v2.4.0.6
Securities Available for Sale
 6 Months Ended
Jun. 30, 2012
Securities Available For Sale  
Securities Available For Sale

4.        Securities Available for Sale.

The following tables present information about the Company's available for sale securities:

 

     At June 30, 2012
     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$ 11,415$ 142$ —$ —$ 11,557
  U.S. agency securities  15,450  112  6  —  15,556
   Total U.S. government and agency securities  26,865  254  6  —  27,113
 Corporate and other debt:          
  Auto loan asset-backed securities   914  2  —  —  916
  Corporate bonds  1,467  5  1  —  1,471
  FFELP student loan asset-backed securities(1)  1,928  9  —  —  1,937
   Total Corporate and other debt  4,309  16  1  —  4,324
Total debt securities available for sale  31,174  270  7  —  31,437
Equity securities available for sale  15  —  10  —  5
Total$ 31,189$ 270$ 17$ —$ 31,442
              
              
(1)Amounts are backed by a guarantee from the U.S. Department of Education of at least 95% of the principal balance and interest on such loans.
  
  
     At December 31, 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$ 13,240$ 182$ —$ —$ 13,422
  U.S. agency securities  16,083  54  20  —  16,117
 Corporate and other debt(1)  944  —  3  —  941
Total debt securities available for sale  30,267  236  23  —  30,480
Equity securities available for sale  15  —  —  —  15
Total$ 30,282$ 236$ 23$ —$ 30,495
              
              
(1)Amounts represent FFELP student loan asset-backed securities, in which the loans are backed by a guarantee from the U.S. Department of Education of
 at least 95% of the principal balance and interest on such loans.

The tables below present the fair value of investments in securities available for sale that are in an unrealized loss position:

 

     Less than 12 Months  12 Months or Longer Total
At June 30, 2012 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. agency securities$ 2,238$ 4$ 525$ 2$ 2,763$ 6
   Total U.S. government and agency securities  2,238  4  525  2  2,763  6
 Corporate and other debt:            
  Corporate bonds  522  1  —  —  522  1
   Total Corporate and other debt  522  1  —  —  522  1
Total debt securities available for sale  2,760  5  525  2  3,285  7
Equity securities available for sale  5  10  —  —  5  10
Total$ 2,765$ 15$ 525$ 2$ 3,290$ 17
                
     Less than 12 Months  12 Months or Longer Total
At December 31, 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. agency securities$ 6,250$ 15$ 1,492$ 5$ 7,742$ 20
 Corporate and other debt  679  3  —  —  679  3
Total$ 6,929$ 18$ 1,492$ 5$ 8,421$ 23

Gross unrealized losses are recorded in Accumulated other comprehensive income.


For debt securities available for sale in an unrealized loss position, 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 the U.S. government and agency 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, 2012 and December 31, 2011.

 

For equity securities available for sale in an unrealized loss position, the Company does not intend to sell these securities or expect to be required to sell these securities prior to the recovery of the amortized cost basis. The Company believes that the equity securities with an unrealized loss in Accumulated other comprehensive income were not other-than-temporarily impaired at June 30, 2012.

The following table presents the amortized cost and fair value of debt securities available for sale by contractual maturity dates at June 30, 2012.

 

At June 30, 2012 Amortized Cost Fair Value Annualized Average Yield
   (dollars in millions)  
U.S. government and agency securities:      
 U.S. Treasury securities:     
  Due within 1 year$ 1,151$ 1,160 1.4%
  After 1 year but through 5 years  9,691  9,807 0.9%
  After 5 years  572  589 1.4%
   Total  11,414  11,556  
 U.S. agency securities:     
  After 5 years  15,450  15,556  
   Total  15,450  15,556 1.1%
   Total U.S. government and agency securities  26,864  27,112 1.0%
         
Corporate and other debt:      
 Auto loan asset-backed securities:      
  After 1 year but through 5 years  895  897 0.8%
  After 5 years  19  19 1.0%
   Total  914  916  
 Corporate bonds:      
  Due within 1 year  81  81 0.6%
  After 1 year but through 5 years  1,366  1,370 1.1%
  After 5 years  21  21 1.7%
   Total  1,468  1,472  
 FFELP student loan asset-backed securities:      
  After 1 year but through 5 years  23  23 0.8%
  After 5 years  1,905  1,914 1.2%
   Total  1,928  1,937  
   Total Corporate and other debt  4,310  4,325 1.1%
         
   Total debt securities available for sale$ 31,174$ 31,437 1.0%

See Note 6 for additional information on securities issued by VIEs, including U.S. agency mortgage-backed securities, auto loan asset-backed securities and FFELP student loan asset-backed securities.

The following table presents information pertaining to sales of securities available for sale during the three and six months ended June 30, 2012 and 2011:

 

  Three Months EndedSix Months Ended
  June 30,June 30,
  2012 2011 2012  2011
  (dollars in millions)
Gross realized gains$ 24$ 84$ 25 $ 96
          
Gross realized losses$ 2$ 2$ 2 $ 2
          
Proceeds of sales of 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.