Investment Securities (Tables)

3 Months Ended

Mar. 31, 2021

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

available-for-sale

investment securities were as follows:


	March 31, 2021									December 31, 2020
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
U.S. Treasury and agencies	$	24,401	$	288	$	(372	)	$	24,317	$	21,954	$	462	$	(25	)	$	22,391
Mortgage-backed securities
Residential agency		116,629		1,230		(1,683	)		116,176		98,031		1,950		(13	)		99,968
Commercial agency		6,254		53		(221	)		6,086		5,251		170		(15	)		5,406
Asset-backed securities		197		5		–			202		200		5		–			205
Obligations of state and political subdivisions		8,687		546		(18	)		9,215		8,166		695		–			8,861
Other		7		–		–			7		9		–		–			9
Total available-for-sale	$	156,175	$	2,122	$	(2,294	)	$	156,003	$	133,611	$	3,282	$	(53	)	$	136,840

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)	2021		2020
Taxable	$	455	$	640
Non-taxable		62		52
Total interest income from investment securities	$	517	$	692

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)	2021		2020
Realized gains	$	25	$	73
Realized losses		–		(23	)
Net realized gains	$	25	$	50
Income tax on net realized gains	$	6	$	13


	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	$	9,519	$	(372	)	$	–	$	–		$	9,519	$	(372	)
Residential agency mortgage-backed securities		59,916		(1,678	)		150		(5	)		60,066		(1,683	)
Commercial agency mortgage-backed securities		4,130		(221	)		6		–			4,136		(221	)
Asset-backed securities		–		–			2		–			2		–
Obligations of state and political subdivisions		1,037		(18	)		–		–			1,037		(18	)
Total investment securities	$	74,602	$	(2,289	)	$	158	$	(5	)	$	74,760	$	(2,294	)

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 March 31, 2021:


(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	$	4,264	$	4,292		.4		1.54	%
Maturing after one year through five years		11,534		11,694		2.6		1.15
Maturing after five years through ten years		7,364		7,150		8.1		1.33
Maturing after ten years		1,239		1,181		13.0		1.78
Total	$	24,401	$	24,317		4.4		1.31	%
Mortgage-Backed Securities (a)
Maturing in one year or less	$	110	$	112		.6		2.07	%
Maturing after one year through five years		47,936		49,021		3.6		1.40
Maturing after five years through ten years		74,785		73,077		7.8		1.46
Maturing after ten years		52		52		11.9		1.13
Total	$	122,883	$	122,262		6.1		1.44	%
Asset-Backed Securities (a)
Maturing in one year or less	$	–	$	–		.9		2.69	%
Maturing after one year through five years		3		4		2.9		1.74
Maturing after five years through ten years		194		197		6.0		1.08
Maturing after ten years		–		1		13.6		2.41
Total	$	197	$	202		5.9		1.09	%
Obligations of State and Political Subdivisions (b) (c)
Maturing in one year or less	$	178	$	182		.7		4.21	%
Maturing after one year through five years		1,451		1,539		3.5		4.39
Maturing after five years through ten years		6,624		7,066		6.9		3.86
Maturing after ten years		434		428		17.4		2.57
Total	$	8,687	$	9,215		6.7		3.89	%
Other
Maturing in one year or less	$	7	$	7		.1		2.07	%
Maturing after one year through five years		–		–		–		–
Maturing after five years through ten years		–		–		–		–
Maturing after ten years		–		–		–		–
Total	$	7	$	7		.1		2.07	%
Total investment securities (d)	$	156,175	$	156,003		5.9		1.55	%

(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 3.4 years at December 31, 2020, with a corresponding weighted-average yield of 1.61 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.