Investment Securities (Tables)

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investment Securities Available-for-Sale and Held-to-Maturity

The amortized cost, gross unrealized holding gains and losses, and fair value of held-to-maturity and available-for-sale investment securities at December 31 were as follows:

	2022									2021
(Dollars in Millions)	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value		Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Held-to-maturity
U.S. Treasury and agencies	$	1,344	$	–	$	(51	)	$	1,293	$	–	$	–	$	–		$	–
Mortgage-backed securities
Residential agency		85,693		2		(10,810	)		74,885		41,858		2		(48	)		41,812
Commercial agency		1,703		1		(8	)		1,696		–		–		–			–
Total held-to-maturity	$	88,740	$	3	$	(10,869	)	$	77,874	$	41,858	$	2	$	(48	)	$	41,812
Available-for-sale
U.S. Treasury and agencies	$	24,801	$	1	$	(2,769	)	$	22,033	$	36,648	$	205	$	(244	)	$	36,609
Mortgage-backed securities
Residential agency		32,060		8		(2,797	)		29,271		76,761		665		(347	)		77,079
Commercial
Agency		8,736		–		(1,591	)		7,145		8,633		53		(201	)		8,485
Non-agency		7		–		–			7		–		–		–			–
Asset-backed securities		4,356		5		(38	)		4,323		62		4		–			66
Obligations of state and political subdivisions		11,484		12		(1,371	)		10,125		10,130		607		(20	)		10,717
Other		6		–		–			6		7		–		–			7
Total available-for-sale	$	81,450	$	26	$	(8,566	)	$	72,910	$	132,241	$	1,534	$	(812	)	$	132,963

Amount of Interest Income from Taxable and Non-Taxable Investment Securities

The following table provides information about the amount of interest income from taxable and non-taxable investment securities:

Year Ended December 31 (Dollars in Millions)	2022		2021		2020
Taxable	$	3,081	$	2,103	$	2,201
Non-taxable		297		262		227
Total interest income from investment securities	$	3,378	$	2,365	$	2,428

Amount of Gross Gains and Losses Realized through Sales of Available-for-Sale Investment Securities

The following table provides information about the amount of gross gains and losses realized through the sales of available-for-sale investment securities:

Year Ended December 31 (Dollars in Millions)	2022			2021			2020
Realized gains	$	163		$	122		$	200
Realized losses		(143	)		(19	)		(23	)
Net realized gains	$	20		$	103		$	177
Income tax on net realized gains	$	5		$	26		$	45

Gross Unrealized Losses and Fair Value of Company's Investment Securities

The following table shows the gross unrealized losses and fair value of the Company’s available-for-sale investment securities with unrealized losses, aggregated by investment category and length of time the individual investment securities have been in continuous unrealized loss positions, at December 31, 2022:

	Less Than 12 Months					12 Months or Greater					Total
(Dollars in Millions)	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
U.S. Treasury and agencies	$	13,265	$	(1,193	)	$	7,962	$	(1,576	)	$	21,227	$	(2,769	)
Mortgage-backed securities
Residential agency		20,854		(1,461	)		7,752		(1,336	)		28,606		(2,797	)
Commercial
Agency		2,029		(311	)		5,115		(1,280	)		7,144		(1,591	)
Non-agency		7		–			–		–			7		–
Asset-backed securities		3,476		(38	)		–		–			3,476		(38	)
Obligations of state and political subdivisions		8,246		(944	)		1,088		(427	)		9,334		(1,371	)
Other		–		–			4		–			4		–
Total investment securities	$	47,877	$	(3,947	)	$	21,921	$	(4,619	)	$	69,798	$	(8,566	)

Investment Securities

The following table provides information about the amortized cost, fair value and yield by maturity date of the investment securities outstanding at December 31, 2022:

(Dollars in Millions)	Amortized Cost		Fair Value		Weighted- Average Maturity in Years		Weighted- Average Yield(e)
Held-to-maturity
U.S. Treasury and Agencies
Maturing in one year or less	$	–	$	–		–		–	%
Maturing after one year through five years		1,344		1,293		3.3		2.85
Maturing after five years through ten years		–		–		–		–
Maturing after ten years		–		–		–		–
Total	$	1,344	$	1,293		3.3		2.85	%
Mortgage-Backed Securities(a)
Maturing in one year or less	$	19	$	19		.7		3.08	%
Maturing after one year through five years		1,549		1,546		2.7		4.35
Maturing after five years through ten years		67,062		59,194		9.2		2.15
Maturing after ten years		18,766		15,822		10.2		2.05
Total	$	87,396	$	76,581		9.3		2.17	%
Total held-to-maturity(b)	$	88,740	$	77,874		9.2		2.18	%
Available-for-sale
U.S. Treasury and Agencies
Maturing in one year or less	$	259	$	259		.4		4.72	%
Maturing after one year through five years		4,900		4,606		3.8		2.51
Maturing after five years through ten years		15,937		14,114		7.0		2.24
Maturing after ten years		3,705		3,054		12.0		2.97
Total	$	24,801	$	22,033		7.1		2.43	%
Mortgage-Backed Securities(a)
Maturing in one year or less	$	44	$	43		.8		2.55	%
Maturing after one year through five years		10,976		10,242		3.1		2.33
Maturing after five years through ten years		28,277		24,827		7.7		3.00
Maturing after ten years		1,506		1,311		11.2		3.54
Total	$	40,803	$	36,423		6.6		2.83	%
Asset-Backed Securities
Maturing in one year or less	$	3,429	$	3,391		.6		4.25	%
Maturing after one year through five years		500		503		2.8		5.68
Maturing after five years through ten years		427		429		5.3		6.00
Maturing after ten years		–		–		–		–
Total	$	4,356	$	4,323		1.3		4.59	%
Obligations of State and Political Subdivisions(c) (d)
Maturing in one year or less	$	106	$	107		.2		5.12	%
Maturing after one year through five years		1,756		1,747		3.7		4.72
Maturing after five years through ten years		1,341		1,286		8.3		4.10
Maturing after ten years		8,281		6,985		16.8		3.49
Total	$	11,484	$	10,125		13.6		3.76	%
Other
Maturing in one year or less	$	6	$	6		.1		1.99	%
Maturing after one year through five years		–		–		–		–
Maturing after five years through ten years		–		–		–		–
Maturing after ten years		–		–		–		–
Total	$	6	$	6		.1		1.99	%
Total available-for-sale(b)	$	81,450	$	72,910		7.4		2.94	%

(a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments.

(b) The weighted-average maturity of total held-to-maturity investment securities was 7.4 years at December 31, 2021, with a corresponding weighted-average yield of 1.45 percent. The weighted-average maturity of total available-for-sale investment securities was 5.5 years at December 31, 2021, with a corresponding weighted-average yield of 1.73 percent.

(c) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount.

(d) Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par.

(e) Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. Yields on investment securities are computed based on amortized cost balances, excluding any premiums or discounts recorded related to the transfer of investment securities at fair value from available-for-sale to held-to maturity.