v3.19.3.a.u2
Debt Securities (Tables)
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Schedule Of Amortized Cost, Gross Unrealized Gains And Losses, And Estimated Fair Value Of Securities Available For Sale And Securities Held To Maturity
The amortized cost, gross unrealized gains and losses, and estimated fair value of debt securities held to maturity and debt securities available for sale are as follows:
 
December 31, 2019
 
 
 
Recognized in OCI (1)
 
 
 
Not recognized in OCI
 
 
 
Amortized
Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Carrying Value
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
(In millions)
Debt securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential agency
$
736

 
$
—

 
$
(26
)
 
$
710

 
$
22

 
$
—

 
$
732

Commercial agency
625

 
—

 
(3
)
 
622

 
20

 
(2
)
 
640

 
$
1,361

 
$
—

 
$
(29
)
 
$
1,332

 
$
42

 
$
(2
)
 
$
1,372

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
180

 
$
2

 
$
—

 
$
182

 
 
 
 
 
$
182

Federal agency securities
42

 
1

 
—

 
43

 
 
 
 
 
43

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential agency
15,336

 
218

 
(38
)
 
15,516

 
 
 
 
 
15,516

Residential non-agency
1

 
—

 
—

 
1

 
 
 
 
 
1

Commercial agency
4,720

 
77

 
(31
)
 
4,766

 
 
 
 
 
4,766

Commercial non-agency
639

 
8

 
—

 
647

 
 
 
 
 
647

Corporate and other debt securities
1,414

 
38

 
(1
)
 
1,451

 
 
 
 
 
1,451

 
$
22,332

 
$
344

 
$
(70
)
 
$
22,606

 
 
 
 
 
$
22,606

 
 
December 31, 2018
 
 
 
Recognized in OCI (1)
 
 
 
Not recognized in OCI
 
 
 
Amortized
Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Carrying Value
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
(In millions)
Debt securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential agency
$
883

 
$
—

 
$
(32
)
 
$
851

 
$
1

 
$
(10
)
 
$
842

Commercial agency
634

 
—

 
(3
)
 
631

 
—

 
(13
)
 
618

 
$
1,517

 
$
—

 
$
(35
)
 
$
1,482

 
$
1

 
$
(23
)
 
$
1,460

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
284

 
$
—

 
$
(4
)
 
$
280

 
 
 
 
 
$
280

Federal agency securities
43

 
—

 
—

 
43

 
 
 
 
 
43

Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential agency
17,064

 
26

 
(466
)
 
16,624

 
 
 
 
 
16,624

Residential non-agency
2

 
—

 
—

 
2

 
 
 
 
 
2

Commercial agency
3,891

 
8

 
(64
)
 
3,835

 
 
 
 
 
3,835

Commercial non-agency
768

 
2

 
(10
)
 
760

 
 
 
 
 
760

Corporate and other debt securities
1,206

 
2

 
(23
)
 
1,185

 
 
 
 
 
1,185

 
$
23,258

 
$
38

 
$
(567
)
 
$
22,729

 
 
 
 
 
$
22,729


_________
(1)
The gross unrealized losses recognized in OCI on securities held to maturity resulted from a transfer of securities available for sale to held to maturity in the second quarter of 2013.
Schedule Of Cost And Estimated Fair Value Of Securities Available For Sale And Securities Held To Maturity By Contractual Maturity
The amortized cost and estimated fair value of debt securities held to maturity and debt securities available for sale at December 31, 2019, by contractual maturity, are shown below. 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.
 
Amortized
Cost
 
Estimated
Fair Value
 
(In millions)
Debt securities held to maturity:
 
 
 
Mortgage-backed securities:
 
 
 
Residential agency
$
736

 
$
732

Commercial agency
625

 
640

 
$
1,361

 
$
1,372

Debt securities available for sale:
 
 
 
Due in one year or less
$
79

 
$
79

Due after one year through five years
1,089

 
1,110

Due after five years through ten years
415

 
432

Due after ten years
53

 
55

Mortgage-backed securities:
 
 
 
Residential agency
15,336

 
15,516

Residential non-agency
1

 
1

Commercial agency
4,720

 
4,766

Commercial non-agency
639

 
647

 
$
22,332

 
$
22,606
Schedule Of Gross Unrealized Losses And Estimated Fair Value Of Securities Available For Sale and Held To Maturity
The following tables present gross unrealized losses and the related estimated fair value of debt securities held to maturity and debt securities available for sale at December 31, 2019 and 2018. For debt securities transferred to held to maturity from available for sale, the analysis in the tables below is comparing the securities' original amortized cost to its current estimated fair value. These securities are segregated between investments that have been in a continuous unrealized loss position for less than twelve months and for twelve months or more.
 
December 31, 2019
 
Less Than Twelve Months
 
Twelve Months or More
 
Total
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
(In millions)
Debt securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Residential agency
$
82

 
$
—

 
$
501

 
$
(5
)
 
$
583

 
$
(5
)
Commercial agency
—

 
—

 
127

 
(5
)
 
127

 
(5
)
 
$
82

 
$
—

 
$
628

 
$
(10
)
 
$
710

 
$
(10
)
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Residential agency
2,402

 
(11
)
 
2,505

 
(27
)
 
4,907

 
(38
)
Commercial agency
1,449

 
(31
)
 
73

 
—

 
1,522

 
(31
)
Corporate and other debt securities
19

 
—

 
32

 
(1
)
 
51

 
(1
)
 
$
3,870

 
$
(42
)
 
$
2,610

 
$
(28
)
 
$
6,480

 
$
(70
)
 
 
December 31, 2018
 
Less Than Twelve Months
 
Twelve Months or More
 
Total
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
Estimated
Fair
Value
 
Gross
Unrealized
Losses
 
(In millions)
Debt securities held to maturity:
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Residential agency
$
—

 
$
—

 
$
842

 
$
(42
)
 
$
842

 
$
(42
)
Commercial agency
486

 
(7
)
 
132

 
(9
)
 
618

 
(16
)
 
$
486

 
$
(7
)
 
$
974

 
$
(51
)
 
$
1,460

 
$
(58
)
 
 
 
 
 
 
 
 
 
 
 
 
Debt securities available for sale:
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
—

 
$
—

 
$
261

 
$
(4
)
 
$
261

 
$
(4
)
Mortgage-backed securities:
 
 
 
 
 
 
 
 
 
 
 
Residential agency
2,830

 
(37
)
 
11,010

 
(429
)
 
13,840

 
(466
)
Commercial agency
1,073

 
(13
)
 
2,254

 
(51
)
 
3,327

 
(64
)
Commercial non-agency
229

 
(1
)
 
404

 
(9
)
 
633

 
(10
)
Corporate and other debt securities
659

 
(11
)
 
310

 
(12
)
 
969

 
(23
)
 
$
4,791

 
$
(62
)
 
$
14,239

 
$
(505
)
 
$
19,030

 
$
(567
)
Schedule Of Gross Realized Gains And Gross Realized Losses On Available For Sale Securities
Gross realized gains and gross realized losses on sales of debt securities available for sale from continuing operations are shown in the table below. The cost of securities sold is based on the specific identification method.
 
2019
 
2018
 
2017
 
(In millions)
Gross realized gains
$
16

 
$
4

 
$
22

Gross realized losses
(43
)
 
(1
)
 
(5
)
OTTI
(1
)
 
(2
)
 
(1
)
Debt securities available for sale gains (losses), net (1)
$
(28
)
 
$
1

 
$
16

_________
(1) The securities gains (losses), net balances above exclude net trading securities gains of $3 million recognized during 2017.