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Investment Securities | 9 Months Ended
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Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | Investment Securities Investment securities principally include available-for-sale debt securities carried at fair value on the Consolidated Balance Sheets. Unrealized losses attributable to credit deterioration are recorded in the Consolidated Statements of Income in Other loans Provision for credit losses. Unrealized gains and any portion of a security’s unrealized loss attributable to non-credit losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. We had accrued interest on our available-for-sale debt securities totaling $12 million as of both September 30, 2023 and December 31, 2022, presented as Other assets on the Consolidated Balance Sheets. Investment securities also include equity securities carried at fair value on the Consolidated Balance Sheets with unrealized gains and losses recorded in the Consolidated Statements of Income as Other, net expense. Realized gains and losses are recognized upon disposition of the securities using the specific identification method and recorded in the Consolidated Statements of Income as Other, net expense. The following is a summary of investment securities as of September 30, 2023 and December 31, 2022:
|  | 2023 |  | 2022
Description of Securities (Millions) |  | Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
Available-for-sale debt securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
State and municipal obligations |  | $ | 62 |  |  | $ | — |  |  | $ | (10) |  |  | $ | 52 |  |  | $ | 64 |  |  | $ | — |  |  | $ | (10) |  |  | $ | 54 |
U.S. Government agency obligations |  | 4 |  |  | — |  |  | — |  |  | 4 |  |  | 5 |  |  | — |  |  | — |  |  | 5 |
U.S. Government treasury obligations (a) |  | 2,214 |  |  | — |  |  | (27) |  |  | 2,187 |  |  | 3,859 |  |  | — |  |  | (73) |  |  | 3,786 |
Mortgage-backed securities (b) |  | 12 |  |  | — |  |  | (1) |  |  | 11 |  |  | 13 |  |  | — |  |  | — |  |  | 13 |
Foreign government bonds and obligations |  | 777 |  |  | — |  |  | (1) |  |  | 776 |  |  | 633 |  |  | — |  |  | (1) |  |  | 632 |
Other (c) |  | 64 |  |  | — |  |  | — |  |  | 64 |  |  | 47 |  |  | — |  |  | — |  |  | 47 |
Equity securities (d)(e) |  | 60 |  |  | 20 |  |  | (14) |  |  | 66 |  |  | 50 |  |  | — |  |  | (9) |  |  | 41 |
Total |  | $ | 3,193 |  |  | $ | 20 |  |  | $ | (53) |  |  | $ | 3,160 |  |  | $ | 4,671 |  |  | $ | — |  |  | $ | (93) |  |  | $ | 4,578 |
(a)Excludes approximately $1 billion of U.S. Government treasury obligations that matured on September 30, 2023, for which cash was received on October 2, 2023. As of September 30, 2023, these investments were derecognized and a corresponding receivable was recorded in Other assets on the Consolidated Balance Sheets; this non-cash movement is not reflected in the Consolidated Statements of Cash Flows. (b)Represents mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. (c)Represents investments in debt securities issued by Community Development Financial Institutions. (d)Equity securities comprise investments in common stock, exchange-traded funds and mutual funds. (e)During the third quarter of 2023, certain equity securities were reclassified from Other assets to Investment securities following the completion of transactions pursuant to which the issuers of the securities became public companies. The investments had a fair value of $26 million with an associated cost basis of $10 million as of September 30, 2023. The gross unrealized gain and loss amounts include net unrealized gains of $37 million that were recognized prior to such transactions. The following table provides information about our available-for-sale debt securities with gross unrealized losses 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:
|  | 2023 |  | 2022
|  | Less than 12 months |  | 12 months or more |  | Less than 12 months |  | 12 months or more
Description of Securities (Millions) |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses
State and municipal obligations |  | $ | 20 |  |  | $ | (1) |  |  | $ | 30 |  |  | $ | (9) |  |  | $ | 52 |  |  | $ | (10) |  |  | $ | — |  |  | $ | — |
U.S. Government treasury obligations |  | — |  |  | — |  |  | 2,098 |  |  | (27) |  |  | 3,710 |  |  | (72) |  |  | 52 |  |  | (1) |
Mortgage-backed securities |  | — |  |  | — |  |  | 7 |  |  | (1) |  |  | — |  |  | — |  |  | — |  |  | — |
Foreign government bonds and obligations |  | 679 |  |  | (1) |  |  | — |  |  | — |  |  | 549 |  |  | (1) |  |  | — |  |  | — |
Total |  | $ | 699 |  |  | $ | (2) |  |  | $ | 2,135 |  |  | $ | (37) |  |  | $ | 4,311 |  |  | $ | (83) |  |  | $ | 52 |  |  | $ | (1) |
The gross unrealized losses on our available-for-sale debt securities are primarily attributable to an increase in the current benchmark interest rate. Overall, for the available-for-sale debt securities in gross unrealized loss positions, (i) we do not intend to sell the securities, (ii) it is more likely than not that we will not be required to sell the securities before recovery of the unrealized losses, and (iii) we expect that the contractual principal and interest will be received on the securities. We concluded that there was no credit loss attributable to the securities in an unrealized loss position for the periods presented. The following table summarizes the gross unrealized losses for available-for-sale debt securities by ratio of fair value to amortized cost as of September 30, 2023 and December 31, 2022:
|  | Less than 12 months |  | 12 months or more |  | Total
Ratio of Fair Value to Amortized Cost (Dollars in millions) |  | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Number of Securities |  | Estimated Fair Value |  | Gross Unrealized Losses
2023: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90–100% |  | 53 |  |  | $ | 699 |  |  | $ | (2) |  |  | 44 |  | $ | 2,107 |  |  | $ | (27) |  |  | 97 |  |  | $ | 2,806 |  |  | $ | (29) |
Less than 90% |  | — |  |  | $ | — |  |  | $ | — |  |  | 32 |  |  | $ | 28 |  |  | $ | (10) |  |  | 32 |  |  | $ | 28 |  |  | $ | (10) |
Total as of September 30, 2023 |  | 53 |  |  | $ | 699 |  |  | $ | (2) |  |  | 76 |  |  | $ | 2,135 |  |  | $ | (37) |  |  | 129 |  |  | $ | 2,834 |  |  | $ | (39) |
2022: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
90–100% |  | 74 |  |  | $ | 4,287 |  |  | $ | (74) |  |  | 3 |  |  | $ | 52 |  |  | $ | (1) |  |  | 77 |  |  | $ | 4,339 |  |  | $ | (75) |
Less than 90% |  | 14 |  |  | $ | 24 |  |  | $ | (9) |  |  | — |  |  | $ | — |  |  | $ | — |  |  | 14 |  |  | $ | 24 |  |  | $ | (9) |
Total as of December 31, 2022 |  | 88 |  |  | $ | 4,311 |  |  | $ | (83) |  |  | 3 |  |  | $ | 52 |  |  | $ | (1) |  |  | 91 |  |  | $ | 4,363 |  |  | $ | (84) |
Contractual maturities for available-for-sale debt securities with stated maturities as of September 30, 2023 were as follows:
(Millions) |  | Cost |  | Estimated Fair Value
Due within 1 year |  | $ | 2,804 |  |  | $ | 2,784 |
Due after 1 year but within 5 years |  | 233 |  |  | 226 |
Due after 5 years but within 10 years |  | 40 |  |  | 39 |
Due after 10 years |  | 56 |  |  | 45 |
Total |  | $ | 3,133 |  |  | $ | 3,094 |
The expected payments on state and municipal obligations, U.S. Government agency obligations and mortgage-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations.

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