SECURITIES (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

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


	March 31, 2023				December 31, 2022
(dollars 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	$3,378	$—	($126)	$3,252	$3,678	$1	($193)	$3,486
State and political subdivisions	2	—	—	2	2	—	—	2
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	20,957	20	(1,852)	19,125	21,250	10	(2,198)	19,062
Other/non-agency	280	—	(29)	251	280	—	(29)	251
Total mortgage-backed securities	21,237	20	(1,881)	19,376	21,530	10	(2,227)	19,313
Collateralized loan obligations	1,248	—	(33)	1,215	1,248	—	(42)	1,206
Total debt securities available for sale, at fair value	$25,865	$20	($2,040)	$23,845	$26,458	$11	($2,462)	$24,007
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	$9,125	$14	($599)	$8,540	$9,253	$4	($751)	$8,506
Total mortgage-backed securities	9,125	14	(599)	8,540	9,253	4	(751)	8,506
Asset-backed securities	552	2	(30)	524	581	—	(45)	536
Total debt securities held to maturity	$9,677	$16	($629)	$9,064	$9,834	$4	($796)	$9,042
Equity securities, at cost	$1,228	$—	$—	$1,228	$1,058	$—	$—	$1,058
Equity securities, at fair value	143	—	—	143	153	—	—	153

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 March 31, 2023. 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
(dollars 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	$—	$2,137	$1,241	$—	$3,378
State and political subdivisions		—	—	2	2
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	1,145	2,670	17,142	20,957
Other/non-agency	—	—	—	280	280
Collateralized loan obligations	—	—	24	1,224	1,248
Total debt securities available for sale	—	3,282	3,935	18,648	25,865
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	9,125	9,125
Asset-backed securities	—	552	—	—	552
Total debt securities held to maturity	—	552	—	9,125	9,677
Total amortized cost of debt securities	$—	$3,834	$3,935	$27,773	$35,542

Fair value:
U.S. Treasury and other	$—	$2,059	$1,193	$—	$3,252
State and political subdivisions	—	—	—	2	2
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	1,102	2,532	15,491	19,125
Other/non-agency	—	—	—	251	251
Collateralized loan obligations	—	—	24	1,191	1,215
Total debt securities available for sale	—	3,161	3,749	16,935	23,845
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	8,540	8,540
Asset-backed securities	—	524	—	—	524
Total debt securities held to maturity	—	524	—	8,540	9,064
Total fair value of debt securities	$—	$3,685	$3,749	$25,475	$32,909

Schedule of income recognized on investment securities

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


	Three Months Ended March 31,
(dollars in millions)		2023	2022
Gains		$9	$7
Losses		(4)	(3)
Securities gains, net		$5	$4

Schedule of financial instruments owned and pledged as collateral

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


	March 31, 2023		December 31, 2022
(dollars in millions)	Amortized Cost	Fair Value	Amortized Cost	Fair Value
Pledged against derivatives, to qualify for fiduciary powers, or to secure public and other deposits as required by law	$4,079	$3,701	$3,966	$3,527
Pledged as collateral for FHLB borrowing capacity	243	217	244	217
Pledged against repurchase agreements	1,162	1,132	—	—

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:


	March 31, 2023
	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	$3,114	($116)	$138	($10)	$3,252	($126)
State and political subdivisions	1	—	—	—	1	—
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	7,101	(302)	11,185	(1,550)	18,286	(1,852)
Other/non-agency	34	(3)	217	(26)	251	(29)
Total mortgage-backed securities	7,135	(305)	11,402	(1,576)	18,537	(1,881)
Collateralized loan obligations	39	—	1,176	(33)	1,215	(33)
Total	$10,289	($421)	$12,716	($1,619)	$23,005	($2,040)


	December 31, 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	$3,356	($193)	$—	$—	$3,356	($193)
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	13,353	(1,136)	5,042	(1,062)	18,395	(2,198)
Other/non-agency	80	(8)	171	(21)	251	(29)
Total mortgage-backed securities	13,433	(1,144)	5,213	(1,083)	18,646	(2,227)
Collateralized loan obligations	785	(26)	421	(16)	1,206	(42)
Total	$17,574	($1,363)	$5,634	($1,099)	$23,208	($2,462)