Securities (Tables)

9 Months Ended

Sep. 30, 2014

Available-for-Sale and Other and Held-to-Maturity Securities

The following tables provide 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, 2014 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale and other:
	U.S. Treasury and federal agencies		$	1,645	94	-	1,739
	Obligations of states and political subdivisions			186	7	-	193
	Mortgage-backed securities:
		Agency residential mortgage-backed securities^(a)		12,762	306	(8)	13,060
		Agency commercial mortgage-backed securities		4,226	40	(11)	4,255
		Non-agency commercial mortgage-backed securities		1,524	45	-	1,569
	Asset-backed securities and other debt securities			1,329	44	(3)	1,370
	Equity securities^(b)			720	7	(1)	726
Total			$	22,392	543	(23)	22,912
Held-to-maturity:
	Obligations of states and political subdivisions		$	190	-	-	190
	Asset-backed securities and other debt securities			1	-	-	1
Total			$	191	-	-	191


				Amortized	Unrealized	Unrealized	Fair
December 31, 2013 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale and other:
	U.S. Treasury and federal agencies		$	1,549	121	-	1,670
	Obligations of states and political subdivisions			187	5	-	192
	Mortgage-backed securities:
		Agency residential mortgage-backed securities^(a)		12,294	140	(150)	12,284
		Non-agency commercial mortgage-backed securities		1,368	28	(1)	1,395
	Asset-backed securities and other debt securities			2,146	48	(7)	2,187
	Equity securities^(b)			865	5	(1)	869
Total			$	18,409	347	(159)	18,597
Held-to-maturity:
	Obligations of states and political subdivisions		$	207	-	-	207
	Asset-backed securities and other debt securities			1	-	-	1
Total			$	208	-	-	208

Includes interest-only mortgage-backed securities of $192 and $262 as of September 30, 2014 and 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.
Equity securities consist of FHLB and FRB restricted stock holdings of $249 and $351, respectively, at September 30, 2014 and $402 and $349, respectively, at December 31, 2013, 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)		2014	2013	2014	2013
Realized gains	$	16	14	58	54
Realized losses		(4)	(4)	(9)	(90)
OTTI		(7)	(45)	(24)	(57)
Net realized gains (losses)^(a)	$	5	(35)	25	(93)

(a) Excludes net losses on interest-only mortgage-backed securities of $1 and $9 for the three and nine months ended September 30, 2014, respectively, and net gains on interest-only mortgage-backed securities of $40 and $121 for the three and 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 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 September 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	$	160	162	37	37
	1-5 years		4,237	4,426	135	135
	5-10 years		14,718	14,965	17	17
	Over 10 years		2,557	2,633	2	2
Equity securities			720	726	-	-
Total		$	22,392	22,912	191	191

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, 2014
Agency residential mortgage-backed securities	$	573	(6)	107	(2)	680	(8)
Agency commercial mortgage-backed securities		1,509	(11)	-	-	1,509	(11)
Asset-backed securities and other debt securities		215	(2)	76	(1)	291	(3)
Equity securities		7	-	30	(1)	37	(1)
Total	$	2,304	(19)	213	(4)	2,517	(23)

December 31, 2013
Agency residential mortgage-backed securities	$	7,221	(150)	1	-	7,222	(150)
Non-agency commercial mortgage-backed securities		168	(1)	28	-	196	(1)
Asset-backed securities and other debt securities		427	(5)	104	(2)	531	(7)
Equity securities		33	(1)	4	-	37	(1)
Total	$	7,849	(157)	137	(2)	7,986	(159)

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

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