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Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Available-for-Sale and Held-to-Maturity
The amortized cost, gross unrealized holding gains and losses, and fair value of
held-to-maturity
and
available-for-sale
investment securities were as follows:
 
 
 
September 30, 2022
 
  
December 31, 2021
 
(Dollars in Millions)
 
Amortized
Cost
 
  
Unrealized
Gains
 
  
Unrealized
Losses
 
 
Fair
Value
 
  
Amortized
Cost
 
  
Unrealized
Gains
 
  
Unrealized
Losses
 
 
Fair
Value
 
Held-to-maturity
 
      
  
      
  
      
 
    
 
  
      
  
      
  
      
 
      
U.S. Treasury and agencies
   $ 1,344      $ –      $ (56 )    $ 1,288      $ –      $ –      $ –     $ –  
Residential agency mortgage-backed securities
     84,230        –        (11,390 )      72,840        41,858        2        (48 )      41,812  
Total
held-to-maturity
   $ 85,574      $ –      $ (11,446 )    $ 74,128      $ 41,858      $ 2      $ (48 )    $ 41,812  
Available-for-sale
                                
 
                                   
U.S. Treasury and agencies
   $ 24,470      $ –      $ (2,884 )    $ 21,586      $ 36,648      $ 205      $ (244 )    $ 36,609  
Mortgage-backed securities
                                
 
                                   
Residential agency
     33,398        12        (2,753 )      30,657        76,761        665        (347 )      77,079  
Commercial agency
     8,746        –        (1,655 )      7,091        8,633        53        (201 )      8,485  
Asset-backed securities
     25        –        –       25        62        4        –       66  
Obligations of state and political subdivisions
     11,105        2        (1,949 )      9,158        10,130        607        (20 )      10,717  
Other
     6        –        –       6        7        –        –       7  
Total
available-for-sale
   $ 77,750      $ 14      $ (9,241 )    $ 68,523      $ 132,241      $ 1,534      $ (812 )    $ 132,963  
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)
 
        2022
 
  
        2021
 
 
        2022
 
  
        2021
 
Taxable
   $ 793      $ 539     $ 2,171      $ 1,548  
Non-taxable
     74        67       219        193  
Total interest income from investment securities
   $ 867      $ 606     $ 2,390      $ 1,741  
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)
 
        2022
 
  
        2021
 
 
        2022
 
 
        2021
 
Realized gains
   $ 1     $ 39     $ 78     $ 107  
Realized losses
     –       (19 )      (40 )     (19 ) 
Net realized gains
   $ 1     $ 20     $
 38     $ 88  
Income tax on net realized gains
   $ –     $ 5     $ 9     $ 22  
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
available-for-sale
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 September 30, 2022:
 
 
 
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
   $ 16,648      $ (1,870 )     $ 4,831              $ (1,014 )     $ 21,479      $ (2,884 ) 
Residential agency mortgage-backed securities
     24,355        (1,787 )       5,377        (966 )       29,732        (2,753 ) 
Commercial agency mortgage-backed securities
     2,992        (559 )       4,100        (1,096 )       7,092        (1,655 ) 
Obligations of state and political subdivisions
     8,006        (1,481 )       960        (468 )       8,966        (1,949 ) 
Other
     2        –        4        –        6        –  
Total
investment securities
   $ 52,003      $ (5,697 )     $ 15,272              $ (3,544 )     $ 67,275      $ (9,241 ) 
Investment Securities
The following table provides information about the amortized cost, fair value and yield by maturity date of the investment securities outstanding at September 30, 2022:
 
(Dollars in Millions)
 
Amortized
Cost
 
  
Fair
Value
 
  
Weighted-
Average
Maturity in
Years
 
  
Weighted-
Average
Yield (e)
 
Held-to-maturity
 
      
  
      
  
      
  
      
U.S. Treasury and Agencies
 
      
  
      
  
      
  
      
Maturing in one year or less
   $ –      $ –        –        – % 
Maturing after one year through five years
     1,344        1,288        3.5        2.85  
Maturing after five years through ten years
     –        –        –        –  
Maturing after ten years
     –        –        –        –  
Total
   $ 1,344      $ 1,288        3.5        2.85 % 
Mortgage-Backed Securities (a)
                                   
Maturing in one year or less
   $ –      $ –        –        – % 
Maturing after one year through five years
     –        –        –        –  
Maturing after five years through ten years
     50,750        44,735        9.3        2.06  
Maturing after ten years
     33,480        28,105        10.3        1.92  
Total
   $ 84,230      $ 72,840        9.7        2.01 % 
Total
held-to-maturity
(
b
)
   $ 85,574      $ 74,128        9.6        2.02 % 
Available-for-sale
                                   
U.S. Treasury and Agencies
                                   
Maturing in one year or less
   $ 1,172      $ 1,170        .2        2.05 % 
Maturing after one year through five years
     3,697        3,382        4.1        1.95  
Maturing after five years through ten years
     16,944        15,024        7.1        2.27  
Maturing after ten years
     2,657        2,010        11.6        1.99  
Total
   $ 24,470      $ 21,586        6.8        2.18 % 
Mortgage-Backed Securities (a)
                                   
Maturing in one year or less
   $ 34      $ 33        .8        2.84 % 
Maturing after one year through five years
     11,601        10,724        3.2        2.19  
Maturing after five years through ten years
     28,896        25,569        7.8        2.52  
Maturing after ten years
     1,613        1,422        11.3        2.77  
Total
   $ 42,144      $ 37,748        6.7        2.44 % 
Asset-Backed Securities
                                   
Maturing in one year or less
   $ –      $ –        –        – % 
Maturing after one year through five years
     –        –        –        –  
Maturing after five years through ten years
     25        25        6.1        5.52  
Maturing after ten years
     –        –        –        –  
Total
   $ 25      $ 25        6.1        5.52 % 
Obligations of State and Political
                                   
Subdivisions (c)
 
(d) 
                                   
Maturing in one year or less
   $ 102      $ 102        .3        4.73 % 
Maturing after one year through five years
     402        398        3.5        4.54  
Maturing after five years through ten years
     442        411        8.4        4.01  
Maturing after ten years
     10,159        8,247        16.7        3.60  
Total
   $ 11,105      $ 9,158        15.8        3.66 % 
Other
                                   
Maturing in one year or less
   $ –      $ –        –        – % 
Maturing after one year through five years
     6        6        2.7        1.99  
Maturing after five years through ten years
     –        –        –        –  
Maturing after ten years
     –        –        –        –  
Total
   $ 6      $ 6        2.7        1.99 % 
Total
available-for-sale
(
b
)
   $ 77,750      $ 68,523        8.0        2.53 % 
 
(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)
The weighted-average maturity of total
held-to-maturity
investment securities was 7.4 years at December 31, 2021, with a corresponding weighted-average yield of 1.45 percent. The weighted-average maturity of total
available-for-sale
investment securities was 5.5 years at December 31, 2021, with a corresponding weighted-average yield of 1.73 percent.
(c)
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.
(d)
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.
(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, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from
available-for-sale
to
held-to-maturity.