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Investment Securities
 12 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
INVESTMENT SECURITIES
Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets. The methodology for estimating credit losses for available for sale debt securities requires us to estimate lifetime credit losses for all available-for-sale debt securities in an unrealized loss position. When estimating a security’s probability of default and the recovery rate, we assess the security’s credit indicators, including credit ratings. If our assessment indicates that an estimated credit loss exists, we determine the portion of the unrealized loss attributable to credit deterioration and record a reserve for the estimated credit loss through the Consolidated Statements of Income in Other loans Provision for credit losses. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. We had accrued interest on our available-for-sale debt securities totaling $12 million as of both December 31, 2022 and 2021, presented as Other assets on the Consolidated Balance Sheets.
Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in the Consolidated Statements of Income as Other, net expense.
Realized gains and losses are recognized upon disposition of the securities using the specific identification method and recorded in the Consolidated Statements of Income as Other, net expense.
Refer to Note 14 for a description of our methodology for determining the fair value of investment securities.
The following is a summary of investment securities as of December 31:
20222021
Description of Securities (Millions)
CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value		CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Estimated
Fair
Value
Available-for-sale debt securities:
State and municipal obligations$64 $— $(10)$54 $106 $5 $— $111 
U.S. Government agency obligations5 — — 5 6 — — 6 
U.S. Government treasury obligations3,859 — (73)3,786 1,680 25 (1)1,704 
Mortgage-backed securities (a)
13 — — 13 17 1 — 18 
Foreign government bonds and obligations633 — (1)632 630 — — 630 
Other (b)
47 — — 47 43 — — 43 
Equity securities (c)
50 — (9)41 66 17 (4)79 
Total$4,671 $— $(93)$4,578 $2,548 $48 $(5)$2,591 
(a)Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
(b)Represents investments in debt securities issued by Community Development Financial Institutions. Investments as of December 31, 2021 also include corporate debt securities.
(c)Equity securities comprise investments in common stock, exchange-traded funds and mutual funds.
The following table provides information about our available-for-sale debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2022 and 2021:
20222021
Less than 12 months12 months or moreLess than 12 months12 months or more
Description of Securities (Millions)
Estimated
Fair Value		Gross Unrealized
Losses		Estimated
Fair Value		Gross Unrealized
Losses		Estimated
Fair Value		Gross Unrealized
Losses		Estimated
Fair Value		Gross Unrealized
Losses
State and municipal obligations$52 $(10)$— $— $— $— $— $— 
U.S. Government treasury obligations3,710 (72)52 (1)477 (1)— — 
Foreign government bonds and obligations549 (1)— — — — — — 
Total$4,311 $(83)$52 $(1)$477 $(1)$— $— 
The gross unrealized losses on our available-for-sale debt securities are primarily attributable to an increase in the current benchmark interest rate. Overall, for the available-for-sale debt securities in gross unrealized loss positions, (i) we do not intend to sell the securities, (ii) it is more likely than not that we will not be required to sell the securities before recovery of the unrealized losses, and (iii) we expect that the contractual principal and interest will be received on the securities. We concluded that there was no credit loss attributable to the securities in an unrealized loss position for the periods presented.
The following table summarizes the gross unrealized losses for available-for-sale debt securities by ratio of fair value to amortized cost as of December 31, 2022 and 2021:
Less than 12 months12 months or moreTotal
Ratio of Fair Value to
Amortized Cost (Dollars in millions)
Number of
Securities		Estimated
Fair Value		Gross
Unrealized
Losses		Number of
Securities		Estimated
Fair Value		Gross
Unrealized
Losses		Number of
Securities		Estimated
Fair Value		Gross
Unrealized
Losses
2022:
90%–100%74$4,287 $(74)3$52 $(1)77$4,339 $(75)
Less than 90%1424 (9)—— — 1424 (9)
Total as of December 31, 202288$4,311 $(83)3$52 $(1)91$4,363 $(84)
2021:
90%–100%5$477 $(1)—$— $— 5$477 $(1)
Less than 90%—— — —— — —— — 
Total as of December 31, 20215$477 $(1)—$— $— 5$477 $(1)
Weighted average yields and contractual maturities for available-for-sale debt securities with stated maturities as of December 31, 2022 were as follows:
(Millions)Due within 1 yearDue after 1 year but within 5 yearsDue after 5 years but within 10 yearsDue after 10 yearsTotal
State and municipal obligations (a)
$— $— $21 $33 $54 
U.S. Government agency obligations (a)
— — 1 4 5 
U.S. Government treasury obligations2,668 1,109 9 — 3,786 
Mortgage-backed securities (a)(b)
— — — 13 13 
Foreign government bonds and obligations631 1 — — 632 
Other (c)
— 42 5 — 47 
Total Estimated Fair Value$3,299 $1,152 $36 $50 $4,537 
Total Cost$3,348 $1,177 $36 $60 $4,621 
Weighted average yield (d)
2.63 %3.19 %5.06 %2.85 %2.80 %
(a)The expected payments on state and municipal obligations, U.S. Government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.
(b)Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.
(c)Represents investments in debt securities issued by Community Development Financial Institutions.
(d)Average yields for investment securities have been calculated using the effective yield on the date of purchase. Yields on tax-exempt investment securities have been computed on a tax-equivalent basis using the U.S. federal statutory tax rate of 21 percent.