Securities

3 Months Ended

Mar. 31, 2013

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 other and held-to-maturity securities portfolios as of:
			Amortized	Unrealized	Unrealized	Fair
March 31, 2013 ($ in millions)			Cost	Gains	Losses	Value
Available-for-sale and other:
	U.S. Treasury and government agencies	$	41	-	-	41
	U.S. Government sponsored agencies		1,729	170	-	1,899
	Obligations of states and political subdivisions		202	10	-	212
	Agency mortgage-backed securities(a)		8,534	314	(4)	8,844
	Other bonds, notes and debentures		3,087	122	(8)	3,201
	Other securities(b)		1,059	7	-	1,066
Total		$	14,652	623	(12)	15,263
Held-to-maturity:
	Obligations of states and political subdivisions	$	282	-	-	282
	Other debt securities		1	-	-	1
Total		$	283	-	-	283

			Amortized	Unrealized	Unrealized	Fair
December 31, 2012 ($ in millions)			Cost	Gains	Losses	Value
Available-for-sale and other:
	U.S. Treasury and government agencies	$	41	-	-	41
	U.S. Government sponsored agencies		1,730	181	-	1,911
	Obligations of states and political subdivisions		203	9	-	212
	Agency mortgage-backed securities(a)		8,403	345	(18)	8,730
	Other bonds, notes and debentures		3,161	119	(3)	3,277
	Other securities(b)		1,033	3	-	1,036
Total		$	14,571	657	(21)	15,207
Held-to-maturity:
	Obligations of states and political subdivisions	$	282	-	-	282
	Other debt securities		2	-	-	2
Total		$	284	-	-	284

• Includes interest-only mortgage backed securities of $456and $408as of March 31, 2013and December 31, 2012, 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 Condensed Consolidated Statements of Income.
• Other securities consist of FHLB and FRB restricted stock holdings of $497and $347, respectively,at March 31, 2013andDecember 31, 2012, 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 three months
		ended March 31,
($ in millions)		2013	2012
Realized gains	$	18	7
Realized losses		(25)	-
Net realized (losses) gains	$	(7)	7

Net unrealized gains on interest-only mortgage backed securities were $24 million for the three months ending March 31, 2013.

Trading securities totaled $218 million as of March 31, 2013, compared to $207 million at December 31, 2012. Gross realized gains and gross realized losses on trading securities were immaterial to the Bancorp for the three months ended March 31, 2013 and 2012. Net unrealized gains on trading securities were $2 million at March 31, 2013 and 2012.

At March 31, 2013 and December 31, 2012, securities with a fair value of $10.9 billion and $12.6 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 available-for-sale and other and held-to-maturity securities as of March 31, 2013 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	$	610	623	85	85
	1-5 years		8,717	9,150	172	172
	5-10 years		2,146	2,220	21	21
	Over 10 years		2,120	2,204	5	5
Other securities			1,059	1,066	-	-
Total		$	14,652	15,263	283	283

• 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:
		Less than 12 months		12 months or more		Total
			Unrealized		Unrealized		Unrealized
($ in millions)		Fair Value	Losses	Fair Value	Losses	Fair Value	Losses
March 31, 2013
Agency mortgage-backed securities	$	898	(4)	-	-	898	(4)
Other bonds, notes and debentures		216	(7)	60	(1)	276	(8)
Other securities		16	-	-	-	16	-
Total	$	1,130	(11)	60	(1)	1,190	(12)
December 31, 2012
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)

Other-Than-Temporary Impairments

During the three months ended March 31, 2013 and 2012, the Bancorp did not recognize OTTI on any of its available-for-sale debt or equity securities or its held-to-maturity debt securities. Less than one percent of unrealized losses in the available-for-sale securities portfolio were represented by non-rated securities at March 31, 2013and December 31, 2012.