Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2021

The tables below present the activity of the components of OCI and AOCI for the three months ended:


	Total OCI				Total AOCI
June 30, 2021 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding gains on available-for-sale debt securities arising during period	$	306	(71)	235
Reclassification adjustment for net gains on available-for-sale debt securities included in net income	(7)		2	(5)
Net unrealized gains on available-for-sale debt securities	299		(69)	230	1,242	230	1,472

Unrealized holding gains on cash flow hedge derivatives arising during period	11		(2)	9
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(73)		15	(58)
Net unrealized gains on cash flow hedge derivatives	(62)		13	(49)	597	(49)	548

Net actuarial loss arising during the year	(1)		—	(1)
Reclassification of amounts to net periodic benefit costs	3		(1)	2
Defined benefit pension plans, net	2		(1)	1	(43)	1	(42)

Other	—		—	—	(4)	—	(4)
Total	$	239	(57)	182	1,792	182	1,974


	Total OCI				Total AOCI
June 30, 2020 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding gains on available-for-sale debt securities arising during period	$	602	(146)	456

Net unrealized gains on available-for-sale debt securities	602		(146)	456	1,694	456	2,150

Unrealized holding gains on cash flow hedge derivatives arising during period	83		(17)	66
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(62)		13	(49)
Net unrealized gains on cash flow hedge derivatives	21		(4)	17	824	17	841

Reclassification of amounts to net periodic benefit costs	1		—	1
Defined benefit pension plans, net	1		—	1	(41)	1	(40)
Total	$	624	(150)	474	2,477	474	2,951

The tables below present the activity of the components of OCI and AOCI for the six months ended:


	Total OCI				Total AOCI
June 30, 2021 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding losses on available-for-sale debt securities arising during period	$	(609)	143	(466)
Reclassification adjustment for net losses on available-for-sale debt securities included in net income	9		(2)	7
Net unrealized gains on available-for-sale debt securities	(600)		141	(459)	1,931	(459)	1,472

Unrealized holding losses on cash flow hedge derivatives arising during period	(70)		15	(55)
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(146)		31	(115)
Net unrealized gains on cash flow hedge derivatives	(216)		46	(170)	718	(170)	548

Net actuarial loss arising during the year	(1)		—	(1)
Reclassification of amounts to net periodic benefit costs	4		(1)	3
Defined benefit pension plans, net	3		(1)	2	(44)	2	(42)

Other	—		—	—	(4)	—	(4)
Total	$	(813)	186	(627)	2,601	(627)	1,974


	Total OCI				Total AOCI
June 30, 2020 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding gains on available-for-sale debt securities arising during period	$	1,757	(419)	1,338

Net unrealized gains on available-for-sale debt securities	1,757		(419)	1,338	812	1,338	2,150

Unrealized holding gains on cash flow hedge derivatives arising during period	624		(131)	493
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(94)		20	(74)
Net unrealized gains on cash flow hedge derivatives	530		(111)	419	422	419	841

Reclassification of amounts to net periodic benefit costs	3		(1)	2
Defined benefit pension plans, net	3		(1)	2	(42)	2	(40)
Total	$	2,290	(531)	1,759	1,192	1,759	2,951

The table below presents reclassifications out of AOCI:


	Condensed Consolidated Statements of Income Caption	For the three months ended June 30,			For the six months ended June 30,
($ in millions)		2021		2020	2021	2020
Net unrealized gains on available-for-sale debt securities:(b)
Net losses included in net income	Securities gains (losses), net	$	7	—	(9)	—
	Income before income taxes	7		—	(9)	—
	Applicable income tax expense	(2)		—	2	—
	Net income	5		—	(7)	—
Net unrealized gains on cash flow hedge derivatives:(b)
Interest rate contracts related to C&I loans	Interest and fees on loans and leases	73		62	146	94
	Income before income taxes	73		62	146	94
	Applicable income tax expense	(15)		(13)	(31)	(20)
	Net income	58		49	115	74
Net periodic benefit costs:(b)
Amortization of net actuarial loss	Compensation and benefits(a)	(2)		(1)	(3)	(3)
Settlements	Compensation and benefits(a)	(1)		—	(1)	—
	Income before income taxes	(3)		(1)	(4)	(3)
	Applicable income tax expense	1		—	1	1
	Net income	(2)		(1)	(3)	(2)

Total reclassifications for the period	Net income	$	61	48	105	72

(a)This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 23 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2020 for further information.

(b)Amounts in parentheses indicate reductions to net income.