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Securities (Tables)
 9 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost and Fair Value of the Securities Available-for-Sale and Held-to-Maturity
Our securities available-for-sale and securities held-to-maturity portfolios consisted of the following:
September 30, 2018
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
(in millions)
Securities available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury
$
14,265

 
$
127

 
$
(472
)
 
$
13,920

U.S. Government sponsored enterprises:
 
 
 
 
 
 
 
Mortgage-backed securities
5,605

 
(1
)
 
(243
)
 
5,361

Collateralized mortgage obligations
688

 
—

 
(47
)
 
641

Direct agency obligations
3,004

 
41

 
(3
)
 
3,042

U.S. Government agency issued or guaranteed:
 
 
 
 
 
 
 
Mortgage-backed securities
4,559

 
—

 
(208
)
 
4,351

Collateralized mortgage obligations
1,102

 
—

 
(37
)
 
1,065

Direct agency obligations
335

 
14

 
—

 
349

Asset-backed securities collateralized by:
 
 
 
 
 
 
 
Home equity
46

 
—

 
(2
)
 
44

Other
99

 
6

 
—

 
105

Foreign debt securities(1)
2,451

 
1

 
(1
)
 
2,451

Total available-for-sale securities
$
32,154

 
$
188

 
$
(1,013
)
 
$
31,329

Securities held-to-maturity:
 
 
 
 
 
 
 
U.S. Government sponsored enterprises:
 
 
 
 
 
 
 
Mortgage-backed securities
$
1,865

 
$
1

 
$
(59
)
 
$
1,807

Collateralized mortgage obligations
1,952

 
26

 
(42
)
 
1,936

U.S. Government agency issued or guaranteed:
 
 
 
 
 
 
 
Mortgage-backed securities
2,181

 
2

 
(93
)
 
2,090

Collateralized mortgage obligations
8,878

 
10

 
(289
)
 
8,599

Obligations of U.S. states and political subdivisions
11

 
—

 
—

 
11

Asset-backed securities collateralized by residential mortgages
2

 
—

 
—

 
2

Total held-to-maturity securities
$
14,889

 
$
39

 
$
(483
)
 
$
14,445

December 31, 2017
Amortized
Cost
 
Unrealized
Gains
 
Unrealized
Losses
 
Fair
Value
 
(in millions)
Securities available-for-sale:
 
 
 
 
 
 
 
U.S. Treasury
$
15,340

 
$
153

 
$
(329
)
 
$
15,164

U.S. Government sponsored enterprises:
 
 
 
 
 
 
 
Mortgage-backed securities
3,616

 
—

 
(77
)
 
3,539

Collateralized mortgage obligations
648

 
—

 
(24
)
 
624

Direct agency obligations
3,369

 
85

 
—

 
3,454

U.S. Government agency issued or guaranteed:
 
 
 
 
 
 
 
Mortgage-backed securities
5,152

 
1

 
(87
)
 
5,066

Collateralized mortgage obligations
792

 
1

 
(18
)
 
775

Direct agency obligations
419

 
19

 
—

 
438

Asset-backed securities collateralized by:
 
 
 
 
 
 
 
Home equity
54

 
—

 
(3
)
 
51

Other
506

 
4

 
—

 
510

Foreign debt securities(1)
902

 
—

 
—

 
902

Equity securities
183

 
—

 
(6
)
 
177

Total available-for-sale securities
$
30,981

 
$
263

 
$
(544
)
 
$
30,700

Securities held-to-maturity:
 
 
 
 
 
 
 
U.S. Government sponsored enterprises:
 
 
 
 
 
 
 
Mortgage-backed securities
$
2,113

 
$
10

 
$
(12
)
 
$
2,111

Collateralized mortgage obligations
1,281

 
41

 
(18
)
 
1,304

U.S. Government agency issued or guaranteed:
 
 
 
 
 
 
 
Mortgage-backed securities
2,485

 
4

 
(13
)
 
2,476

Collateralized mortgage obligations
8,083

 
18

 
(106
)
 
7,995

Obligations of U.S. states and political subdivisions
12

 
1

 
—

 
13

Asset-backed securities collateralized by residential mortgages
3

 
—

 
—

 
3

Total held-to-maturity securities
$
13,977

 
$
74

 
$
(149
)
 
$
13,902

 
(1) 
Foreign debt securities represent public sector entity, bank or corporate debt.
Gross Unrealized Losses and Related Fair Value
The following table summarizes gross unrealized losses and related fair values at September 30, 2018 and December 31, 2017 classified as to the length of time the losses have existed:
 
One Year or Less
 
Greater Than One Year
September 30, 2018
Number
of
Securities
 
Gross
Unrealized
Losses
 
Aggregate
Fair Value
of Investment
 
Number
of
Securities
 
Gross
Unrealized
Losses
 
Aggregate
Fair Value
of Investment
 
(dollars are in millions)
Securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
11

 
$
(26
)
 
$
1,967

 
39

 
$
(446
)
 
$
8,738

U.S. Government sponsored enterprises
246

 
(65
)
 
3,039

 
94

 
(228
)
 
3,036

U.S. Government agency issued or guaranteed
43

 
(162
)
 
4,058

 
43

 
(83
)
 
1,264

Asset-backed securities
1

 
—

 
—

 
4

 
(2
)
 
44

Foreign debt securities
13

 
(1
)
 
1,045

 
1

 
—

 
44

Securities available-for-sale
314

 
$
(254
)
 
$
10,109

 
181

 
$
(759
)
 
$
13,126

Securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored enterprises
339

 
$
(52
)
 
$
2,488

 
279

 
$
(49
)
 
$
920

U.S. Government agency issued or guaranteed
175

 
(151
)
 
5,161

 
459

 
(231
)
 
4,565

Obligations of U.S. states and political subdivisions
1

 
—

 
—

 
1

 
—

 
—

Securities held-to-maturity
515

 
$
(203
)
 
$
7,649

 
739

 
$
(280
)

$
5,485

 
One Year or Less
 
Greater Than One Year
December 31, 2017
Number
of
Securities
 
Gross
Unrealized
Losses
 
Aggregate
Fair Value
of Investment
 
Number
of
Securities
 
Gross
Unrealized
Losses
 
Aggregate
Fair Value
of Investment
 
(dollars are in millions)
Securities available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
3

 
$
(3
)
 
$
463

 
48

 
$
(326
)
 
$
10,285

U.S. Government sponsored enterprises
83

 
(7
)
 
883

 
77

 
(94
)
 
3,109

U.S. Government agency issued or guaranteed
52

 
(85
)
 
5,161

 
23

 
(20
)
 
573

Asset-backed securities
—

 
—

 
—

 
4

 
(3
)
 
51

Foreign debt securities
10

 
—

 
733

 
1

 
—

 
44

Equity securities
—

 
—

 
—

 
1

 
(6
)
 
177

Securities available-for-sale
148

 
$
(95
)
 
$
7,240

 
154

 
$
(449
)

$
14,239

Securities held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored enterprises
264

 
$
(5
)
 
$
1,126

 
284

 
$
(25
)
 
$
1,020

U.S. Government agency issued or guaranteed
116

 
(48
)
 
5,973

 
506

 
(71
)
 
2,962

Obligations of U.S. states and political subdivisions
1

 
—

 
—

 
2

 
—

 
—

Securities held-to-maturity
381

 
$
(53
)
 
$
7,099

 
792

 
$
(96
)
 
$
3,982
Realized Gains and Losses on Investment Securities Transactions Attributable to Available-for-Sale Securities
The following table summarizes realized gains and losses on investment securities transactions attributable to available-for-sale securities:

Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(in millions)
Gross realized gains
$
1

 
$
9

 
$
31

 
$
42

Gross realized losses
(6
)
 
(4
)
 
(21
)
 
(13
)
Net realized gains (losses)
$
(5
)
 
$
5

 
$
10

 
$
29
Distribution of Maturities of Debt Securities with the Approximate Yield of the Portfolio
The table below also reflects the distribution of maturities of debt securities held at September 30, 2018, together with the approximate taxable equivalent yield of the portfolio. The yields shown are calculated by dividing annualized interest income, including the accretion of discounts and the amortization of premiums, by the amortized cost of securities outstanding at September 30, 2018. Yields on tax-exempt obligations have been computed on a taxable equivalent basis using applicable statutory tax rates.
 
Within
One Year
 
After One
But Within
Five Years
 
After Five
But Within
Ten Years
 
After Ten
Years
Taxable Equivalent Basis
Amount
 
Yield
 
Amount
 
Yield
 
Amount
 
Yield
 
Amount
 
Yield
 
(dollars are in millions)
Available-for-sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury
$
—

 
—
%
 
$
4,783

 
2.17
%
 
$
6,968

 
2.18
%
 
$
2,514

 
3.24
%
U.S. Government sponsored enterprises
547

 
3.88

 
2,273

 
2.81

 
2,235

 
2.79

 
4,242

 
3.15

U.S. Government agency issued or guaranteed
50

 
1.85

 
71

 
2.22

 
11

 
3.64

 
5,864

 
2.71

Asset-backed securities
—

 
—

 
—

 
—

 
55

 
5.52

 
90

 
3.95

Foreign debt securities
1,493

 
.01

 
958

 
2.19

 
—

 
—

 
—

 
—

Total amortized cost
$
2,090

 
1.07
%
 
$
8,085

 
2.35
%
 
$
9,269

 
2.35
%
 
$
12,710

 
2.97
%
Total fair value
$
2,095

 
 
 
$
8,006

 
 
 
$
8,869

 
 
 
$
12,359

 
 
Held-to-maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Government sponsored enterprises
$
50

 
2.21
%
 
$
391

 
2.71
%
 
$
155

 
2.66
%
 
$
3,221

 
2.95
%
U.S. Government agency issued or guaranteed
—

 
—

 
19

 
3.79

 
27

 
3.65

 
11,013

 
2.61

Obligations of U.S. states and political subdivisions
1

 
4.63

 
5

 
3.27

 
5

 
4.36

 
—

 
—

Asset-backed securities
—

 
—

 
—

 
—

 
—

 
—

 
2

 
8.84

Total amortized cost
$
51

 
2.26
%
 
$
415

 
2.77
%
 
$
187

 
2.85
%
 
$
14,236

 
2.69
%
Total fair value
$
51

 
 
 
$
407

 
 
 
$
181

 
 
 
$
13,806