SECURITIES (Tables)

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Schedule of securities held

The following table presents the major components of securities at amortized cost and fair value:

	March 31, 2018									December 31, 2017
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Debt Securities Available for Sale, At Fair Value
U.S. Treasury and other		$12		$—		$—			$12		$12		$—		$—			$12
State and political subdivisions	6		—		—			6		6		—		—			6
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	20,257		19		(622		)	19,654		20,065		40		(277		)	19,828
Other/non-agency	288		5		(7		)	286		311		7		(7		)	311
Total mortgage-backed securities	20,545		24		(629		)	19,940		20,376		47		(284		)	20,139
Total debt securities available for sale, at fair value		$20,563		$24		($629	)		$19,958		$20,394		$47		($284	)		$20,157
Debt Securities Held to Maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities		$3,747		$—		($125	)		$3,622		$3,853		$7		($46	)		$3,814
Other/non-agency	808		10		(1		)	817		832		22		—			854
Total mortgage-backed securities	4,555		10		(126		)	4,439		4,685		29		(46		)	4,668
Total debt securities held to maturity		$4,555		$10		($126	)		$4,439		$4,685		$29		($46	)		$4,668
Equity Securities, at Fair Value
Money market mutual fund		$168		$—		$—			$168		$165		$—		$—			$165
Other investments	4		—		—			4		4		—		—			4
Total equity securities, at fair value		$172		$—		$—			$172		$169		$—		$—			$169
Equity Securities, at Cost
Federal Reserve Bank stock		$463		$—		$—			$463		$463		$—		$—			$463
Federal Home Loan Bank stock	278		—		—			278		252		—		—			252
Other equity securities	7		—		—			7		7		—		—			7
Total equity securities, at cost		$748		$—		$—			$748		$722		$—		$—			$722

Schedule of investments classified by maturity date

The amortized cost and fair value of debt securities by contractual maturity as of March 31, 2018 are presented below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without incurring penalties.

	March 31, 2018
	Distribution of Maturities
(in millions)	1 Year or Less		1-5 Years		5-10 Years		After 10 Years		Total
Amortized Cost:
Debt securities available for sale
U.S. Treasury and other		$12		$—		$—		$—		$12
State and political subdivisions	—		—		—		6		6
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		229		1,194		18,834		20,257
Other/non-agency	3		15		—		270		288
Total debt securities available for sale	15		244		1,194		19,110		20,563
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		3,747		3,747
Other/non-agency	—		—		—		808		808
Total debt securities held to maturity	—		—		—		4,555		4,555
Total amortized cost of debt securities		$15		$244		$1,194		$23,665		$25,118
Fair Value:
Debt securities available for sale
U.S. Treasury and other		$12		$—		$—		$—		$12
State and political subdivisions	—		—		—		6		6
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		227		1,174		18,253		19,654
Other/non-agency	3		15		—		268		286
Total debt securities available for sale	15		242		1,174		18,527		19,958
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		3,622		3,622
Other/non-agency	—		—		—		817		817
Total debt securities held to maturity	—		—		—		4,439		4,439
Total fair value of debt securities		$15		$242		$1,174		$22,966		$24,397

Schedule of income recognized on investment securities

Realized gains and losses on securities are presented below:

	Three Months Ended March 31,
(in millions)	2018		2017
Gains on sale of debt securities		$8		$4
Losses on sale of debt securities	—		—
Debt securities gains, net		$8		$4

Schedule of financial instruments owned and pledged as collateral

The amortized cost and fair value of debt securities pledged are presented below:

	March 31, 2018				December 31, 2017
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Pledged against repurchase agreements		$325		$316		$358		$357
Pledged against FHLB borrowed funds	814		822		839		861
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law	3,118		3,016		3,113		3,082

Schedule of unrealized loss on investments

The following tables present mortgage-backed debt securities whose fair values are below carrying values, segregated by those that have been in a continuous unrealized loss position for less than twelve months and those that have been in a continuous unrealized loss position for twelve months or longer:

	March 31, 2018
	Less than 12 Months						12 Months or Longer						Total
(dollars in millions)	Number of Issues	Fair Value		Gross Unrealized Losses			Number of Issues	Fair Value		Gross Unrealized Losses			Number of Issues	Fair Value		Gross Unrealized Losses
Federal agencies and U.S. government sponsored entities	414		$14,541		($352	)	154		$7,624		($395	)	568		$22,165		($747	)
Other/non-agency	9	154		(3		)	10	80		(5		)	19	234		(8		)
Total	423		$14,695		($355	)	164		$7,704		($400	)	587		$22,399		($755	)

	December 31, 2017
	Less than 12 Months						12 Months or Longer						Total
(dollars in millions)	Number of Issues	Fair Value		Gross Unrealized Losses			Number of Issues	Fair Value		Gross Unrealized Losses			Number of Issues	Fair Value		Gross Unrealized Losses
Federal agencies and U.S. government sponsored entities	294		$10,163		($97	)	152		$8,061		($226	)	446		$18,224		($323	)
Other/non-agency	6	55		(1		)	10	84		(6		)	16	139		(7		)
Total	300		$10,218		($98	)	162		$8,145		($232	)	462		$18,363		($330	)

Schedule of credit losses recognized in earnings

The following table presents the cumulative credit-related losses recognized in earnings on debt securities held by the Company:

	Three Months Ended March 31,
(in millions)	2018			2017
Cumulative balance at beginning of period		$80			$75
Credit impairments recognized in earnings on debt securities that have been previously impaired	1			1
Reductions due to increases in cash flow expectations on impaired debt securities(1)	(1		)	(1		)
Cumulative balance at end of period		$80			$75

⁽¹⁾ Reported in interest income from investment securities on the Consolidated Statements of Operations.