Investment Securities

12 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

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, 2022
Investment securities available-for-sale:
U.S. Treasury securities	$	2,810	$	—	$	146	$	2,664
Residential mortgage-backed securities (a)	13,983		—		2,328		11,655
Commercial mortgage-backed securities (a)	5,252		—		559		4,693
Total investment securities available-for-sale	$	22,045	$	—	$	3,033	$	19,012
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 December 31, 2022 and 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
December 31, 2022
U.S. Treasury securities	$	996	$	5	$	1,668	$	141	$	2,664	$	146
Residential mortgage-backed securities (a)	3,500		361		8,153		1,967		11,653		2,328
Commercial mortgage-backed securities (a)	4,008		405		685		154		4,693		559
Total temporarily impaired securities	$	8,504	$	771	$	10,506	$	2,262	$	19,010	$	3,033
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 the investments before recovery of amortized costs. At December 31, 2022, the Corporation had 1,289 securities in an unrealized loss position with no allowance for credit losses, comprised of 27 U.S. Treasury securities, 1,008 residential mortgage-backed securities and 254 commercial mortgage-backed securities.

Interest receivable on investment securities totaled $49 million and $36 million at December 31, 2022 and 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 years ended December 31, 2022 and 2021. During the year ended December 31, 2020, a $1 million gain was offset by a $1 million loss, recorded in noninterest income.

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)
December 31, 2022	Amortized Cost		Fair Value
Contractual maturity
Within one year	$	1,103	$	1,093
After one year through five years	1,943		1,797
After five years through ten years	5,518		4,946
After ten years	13,481		11,176


Total investment securities	$	22,045	$	19,012

At December 31, 2022, investment securities with a carrying value of $3.2 billion were pledged where permitted or required by law, including $1.0 billion pledged to the Federal Home Loan Bank (FHLB) as collateral for potential future borrowings and $2.2 billion to secure $1.0 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 12.