Investment Securities (Tables)

9 Months Ended

Sep. 30, 2021

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 securities portfolios as of:


September 30, 2021 ($ in millions)	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities	$	90	2	—	92
Obligations of states and political subdivisions securities	18		—	—	18
Mortgage-backed securities:
Agency residential mortgage-backed securities	9,191		474	(13)	9,652
Agency commercial mortgage-backed securities	18,468		962	(66)	19,364
Non-agency commercial mortgage-backed securities	3,802		183	(6)	3,979
Asset-backed securities and other debt securities	4,221		44	(18)	4,247
Other securities(a)	518		—	—	518
Total available-for-sale debt and other securities	$	36,308	1,665	(103)	37,870
Held-to-maturity securities:
Obligations of states and political subdivisions securities	$	6	—	—	6
Asset-backed securities and other debt securities	2		—	—	2
Total held-to-maturity securities	$	8	—	—	8

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $31, $485 and $2, respectively, at September 30, 2021, that are carried at cost.


December 31, 2020 ($ in millions)	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
Obligations of states and political subdivisions securities	17		—	—	17
Mortgage-backed securities:
Agency residential mortgage-backed securities	11,147		768	(8)	11,907
Agency commercial mortgage-backed securities	16,745		1,481	(5)	18,221
Non-agency commercial mortgage-backed securities	3,323		267	—	3,590
Asset-backed securities and other debt securities	3,152		48	(24)	3,176
Other securities(a)	524		—	—	524
Total available-for-sale debt and other securities	$	34,982	2,568	(37)	37,513
Held-to-maturity securities:
Obligations of states and political subdivisions securities	$	9	—	—	9
Asset-backed securities and other debt securities	2		—	—	2
Total held-to-maturity securities	$	11	—	—	11

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $40, $482 and $2, respectively, at December 31, 2020, 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, 2021		December 31, 2020
Trading debt securities	$	685	560
Equity securities	329		313

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)	2021		2020	2021	2020
Available-for-sale debt and other securities:
Realized gains	$	16	46	24	47
Realized losses	(3)		(1)	(14)	(2)
Impairment losses	(12)		—	(19)	—
Net (losses) gains on available-for sale debt and other securities	$	1	45	(9)	45
Total trading debt securities (losses) gains	$	(1)	(1)	(1)	3
Total equity securities gains (losses)(a)	$	(1)	6	20	3
Total gains (losses) recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities(b)	$	(1)	50	10	51

(a)Includes net unrealized losses of $3 and net unrealized gains $14 for the three and nine months ended September 30, 2021, respectively, and net unrealized losses of $1 and $3 for the three and nine months ended September 30, 2020, respectively.

(b)Excludes $1 and $4 of net securities losses for the three and nine months ended September 30, 2021, respectively, and $1 and $7 of net securities gains for the three and nine months ended September 30, 2020, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These losses and 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 securities as of September 30, 2021 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	$	888	903	2	2
1-5 years	13,361		14,019	4	4
5-10 years	11,985		12,700	—	—
Over 10 years	9,556		9,730	2	2
Other securities	518		518	—	—
Total	$	36,308	37,870	8	8

(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, 2021
Obligations of states and political subdivisions securities	$	1	—	—	—	1	—
U.S. Treasury and federal agencies securities	15		—	—	—	15	—
Agency residential mortgage-backed securities	844		(9)	91	(4)	935	(13)
Agency commercial mortgage-backed securities	2,801		(64)	24	(2)	2,825	(66)
Non-agency commercial mortgage-backed securities	515		(6)	—	—	515	(6)
Asset-backed securities and other debt securities	1,046		(8)	462	(10)	1,508	(18)
Total	$	5,222	(87)	577	(16)	5,799	(103)
December 31, 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)