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Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2022
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.
June 30, 2022December 31, 2021
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$2,561 $— $(187)$2,374 $2,173 $2 $(20)$2,155 
U.S. States and political subdivisions859 1 (72)788 841 27 (4)864 
Foreign government161 — (12)149 157 2 (2)157 
Agency mortgage-backed residential
19,956 1 (2,098)17,859 19,044 219 (224)19,039 
Mortgage-backed residential5,249 — (595)4,654 4,448 11 (34)4,425 
Agency mortgage-backed commercial4,343 3 (616)3,730 4,573 66 (113)4,526 
Asset-backed496 — (21)475 536 1 (3)534 
Corporate debt1,896 — (182)1,714 1,878 30 (21)1,887 
Total available-for-sale securities (a) (b) (c) (d) (e)
$35,521 $5 $(3,783)$31,743 $33,650 $358 $(421)$33,587 
Held-to-maturity securities
Debt securities
Agency mortgage-backed residential$1,112 $— $(114)$998 $1,170 $48 $(14)$1,204 
Total held-to-maturity securities (e) (f)$1,112 $— $(114)$998 $1,170 $48 $(14)$1,204 
(a)Certain entities related to our Insurance operations are required to deposit securities with state regulatory authorities. These deposited securities totaled $12 million and $13 million at June 30, 2022, and December 31, 2021, respectively.
(b)Certain available-for-sale securities are included in fair value hedging relationships. Refer to Note 19 for additional information.
(c)Available-for-sale securities with a fair value of $3.7 billion and $203 million at June 30, 2022, and December 31, 2021, respectively, were pledged to secure advances from the FHLB for short-term borrowings and for other purposes as required by contractual obligation or law. Under these agreements, we granted the counterparty the right to sell or pledge $304 million and $203 million of the underlying available-for-sale securities at June 30, 2022, and December 31, 2021, respectively.
(d)Totals do not include accrued interest receivable, which was $90 million and $84 million at June 30, 2022, and December 31, 2021, 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 both June 30, 2022, or December 31, 2021, 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 $3 million at both June 30, 2022, and December 31, 2021. Accrued interest receivable is included in other assets on our Condensed Consolidated Balance Sheet.
Investments Classified by Contractual Maturity Date
The maturity distribution of debt securities outstanding is summarized in the following tables based upon contractual maturities. Call or prepayment options may cause actual maturities to differ from contractual maturities.
TotalDue in one year or lessDue after one year through five yearsDue after five years through ten yearsDue after ten years
($ in millions)AmountYieldAmountYieldAmountYieldAmountYieldAmountYield
June 30, 2022
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies$2,374 1.4 %$275 1.0 %$602 1.1 %$1,497 1.6 %$— — %
U.S. States and political subdivisions788 3.1 32 2.7 72 2.8 113 3.3 571 3.1 
Foreign government149 1.6 2 0.1 85 1.5 62 1.8 — — 
Agency mortgage-backed residential17,859 2.5 — — — — 21 2.0 17,838 2.5 
Mortgage-backed residential4,654 2.7 — — — — 31 3.3 4,623 2.7 
Agency mortgage-backed commercial3,730 2.1 — — 24 3.1 1,031 2.3 2,675 2.0 
Asset-backed475 1.8 — — 407 1.8 61 1.4 7 3.4 
Corporate debt1,714 2.3 67 2.4 878 2.2 760 2.3 9 3.1 
Total available-for-sale securities$31,743 2.4 $376 1.4 $2,068 1.8 $3,576 2.0 $25,723 2.5 
Amortized cost of available-for-sale securities
$35,521 $377 $2,183 $3,961 $29,000 
Amortized cost of held-to-maturity securities
Agency mortgage-backed residential$1,112 2.8 %$— — %$— — %$— — %$1,112 2.8 %
Total held-to-maturity securities
$1,112 2.8 $— — $— — $— — $1,112 2.8 
December 31, 2021
Fair value of available-for-sale securities (a)
U.S. Treasury and federal agencies$2,155 1.1 %$288 1.0 %$525 0.9 %$1,342 1.2 %$— — %
U.S. States and political subdivisions864 3.0 26 1.6 77 2.8 128 3.3 633 3.0 
Foreign government157 1.9 2 2.1 97 2.0 58 1.8 — — 
Agency mortgage-backed residential19,039 2.5 — — — — 26 2.0 19,013 2.5 
Mortgage-backed residential4,425 2.6 — — — — 23 2.9 4,402 2.6 
Agency mortgage-backed commercial4,526 1.9 — — 26 2.4 1,578 2.4 2,922 1.7 
Asset-backed534 1.9 — — 350 2.0 175 1.5 9 3.4 
Corporate debt1,887 2.3 54 2.9 830 2.3 994 2.3 9 2.5 
Total available-for-sale securities$33,587 2.3 $370 1.3 $1,905 1.9 $4,324 2.0 $26,988 2.4 
Amortized cost of available-for-sale securities
$33,650 $368 $1,893 $4,291 $27,098 
Amortized cost of held-to-maturity securities
Agency mortgage-backed residential
$1,170 2.8 %$— — %$— — %$— — %$1,170 2.8 %
Total held-to-maturity securities
$1,170 2.8 $— — $— — $— — $1,170 2.8 
(a)Yield is calculated using the effective yield of each security at the end of the period, weighted based on the market value. The effective yield considers the contractual coupon and amortized cost, and excludes expected capital gains and losses.
Investment Income
The following table presents interest and dividends on investment securities.
Three months ended June 30,Six months ended June 30,
($ in millions)2022202120222021
Taxable interest$186 $131 $360 $245 
Taxable dividends4 7 8 12 
Interest and dividends exempt from U.S. federal income tax5 5 10 10 
Interest and dividends on investment securities$195 $143 $378 $267 
Schedule of Realized Gain (Loss)
The following table presents gross gains and losses realized upon the sales of available-for-sale securities, and net gains or losses on equity securities held during the period.
Three months ended June 30,Six months ended June 30,
($ in millions)
2022202120222021
Available-for-sale securities
Gross realized gains$3 $6 $21 $38 
Net realized gain on available-for-sale securities3 6 21 38 
Net realized gain on equity securities10 40 62 114 
Net unrealized (loss) gain on equity securities(137)19 (202)36 
Other (loss) gain on investments, net$(124)$65 $(119)$188 
Held to Maturity Debt Securities by Credit Quality
The following table presents the credit quality of our held-to-maturity securities, based on the latest available information as of June 30, 2022, and December 31, 2021. The credit ratings are sourced from nationally recognized statistical rating organizations, which include S&P, Moody’s, and Fitch. The ratings presented are a composite of the ratings sourced from the agencies or, if the ratings cannot be sourced from the agencies, are based on the asset type of the security. All of our held-to-maturity securities were current in their payment of principal and interest as of June 30, 2022, and December 31, 2021. We have not recorded any interest income reversals on our held-to-maturity securities during the six months ended June 30, 2022, or 2021.
June 30, 2022December 31, 2021
($ in millions)AATotal (a)AATotal (a)
Debt securities
Agency mortgage-backed residential$1,112 $1,112 $1,170 $1,170 
Total held-to-maturity securities$1,112 $1,112 $1,170 $1,170 
(a)Rating agencies indicate that they base their ratings on many quantitative and qualitative factors, which may include capital adequacy, liquidity, asset quality, business mix, level and quality of earnings, and the current operating, legislative, and regulatory environment. A credit rating is not a recommendation to buy, sell, or hold securities, and the ratings are subject to revision or withdrawal at any time by the assigning rating agency.
Schedule of Available-for-Sale Securities in Unrealized Loss Position
The following table summarizes available-for-sale securities in an unrealized loss position, which we evaluated to determine if a credit loss exists requiring the recognition of an allowance for credit losses. For additional information on our methodology, refer to Note 1 to the Consolidated Financial Statements in our 2021 Annual Report on Form 10-K. As of June 30, 2022, and December 31, 2021, we did not have the intent to sell the available-for-sale securities with an unrealized loss position and we do not believe it is more likely than not that we will be required to sell these securities before recovery of their amortized cost basis. We have not recorded any interest income reversals on our available-for-sale securities during the six months ended June 30, 2022, or 2021.
June 30, 2022December 31, 2021
Less than 12 months12 months or longerLess than 12 months12 months or longer
($ 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$1,965 $(137)$409 $(50)$1,682 $(20)$— $— 
U.S. States and political subdivisions604 (68)41 (4)160 (3)31 (1)
Foreign government121 (8)25 (4)76 (2)7 — 
Agency mortgage-backed residential13,719 (1,361)4,044 (737)12,244 (223)38 (1)
Mortgage-backed residential4,319 (552)267 (43)3,243 (34)22 — 
Agency mortgage-backed commercial2,753 (419)812 (197)2,553 (70)749 (43)
Asset-backed425 (21)14 — 360 (3)— — 
Corporate debt1,416 (134)249 (48)970 (18)49 (3)
Total available-for-sale securities
$25,322 $(2,700)$5,861 $(1,083)$21,288 $(373)$896 $(48)