Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2021

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


	Total OCI				Total AOCI
September 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	$	(368)	87	(281)
Reclassification adjustment for net gains on available-for-sale debt securities included in net income	(1)		—	(1)
Net unrealized gains on available-for-sale debt securities	(369)		87	(282)	1,472	(282)	1,190

Unrealized holding gains on cash flow hedge derivatives arising during period	3		(1)	2
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(74)		16	(58)
Net unrealized gains on cash flow hedge derivatives	(71)		15	(56)	548	(56)	492

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	(42)	1	(41)

Other	—		—	—	(4)	—	(4)
Total	$	(438)	101	(337)	1,974	(337)	1,637


	Total OCI				Total AOCI
September 30, 2020 ($ 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	$	(42)	10	(32)
Reclassification adjustment for net gains on available-for-sale debt securities included in net income	(45)		11	(34)
Net unrealized gains on available-for-sale debt securities	(87)		21	(66)	2,150	(66)	2,084

Unrealized holding gains on cash flow hedge derivatives arising during period	1		—	1
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(72)		16	(56)
Net unrealized gains on cash flow hedge derivatives	(71)		16	(55)	841	(55)	786

Net actuarial loss arising during the year	(2)		—	(2)
Reclassification of amounts to net periodic benefit costs	4		(1)	3
Defined benefit pension plans, net	2		(1)	1	(40)	1	(39)
Total	$	(156)	36	(120)	2,951	(120)	2,831

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


	Total OCI				Total AOCI
September 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	$	(978)	230	(748)
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	(969)		228	(741)	1,931	(741)	1,190

Unrealized holding losses on cash flow hedge derivatives arising during period	(67)		14	(53)
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(219)		46	(173)
Net unrealized gains on cash flow hedge derivatives	(286)		60	(226)	718	(226)	492

Net actuarial loss arising during the year	(2)		—	(2)
Reclassification of amounts to net periodic benefit costs	7		(2)	5
Defined benefit pension plans, net	5		(2)	3	(44)	3	(41)

Other	—		—	—	(4)	—	(4)
Total	$	(1,250)	286	(964)	2,601	(964)	1,637


	Total OCI				Total AOCI
September 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	$	1,715	(409)	1,306
Reclassification adjustment for net gains on available-for-sale debt securities included in net income	(45)		11	(34)
Net unrealized gains on available-for-sale debt securities	1,670		(398)	1,272	812	1,272	2,084

Unrealized holding gains on cash flow hedge derivatives arising during period	625		(131)	494
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(165)		35	(130)
Net unrealized gains on cash flow hedge derivatives	460		(96)	364	422	364	786

Net actuarial loss arising during the year	(2)		—	(2)
Reclassification of amounts to net periodic benefit costs	7		(2)	5
Defined benefit pension plans, net	5		(2)	3	(42)	3	(39)
Total	$	2,135	(496)	1,639	1,192	1,639	2,831

The table below presents reclassifications out of AOCI:


	Condensed Consolidated Statements of Income Caption	For the three months ended September 30,			For the nine months ended September 30,
($ in millions)		2021		2020	2021	2020
Net unrealized gains on available-for-sale debt securities:(b)
Net (losses) gains included in net income	Securities gains (losses), net	$	1	45	(9)	45
	Income before income taxes	1		45	(9)	45
	Applicable income tax expense	—		(11)	2	(11)
	Net income	1		34	(7)	34
Net unrealized gains on cash flow hedge derivatives:(b)
Interest rate contracts related to C&I loans	Interest and fees on loans and leases	74		72	219	165
	Income before income taxes	74		72	219	165
	Applicable income tax expense	(16)		(16)	(46)	(35)
	Net income	58		56	173	130
Net periodic benefit costs:(b)
Amortization of net actuarial loss	Compensation and benefits(a)	(2)		(2)	(5)	(5)
Settlements	Compensation and benefits(a)	(1)		(2)	(2)	(2)
	Income before income taxes	(3)		(4)	(7)	(7)
	Applicable income tax expense	1		1	2	2
	Net income	(2)		(3)	(5)	(5)

Total reclassifications for the period	Net income	$	57	87	161	159

(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.