Securities (Tables)

9 Months Ended

Sep. 30, 2013

Securities

Available-for-Sale and Other 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 other and held-to-maturity securities portfolios as of:
			Amortized	Unrealized	Unrealized	Fair
September 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		1,524	129	-	1,653
	Obligations of states and political subdivisions		201	4	-	205
	Agency mortgage-backed securities(a)		11,149	229	(25)	11,353
	Other bonds, notes and debentures		3,773	82	(16)	3,839
	Other securities(b)		992	13	(1)	1,004
Total		$	17,665	457	(42)	18,080
Held-to-maturity:
	Obligations of states and political subdivisions	$	264	-	-	264
	Other debt securities		1	-	-	1
Total		$	265	-	-	265

			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 $279and $408as of September 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 $349, respectively,at September 30, 2013and$497and$347, respectively, atDecember 31, 2012, 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 three months		For the nine months
		ended September 30,		ended September 30,
($ in millions)		2013	2012	2013	2012
Realized gains	$	14	29	54	57
Realized losses		(4)	-	(90)	(2)
OTTI		(45)	(23)	(57)	(39)
Net realized (losses) gains(a)	$	(35)	6	(93)	16

Excludes net gains on interest-only mortgage-backed securities of $40for the three months ended September 30, 2013 and net gains on interest-only mortgage backed securities of $121 for the nine months ended September 30, 2013, respectively.

Amortized Cost and Fair Value of Available-for-Sale and Other 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 September 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	$	282	291	72	72
	1-5 years		4,984	5,215	174	174
	5-10 years		7,806	7,906	18	18
	Over 10 years		3,601	3,664	1	1
Other securities			992	1,004	-	-
Total		$	17,665	18,080	265	265

• 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 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
September 30, 2013
Obligations of states and political subdivisions	$	31	-	-	-	31	-
Agency mortgage-backed securities		2,276	(25)	2	-	2,278	(25)
Other bonds, notes and debentures		1,048	(13)	100	(3)	1,148	(16)
Other securities		37	(1)	-	-	37	(1)
Total	$	3,392	(39)	102	(3)	3,494	(42)
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)