Securities

12 Months Ended

Dec. 31, 2011

Securities

4. Securities

The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale and held-to-maturity securities portfolios as of December 31:

			2011				2010
			Amortized	Unrealized	Unrealized	Fair	Amortized	Unrealized	Unrealized	Fair
($ in millions)			Cost	Gains	Losses	Value	Cost	Gains	Losses	Value
Available-for-sale and other:
	U.S. Treasury and government agencies	$	171	-	-	171	225	5	0	230
	U.S. Government sponsored agencies		1,782	180	-	1,962	1,564	81	0	1,645
	Obligations of states and political subdivisions		96	5	-	101	170	2	0	172
	Agency mortgage-backed securities		9,743	542	(1)	10,284	10,570	435	(32)	10,973
	Other bonds, notes and debentures		1,792	29	(9)	1,812	1,338	19	(15)	1,342
	Other securities(a)		1,030	2	-	1,032	1,052	0	0	1,052
Total		$	14,614	758	(10)	15,362	14,919	542	(47)	15,414
Held-to-maturity:
	Obligations of states and political subdivisions	$	320	-	-	320	348	0	0	348
	Other debt securities		2	-	-	2	5	0	0	5
Total		$	322	-	-	322	353	0	0	353

(a) Other securities consist of FHLB and FRB restricted stock holdings of $497 and $345, respectively,at December 31, 2011 and, $524 and $344, respectively,at December 31, 2010, that are carried at cost, and certain mutual fund and equity security holdings.

The following table presents realized gains and losses that were recognized in income from available-for-sale securities for the years ended December 31:

($ in millions)		2011	2010	2009
Realized gains	$	75	69	91
Realized losses		0	(13)	(34)
Net realized gains	$	75	56	57

Trading securities totaled $177 million as of December 31, 2011, compared to $294million at December 31, 2010.Gross realized gains on trading securities were $1 million for the years ended December 31, 2011, 2010, and 2009. Gross realized losses on trading securities were $7 million, $1 million, and $2 million for the years ended December 31, 2011, 2010, and 2009 respectively. Net unrealized gains on trading securities were $5 million at December 31, 2011 and net unrealized losses were $8 million for the year ended December 31, 2009 and immaterial to the Bancorp for the year ended December 31, 2010.

At December 31, 2011 and 2010 securities with a fair value of $13.3billion and $11.3 billion, respectively, were pledged to secure borrowings, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law.

The expected maturity distribution of the Bancorp's agency mortgage-backed securities and the contractual maturity distribution of the Bancorp's other available-for-sale and held-to-maturity securities as of December 31, 2011 are shown in the following table:

			Available-for-Sale & Other		Held-to-Maturity
($ in millions)			Amortized Cost	Fair Value	Amortized Cost	Fair Value
Debt securities:(a)
	Under 1 year	$	884	906	36	36
	1-5 years		10,599	11,197	255	255
	5-10 years		1,351	1,462	16	16
	Over 10 years		750	765	15	15
Other securities			1,030	1,032	0	0
Total		$	14,614	15,362	322	322

(a) Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations with or without call or prepayment penalties.

The following table provides the fair value and gross unrealized losses on available-for-sale 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 December 31:

		Less than 12 months		12 months or more		Total
			Unrealized		Unrealized		Unrealized
($ in millions)		Fair Value	Losses	Fair Value	Losses	Fair Value	Losses
2011
U.S. Treasury and government agencies	$	70	-	1	-	71	-
U.S. Government sponsored agencies		-	-	-	-	-	-
Obligations of states and political subdivisions		-	-	2	-	2	-
Agency mortgage-backed securities		34	(1)	6	-	40	(1)
Other bonds, notes and debentures		523	(4)	38	(5)	561	(9)
Other securities		6	-	-	-	6	-
Total	$	633	(5)	47	(5)	680	(10)
2010
U.S. Treasury and government agencies	$	0	0	1	0	1	0
U.S. Government sponsored agencies		0	0	0	0	0	0
Obligations of states and political subdivisions		11	0	4	0	15	0
Agency mortgage-backed securities		1,555	(32)	0	0	1,555	(32)
Other bonds, notes and debentures		563	(10)	47	(5)	610	(15)
Other securities		0	0	0	0	0	0
Total	$	2,129	(42)	52	(5)	2,181	(47)

Other-Than-Temporary Impairments

The Bancorp recognized $19 millionand $3 million of OTTI, included in securities gains (losses), net, in the Bancorp's Consolidated Statements of Income,on its available-for-sale debt securities during the years ended December 31, 2011 and 2010, respectively, and no OTTI was recognized on held-to-maturity debt securities for the years ended December 31, 2011 and 2010. During the year ended December 31, 2009, OTTI recognized on available-for-sale and held-to-maturity debt securities was immaterial to the Bancorp's consolidated financial statements.Additionally, at December 31, 2011 an immaterial percent of unrealized losses in the available-for-sale securities portfolio were represented by non-rated securities, compared to approximately one percent at December 31, 2010.

During the year ended December 31, 2011, the Bancorp did not recognize OTTI on any of its available-for-sale equity securities. In addition, for the years ended December 31, 2010 and 2009, OTTI recognized on available-for-sale equity securities was immaterial to the Bancorp's consolidated financial statements.