Accumulated Other Comprehensive (Loss) Income

6 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive (Loss) Income

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

The following table details the components of Accumulated Other Comprehensive (Loss) Income (“AOCI”):

Components of Accumulated Other Comprehensive (Loss) Income


dollars in millions	June 30, 2023						December 31, 2022
	Pretax		Income Taxes		Net of Income Taxes		Pretax		Income Taxes		Net of Income Taxes
Unrealized loss on securities available for sale	$	(1,029)	$	248	$	(781)	$	(972)	$	233	$	(739)
Unrealized loss on securities available for sale transferred to held to maturity	(7)		2		(5)		(8)		2		(6)
Defined benefit pension items	18		(4)		14		13		(3)		10


Total accumulated other comprehensive loss	$	(1,018)	$	246	$	(772)	$	(967)	$	232	$	(735)

The following table details the changes in the components of AOCI, net of income taxes:

Changes in Accumulated Other Comprehensive (Loss) Income by Component


dollars in millions	Unrealized (loss) gain on securities available for sale		Unrealized (loss) gain on securities available for sale transferred to held to maturity		Net change in defined benefit pension items		Total accumulated other comprehensive (loss) income
Balance as of December 31, 2022	$	(739)	$	(6)	$	10	$	(735)
AOCI activity before reclassifications	(54)		—		4		(50)
Amounts reclassified from AOCI to earnings	12		1		—		13
Other comprehensive (loss) income for the period	(42)		1		4		(37)
Balance as of June 30, 2023	$	(781)	$	(5)	$	14	$	(772)

Balance as of December 31, 2021	$	(9)	$	(7)	$	26	$	10
AOCI activity before reclassifications	(481)		—		—		(481)
Amounts reclassified from AOCI to earnings	—		1		5		6
Other comprehensive (loss) income for the period	(481)		1		5		(475)
Balance as of June 30, 2022	$	(490)	$	(6)	$	31	$	(465)

Other Comprehensive Income

The amounts included in the Condensed Consolidated Statements of Comprehensive Income are net of income taxes. The following table presents the pretax and after-tax components of other comprehensive income:

Other Comprehensive Income (Loss) by Component


dollars in millions	Three Months Ended June 30,
	2023						2022
	Pretax		Income Taxes		Net of Income Taxes		Pretax		Income Taxes		Net of Income Taxes		Income Statement Line Items
Unrealized loss on securities available for sale:
AOCI activity before reclassifications	$	(134)	$	35	$	(99)	$	(216)	$	53	$	(163)
Amounts reclassified from AOCI to earnings	$	(1)	$	—	$	(1)	$	—	$	—	$	—	Provision for credit losses
Other comprehensive loss on securities available for sale	$	(135)	$	35	$	(100)	$	(216)	$	53	$	(163)

Unrealized loss on securities available for sale transferred to held to maturity:
AOCI activity before reclassifications	$	—	$	—	$	—	$	—	$	—	$	—
Amounts reclassified from AOCI to earnings	1		—		1		—		—		—		Interest on investment securities
Other comprehensive income on securities available for sale transferred to held to maturity	$	1	$	—	$	1	$	—	$	—	$	—

Defined benefit pension items:
Actuarial loss	$	(5)	$	1	$	(4)	$	—	$	—	$	—
Amounts reclassified from AOCI to earnings	—		—		—		4		(1)		3		Other noninterest expense
Other comprehensive (loss) income for defined benefit pension items	$	(5)	$	1	$	(4)	$	4	$	(1)	$	3










Total other comprehensive loss	$	(139)	$	36	$	(103)	$	(212)	$	52	$	(160)


dollars in millions	Six Months Ended June 30,
	2023						2022
	Pretax		Income Taxes		Net of Income Taxes		Pretax		Income Taxes		Net of Income Taxes		Income Statement Line Items
Unrealized loss on securities available for sale:
AOCI activity before reclassifications	$	(74)	$	20	$	(54)	$	(635)	$	154	$	(481)
Amounts reclassified from AOCI to earnings	$	17	$	(5)	$	12	$	—	$	—	$	—	$14 realized loss on sales of investment securities available for sale, net; $3 provision for credit losses
Other comprehensive loss on securities available for sale	$	(57)	$	15	$	(42)	$	(635)	$	154	$	(481)

Unrealized loss on securities available for sale transferred to held to maturity:
AOCI activity before reclassifications	$	—	$	—	$	—	$	—	$	—	$	—
Amounts reclassified from AOCI to earnings	1		—		1		1		—		1		Interest on investment securities
Other comprehensive income on securities available for sale transferred to held to maturity	$	1	$	—	$	1	$	1	$	—	$	1

Defined benefit pension items:
Actuarial loss	$	5	$	(1)	$	4	$	—	$	—	$	—
Amounts reclassified from AOCI to earnings	—		—		—		7		(2)		5		Other noninterest expense
Other comprehensive income for defined benefit pension items	$	5	$	(1)	$	4	$	7	$	(2)	$	5










Total other comprehensive loss	$	(51)	$	14	$	(37)	$	(627)	$	152	$	(475)