Securities

12 Months Ended

Dec. 31, 2021

Investments, Debt and Equity Securities [Abstract]

7. Securities

The amortized cost, unrealized gains and losses, and approximate fair value of our securities available for sale and held-to-maturity securities are presented in the following tables. Gross unrealized gains and losses represent the difference between the amortized cost and the fair value of securities on the balance sheet as of the dates indicated. Accordingly, the amount of these gains and losses may change in the future as market conditions change.


	2021								2020
December 31, Dollars in millions	Amortized Cost (a)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Amortized Cost(a)		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
SECURITIES AVAILABLE FOR SALE
U.S. Treasury, agencies, and corporations	$	9,573	$	—	$	101	$	9,472	$	1,000	$	—	$	—	$	1,000

Agency residential collateralized mortgage obligations	21,430		99		410		21,119		14,001		297		25		14,273
Agency residential mortgage-backed securities	5,137		37		52		5,122		2,094		70		—		2,164
Agency commercial mortgage-backed securities	9,753		188		290		9,651		9,707		432		33		10,106
Other securities	—		—		—		—		8		5		—		13
Total securities available for sale	$	45,893	$	324	$	853	$	45,364	$	26,810	$	804	$	58	$	27,556
HELD-TO-MATURITY SECURITIES


Agency residential collateralized mortgage obligations	$	2,196	$	33	$	—	$	2,229	$	3,775	$	124	$	—	$	3,899
Agency residential mortgage-backed securities	164		6		—		170		271		14		—		285
Agency commercial mortgage-backed securities	2,678		118		—		2,796		3,515		290		—		3,805
Asset-backed securities(b)	2,485		—		31		2,454		19		—		—		19
Other securities	16		—		—		16		15		—		—		15
Total held-to-maturity securities	$	7,539	$	157	$	31	$	7,665	$	7,595	$	428	$	—	$	8,023

(a)Amortized cost amounts exclude accrued interest receivable which is recorded within “other assets” on the balance sheet. At December 31, 2021, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $59 million and $15 million, respectively. At December 31, 2020, accrued interest receivable on available for sale securities and held-to-maturity securities totaled $42 million and $15 million, respectively.

(b)Includes $2.5 billion of securities as of December 31, 2021, related to the purchase of senior notes from a securitization collateralized by sold indirect auto loans.

The following table summarizes available for sale securities in an unrealized loss position for which an allowance for credit losses has not been recorded as of December 31, 2021, and December 31, 2020:


	Duration of Unrealized Loss Position
	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
December 31, 2021
Securities available for sale:
U.S. Treasury, agencies, and corporations	$	9,078	$	98		$	243	$	3		$	9,321	$	101

Agency residential collateralized mortgage obligations	12,603		315			1,255		95			13,858		410
Agency residential mortgage-backed securities	3,793		49			178		3			3,971		52
Agency commercial mortgage-backed securities	1,645		75			3,834		215			5,479		290

Held-to-maturity securities:


Agency residential collateralized mortgage obligations	96		—		(a)	—		—			96		—


Asset-backed securities	2,450		31			1		—		(a)	2,451		31
Other securities	15		—		(a)	—		—			15		—
Total securities in an unrealized loss position	$	29,680	$	568		$	5,511	$	316		$	35,191	$	884
December 31, 2020
Securities available for sale:


Agency residential collateralized mortgage obligations	$	2,110	$	25		$	—	$	—		$	2,110	$	25
Agency residential mortgage-backed securities	6		—		(b)	5		—		(b)	11		—
Agency commercial mortgage-backed securities	2,709		33			—		—			2,709		33

Held-to-maturity securities:


Agency residential collateralized mortgage obligations	—		—			24		—		(b)	24		—



Other securities	5		—		(b)	—		—			5		—
Total securities in an unrealized loss position	$	4,830	$	58		$	29	$	—		$	4,859	$	58

(a)At December 31, 2021, gross unrealized losses totaled less than $1 million other securities held to maturity and agency residential collateralized mortgage obligations held-to-maturity with a loss duration of less than 12 months. At December 31, 2021, gross unrealized losses totaled less than $1 million for asset backed securities held to maturity with a loss duration greater than 12 months or longer.

(b)At December 31, 2020, gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale and other securities held to maturity with a loss duration of less than 12 months. At December 31, 2020, gross unrealized losses totaled less than $1 million for agency residential mortgage-backed securities available for sale and agency residential collateralized mortgage obligations held to maturity with a loss duration greater than 12 months or longer.

Based on our evaluation at December 31, 2021, an allowance for credit losses has not been recorded nor have unrealized losses been recognized into income. The issuers of the securities are of high credit quality and have a long history of no credit losses, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely attributed to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments.

At December 31, 2021, securities available-for-sale and held-to-maturity securities totaling $14.6 billion were pledged to secure securities sold under repurchase agreements, to secure public and trust deposits, to facilitate access to secured funding, and for other purposes required or permitted by law.

The following table shows securities by remaining maturity. CMOs and other mortgage-backed securities in the available-for-sale and held-to-maturity portfolios are presented based on their expected average lives. The remaining securities, in both the available-for-sale and held-to-maturity portfolios, are presented based on their remaining contractual maturity. Actual maturities may differ from expected or contractual maturities since borrowers have the right to prepay obligations with or without prepayment penalties.


	Securities Available for Sale				Held-to-Maturity Securities
December 31, 2021	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Dollars in millions
Due in one year or less	$	376	$	385	$	76	$	75
Due after one through five years	21,937		21,999		5,631		5,673
Due after five through ten years	20,442		20,011		1,832		1,917
Due after ten years	3,138		2,969		—		—
Total	$	45,893	$	45,364	$	7,539	$	7,665