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Securities (Tables)
 6 Months Ended
Jun. 30, 2016
Securities  
Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities
At June 30, 2016 and December 31, 2015, the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale are presented below.
 
 
June 30, 2016
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Asset Liability Management securities:
 
 
 
 
 
 
 


U.S. Treasury
 
$
155

 
$
4

 
$
—

 
$
159

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
6,009

 
47

 
4

 
6,052

Privately issued
 
245

 
3

 
—

 
248

Privately issued - commercial mortgage-backed securities
 
1,474

 
54

 
1

 
1,527

Collateralized loan obligations
 
3,267

 
1

 
30

 
3,238

Other
 
7

 
—

 
—

 
7

Asset Liability Management securities
 
11,157

 
109

 
35

 
11,231

Other debt securities:
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
1,547

 
50

 
22

 
1,575

Other
 
32

 
1

 
—

 
33

Equity securities
 
6

 
1

 
—

 
7

Total securities available for sale
 
$
12,742

 
$
161

 
$
57

 
$
12,846

 
 
December 31, 2015
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Asset Liability Management securities:
 
 
 
 
 
 
 
 
U.S. Treasury
 
$
596

 
$
1

 
$
3

 
$
594

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
7,298

 
1

 
98

 
7,201

Privately issued
 
150

 
2

 
1

 
151

Privately issued - commercial mortgage-backed securities
 
1,566

 
5

 
25

 
1,546

Collateralized loan obligations
 
3,266

 
1

 
34

 
3,233

Other
 
7

 
—

 
—

 
7

Asset Liability Management securities
 
12,883

 
10

 
161

 
12,732

Other debt securities:
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
1,549

 
45

 
22

 
1,572

Other
 
32

 
—

 
—

 
32

Equity securities
 
6

 
2

 
—

 
8

Total securities available for sale
 
$
14,470

 
$
57

 
$
183

 
$
14,344
Proceeds from Sales of Securities Available for Sale and Gross Realized Gains and Losses
The gross realized gains and losses from sales of available for sale securities for the three and six months ended June 30, 2016 and 2015 are shown below. The specific identification method is used to calculate realized gains and losses on sales.
 
 
For the Three Months Ended June 30,
 
For the Six Months Ended June 30,
(Dollars in millions)
 
2016
 
2015
 
2016
 
2015
Gross realized gains
 
$
19

 
$
6

 
$
32

 
$
11

Gross realized losses
 
—

 
1

 
—

 
1
Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values
At June 30, 2016 and December 31, 2015, the amortized cost, gross unrealized gains and losses recognized in OCI, carrying amount, gross unrealized gains and losses not recognized in OCI, and fair values of securities held to maturity are presented below. Management has asserted the positive intent and ability to hold these securities to maturity.
 
 
June 30, 2016
 
 
 
 
Recognized in OCI
 
 
 
Not Recognized in OCI
 
 
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Carrying
Amount
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury
 
$
490

 
$
—

 
$
—

 
$
490

 
$
15

 
$
—

 
$
505

U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
 
8,170

 
3

 
47

 
8,126

 
204

 
1

 
8,329

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
1,711

 
—

 
68

 
1,643

 
96

 
—

 
1,739

Total securities held to maturity
 
$
10,371

 
$
3

 
$
115

 
$
10,259

 
$
315

 
$
1

 
$
10,573


 
 
December 31, 2015
 
 
 
 
Recognized in OCI
 
 
 
Not Recognized in OCI
 
 
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Carrying
Amount
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
U.S. Treasury
 
$
489

 
$
—

 
$
—

 
$
489

 
$
4

 
$
—

 
$
493

U.S. government-sponsored agencies
 
220

 
—

 
—

 
220

 
—

 
4

 
216

U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
 
7,831

 
4

 
53

 
7,782

 
49

 
41

 
7,790

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
1,740

 
—

 
73

 
1,667

 
46

 
5

 
1,708

Total securities held to maturity
 
$
10,280

 
$
4

 
$
126

 
$
10,158

 
$
99

 
$
50

 
$
10,207
Securities Available for Sale  
Securities  
Securities in Unrealized Loss Position
The Company’s securities available for sale with a continuous unrealized loss position at June 30, 2016 and December 31, 2015 are shown below, identified for periods less than 12 months and 12 months or more.
 
 
June 30, 2016
 
 
Less than 12 months
 
12 months or more
 
Total
(Dollars in millions)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Asset Liability Management securities:
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
$
104

 
$
1

 
$
873

 
$
3

 
$
977

 
$
4

Privately issued
 
11

 
—

 
38

 
—

 
49

 
—

Privately issued - commercial mortgage-backed securities
 
10

 
—

 
58

 
1

 
68

 
1

Collateralized loan obligations
 
1,652

 
8

 
1,315

 
22

 
2,967

 
30

Other
 
—

 
—

 
1

 
—

 
1

 
—

Asset Liability Management securities
 
1,777

 
9

 
2,285

 
26

 
4,062

 
35

Other debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
248

 
7

 
483

 
15

 
731

 
22

Equity securities
 
—

 
—

 
5

 
—

 
5

 
—

Total securities available for sale
 
$
2,025

 
$
16

 
$
2,773

 
$
41

 
$
4,798

 
$
57


 
 
December 31, 2015
 
 
Less than 12 months
 
12 months or more
 
Total
(Dollars in millions)
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
Asset Liability Management securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
 
$
295

 
$
3

 
$
—

 
$
—

 
$
295

 
$
3

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
4,692

 
57

 
2,278

 
41

 
6,970

 
98

Privately issued
 
39

 
—

 
38

 
1

 
77

 
1

Privately issued - commercial mortgage-backed securities
 
1,154

 
24

 
65

 
1

 
1,219

 
25

Collateralized loan obligations
 
1,497

 
11

 
1,290

 
23

 
2,787

 
34

Asset Liability Management securities
 
7,677

 
95

 
3,671

 
66

 
11,348

 
161

Other debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
157

 
4

 
686

 
18

 
843

 
22

Other
 
2

 
—

 
—

 
—

 
2

 
—

Equity securities
 
—

 
—

 
5

 
—

 
5

 
—

Total securities available for sale
 
$
7,836

 
$
99

 
$
4,362

 
$
84

 
$
12,198

 
$
183
Debt Securities by Contractual Maturity
The fair value of debt securities available for sale by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.
 
 
June 30, 2016
(Dollars in millions)
 
One Year
or Less
 
Over One Year
Through
Five Years
 
Over Five Years
Through
Ten Years
 
Over
Ten Years
 
Total
Fair Value
Asset Liability Management securities:
 
 
 
 
 
 
 
 
 
 
   U.S. Treasury
 
$
—

 
$
—

 
$
159

 
$
—

 
$
159

   Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
   U.S. government agency and government-sponsored agencies
 
—

 
14

 
351

 
5,687

 
6,052

     Privately issued
 
—

 
3

 
—

 
245

 
248

Privately issued - commercial mortgage-backed securities
 
—

 
—

 
37

 
1,490

 
1,527

   Collateralized loan obligations
 
—

 
16

 
1,883

 
1,339

 
3,238

   Other
 
—

 
2

 
5

 
—

 
7

    Asset Liability Management securities
 
—

 
35

 
2,435

 
8,761

 
11,231

Other debt securities:
 
 
 
 
 
 
 
 
 
 
   Direct bank purchase bonds
 
6

 
344

 
770

 
455

 
1,575

   Other
 
—

 
1

 
—

 
32

 
33

      Total debt securities available for sale
 
$
6

 
$
380

 
$
3,205

 
$
9,248

 
$
12,839
Securities Held to Maturity  
Securities  
Securities in Unrealized Loss Position
The Company’s securities held to maturity with a continuous unrealized loss position at June 30, 2016 and December 31, 2015 are shown below, separately for periods less than 12 months and 12 months or more.
 
 
June 30, 2016
 
 
Less than 12 months
 
12 months or more
 
Total
 
 
 
 
Unrealized Losses
 
 
 
Unrealized Losses
 
 
 
Unrealized Losses
(Dollars in millions)
 
Fair
Value
 
Recognized
in OCI
 
Not
Recognized
in OCI
 
Fair
Value
 
Recognized
in OCI
 
Not
Recognized
in OCI
 
Fair
Value
 
Recognized
in OCI
 
Not
Recognized
in OCI
U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
 
$
98

 
$
—

 
$
1

 
$
1,572

 
$
47

 
$
—

 
$
1,670

 
$
47

 
$
1

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
53

 
—

 
—

 
1,466

 
68

 
—

 
1,519

 
68

 
—

Total securities held to maturity
 
$
151

 
$
—

 
$
1

 
$
3,038

 
$
115

 
$
—

 
$
3,189

 
$
115

 
$
1


 
 
December 31, 2015
 
 
Less than 12 months
 
12 months or more
 
Total
 
 
 
 
Unrealized Losses
 
 
 
Unrealized Losses
 
 
 
Unrealized Losses
(Dollars in millions)
 
Fair
Value
 
Recognized
in OCI
 
Not
Recognized
in OCI
 
Fair
Value
 
Recognized
in OCI
 
Not
Recognized
in OCI
 
Fair
Value
 
Recognized
in OCI
 
Not
Recognized
in OCI
U.S. government-sponsored agencies
 
$
196

 
$
—

 
$
4

 
$
—

 
$
—

 
$
—

 
$
196

 
$
—

 
$
4

U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
 
3,297

 
—

 
39

 
1,705

 
53

 
2

 
5,002

 
53

 
41

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
197

 
—

 
1

 
1,428

 
73

 
4

 
1,625

 
73

 
5

Total securities held to maturity
 
$
3,690

 
$
—

 
$
44

 
$
3,133

 
$
126

 
$
6

 
$
6,823

 
$
126

 
$
50
Debt Securities by Contractual Maturity
The carrying amount and fair value of securities held to maturity by contractual maturity are shown below. Actual maturities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.
 
 
June 30, 2016
 
 
Over One Year
Through
Five Years
 
Over Five Years
Through
Ten Years
 
Over Ten Years
 
Total
(Dollars in millions)
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
 
Carrying
Amount
 
Fair
Value
U.S. Treasury
 
$
490

 
$
505

 
$
—

 
$
—

 
$
—

 
$
—

 
$
490

 
$
505

U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
 
—

 
—

 
86

 
88

 
8,040

 
8,241

 
8,126

 
8,329

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
49

 
51

 
802

 
875

 
792

 
813

 
1,643

 
1,739

Total securities held to maturity
 
$
539

 
$
556

 
$
888

 
$
963

 
$
8,832

 
$
9,054

 
$
10,259

 
$
10,573