Investment Securities (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

The following table provides 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 securities portfolios as of December 31:


	2020					2019
($ in millions)	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value	Amortized Cost	Unrealized Gains	Unrealized Losses	Fair Value
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities	$	74	4	—	78	74	1	—	75
Obligations of states and political subdivisions securities	17		—	—	17	18	—	—	18
Mortgage-backed securities:
Agency residential mortgage-backed securities	11,147		768	(8)	11,907	13,746	388	(19)	14,115
Agency commercial mortgage-backed securities	16,745		1,481	(5)	18,221	15,141	564	(12)	15,693
Non-agency commercial mortgage-backed securities	3,323		267	—	3,590	3,242	123	—	3,365
Asset-backed securities and other debt securities	3,152		48	(24)	3,176	2,189	29	(12)	2,206
Other securities(a)	524		—	—	524	556	—	—	556
Total available-for-sale debt and other securities	$	34,982	2,568	(37)	37,513	34,966	1,105	(43)	36,028
Held-to-maturity securities:
Obligations of states and political subdivisions securities	$	9	—	—	9	15	—	—	15
Asset-backed securities and other debt securities	2		—	—	2	2	—	—	2
Total held-to-maturity securities	$	11	—	—	11	17	—	—	17

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $40, $482 and $2, respectively, at December 31, 2020 and $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 December 31:


($ in millions)	2020		2019
Trading debt securities	$	560	297
Equity securities	313		564

Realized Gains and Losses Recognized in Income from Investment Securities

The following table presents securities gains (losses) recognized in the Consolidated Statements of Income for the years ended December 31:


($ in millions)	2020		2019	2018
Available-for-sale debt and other securities:
Realized gains	$	47	60	72
Realized losses	(2)		(50)	(82)
OTTI	—		(1)	—
Net realized gains (losses) on available-for-sale debt and other securities	$	45	9	(10)
Total trading debt securities gains (losses)	$	2	3	(15)
Total equity securities gains (losses)(a)	$	17	31	(44)
Total gains (losses) recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities(b)	$	64	43	(69)

(a)Includes $7 of net unrealized gains, $26 of net unrealized gains and $45 of net unrealized losses for the years ended December 31, 2020, 2019 and 2018, respectively.

(b)Excludes $5 and $7 of net securities gains for the years ended December 31, 2020 and 2019, respectively, and an insignificant amount of net securities losses for the year ended December 31, 2018 related to securities held by FTS to facilitate the timely execution of customer transactions. These gains (losses) are included in commercial banking revenue and wealth and asset management revenue in the 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 December 31, 2020 are shown in the following table:


	Available-for-Sale Debt and Other			Held-to-Maturity
($ in millions)	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Debt securities:(a)
Less than 1 year	$	633	648	2	2
1-5 years	15,881		16,959	7	7
5-10 years	12,214		13,385	—	—
Over 10 years	5,730		5,997	2	2
Other securities	524		524	—	—
Total	$	34,982	37,513	11	11

(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 December 31:


	Less than 12 months			12 months or more		Total
($ in millions)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
2020
Agency residential mortgage-backed securities	$	426	(8)	1	—	427	(8)
Agency commercial mortgage-backed securities	388		(5)	—	—	388	(5)
Non-agency commercial mortgage-backed securities	2		—	—	—	2	—
Asset-backed securities and other debt securities	520		(7)	603	(17)	1,123	(24)
Total	$	1,336	(20)	604	(17)	1,940	(37)
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)