Investment Securities (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Held-to-maturity and Available-for-sale Securities

The following table presents our investment securities:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Dollars in millions)
December 31, 2020
Available-for-sale securities
Agency - Commercial	$	1,018	$	43	$	—	$	1,061
Agency - Residential	707		28		—		735
Corporate debt obligations	75		2		—		77
Municipal obligations	27		1		—		28
Other MBS	42		—		—		42
Certificate of deposit	1		—		—		1
Total available-for-sale securities (1)	$	1,870	$	74	$	—	$	1,944
Held-to-maturity securities
Agency - Commercial	$	193	$	7	$	—	$	200
Agency - Residential	184		9		—		193
Total held-to-maturity securities (1)	$	377	$	16	$	—	$	393
December 31, 2019
Available-for-sale securities
Agency - Commercial	$	948	$	2	$	(3)	$	947
Agency - Residential	1,015		4		(4)		1,015
Corporate debt obligations	76		1		—		77
Municipal obligations	31		—		—		31
Other MBS	44		1		—		45
Certificate of deposit	1		—		—		1
Total available-for-sale securities (1)	$	2,115	$	8	$	(7)	$	2,116
Held-to-maturity securities
Agency - Commercial	$	306	$	—	$	(1)	$	305
Agency - Residential	292		3		(1)		294
Total held-to-maturity securities (1)	$	598	$	3	$	(2)	$	599

(1)There were no securities of a single issuer, which are not governmental or government-sponsored, that exceeded 10 percent of stockholders’ equity at December 31, 2020 or December 31, 2019.

Summary of Unrealized Loss Positions on Investment Securities Available-for-Sale

The following table summarizes the unrealized loss positions on available-for-sale and held-to-maturity investment securities, by duration of the unrealized loss:

	Unrealized Loss Position with Duration 12 Months and Over					Unrealized Loss Position with Duration Under 12 Months
	Fair Value		Number of Securities	Unrealized Loss		Fair Value		Number of Securities	Unrealized Loss
	(Dollars in millions)
December 31, 2020
Available-for-sale securities
Agency - Commercial	$	3	1	$	—	$	7	2	$	—
Agency - Residential	—		—	—		—		1	—
Corporate debt obligations	—		—	—		10		3	—
Other mortgage-backed securities	—		—	—		—		1	—
Held-to-maturity securities
Agency - Residential	—		—	—		2		3	—
December 31, 2019
Available-for-sale securities
Agency - Commercial	$	148	17	$	(3)	$	303	19	$	—
Agency - Residential	266		26	(3)		148		14	(1)
Municipal obligations	8		3	—		—		—	—
Held-to-maturity securities
Agency - Commercial	$	148	13	$	(1)	$	85	6	$	—
Agency - Residential	35		7	(1)		38		10	—

Summary of Unrealized Loss Positions on Investment Securities Held-to-Maturity

The following table summarizes the unrealized loss positions on available-for-sale and held-to-maturity investment securities, by duration of the unrealized loss:

	Unrealized Loss Position with Duration 12 Months and Over					Unrealized Loss Position with Duration Under 12 Months
	Fair Value		Number of Securities	Unrealized Loss		Fair Value		Number of Securities	Unrealized Loss
	(Dollars in millions)
December 31, 2020
Available-for-sale securities
Agency - Commercial	$	3	1	$	—	$	7	2	$	—
Agency - Residential	—		—	—		—		1	—
Corporate debt obligations	—		—	—		10		3	—
Other mortgage-backed securities	—		—	—		—		1	—
Held-to-maturity securities
Agency - Residential	—		—	—		2		3	—
December 31, 2019
Available-for-sale securities
Agency - Commercial	$	148	17	$	(3)	$	303	19	$	—
Agency - Residential	266		26	(3)		148		14	(1)
Municipal obligations	8		3	—		—		—	—
Held-to-maturity securities
Agency - Commercial	$	148	13	$	(1)	$	85	6	$	—
Agency - Residential	35		7	(1)		38		10	—

Schedule of Amortized Cost and Estimated Fair Value of Securities by Contractual Maturity

The following table shows the amortized cost and estimated fair value of securities by contractual maturity:

	Investment Securities Available-for-Sale						Investment Securities Held-to-Maturity
	Amortized Cost		Fair Value		Weighted-Average Yield (1)		Amortized Cost		Fair Value		Weighted-Average Yield (1)
	(Dollars in millions)
December 31, 2020
Due in one year or less	$	5	$	5	2.22	%	$	—	$	—	—	%
Due after one year through five years	9		10		2.83	%	7		8		2.44	%
Due after five years through 10 years	123		127		3.95	%	7		8		2.37	%
Due after 10 years	1,733		1,802		2.34	%	363		377		2.41	%
Total	$	1,870	$	1,944			$	377	$	393

(1) Weighted-average yields are based on amortized cost weighted for the contractual maturity of each security.