SECURITIES (Tables)

6 Months Ended

Jun. 30, 2022

Investments, Debt and Equity Securities [Abstract]

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


	June 30, 2022				December 31, 2021
(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	$3,455	$1	($48)	$3,408	$11	$—	$—	$11
State and political subdivisions	3	—	—	3	2	—	—	2
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	21,568	4	(1,483)	20,089	24,607	210	(375)	24,442
Other/non-agency	281	—	(20)	261	397	9	(1)	405
Total mortgage-backed securities	21,849	4	(1,503)	20,350	25,004	219	(376)	24,847
Collateralized loan obligations	1,248	—	(48)	1,200	1,208	—	(1)	1,207
Total debt securities available for sale, at fair value	$26,555	$5	($1,599)	$24,961	$26,225	$219	($377)	$26,067
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	$8,921	$25	($199)	$8,747	$1,505	$52	$—	$1,557
Total mortgage-backed securities	8,921	25	(199)	8,747	1,505	52	—	1,557
Asset-backed securities	646	—	(32)	614	737	2	(7)	732
Total debt securities held to maturity	$9,567	$25	($231)	$9,361	$2,242	$54	($7)	$2,289
Equity securities, at cost	$1,162	$—	$—	$1,162	$624	$—	$—	$624
Equity securities, at fair value	138	—	—	138	109	—	—	109

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 June 30, 2022. 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	After 1 Year through 5 Years	After 5 Years through 10 Years	After 10 Years	Total
Amortized cost:
U.S. Treasury and other	$11	$1,911	$1,533		$3,455
State and political subdivisions	1	—	—	2	3
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	4	584	2,879	18,101	21,568
Other/non-agency	—	—	—	281	281
Collateralized loan obligations	—	—	25	1,223	1,248
Total debt securities available for sale	16	2,495	4,437	19,607	26,555
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	8,921	8,921
Asset-backed securities	—	—	646	—	646
Total debt securities held to maturity	—	—	646	8,921	9,567
Total amortized cost of debt securities	$16	$2,495	$5,083	$28,528	$36,122

Fair value:
U.S. Treasury and other	$11	$1,881	$1,516	$—	$3,408
State and political subdivisions	1	—	—	2	3
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	4	576	2,783	16,726	20,089
Other/non-agency	—	—	—	261	261
Collateralized loan obligations	—	—	23	1,177	1,200
Total debt securities available for sale	16	2,457	4,322	18,166	24,961
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	8,747	8,747
Asset-backed securities	—	—	614	—	614
Total debt securities held to maturity	—	—	614	8,747	9,361
Total fair value of debt securities	$16	$2,457	$4,936	$26,913	$34,322

Schedule of income recognized on investment securities

The following table presents realized gains and losses on securities:


	Three Months Ended June 30,		Six Months Ended June 30,
(in millions)	2022	2021	2022	2021
Gains on sale of securities	$2	$3	$9	$6
Losses on sale of securities	(1)	—	(4)	—
Securities gains, net	$1	$3	$5	$6

Schedule of financial instruments owned and pledged as collateral

The following table presents the amortized cost and fair value of debt securities pledged:


	June 30, 2022		December 31, 2021
(in millions)	Amortized Cost	Fair Value	Amortized Cost	Fair Value
Pledged against derivatives, to qualify for fiduciary powers, and to secure public and other deposits as required by law	$5,763	$5,351	$4,816	$4,782
Pledged as collateral for FHLB borrowing capacity	245	225	325	333
Pledged against repurchase agreements	—	—	1	1

Schedule of unrealized loss on investments

The following tables present AFS debt securities with fair values below their respective carrying values, separated by the duration the securities have been in a continuous unrealized loss position:


	June 30, 2022
	Less than 12 Months		12 Months or Longer		Total
(dollars in millions)	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
U.S. Treasury and other	$3,236	($48)	$—	$—	$3,236	($48)
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	18,048	(1,214)	1,498	(269)	19,546	(1,483)
Other/non-agency	261	(20)	—	—	261	(20)
Total mortgage-backed securities	18,309	(1,234)	1,498	(269)	19,807	(1,503)
Collateralized loan obligations	1,201	(48)	—	—	1,201	(48)
Total	$22,746	($1,330)	$1,498	($269)	$24,244	($1,599)


	December 31, 2021
	Less than 12 Months		12 Months or Longer		Total
(dollars in millions)	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	$14,131	($320)	$1,236	($55)	$15,367	($375)
Other/non-agency	123	(1)	—	—	123	(1)
Total mortgage-backed securities	14,254	(321)	1,236	(55)	15,490	(376)
Collateralized loan obligations	736	(1)	—	—	736	(1)
Total	$14,990	($322)	$1,236	($55)	$16,226	($377)