Securities (Tables)

12 Months Ended

Dec. 31, 2012

Available-for-Sale and Held-to-Maturity 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:
			2012				2011
			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	$	41	-	-	41	171	0	0	171
	U.S. Government sponsored agencies		1,730	181	-	1,911	1,782	180	0	1,962
	Obligations of states and political subdivisions		203	9	-	212	96	5	0	101
	Agency mortgage-backed securities(a)		8,403	345	(18)	8,730	9,743	542	(1)	10,284
	Other bonds, notes and debentures		3,161	119	(3)	3,277	1,792	29	(9)	1,812
	Other securities(b)		1,033	3	-	1,036	1,030	2	0	1,032
Total		$	14,571	657	(21)	15,207	14,614	758	(10)	15,362
Held-to-maturity:
	Obligations of states and political subdivisions	$	282	-	-	282	320	0	0	320
	Other debt securities		2	-	-	2	2	0	0	2
Total		$	284	-	-	284	322	0	0	322

(a)Includes interest-only mortgage backed securities of $408and $110 as of December 31, 2012 and 2011, respectively, recorded at fair value with fair value changes recorded in securities gains, net and securities gains, net – non-qualifying hedges on mortgage servicing rights in the Consolidated Statements of Income.

(b)Other securities consist of FHLB and FRB restricted stock holdings of $497and $347, respectively,at December 31, 2012 and, $497 and $345, respectively, at December 31,2011, that are carried at cost, and certain mutual fund and equity security holdings.

Realized Gains and Losses Recognized in Income from Available-for-Sale Securities

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)		2012	2011	2010
Realized gains	$	75	75	69
Realized losses		(2)	0	(10)
OTTI		(58)	(19)	(3)
Net realized gains	$	15	56	56

Amortized Cost and Fair Value of Available-for-Sale and Held-to-Maturity Securities

The expected maturity distribution of the Bancorp’s agency mortgage-backed securities and the contractual maturity distribution of the Bancorp’s available-for-sale and other and held-to-maturity securities as of December 31, 2012 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	$	555	566	73	73
	1-5 years		8,865	9,356	185	185
	5-10 years		2,223	2,280	20	20
	Over 10 years		1,895	1,969	6	6
Other securities			1,033	1,036	0	0
Total		$	14,571	15,207	284	284

• Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations 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 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
2012
U.S. Treasury and government agencies	$	-	-	-	-	-	-
U.S. Government sponsored agencies		-	-	-	-	-	-
Obligations of states and political subdivisions		-	-	-	-	-	-
Agency mortgage-backed securities		1,784	(18)	-	-	1,784	(18)
Other bonds, notes and debentures		454	(3)	-	-	454	(3)
Other securities		1	-	-	-	1	-
Total	$	2,239	(21)	-	-	2,239	(21)
2011
U.S. Treasury and government agencies	$	70	0	1	0	71	0
U.S. Government sponsored agencies		0	0	0	0	0	0
Obligations of states and political subdivisions		0	0	2	0	2	0
Agency mortgage-backed securities		34	(1)	6	0	40	(1)
Other bonds, notes and debentures		523	(4)	38	(5)	561	(9)
Other securities		6	0	0	0	6	0
Total	$	633	(5)	47	(5)	680	(10)