SECURITIES (Tables)

9 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

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


	September 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	$3,557	$—	($207)	$3,350	$11	$—	$—	$11
State and political subdivisions	3	—	—	3	2	—	—	2
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	21,019	—	(2,335)	18,684	24,607	210	(375)	24,442
Other/non-agency	281	—	(32)	249	397	9	(1)	405
Total mortgage-backed securities	21,300	—	(2,367)	18,933	25,004	219	(376)	24,847
Collateralized loan obligations	1,248	—	(56)	1,192	1,208	—	(1)	1,207
Total debt securities available for sale, at fair value	$26,108	$—	($2,630)	$23,478	$26,225	$219	($377)	$26,067
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	$9,457	$4	($657)	$8,804	$1,505	$52	$—	$1,557
Total mortgage-backed securities	9,457	4	(657)	8,804	1,505	52	—	1,557
Asset-backed securities	614	—	(45)	569	737	2	(7)	732
Total debt securities held to maturity	$10,071	$4	($702)	$9,373	$2,242	$54	($7)	$2,289
Equity securities, at cost	$1,113	$—	$—	$1,113	$624	$—	$—	$624
Equity securities, at fair value	151	—	—	151	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 September 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	$10	$1,983	$1,564	$—	$3,557
State and political subdivisions	1	—	—	2	3
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	3	939	2,954	17,123	21,019
Other/non-agency	—	—	—	281	281
Collateralized loan obligations	—	—	24	1,224	1,248
Total debt securities available for sale	14	2,922	4,542	18,630	26,108
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	9,457	9,457
Asset-backed securities	—	614	—	—	614
Total debt securities held to maturity	—	614	—	9,457	10,071
Total amortized cost of debt securities	$14	$3,536	$4,542	$28,087	$36,179

Fair value:
U.S. Treasury and other	$10	$1,871	$1,469	$—	$3,350
State and political subdivisions	1	—	—	2	3
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	2	890	2,713	15,079	18,684
Other/non-agency	—	—	—	249	249
Collateralized loan obligations	—	—	23	1,169	1,192
Total debt securities available for sale	13	2,761	4,205	16,499	23,478
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	8,804	8,804
Asset-backed securities	—	569	—	—	569
Total debt securities held to maturity	—	569	—	8,804	9,373
Total fair value of debt securities	$13	$3,330	$4,205	$25,303	$32,851

Schedule of income recognized on investment securities

The following table presents realized gains and losses on sale of securities:


	Three Months Ended September 30,		Nine Months Ended September 30,
(in millions)	2022	2021	2022	2021
Gains	$—	$3	$9	$9
Losses	—	—	(4)	—
Securities gains, net	$—	$3	$5	$9

Schedule of financial instruments owned and pledged as collateral

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


	September 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	$3,910	$3,457	$4,816	$4,782
Pledged as collateral for FHLB borrowing capacity	244	214	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:


	September 30, 2022
	Less than 12 Months		12 Months or Longer		Total
(in millions)	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses	Fair Value	Gross Unrealized Losses
U.S. Treasury and other	$3,350	($207)	$—	$—	$3,350	($207)
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	15,913	(1,687)	2,756	(648)	18,669	(2,335)
Other/non-agency	248	(32)	—	—	248	(32)
Total mortgage-backed securities	16,161	(1,719)	2,756	(648)	18,917	(2,367)
Collateralized loan obligations	1,183	(55)	9	(1)	1,192	(56)
Total	$20,694	($1,981)	$2,765	($649)	$23,459	($2,630)


	December 31, 2021
	Less than 12 Months		12 Months or Longer		Total
(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)