Securities

6 Months Ended

Jun. 30, 2013

Securities

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
June 30, 2013 ($ in millions)			Cost	Gains	Losses	Value
Available-for-sale and other:
	U.S. Treasury and government agencies	$	26	-	-	26
	U.S. Government sponsored agencies		1,624	134	-	1,758
	Obligations of states and political subdivisions		201	4	-	205
	Agency mortgage-backed securities(a)		9,481	270	(88)	9,663
	Other bonds, notes and debentures		3,483	78	(13)	3,548
	Other securities(b)		978	10	(1)	987
Total		$	15,793	496	(102)	16,187
Held-to-maturity:
	Obligations of states and political subdivisions	$	273	-	-	273
	Other debt securities		1	-	-	1
Total		$	274	-	-	274

			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 $483and $408as of June 30, 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 $348, respectively,at June 30, 2013and$497and$347, respectively, atDecember 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		For the six months
		ended June 30,		ended June 30,
($ in millions)		2013	2012	2013	2012
Realized gains	$	22	21	40	28
Realized losses		(60)	(1)	(86)	(1)
OTTI		(12)	(17)	(12)	(17)
Net realized (losses) gains	$	(50)	3	(58)	10

Net unrealized gains on interest-only mortgage backed securities were $56 million and $81 million for the three and six months ending June 30, 2013, respectively.

Trading securities totaled $219 million as of June 30, 2013, compared to $207 million at December 31, 2012.Gross realized gains and gross realized losseson trading securities were immaterial for the three and six months ending June 30, 2013 and 2012, respectively. Net unrealized gains on trading securities were immaterial for the three months ending June 30, 2013 and 2012, respectively, and $2 million and $1 million for the sixmonths ending June 30, 2013 and 2012, respectively.

At June 30, 2013 and December 31, 2012, securities with a fair value of $9.7billion 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 June 30, 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	$	771	764	80	80
	1-5 years		4,521	4,755	173	173
	5-10 years		6,656	6,755	20	20
	Over 10 years		2,867	2,926	1	1
Other securities			978	987	-	-
Total		$	15,793	16,187	274	274

• 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 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
			Unrealized		Unrealized		Unrealized
($ in millions)		Fair Value	Losses	Fair Value	Losses	Fair Value	Losses
June 30, 2013
U.S. Treasury and government agencies	$	26	-	-	-	26	-
Agency mortgage-backed securities		3,850	(88)	3	-	3,853	(88)
Other bonds, notes and debentures		702	(11)	58	(2)	760	(13)
Other securities		30	(1)	-	-	30	(1)
Total	$	4,608	(100)	61	(2)	4,669	(102)
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

The Bancorp recognized $12 million in OTTI, included in securities gains, net, in the Bancorp's Condensed Consolidated Statements of Income,on its available-for-saledebt securities for the three and six months ended June 30, 2013. During the three and six months ended June 30, 2012, the Bancorp recognized $17 million of OTTI on its available-for-sale debt securities. The Bancorp did not recognize OTTI on any of its available-for-sale equity securities or held-to-maturity debt securities during the three and six months ended June 30, 2013 and 2012. Less than one percent of unrealized losses in the available-for-sale securities portfolio were represented by non-rated securities at June 30, 2013and December 31, 2012.