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Securities
 12 Months Ended
Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Securities SECURITIES
The amortized cost and fair value of AFS debt securities for the current period are presented in the table below. There was no ACL in the AFS portfolio during 2020. Accrued interest receivable on AFS debt securities totaled $6.2 million at December 31, 2020 and is excluded from the estimate of credit losses and recorded separately in other assets in the Consolidated Balance Sheets. Accordingly, we have excluded accrued interest receivable from both the fair value and the amortized cost basis of AFS debt securities. 
TABLE 3.1
(in millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Debt Securities AFS:
December 31, 2020
U.S. Treasury$600 $— $— $600 
U.S. government agencies172 — — 172 
U.S. government-sponsored entities160 1 — 161 
Residential mortgage-backed securities:
Agency mortgage-backed securities959 35 — 994 
Agency collateralized mortgage obligations1,094 31 (1)1,124 
Commercial mortgage-backed securities361 17 — 378 
States of the U.S. and political subdivisions (municipals)32 — — 32 
Other debt securities2 — — 2 
Total debt securities AFS$3,380 $84 $(1)$3,463 
The amortized cost and fair value of debt securities AFS for December 31, 2019 are as follows:
TABLE 3.2
(in millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
 Value
Debt Securities AFS:
December 31, 2019
U.S. government agencies$152 $— $(1)$151 
U.S. government-sponsored entities225 1 — 226 
Residential mortgage-backed securities:
Agency mortgage-backed securities1,310 7 (3)1,314 
Agency collateralized mortgage obligations1,234 10 (4)1,240 
Commercial mortgage-backed securities341 6 (2)345 
States of the U.S. and political subdivisions (municipals)11 — — 11 
Other debt securities2 — — 2 
Total debt securities AFS$3,275 $24 $(10)$3,289 
The amortized cost and fair value of HTM debt securities for the current period are presented in the table below. The ACL for the HTM municipal bond portfolio was $0.04 million at December 31, 2020. Accrued interest receivable on HTM debt securities totaled $12.5 million at December 31, 2020 and is excluded from the estimate of credit losses and recorded separately in other assets in the Consolidated Balance Sheets.
TABLE 3.3
(in millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
 Value
Debt Securities HTM:
December 31, 2020
U.S. Treasury$1 $— $— $1 
U.S. government agencies1 — — 1 
U.S. government-sponsored entities120 1 — 121 
Residential mortgage-backed securities:
Agency mortgage-backed securities769 29 — 798 
Agency collateralized mortgage obligations562 17 — 579 
Commercial mortgage-backed securities307 10 — 317 
States of the U.S. and political subdivisions (municipals)1,108 48 — 1,156 
Total debt securities HTM$2,868 $105 $— $2,973 
The amortized cost and fair value of HTM debt securities for December 31, 2019 are as follows:
TABLE 3.4
(in millions)Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
 Value
Debt Securities HTM:
December 31, 2019
U.S. Treasury$1 $— $— $1 
U.S. government agencies1 — — 1 
U.S. government-sponsored entities175 — — 175 
Residential mortgage-backed securities:
Agency mortgage-backed securities949 8 (2)955 
Agency collateralized mortgage obligations721 5 (6)720 
Commercial mortgage-backed securities308 3 (2)309 
States of the U.S. and political subdivisions (municipals)1,120 26 (2)1,144 
Total debt securities HTM$3,275 $42 $(12)$3,305 

We did not have any sales during 2020 or 2019. There were no significant gross gains or gross losses realized on securities during the twelve months ended December 31, 2020, 2019 or 2018.
As of December 31, 2020, the amortized cost and fair value of debt securities, by contractual maturities, were as follows:
TABLE 3.5
Available for SaleHeld to Maturity
(in millions)Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due in one year or less$642 $642 $122 $123 
Due after one year but within five years113 114 20 20 
Due after five years but within ten years124 125 151 155 
Due after ten years87 86 937 981 
966 967 1,230 1,279 
Residential mortgage-backed securities:
Agency mortgage-backed securities959 994 769 798 
Agency collateralized mortgage obligations1,094 1,124 562 579 
Commercial mortgage-backed securities361 378 307 317 
Total debt securities$3,380 $3,463 $2,868 $2,973 
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 3.6
December 3120202019
(dollars in millions)
Securities pledged (carrying value):
To secure public deposits, trust deposits and for other purposes as required by law$5,384 $4,494 
As collateral for short-term borrowings402 285 
Securities pledged as a percent of total securities91.4 %72.8 %
At December 31, 2020, there were no holdings of securities of any one issuer, other than U.S. government and its agencies, in any amount greater than 10% of stockholders’ equity.
Following are summaries of the fair values of AFS debt securities in an unrealized loss position for which an ACL has not been recorded, segregated by security type and length of continuous loss position:
TABLE 3.7
Less than 12 Months12 Months or MoreTotal
(dollars in millions)#Fair
Value		Unrealized
Losses		#Fair
Value		Unrealized
Losses		#Fair
Value		Unrealized
Losses
Debt Securities AFS
December 31, 2020
U.S. government agencies1 $13 $— 16 $69 $— 17 $82 $— 
U.S. government-sponsored entities1 25 — — — — 1 25 — 
Residential mortgage-backed securities:
Agency collateralized mortgage obligations5 130 (1)— — — 5 130 (1)
Other debt securities— — — 1 2 — 1 2 — 
Total 7 $168 $(1)17 $71 $— 24 $239 $(1)
Less than 12 Months12 Months or MoreTotal
(dollars in millions)#Fair
Value		Unrealized
Losses		#Fair
Value		Unrealized
Losses		#Fair
Value		Unrealized
Losses
Debt Securities AFS
December 31, 2019
U.S. government agencies5 $48 $— 15 $61 $(1)20 $109 $(1)
U.S. government-sponsored entities— — — 6 130 — 6 130 — 
Residential mortgage-backed securities:
Agency mortgage-backed securities13 200 (1)24 314 (2)37 514 (3)
Agency collateralized mortgage obligations11 323 (1)32 205 (3)43 528 (4)
Non-agency collateralized mortgage obligations— — — — — — — — — 
Commercial mortgage-backed securities3 114 (2)— — — 3 114 (2)
States of the U.S. and political subdivisions (municipals)— — — — — — — — — 
Other debt securities— — — 1 2 — 1 2 — 
Total temporarily impaired debt securities AFS32 $685 $(4)78 $712 $(6)110 $1,397 $(10)

We evaluated the AFS debt securities that were in an unrealized loss position at December 31, 2020. Based on the credit ratings and implied government guarantee for these securities, we concluded the loss position is temporary and caused by the movement of interest rates. We do not intend to sell the AFS debt securities and it is not more likely than not that we will be required to sell the securities before the recovery of their amortized cost basis.

Credit Quality Indicators
We use credit ratings to help evaluate the credit quality of our HTM municipal bond portfolio. The ratings are updated quarterly with the last update on December 31, 2020. The remainder of the HTM portfolio is backed by the UST, Fannie Mae, Freddie
Mac, FHLB, Ginnie Mae, and the SBA and we have designated these securities as having zero expected credit loss, and therefore, are not subject to an estimate of expected credit loss under CECL.
Our municipal bond portfolio with a carrying amount of $1.1 billion as of December 31, 2020 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 65% of the securities are from municipalities located in the primary states within which we conduct business. The average holding size of the securities in the municipal bond portfolio is $3.5 million. In addition to the strong stand-alone ratings, 62% 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.
The credit analysis on the municipal bond portfolio is completed on each bond using:
•The bond’s credit rating;
•Credit enhancements that improve the bond’s credit rating, for example insurance; and
•Moody’s U.S. Bond Defaults and Recoveries, 1970-2019.
By using these components, we derive the expected credit loss on the general obligation bond portfolio. We further refine the expected credit loss by factoring in economic forecast data using our Commercial and Industrial Non-Manufacturing PD adjustment as derived through our assessment of the loan portfolio.
For the year-to-date period ending December 31, 2020, we had a provision expense of $0.004 million, with no charge-offs or recoveries. The ACL on the HTM portfolio as of December 31, 2020 was $0.04 million. No other securities portfolios had an ACL. At December 31, 2020, there were no securities that were past due or on non-accrual.