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Investment Securities (Tables)
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Schedule of Available-for-Sale Securities
The table below presents the amortized cost, gross unrealized gains and losses, and fair value of securities available for sale as of December 31, 2019 and 2018.
Table 2.1: Investment Securities Available for Sale
 
 
December 31, 2019
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Investment securities available for sale:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
4,122

 
$
6

 
$
(4
)
 
$
4,124

RMBS:
 
 
 
 
 
 
 
 
Agency
 
62,003

 
1,120

 
(284
)
 
62,839

Non-agency
 
1,235

 
266

 
(2
)
 
1,499

Total RMBS
 
63,238

 
1,386

 
(286
)
 
64,338

Agency CMBS
 
9,303

 
165

 
(42
)
 
9,426

Other securities(1)
 
1,321

 
4

 
0

 
1,325

Total investment securities available for sale
 
$
77,984

 
$
1,561

 
$
(332
)
 
$
79,213

 
 
December 31, 2018
(Dollars in millions)
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Investment securities available for sale:
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
6,146

 
$
15

 
$
(17
)
 
$
6,144

RMBS:
 
 
 
 
 
 
 
 
Agency
 
32,710

 
62

 
(869
)
 
31,903

Non-agency
 
1,440

 
304

 
(2
)
 
1,742

Total RMBS
 
34,150

 
366

 
(871
)
 
33,645

Agency CMBS
 
4,806

 
11

 
(78
)
 
4,739

Other securities(1)
 
1,626

 
2

 
(6
)
 
1,622

Total investment securities available for sale
 
$
46,728

 
$
394

 
$
(972
)
 
$
46,150

__________
(1) 
Includes primarily supranational bonds, foreign government bonds and other asset-backed securities.
Schedule of Available-for-Sale Securities in Gross Unrealized Loss Position
The table below provides, by major security type, information about our securities available for sale in a gross unrealized loss position and the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2019 and 2018.
Table 2.2: Securities in a Gross Unrealized Loss Position
 
 
December 31, 2019
 
 
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
Investment securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
2,647

 
$
(4
)
 
$
0

 
$
0

 
$
2,647

 
$
(4
)
RMBS:
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
10,494

 
(92
)
 
10,567

 
(192
)
 
21,061

 
(284
)
Non-agency
 
35

 
(1
)
 
16

 
(1
)
 
51

 
(2
)
Total RMBS
 
10,529

 
(93
)
 
10,583

 
(193
)
 
21,112

 
(286
)
Agency CMBS
 
2,580

 
(23
)
 
1,563

 
(19
)
 
4,143

 
(42
)
Other securities
 
126

 
0

 
106

 
0

 
232

 
0

Total investment securities available for sale in a gross unrealized loss position
 
$
15,882

 
$
(120
)
 
$
12,252

 
$
(212
)
 
$
28,134

 
$
(332
)
 
 
December 31, 2018
 
 
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
Investment securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
2,543

 
$
(3
)
 
$
1,076

 
$
(14
)
 
$
3,619

 
$
(17
)
RMBS:
 
 
 
 
 
 
 
 
 
 
 
 
Agency
 
7,863

 
(260
)
 
18,118

 
(609
)
 
25,981

 
(869
)
Non-agency
 
89

 
(2
)
 
10

 
0

 
99

 
(2
)
Total RMBS
 
7,952

 
(262
)
 
18,128

 
(609
)
 
26,080

 
(871
)
Agency CMBS
 
2,004

 
(31
)
 
1,540

 
(47
)
 
3,544

 
(78
)
Other securities
 
244

 
(1
)
 
678

 
(5
)
 
922

 
(6
)
Total investment securities available for sale in a gross unrealized loss position
 
$
12,743

 
$
(297
)
 
$
21,422

 
$
(675
)
 
$
34,165

 
$
(972
)
Schedule of Contractual Maturities for Securities
The table below summarizes, by major security type, the contractual maturities and weighted-average yields of our investment securities as of December 31, 2019. Because 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
 
 
December 31, 2019
(Dollars in millions)
 
Due in
1 Year or Less
 
Due > 1 Year
through
5 Years
 
Due > 5 Years
through
10 Years
 
Due > 10 Years
 
Total
Fair value of securities available for sale:
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
 
$
0

 
$
1,476

 
$
2,648

 
$
0

 
$
4,124

RMBS(1):
 
 
 
 
 
 
 
 
 
 
Agency
 
0

 
36

 
891

 
61,912

 
62,839

Non-agency
 
0

 
0

 
0

 
1,499

 
1,499

Total RMBS
 
0

 
36

 
891

 
63,411

 
64,338

Agency CMBS(1)
 
2

 
1,753

 
3,574

 
4,097

 
9,426

Other securities
 
501

 
557

 
267

 
0

 
1,325

Total securities available for sale
 
$
503

 
$
3,822

 
$
7,380

 
$
67,508

 
$
79,213

Amortized cost of securities available for sale
 
$
503

 
$
3,816

 
$
7,334

 
$
66,331

 
$
77,984

Weighted-average yield for securities available for sale
 
1.43
%
 
2.37
%
 
2.60
%
 
3.06
%
 
2.97
%
__________
(1) 
As of December 31, 2019, the weighted-average expected maturities of RMBS and Agency CMBS is 5.4 years for each portfolio.
Schedule of Gross Realized Gains and Losses on Sale of Available-for-Sale Securities Recognized in Earnings
The following table presents the gross realized gains or losses and proceeds from the sale of securities available for sale for the years ended December 31, 2019, 2018 and 2017. We did not sell any investment securities that were classified as held to maturity.
Table 2.4: Realized Gains and Losses on Securities and OTTI Recognized in Earnings
 
 
Year Ended December 31,
(Dollars in millions)
 
2019
 
2018
 
2017
Realized gains (losses):
 
 
 
 
 
 
Gross realized gains
 
$
44

 
$
13

 
$
144

Gross realized losses
 
(18
)
 
(21
)
 
(74
)
Net realized gains (losses)
 
26

 
(8
)
 
70

OTTI recognized in earnings:
 
 
 
 
 
 
Credit-related OTTI
 
0

 
(1
)
 
(2
)
Intent-to-sell OTTI
 
0

 
(200
)
 
(3
)
Total OTTI recognized in earnings
 
0

 
(201
)
 
(5
)
Net securities gains (losses)
 
$
26

 
$
(209
)
 
$
65

Total proceeds from sales
 
$
4,780

 
$
6,399

 
$
8,181
Schedule of Outstanding Contractual Balance and Carrying Value of Credit-Impaired Debt Securities
The table below presents the outstanding balance and carrying value of the purchased credit-impaired debt securities as of December 31, 2019 and 2018.
Table 2.5: Outstanding Balance and Carrying Value of Purchased Credit-Impaired Debt Securities
(Dollars in millions)
 
December 31, 2019
 
December 31, 2018
Outstanding balance
 
$
1,501

 
$
1,784

Carrying value
 
1,347

 
1,537
Schedule of Changes in Accretable Yield of Acquired Securities
The following table presents changes in the accretable yield related to the purchased credit-impaired debt securities for the years ended December 31, 2019, 2018 and 2017.
Table 2.6: Changes in the Accretable Yield of Purchased Credit-Impaired Debt Securities
 
 
Year Ended December 31,
(Dollars in millions)
 
2019
 
2018
 
2017
Accretable yield, beginning of period
 
$
698

 
$
826

 
$
1,173

Accretion recognized in earnings
 
(166
)
 
(153
)
 
(182
)
Reduction due to payoffs, disposals, transfers and other
 
(7
)
 
(3
)
 
(157
)
Net reclassifications (to) from nonaccretable difference
 
19

 
28

 
(8
)
Accretable yield, end of period
 
$
544

 
$
698

 
$
826