XML 21 R13.htm IDEA: XBRL DOCUMENT v3.24.1.u1
Investment securities
 3 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investment securities

3. Investment securities

The amortized cost and estimated fair value of investment securities were as follows:

(Dollars in millions)

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair Value

 

March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

7,818

 

 

$

—

 

 

$

99

 

 

$

7,719

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

1,355

 

 

 

1

 

 

 

13

 

 

 

1,343

 

Residential

 

 

3,053

 

 

 

—

 

 

 

143

 

 

 

2,910

 

Other debt securities

 

 

171

 

 

 

—

 

 

 

9

 

 

 

162

 

 

 

 

12,397

 

 

 

1

 

 

 

264

 

 

 

12,134

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

1,007

 

 

 

—

 

 

 

33

 

 

 

974

 

Obligations of states and political subdivisions

 

 

2,466

 

 

 

—

 

 

 

94

 

 

 

2,372

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

2,035

 

 

 

—

 

 

 

154

 

 

 

1,881

 

Residential

 

 

9,527

 

 

 

—

 

 

 

935

 

 

 

8,592

 

Privately issued

 

 

41

 

 

 

9

 

 

 

6

 

 

 

44

 

Other debt securities

 

 

2

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

 

15,078

 

 

 

9

 

 

 

1,222

 

 

 

13,865

 

Total debt securities

 

$

27,475

 

 

$

10

 

 

$

1,486

 

 

$

25,999

 

Equity and other securities:

 

 

 

 

 

 

 

 

 

 

 

 

Readily marketable equity — at fair value

 

$

351

 

 

$

8

 

 

$

3

 

 

$

356

 

Other — at cost

 

 

928

 

 

 

—

 

 

 

—

 

 

 

928

 

Total equity and other securities

 

$

1,279

 

 

$

8

 

 

$

3

 

 

$

1,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

7,818

 

 

$

—

 

 

$

113

 

 

$

7,705

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

425

 

 

 

—

 

 

 

9

 

 

 

416

 

Residential

 

 

2,272

 

 

 

—

 

 

 

118

 

 

 

2,154

 

Other debt securities

 

 

176

 

 

 

—

 

 

 

11

 

 

 

165

 

 

 

 

10,691

 

 

 

—

 

 

 

251

 

 

 

10,440

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

1,005

 

 

 

—

 

 

 

31

 

 

 

974

 

Obligations of states and political subdivisions

 

 

2,501

 

 

 

—

 

 

 

67

 

 

 

2,434

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

2,033

 

 

 

—

 

 

 

130

 

 

 

1,903

 

Residential

 

 

9,747

 

 

 

4

 

 

 

802

 

 

 

8,949

 

Privately issued

 

 

42

 

 

 

9

 

 

 

5

 

 

 

46

 

Other debt securities

 

 

2

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

 

15,330

 

 

 

13

 

 

 

1,035

 

 

 

14,308

 

Total debt securities

 

$

26,021

 

 

$

13

 

 

$

1,286

 

 

$

24,748

 

Equity and other securities:

 

 

 

 

 

 

 

 

 

 

 

 

Readily marketable equity — at fair value

 

$

266

 

 

$

5

 

 

$

3

 

 

$

268

 

Other — at cost

 

 

859

 

 

 

—

 

 

 

—

 

 

 

859

 

Total equity and other securities

 

$

1,125

 

 

$

5

 

 

$

3

 

 

$

1,127

 

 

3. Investment securities, continued

There were no significant gross realized gains or losses from sales of investment securities for the three-month periods ended March 31, 2024 and 2023. Unrealized losses on equity securities are included in "gain (loss) on bank investment securities" in the Consolidated Statement of Income.

At March 31, 2024, the amortized cost and estimated fair value of debt securities by contractual maturity were as follows:

(Dollars in millions)

 

Amortized
Cost

 

 

Estimated
Fair Value

 

Debt securities available for sale:

 

 

 

 

 

 

Due in one year or less

 

$

3,248

 

 

$

3,209

 

Due after one year through five years

 

 

4,691

 

 

 

4,628

 

Due after five years through ten years

 

 

50

 

 

 

44

 

Due after ten years

 

 

—

 

 

 

—

 

 

 

 

7,989

 

 

 

7,881

 

Mortgage-backed securities

 

 

4,408

 

 

 

4,253

 

 

 

$

12,397

 

 

$

12,134

 

Debt securities held to maturity:

 

 

 

 

 

 

Due in one year or less

 

$

588

 

 

$

575

 

Due after one year through five years

 

 

635

 

 

 

611

 

Due after five years through ten years

 

 

1,369

 

 

 

1,333

 

Due after ten years

 

 

883

 

 

 

829

 

 

 

 

3,475

 

 

 

3,348

 

Mortgage-backed securities

 

 

11,603

 

 

 

10,517

 

 

 

$

15,078

 

 

$

13,865

 

 

3. Investment securities, continued

A summary of investment securities that as of March 31, 2024 and December 31, 2023 had been in a continuous unrealized loss position for less than twelve months and those that had been in a continuous unrealized loss position for twelve months or longer follows:

 

 

Less Than 12 Months

 

 

12 Months or More

 

(Dollars in millions)

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

March 31, 2024

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

2,242

 

 

$

10

 

 

$

5,177

 

 

$

89

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

765

 

 

 

6

 

 

 

393

 

 

 

7

 

Residential

 

 

813

 

 

 

6

 

 

 

1,964

 

 

 

137

 

Other debt securities

 

 

—

 

 

 

—

 

 

 

156

 

 

 

9

 

 

 

 

3,820

 

 

 

22

 

 

 

7,690

 

 

 

242

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

49

 

 

 

1

 

 

 

925

 

 

 

32

 

Obligations of states and political subdivisions

 

 

43

 

 

 

—

 

 

 

2,284

 

 

 

94

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

172

 

 

 

9

 

 

 

1,709

 

 

 

145

 

Residential

 

 

1,133

 

 

 

12

 

 

 

7,459

 

 

 

923

 

Privately issued

 

 

—

 

 

 

—

 

 

 

33

 

 

 

6

 

 

 

 

1,397

 

 

 

22

 

 

 

12,410

 

 

 

1,200

 

Total

 

$

5,217

 

 

$

44

 

 

$

20,100

 

 

$

1,442

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2023

 

 

 

 

 

 

 

 

 

 

 

 

Investment securities available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

$

229

 

 

$

1

 

 

$

7,474

 

 

$

112

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

74

 

 

 

1

 

 

 

330

 

 

 

8

 

Residential

 

 

151

 

 

 

2

 

 

 

1,959

 

 

 

116

 

Other debt securities

 

 

6

 

 

 

—

 

 

 

154

 

 

 

11

 

 

 

 

460

 

 

 

4

 

 

 

9,917

 

 

 

247

 

Investment securities held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury and federal agencies

 

 

50

 

 

 

—

 

 

 

924

 

 

 

31

 

Obligations of states and political subdivisions

 

 

218

 

 

 

3

 

 

 

2,172

 

 

 

64

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

Government issued or guaranteed:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

328

 

 

 

9

 

 

 

1,575

 

 

 

121

 

Residential

 

 

955

 

 

 

11

 

 

 

7,139

 

 

 

791

 

Privately issued

 

 

—

 

 

 

—

 

 

 

34

 

 

 

5

 

 

 

 

1,551

 

 

 

23

 

 

 

11,844

 

 

 

1,012

 

Total

 

$

2,011

 

 

$

27

 

 

$

21,761

 

 

$

1,259

 

 

3. Investment securities, continued

The Company owned 4,088 individual debt securities with aggregate gross unrealized losses of $1.5 billion at March 31, 2024. Based on a review of each of the securities in the investment securities portfolio at March 31, 2024, the Company concluded that it expected to recover the amortized cost basis of its investment. As of March 31, 2024, the Company does not intend to sell, nor is it anticipated that it would be required to sell, any of its impaired investment securities at a loss. At March 31, 2024, the Company has not identified events or changes in circumstances which may have a significant adverse effect on the fair value of the $928 million of cost method equity securities.

The Company estimated no material allowance for credit losses for its investment securities classified as held-to-maturity at March 31, 2024 or December 31, 2023.

At March 31, 2024 and December 31, 2023, investment securities with carrying values of $9.6 billion (including $357 million related to repurchase transactions) and $8.2 billion (including $393 million related to repurchase transactions), respectively, were pledged to secure borrowings, lines of credit and governmental deposits.