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Investment Securities
 6 Months Ended
Jun. 30, 2019
Investment Securities Disclosure [Abstract]  
Investment Securities INVESTMENT SECURITIES
Table 44: Investment Securities Summary
 
 
June 30, 2019
 
 
December 31, 2018
In millions
 
Amortized
Cost

 
Unrealized
 
Fair
Value

 
 
Amortized
Cost

 
Unrealized
 
Fair
Value

Gains

 
Losses

 
 
 
Gains

 
Losses

 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
18,828

 
$
371

 
$
(17
)
 
$
19,182

 
 
$
18,104

 
$
133

 
$
(137
)
 
$
18,100

Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
33,508

 
402

 
(90
)
 
33,820

 
 
29,413

 
104

 
(524
)
 
28,993

Non-agency
 
1,745

 
316

 
(4
)
 
2,057

 
 
1,924

 
300

 
(13
)
 
2,211

Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
2,568

 
47

 
(30
)
 
2,585

 
 
2,630

 
13

 
(66
)
 
2,577

Non-agency
 
2,977

 
34

 
(7
)
 
3,004

 
 
2,689

 
5

 
(37
)
 
2,657

Asset-backed
 
5,337

 
89

 
(7
)
 
5,419

 
 
4,933

 
59

 
(20
)
 
4,972

Other
 
3,169

 
122

 
(3
)
 
3,288

 
 
3,821

 
96

 
(38
)
 
3,879

Total securities available for sale
 
$
68,132

 
$
1,381

 
$
(158
)
 
$
69,355

 
 
$
63,514

 
$
710

 
$
(835
)
 
$
63,389

Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
767

 
$
53

 
 
 
$
820

 
 
$
758

 
$
28

 
$
(23
)
 
$
763

Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
15,503

 
181

 
$
(68
)
 
15,616

 
 
15,740

 
32

 
(358
)
 
15,414

Non-agency
 
146

 
6

 
 
 
152

 
 
152

 
2

 
 
 
154

Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
95

 
3

 
 
 
98

 
 
143

 
1

 
(1
)
 
143

Non-agency
 
464

 
6

 
 
 
470

 
 
488

 
1

 
(1
)
 
488

Asset-backed
 
170

 
 
 
 
 
170

 
 
182

 
1

 
 
 
183

Other
 
1,803

 
88

 
(18
)
 
1,873

 
 
1,849

 
53

 
(28
)
 
1,874

Total securities held to maturity
 
$
18,948

 
$
337

 
$
(86
)
 
$
19,199

 
 
$
19,312

 
$
118

 
$
(411
)
 
$
19,019



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 AOCI, unless credit-related. Securities held to maturity are carried at amortized cost. Investment securities at June 30, 2019 included $2.0 billion of net unsettled purchases which represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows.

At June 30, 2019, AOCI included pretax gains of $23 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 45 presents gross unrealized losses and fair value of debt securities at June 30, 2019 and December 31, 2018. 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 a portion of other than temporary impairment (OTTI) has been recognized in AOCI.
Table 45: Gross Unrealized Loss and Fair Value of Securities
 
 
Unrealized loss position less than 12 months
 
Unrealized loss position 12 months or more
 
Total
 
In millions
 
Unrealized
Loss

 
Fair
Value

 
Unrealized
Loss

 
Fair
Value

 
Unrealized
Loss

 
Fair
Value

 
June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
(6
)
 
$
2,151

 
$
(11
)
 
$
2,260

 
$
(17
)
 
$
4,411

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
(1
)
 
1,173

 
(89
)
 
7,578

 
(90
)
 
8,751

 
Non-agency
 
 
 
 
 
(4
)
 
253

 
(4
)
 
253

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
 
 
 
(30
)
 
1,192

 
(30
)
 
1,192

 
Non-agency
 
(1
)
 
313

 
(6
)
 
224

 
(7
)
 
537

 
Asset-backed
 
(4
)
 
668

 
(3
)
 
942

 
(7
)
 
1,610

 
Other
 
 
 
 
 
(3
)
 
768

 
(3
)
 
768

 
Total securities available for sale
 
$
(12
)
 
$
4,305

 
$
(146
)
 
$
13,217

 
$
(158
)
 
$
17,522

 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed - Agency
 
 
 
 
 
$
(68
)
 
$
5,619

 
$
(68
)
 
$
5,619

 
Other
 
$
(1
)
 
$
31

 
(17
)
 
130

 
(18
)
 
161

 
Total securities held to maturity
 
$
(1
)
 
$
31

 
$
(85
)
 
$
5,749

 
$
(86
)
 
$
5,780

 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
(21
)
 
$
4,125

 
$
(116
)
 
$
5,423

 
$
(137
)
 
$
9,548

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
(57
)
 
4,823

 
(467
)
 
13,830

 
(524
)
 
18,653

 
Non-agency
 
(1
)
 
74

 
(12
)
 
310

 
(13
)
 
384

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
(1
)
 
65

 
(65
)
 
1,516

 
(66
)
 
1,581

 
Non-agency
 
(23
)
 
1,809

 
(14
)
 
498

 
(37
)
 
2,307

 
Asset-backed
 
(11
)
 
2,149

 
(9
)
 
1,032

 
(20
)
 
3,181

 
Other
 
(12
)
 
868

 
(26
)
 
1,293

 
(38
)
 
2,161

 
Total securities available for sale
 
$
(126
)
 
$
13,913

 
$
(709
)
 
$
23,902

 
$
(835
)
 
$
37,815

 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
 
 
 
 
$
(23
)
 
$
446

 
$
(23
)
 
$
446

 
Residential mortgage-backed - Agency
 
$
(58
)
 
$
4,191

 
(300
)
 
7,921

 
(358
)
 
12,112

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
(1
)
 
88

 
 
 
 
 
(1
)
 
88

 
Non-agency
 
(1
)
 
152

 
 
 
 
 
(1
)
 
152

 
Other
 
(2
)
 
75

 
(26
)
 
123

 
(28
)
 
198

 
Total securities held to maturity
 
$
(62
)
 
$
4,506

 
$
(349
)
 
$
8,490

 
$
(411
)
 
$
12,996

 


Evaluating Investment Securities for OTTI

For the securities in Table 45, as of June 30, 2019 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 of our 2018 Form 10-K. For those securities on our Consolidated Balance Sheet at June 30, 2019, 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 the first six months of 2019 and 2018, the OTTI credit losses recognized in noninterest income and the OTTI noncredit losses recognized in AOCI 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 46: Gains (Losses) on Sales of Securities Available for Sale
Six months ended June 30
In millions
Gross Gains

Gross Losses

Net Gains (Losses)

Tax Expense (Benefit)

 
2019
$
47

$
(15
)
$
32

$
7

 
2018
$
42

$
(46
)
$
(4
)
$
(1
)
 

The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at June 30, 2019.
Table 47: Contractual Maturity of Securities
June 30, 2019
Dollars in millions
 
1 Year or Less

 
After 1 Year
through 5 Years

 
After 5 Years
through 10 Years

 
After 10
Years

 
Total

 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
1,273

 
$
13,501

 
$
3,232

 
$
822

 
$
18,828

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
1

 
67

 
853

 
32,587

 
33,508

 
Non-agency
 
 
 
 
 
 
 
1,745

 
1,745

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
 
626

 
268

 
1,674

 
2,568

 
Non-agency
 
 
 
 
 
337

 
2,640

 
2,977

 
Asset-backed
 
50

 
2,317

 
1,645

 
1,325

 
5,337

 
Other
 
436

 
1,461

 
422

 
850

 
3,169

 
Total securities available for sale
 
$
1,760

 
$
17,972

 
$
6,757

 
$
41,643

 
$
68,132

 
Fair value
 
$
1,764

 
$
18,145

 
$
6,925

 
$
42,521

 
$
69,355

 
Weighted-average yield, GAAP basis
 
2.38
%
 
2.30
%
 
2.95
%
 
3.32
%
 
2.99
%
 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
 
 
 
 
$
493

 
$
274

 
$
767

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
 
$
68

 
507

 
14,928

 
15,503

 
Non-agency
 
 
 
 
 
 
 
146

 
146

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
 
46

 
 
 
49

 
95

 
Non-agency
 
 
 
 
 
 
 
464

 
464

 
Asset-backed
 
 
 
6

 
100

 
64

 
170

 
Other
 
$
31

 
649

 
710

 
413

 
1,803

 
Total securities held to maturity
 
$
31

 
$
769

 
$
1,810

 
$
16,338

 
$
18,948

 
Fair value
 
$
31

 
$
795

 
$
1,900

 
$
16,473

 
$
19,199

 
Weighted-average yield, GAAP basis
 
3.92
%
 
3.89
%
 
3.43
%
 
3.30
%
 
3.34
%
 

Weighted-average yields are based on amortized cost with effective yields weighted for the contractual maturity of each security. At June 30, 2019, there were no securities of a single issuer, other than the Federal National Mortgage Association (FNMA), that exceeded 10% of Total shareholders’ equity. The FNMA investments had a total amortized cost of $40.7 billion and fair value of $41.1 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 48: Fair Value of Securities Pledged and Accepted as Collateral
In millions
June 30
2019

December 31
2018

Pledged to others
$
9,450

$
7,597

Accepted from others:
 
 
Permitted by contract or custom to sell or repledge (a)
$
2,677

$
6,905

Permitted amount repledged to others
$
686

$
923

(a)
Includes $2.0 billion and $6.0 billion in fair value of securities accepted from others to collateralize short-term investments in resale agreements that were not repledged at June 30, 2019 and December 31, 2018, respectively.

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.