XML 24 R13.htm IDEA: XBRL DOCUMENT v3.19.1
SECURITIES
 3 Months Ended
Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
The amortized cost and fair value of debt securities are as follows:
TABLE 3.1
 
(in millions)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
 Value
Debt Securities Available for Sale:
 
 
 
 
 
 
 
March 31, 2019
 
 
 
 
 
 
 
U.S. government agencies
$
182

 
$
—

 
$
(1
)
 
$
181

U.S. government-sponsored entities
301

 
—

 
(2
)
 
299

Residential mortgage-backed securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
1,396

 
1

 
(19
)
 
1,378

Agency collateralized mortgage obligations
1,305

 
8

 
(15
)
 
1,298

Commercial mortgage-backed securities
228

 
1

 
(1
)
 
228

States of the U.S. and political subdivisions
17

 
—

 
—

 
17

Other debt securities
2

 
—

 
—

 
2

Total debt securities available for sale
$
3,431

 
$
10

 
$
(38
)
 
$
3,403

December 31, 2018
 
 
 
 
 
 
 
U.S. government agencies
$
188

 
$
—

 
$
(1
)
 
$
187

U.S. government-sponsored entities
317

 
—

 
(4
)
 
313

Residential mortgage-backed securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
1,465

 
—

 
(36
)
 
1,429

Agency collateralized mortgage obligations
1,179

 
5

 
(23
)
 
1,161

Commercial mortgage-backed securities
229

 
—

 
(1
)
 
228

States of the U.S. and political subdivisions
21

 
—

 
—

 
21

Other debt securities
2

 
—

 
—

 
2

Total debt securities available for sale
$
3,401

 
$
5

 
$
(65
)
 
$
3,341


(in millions)
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
 Value
Debt Securities Held to Maturity:
 
 
 
 
 
 
 
March 31, 2019
 
 
 
 
 
 
 
U.S. Treasury
$
1

 
$
—

 
$
—

 
$
1

U.S. government agencies
2

 
—

 
—

 
2

U.S. government-sponsored entities
200

 
—

 
(3
)
 
197

Residential mortgage-backed securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
997

 
1

 
(11
)
 
987

Agency collateralized mortgage obligations
764

 
3

 
(16
)
 
751

Commercial mortgage-backed securities
104

 
2

 
(1
)
 
105

States of the U.S. and political subdivisions
1,103

 
9

 
(16
)
 
1,096

Total debt securities held to maturity
$
3,171

 
$
15

 
$
(47
)
 
$
3,139

December 31, 2018
 
 
 
 
 
 
 
U.S. Treasury
$
1

 
$
—

 
$
—

 
$
1

U.S. government agencies
2

 
—

 
—

 
2

U.S. government-sponsored entities
215

 
—

 
(4
)
 
211

Residential mortgage-backed securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
1,036

 
—

 
(26
)
 
1,010

Agency collateralized mortgage obligations
794

 
1

 
(24
)
 
771

Commercial mortgage-backed securities
126

 
1

 
(1
)
 
126

States of the U.S. and political subdivisions
1,080

 
3

 
(49
)
 
1,034

Total debt securities held to maturity
$
3,254

 
$
5

 
$
(104
)
 
$
3,155


 

There were no gross gains or gross losses realized on securities during the three months ended March 31, 2019 or 2018.
As of March 31, 2019, the amortized cost and fair value of debt securities, by contractual maturities, were as follows:
TABLE 3.2
 
Available for Sale
 
Held to Maturity
(in millions)
Amortized
Cost
 
Fair
Value
 
Amortized
Cost
 
Fair
Value
Due in one year or less
$
78

 
$
77

 
$
42

 
$
41

Due after one year but within five years
240

 
238

 
175

 
173

Due after five years but within ten years
78

 
78

 
111

 
112

Due after ten years
106

 
106

 
978

 
970

 
502

 
499

 
1,306

 
1,296

Residential mortgage-backed securities:
 
 
 
 
 
 
 
Agency mortgage-backed securities
1,396

 
1,378

 
997

 
987

Agency collateralized mortgage obligations
1,305

 
1,298

 
764

 
751

Commercial mortgage-backed securities
228

 
228

 
104

 
105

Total debt securities
$
3,431

 
$
3,403

 
$
3,171

 
$
3,139


Maturities may differ from contractual terms because borrowers may have the right to call or prepay obligations with or without penalties. Periodic payments are received on residential mortgage-backed securities based on the payment patterns of the underlying collateral.
Following is information relating to securities pledged:
TABLE 3.3
(dollars in millions)
March 31,
2019
 
December 31,
2018
Securities pledged (carrying value):
 
 
 
To secure public deposits, trust deposits and for other purposes as required by law
$
3,799

 
$
3,874

As collateral for short-term borrowings
255

 
279

Securities pledged as a percent of total securities
61.7
%
 
63.0
%

Following are summaries of the fair values and unrealized losses of temporarily-impaired debt securities, segregated by length of impairment. The unrealized losses reported below are generally due to the higher interest rate environment.

TABLE 3.4
 
Less than 12 Months
 
12 Months or More
 
Total
(dollars in millions)
#
 
Fair
 Value
 
Unrealized
Losses
 
#
 
Fair
 Value
 
Unrealized
Losses
 
#
 
Fair
 Value
 
Unrealized
Losses
Debt Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agencies
19

 
$
123

 
$
—

 
3

 
$
48

 
$
(1
)
 
22

 
$
171

 
$
(1
)
U.S. government-sponsored entities
—

 
—

 
—

 
11

 
249

 
(2
)
 
11

 
249

 
(2
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed securities
—

 
—

 
—

 
85

 
1,288

 
(19
)
 
85

 
1,288

 
(19
)
Agency collateralized mortgage obligations
—

 
—

 
—

 
48

 
613

 
(15
)
 
48

 
613

 
(15
)
Commercial mortgage-backed securities
2

 
73

 
(1
)
 
—

 
—

 
—

 
2

 
73

 
(1
)
States of the U.S. and political subdivisions
—

 
—

 
—

 
5

 
8

 
—

 
5

 
8

 
—

Other debt securities
—

 
—

 
—

 
1

 
2

 
—

 
1

 
2

 
—

Total temporarily impaired debt securities AFS
21

 
$
196

 
$
(1
)
 
153

 
$
2,208

 
$
(37
)
 
174

 
$
2,404

 
$
(38
)
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agencies
20

 
$
145

 
$
(1
)
 
—

 
$
—

 
$
—

 
20

 
$
145

 
$
(1
)
U.S. government-sponsored entities
1

 
36

 
—

 
11

 
227

 
(4
)
 
12

 
263

 
(4
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed securities
16

 
259

 
(4
)
 
71

 
1,159

 
(32
)
 
87

 
1,418

 
(36
)
Agency collateralized mortgage obligations
2

 
82

 
(1
)
 
47

 
590

 
(22
)
 
49

 
672

 
(23
)
Non-agency collateralized mortgage obligations
1

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
—

Commercial mortgage-backed securities
4

 
155

 
(1
)
 
—

 
—

 
—

 
4

 
155

 
(1
)
States of the U.S. and political subdivisions
2

 
2

 
—

 
6

 
10

 
—

 
8

 
12

 
—

Other debt securities
—

 
—

 
—

 
1

 
2

 
—

 
1

 
2

 
—

Total temporarily impaired debt securities AFS
46

 
$
679

 
$
(7
)
 
136

 
$
1,988

 
$
(58
)
 
182

 
$
2,667

 
$
(65
)
 
Less than 12 Months
 
12 Months or More
 
Total
(dollars in millions)
#
 
Fair
 Value
 
Unrealized
Losses
 
#
 
Fair
 Value
 
Unrealized
Losses
 
#
 
Fair
 Value
 
Unrealized
Losses
Debt Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government-sponsored entities
—

 
$
—

 
$
—

 
11

 
$
197

 
$
(3
)
 
11

 
$
197

 
$
(3
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed securities
—

 
—

 
—

 
62

 
819

 
(11
)
 
62

 
819

 
(11
)
Agency collateralized mortgage obligations
—

 
—

 
—

 
48

 
591

 
(16
)
 
48

 
591

 
(16
)
Commercial mortgage-backed securities
1

 
1

 
—

 
3

 
32

 
(1
)
 
4

 
33

 
(1
)
States of the U.S. and political subdivisions
12

 
57

 
(1
)
 
77

 
305

 
(15
)
 
89

 
362

 
(16
)
Total temporarily impaired debt securities HTM
13

 
$
58

 
$
(1
)
 
201

 
$
1,944

 
$
(46
)
 
214

 
$
2,002

 
$
(47
)
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government-sponsored entities
—

 
$
—

 
$
—

 
12

 
$
211

 
$
(4
)
 
12

 
$
211

 
$
(4
)
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency mortgage-backed securities
43

 
294

 
(4
)
 
47

 
694

 
(22
)
 
90

 
988

 
(26
)
Agency collateralized mortgage obligations
3

 
42

 
—

 
49

 
611

 
(24
)
 
52

 
653

 
(24
)
Commercial mortgage-backed securities
5

 
26

 
—

 
4

 
43

 
(1
)
 
9

 
69

 
(1
)
States of the U.S. and political subdivisions
159

 
590

 
(27
)
 
51

 
161

 
(22
)
 
210

 
751

 
(49
)
Total temporarily impaired debt securities HTM
210

 
$
952

 
$
(31
)
 
163

 
$
1,720

 
$
(73
)
 
373

 
$
2,672

 
$
(104
)

We do not intend to sell the debt securities and it is not more likely than not that we will be required to sell the securities before recovery of their amortized cost basis.
Other-Than-Temporary Impairment
We evaluate our investment securities portfolio for OTTI on a quarterly basis. Impairment is assessed at the individual security level. We consider an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. We did not recognize any OTTI losses on securities for the three months ended March 31, 2019 or 2018.
States of the U.S. and Political Subdivisions
Our municipal bond portfolio with a carrying amount of $1.1 billion as of March 31, 2019 is highly rated with an average rating of AA and 100% of the portfolio rated A or better, while 99% have stand-alone ratings of A or better. All of the securities in the municipal portfolio are general obligation bonds. Geographically, municipal bonds support our primary footprint as 66% of the securities are from municipalities located in our footprint. The average holding size of the securities in the municipal bond portfolio is $3.2 million. In addition to the strong stand-alone ratings, 64% of the municipalities have some formal credit enhancement insurance that strengthens the creditworthiness of their issue. Management reviews the credit profile of each issuer on a quarterly basis.