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Investment Securities
 9 Months Ended
Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Investment Securities
NOTE 2—INVESTMENT SECURITIES
Our investment securities portfolio consists of the following: U.S. government-sponsored enterprise or agency (“Agency”) and non-agency residential mortgage-backed securities (“RMBS”), agency commercial mortgage-backed securities (“CMBS”), U.S. Treasury securities and other securities. Agency securities include Government National Mortgage Association (“Ginnie Mae”) guaranteed securities, Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”) issued securities. The carrying value of our investments in Agency and U.S. Treasury securities represented 97% of our total investment securities portfolio as of both September 30, 2023 and December 31, 2022.
The table below presents the amortized cost, allowance for credit losses, gross unrealized gains and losses, and fair value aggregated by major security type as of September 30, 2023 and December 31, 2022. Accrued interest receivable of $241 million and $215 million as of September 30, 2023 and December 31, 2022, respectively, is not included in the table below.
Table 2.1: Investment Securities Available for Sale
September 30, 2023
(Dollars in millions)Amortized
Cost		Allowance
 for Credit
 Losses		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Investment securities available for sale:
U.S. Treasury securities$5,279 $0 $1 $(75)$5,205 
RMBS:
Agency71,122 0 15 (11,945)59,192 
Non-agency620 (4)81 (7)690 
Total RMBS71,742 (4)96 (11,952)59,882 
Agency CMBS8,718 0 1 (880)7,839 
Other securities(1)
1,911 0 3 (3)1,911 
Total investment securities available for sale$87,650 $(4)$101 $(12,910)$74,837 
 December 31, 2022
(Dollars in millions)Amortized
Cost		Allowance
 for Credit
 Losses		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
Investment securities available for sale:
U.S. Treasury securities$5,129 $0 $2 $(90)$5,041 
RMBS:
Agency71,212 0 53 (9,413)61,852 
Non-agency653 (3)93 (6)737 
Total RMBS71,865 (3)146 (9,419)62,589 
Agency CMBS8,626 0 4 (760)7,870 
Other securities(1)
1,427 0 2 (10)1,419 
Total investment securities available for sale$87,047 $(3)$154 $(10,279)$76,919 
__________    
(1)Includes $1.2 billion and $707 million of asset-backed securities (“ABS”) as of September 30, 2023 and December 31, 2022, respectively. The remaining amount is primarily comprised of supranational bonds and foreign government bonds.
Investment Securities in a Gross Unrealized Loss Position
The table below provides the gross unrealized losses and fair value of our securities available for sale aggregated by major security type and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2023 and December 31, 2022. The amounts include securities available for sale without an allowance for credit losses.
Table 2.2: Securities in a Gross Unrealized Loss Position
September 30, 2023
Less than 12 Months12 Months or LongerTotal
(Dollars in millions)Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
Investment securities available for sale without an allowance for credit losses:
U.S. Treasury securities$2,410 $(1)$2,206 $(74)$4,616 $(75)
RMBS:
Agency6,472 (265)51,771 (11,680)58,243 (11,945)
Non-agency5 0 11 (1)16 (1)
Total RMBS6,477 (265)51,782 (11,681)58,259 (11,946)
Agency CMBS1,322 (26)6,092 (854)7,414 (880)
Other securities771 (2)308 (1)1,079 (3)
Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(1)
$10,980 $(294)$60,388 $(12,610)$71,368 $(12,904)
December 31, 2022
Less than 12 Months12 Months or LongerTotal
(Dollars in millions)Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses		Fair ValueGross
Unrealized
Losses
Investment securities available for sale without an allowance for credit losses:
U.S. Treasury securities$2,464 $(57)$448 $(33)$2,912 $(90)
RMBS:
Agency23,271 (1,809)36,803 (7,604)60,074 (9,413)
Non-agency14 (1)3 0 17 (1)
Total RMBS23,285 (1,810)36,806 (7,604)60,091 (9,414)
Agency CMBS4,325 (267)3,214 (493)7,539 (760)
Other securities555 (7)76 (3)631 (10)
Total investment securities available for sale in a gross unrealized loss position without an allowance for credit losses(1)
$30,629 $(2,141)$40,544 $(8,133)$71,173 $(10,274)
__________
(1)    Consists of approximately 2,910 and 2,840 securities in gross unrealized loss positions as of September 30, 2023 and December 31, 2022, respectively.
Maturities and Yields of Investment Securities
The table below summarizes, as of September 30, 2023, the fair value of our investment securities by major security type and contractual maturity as well as the total fair value, amortized cost and weighted-average yields of our investment securities by contractual maturity. Since borrowers may have the right to call or prepay certain obligations, the expected maturities of our securities are likely to differ from the scheduled contractual maturities presented below. The weighted-average yield below represents the effective yield for the investment securities and is calculated based on the amortized cost of each security.
Table 2.3: Contractual Maturities and Weighted-Average Yields of Securities
September 30, 2023
(Dollars in millions)Due in
1 Year or Less		Due > 1 Year
through
5 Years		Due > 5 Years
through
10 Years		Due > 10 YearsTotal
Fair value of securities available for sale:
U.S. Treasury securities$1,525$3,680$0$0$5,205
RMBS(1):
Agency1681,17557,94859,192
Non-agency003687690
Total RMBS1681,17858,63559,882
Agency CMBS(1)
1152,5713,2281,9257,839
Other securities5121,3702901,911
Total securities available for sale$2,153$7,689$4,435$60,560$74,837
Amortized cost of securities available for sale$2,175$7,961$4,995$72,519$87,650
Weighted-average yield for securities available for sale3.58%3.83%3.28%2.83%2.96%
__________
(1)As of September 30, 2023, the weighted-average expected maturities of RMBS and Agency CMBS were 7.0 years and 4.6 years, respectively.
Net Securities Gains or Losses and Proceeds from Sales
We had no sales of securities for the three and nine months ended September 30, 2023. For the three and nine months ended September 30, 2022, total proceeds from the sales of our securities were $330 million and $2.6 billion, respectively, with losses of $3 million and $9 million, respectively.
Securities Pledged and Received
We pledged investment securities totaling $44.1 billion and $21.3 billion as of September 30, 2023 and December 31, 2022, respectively. These securities are primarily pledged to support our access to Federal Home Loan Banks (“FHLB”) advances, the Bank Term Funding Program (“BTFP”) and Public Fund Deposits, as well as for other purposes as required or permitted by law. We accepted pledges of securities with a fair value of approximately $72 million and $82 million as of September 30, 2023 and December 31, 2022, respectively, related to our derivative transactions.