Investment Securities (Tables)

6 Months Ended

Jun. 30, 2020

Investments, Debt and Equity Securities [Abstract]

The following tables provide the amortized cost, unrealized gains and losses and fair value for the major categories of the available-for-sale debt and other securities and held-to-maturity investment securities portfolios as of:


June 30, 2020 ($ in millions)	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
Available-for-sale debt and other securities:
U.S. Treasury and federal agency securities	$	74	4	—	78
Obligations of states and political subdivisions securities	17		—	—	17
Mortgage-backed securities:
Agency residential mortgage-backed securities	12,907		1,002	—	13,909
Agency commercial mortgage-backed securities	16,279		1,612	—	17,891
Non-agency commercial mortgage-backed securities	3,223		218	—	3,441
Asset-backed securities and other debt securities	2,732		25	(42)	2,715
Other securities^(a)	548		—	—	548
Total available-for-sale debt and other securities	$	35,780	2,861	(42)	38,599
Held-to-maturity securities:
Obligations of states and political subdivisions securities	$	14	—	—	14
Asset-backed securities and other debt securities	2		—	—	2
Total held-to-maturity securities	$	16	—	—	16

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $68, $478 and $2, respectively, at June 30, 2020, that are carried at cost.


December 31, 2019 ($ in millions)	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
Available-for-sale debt and other securities:
U.S. Treasury and federal agency securities	$	74	1	—	75
Obligations of states and political subdivisions securities	18		—	—	18
Mortgage-backed securities:
Agency residential mortgage-backed securities	13,746		388	(19)	14,115
Agency commercial mortgage-backed securities	15,141		564	(12)	15,693
Non-agency commercial mortgage-backed securities	3,242		123	—	3,365
Asset-backed securities and other debt securities	2,189		29	(12)	2,206
Other securities^(a)	556		—	—	556
Total available-for-sale debt and other securities	$	34,966	1,105	(43)	36,028
Held-to-maturity securities:
Obligations of states and political subdivisions securities	$	15	—	—	15
Asset-backed securities and other debt securities	2		—	—	2
Total held-to-maturity securities	$	17	—	—	17

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $76, $478 and $2, respectively, at December 31, 2019, that are carried at cost.

The following table provides the fair value of trading debt securities and equity securities as of:


($ in millions)	June 30, 2020		December 31, 2019
Trading debt securities	$	526	297
Equity securities	273		564

Realized Gains and Losses Recognized in Income from Investment Securities

The following table presents securities gains (losses) recognized in the Condensed Consolidated Statements of Income:


	For the three months ended June 30,				For the six months ended June 30,
($ in millions)	2020		2019	2020	2019
Available-for-sale debt and other securities:
Realized gains	$	—	34	1	47
Realized losses	—		(33)	(1)	(47)
OTTI	—		(1)	—	(1)
Net realized losses on available-for sale debt and other securities	$	—	—	—	(1)
Total trading debt securities gains	$	—	2	3	5
Total equity securities (losses) gains^(a)	$	21	8	(3)	26
Total gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities^(b)	$	21	10	—	30

(a)Includes net unrealized gains of $21 and net unrealized losses of $2 for the three and six months ended June 30, 2020, respectively, and net unrealized gains of $4 and $23 for the three and six months ended June 30, 2019, respectively.

(b)Excludes $8 and $6 of net securities gains for the three and six months ended June 30, 2020, respectively, and $1 and $4 of net securities gains for the three and six months ended June 30, 2019, respectively, included in commercial banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income related to securities held by FTS to facilitate the timely execution of customer transactions.

Contractual Maturity Schedule

The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale debt and other securities and held-to-maturity investment securities as of June 30, 2020 are shown in the following table:


($ in millions)	Available-for-Sale Debt and Other				Held-to-Maturity
			Amortized Cost	Fair Value	Amortized Cost	Fair Value
Debt securities:^(a)
Less than 1 year	$	55	57	4	4
1-5 years	14,598		15,565	10	10
5-10 years	14,644		16,051	—	—
Over 10 years	5,935		6,378	2	2
Other securities	548		548	—	—
Total	$	35,780	38,599	16	16

(a)Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties.

Fair Value and Gross Unrealized Loss of Securities Available for Sale

The following table provides the fair value and gross unrealized losses on available-for-sale debt and other securities in an unrealized loss position, aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position as of:


	Less than 12 months				12 months or more			Total
($ in millions)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
June 30, 2020
Agency residential mortgage-backed securities	$	—	—	1	—	1	—

Non-agency commercial mortgage-backed securities	12		—	—	—	12	—
Asset-backed securities and other debt securities	1,087		(27)	443	(15)	1,530	(42)
Total	$	1,099	(27)	444	(15)	1,543	(42)
December 31, 2019
Agency residential mortgage-backed securities	$	2,159	(19)	4	—	2,163	(19)
Agency commercial mortgage-backed securities	1,602		(12)	—	—	1,602	(12)
Asset-backed securities and other debt securities	367		(3)	379	(9)	746	(12)
Total	$	4,128	(34)	383	(9)	4,511	(43)