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Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Investment Securities

Table 4      Investment Securities

 

    Available-for-Sale             Held-to-Maturity  
At March 31, 2019
(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

   $ 2,064      $ 2,056        .4        1.51 %         $ 500      $ 498        .3        1.72 % 

Maturing after one year through five years

     16,534        16,339        2.6        1.77            3,901        3,820        4.1        1.71  

Maturing after five years through ten years

     529        524        7.2        2.80            530        524        6.5        2.45  

Maturing after ten years

     –        –        –        –                –        –        –        –  
 

Total

   $ 19,127      $ 18,919        2.5        1.77 %             $ 4,931      $ 4,842        4.0        1.79 % 

Mortgage-Backed Securities (a)

                           

Maturing in one year or less

   $ 19      $ 19        .6        3.10 %         $ 158      $ 156        .8        2.08 % 

Maturing after one year through five years

     25,789        25,578        3.9        2.66            26,001        25,672        3.8        2.49  

Maturing after five years through ten years

     14,104        13,923        5.9        2.70            14,860        14,726        5.9        2.79  

Maturing after ten years

     2,357        2,361        13.3        3.50                308        307        12.9        3.44  
 

Total

   $ 42,269      $ 41,881        5.1        2.72 %             $ 41,327      $ 40,861        4.6        2.61 % 

Asset-Backed Securities (a)

                           

Maturing in one year or less

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

Maturing after one year through five years

     389        395        3.4        3.77            4        8        3.3        3.20  

Maturing after five years through ten years

     –        –        –        –            1        1        6.1        3.30  

Maturing after ten years

     –        –        –        –                –        1        14.8        3.19  
 

Total

   $ 389      $ 395        3.4        3.77 %             $ 5      $ 10        3.6        3.21 % 

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

                           

Maturing in one year or less

   $ 266      $ 268        .3        5.65 %         $ –      $ –        .8        7.47 % 

Maturing after one year through five years

     571        585        3.4        4.53            1        1        3.3        6.49  

Maturing after five years through ten years

     5,192        5,299        7.7        4.30            4        4        7.0        2.42  

Maturing after ten years

     785        766        20.4        4.04                –        –        –        –  
 

Total

   $ 6,814      $ 6,918        8.6        4.34 %             $ 5      $ 5        6.5        2.87 % 

Other

                           

Maturing in one year or less

   $ –      $ –        –        – %         $ 9      $ 9        .3        3.68 % 

Maturing after one year through five years

     –        –        –        –            8        8        1.1        3.44  

Maturing after five years through ten years

     –        –        –        –            –        –        –        –  

Maturing after ten years

     –        –        –        –                –        –        –        –  
 

Total

   $ –      $ –        –        – %             $ 17      $ 17        .7        3.56 % 

Total investment securities (d)

   $ 68,599      $ 68,113        4.7        2.62 %             $ 46,285      $ 45,735        4.5        2.52 % 

 

(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 5.4 years at December 31, 2018, with a corresponding weighted-average yield of 2.57 percent. The weighted-average maturity of the held-to-maturity investment securities was 5.2 years at December 31, 2018, with a corresponding weighted-average yield of 2.46 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. 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.

 

    March 31, 2019             December 31, 2018  
(Dollars in Millions)   Amortized
Cost		      Percent
of Total		             Amortized
Cost		      Percent
of Total		  

U.S. Treasury and agencies

   $ 24,058        20.9 %         $ 24,706        21.8 % 

Mortgage-backed securities

     83,596        72.8            81,464        71.8  

Asset-backed securities

     394        .4            402        .4  

Obligations of state and political subdivisions

     6,819        5.9            6,842        6.0  

Other

     17        –                17        –  

Total investment securities

   $ 114,884        100.0 %             $ 113,431        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:

 

    March 31, 2019            December 31, 2018  
                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

   $ 4,931     $ 3     $ –     $ (92 )    $ 4,842         $ 5,102     $ 2     $ –     $ (143 )    $ 4,961  

Residential agency mortgage-backed securities

     41,327       103       –       (569 )      40,861           40,920       45       –       (994 )      39,971  

Asset-backed securities

                        

Collateralized debt obligations/Collateralized loan obligations

     –       3       –       –       3           –       1       –       –       1  

Other

     5       2       –       –       7           5       2       –       –       7  

Obligations of state and political subdivisions

     5       –       –       –       5           6       1       –       –       7  

Obligations of foreign governments

     9       –       –       –       9           9       –       –       –       9  

Other

     8       –       –       –       8               8       –       –       –       8  

Total held-to-maturity

   $ 46,285     $ 111     $ –     $ (661 )    $ 45,735             $ 46,050     $ 51     $ –     $ (1,137 )    $ 44,964  

 

(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:

 

Available-for-sale

                        

U.S. Treasury and agencies

   $ 19,127     $ 17     $ –     $ (225 )    $ 18,919         $ 19,604     $ 11     $ –     $ (358 )    $ 19,257  

Mortgage-backed securities

                        

Residential agency

     42,267       153       –       (541 )      41,879           40,542       120       –       (910 )      39,752  

Commercial agency

     2       –       –       –       2           2       –       –       –       2  

Other asset-backed securities

     389       6       –       –       395           397       6       –       –       403  

Obligations of state and political subdivisions

     6,814       138       –       (34 )      6,918               6,836       37       –       (172 )      6,701  

Total available-for-sale

   $ 68,599     $ 314     $ –     $ (800 )    $ 68,113             $ 67,381     $ 174     $ –     $ (1,440 )    $ 66,115  

 

(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 March 31

(Dollars in Millions)

   2019      2018  

Taxable

   $       650      $       561  

Non-taxable

     55        52  

Total interest income from investment securities

   $ 705      $ 613  
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 March 31

(Dollars in Millions)

   2019      2018  

Realized gains

   $         5      $         5  

Realized losses

     –        –  

Net realized gains (losses)

   $ 5      $ 5  

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

   $ 2      $ 1  
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 March 31, 2019:

 

    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

   $ –      $ –          $ 4,449      $ (92 )         $ 4,449      $ (92 ) 

Residential agency mortgage-backed securities

     1,632        (6 )           27,456        (563 )           29,088        (569 ) 

Other asset-backed securities

     –        –            1        –            1        –  

Obligations of foreign governments

     3        –                –        –                3        –  

Total held-to-maturity

   $ 1,635      $ (6 )             $ 31,906      $ (655 )             $ 33,541      $ (661 ) 

Available-for-sale

                         

U.S. Treasury and agencies

   $ 21      $ –          $ 17,478      $ (225 )         $ 17,499      $ (225 ) 

Residential agency mortgage-backed securities

     4,470        (18 )           24,097        (523 )           28,567        (541 ) 

Commercial agency mortgage-backed securities

     –        –            2        –            2        –  

Obligations of state and political subdivisions

     –        –                1,686        (34 )               1,686        (34 ) 

Total available-for-sale

   $ 4,491      $ (18 )             $ 43,263      $ (782 )             $ 47,754      $ (800 )