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Investment Securities
 6 Months Ended
Jun. 30, 2022
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
The following table presents our investment securities:
Amortized CostGross 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 - Residential614 — (53)561 
Corporate debt obligations57 — — 57 
Municipal obligations17 — (1)16 
Other MBS251 — (26)225 
Certificate of deposits1 — — 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 - Residential690 9 (3)696 
Corporate debt obligations70 3 — 73 
Municipal obligations 20 — — 20 
Other MBS268 — (1)267 
Certificate of deposits1 — — 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.

We evaluate AFS debt securities where the value has declined below amortized cost for impairment. If we intend to sell or believe it is more likely than not that we will be required to sell the debt security, it is written down to fair value through earnings. For AFS debt securities that we intend to hold, we evaluate the debt securities for expected credit losses, except for debt securities that are guaranteed by the U.S. Treasury, U.S. government agencies or sovereign entities of high credit quality for which we apply a zero loss assumption, and which comprised 88 percent of our AFS portfolio as of June 30, 2022. For the remaining AFS securities, credit losses are recognized as an increase to the ACL through the credit loss provision. If any of the decline in fair value is related to market factors, that amount is recognized in OCI. We had no unrealized credit losses during the three months and six months ended June 30, 2022 and the year ended December 31, 2021.

We separately evaluate our HTM debt securities for any credit losses. As of June 30, 2022 and December 31, 2021, our entire HTM portfolio qualified for the zero loss assumption as all securities are guaranteed by the U.S. Treasury or U.S. government agencies.

Investment securities transactions are recorded on the trade date for purchases and sales. Interest earned on investment securities, including the amortization of premiums and the accretion of discounts, is determined using the effective interest method over the period of maturity and recorded in interest income in the Consolidated Statements of Operations. Accrued interest receivable on investment securities totaled $6 million at June 30, 2022 and $4 million at December 31, 2021, and was reported in other assets on the Consolidated Statements of Financial Condition.
Available-for-sale securities

Securities AFS are carried at fair value. Unrealized gains and losses on AFS securities are reported as a component of other comprehensive income.
    
We purchased $505 million and $898 million of AFS securities, which were comprised of U.S. government sponsored agency MBS and certificates of deposit during the three and six months ended June 30, 2022, respectively. We purchased $197 million and $283 million of AFS securities, which were comprised of U.S. government sponsored agency MBS, certificates of deposit, and corporate debt obligations, during the three and six months ended June 30, 2021.We did not retain any passive interests in our own private MBS during the three and six months ended June 30, 2022. We retained $58 million of passive interests in our own private MBS during the three and six months ended June 30, 2021.

There were no sales of AFS securities during both the three and six months ended June 30, 2022 and June 30, 2021 other than those related to mortgage loans that had been securitized for sale in the normal course of business.

Held-to-maturity securities

Investment securities HTM are carried at amortized cost and adjusted for amortization of premiums and accretion of discounts using the interest method. Unrealized losses are not recorded to the extent they are temporary in nature.    

There were no purchases or sales of HTM securities during both the three and six months ended June 30, 2022 and June 30, 2021.

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 ValueNumber of SecuritiesUnrealized LossFair
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$— — $— $— 1$— 

Unrealized losses on AFS securities have not been recognized into income because almost all of the portfolio held by us are issued by U.S. government entities and agencies. These securities are either explicitly or implicitly guaranteed by the U.S. government, are highly rated by major rating agencies, and have a long history of no credit losses. The remaining unrealized losses on AFS securities are municipal securities and corporate debt obligations, all of which are considered investment grade or are de minimis. The fair value is expected to recover as the bonds approach maturity.
The following table shows the amortized cost and estimated fair value of securities by contractual maturity:
 Investment Securities Available-for-SaleInvestment 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 years10 10 5.15 %3 3 2.86 %
Due after five years through 10 years185 180 2.70 %2 2 2.04 %
Due after 10 years2,300 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.

We pledge investment securities, primarily agency collateralized and municipal taxable mortgage obligations, to collateralize lines of credit and/or borrowings. At June 30, 2022 and December 31, 2021, we had pledged investment securities of $258 million and $1.5 billion, respectively.