Securities

6 Months Ended

Jun. 30, 2014

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, 2014 ($ in millions)			Cost	Gains	Losses	Value
Available-for-sale and other:
	U.S. Treasury and government agencies	$	26	-	-	26
	U.S. Government sponsored agencies		1,522	108	-	1,630
	Obligations of states and political subdivisions		186	8	-	194
	Agency mortgage-backed securities(a)		13,657	379	(20)	14,016
	Other bonds, notes and debentures(b)		6,069	156	(7)	6,218
	Other securities(c)		724	7	(1)	730
Total		$	22,184	658	(28)	22,814
Held-to-maturity:
	Obligations of states and political subdivisions	$	193	-	-	193
	Other debt securities		1	-	-	1
Total		$	194	-	-	194

			Amortized	Unrealized	Unrealized	Fair
December 31, 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		1,523	121	-	1,644
	Obligations of states and political subdivisions		187	5	-	192
	Agency mortgage-backed securities(a)		12,294	140	(150)	12,284
	Other bonds, notes and debentures(b)		3,514	76	(8)	3,582
	Other securities(c)		865	5	(1)	869
Total		$	18,409	347	(159)	18,597
Held-to-maturity:
	Obligations of states and political subdivisions	$	207	-	-	207
	Other debt securities		1	-	-	1
Total		$	208	-	-	208

• Includes interest-only mortgage-backed securities of $201and $262as of June 30, 2014and December 31, 2013, 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.
• Includes, on an amortized cost basis, $3,051and $0 of agency CMBS, $1,586and $1,368 of non-agency CMBS, and $1,225and $1,400 of ABS as of June 30, 2014 and December 31, 2013, respectively.
• Other securities consist of FHLB and FRB restricted stock holdings of $249and $350, respectively,at June 30, 2014and$402and$349, respectively, atDecember 31, 2013, 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)		2014	2013	2014	2013
Realized gains	$	14	22	41	40
Realized losses		-	(60)	(5)	(86)
OTTI		-	(12)	(17)	(12)
Net realized gains (losses)(a)	$	14	(50)	19	(58)

(a) Excludes net losses on interest-only mortgage-backed securities of$8and $7 for the three and six months ended June 30, 2014, respectively, and net gains on interest-only mortgage-backed securities of $56and $81for the three and six months ended June 30, 2013, respectively.

Trading securities totaled $361 million as of June 30, 2014, compared to $343 million at December 31, 2013.Gross realized gains were immaterial for the three months ended June 30, 2014 and 2013and were $1 million and immaterial for the six months ended June 30, 2014 and 2013, respectively.Gross realized losseson trading securities were immaterial for the three and six months ended June 30, 2014 and 2013. Net unrealized gains on trading securities were $2 million and immaterial for the three months ended June 30, 2014 and 2013, respectively, and $1 million and $2 million for the sixmonths ended June 30, 2014 and 2013, respectively.

At June 30, 2014 and December 31, 2013, securities with a fair value of $13.6billion and $11.6 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 remainder of the Bancorp’s available-for-sale and other and held-to-maturity securities as of June 30, 2014 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	$	114	116	35	35
	1-5 years		3,476	3,673	140	140
	5-10 years		12,479	12,763	17	17
	Over 10 years		5,391	5,532	2	2
Other securities			724	730	-	-
Total		$	22,184	22,814	194	194

• 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, 2014
Agency mortgage-backed securities	$	1,657	(19)	221	(1)	1,878	(20)
Other bonds, notes and debentures		697	(4)	190	(3)	887	(7)
Other securities		2	-	35	(1)	37	(1)
Total	$	2,356	(23)	446	(5)	2,802	(28)
December 31, 2013
Agency mortgage-backed securities	$	7,221	(150)	1	-	7,222	(150)
Other bonds, notes and debentures		595	(5)	132	(3)	727	(8)
Other securities		33	(1)	4	-	37	(1)
Total	$	7,849	(156)	137	(3)	7,986	(159)

Other-Than-Temporary Impairments

The Bancorp did not recognizeOTTI for the three months ended June 30, 2014and recognized $17 million in OTTI, included in securities gains, net, in the Bancorp's Condensed Consolidated Statements of Income,on its available-for-sale and otherdebt securities for the six months ended June 30, 2014. During the three and six months ended June 30, 2013, the Bancorp recognized $12 million of OTTI on its available-for-sale and other 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, 2014 and 2013. Less than one percent of unrealized losses in the available-for-sale securities portfolio were represented by non-rated securities at June 30, 2014and December 31, 2013.