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Investment Securities
 3 Months Ended
Mar. 31, 2019
Investment Securities Disclosure [Abstract]  
Investment Securities
INVESTMENT SECURITIES
Table 44: Investment Securities Summary
 
 
March 31, 2019
 
 
December 31, 2018
In millions
 
Amortized
Cost

 
Unrealized
 
Fair
Value

 
 
Amortized
Cost

 
Unrealized
 
Fair
Value

Gains

 
Losses

 
 
 
Gains

 
Losses

 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
18,858

 
$
200

 
$
(67
)
 
$
18,991

 
 
$
18,104

 
$
133

 
$
(137
)
 
$
18,100

Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
29,549

 
229

 
(250
)
 
29,528

 
 
29,413

 
104

 
(524
)
 
28,993

Non-agency
 
1,834

 
302

 
(11
)
 
2,125

 
 
1,924

 
300

 
(13
)
 
2,211

Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
2,598

 
27

 
(52
)
 
2,573

 
 
2,630

 
13

 
(66
)
 
2,577

Non-agency
 
2,831

 
16

 
(15
)
 
2,832

 
 
2,689

 
5

 
(37
)
 
2,657

Asset-backed
 
5,508

 
69

 
(12
)
 
5,565

 
 
4,933

 
59

 
(20
)
 
4,972

Other
 
3,346

 
104

 
(13
)
 
3,437

 
 
3,821

 
96

 
(38
)
 
3,879

Total securities available for sale
 
$
64,524

 
$
947

 
$
(420
)
 
$
65,051

 
 
$
63,514

 
$
710

 
$
(835
)
 
$
63,389

Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
763

 
$
35

 
$
(11
)
 
$
787

 
 
$
758

 
$
28

 
$
(23
)
 
$
763

Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
15,317

 
90

 
(185
)
 
15,222

 
 
15,740

 
32

 
(358
)
 
15,414

Non-agency
 
149

 
4

 
 
 
153

 
 
152

 
2

 
 
 
154

Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
107

 
1

 
 
 
108

 
 
143

 
1

 
(1
)
 
143

Non-agency
 
473

 
3

 
 
 
476

 
 
488

 
1

 
(1
)
 
488

Asset-backed
 
174

 
 
 
 
 
174

 
 
182

 
1

 
 
 
183

Other
 
1,835

 
75

 
(22
)
 
1,888

 
 
1,849

 
53

 
(28
)
 
1,874

Total securities held to maturity
 
$
18,818

 
$
208

 
$
(218
)
 
$
18,808

 
 
$
19,312

 
$
118

 
$
(411
)
 
$
19,019



The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Net unrealized gains and losses in the securities available for sale portfolio are included in Shareholders’ equity as AOCI, unless credit-related. Securities held to maturity are carried at amortized cost. Investment securities at March 31, 2019 included $623 million of net unsettled purchases which represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows.

At March 31, 2019, AOCI included pretax gains of $25 million from derivatives that hedged the purchase of investment securities classified as held to maturity. The gains will be accreted into interest income as an adjustment of yield on the securities.

Table 45 presents gross unrealized losses and fair value of debt securities at March 31, 2019 and December 31, 2018. The securities are segregated between investments that have been in a continuous unrealized loss position for less than twelve months and twelve months or more based on the point in time that the fair value declined below the amortized cost basis. The table includes debt securities where a portion of other than temporary impairment (OTTI) has been recognized in AOCI.
Table 45: Gross Unrealized Loss and Fair Value of Securities
 
 
Unrealized loss position less than 12 months
 
Unrealized loss position 12 months or more
 
Total
 
In millions
 
Unrealized
Loss

 
Fair
Value

 
Unrealized
Loss

 
Fair
Value

 
Unrealized
Loss

 
Fair
Value

 
March 31, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
(2
)
 
$
1,699

 
$
(65
)
 
$
5,908

 
$
(67
)
 
$
7,607

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
(2
)
 
1,230

 
(248
)
 
14,184

 
(250
)
 
15,414

 
Non-agency
 
 
 
 
 
(11
)
 
332

 
(11
)
 
332

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
 
 
 
(52
)
 
1,500

 
(52
)
 
1,500

 
Non-agency
 
(3
)
 
801

 
(12
)
 
646

 
(15
)
 
1,447

 
Asset-backed
 
(5
)
 
1,108

 
(6
)
 
1,178

 
(11
)
 
2,286

 
Other
 
 
 
 
 
(14
)
 
1,324

 
(14
)
 
1,324

 
Total securities available for sale
 
$
(12
)
 
$
4,838

 
$
(408
)
 
$
25,072

 
$
(420
)
 
$
29,910

 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
 
 
 
 
$
(11
)
 
$
460

 
$
(11
)
 
$
460

 
Residential mortgage-backed - Agency
 
 
 
 
 
(185
)
 
9,778

 
(185
)
 
9,778

 
Other
 
$
(1
)
 
$
38

 
(21
)
 
137

 
(22
)
 
175

 
Total securities held to maturity
 
$
(1
)
 
$
38

 
$
(217
)
 
$
10,375

 
$
(218
)
 
$
10,413

 
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
(21
)
 
$
4,125

 
$
(116
)
 
$
5,423

 
$
(137
)
 
$
9,548

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
(57
)
 
4,823

 
(467
)
 
13,830

 
(524
)
 
18,653

 
Non-agency
 
(1
)
 
74

 
(12
)
 
310

 
(13
)
 
384

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
(1
)
 
65

 
(65
)
 
1,516

 
(66
)
 
1,581

 
Non-agency
 
(23
)
 
1,809

 
(14
)
 
498

 
(37
)
 
2,307

 
Asset-backed
 
(11
)
 
2,149

 
(9
)
 
1,032

 
(20
)
 
3,181

 
Other
 
(12
)
 
868

 
(26
)
 
1,293

 
(38
)
 
2,161

 
Total securities available for sale
 
$
(126
)
 
$
13,913

 
$
(709
)
 
$
23,902

 
$
(835
)
 
$
37,815

 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
 
 
 
 
$
(23
)
 
$
446

 
$
(23
)
 
$
446

 
Residential mortgage-backed - Agency
 
$
(58
)
 
$
4,191

 
(300
)
 
7,921

 
(358
)
 
12,112

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
(1
)
 
88

 
 
 
 
 
(1
)
 
88

 
Non-agency
 
(1
)
 
152

 
 
 
 
 
(1
)
 
152

 
Other
 
(2
)
 
75

 
(26
)
 
123

 
(28
)
 
198

 
Total securities held to maturity
 
$
(62
)
 
$
4,506

 
$
(349
)
 
$
8,490

 
$
(411
)
 
$
12,996

 


Evaluating Investment Securities for OTTI

For the securities in Table 45, as of March 31, 2019 we do not intend to sell and believe we will not be required to sell the securities prior to recovery of the amortized cost basis.

On at least a quarterly basis, we review all debt securities that are in an unrealized loss position for OTTI, as discussed in Note 1 Accounting Policies of our 2018 Form 10-K. For those securities on our Consolidated Balance Sheet at March 31, 2019, where during our quarterly security-level impairment assessments we determined losses represented OTTI, we have recorded cumulative credit losses of $1.1 billion in earnings and accordingly have reduced the amortized cost of our securities.

The majority of these cumulative impairment charges related to non-agency residential mortgage-backed and asset-backed securities rated BB or lower. During the first three months of 2019 and 2018, the OTTI credit losses recognized in noninterest income and the OTTI noncredit losses recognized in AOCI on securities were not significant.
Information relating to gross realized securities gains and losses from the sales of securities is set forth in the following table:

Table 46: Gains (Losses) on Sales of Securities Available for Sale
Three months ended March 31
In millions
Gross Gains

Gross Losses

Net Gains (Losses)

Tax Expense

 
2019
$
27

$
(14
)
$
13

$
3

 
2018
$
37

$
(38
)
$
(1
)


 
The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at March 31, 2019.
Table 47: Contractual Maturity of Securities
March 31, 2019
Dollars in millions
 
1 Year or Less

 
After 1 Year
through 5 Years

 
After 5 Years
through 10 Years

 
After 10
Years

 
Total

 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
679

 
$
13,599

 
$
3,795

 
$
785

 
$
18,858

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
2

 
52

 
867

 
28,628

 
29,549

 
Non-agency
 
 
 
 
 
 
 
1,834

 
1,834

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
 
590

 
309

 
1,699

 
2,598

 
Non-agency
 
 
 
 
 
332

 
2,499

 
2,831

 
Asset-backed
 
31

 
2,529

 
1,616

 
1,332

 
5,508

 
Other
 
476

 
1,522

 
475

 
873

 
3,346

 
Total securities available for sale
 
$
1,188

 
$
18,292

 
$
7,394

 
$
37,650

 
$
64,524

 
Fair value
 
$
1,188

 
$
18,294

 
$
7,484

 
$
38,085

 
$
65,051

 
Weighted-average yield, GAAP basis
 
2.58
%
 
2.29
%
 
2.98
%
 
3.25
%
 
2.93
%
 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
 
 
 
 
$
490

 
$
273

 
$
763

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
 
$
78

 
523

 
14,716

 
15,317

 
Non-agency
 
 
 
 
 
 
 
149

 
149

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
$
11

 
42

 
4

 
50

 
107

 
Non-agency
 
 
 
 
 
 
 
473

 
473

 
Asset-backed
 
 
 
7

 
100

 
67

 
174

 
Other
 
23

 
621

 
749

 
442

 
1,835

 
Total securities held to maturity
 
$
34

 
$
748

 
$
1,866

 
$
16,170

 
$
18,818

 
Fair value
 
$
34

 
$
768

 
$
1,928

 
$
16,078

 
$
18,808

 
Weighted-average yield, GAAP basis
 
4.87
%
 
3.84
%
 
3.45
%
 
3.27
%
 
3.31
%
 

Weighted-average yields are based on amortized cost with effective yields weighted for the contractual maturity of each security. At March 31, 2019, there were no securities of a single issuer, other than the Federal National Mortgage Association (FNMA), that exceeded 10% of Total shareholders’ equity. The FNMA investments had a total amortized cost of $37.1 billion and fair value of $37.0 billion.
The following table presents the fair value of securities that have been either pledged to or accepted from others to collateralize outstanding borrowings.
Table 48: Fair Value of Securities Pledged and Accepted as Collateral
In millions
March 31
2019

December 31
2018

Pledged to others
$
6,055

$
7,597

Accepted from others:
 
 
Permitted by contract or custom to sell or repledge (a)
$
2,235

$
6,905

Permitted amount repledged to others
$
1,151

$
923

(a)
Includes $6.0 billion in fair value of securities accepted from others to collateralize short-term investments in resale agreements at December 31, 2018 that were not repledged to others.

The securities pledged to others include positions held in our portfolio of investment securities, trading securities and securities accepted as collateral from others that we are permitted by contract or custom to sell or repledge, and were used to secure public and trust deposits, repurchase agreements and for other purposes.