Investment Securities (Tables)

6 Months Ended

Jun. 30, 2020

The amortized cost, gross unrealized holding gains and losses, and fair value of

available-for-sale

investment securities were as follows:


	June 30, 2020									December 31, 2019
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Treasury and agencies	$	19,397	$	581	$	–		$	19,978	$	19,845	$	61	$	(67	)	$	19,839
Mortgage-backed securities
Residential agency		94,193		2,347		(38	)		96,502		93,903		557		(349	)		94,111
Commercial agency		3,079		184		–			3,263		1,482		–		(29	)		1,453
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		1		–			1		–		1		–			1
Other		361		6		–			367		375		7		–			382
Obligations of state and political subdivisions		7,470		527		(1	)		7,996		6,499		318		(3	)		6,814
Obligations of foreign governments		9		–		–			9		9		–		–			9
Corporate debt securities		4		–		–			4		4		–		–			4
Total available-for-sale	$	124,513	$	3,646	$	(39	)	$	128,120	$	122,117	$	944	$	(448	)	$	122,613

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)	2020		2019		2020		2019
Taxable	$	573	$	690	$	1,213	$	1,340
Non-taxable		57		55		109		110
Total interest income from investment securities	$	630	$	745	$	1,322	$	1,450

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)	2020		2019			2020			2019
Realized gains	$	81	$	36		$	154		$	41
Realized losses		–		(19	)		(23	)		(19	)
Net realized gains (losses)	$	81	$	17		$	131		$	22
Income tax (benefit) on net realized gains (losses)	$	20	$	4		$	33		$	6


	Less Than 12 Months					12 Months or Greater					Total
(Dollars in Millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and agencies	$	143	$	–		$	–	$	–		$	143	$	–
Residential agency mortgage-backed securities		2,821		(18	)		4,985		(20	)		7,806		(38	)
Other asset-backed securities		–		–			2		–			2		–
Obligations of state and political subdivisions		80		(1	)		–		–			80		(1	)
Obligations of foreign governments		2		–			–		–			2		–
Corporate debt securities		4		–			–		–			4		–
Total investment securities	$	3,050	$	(19	)	$	4,987	$	(20	)	$	8,037	$	(39	)

The following table provides information about the amortized cost, fair value and yield by maturity date of the

available-for-sale

investment securities outstanding at June 30, 2020:


(Dollars in Millions)	Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield (e)
U.S. Treasury and Agencies
Maturing in one year or less	$	5,453	$	5,486		.5		1.64	%
Maturing after one year through five years		9,834		10,167		2.2		1.69
Maturing after five years through ten years		4,044		4,259		6.6		1.51
Maturing after ten years		66		66		10.8		1.78
Total	$	19,397	$	19,978		2.7		1.64	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	1,194	$	1,215		.8		2.33	%
Maturing after one year through five years		91,418		93,694		2.6		1.98
Maturing after five years through ten years		4,601		4,797		7.9		1.56
Maturing after ten years		59		59		12.4		1.22
Total	$	97,272	$	99,765		2.8		1.97	%
Asset-Backed Securities (a)
Maturing in one year or less	$	–	$	–		.7		2.69	%
Maturing after one year through five years		360		366		2.9		3.59
Maturing after five years through ten years		1		1		5.7		1.00
Maturing after ten years		–		1		14.6		2.41
Total	$	361	$	368		2.9		3.58	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	67	$	68		.4		5.64	%
Maturing after one year through five years		863		904		2.7		4.37
Maturing after five years through ten years		6,263		6,736		6.9		4.15
Maturing after ten years		277		288		10.2		3.16
Total	$	7,470	$	7,996		6.5		4.15	%
Other
Maturing in one year or less	$	13	$	13		.6		1.65	%
Maturing after one year through five years		–		–		–		–
Maturing after five years through ten years		–		–		–		–
Maturing after ten years		–		–		–		–
Total	$	13	$	13		.6		1.65	%
Total investment securities (d)	$	124,513	$	128,120		3.0		2.05	%

(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 total available-for-sale investment securities was 4.2 years at December 31, 2019, with a corresponding weighted-average yield of 2.38 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 investment securities are computed based on amortized cost balances.