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Investment Securities | 9 Months Ended
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Sep. 30, 2022
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | INVESTMENT SECURITIES A summary of the Corporation’s investment securities, which are defined by the Corporation as debt securities reported on the Consolidated Balance Sheet as investment securities available-for-sale, follows:
(in millions) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
September 30, 2022 |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 2,918 |  |  | $ | — |  |  | $ | 162 |  |  | $ | 2,756 |
Residential mortgage-backed securities (a) | 14,390 |  |  | — |  |  | 2,338 |  |  | 12,052 |
Commercial mortgage-backed securities (a) | 5,251 |  |  | — |  |  | 607 |  |  | 4,644 |
Total investment securities available-for-sale | $ | 22,559 |  |  | $ | — |  |  | $ | 3,107 |  |  | $ | 19,452 |
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 |
(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 September 30, 2022 and December 31, 2021 follows:
| Less than 12 Months |  | 12 Months or more |  | Total
(in millions) | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses
September 30, 2022 |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 1,093 |  |  | $ | 8 |  |  | $ | 1,663 |  |  | $ | 154 |  |  | $ | 2,756 |  |  | $ | 162 |
Residential mortgage-backed securities (a) | 7,648 |  |  | 1,157 |  |  | 4,398 |  |  | 1,181 |  |  | 12,046 |  |  | 2,338 |
Commercial mortgage-backed securities (a) | 4,477 |  |  | 564 |  |  | 167 |  |  | 43 |  |  | 4,644 |  |  | 607 |
Total temporarily impaired securities | $ | 13,218 |  |  | $ | 1,729 |  |  | $ | 6,228 |  |  | $ | 1,378 |  |  | $ | 19,446 |  |  | $ | 3,107 |
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 |
(a)Issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. Unrealized losses on investment securities resulted from changes in market interest rates. 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 investments before recovery of amortized costs. At September 30, 2022, the Corporation had 1,290 securities in an unrealized loss position with no allowance for credit losses, comprised of 28 U.S. Treasury securities, 1,008 residential mortgage-backed securities and 254 commercial mortgage-backed securities. Interest receivable on investment securities totaled $48 million at September 30, 2022 and $36 million at December 31, 2021 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, computed based on the adjusted cost of the specific security, resulted in no gains or losses during the three months ended and nine months ended September 30, 2022 or September 30, 2021. The following table summarizes the amortized cost and fair values of investment securities by contractual maturity. Securities with multiple maturity dates are classified in the period of final maturity. The actual cash flows of mortgage-backed securities may differ as borrowers of the underlying loans may exercise prepayment options. 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) |
September 30, 2022 | Amortized Cost |  | Fair Value
Contractual maturity |  |  |
Within one year | $ | 1,101 |  |  | $ | 1,092 |
After one year through five years | 2,061 |  |  | 1,898 |
After five years through ten years | 5,522 |  |  | 4,910 |
After ten years | 13,875 |  |  | 11,552 |
Total investment securities | $ | 22,559 |  |  | $ | 19,452 |
At September 30, 2022, investment securities with a carrying value of $2.8 billion were pledged where permitted or required by law, including $1.1 billion pledged to the Federal Home Loan Bank (FHLB) as collateral for potential future borrowings and $1.7 billion to secure $1.2 billion of liabilities, primarily public and other deposits of state and local government agencies as well as derivative instruments. For information on FHLB borrowings, refer to Note 7.

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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 https://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 https://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 https://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 https://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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