Securities

6 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Securities

Securities

The following tables summarize AFS and HTM securities:

June 30, 2019 (Dollars in millions)	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
AFS securities:
U.S. Treasury	$	1,120	$	1	$	9	$	1,112
GSE	246		3		2		247
Agency MBS	23,428		184		171		23,441
States and political subdivisions	568		31		12		587
Non-agency MBS	207		175		—		382
Other	33		—		—		33
Total AFS securities	$	25,602	$	394	$	194	$	25,802
HTM securities:
U.S. Treasury	$	1,099	$	6	$	—	$	1,105
GSE	2,199		27		—		2,226
Agency MBS	16,186		101		56		16,231
States and political subdivisions	3		—		—		3
Other	—		—		—		—
Total HTM securities	$	19,487	$	134	$	56	$	19,565
December 31, 2018 (Dollars in millions)	Amortized Cost		Gross Unrealized				Fair Value
			Gains		Losses
AFS securities:
U.S. Treasury	$	3,503	$	22	$	84	$	3,441
GSE	209		—		9		200
Agency MBS	20,927		15		787		20,155
States and political subdivisions	694		25		18		701
Non-agency MBS	321		184		—		505
Other	35		1		—		36
Total AFS securities	$	25,689	$	247	$	898	$	25,038
HTM securities:
U.S. Treasury	$	1,099	$	—	$	6	$	1,093
GSE	2,199		4		43		2,160
Agency MBS	17,248		27		487		16,788
States and political subdivisions	5		—		—		5
Other	1		—		—		1
Total HTM securities	$	20,552	$	31	$	536	$	20,047

Certain securities issued by FNMA and FHLMC exceeded 10% of shareholders' equity at June 30, 2019. The FNMA investments had total amortized cost and fair value of $13.6 billion. The FHLMC investments had total amortized cost and fair value of $9.5 billion.

The amortized cost and estimated fair value of the securities portfolio by contractual maturity are shown in the following table. The expected life of MBS may differ from contractual maturities because borrowers have the right to prepay the underlying mortgage loans.

	AFS				HTM
June 30, 2019 (Dollars in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	346	$	347	$	—	$	—
Due after one year through five years	1,011		1,002		3,300		3,332
Due after five years through ten years	278		280		563		564
Due after ten years	23,967		24,173		15,624		15,669
Total debt securities	$	25,602	$	25,802	$	19,487	$	19,565

The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position:

	Less than 12 months				12 months or more				Total
June 30, 2019 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
AFS securities:
U.S. Treasury	$	—	$	—	$	666	$	9	$	666	$	9
GSE	—		—		171		2		171		2
Agency MBS	544		1		10,219		170		10,763		171
States and political subdivisions	101		1		197		11		298		12
Total	$	645	$	2	$	11,253	$	192	$	11,898	$	194
HTM securities:
Agency MBS	384		3		4,461		53		4,845		56
Total	$	384	$	3	$	4,461	$	53	$	4,845	$	56
	Less than 12 months				12 months or more				Total
December 31, 2018 (Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
AFS securities:
U.S. Treasury	$	111	$	—	$	2,121	$	84	$	2,232	$	84
GSE	3		—		176		9		179		9
Agency MBS	322		2		18,478		785		18,800		787
States and political subdivisions	100		1		288		17		388		18
Total	$	536	$	3	$	21,063	$	895	$	21,599	$	898
HTM securities:
U.S. Treasury	$	698	$	3	$	395	$	3	$	1,093	$	6
GSE	—		—		1,749		43		1,749		43
Agency MBS	264		3		14,976		484		15,240		487
Total	$	962	$	6	$	17,120	$	530	$	18,082	$	536

Substantially all of the unrealized losses on the securities portfolio were the result of changes in market interest rates compared to the date the securities were acquired rather than the credit quality of the issuers or underlying loans.