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Investment Securities
 12 Months Ended
Dec. 31, 2017
Investment Securities Disclosure [Abstract]  
Investment Securities
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.