Accumulated Other Comprehensive Income (Tables)

3 Months Ended

Mar. 31, 2023

Activity of the Components of Other Comprehensive Income and Accumulated Other Comprehensive Income

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


	Total OCI				Total AOCI
March 31, 2023 ($ 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	$	788	(188)	600
Reclassification adjustment for net gains on available-for-sale debt securities included in net income	—		—	—
Net unrealized losses on available-for-sale debt securities	788		(188)	600	(4,589)	600	(3,989)

Unrealized holding gains on cash flow hedge derivatives arising during period	278		(63)	215
Reclassification adjustment for net losses on cash flow hedge derivatives included in net income	65		(15)	50
Net unrealized losses on cash flow hedge derivatives	343		(78)	265	(498)	265	(233)


Reclassification of amounts to net periodic benefit costs	—		—	—
Defined benefit pension plans, net	—		—	—	(19)	—	(19)

Other	—		—	—	(4)	—	(4)
Total	$	1,131	(266)	865	(5,110)	865	(4,245)


	Total OCI				Total AOCI
March 31, 2022 ($ 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	$	(2,505)	576	(1,929)
Reclassification adjustment for net gains on available-for-sale debt securities included in net income	(3)		1	(2)
Net unrealized losses on available-for-sale debt securities	(2,508)		577	(1,931)	891	(1,931)	(1,040)

Unrealized holding losses on cash flow hedge derivatives arising during period	(407)		94	(313)
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(78)		18	(60)
Net unrealized losses on cash flow hedge derivatives	(485)		112	(373)	353	(373)	(20)


Reclassification of amounts to net periodic benefit costs	1		—	1
Defined benefit pension plans, net	1		—	1	(33)	1	(32)

Other	—		—	—	(4)	—	(4)
Total	$	(2,992)	689	(2,303)	1,207	(2,303)	(1,096)

Reclassification Out of Accumulated Other Comprehensive Income to Net Income

The table below presents reclassifications out of AOCI:


	Condensed Consolidated Statements of Income Caption	For the three months ended March 31,
($ in millions)		2023		2022
Net unrealized losses on available-for-sale debt securities:(b)
Net gains included in net income	Securities gains (losses), net	$	—	3
	Income before income taxes	—		3
	Applicable income tax expense	—		(1)
	Net income	—		2
Net unrealized losses on cash flow hedge derivatives:(b)
Interest rate contracts related to C&I, commercial mortgage and commercial construction loans	Interest and fees on loans and leases	(65)		78
	Income before income taxes	(65)		78
	Applicable income tax expense	15		(18)
	Net income	(50)		60
Net periodic benefit costs:(b)
Amortization of net actuarial loss	Compensation and benefits(a)	—		(1)

	Income before income taxes	—		(1)
	Applicable income tax expense	—		—
	Net income	—		(1)

Total reclassifications for the period	Net income	$	(50)	61

(a)This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 22 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2022 for further information.

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