Investment Securities (Tables)

9 Months Ended

Sep. 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:


September 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	$	75	3	—	78
Obligations of states and political subdivisions securities	17		—	—	17
Mortgage-backed securities:
Agency residential mortgage-backed securities	11,711		894	(2)	12,603
Agency commercial mortgage-backed securities	16,173		1,578	(1)	17,750
Non-agency commercial mortgage-backed securities	3,317		258	—	3,575
Asset-backed securities and other debt securities	2,869		37	(35)	2,871
Other securities(a)	531		—	—	531
Total available-for-sale debt and other securities	$	34,693	2,770	(38)	37,425
Held-to-maturity securities:
Obligations of states and political subdivisions securities	$	13	—	—	13
Asset-backed securities and other debt securities	2		—	—	2
Total held-to-maturity securities	$	15	—	—	15

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $47, $482 and $2, respectively, at September 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)	September 30, 2020		December 31, 2019
Trading debt securities	$	704	297
Equity securities	277		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 September 30,			For the nine months ended September 30,
($ in millions)	2020		2019	2020	2019
Available-for-sale debt and other securities:
Realized gains	$	46	3	47	51
Realized losses	(1)		—	(2)	(47)
OTTI	—		—	—	(1)
Net realized gains on available-for sale debt and other securities	$	45	3	45	3
Total trading debt securities gains (losses)	$	(1)	—	3	5
Total equity securities gains(a)	$	6	2	3	27
Total gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities(b)	$	50	5	51	35

(a)Includes net unrealized losses of $1 and $3 for the three and nine months ended September 30, 2020, respectively, and an immaterial net unrealized gain and a net unrealized gain of $23 for the three and nine months ended September 30, 2019, respectively.

(b)Excludes $1 and $7 of net securities gains for the three and nine months ended September 30, 2020, respectively, and $2 and $6 of net securities gains for the three and nine months ended September 30, 2019, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These gains are included in commercial banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income.

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 September 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	$	516	538	6	6
1-5 years	13,612		14,538	7	7
5-10 years	14,103		15,463	—	—
Over 10 years	5,931		6,355	2	2
Other securities	531		531	—	—
Total	$	34,693	37,425	15	15

(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
September 30, 2020
Agency residential mortgage-backed securities	$	72	(2)	1	—	73	(2)
Agency commercial mortgage-backed securities	75		(1)	—	—	75	(1)
Non-agency commercial mortgage-backed securities	24		—	—	—	24	—
Asset-backed securities and other debt securities	864		(16)	533	(19)	1,397	(35)
Total	$	1,035	(19)	534	(19)	1,569	(38)
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)