SECURITIES (Tables)

6 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

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


	June 30, 2023				December 31, 2022
(dollars in millions)	Amortized Cost(1)	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value	Amortized Cost	Gross Unrealized Gains	Gross Unrealized Losses	Fair Value
U.S. Treasury and other	$3,429	$—	($193)	$3,236	$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	22,154	4	(2,116)	20,042	21,250	10	(2,198)	19,062
Other/non-agency	279	—	(32)	247	280	—	(29)	251
Total mortgage-backed securities	22,433	4	(2,148)	20,289	21,530	10	(2,227)	19,313
Collateralized loan obligations	1,248	—	(20)	1,228	1,248	—	(42)	1,206
Total debt securities available for sale, at fair value	$27,112	$4	($2,361)	$24,755	$26,458	$11	($2,462)	$24,007
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	$8,990	$4	($769)	$8,225	$9,253	$4	($751)	$8,506
Total mortgage-backed securities	8,990	4	(769)	8,225	9,253	4	(751)	8,506
Asset-backed securities	530	2	(29)	503	581	—	(45)	536
Total debt securities held to maturity	$9,520	$6	($798)	$8,728	$9,834	$4	($796)	$9,042
Equity securities, at cost	$917	$—	$—	$917	$1,058	$—	$—	$1,058
Equity securities, at fair value	147	—	—	147	153	—	—	153

(1) Excludes portfolio level basis adjustments of $9 million for securities designated in active fair value hedge relationships. The basis adjustments represent a reduction to the amortized cost of the securities being hedged.

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, 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	$—	$2,489	$940	$—	$3,429
State and political subdivisions		—	—	2	2
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	1,295	2,530	18,329	22,154
Other/non-agency	—	—	—	279	279
Collateralized loan obligations	—	—	24	1,224	1,248
Total debt securities available for sale	—	3,784	3,494	19,834	27,112
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	8,990	8,990
Asset-backed securities	—	530	—	—	530
Total debt securities held to maturity	—	530	—	8,990	9,520
Total amortized cost of debt securities	$—	$4,314	$3,494	$28,824	$36,632

Fair value:
U.S. Treasury and other	$—	$2,351	$885	$—	$3,236
State and political subdivisions	—	—	—	2	2
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	1,229	2,361	16,452	20,042
Other/non-agency	—	—	—	247	247
Collateralized loan obligations	—	—	24	1,204	1,228
Total debt securities available for sale	—	3,580	3,270	17,905	24,755
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	—	—	—	8,225	8,225
Asset-backed securities	—	503	—	—	503
Total debt securities held to maturity	—	503	—	8,225	8,728
Total fair value of debt securities	$—	$4,083	$3,270	$26,130	$33,483

Schedule of income recognized on investment securities

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


	Three Months Ended June 30,		Six Months Ended June 30,
(dollars in millions)	2023	2022	2023	2022
Gains	$9	$2	$18	$9
Losses	—	(1)	(4)	(4)
Securities gains, net	$9	$1	$14	$5

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, 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	$5,336	$4,762	$3,966	$3,527
Pledged as collateral for FHLB borrowing capacity	243	214	244	217
Pledged against repurchase agreements	1,248	1,228	—	—

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, 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	$2,983	($173)	$253	($20)	$3,236	($193)
State and political subdivisions	2	—	—	—	2	—
Mortgage-backed securities:
Federal agencies and U.S. government sponsored entities	7,552	(351)	11,771	(1,765)	19,323	(2,116)
Other/non-agency	—	—	247	(32)	247	(32)
Total mortgage-backed securities	7,552	(351)	12,018	(1,797)	19,570	(2,148)
Collateralized loan obligations	—	—	1,228	(20)	1,228	(20)
Total	$10,537	($524)	$13,499	($1,837)	$24,036	($2,361)


	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)