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Investment Securities
 6 Months Ended
Jun. 30, 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 36: Investment Securities Summary (a)(b)
June 30, 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$7,863 $7 $(760)$7,110 $9,196 $10 $(836)$8,370 
Residential mortgage-backed
Agency30,867 6 (3,218)27,655 32,114 13 (3,304)28,823 
Non-agency642 133 (7)768 697 131 (9)819 
Commercial mortgage-backed
Agency1,759 1 (167)1,593 1,845 (170)1,675 
Non-agency1,014  (67)947 1,325 (69)1,256 
Asset-backed910 28 (4)934 103 27 (1)129 
Other 2,962 39 (221)2,780 3,288 44 (245)3,087 
Total securities available for sale $46,017 $214 $(4,444)$41,787 $48,568 $225 $(4,634)$44,159 
Securities Held to Maturity
U.S. Treasury and government agencies$36,985 $3 $(1,695)$35,293 $36,571 $6 $(1,617)$34,960 
Residential mortgage-backed
Agency44,278 60 (3,119)41,219 45,271 74 (3,095)42,250 
Non-agency269 (22)247 276 (21)255 
Commercial mortgage-backed
Agency839 3 (30)812 848 4 (26)826 
Non-agency1,549  (38)1,511 1,667 (40)1,627 
Asset-backed6,645 5 (112)6,538 7,188 6 (140)7,054 
Other3,309 27 (60)3,276 3,354 25 (72)3,307 
Total securities held to maturity (d)$93,874 $98 $(5,076)$88,896 $95,175 $115 $(5,011)$90,279 
(a) At June 30, 2023, the accrued interest associated with our held to maturity and available for sale portfolios totaled $288 million and $143 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 June 30, 2023 and December 31, 2022.
(c) Amortized cost is presented net of allowance of $141 million for securities available for sale, primarily related to non-agency commercial mortgage-backed securities and $7 million for securities held to maturity at June 30, 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 $4.7 billion at June 30, 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 June 30, 2023 included $0.2 billion of net unsettled purchases that represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows. The comparable amount for June 30, 2022 was $0.4 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 June 30, 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 June 30, 2023, AOCI included pretax losses of $301 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 37 presents the gross unrealized losses and fair value of securities available for sale that do not have an associated allowance for investment securities at June 30, 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 June 30, 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 37: 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
June 30, 2023
U.S. Treasury and government agencies$(9)$898 $(751)$5,983 $(760)$6,881 
Residential mortgage-backed
Agency(51)2,309 (3,167)24,700 (3,218)27,009 
Non-agency(1)46 (6)67 (7)113 
Commercial mortgage-backed
Agency(2)89 (165)1,485 (167)1,574 
Non-agency(57)808 (57)808 
Asset-backed(3)502 (1)12 (4)514 
Other (6)243 (180)2,022 (186)2,265 
Total securities available for sale$(72)$4,087 $(4,327)$35,077 $(4,399)$39,164 
December 31, 2022
U.S. Treasury and government agencies$(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 38: Gains (Losses) on Sales of Securities Available for Sale
Six months ended June 30
In millions		Gross GainsGross LossesNet Gains (Losses) Tax Expense (Benefit)
2023 $(2)$(2) 
2022$11 $(15)$(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, 2023:
Table 39: Contractual Maturity of Debt Securities
June 30, 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$1,230 $2,918 $1,724 $1,991 $7,863 
Residential mortgage-backed
Agency1 134 3,675 27,057 30,867 
Non-agency8 634 642 
Commercial mortgage-backed
Agency49 409 905 396 1,759 
Non-agency119 100 795 1,014 
Asset-backed249 106 555 910 
Other 307 2,008 495 152 2,962 
Total securities available for sale at amortized cost$1,587 $5,837 $7,013 $31,580 $46,017 
Fair value$1,550 $5,460 $6,385 $28,392 $41,787 
Weighted-average yield, GAAP basis (a)2.01 %2.17 %2.39 %2.98 %2.75 %
Securities Held to Maturity
U.S. Treasury and government agencies$2,075 $31,522 $2,477 $911 $36,985 
Residential mortgage-backed
Agency 7 333 43,938 44,278 
Non-agency269 269 
Commercial mortgage-backed
Agency133 430 276 839 
Non-agency43 49  1,457 1,549 
Asset-backed11 2,103 1,949 2,582 6,645 
Other230 1,116 603 1,360 3,309 
Total securities held to maturity at amortized cost$2,359 $34,930 $5,792 $50,793 $93,874 
Fair value$2,330 $33,471 $5,526 $47,569 $88,896 
Weighted-average yield, GAAP basis (a)1.30 %1.39 %3.65 %2.93 %2.36 %
(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 June 30, 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 $38.5 billion and $32.4 billion and fair value of $35.3 billion and $30.0 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 40: Fair Value of Securities Pledged and Accepted as Collateral
In millionsJune 30, 2023December 31, 2022
Pledged to others$27,347 $24,708 
Accepted from others:
Permitted by contract or custom to sell or repledge$1,160 $1,266 
Permitted amount repledged to others$1,160 $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.