Investment Securities (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Summary of Investment Securities

The following table presents our investment securities:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(Dollars in millions)
June 30, 2022
Available-for-sale securities
Agency - Commercial	$	1,560	$	—	$	(74)	$	1,486
Agency - Residential	614		—		(53)		561
Corporate debt obligations	57		—		—		57
Municipal obligations	17		—		(1)		16
Other MBS	251		—		(26)		225
Certificate of deposits	1		—		—		1
Total available-for-sale securities (1)	$	2,500	$	—	$	(154)	$	2,346
Held-to-maturity securities
Agency - Commercial	$	84	$	—	$	(3)	$	81
Agency - Residential	89		—		(4)		85
Total held-to-maturity securities (1)	$	173	$	—	$	(7)	$	166
December 31, 2021
Available-for-sale securities
Agency - Commercial	$	739	$	8	$	—	$	747
Agency - Residential	690		9		(3)		696
Corporate debt obligations	70		3		—		73
Municipal obligations	20		—		—		20
Other MBS	268		—		(1)		267
Certificate of deposits	1		—		—		1
Total available-for-sale securities (1)	$	1,788	$	20	$	(4)	$	1,804
Held-to-maturity securities
Agency - Commercial	$	99	$	1	$	—	$	100
Agency - Residential	106		3		—		109
Total held-to-maturity securities (1)	$	205	$	4	$	—	$	209

(1)There were no securities of a single issuer, which are not governmental or government-sponsored, that exceeded 10 percent of stockholders’ equity at June 30, 2022 or December 31, 2021.

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

The following table summarizes the unrealized loss positions on AFS and HTM 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)
June 30, 2022
Available-for-sale securities
Agency - Commercial	$	7	3	$	—	$	1,478	104	$	(74)
Agency - Residential	—		—	—		561		93	(53)
Municipal obligations	—		—	—		13		7	(1)
Corporate debt obligations	—		—	—		42		11	—
Other mortgage-backed securities	—		—	—		146		10	(26)
Held-to-maturity securities
Agency - Commercial	$	—	—	$	—	$	81	24	$	(3)
Agency - Residential	—		—	—		85		47	(4)
December 31, 2021
Available-for-sale securities
Agency - Commercial	$	4	2	$	—	$	143	9	$	—
Agency - Residential	—		—	—		291		19	(3)
Municipal obligations	—		—	—		3		1	—
Other mortgage-backed securities	—		1	—		147		5	(1)
Held-to-maturity securities
Agency - Commercial	$	—	—	$	—	$	—	1	$	—

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

The following table summarizes the unrealized loss positions on AFS and HTM 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)
June 30, 2022
Available-for-sale securities
Agency - Commercial	$	7	3	$	—	$	1,478	104	$	(74)
Agency - Residential	—		—	—		561		93	(53)
Municipal obligations	—		—	—		13		7	(1)
Corporate debt obligations	—		—	—		42		11	—
Other mortgage-backed securities	—		—	—		146		10	(26)
Held-to-maturity securities
Agency - Commercial	$	—	—	$	—	$	81	24	$	(3)
Agency - Residential	—		—	—		85		47	(4)
December 31, 2021
Available-for-sale securities
Agency - Commercial	$	4	2	$	—	$	143	9	$	—
Agency - Residential	—		—	—		291		19	(3)
Municipal obligations	—		—	—		3		1	—
Other mortgage-backed securities	—		1	—		147		5	(1)
Held-to-maturity securities
Agency - Commercial	$	—	—	$	—	$	—	1	$	—

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)
June 30, 2022
Due in one year or less	$	5	$	5	2.21	%	$	2	$	2	1.96	%
Due after one year through five years	10		10		5.15	%	3		3		2.86	%
Due after five years through 10 years	185		180		2.70	%	2		2		2.04	%
Due after 10 years	2,300		2,151		2.83	%	166		159		2.53	%
Total	$	2,500	$	2,346			$	173	$	166

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