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Investment Securities
 9 Months Ended
Sep. 30, 2019
Investment Securities Disclosure [Abstract]  
Investment Securities INVESTMENT SECURITIES
Table 44: Investment Securities Summary
 
 
September 30, 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
 
$
17,597

 
$
420

 
$
(12
)
 
$
18,005

 
 
$
18,104

 
$
133

 
$
(137
)
 
$
18,100

Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
34,130

 
506

 
(56
)
 
34,580

 
 
29,413

 
104

 
(524
)
 
28,993

Non-agency
 
1,626

 
308

 
(3
)
 
1,931

 
 
1,924

 
300

 
(13
)
 
2,211

Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
2,909

 
54

 
(24
)
 
2,939

 
 
2,630

 
13

 
(66
)
 
2,577

Non-agency
 
3,209

 
41

 
(4
)
 
3,246

 
 
2,689

 
5

 
(37
)
 
2,657

Asset-backed
 
5,256

 
89

 
(6
)
 
5,339

 
 
4,933

 
59

 
(20
)
 
4,972

Other
 
2,892

 
126

 
(1
)
 
3,017

 
 
3,821

 
96

 
(38
)
 
3,879

Total securities available for sale
 
$
67,619

 
$
1,544

 
$
(106
)
 
$
69,057

 
 
$
63,514

 
$
710

 
$
(835
)
 
$
63,389

Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
772

 
$
75

 
 
 
$
847

 
 
$
758

 
$
28

 
$
(23
)
 
$
763

Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
15,527

 
257

 
$
(34
)
 
15,750

 
 
15,740

 
32

 
(358
)
 
15,414

Non-agency
 
140

 
7

 
 
 
147

 
 
152

 
2

 
 
 
154

Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
89

 
3

 
 
 
92

 
 
143

 
1

 
(1
)
 
143

Non-agency
 
449

 
6

 
 
 
455

 
 
488

 
1

 
(1
)
 
488

Asset-backed
 
54

 
1

 
 
 
55

 
 
182

 
1

 
 
 
183

Other
 
1,795

 
85

 
(16
)
 
1,864

 
 
1,849

 
53

 
(28
)
 
1,874

Total securities held to maturity
 
$
18,826

 
$
434

 
$
(50
)
 
$
19,210

 
 
$
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 accumulated other comprehensive income (AOCI), unless credit-related. Securities held to maturity are carried at amortized cost. Investment securities at September 30, 2019 included $280 million of net unsettled purchases which represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows.

At September 30, 2019, AOCI included pretax gains of $28 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 September 30, 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

 
September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
Securities Available for Sale
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
$
(11
)
 
$
2,300

 
$
(1
)
 
$
248

 
$
(12
)
 
$
2,548

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
(5
)
 
1,329

 
(51
)
 
5,471

 
(56
)
 
6,800

 
Non-agency
 
 
 
 
 
(3
)
 
242

 
(3
)
 
242

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
 
 
 
(24
)
 
1,121

 
(24
)
 
1,121

 
Non-agency
 
(1
)
 
413

 
(3
)
 
217

 
(4
)
 
630

 
Asset-backed
 
(2
)
 
464

 
(4
)
 
794

 
(6
)
 
1,258

 
Other
 
 
 
 
 
(1
)
 
503

 
(1
)
 
503

 
Total securities available for sale
 
$
(19
)
 
$
4,506

 
$
(87
)
 
$
8,596

 
$
(106
)
 
$
13,102

 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed - Agency
 
 
 
 
 
$
(34
)
 
$
3,709

 
$
(34
)
 
$
3,709

 
Other
 
$
(1
)
 
$
27

 
(15
)
 
119

 
(16
)
 
146

 
Total securities held to maturity
 
$
(1
)
 
$
27

 
$
(49
)
 
$
3,828

 
$
(50
)
 
$
3,855

 
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 September 30, 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 September 30, 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 nine 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
Nine months ended September 30
In millions
Gross Gains

Gross Losses

Net Gains (Losses)

Tax Expense (Benefit)

 
2019
$
57

$
(21
)
$
36

$
8

 
2018
$
43

$
(48
)
$
(5
)
$
(1
)
 

The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at September 30, 2019.
Table 47: Contractual Maturity of Securities
September 30, 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
 
$
2,456

 
$
11,133

 
$
3,111

 
$
897

 
$
17,597

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
 
61

 
1,149

 
32,920

 
34,130

 
Non-agency
 
 
 
 
 
 
 
1,626

 
1,626

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
17

 
610

 
292

 
1,990

 
2,909

 
Non-agency
 
 
 
 
 
331

 
2,878

 
3,209

 
Asset-backed
 
34

 
2,350

 
1,652

 
1,220

 
5,256

 
Other
 
286

 
1,421

 
436

 
749

 
2,892

 
Total securities available for sale at amortized cost
 
$
2,793

 
$
15,575

 
$
6,971

 
$
42,280

 
$
67,619

 
Fair value
 
$
2,811

 
$
15,754

 
$
7,163

 
$
43,329

 
$
69,057

 
Weighted-average yield, GAAP basis
 
2.64
%
 
2.27
%
 
2.84
%
 
3.30
%
 
2.98
%
 
Securities Held to Maturity
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury and government agencies
 
 
 
$
198

 
$
297

 
$
277

 
$
772

 
Residential mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
 
59

 
500

 
14,968

 
15,527

 
Non-agency
 
 
 
 
 
 
 
140

 
140

 
Commercial mortgage-backed
 
 
 
 
 
 
 
 
 
 
 
Agency
 
 
 
40

 
 
 
49

 
89

 
Non-agency
 
 
 
 
 
 
 
449

 
449

 
Asset-backed
 
 
 
6

 
20

 
28

 
54

 
Other
 
$
37

 
732

 
664

 
362

 
1,795

 
Total securities held to maturity at amortized cost
 
$
37

 
$
1,035

 
$
1,481

 
$
16,273

 
$
18,826

 
Fair value
 
$
37

 
$
1,070

 
$
1,573

 
$
16,530

 
$
19,210

 
Weighted-average yield, GAAP basis
 
3.92
%
 
3.56
%
 
3.56
%
 
3.33
%
 
3.36
%
 

Weighted-average yields are based on amortized cost with effective yields weighted for the contractual maturity of each security. At September 30, 2019, there were no securities of a single issuer, other than the Federal National Mortgage Association (FNMA) and Federal Home Loan Mortgage Corp (FHLMC), that exceeded 10% of Total shareholders’ equity. The FNMA and FHLMC investments had a total amortized cost of $40.4 billion and $6.4 billion and fair value of $41.0 billion and $6.5 billion, respectively.
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
September 30
2019

December 31
2018

Pledged to others
$
12,666

$
7,597

Accepted from others:
 
 
Permitted by contract or custom to sell or repledge (a)
$
3,980

$
6,905

Permitted amount repledged to others
$
702

$
923

(a)
Includes $3.3 billion and $6.0 billion in fair value of securities accepted from others to collateralize short-term investments in resale agreements that were not repledged at September 30, 2019 and December 31, 2018, respectively.

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.