Securities (Tables)

9 Months Ended

Sep. 30, 2021

Investments Debt And Equity Securities [Abstract]

Summary of Portfolio of Securities Available for Sale

The following tables summarize the Company’s portfolio of debt securities available for sale and equity investments with readily determinable fair values at September 30, 2021 and December 31, 2020:

	September 30, 2021
(dollars in millions)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Debt securities available-for-sale
Mortgage-Related Debt Securities:
GSE certificates	$	1,117	$	28	$	15	$	1,130
GSE CMOs		1,865		19		35		1,849
Total mortgage-related debt securities	$	2,982	$	47	$	50	$	2,979
Other Debt Securities:
U. S. Treasury obligations	$	65	$	—	$	—	$	65
GSE debentures		1,413		2		43		1,372
Asset-backed securities (1)		493		4		2		495
Municipal bonds		25		—		—		25
Corporate bonds		821		21		1		841
Foreign notes		25		1		—		26
Capital trust notes		96		7		8		95
Total other debt securities	$	2,938	$	35	$	54	$	2,919
Total debt securities available for sale	$	5,920	$	82	$	104	$	5,898
Equity Securities:
Mutual funds	$	16	$	—	$	—	$	16
Total equity securities	$	16	$	—	$	—	$	16
Total securities (2)	$	5,936	$	82	$	104	$	5,914

(1)The underlying assets of the asset-backed securities are substantially guaranteed by the U.S. Government.

(2)Excludes accrued interest receivable of $14 million included in other assets in the Consolidated Statements of Condition.

	December 31, 2020
(dollars in millions)	Amortized Cost		Gross Unrealized Gain		Gross Unrealized Loss		Fair Value
Debt securities available-for-sale
Mortgage-Related Debt Securities:
GSE certificates	$	1,155	$	54	$	—	$	1,209
GSE CMOs		1,787		45		3		1,829
Total mortgage-related debt securities	$	2,942	$	99	$	3	$	3,038
Other Debt Securities:
U.S. Treasury obligations	$	65	$	—	$	—	$	65
GSE debentures		1,158		4		4		1,158
Asset-backed securities (1)		530		2		6		526
Municipal bonds		26		1		—		27
Corporate bonds		871		18		6		883
Foreign notes		25		1		—		26
Capital trust notes		96		6		11		91
Total other debt securities	$	2,771	$	32	$	27	$	2,776
Total other securities available for sale	$	5,713	$	131	$	30	$	5,814
Equity Securities:
Preferred stock	$	15	$	—	$	—	$	15
Mutual funds		16		—		—		16
Total equity securities	$	31	$	—	$	—	$	31
Total securities(2)	$	5,744	$	131	$	30	$	5,845

(1)The underlying assets of the asset-backed securities are substantially guaranteed by the U.S. Government.

(2)Excludes accrued interest receivable of $15 million included in other assets in the Consolidated Statements of Condition.

Summary of Gross Proceeds and Gross Realized Gains and Losses from Sale of Available-for-Sale Securities

The following table summarizes the gross proceeds, gross realized gains, and gross realized losses from the sale of available-for-sale securities during the nine months ended September 30, 2021 and 2020:

	For the Nine Months Ended September 30,
(dollars in millions)	2021		2020
Gross proceeds	$	-	$	484
Gross realized gains		-		2
Gross realized losses		-		1

Summary of Amortized Cost of Available-for-Sale Securities by Contractual Maturity

The following table summarizes, by contractual maturity, the amortized cost of securities at September 30, 2021:

	Mortgage- Related Securities		Average Yield			U.S. Government and GSE Obligations		Average Yield			State, County, and Municipal		Average Yield (1)			Other Debt Securities (2)		Average Yield			Fair Value
(dollars in millions)
Available-for-Sale Debt Securities:
Due within one year	$	26		2.72	%	$	69		0.17	%	$	—		—	%	$	—		—	%	$	95
Due from one to five years		193		3.25			22		3.52			—		—			403		1.62			646
Due from five to ten years		197		2.52			317		1.58			19		3.52			523		2.26			1,065
Due after ten years		2,566		1.85			1,070		1.54			6		3.33			509		1.18			4,092
Total debt securities available for sale	$	2,982		1.99	%	$	1,478		1.51	%	$	25		3.48	%	$	1,435		1.70	%	$	5,898

(1)Not presented on a tax-equivalent basis.

(2)Includes corporate bonds, capital trust notes, foreign notes and asset-backed securities.

Summary of Held-to-Maturity and Available-for-Sale Securities having Continuous Unrealized Loss Position

The following table presents securities with no related allowance having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of September 30, 2021:

	Less than Twelve Months				Twelve Months or Longer				Total
(dollars in millions)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Temporarily Impaired Securities:
GSE certificates	$	497	$	15	$	—	$	—	$	497	$	15
US Treasuries		45		—		—		—		45		—
GSE CMOs		969		35		—		—		969		35
GSE debentures		927		26		393		17		1,320		43
Asset-backed securities		138		—		141		2		279		2
Municipal bonds		—		—		8		—		8		—
Corporate bonds		—		—		249		1		249		1
Capital trust notes		—		—		36		8		36		8
Equity securities		12		—		—		—		12		—
Total temporarily impaired securities	$	2,588	$	76	$	827	$	28	$	3,415	$	104

The following table presents securities having a continuous unrealized loss position for less than twelve months and for twelve months or longer as of December 31, 2020:

	Less than Twelve Months				Twelve Months or Longer				Total
(dollars in millions)	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Temporarily Impaired Securities:
U. S. Treasury obligations	$	—	$	—	$	—	$	—	$	—	$	—
U. S. Government agency and GSE    obligations		59		—		—		—		59		—
GSE certificates		442		3		74		—		516		3
GSE CMOs		522		4		—		—		522		4
Asset-backed securities		—		—		364		6		364		6
Municipal bonds		—		—		9		—		9		—
Corporate bonds		72		3		246		3		318		6
Foreign notes		—		—		—		—		—		—
Capital trust notes		—		—		33		11		33		11
Equity securities		—		—		—		—		—		—
Total temporarily impaired securities	$	1,095	$	10	$	726	$	20	$	1,821	$	30