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Investment Securities
 3 Months Ended
Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIESThe following table summarizes our available for sale and held to maturity portfolios by major security type:
Table 35: Investment Securities Summary (a)(b)
March 31, 2023December 31, 2022
In millionsAmortized
Cost (c)		UnrealizedFair
Value		Amortized
Cost (c)		UnrealizedFair
Value
GainsLossesGainsLosses
Securities Available for Sale
U.S. Treasury and government agencies$8,453 $14 $(720)$7,747 $9,196 $10 $(836)$8,370 
Residential mortgage-backed
Agency31,510 25 (2,840)28,695 32,114 13 (3,304)28,823 
Non-agency675 123 (11)787 697 131 (9)819 
Commercial mortgage-backed
Agency1,852 1 (148)1,705 1,845 (170)1,675 
Non-agency1,020  (65)955 1,325 (69)1,256 
Asset-backed393 28 (2)419 103 27 (1)129 
Other 3,074 40 (202)2,912 3,288 44 (245)3,087 
Total securities available for sale $46,977 $231 $(3,988)$43,220 $48,568 $225 $(4,634)$44,159 
Securities Held to Maturity
U.S. Treasury and government agencies$36,838 $32 $(1,162)$35,708 $36,571 $6 $(1,617)$34,960 
Residential mortgage-backed
Agency45,191 134 (2,455)42,870 45,271 74 (3,095)42,250 
Non-agency272 (19)253 276 (21)255 
Commercial mortgage-backed
Agency822 10 (19)813 848 4 (26)826 
Non-agency1,604 1 (31)1,574 1,667 (40)1,627 
Asset-backed6,884 13 (97)6,800 7,188 6 (140)7,054 
Other3,408 39 (40)3,407 3,354 25 (72)3,307 
Total securities held to maturity (d)$95,019 $229 $(3,823)$91,425 $95,175 $115 $(5,011)$90,279 
(a) At March 31, 2023, the accrued interest associated with our held to maturity and available for sale portfolios totaled $257 million and $135 million, respectively. The comparable amounts at December 31, 2022 were $282 million and $144 million, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet.
(b) Credit ratings represent a primary credit quality indicator used to monitor and manage credit risk. Of our total securities portfolio, 97% were rated AAA/AA at both March 31, 2023 and December 31, 2022.
(c) Amortized cost is presented net of allowance of $142 million for securities available for sale, primarily related to non-agency commercial mortgage-backed securities and $6 million for securities held to maturity at March 31, 2023. The comparable amounts at December 31, 2022 were $142 million and $7 million, respectively.
(d) Held to maturity securities transferred from available for sale are included in held to maturity at fair value at the time of the transfer. The amortized cost of held to maturity securities included net unrealized losses of $4.9 billion at March 31, 2023 related to securities transferred, which are offset in AOCI, net of tax.

The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Securities available for sale are carried at fair value with net unrealized gains and losses included in Total shareholders’ equity as AOCI, unless credit-related. Net unrealized gains and losses are determined by taking the difference between the fair value of a security and its amortized cost, net of any allowance. Securities held to maturity are carried at amortized cost, net of any allowance. Investment securities at March 31, 2023 included $30 million of net unsettled sales that represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows. The comparable amount for March 31, 2022 was $0.8 billion of net unsettled purchases.

We maintain the allowance for investment securities at levels that we believe to be appropriate as of the balance sheet date to absorb expected credit losses on our portfolio. At March 31, 2023, the allowance for investment securities was $148 million and primarily related to non-agency commercial mortgage-backed securities in the available for sale portfolio. The comparable amount at December 31, 2022 was $149 million. See Note 1 Accounting Policies in our 2022 Form 10-K for a discussion of the methodologies used to determine the allowance for investment securities.

At March 31, 2023, AOCI included pretax losses of $305 million from derivatives that hedged the purchase of investment securities classified as held to maturity. The losses will be accreted to interest income as an adjustment of yield on the securities.

Table 36 presents the gross unrealized losses and fair value of securities available for sale that do not have an associated allowance for investment securities at March 31, 2023 and December 31, 2022. These securities are segregated between investments that had 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. All securities included in the table have been evaluated to determine if a credit loss
exists. As part of that assessment, as of March 31, 2023, we concluded that we do not intend to sell and believe we will not be required to sell these securities prior to recovery of the amortized cost basis.
Table 36: Gross Unrealized Loss and Fair Value of Securities Available for Sale Without an Allowance for Credit Losses
Unrealized loss position
less than 12 months		Unrealized loss position
12 months or more		Total
In millionsUnrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value
March 31, 2023
U.S. Treasury and government agencies$(55)$1,316 $(665)$5,995 $(720)$7,311 
Residential mortgage-backed
Agency(302)6,475 (2,538)20,353 (2,840)26,828 
Non-agency(6)93 (3)30 (9)123 
Commercial mortgage-backed
Agency(20)406 (128)1,244 (148)1,650 
Non-agency(8)86 (46)756 (54)842 
Asset-backed(2)253 (1)11 (3)264 
Other (10)502 (161)1,825 (171)2,327 
Total securities available for sale$(403)$9,131 $(3,542)$30,214 $(3,945)$39,345 
December 31, 2022
U.S. Treasury and government agencies$(601)$5,868 $(235)$2,208 $(836)$8,076 
Residential mortgage-backed
Agency(1,744)19,036 (1,560)8,971 (3,304)28,007 
Non-agency(6)112 (2)17 (8)129 
Commercial mortgage-backed
Agency(125)1,283 (45)372 (170)1,655 
Non-agency(44)750 (18)394 (62)1,144 
Asset-backed(1)5 (1)5 
Other(96)1,418 (112)1,144 (208)2,562 
Total securities available for sale$(2,616)$28,467 $(1,973)$13,111 $(4,589)$41,578 
Information related to gross realized securities gains and losses from the sales of securities is set forth in the following table:

Table 37: Gains (Losses) on Sales of Securities Available for Sale (a)
Three months ended March 31
In millions		Gross GainsGross LossesNet Gains (Losses) Tax Expense (Benefit)
2022$11 $(15)$(4)$(1)
(a) Amounts for the three months ended March 31, 2023 were less than $1 million.
The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at March 31, 2023:
Table 38: Contractual Maturity of Debt Securities
March 31, 2023
Dollars in millions		1 Year or LessAfter 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$1,217 $3,400 $1,789 $2,047 $8,453 
Residential mortgage-backed
Agency1 97 3,598 27,814 31,510 
Non-agency8 667 675 
Commercial mortgage-backed
Agency64 443 924 421 1,852 
Non-agency120 100 800 1,020 
Asset-backed45 9 339 393 
Other 308 2,084 528 154 3,074 
Total securities available for sale at amortized cost$1,590 $6,189 $6,956 $32,242 $46,977 
Fair value$1,574 $5,847 $6,419 $29,380 $43,220 
Weighted-average yield, GAAP basis (a)2.23 %1.89 %2.30 %2.93 %2.23 %
Securities Held to Maturity
U.S. Treasury and government agencies$1,927 $30,359 $3,634 $918 $36,838 
Residential mortgage-backed
Agency 9 326 44,856 45,191 
Non-agency272 272 
Commercial mortgage-backed
Agency85 474 263 822 
Non-agency114  1,490 1,604 
Asset-backed7 2,145 2,132 2,600 6,884 
Other200 1,155 666 1,387 3,408 
Total securities held to maturity at amortized cost$2,134 $33,867 $7,232 $51,786 $95,019 
Fair value$2,107 $32,973 $6,986 $49,359 $91,425 
Weighted-average yield, GAAP basis (a)1.28 %1.39 %3.27 %2.90 %2.35 %
(a)Weighted-average yields are based on amortized cost with effective yields weighted for the contractual maturity of each security. Actual maturities and yields may differ as certain securities may be prepaid.
At March 31, 2023, there were no securities of a single issuer, other than FNMA and FHLMC, that exceeded 10% of Total shareholders’ equity. The FNMA and FHLMC investments had a total amortized cost of $39.2 billion and $33.0 billion and fair value of $36.6 billion and $31.0 billion, respectively.
The following table presents the fair value of securities that have been either pledged to or accepted from others to collateralize outstanding borrowings:
Table 39: Fair Value of Securities Pledged and Accepted as Collateral
In millionsMarch 31, 2023December 31, 2022
Pledged to others$27,586 $24,708 
Accepted from others:
Permitted by contract or custom to sell or repledge$1,357 $1,266 
Permitted amount repledged to others$1,357 $1,266 
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. See Note 12 Financial Derivatives for information related to securities pledged and accepted as collateral for derivatives.