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SECURITIES (Tables)
 12 Months Ended
Dec. 31, 2019
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, 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

$71


$—


$—


$71

 

$24


$—


$—


$24

State and political subdivisions
5

—

—

5

 
5

—

—

5

Mortgage-backed securities, at fair value:
 
 
 
 
 
 
 
 
 
Federal agencies and U.S. government sponsored entities
19,803

143

(71
)
19,875

 
20,211

28

(605
)
19,634

Other/non-agency
638

24

—

662

 
236

3

(7
)
232

Total mortgage-backed
securities, at fair value
20,441

167

(71
)
20,537

 
20,447

31

(612
)
19,866

Total debt securities available for sale, at fair value

$20,517


$167


($71
)

$20,613

 

$20,476


$31


($612
)

$19,895

Federal agencies and U.S. government sponsored entities

$3,202


$45


($5
)

$3,242

 

$3,425


$—


($132
)

$3,293

Other/non-agency
—

—

—

—

 
740

8

—

748

Total mortgage-backed
securities, at cost
3,202

45

(5
)
3,242

 
4,165

8

(132
)
4,041

Total debt securities held to maturity

$3,202


$45


($5
)

$3,242

 

$4,165


$8


($132
)

$4,041

Money market mutual fund investments

$47


$—


$—


$47

 

$181


$—


$—


$181

Total equity securities, at fair value

$47


$—


$—


$47

 

$181


$—


$—


$181

Federal Reserve Bank stock

$577


$—


$—


$577

 

$463


$—


$—


$463

Federal Home Loan Bank stock
222

—

—

222

 
364

—

—

364

Other equity securities
8

—

—

8

 
7

—

—

7

Total equity securities, at cost

$807


$—


$—


$807

 

$834


$—


$—


$834
Schedule of investments classified by maturity date
The following table presents the amortized cost and fair value of debt securities by contractual maturity as of December 31, 2019. 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:
 
 
 
 
 
U.S. Treasury and other

$71


$—


$—


$—


$71

State and political subdivisions
—

—

—

5

5

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

215

1,534

18,054

19,803

Other/non-agency
—

—

—

638

638

Total debt securities available for sale
71

215

1,534

18,697

20,517

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

—

—

3,202

3,202

Other/non-agency
—

—

—

—

—

Total debt securities held to maturity
—

—

—

3,202

3,202

Total amortized cost of debt securities

$71


$215


$1,534


$21,899


$23,719

 
 
 
 
 
 
Fair value:
 
 
 
 
 
U.S. Treasury and other

$71


$—


$—


$—


$71

State and political subdivisions
—

—

—

5

5

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

217

1,553

18,105

19,875

Other/non-agency
—

—

—

662

662

Total debt securities available for sale
71

217

1,553

18,772

20,613

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

—

—

3,242

3,242

Total debt securities held to maturity
—

—

—

3,242

3,242

Total fair value of debt securities

$71


$217


$1,553


$22,014


$23,855
Schedule of income recognized on investment securities
The following table presents realized gains and losses on securities:
 
Year Ended December 31,
(in millions)
2019

 
2018

 
2017

Gains on sale of debt securities (1)

$41

 

$19

 

$11

Losses on sale of debt securities
(16
)
 
—

 
—

Debt securities gains, net

$25

 

$19

 

$11

Equity securities gains

$—

 

$—

 

$1


(1) For the year ended December 31, 2019, $6 million of gains on sale of debt securities were recognized in mortgage banking fees in the Consolidated Statements of Operations, as they related to AFS securities held as economic hedges of the value of the MSR portfolio recognized using the amortization method.    
Schedule of financial instruments owned and pledged as collateral
The following table presents the amortized cost and fair value of debt securities pledged:
 
December 31, 2019
 
December 31, 2018
(in millions)
Amortized Cost
Fair Value
 
Amortized Cost
Fair Value
Pledged against repurchase agreements

$265


$266

 

$344


$338

Pledged against FHLB borrowed funds
638

662

 
745

752

Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law
3,670

3,672

 
3,592

3,460
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)
2019

 
2018

 
2017

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

($2
)
 

($7
)
 

($7
)
      Portions of loss recognized in other comprehensive income (before taxes)
—

 
4

 
—

Net securities impairment losses recognized in earnings on debt securities

($2
)
 

($3
)
 

($7
)
Schedule of unrealized loss on investments
The following tables present mortgage-backed debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position:
 
December 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
106


$5,135


($24
)
 
120


$3,748


($52
)
 
226


$8,883


($76
)
Other/non-agency
—

—

—

 
—

—

—

 
—

—

—

Total
106


$5,135


($24
)
 
120


$3,748


($52
)
 
226


$8,883


($76
)

 
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
)