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Investment Securities | 12 Months Ended
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Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | INVESTMENT SECURITIES A summary of the Corporation’s investment securities follows:
(in millions) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
December 31, 2021 |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 3,010 |  |  | $ | 22 |  |  | $ | 39 |  |  | $ | 2,993 |
Residential mortgage-backed securities (a) | 13,397 |  |  | 67 |  |  | 176 |  |  | 13,288 |
Commercial mortgage-backed securities (a) | 709 |  |  | 2 |  |  | 6 |  |  | 705 |
Total investment securities available-for-sale | $ | 17,116 |  |  | $ | 91 |  |  | $ | 221 |  |  | $ | 16,986 |
December 31, 2020 |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 4,583 |  |  | $ | 76 |  |  | $ | 1 |  |  | $ | 4,658 |
Residential mortgage-backed securities (a) | 10,169 |  |  | 203 |  |  | 2 |  |  | 10,370 |
Total investment securities available-for-sale | $ | 14,752 |  |  | $ | 279 |  |  | $ | 3 |  |  | $ | 15,028 |
(a)Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. A summary of the Corporation’s investment securities in an unrealized loss position as of December 31, 2021 and 2020 follows:
| Less than 12 Months |  | 12 Months or more |  | Total
(in millions) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
December 31, 2021 |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 465 |  |  | $ | 6 |  |  | $ | 1,334 |  |  | $ | 33 |  |  | $ | 1,799 |  |  | $ | 39 |
Residential mortgage-backed securities (a) | 7,197 |  |  | 128 |  |  | 1,128 |  |  | 48 |  |  | 8,325 |  |  | 176 |
Commercial mortgage-backed securities (a) | 346 |  |  | 6 |  |  | — |  |  | — |  |  | 346 |  |  | 6 |
Total temporarily impaired securities | $ | 8,008 |  |  | $ | 140 |  |  | $ | 2,462 |  |  | $ | 81 |  |  | $ | 10,470 |  |  | $ | 221 |
December 31, 2020 |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 1,119 |  |  | $ | 1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,119 |  |  | $ | 1 |
Residential mortgage-backed securities (a) | 952 |  |  | 2 |  |  | — |  |  | — |  |  | 952 |  |  | 2 |
Total temporarily impaired securities | $ | 2,071 |  |  | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,071 |  |  | $ | 3 |
(a)Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. Unrealized losses resulted from changes in market interest rates and liquidity. The Corporation’s portfolio is comprised of securities issued or guaranteed by the U.S. government or government-sponsored enterprises. As such, it is expected that the securities would not be settled at a price less than the amortized cost of the investments. Further, the Corporation does not intend to sell the investments, and it is not more-likely-than-not that it will be required to sell the the investments before recovery of amortized costs. At December 31, 2021, the Corporation had 461 securities in an unrealized loss position with no allowance for credit losses, comprised of 20 U.S. Treasury securities, 406 residential mortgage-backed securities and 35 commercial mortgage-backed securities. Interest receivable on investment securities totaled $23 million and $18 million at December 31, 2021 and 2020 and was included in accrued income and other assets on the Consolidated Balance Sheets. Sales, calls and write-downs of investment securities available-for-sale, primarily from repositioning $1.0 billion of lower-yielding treasury securities in the year ended December 31, 2019, resulted in the following gains and losses recorded in net securities losses on the Consolidated Statements of Income, computed based on the adjusted cost of the specific security.
(in millions) |  |  |  |  |  |  |  |  |
Year Ended December 31 | 2021 |  | 2020 |  | 2019 |  |  |
Securities gains | $ | — |  |  | $ | 1 |  |  | $ | 1 |  |  |  |  |
Securities losses | — |  |  | (1) |  |  | (8) |  |  |  |  |
Net securities losses | $ | — |  |  | $ | — |  |  | $ | (7) |  |  |  |  |
The following table summarizes the amortized cost and fair values of debt securities by contractual maturity. Securities with multiple maturity dates are classified in the period of final maturity. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.
(in millions) |  |
December 31, 2021 | Amortized Cost |  | Fair Value |  |  |
Contractual maturity |  |  |  |  |  |
Within one year | $ | 170 |  |  | $ | 172 |  |  |  |
After one year through five years | 3,098 |  |  | 3,088 |  |  |  |
After five years through ten years | 1,290 |  |  | 1,297 |  |  |  |
After ten years | 12,558 |  |  | 12,429 |  |  |  |
Total investment securities | $ | 17,116 |  |  | $ | 16,986 |  |  |  |
Included in the contractual maturity distribution in the table above were residential mortgage-backed securities with a total amortized cost of $13.4 billion and a fair value of $13.3 billion and commercial mortgage-backed securities with a total amortized cost of $709 million and a fair value of $705 million. The actual cash flows of mortgage-backed securities may differ as borrowers of the underlying loans may exercise prepayment options. At December 31, 2021, investment securities with a carrying value of $2.7 billion were pledged where permitted or required by law, including $1.7 billion pledged to the Federal Home Loan Bank (FHLB) as collateral for potential future borrowings of approximately $1.6 billion and $1.0 billion to secure $946 million of liabilities, primarily public and other deposits of state and local government agencies and derivative instruments. For information on FHLB borrowings, refer to Note 12.

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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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