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INVESTMENT SECURITIES AND OTHER SECURITIES (Tables)
12 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Unrealized Gain (Loss) on Investments The following tables provide amortized cost, fair value, and gross unrealized gains and losses by investment category.
Unrealized
(dollar amounts in millions)Amortized
Cost (1)(2)
Gross
Gains
Gross
Losses
Fair Value
At December 31, 2023
Available-for-sale securities:
U.S. Treasury$2,855 $$— $2,856 
Federal agencies:
Residential CMO3,592 — (408)3,184 
Residential MBS13,155 (1,776)11,382 
Commercial MBS2,536 — (709)1,827 
Other agencies161 — (6)155 
Total U.S. Treasury, federal agency, and other agency securities22,299 (2,899)19,404 
Municipal securities3,536 (165)3,373 
Private-label CMO131 — (12)119 
Asset-backed securities387 — (31)356 
Corporate debt2,202 79 (238)2,043 
Other securities/Sovereign debt10 — — 10 
Total available-for-sale securities$28,565 $85 $(3,345)$25,305 
Held-to-maturity securities:
Federal agencies:
Residential CMO$4,770 $$(664)$4,112 
Residential MBS9,368 (1,145)8,224 
Commercial MBS1,509 — (224)1,285 
Other agencies101 — (6)95 
Total federal agency and other agency securities15,748 (2,039)13,716 
Municipal securities— — 
Total held-to-maturity securities$15,750 $$(2,039)$13,718 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock$169 $— $— $169 
Federal Reserve Bank stock507 — — 507 
Other non-marketable equity securities17 — — 17 
Other securities, at fair value
Mutual funds30 — — 30 
Equity securities— 
Total other securities$724 $$— $725 
(1)Amortized cost amounts exclude accrued interest receivable, which is recorded within accrued income and other receivables on the Consolidated Balance Sheets. At December 31, 2023, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $61 million and $36 million, respectively.
(2)Excluded from the amortized cost are portfolio level basis adjustments for securities designated in fair value hedges under the portfolio layer method. The basis adjustments totaled $619 million and represent a reduction to the amortized cost of the securities being hedged. The securities being hedged under the portfolio layer method are primarily Residential CMO and Residential MBS securities.
Unrealized
(dollar amounts in millions)
Amortized
Cost (1)(2)
Gross
Gains
Gross
Losses
Fair Value
At December 31, 2022
Available-for-sale securities:
U.S. Treasury$103 $— $— $103 
Federal agencies:
Residential CMO3,336 — (422)2,914 
Residential MBS14,349 (2,090)12,263 
Commercial MBS2,565 — (612)1,953 
Other agencies190 (9)182 
Total U.S. Treasury, federal agency, and other agency securities20,543 (3,133)17,415 
Municipal securities3,527 (238)3,290 
Private-label CMO146 — (18)128 
Asset-backed securities416 — (44)372 
Corporate debt2,467 132 (385)2,214 
Other securities/Sovereign debt— — 
Total available-for-sale securities$27,103 $138 $(3,818)$23,423 
Held-to-maturity securities:
Federal agencies:
Residential CMO$4,970 $$(714)$4,260 
Residential MBS10,295 — (1,375)8,920 
Commercial MBS1,652 — (204)1,448 
Other agencies133 — (9)124 
Total federal agency and other agency securities17,050 (2,302)14,752 
Municipal securities— — 
Total held-to-maturity securities$17,052 $$(2,302)$14,754 
Other securities, at cost:
Non-marketable equity securities:
Federal Home Loan Bank stock$312 $— $— $312 
Federal Reserve Bank stock500 — — 500 
Other non-marketable equity securities10 — — 10 
Other securities, at fair value
Mutual funds31 — — 31 
Equity securities— — 
Total other securities$854 $— $— $854 
(1)Amortized cost amounts exclude accrued interest receivable, which is recorded within accrued income and other receivables on the Consolidated Balance Sheets. At December 31, 2022, accrued interest receivable on available-for-sale securities and held-to-maturity securities totaled $64 million and $39 million, respectively.
(2)Excluded from the amortized cost are portfolio level basis adjustments for securities designated in fair value hedges under the portfolio layer method. The basis adjustments totaled $849 million and represent a reduction to the amortized cost of the securities being hedged. The securities being hedged under the portfolio layer method are primarily Residential CMO and Residential MBS securities.
Investments Classified by Contractual Maturity Date
The following table provides the amortized cost and fair value of securities by contractual maturity. Expected maturities may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without incurring penalties.
At December 31,
20232022
(dollar amounts in millions)
Amortized
Cost
Fair
Value
Amortized
Cost
Fair
Value
Available-for-sale securities:
Under 1 year$3,380 $3,372 $518 $511 
After 1 year through 5 years2,484 2,338 2,182 2,033 
After 5 years through 10 years2,392 2,255 3,106 2,814 
After 10 years20,309 17,340 21,297 18,065 
Total available-for-sale securities$28,565 $25,305 $27,103 $23,423 
Held-to-maturity securities:
Under 1 year$$$— $— 
After 1 year through 5 years48 46 72 68 
After 5 years through 10 years69 66 71 66 
After 10 years15,632 13,605 16,909 14,620 
Total held-to-maturity securities$15,750 $13,718 $17,052 $14,754 
Schedule of Unrealized Loss on Investments
The following tables provide detail on investment securities with unrealized losses aggregated by investment category and the length of time the individual securities have been in a continuous loss position.
Less than 12 MonthsOver 12 MonthsTotal
(dollar amounts in millions)Fair
Value
Gross Unrealized
Losses
Fair
Value
Gross Unrealized
Losses
Fair
Value
Gross Unrealized
Losses
At December 31, 2023
Available-for-sale securities:
Federal agencies:
Residential CMO$543 $(7)$2,641 $(401)$3,184 $(408)
Residential MBS207 (2)10,913 (1,774)11,120 (1,776)
Commercial MBS— — 1,827 (709)1,827 (709)
Other agencies— — 81 (6)81 (6)
Total federal agency and other agency securities750 (9)15,462 (2,890)16,212 (2,899)
Municipal securities625 (19)2,496 (146)3,121 (165)
Private-label CMO— — 99 (12)99 (12)
Asset-backed securities— — 281 (31)281 (31)
Corporate debt— — 2,043 (238)2,043 (238)
Total temporarily impaired available-for-sale securities$1,375 $(28)$20,381 $(3,317)$21,756 $(3,345)
Held-to-maturity securities:
Federal agencies:
Residential CMO$156 $(1)$3,542 $(663)$3,698 $(664)
Residential MBS— — 8,108 (1,145)8,108 (1,145)
Commercial MBS— — 1,285 (224)1,285 (224)
Other agencies— — 95 (6)95 (6)
Total federal agency and other agency securities156 (1)13,030 (2,038)13,186 (2,039)
Total temporarily impaired held-to-maturity securities$156 $(1)$13,030 $(2,038)$13,186 $(2,039)
Less than 12 MonthsOver 12 MonthsTotal
(dollar amounts in millions)Fair
Value
Gross Unrealized
Losses
Fair
Value
Gross Unrealized
Losses
Fair
Value
Gross Unrealized
Losses
At December 31, 2022
Available-for-sale securities:
Federal agencies:
Residential CMO$2,096 $(224)$818 $(198)$2,914 $(422)
Residential MBS2,455 (286)9,490 (1,804)11,945 (2,090)
Commercial MBS1,090 (249)863 (363)1,953 (612)
Other agencies40 (1)56 (8)96 (9)
Total federal agency and other agency securities5,681 (760)11,227 (2,373)16,908 (3,133)
Municipal securities2,298 (174)807 (64)3,105 (238)
Private-label CMO64 (13)43 (5)107 (18)
Asset-backed securities174 (10)199 (34)373 (44)
Corporate debt727 (105)1,487 (280)2,214 (385)
Total temporarily impaired available-for-sale securities$8,944 $(1,062)$13,763 $(2,756)$22,707 $(3,818)
Held-to-maturity securities:
Federal agencies:
Residential CMO$1,702 $(238)$2,283 $(476)$3,985 $(714)
Residential MBS4,151 (462)4,711 (913)8,862 (1,375)
Commercial MBS1,201 (154)247 (50)1,448 (204)
Other agencies124 (9)— — 124 (9)
Total federal agency and other agency securities7,178 (863)7,241 (1,439)14,419 (2,302)
Total temporarily impaired held-to-maturity securities$7,178 $(863)$7,241 $(1,439)$14,419 $(2,302)