XML 75 R16.htm IDEA: XBRL DOCUMENT v3.22.2
Securities
 6 Months Ended
Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Securities
6. Securities

The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change.

 June 30, 2022December 31, 2021
Dollars in millions
Amortized
Cost (a)
Gross Unrealized GainsGross Unrealized Losses
Fair
Value
Amortized
Cost (b)
Gross Unrealized GainsGross Unrealized Losses
Fair
Value
SECURITIES AVAILABLE FOR SALE
U.S. Treasury, agencies, and corporations$10,080 $— $491 $9,589 $9,573 $— $101 $9,472 
Agency residential collateralized mortgage obligations
21,419 — 2,375 19,044 21,430 99 410 21,119 
Agency residential mortgage-backed securities4,891 2 514 4,379 5,137 37 52 5,122 
Agency commercial mortgage-backed securities 10,211 14 801 9,424 9,753 188 290 9,651 
Other securities— 1 — 1 — — — — 
Total securities available for sale $46,601 $17 $4,181 $42,437 $45,893 $324 $853 $45,364 
HELD-TO-MATURITY SECURITIES
Agency residential collateralized mortgage obligations
$3,708 $6 $100 $3,614 $2,196 $33 $— $2,229 
Agency residential mortgage-backed securities144 — 7 137 164 6 — 170 
Agency commercial mortgage-backed securities2,449 — 90 2,359 2,678 118 — 2,796 
Asset-backed securities (c)
1,870 — 114 1,756 2,485 — 31 2,454 
Other securities15 — 1 14 16 — — 16 
Total held-to-maturity securities$8,186 $6 312 $7,880 $7,539 $157 $31 $7,665 
(a)Amortized cost amounts exclude accrued interest receivable which is recorded within Other Assets on the balance sheet. At June 30, 2022, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $66 million and $17 million, respectively.
(b)Amortized cost amounts exclude accrued interest receivable which is recorded within Other Assets on the balance sheet. At December 31, 2021, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $59 million and $15 million, respectively.
(c)Includes $1.9 billion of securities as of June 30, 2022, and $2.5 billion of securities as of December 31, 2021, related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans.
The following table summarizes securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of June 30, 2022, and December 31, 2021.

 Duration of Unrealized Loss Position  
 Less than 12 Months12 Months or LongerTotal
Dollars in millions
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
June 30, 2022
Securities available for sale:
U.S Treasury, agencies, and corporations
$9,005 $468 $584 $23 $9,589 $491 
Agency residential collateralized mortgage obligations
14,387 1,460 4,563 915 18,950 2,375 
Agency residential mortgage-backed securities
3,053 334 1,014 180 4,067 514 
Agency commercial mortgage-backed securities
3,647 115 4,504 686 8,151 801 
Held-to-maturity securities:
Agency residential collateralized mortgage obligations
2,565 100 — — 2,565 100 
Agency residential mortgage-backed securities
137 7 — — 137 7 
Agency commercial mortgage-backed securities
2,317 90 — — 2,317 90 
Asset-backed securities
1,755 114 1 — 
(a)
1,756 114 
Other securities
7 — 
(a)
3 1 10 1 
Total securities in an unrealized loss position$36,873 $2,688 $10,669 $1,805 $47,542 $4,493 
December 31, 2021
Securities available for sale:
U.S. Treasury, agencies, and corporations
$9,078 $98 $243 $3 $9,321 $101 
Agency residential collateralized mortgage obligations12,603 315 1,255 95 13,858 410 
Agency residential mortgage-backed securities
3,793 49 

178 3 3,971 52 
Agency commercial mortgage-backed securities 1,645 75 3,834 215 5,479 290 
Held-to-maturity securities:
Agency residential collateralized mortgage obligations96 — 
(b)
— — 96 — 
Asset-backed securities
2,450 31 1 — 
(b)
2,451 31 
Other securities
15 — 
(b)
— — 15 — 
Total securities in an unrealized loss position$29,680 $568 $5,511 $316 $35,191 $884 
(a)At June 30, 2022, gross unrealized losses totaled less than $1 million for other securities held-to-maturity with a loss duration of less than 12 months and asset-backed securities held-to-maturity with a loss duration of 12 months or longer.
(b)At December 31, 2021, gross unrealized losses totaled less than $1 million for other securities held-to-maturity and agency residential collateralized mortgage obligations held-to-maturity with a loss duration of less than 12 months. At December 31, 2021, gross unrealized losses totaled less than $1 million for asset backed securities held-to-maturity with a loss duration greater than 12 months or longer.

Based on our evaluation at June 30, 2022, an allowance for credit losses has not been recorded nor have unrealized losses been recognized into income. The issuers of the securities are of high credit quality and have a history of no credit losses, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely attributed to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments.

At June 30, 2022, securities available for sale and held-to-maturity securities totaling $14.1 billion were pledged to secure securities sold under repurchase agreements, to secure public and trust deposits, to facilitate access to secured funding, and for other purposes required or permitted by law.

The following table shows our securities by remaining maturity. CMOs, other mortgage-backed securities, and asset-backed securities in the available for sale portfolio and held-to-maturity portfolio are presented based on their expected average lives. The remaining securities, in both the available-for-sale and held-to-maturity portfolios, are presented based on their remaining contractual maturity. Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties.

June 30, 2022Securities Available for SaleHeld to Maturity Securities
Dollars in millionsAmortized CostFair ValueAmortized CostFair Value
Due in one year or less$206 $204 $25 $25 
Due after one through five years16,827 15,967 4,525 4,323 
Due after five through ten years22,638 20,214 2,967 2,863 
Due after ten years6,930 6,052 669 669 
Total$46,601 $42,437 $8,186 $7,880