Investment Securities (Tables)

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investment Securities Available-for-Sale

The amortized cost, gross unrealized holding gains and losses, and fair value of available-for-sale investment securities were as follows:

	September 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	$	22,029	$	541	$	(6	)	$	22,564	$	19,845	$	61	$	(67	)	$	19,839
Mortgage-backed securities
Residential agency		96,461		2,023		(22	)		98,462		93,903		557		(349	)		94,111
Commercial agency		4,250		183		(4	)		4,429		1,482		–		(29	)		1,453
Asset-backed securities
Collateralized debt obligations/Collateralized loan obligations		–		1		–			1		–		1		–			1
Other		203		4		–			207		375		7		–			382
Obligations of state and political subdivisions		7,784		574		(2	)		8,356		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	$	130,740	$	3,326	$	(34	)	$	134,032	$	122,117	$	944	$	(448	)	$	122,613

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)	2020		2019		2020		2019
Taxable		$528		$683		$1,741		$2,023
Non-taxable		58		51		167		161
Total interest income from investment securities		$586		$734		$1,908		$2,184

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)	2020		2019		2020			2019
Realized gains		$12		$25		$166			$66
Realized losses		–		–		(23	)		(19	)
Net realized gains (losses)		$12		$25		$143			$47
Income tax (benefit) on net realized gains (losses)		$3		$6		$36			$12

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

	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	$	1,322	$	(6	)	$	–	$	–		$	1,322	$	(6	)
Residential agency mortgage-backed securities		5,995		(20	)		1,195		(2	)		7,190		(22	)
Commercial agency mortgage-backed securities		1,170		(4	)		–					1,170		(4	)
Other asset-backed securities		–		–			2		–			2		–
Obligations of state and political subdivisions		255		(2	)		–		–			255		(2	)
Obligations of foreign governments		2		–			–		–			2		–
Corporate debt securities		–		–			4		–			4		–
Total investment securities	$	8,744	$	(32	)	$	1,201	$	(2	)	$	9,945	$	(34	)

Investment Securities

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 September 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	$	7,788	$	7,828		.4		1.41	%
Maturing after one year through five years		9,669		9,962		2.5		1.51
Maturing after five years through ten years		4,110		4,315		7.7		1.64
Maturing after ten years		462		459		12.8		1.64
Total	$	22,029	$	22,564		2.9		1.50	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	790	$	797		.7		1.74	%
Maturing after one year through five years		94,241		96,219		2.4		1.68
Maturing after five years through ten years		5,634		5,828		8.1		1.44
Maturing after ten years		46		47		11.5		1.23
Total	$	100,711	$	102,891		2.7		1.67	%
Asset-Backed Securities (a)
Maturing in one year or less	$	–	$	–		.4		2.69	%
Maturing after one year through five years		202		206		4.1		2.26
Maturing after five years through ten years		1		1		5.3		2.02
Maturing after ten years		–		1		14.4		2.41
Total	$	203	$	208		4.1		2.26	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	91	$	92		.6		4.61	%
Maturing after one year through five years		1,087		1,151		3.1		4.41
Maturing after five years through ten years		6,521		7,025		7.0		4.01
Maturing after ten years		85		88		11.0		3.00
Total	$	7,784	$	8,356		6.4		4.07	%
Other
Maturing in one year or less	$	13	$	13		.3		1.59	%
Maturing after one year through five years		–		–		–		–
Maturing after five years through ten years		–		–		–		–
Maturing after ten years		–		–		–		–
Total	$	13	$	13		.3		1.59	%
Total investment securities (d)	$	130,740	$	134,032		3.0		1.78	%

(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.