| Investment Securities |
Table 47: Investment Securities Summary | | | | | | | | | | | | | | | | | | In millions | | Amortized Cost |
| | Unrealized | | Fair Value |
| Gains |
| | Losses |
| | December 31, 2017 | | | | | | | | | Securities Available for Sale | | | | | | | | | Debt securities | | | | | | | | | U.S. Treasury and government agencies | | $ | 14,432 |
| | $ | 173 |
| | $ | (84 | ) | | $ | 14,521 |
| Residential mortgage-backed | | | | | | | | | Agency | | 25,534 |
| | 121 |
| | (249 | ) | | 25,406 |
| Non-agency | | 2,443 |
| | 336 |
| | (21 | ) | | 2,758 |
| Commercial mortgage-backed | | | | | | | | | Agency | | 1,960 |
| | 2 |
| | (58 | ) | | 1,904 |
| Non-agency | | 2,603 |
| | 19 |
| | (9 | ) | | 2,613 |
| Asset-backed | | 5,331 |
| | 74 |
| | (8 | ) | | 5,397 |
| Other debt | | 4,322 |
| | 129 |
| | (17 | ) | | 4,434 |
| Total debt securities | | 56,625 |
| | 854 |
| | (446 | ) | | 57,033 |
| Other | | 587 |
| | | | (2 | ) | | 585 |
| Total securities available for sale | | $ | 57,212 |
| | $ | 854 |
| | $ | (448 | ) | | $ | 57,618 |
| Securities Held to Maturity | | | | | | | | | Debt securities | | | | | | | | | U.S. Treasury and government agencies | | $ | 741 |
| | $ | 37 |
| | $ | (13 | ) | | $ | 765 |
| Residential mortgage-backed | | | | | |
| | | Agency | | 14,503 |
| | 77 |
| | (139 | ) | | 14,441 |
| Non-agency | | 167 |
| | 7 |
| |
| | 174 |
| Commercial mortgage-backed | | | | | |
| | | Agency | | 407 |
| | 4 |
| | | | 411 |
| Non-agency | | 538 |
| | 10 |
| |
| | 548 |
| Asset-backed | | 200 |
| | 1 |
| |
|
| | 201 |
| Other debt | | 1,957 |
| | 88 |
| | (20 | ) | | 2,025 |
| Total securities held to maturity | | $ | 18,513 |
| | $ | 224 |
| | $ | (172 | ) | | $ | 18,565 |
| December 31, 2016 | | | | | | | | | Securities Available for Sale | | | | | | | | | Debt securities | | | | | | | | | U.S. Treasury and government agencies | | $ | 13,100 |
| | $ | 151 |
| | $ | (77 | ) | | $ | 13,174 |
| Residential mortgage-backed | | | | | | | | | Agency | | 26,245 |
| | 170 |
| | (287 | ) | | 26,128 |
| Non-agency | | 3,191 |
| | 227 |
| | (52 | ) | | 3,366 |
| Commercial mortgage-backed | | | | | | | | | Agency | | 2,150 |
| | 3 |
| | (34 | ) | | 2,119 |
| Non-agency | | 4,023 |
| | 29 |
| | (27 | ) | | 4,025 |
| Asset-backed | | 5,938 |
| | 52 |
| | (22 | ) | | 5,968 |
| Other debt | | 4,656 |
| | 104 |
| | (37 | ) | | 4,723 |
| Total debt securities | | 59,303 |
| | 736 |
| | (536 | ) | | 59,503 |
| Other | | 603 |
| | | | (2 | ) | | 601 |
| Total securities available for sale | | $ | 59,906 |
| | $ | 736 |
| | $ | (538 | ) | | $ | 60,104 |
| Securities Held to Maturity | | | | | | | | | Debt securities | | | | | | | | | U.S. Treasury and government agencies | | $ | 527 |
| | $ | 35 |
| | $ | (22 | ) | | $ | 540 |
| Residential mortgage-backed | | | | | | | | | Agency | | 11,074 |
| | 68 |
| | (161 | ) | | 10,981 |
| Non-agency | | 191 |
| | 7 |
| | | | 198 |
| Commercial mortgage-backed | | | | | | | | | Agency | | 903 |
| | 24 |
| | | | 927 |
| Non-agency | | 567 |
| | 10 |
| | | | 577 |
| Asset-backed | | 558 |
| | | | (2 | ) | | 556 |
| Other debt | | 2,023 |
| | 76 |
| | (12 | ) | | 2,087 |
| Total securities held to maturity | | $ | 15,843 |
| | $ | 220 |
| | $ | (197 | ) | | $ | 15,866 |
|
The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Net unrealized gains and losses in the securities available for sale portfolio are included in Shareholders’ equity as Accumulated other comprehensive income or loss, net of tax, unless credit-related. Securities held to maturity are carried at amortized cost. At December 31, 2017, Accumulated other comprehensive income included pretax gains of $54 million from derivatives that hedged the purchase of investment securities classified as held to maturity. The gains will be accreted into interest income as an adjustment of yield on the securities. Table 48 presents gross unrealized losses and fair value of debt securities at December 31, 2017 and December 31, 2016. The securities are segregated between investments that have been in a continuous unrealized loss position for less than twelve months and twelve months or more based on the point in time that the fair value declined below the amortized cost basis. The table includes debt securities where the noncredit portion of OTTI has been recognized in Accumulated other comprehensive income (loss). Table 48: Gross Unrealized Loss and Fair Value of Debt Securities | | | | | | | | | | | | | | | | | | | | | | | | | | In millions | | Unrealized loss position less than 12 months | | Unrealized loss position 12 months or more | | Total | | | Unrealized Loss |
| | Fair Value |
| | Unrealized Loss |
| | Fair Value |
| | Unrealized Loss |
| | Fair Value |
| December 31, 2017 | | | | | | | | | | | | | Securities Available for Sale | | | | | | | | | | | | | Debt securities | | | | | | | | | | | | | U.S. Treasury and government agencies | | $ | (42 | ) | | $ | 6,099 |
| | $ | (42 | ) | | $ | 1,465 |
| | $ | (84 | ) | | $ | 7,564 |
| Residential mortgage-backed | | | | | | | | | | | | | Agency | | (47 | ) | | 8,151 |
| | (202 | ) | | 9,954 |
| | (249 | ) | | 18,105 |
| Non-agency | |
|
| |
|
| | (21 | ) | | 383 |
| | (21 | ) | | 383 |
| Commercial mortgage-backed | | | | | | | | | | | | | Agency | | (11 | ) | | 524 |
| | (47 | ) | | 1,302 |
| | (58 | ) | | 1,826 |
| Non-agency | | (3 | ) | | 400 |
| | (6 | ) | | 333 |
| | (9 | ) | | 733 |
| Asset-backed | | (4 | ) | | 1,697 |
| | (4 | ) | | 462 |
| | (8 | ) | | 2,159 |
| Other debt | | (3 | ) | | 966 |
| | (14 | ) | | 798 |
| | (17 | ) | | 1,764 |
| Total debt securities available for sale | | $ | (110 | ) | | $ | 17,837 |
| | $ | (336 | ) | | $ | 14,697 |
| | $ | (446 | ) | | $ | 32,534 |
| Securities Held to Maturity | | | | | | | | | | | | | Debt securities | | | | | | | | | | | | | U.S. Treasury and government agencies | | $ | (3 | ) | | $ | 195 |
| | $ | (10 | ) | | $ | 255 |
| | $ | (13 | ) | | $ | 450 |
| Residential mortgage-backed | | | | | | | | | | | | | Agency | | (10 | ) | | 3,167 |
| | (129 | ) | | 6,168 |
| | (139 | ) | | 9,335 |
| Other debt | | (12 | ) | | 83 |
| | (8 | ) | | 67 |
| | (20 | ) | | 150 |
| Total debt securities held to maturity | | $ | (25 | ) | | $ | 3,445 |
| | $ | (147 | ) | | $ | 6,490 |
| | $ | (172 | ) | | $ | 9,935 |
| December 31, 2016 | | | | | | | | | | | | | Securities Available for Sale | | | | | | | | | | | | | Debt securities | | | | | | | | | | | | | U.S. Treasury and government agencies | | $ | (57 | ) | | $ | 3,108 |
| | $ | (20 | ) | | $ | 2,028 |
| | $ | (77 | ) | | $ | 5,136 |
| Residential mortgage-backed | | | | | | | | | | | | | Agency | | (267 | ) | | 16,942 |
| | (20 | ) | | 922 |
| | (287 | ) | | 17,864 |
| Non-agency | | (1 | ) | | 109 |
| | (51 | ) | | 1,119 |
| | (52 | ) | | 1,228 |
| Commercial mortgage-backed | | | | | | | | | | | | | Agency | | (33 | ) | | 1,577 |
| | (1 | ) | | 86 |
| | (34 | ) | | 1,663 |
| Non-agency | | (14 | ) | | 880 |
| | (13 | ) | | 987 |
| | (27 | ) | | 1,867 |
| Asset-backed | | (5 | ) | | 1,317 |
| | (17 | ) | | 902 |
| | (22 | ) | | 2,219 |
| Other debt | | (33 | ) | | 1,827 |
| | (4 | ) | | 243 |
| | (37 | ) | | 2,070 |
| Total debt securities available for sale | | $ | (410 | ) | | $ | 25,760 |
| | $ | (126 | ) | | $ | 6,287 |
| | $ | (536 | ) | | $ | 32,047 |
| Securities Held to Maturity | | | | | | | | | | | | | Debt securities | | | | | | | | | | | | | U.S. Treasury and government agencies | | $ | (22 | ) | | $ | 238 |
| | | | | | $ | (22 | ) | | $ | 238 |
| Residential mortgage-backed | | | | | | | | | | | | | Agency | | (153 | ) | | 8,041 |
| | $ | (8 | ) | | $ | 161 |
| | (161 | ) | | 8,202 |
| Asset-backed | |
|
| |
|
| | (2 | ) | | 451 |
| | (2 | ) | | 451 |
| Other debt | | (12 | ) | | 146 |
| | | | 1 |
| | (12 | ) | | 147 |
| Total debt securities held to maturity | | $ | (187 | ) | | $ | 8,425 |
| | $ | (10 | ) | | $ | 613 |
| | $ | (197 | ) | | $ | 9,038 |
|
Evaluating Investment Securities for Other-than-Temporary Impairments For the securities in Table 48, as of December 31, 2017 we do not intend to sell and believe we will not be required to sell the securities prior to recovery of the amortized cost basis. On at least a quarterly basis, we review all debt securities that are in an unrealized loss position for OTTI, as discussed in Note 1 Accounting Policies. For those securities on our balance sheet at December 31, 2017, where during our quarterly security-level impairment assessments we determined losses represented OTTI, we have recorded cumulative credit losses of $1.1 billion in earnings and accordingly have reduced the amortized cost of our securities. The majority of these cumulative impairment charges related to non-agency residential mortgage-backed and asset-backed securities rated BB or lower. During 2017, 2016 and 2015, the OTTI credit losses recognized in noninterest income and the OTTI noncredit losses recognized in accumulated other comprehensive income (loss), net of tax, on securities were not significant. Information relating to gross realized securities gains and losses from the sales of securities is set forth in the following table. Table 49: Gains (Losses) on Sales of Securities Available for Sale | | | | | | | | | | | | | | | | | In millions | Proceeds |
| Gross Gains |
| Gross Losses |
| Net Gains |
| Tax Expense |
| Year ended December 31 | | | | | | 2017 | $ | 5,722 |
| $ | 38 |
| $ | (31 | ) | $ | 7 |
| $ | 2 |
| 2016 | $ | 3,489 |
| $ | 24 |
| $ | (8 | ) | $ | 16 |
| $ | 6 |
| 2015 | $ | 6,829 |
| $ | 56 |
| $ | (13 | ) | $ | 43 |
| $ | 15 |
|
The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at December 31, 2017. Table 50: Contractual Maturity of Debt Securities | | | | | | | | | | | | | | | | | | | | | | December 31, 2017 | | 1 Year or
Less |
| | After 1 Year through 5 Years |
| | After 5 Years through 10 Years |
| | After 10 Years |
| | Total |
| Dollars in millions | | | | | | Securities Available for Sale | | | | | | | | | | | U.S. Treasury and government agencies | | $ | 85 |
| | $ | 8,780 |
| | $ | 4,449 |
| | $ | 1,118 |
| | $ | 14,432 |
| Residential mortgage-backed | | | | | | | | | | | Agency | | 3 |
| | 45 |
| | 561 |
| | 24,925 |
| | 25,534 |
| Non-agency | |
| | | | | | 2,443 |
| | 2,443 |
| Commercial mortgage-backed | | | | | | | | | | | Agency | | 2 |
| | 259 |
| | 624 |
| | 1,075 |
| | 1,960 |
| Non-agency | |
| |
|
| | 451 |
| | 2,152 |
| | 2,603 |
| Asset-backed | | 13 |
| | 1,846 |
| | 1,897 |
| | 1,575 |
| | 5,331 |
| Other debt | | 521 |
| | 2,032 |
| | 670 |
| | 1,099 |
| | 4,322 |
| Total debt securities available for sale | | $ | 624 |
| | $ | 12,962 |
| | $ | 8,652 |
| | $ | 34,387 |
| | $ | 56,625 |
| Fair value | | $ | 626 |
| | $ | 12,958 |
| | $ | 8,695 |
| | $ | 34,754 |
| | $ | 57,033 |
| Weighted-average yield, GAAP basis | | 2.73 | % | | 2.12 | % | | 2.29 | % | | 2.97 | % | | 2.67 | % | Securities Held to Maturity | | | | | | | | | | | U.S. Treasury and government agencies | | | | | | $ | 377 |
| | $ | 364 |
| | $ | 741 |
| Residential mortgage-backed | | | | | | | | | | | Agency | | | | $ | 67 |
| | 346 |
| | 14,090 |
| | 14,503 |
| Non-agency | | | | | | | | 167 |
| | 167 |
| Commercial mortgage-backed | | | | | | | | | | | Agency | | $ | 172 |
| | 177 |
| | 4 |
| | 54 |
| | 407 |
| Non-agency | | | | | | | | 538 |
| | 538 |
| Asset-backed | | | |
|
| | 114 |
| | 86 |
| | 200 |
| Other debt | | 49 |
| | 394 |
| | 854 |
| | 660 |
| | 1,957 |
| Total debt securities held to maturity | | $ | 221 |
| | $ | 638 |
| | $ | 1,695 |
| | $ | 15,959 |
| | $ | 18,513 |
| Fair value | | $ | 221 |
| | $ | 654 |
| | $ | 1,751 |
| | $ | 15,939 |
| | $ | 18,565 |
| Weighted-average yield, GAAP basis | | 3.58 | % | | 3.92 | % | | 3.44 | % | | 3.21 | % | | 3.26 | % |
Weighted-average yields are based on historical cost with effective yields weighted for the contractual maturity of each security. At December 31, 2017, there were no securities of a single issuer, other than FNMA, that exceeded 10% of Total shareholders’ equity. The FNMA investments had a total amortized cost of $31.0 billion and fair value of $30.8 billion. The following table presents the fair value of securities that have been either pledged to or accepted from others to collateralize outstanding borrowings. Table 51: Fair Value of Securities Pledged and Accepted as Collateral | | | | | | | | | In millions | December 31
2017 |
| | December 31
2016 |
| Pledged to others | $ | 8,175 |
| | $ | 9,493 |
| Accepted from others: | | | | Permitted by contract or custom to sell or repledge | $ | 1,152 |
| | $ | 912 |
| Permitted amount repledged to others | $ | 1,097 |
| | $ | 799 |
|
The securities pledged to others include positions held in our portfolio of investment securities, trading securities, and securities accepted as collateral from others that we are permitted by contract or custom to sell or repledge, and were used to secure public and trust deposits, repurchase agreements, and for other purposes. |