SECURITIES (Tables)

3 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

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



	March 31, 2019									December 31, 2018
(in millions)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
U.S. Treasury and other		$72		$—		$—			$72		$24		$—		$—			$24
State and political subdivisions	5		—		—			5		5		—		—			5
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	20,768		66		(337		)	20,497		20,211		28		(605		)	19,634
Other/non-agency	916		18		(4		)	930		236		3		(7		)	232
Total mortgage-backed securities, at fair value	21,684		84		(341		)	21,427		20,447		31		(612		)	19,866
Total debt securities available for sale, at fair value		$21,761		$84		($341	)		$21,504		$20,476		$31		($612	)		$19,895
Federal agencies and U.S. government sponsored entities		$3,345		$1		($79	)		$3,267		$3,425		$—		($132	)		$3,293
Other/non-agency	—		—		—			—		740		8		—			748
Total mortgage-backed securities, at cost	3,345		1		(79		)	3,267		4,165		8		(132		)	4,041
Total debt securities held to maturity		$3,345		$1		($79	)		$3,267		$4,165		$8		($132	)		$4,041
Money market mutual fund investments		$198		$—		$—			$198		$181		$—		$—			$181
Total equity securities, at fair value		$198		$—		$—			$198		$181		$—		$—			$181
Federal Reserve Bank stock		$463		$—		$—			$463		$463		$—		$—			$463
Federal Home Loan Bank stock	133		—		—			133		364		—		—			364
Other equity securities	8		—		—			8		7		—		—			7
Total equity securities, at cost		$604		$—		$—			$604		$834		$—		$—			$834

Schedule of investments classified by maturity date

The amortized cost and fair value of debt securities by contractual maturity as of March 31, 2019 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, 2019
	Distribution of Maturities
(in millions)	1 Year or Less		1-5 Years		5-10 Years		After 10 Years		Total
Amortized cost:
U.S. Treasury and other		$72		$—		$—		$—		$72
State and political subdivisions	—		—		—		5		5
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		251		1,641		18,876		20,768
Other/non-agency	2		8		—		906		916
Total debt securities available for sale	74		259		1,641		19,787		21,761
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		3,345		3,345
Total debt securities held to maturity	—		—		—		3,345		3,345
Total amortized cost of debt securities		$74		$259		$1,641		$23,132		$25,106

Fair value:
U.S. Treasury and other		$72		$—		$—		$—		$72
State and political subdivisions	—		—		—		5		5
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		247		1,634		18,616		20,497
Other/non-agency	2		8		—		920		930
Total debt securities available for sale	74		255		1,634		19,541		21,504
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—		—		—		3,267		3,267
Total debt securities held to maturity	—		—		—		3,267		3,267
Total fair value of debt securities		$74		$255		$1,634		$22,808		$24,771

Schedule of income recognized on investment securities

Realized gains and losses on securities are presented below:



	Three Months Ended March 31,
(in millions)	2019		2018
Gains on sale of debt securities		$8		$8
Losses on sale of debt securities	—		—
Debt securities gains, net		$8		$8

Schedule of financial instruments owned and pledged as collateral

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



	March 31, 2019				December 31, 2018
(in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Pledged against repurchase agreements		$294		$294		$344		$338
Pledged against FHLB borrowed funds	—		—		745		752
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law	3,306		3,248		3,592		3,460

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, 2019
	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	13		$569		($1	)	519		$17,548		($415	)	532		$18,117		($416	)
Other/non-agency	—	—		—			7	48		(4		)	7	48		(4		)
Total	13		$569		($1	)	526		$17,596		($419	)	539		$18,165		($420	)



	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	)

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)	2019			2018
Cumulative balance at beginning of period		$81			$80
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		)
Reductions for securities sold during the period⁽²⁾	(4		)	—
Cumulative balance at end of period		$78			$80

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

⁽²⁾Reported in securities gains, net on the Consolidated Statements of Operations.