XML 130 R13.htm IDEA: XBRL DOCUMENT v3.22.0.1
Investment Securities
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Investment Securities INVESTMENT SECURITIESThe following table summarizes our available for sale and held to maturity portfolios by major security type:
Table 45: Investment Securities Summary
December 31, 2021December 31, 2020
In millionsAmortized
Cost		UnrealizedFair
Value		Amortized
Cost		UnrealizedFair
Value
GainsLossesGainsLosses
Securities Available for Sale
U.S. Treasury and government agencies$46,210 $324 $(370)$46,164 $19,821 $903 $(13)$20,711 
Residential mortgage-backed
Agency67,326 695 (389)67,632 47,355 1,566 (10)48,911 
Non-agency927 231 1,158 1,272 243 (14)1,501 
Commercial mortgage-backed
Agency1,740 39 (6)1,773 2,571 119 (2)2,688 
Non-agency3,423 31 (18)3,436 3,678 78 (67)3,689 
Asset-backed6,380 60 (31)6,409 5,060 100 (10)5,150 
Other4,792 186 (14)4,964 4,415 293 4,708 
Total securities available for sale (a) (b)$130,798 $1,566 $(828)$131,536 $84,172 $3,302 $(116)$87,358 
Securities Held to Maturity
U.S. Treasury and government agencies$814 $76 $890 $795 $125 $920 
Other612 27 $(7)632 646 42 $(3)685 
Total securities held to maturity (c)$1,426 $103 $(7)$1,522 $1,441 $167 $(3)$1,605 
(a) The accrued interest associated with our available for sale portfolios totaled $322 million and $238 million at December 31, 2021 and 2020, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet.
(b)    Amortized cost is presented net of allowance of $130 million and $79 million for securities available for sale at December 31, 2021 and 2020, respectively.
(c)    Credit ratings represent a primary credit quality indicator used to monitor and manage credit risk. 86% and 85% of our securities held to maturity were rated AAA/AA as of December 31, 2021 and 2020, respectively.
The fair value of investment securities is impacted by interest rates, credit spreads, market volatility and liquidity conditions. Securities available for sale are carried at fair value with net unrealized gains and losses included in Shareholders’ equity as AOCI, unless credit related. Net unrealized gains and losses are determined by taking the difference between the fair value of a security and its amortized cost, net of any allowance. Securities held to maturity are carried at amortized cost less any allowance. Investment securities at December 31, 2021 included $0.8 billion of net unsettled purchases which represent non-cash investing activity, and accordingly, are not reflected on the Consolidated Statement of Cash Flows. The comparable amount for December 31, 2020 was $0.2 billion.

We maintain the allowance for investment securities at levels that we believe to be appropriate as of the balance sheet date to absorb
expected credit losses on our portfolio. As of December 31, 2021, the allowance for investment securities was $133 million and
primarily related to non-agency commercial mortgage-backed securities in the available for sale portfolio. The comparable amount at December 31, 2020 was $82 million. The provision for credit losses on investment securities was $51 million and $80 million for the twelve months ended December 31, 2021 and 2020, respectively. See Note 1 Accounting Policies for a discussion of the methodologies used to determine the allowance for investment securities.

Table 46 presents the gross unrealized losses and fair value of securities available for sale that do not have an associated allowance for investment securities at December 31, 2021 and 2020. These securities are segregated between investments that had 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. All securities included in the table have been evaluated to determine if a credit loss exists. As part of that assessment, as of December 31, 2021, we concluded that we do not intend to sell and believe we will not be required to sell these securities prior to recovery of the amortized cost basis.
Table 46: Gross Unrealized Loss and Fair Value of Securities Available for Sale Without an Allowance for Credit Losses
Unrealized loss position
less than 12 months		Unrealized loss position
12 months or more		Total
In millionsUnrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value		Unrealized
Loss		Fair
Value
December 31, 2021
U.S. Treasury and government agencies$(370)$32,600 $(370)$32,600 
Residential mortgage-backed
Agency(369)41,521 $(20)$1,489 (389)43,010 
Commercial mortgage-backed
Agency(5)451 (1)60 (6)511 
Non-agency(4)1,453 (3)474 (7)1,927 
Asset-backed(29)3,465 (2)188 (31)3,653 
Other(13)1,405 (13)1,405 
Total securities available for sale$(790)$80,895 $(26)$2,211 $(816)$83,106 
December 31, 2020
U.S. Treasury and government agencies$(13)$603 $(13)$603 
Residential mortgage-backed
Agency(8)3,152 $(2)$82 (10)3,234 
Non-agency(7)119 (7)73 (14)192 
Commercial mortgage-backed
Agency(2)149 (2)149 
Non-agency(13)972 (7)714 (20)1,686 
Asset-backed(1)339 (9)706 (10)1,045 
Total securities available for sale$(42)$5,185 $(27)$1,724 $(69)$6,909 
Information relating to gross realized securities gains and losses from the sales of securities is set forth in the following table:

Table 47: Gains (Losses) on Sales of Securities Available for Sale
Year ended December 31
In millions		Gross GainsGross LossesNet GainsTax Expense
2021$360 $(296)$64 $13 
2020$307 $(2)$305 $64 
2019$69 $(21)$48 $10 
The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at December 31, 2021:
Table 48: Contractual Maturity of Debt Securities
December 31, 20211 Year or
Less		After 1 Year
through 5 Years		After 5 Years
through 10 Years		After 10
Years		Total
Dollars in millions
Securities Available for Sale
U.S. Treasury and government agencies$5,367 $27,890 $10,823 $2,130 $46,210 
Residential mortgage-backed
Agency1 97 2,682 64,546 67,326 
Non-agency2 925 927 
Commercial mortgage-backed
Agency79 335 816 510 1,740 
Non-agency142 154 3,127 3,423 
Asset-backed87 2,110 566 3,617 6,380 
Other277 2,181 1,693 641 4,792 
Total securities available for sale at amortized cost$5,811 $32,755 $16,736 $75,496 $130,798 
Fair value$5,851 $32,696 $16,788 $76,201 $131,536 
Weighted-average yield, GAAP basis (a)1.40 %1.10 %1.67 %2.41 %1.94 %
Securities Held to Maturity
U.S. Treasury and government agencies$327 $196 $291 $814 
Other$175 263 113 61 612 
Total securities held to maturity at amortized cost$175 $590 $309 $352 $1,426 
Fair value$177 $621 $357 $367 $1,522 
Weighted-average yield, GAAP basis (a)3.50 %2.96 %4.16 %2.52 %3.17 %
(a)        Weighted-average yields are based on amortized cost with effective yields weighted for the contractual maturity of each security. Actual maturities and yields may differ as certain securities may be prepaid.

At December 31, 2021, there were no securities of a single issuer, other than FNMA and FHLMC, that exceeded 10% of total shareholders’ equity. The FNMA and FHLMC investments had a total amortized cost of $33.8 billion and $25.0 billion and fair value of $34.2 billion and $24.8 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 49: Fair Value of Securities Pledged and Accepted as Collateral
In millionsDecember 31
2021		December 31
2020
Pledged to others$27,349 $22,841 
Accepted from others:
Permitted by contract or custom to sell or repledge $707 $683 
Permitted amount repledged to others$707 $683 
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. See Note 16 Financial Derivatives for information related to securities pledged and accepted as collateral for derivatives.