| Securities Available For Sale |
| 4. |
Securities Available for Sale. |
The following table presents information about the Company's available for sale ("AFS") securities:
| |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
At June 30, 2011 |
|
| |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Other-than-
Temporary
Impairment |
|
|
Fair Value |
|
| |
|
(dollars in millions) |
|
|
Debt securities available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
9,233 |
|
|
$ |
148 |
|
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
9,378 |
|
|
U.S. agency securities |
|
|
14,986 |
|
|
|
6 |
|
|
|
64 |
|
|
|
— |
|
|
|
14,928 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. government and agency securities |
|
$ |
24,219 |
|
|
$ |
154 |
|
|
$ |
67 |
|
|
$ |
— |
|
|
$ |
24,306 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
At December 31, 2010 |
|
| |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Other-than-
Temporary
Impairment |
|
|
Fair Value |
|
| |
|
(dollars in millions) |
|
|
Debt securities available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
18,812 |
|
|
$ |
199 |
|
|
$ |
34 |
|
|
$ |
— |
|
|
$ |
18,977 |
|
|
U.S. agency securities |
|
|
10,774 |
|
|
|
16 |
|
|
|
118 |
|
|
|
— |
|
|
|
10,672 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. government and agency securities |
|
$ |
29,586 |
|
|
$ |
215 |
|
|
$ |
152 |
|
|
$ |
— |
|
|
$ |
29,649 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below presents the fair value of investments in debt securities available for sale that have been in an unrealized loss position:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Less than 12 Months |
|
|
12 Months or Longer |
|
|
Total |
|
|
At June 30, 2011 |
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
| |
|
(dollars in millions) |
|
|
Debt securities available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
619 |
|
|
$ |
3 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
619 |
|
|
$ |
3 |
|
|
U.S. agency securities |
|
|
11,023 |
|
|
|
64 |
|
|
|
— |
|
|
|
— |
|
|
|
11,023 |
|
|
|
64 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. government and agency securities |
|
$ |
11,642 |
|
|
$ |
67 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
11,642 |
|
|
$ |
67 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
Less than 12 Months |
|
|
12 Months or Longer |
|
|
Total |
|
|
At December 31, 2010 |
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
|
Fair Value |
|
|
Gross
Unrealized
Losses |
|
| |
|
(dollars in millions) |
|
|
Debt securities available for sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government and agency securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities |
|
$ |
1,960 |
|
|
$ |
34 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,960 |
|
|
$ |
34 |
|
|
U.S. agency securities |
|
|
7,736 |
|
|
|
118 |
|
|
|
— |
|
|
|
— |
|
|
|
7,736 |
|
|
|
118 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. government and agency securities |
|
$ |
9,696 |
|
|
$ |
152 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
9,696 |
|
|
$ |
152 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
|
Gross unrealized losses are recorded in Accumulated other comprehensive income.
The Company does not intend to sell these securities or expect to be required to sell these securities prior to recovery of the amortized cost basis. In addition, the Company does not expect these securities to experience a credit loss given the explicit and implicit guarantee provided by the U.S. government. The Company believes that the debt securities with an unrealized loss in Accumulated other comprehensive income were not other-than-temporarily impaired at June 30, 2011 and December 31, 2010.
The following table presents the amortized cost and fair value of debt securities available for sale by contractual maturity dates at June 30, 2011.
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Amortized Cost |
|
|
Fair Value |
|
|
Annualized
Average Yield |
|
| |
|
(dollars in millions) |
|
|
|
|
|
U.S. government and agency securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Due within 1 year |
|
$ |
304 |
|
|
$ |
304 |
|
|
|
0.4 |
% |
|
After 1 year but through 5 years |
|
|
8,830 |
|
|
|
8,975 |
|
|
|
1.4 |
% |
|
After 5 years |
|
|
99 |
|
|
|
99 |
|
|
|
1.7 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
9,233 |
|
|
$ |
9,378 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. agency securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
After 5 years |
|
|
14,986 |
|
|
|
14,928 |
|
|
|
1.3 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total U.S. government and agency securities: |
|
$ |
24,219 |
|
|
$ |
24,306 |
|
|
|
1.4 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents information pertaining to sales of debt securities available for sale:
| |
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
June 30, 2011 |
|
|
Six Months Ended
June 30, 2011 |
|
| |
|
(dollars in millions) |
|
|
Gross realized gains |
|
$ |
84 |
|
|
$ |
96 |
|
| |
|
|
|
|
|
|
|
|
|
Gross realized losses |
|
$ |
2 |
|
|
$ |
2 |
|
| |
|
|
|
|
|
|
|
|
|
Proceeds of sales of debt securities available for sale |
|
$ |
7,021 |
|
|
$ |
13,142 |
|
| |
|
|
|
|
|
|
|
|
Gross realized gains and losses are recognized in Other revenues in the condensed consolidated statements of income. There were no sales of AFS securities during the three and six months ended June 30, 2010. |