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Investment Securities | 3 Months Ended
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Mar. 31, 2022
Investments [Abstract] |
Investment Securities | INVESTMENT SECURITIES The following tables as of March 31, 2022 include the investment security balances acquired in the CIT Merger, which were recorded at fair value on the acquisition date. The amortized cost and fair value of investment securities at March 31, 2022 and December 31, 2021, were as follows: Amortized Cost and Fair Value - Debt Securities
| March 31, 2022
dollars in millions | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair value
Investment securities available for sale |  |  |  |  |  |  |
U.S. Treasury | $ | 2,014 |  |  | $ | — |  |  | $ | (83) |  |  | $ | 1,931 |
Government agency | 206 |  |  | 1 |  |  | (1) |  |  | 206 |
Residential mortgage-backed securities | 5,340 |  |  | — |  |  | (288) |  |  | 5,052 |
Commercial mortgage-backed securities | 1,584 |  |  | 2 |  |  | (66) |  |  | 1,520 |
Corporate bonds | 582 |  |  | 8 |  |  | (4) |  |  | 586 |
Total investment securities available for sale | $ | 9,726 |  |  | $ | 11 |  |  | $ | (442) |  |  | $ | 9,295 |
Investment in marketable equity securities | $ | 73 |  |  | $ | 27 |  |  | $ | — |  |  | $ | 100 |
Investment securities held to maturity |  |  |  |  |  |  |
U.S. Treasury | $ | 471 |  |  | $ | — |  |  | $ | (24) |  |  | $ | 447 |
Government agency | 1,541 |  |  | — |  |  | (78) |  |  | 1,463 |
Residential mortgage-backed securities | 4,776 |  |  | — |  |  | (315) |  |  | 4,461 |
Commercial mortgage-backed securities | 2,988 |  |  | — |  |  | (183) |  |  | 2,805 |
Supranational securities | 294 |  |  | — |  |  | (17) |  |  | 277 |
Other | 4 |  |  | — |  |  | — |  |  | 4 |
Total investment securities held to maturity | $ | 10,074 |  |  | $ | — |  |  | $ | (617) |  |  | $ | 9,457 |
Total investment securities | $ | 19,873 |  |  | $ | 38 |  |  | $ | (1,059) |  |  | $ | 18,852 |
| December 31, 2021
dollars in millions | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair value
Investment securities available for sale |  |  |  |  |  |  |
U.S. Treasury | $ | 2,007 |  |  | $ | — |  |  | $ | (2) |  |  | $ | 2,005 |
Government agency | 221 |  |  | 1 |  |  | (1) |  |  | 221 |
Residential mortgage-backed securities | 4,757 |  |  | 8 |  |  | (36) |  |  | 4,729 |
Commercial mortgage-backed securities | 1,648 |  |  | 9 |  |  | (17) |  |  | 1,640 |
Corporate bonds | 582 |  |  | 27 |  |  | (1) |  |  | 608 |
State, county and municipal | — |  |  | — |  |  | — |  |  | — |
Total investment securities available for sale | $ | 9,215 |  |  | $ | 45 |  |  | $ | (57) |  |  | $ | 9,203 |
Investment in marketable equity securities | $ | 73 |  |  | $ | 25 |  |  | $ | — |  |  | $ | 98 |
Investment securities held to maturity |  |  |  |  |  |  |
Residential mortgage-backed securities | $ | 2,322 |  |  | $ | 6 |  |  | $ | (22) |  |  | $ | 2,306 |
Commercial mortgage-backed securities | 1,485 |  |  | — |  |  | (34) |  |  | 1,451 |
Other | 2 |  |  | — |  |  | — |  |  | 2 |
Total investment securities held to maturity | $ | 3,809 |  |  | $ | 6 |  |  | $ | (56) |  |  | $ | 3,759 |
Total investment securities | $ | 13,097 |  |  | $ | 76 |  |  | $ | (113) |  |  | $ | 13,060 |
Investments in mortgage-backed securities represent securities issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. US Treasury investments represents T-bills and Notes issued by the US Treasury. Investments in government agency securities represent securities issued by the Small Business Association (“SBA”), Federal Home Loan Bank (“FHLB”) and other agencies. Investments in supranational securities represent securities issued by the World Bank. Investments in corporate bonds represent positions in debt securities of other financial institutions. Investments in marketable equity securities represent positions in common stock of publicly traded financial institutions. Other held to maturity investments include certificates of deposit with other financial institutions. BancShares also holds approximately 354,000 shares of Class B common stock of Visa, Inc. (“Visa”). Until the resolution of certain litigation, at which time the Visa Class B common stock will convert to publicly traded Visa Class A common stock, these shares are only transferable to other stockholders of Visa Class B common stock. As a result, there is limited transfer activity in private transactions between buyers and sellers. Given this limited trading activity and the continuing uncertainty regarding the likelihood, ultimate timing and eventual exchange rate for shares of Visa Class B common stock into shares of Visa Class A common stock, these shares are not considered to have a readily determinable fair value and have no carrying value. BancShares continues to monitor the trading activity in Visa Class B common stock and the status of the resolution of certain litigation matters at Visa that would trigger the conversion of the Visa Class B common stock into Visa Class A common stock. As of March 31, 2022 and December 31, 2021, no ACL was required for available for sale or held to maturity debt securities. Accrued interest receivables for available for sale and held to maturity debt securities were excluded from the estimate for credit losses. At March 31, 2022, accrued interest receivable for available for sale and held to maturity debt securities were $26 million and $16 million, respectively. At December 31, 2021, accrued interest receivable for available for sale and held to maturity debt securities were $22 million and $7 million, respectively. During the three months ended March 31, 2022 and 2021, no accrued interest was deemed uncollectible and written off against interest income. The following table provides the amortized cost and fair value by contractual maturity. Expected maturities will differ from contractual maturities on certain securities because borrowers and issuers may have the right to call or prepay obligations with or without prepayment penalties. Residential and commercial mortgage-backed and government agency securities are stated separately as they are not due at a single maturity date. Maturities - Debt Securities
| March 31, 2022 |  | December 31, 2021
dollars in millions | Cost |  | Fair value |  | Cost |  | Fair value
Investment securities available for sale |  |  |  |  |  |  |
Non-amortizing securities maturing in: |  |  |  |  |  |  |
One year or less | $ | 9 |  |  | $ | 9 |  |  | $ | — |  |  | $ | — |
After one through five years | 2,055 |  |  | 1,972 |  |  | 2,049 |  |  | 2,048 |
After five through 10 years | 515 |  |  | 520 |  |  | 523 |  |  | 548 |
After 10 years | 17 |  |  | 16 |  |  | 17 |  |  | 17 |
Government agency | 206 |  |  | 206 |  |  | 221 |  |  | 221 |
Residential mortgage-backed securities | 5,340 |  |  | 5,052 |  |  | 4,757 |  |  | 4,729 |
Commercial mortgage-backed securities | 1,584 |  |  | 1,520 |  |  | 1,648 |  |  | 1,640 |
Total investment securities available for sale | $ | 9,726 |  |  | $ | 9,295 |  |  | $ | 9,215 |  |  | $ | 9,203 |
Investment securities held to maturity |  |  |  |  |  |  |
Non-amortizing securities maturing in: |  |  |  |  |  |  |
One year or less | $ | 4 |  |  | $ | 4 |  |  | $ | 2 |  |  | $ | 2 |
After one through five years | 873 |  |  | 836 |  |  | — |  |  | — |
After five through 10 years | 1,433 |  |  | 1,351 |  |  | — |  |  | — |
Residential mortgage-backed securities | 4,776 |  |  | 4,461 |  |  | 2,322 |  |  | 2,306 |
Commercial mortgage-backed securities | 2,988 |  |  | 2,805 |  |  | 1,485 |  |  | 1,451 |
Total investment securities held to maturity | $ | 10,074 |  |  | $ | 9,457 |  |  | $ | 3,809 |  |  | $ | 3,759 |
T he following table presents interest and dividend income on investments and other interest-bearing assets: Other Interest and Dividend Income
| Three months ended March 31,
dollars in millions | 2022 |  | 2021
Interest income - taxable debt securities | $ | 83 |  |  | $ | 30 |
Interest income - interest-bearing cash | 5 |  |  | 1 |
Dividend income - marketable equity securities | 1 |  |  | 1 |
Total other interest and dividend income | $ | 89 |  |  | $ | 32 |
The following table provides the gross realized gains and losses on the sales of investment securities available for sale: Realized Gains on Debt Securities Available For Sale
| Three months ended March 31,
dollars in millions | 2022 |  | 2021
Gross realized gains on sales of investment securities available for sale | $ | — |  |  | $ | 9 |
Gross realized losses on sales of investment securities available for sale | — |  |  | — |
Net realized gains on sales of investment securities available for sale | $ | — |  |  | $ | 9 |
The following table provides the realized and unrealized gains and losses on marketable equity securities: Realized and Unrealized Gains on Marketable Equity Securities
| Three months ended March 31,
dollars in millions | 2022 |  | 2021
Marketable equity securities gains, net | $ | 3 |  |  | $ | 16 |
Unrealized gains recognized on marketable equity securities held for sale | $ | 3 |  |  | $ | 16 |
The following table provides information regarding investment securities available for sale with unrealized losses for which an ACL has not been recorded: Gross Unrealized Losses on Debt Securities Available For Sale
| March 31, 2022
| Less than 12 months |  | 12 months or more |  | Total
dollars in millions | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses
Investment securities available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 1,931 |  |  | $ | (83) |  |  | $ | — |  |  | $ | — |  |  | $ | 1,931 |  |  | $ | (83) |
Government agency | 21 |  |  | — |  |  | 74 |  |  | (1) |  |  | 95 |  |  | (1) |
Residential mortgage-backed securities | 4,247 |  |  | (239) |  |  | 670 |  |  | (49) |  |  | 4,917 |  |  | (288) |
Commercial mortgage-backed securities | 744 |  |  | (42) |  |  | 485 |  |  | (24) |  |  | 1,229 |  |  | (66) |
Corporate bonds | 187 |  |  | (4) |  |  | — |  |  | — |  |  | 187 |  |  | (4) |
Total | $ | 7,130 |  |  | $ | (368) |  |  | $ | 1,229 |  |  | $ | (74) |  |  | $ | 8,359 |  |  | $ | (442) |
| December 31, 2021
| Less than 12 months |  | 12 months or more |  | Total
dollars in millions | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses |  | Fair value |  | Unrealized losses
Investment securities available for sale |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | $ | 1,811 |  |  | $ | (2) |  |  | $ | — |  |  | $ | — |  |  | $ | 1,811 |  |  | $ | (2) |
Government agency | 17 |  |  | — |  |  | 79 |  |  | (1) |  |  | 96 |  |  | (1) |
Residential mortgage-backed securities | 3,992 |  |  | (36) |  |  | 1 |  |  | — |  |  | 3,993 |  |  | (36) |
Commercial mortgage-backed securities | 852 |  |  | (15) |  |  | 111 |  |  | (2) |  |  | 963 |  |  | (17) |
Corporate bonds | 52 |  |  | (1) |  |  | — |  |  | — |  |  | 52 |  |  | (1) |
Total | $ | 6,724 |  |  | $ | (54) |  |  | $ | 191 |  |  | $ | (3) |  |  | $ | 6,915 |  |  | $ | (57) |
As of March 31, 2022, there were 55 investment securities available for sale with continuous losses for more than 12 months, of which all were government sponsored enterprise-issued mortgage-backed securities or government agency securities. None of the unrealized losses identified as of March 31, 2022, or December 31, 2021, relate to the issuer’s ability to honor redemption obligations. Rather, the unrealized losses relate to changes in interest rates relative to when the investment securities were purchased, and do not indicate credit-related impairment. BancShares considered other factors including changes in credit ratings, delinquencies, and other macroeconomic factors in this determination. As a result, none of the securities were deemed to require an ACL. BancShares has the ability and intent to retain these securities for a period of time sufficient to recover all unrealized losses. Investment securities having an aggregate carrying value of $5.9 billion at March 31, 2022, and $5.7 billion at December 31, 2021, were pledged as collateral to secure public funds on deposit and certain short-term borrowings, and for other purposes as required by law. BancShares’ portfolio of held to maturity debt securities consists of mortgage-backed securities issued by government agencies and government sponsored entities, US Treasury notes, unsecured bonds issued by government agencies and government sponsored entities, securities issued by the World Bank and Federal Deposit Insurance Corporation (“FDIC”) guaranteed CDs with other financial institutions. Given the consistently strong credit rating of the U.S. Treasury, the World Bank and the long history of no credit losses on debt securities issued by government agencies and government sponsored entities, no ACL has been recorded on these securities. In the event there are downgrades to the credit rating of the U.S. Treasury or the World Bank or losses reported on securities issued by government agencies and government sponsored entities, BancShares will reevaluate its determination of zero expected credit losses on held to maturity debt securities. A security is considered past due once it is 30 days contractually past due under the terms of the agreement. The carrying value was zero for securities past due as of March 31, 2022 and December 31, 2021. There were no debt securities held to maturity on non-accrual status as of March 31, 2022 and December 31, 2021. Certain investments held by BancShares were recorded in other assets. BancShares held FHLB stock of $39 million and $40 million at March 31, 2022 and December 31, 2021, respectively; these securities are recorded at cost. BancShares held $67 million and $10 million of non-marketable securities without readily determinable fair values measured under the measurement exception at March 31, 2022 and December 31, 2021, respectively. All investments held in qualified affordable housing projects qualify for the proportional amortization method and totaled $533 million and $156 million at March 31, 2022 and December 31, 2021, respectively.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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