Investment Securities (Tables)

9 Months Ended

Sep. 30, 2023

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, 2023 ($ in millions)	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities	$	3,680	1	(219)	3,462
Obligations of states and political subdivisions securities	2		—	—	2
Mortgage-backed securities:
Agency residential mortgage-backed securities	11,743		—	(1,867)	9,876
Agency commercial mortgage-backed securities	29,055		—	(4,594)	24,461
Non-agency commercial mortgage-backed securities	4,922		—	(597)	4,325
Asset-backed securities and other debt securities	5,378		3	(391)	4,990
Other securities(a)	777		—	—	777
Total available-for-sale debt and other securities	$	55,557	4	(7,668)	47,893
Held-to-maturity securities:
Asset-backed securities and other debt securities	$	2	—	—	2
Total held-to-maturity securities	$	2	—	—	2

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $281, $494 and $2, respectively, at September 30, 2023, that are carried at cost.


December 31, 2022 ($ in millions)	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities	$	2,683	—	(188)	2,495
Obligations of states and political subdivisions securities	18		—	—	18
Mortgage-backed securities:
Agency residential mortgage-backed securities	12,604		5	(1,372)	11,237
Agency commercial mortgage-backed securities	29,824		11	(3,513)	26,322
Non-agency commercial mortgage-backed securities	5,235		—	(520)	4,715
Asset-backed securities and other debt securities	6,292		3	(453)	5,842
Other securities(a)	874		—	—	874
Total available-for-sale debt and other securities	$	57,530	19	(6,046)	51,503
Held-to-maturity securities:
Obligations of states and political subdivisions securities	$	3	—	—	3
Asset-backed securities and other debt securities	2		—	—	2
Total held-to-maturity securities	$	5	—	—	5

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $381, $491 and $2, respectively, at December 31, 2022, 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, 2023		December 31, 2022
Trading debt securities	$	1,222	414
Equity securities	250		317

Realized Gains and Losses Recognized in Income from Investment Securities

The following table presents the components of net securities gains and losses recognized in the Condensed Consolidated Statements of Income, including those recognized related to the Bancorp’s non-qualifying hedging strategy for MSRs:


	For the three months ended September 30,			For the nine months ended September 30,
($ in millions)	2023		2022	2023	2022
Available-for-sale debt and other securities:
Realized gains	$	1	3	34	15
Realized losses	—		(3)	(30)	(12)
Impairment losses	(1)		—	(5)	—
Net realized (losses) gains on available-for-sale debt and other securities	$	—	—	(1)	3
Trading debt securities:
Net realized losses	—		(1)	—	(2)
Net unrealized gains	—		—	2	11
Net trading debt securities gains (losses)	$	—	(1)	2	9
Equity securities:
Net realized gains	2		1	3	1
Net unrealized losses	(9)		(39)	(1)	(99)
Net equity securities gains (losses)	$	(7)	(38)	2	(98)
Total gains (losses) recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities(a)	$	(7)	(39)	3	(86)

(a)Excludes $2 and $3 of net securities gains for the three and nine months ended September 30, 2023, respectively, and $1 and $4 of net securities losses for the three and nine months ended September 30, 2022, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These gains and losses 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, 2023 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)
Due in 1 year or less	$	170	166	—	—
Due after 1 year through 5 years	15,597		14,333	—	—
Due after 5 years through 10 years	28,864		24,235	—	—
Due after 10 years	10,149		8,382	2	2
Other securities	777		777	—	—
Total	$	55,557	47,893	2	2

(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, 2023
U.S. Treasury and federal agencies securities	$	735	(7)	2,077	(212)	2,812	(219)

Agency residential mortgage-backed securities	154		(15)	9,721	(1,852)	9,875	(1,867)
Agency commercial mortgage-backed securities	5,392		(787)	19,069	(3,807)	24,461	(4,594)
Non-agency commercial mortgage-backed securities	134		(9)	4,134	(588)	4,268	(597)
Asset-backed securities and other debt securities	367		(23)	4,219	(368)	4,586	(391)
Total	$	6,782	(841)	39,220	(6,827)	46,002	(7,668)
December 31, 2022
U.S. Treasury and federal agencies securities	$	2,400	(188)	—	—	2,400	(188)
Obligations of states and political subdivisions securities	—		—	1	—	1	—
Agency residential mortgage-backed securities	10,078		(1,170)	938	(202)	11,016	(1,372)
Agency commercial mortgage-backed securities	22,083		(2,487)	3,697	(1,026)	25,780	(3,513)
Non-agency commercial mortgage-backed securities	3,621		(272)	1,059	(248)	4,680	(520)
Asset-backed securities and other debt securities	3,164		(178)	2,495	(275)	5,659	(453)
Total	$	41,346	(4,295)	8,190	(1,751)	49,536	(6,046)