Accumulated Other Comprehensive Income (Tables)

9 Months Ended

Sep. 30, 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
September 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	$	(1,594)	376	(1,218)
Reclassification adjustment for net losses on available-for-sale debt securities included in net income	—		—	—
Net unrealized losses on available-for-sale debt securities	(1,594)		376	(1,218)	(4,622)	(1,218)	(5,840)

Unrealized holding losses on cash flow hedge derivatives arising during period	(687)		160	(527)
Reclassification adjustment for net losses on cash flow hedge derivatives included in net income	94		(22)	72
Net unrealized losses on cash flow hedge derivatives	(593)		138	(455)	(522)	(455)	(977)

Net actuarial loss arising during the year	—		—	—
Reclassification of amounts to net periodic benefit costs	—		—	—
Defined benefit pension plans, net	—		—	—	(18)	—	(18)

Other	—		—	—	(4)	—	(4)
Total	$	(2,187)	514	(1,673)	(5,166)	(1,673)	(6,839)


	Total OCI				Total AOCI
September 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	$	(2,780)	651	(2,129)
Reclassification adjustment for net gains on available-for-sale debt securities included in net income	—		—	—
Net unrealized losses on available-for-sale debt securities	(2,780)		651	(2,129)	(2,546)	(2,129)	(4,675)

Unrealized holding losses on cash flow hedge derivatives arising during period	(688)		158	(530)
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(4)		1	(3)
Net unrealized losses on cash flow hedge derivatives	(692)		159	(533)	(63)	(533)	(596)

Net actuarial loss arising during the year	(1)		—	(1)
Reclassification of amounts to net periodic benefit costs	1		—	1
Defined benefit pension plans, net	—		—	—	(31)	—	(31)

Other	—		—	—	(4)	—	(4)
Total	$	(3,472)	810	(2,662)	(2,644)	(2,662)	(5,306)

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


	Total OCI				Total AOCI
September 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	$	(1,638)	386	(1,252)
Reclassification adjustment for net losses on available-for-sale debt securities included in net income	1		—	1
Net unrealized losses on available-for-sale debt securities	(1,637)		386	(1,251)	(4,589)	(1,251)	(5,840)

Unrealized holding losses on cash flow hedge derivatives arising during period	(864)		200	(664)
Reclassification adjustment for net losses on cash flow hedge derivatives included in net income	240		(55)	185
Net unrealized losses on cash flow hedge derivatives	(624)		145	(479)	(498)	(479)	(977)

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	$	(2,260)	531	(1,729)	(5,110)	(1,729)	(6,839)


	Total OCI				Total AOCI
September 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	$	(7,249)	1,685	(5,564)
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	(7,252)		1,686	(5,566)	891	(5,566)	(4,675)

Unrealized holding losses on cash flow hedge derivatives arising during period	(1,092)		252	(840)
Reclassification adjustment for net gains on cash flow hedge derivatives included in net income	(140)		31	(109)
Net unrealized losses on cash flow hedge derivatives	(1,232)		283	(949)	353	(949)	(596)

Net actuarial loss arising during the year	(2)		—	(2)
Reclassification of amounts to net periodic benefit costs	5		(1)	4
Defined benefit pension plans, net	3		(1)	2	(33)	2	(31)

Other	—		—	—	(4)	—	(4)
Total	$	(8,481)	1,968	(6,513)	1,207	(6,513)	(5,306)

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 September 30,			For the nine months ended September 30,
($ in millions)		2023		2022	2023	2022
Net unrealized losses on available-for-sale debt securities:(a)
Net (losses) gains included in net income	Securities gains (losses), net	$	—	—	(1)	3
	Income before income taxes	—		—	(1)	3
	Applicable income tax expense	—		—	—	(1)
	Net income	—		—	(1)	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	(94)		4	(240)	140
	Income before income taxes	(94)		4	(240)	140
	Applicable income tax expense	22		(1)	55	(31)
	Net income	(72)		3	(185)	109
Net periodic benefit costs:(a)
Amortization of net actuarial loss	Compensation and benefits(b)	—		(1)	(2)	(3)
Settlements	Compensation and benefits(b)	—		—	—	(2)
	Income before income taxes	—		(1)	(1)	(5)
	Applicable income tax expense	—		—	—	1
	Net income	—		(1)	(1)	(4)

Total reclassifications for the period	Net income	(72)		2	(187)	107

(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.