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SECURITIES (Tables)
 12 Months Ended
Dec. 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:
 
December 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

$24


$—


$—


$24

 

$12


$—


$—


$12

State and political subdivisions
5

—

—

5

 
6

—

—

6

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
20,211

28

(605
)
19,634

 
20,065

40

(277
)
19,828

Other/non-agency
236

3

(7
)
232

 
311

7

(7
)
311

Total mortgage-backed
securities
20,447

31

(612
)
19,866

 
20,376

47

(284
)
20,139

Total debt securities available for sale, at fair value

$20,476


$31


($612
)

$19,895

 

$20,394


$47


($284
)

$20,157

Debt Securities Held to Maturity
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
Federal agencies and U.S. government sponsored entities

$3,425


$—


($132
)

$3,293

 

$3,853


$7


($46
)

$3,814

Other/non-agency
740

8

—

748

 
832

22

—

854

Total mortgage-backed
securities
4,165

8

(132
)
4,041

 
4,685

29

(46
)
4,668

Total debt securities held to maturity

$4,165


$8


($132
)

$4,041

 

$4,685


$29


($46
)

$4,668

Equity Securities, at Fair Value
 
 
 
 
 
 
 
 
 
Money market mutual fund investments

$181


$—


$—


$181

 

$165


$—


$—


$165

Other investments
—

—

—

—

 
4

—

—

4

Total equity securities, at fair value

$181


$—


$—


$181

 

$169


$—


$—


$169

Equity Securities, at Cost
 
 
 
 
 
 
 
 
 
Federal Reserve Bank stock

$463


$—


$—


$463

 

$463


$—


$—


$463

Federal Home Loan Bank stock
364

—

—

364

 
252

—

—

252

Other equity securities
7

—

—

7

 
7

—

—

7

Total equity securities, at cost

$834


$—


$—


$834

 

$722


$—


$—


$722
Schedule of investments classified by maturity date
The amortized cost and fair value of debt securities by contractual maturity 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.
 
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

$24


$—


$—


$—


$24

State and political subdivisions
—

—

—

5

5

Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

281

1,540

18,390

20,211

Other/non-agency
1

10

—

225

236

Total debt securities available for sale
25

291

1,540

18,620

20,476

Debt securities held to maturity:
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

—

—

3,425

3,425

Other/non-agency
—

—

—

740

740

Total debt securities held to maturity
—

—

—

4,165

4,165

Total amortized cost of debt securities

$25


$291


$1,540


$22,785


$24,641

 
 
 
 
 
 
Fair Value:
 
 
 
 
 
Debt securities available for sale
 
 
 
 
 
U.S. Treasury and other

$24


$—


$—


$—


$24

State and political subdivisions
—

—

—

5

5

Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

274

1,505

17,855

19,634

Other/non-agency
1

10

—

221

232

Total debt securities available for sale
25

284

1,505

18,081

19,895

Debt securities held to maturity
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
—

—

—

3,293

3,293

Other/non-agency
—

—

—

748

748

Total debt securities held to maturity
—

—

—

4,041

4,041

Total fair value of debt securities

$25


$284


$1,505


$22,122


$23,936
Schedule of income recognized on investment securities
Realized gains and losses on securities are presented below:
 
Year Ended December 31,
(in millions)
2018

 
2017

 
2016

Gains on sale of debt securities

$19

 

$11

 

$18

Losses on sale of debt securities
—

 
—

 
(2
)
Debt securities gains, net

$19

 

$11

 

$16

Equity securities gains

$—

 

$1

 

$3
Schedule of financial instruments owned and pledged as collateral
The amortized cost and fair value of debt securities pledged are presented below:
 
December 31, 2018
 
December 31, 2017
(in millions)
Amortized Cost
Fair Value

 
Amortized Cost
Fair Value

Pledged against repurchase agreements

$344


$338

 

$358


$357

Pledged against FHLB borrowed funds
745

752

 
839

861

Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law
3,592

3,460

 
3,113

3,082
Other than temporary impairment recognized in earnings
The following table presents the net securities impairment losses recognized in earnings:
 
Year Ended December 31,
(in millions)
2018

 
2017

 
2016

Other-than-temporary impairment:
 
 
 
 
 
Total other-than-temporary impairment losses

($7
)
 

($7
)
 

($39
)
      Portions of loss recognized in other comprehensive income (before taxes)
4

 
—

 
27

Net securities impairment losses recognized in earnings

($3
)
 

($7
)
 

($12
)
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:
 
December 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
166


$4,881


($89
)
 
429


$15,124


($648
)
 
595


$20,005


($737
)
Other/non-agency
10

139

(1
)
 
11

72

(6
)
 
21

211

(7
)
Total
176


$5,020


($90
)
 
440


$15,196


($654
)
 
616


$20,216


($744
)

 
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:
 
Year Ended December 31,
(in millions)
2018

 
2017

 
2016

Cumulative balance at beginning of period

$80

 

$75

 

$66

Credit impairments recognized in earnings on debt securities that have been previously impaired
3

 
7

 
12

Reductions due to increases in cash flow expectations on impaired debt securities (1)
(2
)
 
(2
)
 
(3
)
Cumulative balance at end of period

$81

 

$80

 

$75


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