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Investment Securities
 3 Months Ended
Mar. 31, 2022
Investment Securities Disclosure [Abstract]  
Investment Securities INVESTMENT SECURITIESThe following table summarizes our available for sale and held to maturity portfolios by major security type:
Table 37: Investment Securities Summary (a)
March 31, 2022December 31, 2021
In millionsAmortized
Cost 		UnrealizedFair
Value		Amortized
Cost		UnrealizedFair
Value
GainsLossesGainsLosses
Securities Available for Sale
U.S. Treasury and government agencies$36,872 $56 $(1,707)$35,221 $46,210 $324 $(370)$46,164 
Residential mortgage-backed
Agency61,407 91 (2,683)58,815 67,326 695 (389)67,632 
Non-agency1,132 210 (10)1,332 927 231 1,158 
Commercial mortgage-backed
Agency2,152 4 (46)2,110 1,740 39 (6)1,773 
Non-agency3,504 2 (51)3,455 3,423 31 (18)3,436 
Asset-backed6,407 46 (148)6,305 6,380 60 (31)6,409 
Other 5,117 83 (125)5,075 4,792 186 (14)4,964 
Total securities available for sale (b)$116,591 $492 $(4,770)$112,313 $130,798 $1,566 $(828)$131,536 
Securities Held to Maturity
U.S. Treasury and government agencies$9,991 $25 $(5)$10,011 $814 $76 $890 
Agency residential mortgage-backed9,548 9,548 
Other559 11 (14)556 612 27 $(7)632 
Total securities held to maturity (c) (d)$20,098 $36 $(19)$20,115 $1,426 $103 $(7)$1,522 
(a) The accrued interest associated with our securities portfolio totaled $312 million and $327 million at March 31, 2022 and December 31, 2021, respectively.
    These amounts are included in Other assets on the Consolidated Balance Sheet.
(b) Amortized cost is presented net of allowance of $131 million and $130 million for securities available for sale at March 31, 2022 and December 31, 2021, respectively.
(c) Credit ratings represent a primary credit quality indicator used to monitor and manage credit risk. 99% and 86% of our securities held to maturity were rated AAA/AA at March 31, 2022 and December 31, 2021, respectively.
(d) Held to maturity securities transferred from available for sale are included in held to maturity at fair value at the time of the transfer. The amortized cost of held to maturity securities included net unrealized losses of $1.3 billion related to securities transferred, which are offset in AOCI, net of tax.

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 Total 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 March 31, 2022 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 March 31, 2021 was $1.8 billion.

On March 31, 2022, we transferred securities with a fair value of $18.7 billion from available for sale to held to maturity. The securities transferred included $9.2 billion of U.S. Treasury and government agency securities and $9.5 billion of agency residential mortgage-backed securities. We changed our intent and committed to hold these high-quality securities to maturity in order to reduce the impact of price volatility on AOCI and tangible capital. The securities were reclassified at fair value at the time of the transfer and the transfer represented a non-cash transaction. AOCI included net pretax unrealized losses of $1.3 billion at transfer. These unrealized losses will be amortized, consistent with the amortization of the discount on these securities, over the remaining life as an adjustment of yield, resulting in no impact to net interest income or net income.

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. At March 31, 2022, the allowance for investment securities was $134 million and primarily related to non-agency commercial mortgage-backed securities in the available for sale portfolio. The comparable amount at December 31, 2021 was $133 million. See Note 1 Accounting Policies included in Item 8 of our 2021 Form 10-K for a discussion of the methodologies used to determine the allowance for investment securities.

At March 31, 2022, AOCI included pretax losses of $22.1 million from derivatives that hedged the purchase of investment securities classified as held to maturity. The losses will be accreted to interest income as an adjustment of yield on the securities.

Table 38 presents the gross unrealized losses and fair value of securities available for sale that do not have an associated allowance for investment securities at March 31, 2022 and December 31, 2021. 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 March 31, 2022, 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 38: 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
March 31, 2022
U.S. Treasury and government agencies$(1,433)$26,147 $(274)$3,788 $(1,707)$29,935 
Residential mortgage-backed
Agency(2,551)50,802 (132)1,940 (2,683)52,742 
Non-agency(9)334 (1)20 (10)354 
Commercial mortgage-backed
Agency(42)1,481 (4)120 (46)1,601 
Non-agency(31)2,246 (6)470 (37)2,716 
Asset-backed(123)5,091 (25)517 (148)5,608 
Other (100)2,324 (11)135(111)2,459 
Total securities available for sale$(4,289)$88,425 $(453)$6,990 $(4,742)$95,415 
December 31, 2021
U.S. Treasury and government agencies$(370)$32,600 $(370)$32,600 
Agency residential mortgage-backed(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 
Information relating to gross realized securities gains and losses from the sales of securities is set forth in the following table:

Table 39: Gains (Losses) on Sales of Securities Available for Sale
Three months ended March 31
In millions		Gross GainsGross LossesNet Gains (Losses) Tax Expense (Benefit)
2022$11 $(15)$(4)$(1)
2021$159 $(134)$25 $5 
The following table presents, by remaining contractual maturity, the amortized cost, fair value and weighted-average yield of debt securities at March 31, 2022:
Table 40: Contractual Maturity of Debt Securities
March 31, 2022
Dollars in millions		1 Year or LessAfter 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$2,730 $24,432 $7,505 $2,205 $36,872 
Residential mortgage-backed
Agency2 110 3,034 58,261 61,407 
Non-agency2 1,130 1,132 
Commercial mortgage-backed
Agency45 332 1,359 416 2,152 
Non-agency172 242 3,090 3,504 
Asset-backed37 1,803 1,070 3,497 6,407 
Other 216 2,722 1,584 595 5,117 
Total securities available for sale at amortized cost$3,030 $29,571 $14,796 $69,194 $116,591 
Fair value$3,037 $28,409 $14,188 $66,679 $112,313 
Weighted-average yield, GAAP basis (a)1.81 %1.23 %1.89 %2.45 %2.05 %
Securities Held to Maturity
U.S. Treasury and government agencies$6,076 $3,493 $422 $9,991 
Agency residential mortgage-backed9,548 9,548 
Other$155 236 108 60 559 
Total securities held to maturity at amortized cost$155 $6,312 $3,601 $10,030 $20,098 
Fair value$157 $6,318 $3,624 $10,016 $20,115 
Weighted-average yield, GAAP basis (a)3.66 %0.82 %1.51 %2.07 %1.59 %
(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 March 31, 2022, 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 $35.3 billion and $28.3 billion and fair value of $34.3 billion and $27.2 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 41: Fair Value of Securities Pledged and Accepted as Collateral
In millionsMarch 31
2022		December 31
2021
Pledged to others$25,791 $27,349 
Accepted from others:
Permitted by contract or custom to sell or repledge$1,172 $707 
Permitted amount repledged to others$1,172 $707 
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 12 Financial Derivatives in the Notes To Consolidated Financial Statements in Item 1 of this Report for information related to securities pledged and accepted as collateral for derivatives.