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Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
Investment Portfolio The cost, fair value, and gross unrealized gains and losses on available-for-sale and held-to-maturity securities were as follows.
September 30, 2021December 31, 2020
Amortized costGross unrealized
Fair value
Amortized costGross unrealized
Fair value
($ in millions)gainslossesgainslosses
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies$1,759 $3 $(19)$1,743 $783 $20 $— $803 
U.S. States and political subdivisions839 25 (6)858 1,046 50 (1)1,095 
Foreign government159 4 (2)161 167 9 — 176 
Agency mortgage-backed residential
19,579 306 (179)19,706 18,053 538 (3)18,588 
Mortgage-backed residential3,463 23 (7)3,479 2,595 49 (4)2,640 
Agency mortgage-backed commercial4,767 90 (121)4,736 4,063 139 (13)4,189 
Asset-backed544 3 — 547 420 5 — 425 
Corporate debt1,862 43 (13)1,892 1,809 105 — 1,914 
Total available-for-sale securities (a) (b) (c) (d) (e)
$32,972 $497 $(347)$33,122 $28,936 $915 $(21)$29,830 
Held-to-maturity securities
Debt securities
Agency mortgage-backed residential$1,150 $55 $(12)$1,193 $1,253 $79 $(1)$1,331 
Total held-to-maturity securities (e) (f)$1,150 $55 $(12)$1,193 $1,253 $79 $(1)$1,331 
(a)Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $13 million at both September 30, 2021, and December 31, 2020.
(b)Certain available-for-sale securities are included in fair value hedging relationships. Refer to Note 18 for additional information.
(c)Available-for-sale securities with a fair value of $258 million and $145 million at September 30, 2021, and December 31, 2020, respectively, were pledged for purposes as required by contractual obligation or law. Under these agreements, we granted the counterparty the right to sell or pledge the underlying investment securities.
(d)Totals do not include accrued interest receivable, which was $82 million and $90 million at September 30, 2021, and December 31, 2020, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.
(e)There was no allowance for credit losses recorded at September 30, 2021, or December 31, 2020, as management determined that there were no expected credit losses in our portfolio of available-for-sale and held-to-maturity securities.
(f)Totals do not include accrued interest receivable, which was $2 million and $3 million at September 30, 2021, and December 31, 2020, respectively. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.
Investments Classified by Contractual Maturity Date
The maturity distribution of debt securities outstanding is summarized in the following tables based upon contractual maturities. Call or prepayment options may cause actual maturities to differ from contractual maturities.
TotalDue in one year or lessDue after one year through five yearsDue after five years through ten yearsDue after ten years
($ in millions)AmountYieldAmountYieldAmountYieldAmountYieldAmountYield
September 30, 2021
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies$1,743 1.1 %$291 0.8 %$180 1.0 %$1,272 1.2 %$— — %
U.S. States and political subdivisions858 3.1 33 2.5 74 2.7 134 3.3 617 3.1 
Foreign government161 1.8 2 0.8 97 1.9 62 1.8 — — 
Agency mortgage-backed residential19,706 2.5 — — — — 28 2.0 19,678 2.5 
Mortgage-backed residential3,479 2.6 — — — — 25 2.9 3,454 2.6 
Agency mortgage-backed commercial4,736 1.9 — — 26 2.4 1,751 2.3 2,959 1.7 
Asset-backed547 2.0 — — 308 2.4 230 1.4 9 3.3 
Corporate debt1,892 2.3 89 3.0 765 2.3 1,029 2.3 9 2.3 
Total available-for-sale securities$33,122 2.4 $415 1.4 $1,450 2.1 $4,531 2.0 $26,726 2.5 
Amortized cost of available-for-sale securities
$32,972 $413 $1,420 $4,466 $26,673 
Amortized cost of held-to-maturity securities
Agency mortgage-backed residential$1,150 2.8 %$— — %$— — %$— — %$1,150 2.8 %
Total held-to-maturity securities
$1,150 2.8 $— — $— — $— — $1,150 2.8 
December 31, 2020
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies$803 1.2 %$13 0.1 %$708 1.1 %$82 1.7 %$— — %
U.S. States and political subdivisions1,095 3.0 49 1.4 103 2.3 228 2.7 715 3.3 
Foreign government176 2.1 9 1.7 86 2.3 81 1.9 — — 
Agency mortgage-backed residential18,588 3.1 — — — — 37 2.0 18,551 3.1 
Mortgage-backed residential2,640 3.1 — — — — 36 2.9 2,604 3.1 
Agency mortgage-backed commercial4,189 1.9 — — — — 1,628 2.3 2,561 1.7 
Asset-backed425 2.9 — — 349 3.0 49 1.8 27 3.1 
Corporate debt1,914 2.7 155 2.7 625 2.9 1,077 2.6 57 2.1 
Total available-for-sale securities$29,830 2.8 $226 2.3 $1,871 2.2 $3,218 2.4 $24,515 3.0 
Amortized cost of available-for-sale securities
$28,936 $224 $1,808 $3,022 $23,882 
Amortized cost of held-to-maturity securities
Agency mortgage-backed residential
$1,253 3.0 %$— — %$— — %$— — %$1,253 3.0 %
Total held-to-maturity securities
$1,253 3.0 $— — $— — $— — $1,253 3.0 
(a)Yield is calculated using the effective yield of each security at the end of the period, weighted based on the market value. The effective yield considers the contractual coupon and amortized cost, and excludes expected capital gains and losses.
Investment Income
The following table presents interest and dividends on investment securities.
Three months ended September 30,Nine months ended September 30,
($ in millions)2021202020212020
Taxable interest$139 $154 $384 $536 
Taxable dividends7 4 19 14 
Interest and dividends exempt from U.S. federal income tax4 4 14 12 
Interest and dividends on investment securities$150 $162 $417 $562 
Schedule of Realized Gain (Loss)
The following table presents gross gains and losses realized upon the sales of available-for-sale securities, and net gains or losses on equity securities held during the period.
Three months ended September 30,Nine months ended September 30,
($ in millions)
2021202020212020
Available-for-sale securities
Gross realized gains$44 $45 $82 $169 
Gross realized losses (a)— (2)— (2)
Net realized gains on available-for-sale securities44 43 82 167 
Net realized gain on equity securities45 7 159 88 
Net unrealized (loss) gain on equity securities(65)14 (29)(82)
Other gain on investments, net$24 $64 $212 $173 
(a)Certain available-for-sale securities were sold at a loss during the three months and nine months ended September 30, 2020, as a result of identifiable market or credit events, or a loss was realized based on corporate actions outside of our control (such as a call by the issuer). Any such sales were made in accordance with our risk-management policies and practices.
Held to Maturity Debt Securities by Credit Quality
The following table presents the credit quality of our held-to-maturity securities, based on the latest available information as of September 30, 2021, and December 31, 2020. The credit ratings are sourced from nationally recognized statistical rating organizations, which include S&P, Moody’s, and Fitch. They represent a composite of the ratings or, where credit ratings cannot be sourced from the agencies, are presented based on the asset type. All of our held-to-maturity securities were current in their payment of principal and interest as of September 30, 2021, and December 31, 2020. We have not recorded any interest income reversals on our held-to-maturity securities during the nine months ended September 30, 2021, or 2020.
September 30, 2021December 31, 2020
($ in millions)AATotal (a)AATotal (a)
Debt securities
Agency mortgage-backed residential$1,150 $1,150 $1,253 $1,253 
Total held-to-maturity securities$1,150 $1,150 $1,253 $1,253 
(a)Rating agencies indicate that they base their ratings on many quantitative and qualitative factors, which may include capital adequacy, liquidity, asset quality, business mix, level and quality of earnings, and the current operating, legislative, and regulatory environment. A credit rating is not a recommendation to buy, sell, or hold securities, and the ratings are subject to revision or withdrawal at any time by the assigning rating agency.
Schedule of Unrealized Loss on Investments
The following table summarizes available-for-sale securities in an unrealized loss position, which we evaluated to determine if a credit loss exists requiring the recognition of an allowance for credit losses. For additional information on our methodology, refer to Note 1 to the Consolidated Financial Statements in our 2020 Annual Report on Form 10-K. As of September 30, 2021, and December 31, 2020, we did not have the intent to sell the available-for-sale securities with an unrealized loss position and we do not believe it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. We have not recorded any interest income reversals on our available-for-sale securities during the nine months ended September 30, 2021, or 2020.
September 30, 2021December 31, 2020
Less than 12 months12 months or longerLess than 12 months12 months or longer
($ in millions)
Fair value
Unrealized loss
Fair value
Unrealized loss
Fair valueUnrealized lossFair valueUnrealized loss
Available-for-sale securities
Debt securities
U.S. Treasury and federal agencies$1,349 $(19)$— $— $3 $— $— $— 
U.S. States and political subdivisions264 (6)11 — 83 (1)— — 
Foreign government60 (2)4 — 7 — — — 
Agency mortgage-backed residential9,619 (178)48 (1)1,225 (3)— — 
Mortgage-backed residential1,344 (7)17 — 316 (4)— — 
Agency mortgage-backed commercial2,955 (112)125 (9)926 (13)— — 
Asset-backed139 — — — 11 — — — 
Corporate debt718 (11)29 (2)59 — 5 — 
Total available-for-sale securities
$16,448 $(335)$234 $(12)$2,630 $(21)$5 $—