| Investments |
Investments The Company’s investment securities consist of the following (dollars in millions): | | | | | | | | | | March 31,
2015 | | December 31,
2014 | U.S. Treasury securities(1) | $ | 608 |
| | $ | 1,330 |
| U.S. government agency securities | 628 |
| | 1,033 |
| States and political subdivisions of states | 10 |
| | 10 |
| Residential mortgage-backed securities - Agency(2) | 1,532 |
| | 1,576 |
| Total investment securities | $ | 2,778 |
| | $ | 3,949 |
| | | | |
| | (1) | Includes $17 million and $16 million of U.S. Treasury securities pledged as swap collateral in lieu of cash as of March 31, 2015 and December 31, 2014, respectively. |
| | (2) | Consists of residential mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae. |
The amortized cost, gross unrealized gains and losses, and fair value of available-for-sale and held-to-maturity investment securities are as follows (dollars in millions): | | | | | | | | | | | | | | | | | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | At March 31, 2015 | | | | | | | | Available-for-Sale Investment Securities(1) | | | | | | | | U.S. Treasury securities | $ | 600 |
| | $ | 7 |
| | $ | — |
| | $ | 607 |
| U.S. government agency securities | 620 |
| | 8 |
| | — |
| | 628 |
| Residential mortgage-backed securities - Agency | 1,406 |
| | 22 |
| | — |
| | 1,428 |
| Total available-for-sale investment securities | $ | 2,626 |
| | $ | 37 |
| | $ | — |
| | $ | 2,663 |
| Held-to-Maturity Investment Securities(2) | | | | | | | | U.S. Treasury securities(3) | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 1 |
| States and political subdivisions of states | 10 |
| | — |
| | — |
| | 10 |
| Residential mortgage-backed securities - Agency(4) | 104 |
| | 2 |
| | — |
| | 106 |
| Total held-to-maturity investment securities | $ | 115 |
| | $ | 2 |
| | $ | — |
| | $ | 117 |
| | | | | | | | | At December 31, 2014 | | | | | | | | Available-for-Sale Investment Securities(1) | | | | | | | | U.S. Treasury securities | $ | 1,317 |
| | $ | 12 |
| | $ | — |
| | $ | 1,329 |
| U.S. government agency securities | 1,021 |
| | 12 |
| | — |
| | 1,033 |
| Residential mortgage-backed securities - Agency | 1,473 |
| | 13 |
| | (1 | ) | | 1,485 |
| Total available-for-sale investment securities | $ | 3,811 |
| | $ | 37 |
| | $ | (1 | ) | | $ | 3,847 |
| Held-to-Maturity Investment Securities(2) | | | | | | | | U.S. Treasury securities(3) | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 1 |
| States and political subdivisions of states | 10 |
| | — |
| | — |
| | 10 |
| Residential mortgage-backed securities - Agency(4) | 91 |
| | 2 |
| | — |
| | 93 |
| Total held-to-maturity investment securities | $ | 102 |
| | $ | 2 |
| | $ | — |
| | $ | 104 |
| | | | | | | | |
| | (1) | Available-for-sale investment securities are reported at fair value. |
| | (2) | Held-to-maturity investment securities are reported at amortized cost. |
| | (3) | Amount represents securities pledged as collateral to a government-related merchant for which transaction settlement occurs beyond the normal 24-hour period. |
| | (4) | Amounts represent residential mortgage-backed securities that were classified as held-to-maturity as they were entered into as a part of the Company's community reinvestment initiatives. |
The following table provides information about investment securities with aggregate gross unrealized losses and the length of time that individual investment securities have been in a continuous unrealized loss position (dollars in millions). Gross unrealized losses related to investment securities were not material for the three months ended March 31, 2015. | | | | | | | | | | | | | | | | | | | | | Number of Securities in a Loss Position | | Less than 12 months | | More than 12 months | | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | At December 31, 2014 | | | | | | | | | | Available-for-Sale Investment Securities | | | | | | | | | | Residential mortgage-backed securities - Agency | 8 |
| | $ | 97 |
| | $ | — |
| | $ | 225 |
| | $ | (1 | ) | | | | | | | | | | |
There were no gains or losses related to other-than-temporary impairments during the three months ended March 31, 2015 and 2014. The following table provides information about proceeds from sales, recognized gains and losses and net unrealized gains and losses on available-for-sale securities (dollars in millions): | | | | | | | | | | For the Three Months Ended March 31, | | 2015 | | 2014 | Proceeds from the sales of available-for-sale investment securities | $ | 899 |
| | $ | 1,220 |
| Gain on sales of available-for-sale investment securities | $ | 8 |
| | $ | 4 |
| Net unrealized gain recorded in other comprehensive income, before-tax | $ | — |
| | $ | 3 |
| Net unrealized gain recorded in other comprehensive income, after-tax | $ | — |
| | $ | 2 |
| | | | |
Maturities of available-for-sale debt securities and held-to-maturity debt securities are provided in the table below (dollars in millions): | | | | | | | | | | | | | | | | | | | | | | One Year or Less | | After One Year Through Five Years | | After Five Years Through Ten Years | | After Ten Years | | Total | At March 31, 2015 | | | | | | | | | | Available-for-Sale—Amortized Cost | | | | | | | | | | U.S. Treasury securities | $ | 100 |
| | $ | 500 |
| | $ | — |
| | $ | — |
| | $ | 600 |
| U.S. government agency securities | 125 |
| | 495 |
| | — |
| | — |
| | 620 |
| Residential mortgage-backed securities - Agency | — |
| | — |
| | 465 |
| | 941 |
| | 1,406 |
| Total available-for-sale investment securities | $ | 225 |
| | $ | 995 |
| | $ | 465 |
| | $ | 941 |
| | $ | 2,626 |
| Held-to-Maturity—Amortized Cost | | | | | | | | | | U.S. Treasury securities | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 1 |
| State and political subdivisions of states | — |
| | — |
| | — |
| | 10 |
| | 10 |
| Residential mortgage-backed securities - Agency | — |
| | — |
| | — |
| | 104 |
| | 104 |
| Total held-to-maturity investment securities | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 114 |
| | $ | 115 |
| Available-for-Sale—Fair Values | | | | | | | | | | U.S. Treasury securities | $ | 101 |
| | $ | 506 |
| | $ | — |
| | $ | — |
| | $ | 607 |
| U.S. government agency securities | 126 |
| | 502 |
| | — |
| | — |
| | 628 |
| Residential mortgage-backed securities - Agency | — |
| | — |
| | 471 |
| | 957 |
| | 1,428 |
| Total available-for-sale investment securities | $ | 227 |
| | $ | 1,008 |
| | $ | 471 |
| | $ | 957 |
| | $ | 2,663 |
| Held-to-Maturity—Fair Values | | | | | | | | | | U.S. Treasury securities | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 1 |
| State and political subdivisions of states | — |
| | — |
| | — |
| | 10 |
| | 10 |
| Residential mortgage-backed securities - Agency | — |
| | — |
| | — |
| | 106 |
| | 106 |
| Total held-to-maturity investment securities | $ | 1 |
| | $ | — |
| | $ | — |
| | $ | 116 |
| | $ | 117 |
| | | | | | | | | | |
Other Investments As a part of the Company's community reinvestment initiatives, the Company has made equity investments in certain limited partnerships and limited liability companies that finance the construction and rehabilitation of affordable rental housing, as well as stimulate economic development in low to moderate income communities. These investments are accounted for using the equity method of accounting and are recorded within other assets. The related commitment for future investments is recorded in accrued expenses and other liabilities within the condensed consolidated statements of financial condition. The portion of each investment's operating results allocable to the Company is recorded in other expense within the condensed consolidated statements of income. The Company earns a return primarily through the receipt of tax credits allocated to the affordable housing projects and the community revitalization projects. These investments are not consolidated as the Company does not have a controlling financial interest in the entities. As of March 31, 2015 and December 31, 2014, the Company had outstanding investments in these entities of $312 million and $325 million, respectively, and related contingent liabilities of $46 million and $51 million, respectively. Of the above outstanding equity investments, the Company had $197 million and $201 million, respectively, of investments related to affordable housing projects, which had $32 million and $38 million related contingent liabilities as of March 31, 2015 and December 31, 2014, respectively. |