other asset-backed securities

     —          —          2          —          2          —  

Obligations of foreign governments

     1          —          —          —          1          —  

Other

     —          —          8          —          8          —  

Total held-to-maturity

   $ 8,061        $ (84 )       $ 30,219        $ (1,053 )       $ 38,280        $ (1,137 ) 

Available-for-sale

                               

U.S. Treasury and agencies

   $ 118        $ —        $ 17,828        $ (358 )       $ 17,946        $ (358 ) 

Residential agency mortgage-backed securities

     6,269          (45 )         23,694          (865 )         29,963          (910 ) 

Commercial agency mortgage-backed securities

     2          —          —          —          2          —  

Obligations of state and political subdivisions

     2,623          (60 )         1,363          (112 )         3,986          (172 ) 

Total available-for-sale

   $ 9,012        $ (105 )       $ 42,885        $ (1,335 )       $ 51,897        $ (1,440 )