SECURITIES (Tables)

6 Months Ended

Jun. 30, 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:

	June 30, 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	20,559		17		(705		)	19,871		20,065		40		(277		)	19,828
Other/non-agency	269		5		(6		)	268		311		7		(7		)	311
Total mortgage-backed securities	20,828		22		(711		)	20,139		20,376		47		(284		)	20,139
Total debt securities available for sale, at fair value		$20,846		$22		($711	)		$20,157		$20,394		$47		($284	)		$20,157
Debt Securities Held to Maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities		$3,632		$—		($159	)		$3,473		$3,853		$7		($46	)		$3,814
Other/non-agency	785		5		(3		)	787		832		22		—			854
Total mortgage-backed securities	4,417		5		(162		)	4,260		4,685		29		(46		)	4,668
Total debt securities held to maturity		$4,417		$5		($162	)		$4,260		$4,685		$29		($46	)		$4,668
Equity Securities, at Fair Value
Money market mutual fund investments		$170		$—		$—			$170		$165		$—		$—			$165
Other investments	—		—		—			—		4		—		—			4
Total equity securities, at fair value		$170		$—		$—			$170		$169		$—		$—			$169
Equity Securities, at Cost
Federal Reserve Bank stock		$463		$—		$—			$463		$463		$—		$—			$463
Federal Home Loan Bank stock	299		—		—			299		252		—		—			252
Other equity securities	7		—		—			7		7		—		—			7
Total equity securities, at cost		$769		$—		$—			$769		$722		$—		$—			$722

Schedule of investments classified by maturity date

The amortized cost and fair value of debt securities by contractual maturity as of June 30, 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.

	June 30, 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	—		326		1,402		18,831		20,559
Other/non-agency	2		13		—		254		269
Total debt securities available for sale	14		339		1,402		19,091		20,846
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		3,632		3,632
Other/non-agency	—		—		—		785		785
Total debt securities held to maturity	—		—		—		4,417		4,417
Total amortized cost of debt securities		$14		$339		$1,402		$23,508		$25,263
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	—		321		1,372		18,178		19,871
Other/non-agency	2		13		—		253		268
Total debt securities available for sale	14		334		1,372		18,437		20,157
Debt securities held to maturity
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		3,473		3,473
Other/non-agency	—		—		—		787		787
Total debt securities held to maturity	—		—		—		4,260		4,260
Total fair value of debt securities		$14		$334		$1,372		$22,697		$24,417

Schedule of income recognized on investment securities

Realized gains and losses on securities are presented below:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2018		2017		2018		2017
Gains on sale of debt securities		$2		$3		$10		$7
Losses on sale of debt securities	—		—		—		—
Debt securities gains, net		$2		$3		$10		$7
Equity securities gains		$—		$1		$—		$1

Schedule of financial instruments owned and pledged as collateral

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

	June 30, 2018				December 31, 2017
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Pledged against repurchase agreements		$341		$328		$358		$357
Pledged against FHLB borrowed funds	791		792		839		861
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law	4,136		3,978		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:

	June 30, 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	434		$14,384		($434	)	155		$7,358		($430	)	589		$21,742		($864	)
Other/non-agency	11	285		(3		)	10	76		(6		)	21	361		(9		)
Total	445		$14,669		($437	)	165		$7,434		($436	)	610		$22,103		($873	)

	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 June 30,				Six Months Ended June 30,
(in millions)	2018		2017		2018			2017
Cumulative balance at beginning of period		$80		$75		$80			$75
Credit impairments recognized in earnings on debt securities that have been previously impaired	1		4		2			5
Reductions due to increases in cash flow expectations on impaired debt securities(1)	—		—		(1		)	(1		)
Cumulative balance at end of period		$81		$79		$81			$79

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