XML 34 R23.htm IDEA: XBRL DOCUMENT v3.7.0.1
Securities (Tables)
 6 Months Ended
Jun. 30, 2017
Securities  
Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses, and Fair Values of Securities
At June 30, 2017 and December 31, 2016, the amortized cost, gross unrealized gains, gross unrealized losses and fair values of securities available for sale are presented below.
 
 
June 30, 2017
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Asset Liability Management securities:
 
 
 
 
 
 
 


U.S. Treasury
 
$
2,331

 
$
—

 
$
89

 
$
2,242

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
8,919

 
6

 
92

 
8,833

Privately issued
 
501

 
2

 
4

 
499

Privately issued - commercial mortgage-backed securities
 
712

 
6

 
4

 
714

Collateralized loan obligations
 
2,227

 
5

 
2

 
2,230

Other
 
7

 
—

 
—

 
7

Asset Liability Management securities
 
14,697

 
19

 
191

 
14,525

Other debt securities:
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
1,523

 
46

 
23

 
1,546

Other
 
93

 
—

 
—

 
93

Equity securities
 
5

 
—

 
—

 
5

Total securities available for sale
 
$
16,318

 
$
65

 
$
214

 
$
16,169

 
 
December 31, 2016
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Asset Liability Management securities:
 
 
 
 
 
 
 
 
U.S. Treasury
 
$
2,625

 
$
1

 
$
121

 
$
2,505

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
6,814

 
3

 
122

 
6,695

Privately issued
 
333

 
1

 
7

 
327

Privately issued - commercial mortgage-backed securities
 
666

 
4

 
6

 
664

Collateralized loan obligations
 
2,219

 
4

 
5

 
2,218

Other
 
7

 
—

 
—

 
7

Asset Liability Management securities
 
12,664

 
13

 
261

 
12,416

Other debt securities:
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
1,601

 
41

 
29

 
1,613

Other
 
108

 
—

 
1

 
107

Equity securities
 
5

 
—

 
—

 
5

Total securities available for sale
 
$
14,378

 
$
54

 
$
291

 
$
14,141
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 six months ended June 30, 2017 and 2016 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)
 
2017
 
2016
 
2017
 
2016
Gross realized gains
 
$
7

 
$
19

 
$
9

 
$
32
Schedule of Held to Maturity Securities Recognized and Not Recognized in Other Comprehensive Income (OCI) and Fair Values
At June 30, 2017 and December 31, 2016, 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, 2017
 
 
 
 
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
 
$
494

 
$
—

 
$
—

 
$
494

 
$
3

 
$
—

 
$
497

U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
 
8,358

 
2

 
36

 
8,324

 
36

 
78

 
8,282

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
1,613

 
—

 
58

 
1,555

 
47

 
5

 
1,597

Total securities held to maturity
 
$
10,465

 
$
2

 
$
94

 
$
10,373

 
$
86

 
$
83

 
$
10,376


 
 
December 31, 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
 
$
492

 
$
—

 
$
—

 
$
492

 
$
5

 
$
—

 
$
497

U.S. government agency and government-sponsored agencies - residential mortgage-backed securities
 
8,301

 
3

 
41

 
8,263

 
34

 
96

 
8,201

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
1,645

 
—

 
63

 
1,582

 
43

 
7

 
1,618

Total securities held to maturity
 
$
10,438

 
$
3

 
$
104

 
$
10,337

 
$
82

 
$
103

 
$
10,316
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, 2017 and December 31, 2016 are shown below, identified for periods less than 12 months and 12 months or more.
 
 
June 30, 2017
 
 
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
 
$
2,193

 
$
89

 
$
—

 
$
—

 
$
2,193

 
$
89

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
6,520

 
85

 
598

 
7

 
7,118

 
92

Privately issued
 
291

 
3

 
24

 
1

 
315

 
4

Privately issued - commercial mortgage-backed securities
 
371

 
4

 
10

 
—

 
381

 
4

Collateralized loan obligations
 
558

 
1

 
79

 
1

 
637

 
2

Asset Liability Management securities
 
9,933

 
182

 
711

 
9

 
10,644

 
191

Other debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
81

 
3

 
558

 
20

 
639

 
23

Other
 
68

 
—

 
—

 
—

 
68

 
—

Equity securities
 
—

 
—

 
5

 
—

 
5

 
—

Total securities available for sale
 
$
10,082

 
$
185

 
$
1,274

 
$
29

 
$
11,356

 
$
214


 
 
December 31, 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:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
 
$
2,257

 
$
121

 
$
—

 
$
—

 
$
2,257

 
$
121

Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency and government-sponsored agencies
 
5,501

 
113

 
667

 
9

 
6,168

 
122

Privately issued
 
249

 
6

 
29

 
1

 
278

 
7

Privately issued - commercial mortgage-backed securities
 
415

 
6

 
11

 
—

 
426

 
6

Collateralized loan obligations
 
75

 
—

 
1,077

 
5

 
1,152

 
5

Other
 
—

 
—

 
1

 
—

 
1

 
—

Asset Liability Management securities
 
8,497

 
246

 
1,785

 
15

 
10,282

 
261

Other debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
Direct bank purchase bonds
 
386

 
12

 
499

 
17

 
885

 
29

Other
 
36

 
1

 
—

 
—

 
36

 
1

Equity securities
 
—

 
—

 
5

 
—

 
5

 
—

Total securities available for sale
 
$
8,919

 
$
259

 
$
2,289

 
$
32

 
$
11,208

 
$
291
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, 2017
(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
 
$
—

 
$
49

 
$
2,193

 
$
—

 
$
2,242

   Residential mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
   U.S. government agency and government-sponsored agencies
 
2

 
5

 
280

 
8,546

 
8,833

     Privately issued
 
—

 
1

 
—

 
498

 
499

Privately issued - commercial mortgage-backed securities
 
—

 
—

 
—

 
714

 
714

   Collateralized loan obligations
 
—

 
—

 
906

 
1,324

 
2,230

   Other
 
1

 
1

 
5

 
—

 
7

    Asset Liability Management securities
 
3

 
56

 
3,384

 
11,082

 
14,525

Other debt securities:
 
 
 
 
 
 
 
 
 
 
   Direct bank purchase bonds
 
8

 
424

 
723

 
391

 
1,546

   Other
 
—

 
67

 
—

 
26

 
93

      Total debt securities available for sale
 
$
11

 
$
547

 
$
4,107

 
$
11,499

 
$
16,164
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, 2017 and December 31, 2016 are shown below, separately for periods less than 12 months and 12 months or more.
 
 
June 30, 2017
 
 
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
 
$
4,642

 
$
—

 
$
77

 
$
1,264

 
$
36

 
$
1

 
$
5,906

 
$
36

 
$
78

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
104

 
—

 
1

 
1,439

 
58

 
4

 
1,543

 
58

 
5

Total securities held to maturity
 
$
4,746

 
$
—

 
$
78

 
$
2,703

 
$
94

 
$
5

 
$
7,449

 
$
94

 
$
83


 
 
December 31, 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
 
$
4,492

 
$
—

 
$
92

 
$
1,386

 
$
41

 
$
4

 
$
5,878

 
$
41

 
$
96

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
111

 
—

 
1

 
1,448

 
63

 
6

 
1,559

 
63

 
7

Total securities held to maturity
 
$
4,603

 
$
—

 
$
93

 
$
2,834

 
$
104

 
$
10

 
$
7,437

 
$
104

 
$
103
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, 2017
 
 
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
 
$
494

 
$
497

 
$
—

 
$
—

 
$
—

 
$
—

 
$
494

 
$
497

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

 
—

 
417

 
414

 
7,907

 
7,868

 
8,324

 
8,282

U.S. government agency and government-sponsored agencies - commercial mortgage-backed securities
 
433

 
452

 
421

 
440

 
701

 
705

 
1,555

 
1,597

Total securities held to maturity
 
$
927

 
$
949

 
$
838

 
$
854

 
$
8,608

 
$
8,573

 
$
10,373

 
$
10,376