Securities

3 Months Ended

Mar. 31, 2015

Securities

Securities

4. 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
March 31, 2015 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale and other:
	U.S. Treasury and federal agencies securities		$	1,545	82	-	1,627
	Obligations of states and political subdivisions securities			185	7	-	192
	Mortgage-backed securities:
		Agency residential mortgage-backed securities(a)		14,486	539	-	15,025
		Agency commercial mortgage-backed securities		5,261	186	-	5,447
		Non-agency commercial mortgage-backed securities		1,928	86	-	2,014
	Asset-backed securities and other debt securities			1,371	36	(5)	1,402
	Equity securities(b)			699	4	(1)	702
Total			$	25,475	940	(6)	26,409
Held-to-maturity:
	Obligations of states and political subdivisions securities		$	176	-	-	176
	Asset-backed securities and other debt securities			1	-	-	1
Total			$	177	-	-	177

				Amortized	Unrealized	Unrealized	Fair
December 31, 2014 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale and other:
	U.S. Treasury and federal agencies securities		$	1,545	87	-	1,632
	Obligations of states and political subdivisions securities			185	7	-	192
	Mortgage-backed securities:
		Agency residential mortgage-backed securities(a)		11,968	437	(1)	12,404
		Agency commercial mortgage-backed securities		4,465	101	(1)	4,565
		Non-agency commercial mortgage-backed securities		1,489	61	-	1,550
	Asset-backed securities and other debt securities			1,324	40	(2)	1,362
	Equity securities(b)			701	3	(1)	703
Total			$	21,677	736	(5)	22,408
Held-to-maturity:
	Obligations of states and political subdivisions securities		$	186	-	-	186
	Asset-backed securities and other debt securities			1	-	-	1
Total			$	187	-	-	187

• Includes interest-only mortgage-backed securities of $158and $175as of March 31, 2015and December 31, 2014, respectively,recorded at fair value with fair value changes recorded in securities gains, net,in the Condensed Consolidated Statements of Income.
• Equity securities consist of FHLB and FRB restricted stock holdings of $248and $352, respectively,at March 31, 2015andDecember 31, 2014, 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)		2015	2014
Realized gains	$	15	27
Realized losses		(2)	(5)
OTTI		(1)	(17)
Net realized gains(a)	$	12	5

• Excludes net losses on interest-only mortgage-backed securities of $9for the three months ended March 31, 2015andnet gains on interest-only mortgage-backed securities of $1for the three months ended March 31, 2014.

Trading securities were$392 million as of March 31, 2015, compared to $360 million at December 31, 2014. Gross realized gains and gross realized losses on trading securities were immaterial to the Bancorp for the three months ended March 31, 2015 and 2014. Net unrealized gains on trading securities were $1 millionfor the three months endedMarch 31, 2015 and 2014.

At March 31, 2015 and December 31, 2014, securities with a fair value of $14.1billion and $14.2billion, 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 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 March 31, 2015 are shown in the following table:
			Available-for-Sale and Other		Held-to-Maturity
($ in millions)			Amortized Cost	Fair Value	Amortized Cost	Fair Value
Debt securities:(a)
	Less than 1 year	$	219	222	112	112
	1-5 years		8,564	8,982	47	47
	5-10 years		14,641	15,101	16	16
	Over 10 years		1,352	1,402	2	2
Equity securities			699	702	-	-
Total		$	25,475	26,409	177	177

• 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
March 31, 2015
Asset-backed securities and other debt securities	$	236	(3)	90	(2)	326	(5)
Equity securities		-	-	31	(1)	31	(1)
Total	$	236	(3)	121	(3)	357	(6)
December 31, 2014
Agency residential mortgage-backed securities	$	73	(1)	-	-	73	(1)
Agency commercial mortgage-backed securities		355	(1)	-	-	355	(1)
Asset-backed securities and other debt securities		286	(1)	74	(1)	360	(2)
Equity securities		-	-	30	(1)	30	(1)
Total	$	714	(3)	104	(2)	818	(5)

Other-Than-Temporary Impairments

The Bancorp recognized $1 million and $17 million of OTTIon its available-for sale and other debt securities, included in securities gains, net, in the Condensed Consolidated Statements of Income during the three months ended March 31, 2015 and 2014, respectively. The Bancorp did not recognize OTTI on any of its available-for-sale equity securities or its held-to-maturity debt securities during the three months ended March 31, 2015 and 2014. At March 31, 2015, two percent of unrealized losses in the available-for-sale and other securities portfolio were represented by non-rated securities, compared to less than one percent at December 31, 2014.