| 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 | | June 30, 2023 ($ 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 | $ | (831) | | 198 | | (633) | | | | | | Reclassification adjustment for net gains on available-for-sale debt securities included in net income | — | | — | | — | | | | | | Net unrealized losses on available-for-sale debt securities | (831) | | 198 | | (633) | | (3,989) | | (633) | | (4,622) | | | | | | | | | | Unrealized holding losses on cash flow hedge derivatives arising during period | (454) | | 102 | | (352) | | | | | | Reclassification adjustment for net losses on cash flow hedge derivatives included in net income | 81 | | (18) | | 63 | | | | | | Net unrealized losses on cash flow hedge derivatives | (373) | | 84 | | (289) | | (233) | | (289) | | (522) | | | | | | | | | | Net actuarial loss arising during the year | — | | — | | — | | | | | | Reclassification of amounts to net periodic benefit costs | 1 | | — | | 1 | | | | | | Defined benefit pension plans, net | 1 | | — | | 1 | | (19) | | 1 | | (18) | | | | | | | | | | Other | — | | — | | — | | (4) | | — | | (4) | | | Total | $ | (1,203) | | 282 | | (921) | | (4,245) | | (921) | | (5,166) | |
| | | | | | | | | | | | | | | | | | | | | | Total OCI | Total AOCI | | June 30, 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 | $ | (1,964) | | 458 | | (1,506) | | | | | | Reclassification adjustment for net gains on available-for-sale debt securities included in net income | — | | — | | — | | | | | | Net unrealized losses on available-for-sale debt securities | (1,964) | | 458 | | (1,506) | | (1,040) | | (1,506) | | (2,546) | | | | | | | | | | Unrealized holding gains on cash flow hedge derivatives arising during period | 2 | | — | | 2 | | | | | | Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (58) | | 13 | | (45) | | | | | | Net unrealized losses on cash flow hedge derivatives | (56) | | 13 | | (43) | | (20) | | (43) | | (63) | | | | | | | | | | Net actuarial loss arising during the year | (1) | | — | | (1) | | | | | | Reclassification of amounts to net periodic benefit costs | 2 | | — | | 2 | | | | | | Defined benefit pension plans, net | 1 | | — | | 1 | | (32) | | 1 | | (31) | | | | | | | | | | Other | — | | — | | — | | (4) | | — | | (4) | | | Total | $ | (2,019) | | 471 | | (1,548) | | (1,096) | | (1,548) | | (2,644) | |
The tables below present the activity of the components of OCI and AOCI for the six months ended:
| | | | | | | | | | | | | | | | | | | | | | Total OCI | Total AOCI | | June 30, 2023 ($ 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 | $ | (43) | | 10 | | (33) | | | | | | Reclassification adjustment for net gains on available-for-sale debt securities included in net income | — | | — | | — | | | | | | Net unrealized losses on available-for-sale debt securities | (43) | | 10 | | (33) | | (4,589) | | (33) | | (4,622) | | | | | | | | | | Unrealized holding losses on cash flow hedge derivatives arising during period | (177) | | 40 | | (137) | | | | | | Reclassification adjustment for net losses on cash flow hedge derivatives included in net income | 146 | | (33) | | 113 | | | | | | Net unrealized losses on cash flow hedge derivatives | (31) | | 7 | | (24) | | (498) | | (24) | | (522) | | | | | | | | | | Net actuarial loss arising during the year | — | | — | | — | | | | | | Reclassification of amounts to net periodic benefit costs | 1 | | — | | 1 | | | | | | Defined benefit pension plans, net | 1 | | — | | 1 | | (19) | | 1 | | (18) | | | | | | | | | | Other | — | | — | | — | | (4) | | — | | (4) | | | Total | $ | (73) | | 17 | | (56) | | (5,110) | | (56) | | (5,166) | |
| | | | | | | | | | | | | | | | | | | | | | Total OCI | Total AOCI | | June 30, 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 | $ | (4,469) | | 1,034 | | (3,435) | | | | | | 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 | (4,472) | | 1,035 | | (3,437) | | 891 | | (3,437) | | (2,546) | | | | | | | | | | Unrealized holding losses on cash flow hedge derivatives arising during period | (405) | | 95 | | (310) | | | | | | Reclassification adjustment for net gains on cash flow hedge derivatives included in net income | (136) | | 30 | | (106) | | | | | | Net unrealized losses on cash flow hedge derivatives | (541) | | 125 | | (416) | | 353 | | (416) | | (63) | | | | | | | | | | Net actuarial loss arising during the year | (1) | | — | | (1) | | | | | | Reclassification of amounts to net periodic benefit costs | 3 | | — | | 3 | | | | | | Defined benefit pension plans, net | 2 | | — | | 2 | | (33) | | 2 | | (31) | | | | | | | | | | Other | — | | — | | — | | (4) | | — | | (4) | | | Total | $ | (5,011) | | 1,160 | | (3,851) | | 1,207 | | (3,851) | | (2,644) | |
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| 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
June 30, | For the six months ended
June 30, | | ($ in millions) | 2023 | 2022 | 2023 | 2022 | Net unrealized losses on available-for-sale debt securities:(a) | | | | | | | 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:(a) | | | | | | | Interest rate contracts related to C&I, commercial mortgage and commercial construction loans | Interest and fees on loans and leases | (81) | | 58 | | (146) | | 136 | | | Income before income taxes | (81) | | 58 | | (146) | | 136 | | | Applicable income tax expense | 18 | | (13) | | 33 | | (30) | | | Net income | (63) | | 45 | | (113) | | 106 | | Net periodic benefit costs:(a) | | | | | | | Amortization of net actuarial loss | Compensation and benefits(b) | (1) | | (1) | | (1) | | (2) | | | Settlements | Compensation and benefits(b) | — | | (1) | | — | | (1) | | | Income before income taxes | (1) | | (2) | | (1) | | (3) | | | Applicable income tax expense | — | | — | | — | | — | | | Net income | (1) | | (2) | | (1) | | (3) | | | | | | | | | Total reclassifications for the period | Net income | $ | (64) | | 43 | | (114) | | 105 | |
(a)Amounts in parentheses indicate reductions to net income. (b)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.
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