Investment Securities (Tables)

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Table 4

Investment Securities


	Available-for-Sale									Held-to-Maturity
At June 30, 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	$	2,034	$	2,027		.6		1.60	%	$	225	$	225		.1		1.74	%
Maturing after one year through five years		14,920		14,919		2.5		1.73			3,902		3,897		3.8		1.71
Maturing after five years through ten years		220		225		6.2		2.84			521		527		6.3		2.44
Maturing after ten years		–		–		–		–			–		–		–		–

Total	$	17,174	$	17,171		2.3		1.73	%	$	4,648	$	4,649		3.9		1.79	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	29	$	29		.7		3.09	%	$	199	$	198		.7		2.20	%
Maturing after one year through five years		33,720		33,772		3.5		2.74			33,145		33,133		3.6		2.56
Maturing after five years through ten years		9,560		9,487		5.8		2.62			8,136		8,111		5.5		2.66
Maturing after ten years		1,841		1,847		11.9		3.42			229		231		12.1		3.37

Total	$	45,150	$	45,135		4.4		2.75	%	$	41,709	$	41,673		4.0		2.58	%
Asset-Backed Securities (a)
Maturing in one year or less	$	–	$	–		–		–	%	$	–	$	–		–		–	%
Maturing after one year through five years		383		388		3.3		3.70			4		6		3.4		3.12
Maturing after five years through ten years		–		–		–		–			1		–		6.3		3.21
Maturing after ten years		–		–		–		–			–		1		15.6		3.02

Total	$	383	$	388		3.3		3.70	%	$	5	$	7		3.7		3.13	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	189	$	190		.2		5.67	%	$	–	$	–		.5		7.34	%
Maturing after one year through five years		686		710		3.4		4.55			–		–		3.1		6.40
Maturing after five years through ten years		5,202		5,406		7.5		4.32			4		4		6.7		1.89
Maturing after ten years		196		197		22.3		4.30			–		–		–		–

Total	$	6,273	$	6,503		7.3		4.39	%	$	4	$	4		6.2		2.40	%
Other
Maturing in one year or less	$	–	$	–		–		–	%	$	17	$	17		.5		3.30	%
Maturing after one year through five years		–		–		–		–			–		–		–		–
Maturing after five years through ten years		–		–		–		–			–		–		–		–
Maturing after ten years		–		–		–		–			–		–		–		–

Total	$	–	$	–		–		–	%	$	17	$	17		.5		3.30	%
Total investment securities (d)	$	68,980	$	69,197		4.1		2.65	%	$	46,383	$	46,350		4.0		2.50	%

(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.


	June 30, 2019					December 31, 2018
(Dollars in Millions)	Amortized Cost		Percent of Total			Amortized Cost		Percent of Total
U.S. Treasury and agencies	$	21,822		18.9	%	$	24,706		21.8	%
Mortgage-backed securities		86,859		75.3			81,464		71.8
Asset-backed securities		388		.3			402		.4
Obligations of state and political subdivisions		6,277		5.5			6,842		6.0
Other		17		–			17		–
Total investment securities	$	115,363		100.0	%	$	113,431		100.0	%

Investment Securities Available-for-Sale and 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:


	June 30, 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	$	4,648	$	22	$	–	$	(21	)	$	4,649	$	5,102	$	2	$	–	$	(143	)	$	4,961
Residential agency mortgage-backed securities		41,709		205		–		(241	)		41,673		40,920		45		–		(994	)		39,971
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		1		–		–			1		–		1		–		–			1
Other		5		1		–		–			6		5		2		–		–			7
Obligations of state and political subdivisions		4		–		–		–			4		6		1		–		–			7
Obligations of foreign governments		9		–		–		–			9		9		–		–		–			9
Other		8		–		–		–			8		8		–		–		–			8
Total held-to-maturity	$	46,383	$	229	$	–	$	(262	)	$	46,350	$	46,050	$	51	$	–	$	(1,137	)	$	44,964
Available-for-sale
U.S. Treasury and agencies	$	17,174	$	54	$	–	$	(57	)	$	17,171	$	19,604	$	11	$	–	$	(358	)	$	19,257
Mortgage-backed securities
Residential agency		45,149		266		–		(281	)		45,134		40,542		120		–		(910	)		39,752
Commercial agency		1		–		–		–			1		2		–		–		–			2
Other asset-backed securities		383		5		–		–			388		397		6		–		–			403
Obligations of state and political subdivisions		6,273		233		–		(3	)		6,503		6,836		37		–		(172	)		6,701
Total available-for-sale	$	68,980	$	558	$	–	$	(341	)	$	69,197	$	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 June 30				Six Months Ended June 30
(Dollars in Millions)	2019		2018		2019		2018
Taxable	$	690	$	597	$	1,340	$	1,158
Non-taxable		55		56		110		108
Total interest income from investment securities	$	745	$	653	$	1,450	$	1,266

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 June 30					Six Months Ended June 30
(Dollars in Millions)	2019			2018		2019			2018
Realized gains	$	36		$	10	$	41		$	15
Realized losses		(19	)		–		(19	)		–
Net realized gains (losses)	$	17		$	10	$	22		$	15
Income tax (benefit) on net realized gains (losses)	$	4		$	3	$	6		$	4

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 June 30, 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	$	–	$	–		$	2,872	$	(21	)	$	2,872	$	(21	)
Residential agency mortgage-backed securities		1,268		(4	)		20,159		(237	)		21,427		(241	)
Other asset-backed securities		–		–			2		–			2		–
Obligations of foreign governments		3		–			–		–			3		–
Other		8		–			–		–			8		–
Total held-to-maturity	$	1,279	$	(4	)	$	23,033	$	(258	)	$	24,312	$	(262	)
Available-for-sale
U.S. Treasury and agencies	$	–	$	–		$	9,571	$	(57	)	$	9,571	$	(57	)
Residential agency mortgage-backed securities		2,949		(9	)		19,154		(272	)		22,103		(281	)
Obligations of state and political subdivisions		68		–			305		(3	)		373		(3	)
Total available-for-sale	$	3,017	$	(9	)	$	29,030	$	(332	)	$	32,047	$	(341	)