Securities (Tables)

6 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

The following tables present the amortized cost, gross unrealized gains and losses, and fair values of AFS and HTM securities:



June 30, 2018	Amortized Cost		Gross Unrealized				Fair Value
(Dollars in millions)	Amortized Cost		Gains		Losses		Fair Value
AFS securities:
U.S. Treasury	$	2,437	$	—	$	114	$	2,323
GSE	186		—		11		175
Agency MBS	20,880		2		1,034		19,848
States and political subdivisions	971		27		18		980
Non-agency MBS	351		203		—		554
Other	38		1		—		39
Total AFS securities	$	24,863	$	233	$	1,177	$	23,919

HTM securities:
U.S. Treasury	$	1,098	$	—	$	9	$	1,089
GSE	2,198		2		60		2,140
Agency MBS	18,436		30		632		17,834
States and political subdivisions	16		—		—		16
Other	1		—		—		1
Total HTM securities	$	21,749	$	32	$	701	$	21,080



December 31, 2017	Amortized Cost		Gross Unrealized				Fair Value
(Dollars in millions)	Amortized Cost		Gains		Losses		Fair Value
AFS securities:
U.S. Treasury	$	2,368	$	—	$	77	$	2,291
GSE	187		—		8		179
Agency MBS	20,683		8		590		20,101
States and political subdivisions	1,379		37		24		1,392
Non-agency MBS	384		192		—		576
Other	8		—		—		8
Total AFS securities	$	25,009	$	237	$	699	$	24,547

HTM securities:
U.S. Treasury	$	1,098	$	8	$	—	$	1,106
GSE	2,198		11		22		2,187
Agency MBS	19,660		33		222		19,471
States and political subdivisions	28		—		—		28
Other	43		2		—		45
Total HTM securities	$	23,027	$	54	$	244	$	22,837

Summary of HTM Securities

The following tables present the amortized cost, gross unrealized gains and losses, and fair values of AFS and HTM securities:



June 30, 2018	Amortized Cost		Gross Unrealized				Fair Value
(Dollars in millions)	Amortized Cost		Gains		Losses		Fair Value
AFS securities:
U.S. Treasury	$	2,437	$	—	$	114	$	2,323
GSE	186		—		11		175
Agency MBS	20,880		2		1,034		19,848
States and political subdivisions	971		27		18		980
Non-agency MBS	351		203		—		554
Other	38		1		—		39
Total AFS securities	$	24,863	$	233	$	1,177	$	23,919

HTM securities:
U.S. Treasury	$	1,098	$	—	$	9	$	1,089
GSE	2,198		2		60		2,140
Agency MBS	18,436		30		632		17,834
States and political subdivisions	16		—		—		16
Other	1		—		—		1
Total HTM securities	$	21,749	$	32	$	701	$	21,080



December 31, 2017	Amortized Cost		Gross Unrealized				Fair Value
(Dollars in millions)	Amortized Cost		Gains		Losses		Fair Value
AFS securities:
U.S. Treasury	$	2,368	$	—	$	77	$	2,291
GSE	187		—		8		179
Agency MBS	20,683		8		590		20,101
States and political subdivisions	1,379		37		24		1,392
Non-agency MBS	384		192		—		576
Other	8		—		—		8
Total AFS securities	$	25,009	$	237	$	699	$	24,547

HTM securities:
U.S. Treasury	$	1,098	$	8	$	—	$	1,106
GSE	2,198		11		22		2,187
Agency MBS	19,660		33		222		19,471
States and political subdivisions	28		—		—		28
Other	43		2		—		45
Total HTM securities	$	23,027	$	54	$	244	$	22,837

Schedule of Amortized Cost and Estimated Fair Value by Contractual Maturity

The amortized cost and estimated fair value of the securities portfolio by contractual maturity are shown in the following table. The expected life of MBS may differ from contractual maturities because borrowers have the right to prepay the underlying mortgage loans with or without prepayment penalties.



June 30, 2018	AFS				HTM
(Dollars in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	468	$	466	$	1	$	1
Due after one year through five years	2,093		1,982		2,789		2,739
Due after five years through ten years	584		573		940		909
Due after ten years	21,718		20,898		18,019		17,431
Total debt securities	$	24,863	$	23,919	$	21,749	$	21,080

Schedule of Fair Values and Gross Unrealized Losses

The following tables present the fair values and gross unrealized losses of investments based on the length of time that individual securities have been in a continuous unrealized loss position:



June 30, 2018	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
AFS securities:
U.S. Treasury	$	655	$	10	$	1,643	$	104	$	2,298	$	114
GSE	9		—		166		11		175		11
Agency MBS	7,148		245		12,624		789		19,772		1,034
States and political subdivisions	161		1		314		17		475		18
Total	$	7,973	$	256	$	14,747	$	921	$	22,720	$	1,177

HTM securities:
U.S. Treasury	$	1,089	$	9	$	—	$	—	$	1,089	$	9
GSE	1,446		46		286		14		1,732		60
Agency MBS	12,040		381		4,251		251		16,291		632
Total	$	14,575	$	436	$	4,537	$	265	$	19,112	$	701



December 31, 2017	Less than 12 months				12 months or more				Total
(Dollars in millions)	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
AFS securities:
U.S. Treasury	$	634	$	4	$	1,655	$	73	$	2,289	$	77
GSE	9		—		170		8		179		8
Agency MBS	5,077		64		13,920		526		18,997		590
States and political subdivisions	201		1		355		23		556		24
Total	$	5,921	$	69	$	16,100	$	630	$	22,021	$	699

HTM securities:
GSE	$	1,470	$	12	$	290	$	10	$	1,760	$	22
Agency MBS	10,880		77		4,631		145		15,511		222
Total	$	12,350	$	89	$	4,921	$	155	$	17,271	$	244