| Investment 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 investment securities portfolios as of December 31: | | | | | | | | | | | | | | | | | | | | | | | | | | 2017 | | 2016 | | | | | Amortized | Unrealized | Unrealized | Fair | | Amortized | Unrealized | Unrealized | Fair | | ($ in millions) | | Cost | Gains | Losses | Value | | Cost | Gains | Losses | Value | | Available-for-sale and other securities: | | | | | | | | | | | | | | | | | | | | U.S. Treasury and federal agencies securities | $ | 98 | | - | | - | | 98 | | | 547 | | 2 | | - | | 549 | | | Obligations of states and political subdivisions securities | | 43 | | 1 | | - | | 44 | | | 44 | | 1 | | - | | 45 | | | Mortgage-backed securities: | | | | | | | | | | | | | | | | | | | | | Agency residential mortgage-backed securities(a) | | 15,281 | | 118 | | (80) | | 15,319 | | | 15,525 | | 178 | | (95) | | 15,608 | | | | Agency commercial mortgage-backed securities | | 10,113 | | 92 | | (38) | | 10,167 | | | 9,029 | | 87 | | (61) | | 9,055 | | | | Non-agency commercial mortgage-backed securities | | 3,247 | | 51 | | (5) | | 3,293 | | | 3,076 | | 51 | | (15) | | 3,112 | | | Asset-backed securities and other debt securities | | 2,183 | | 46 | | (11) | | 2,218 | | | 2,106 | | 28 | | (18) | | 2,116 | | | Equity securities(b) | | 679 | | 4 | | (2) | | 681 | | | 697 | | 3 | | (2) | | 698 | | | Total available-for-sale and other securities | $ | 31,644 | | 312 | | (136) | | 31,820 | | | 31,024 | | 350 | | (191) | | 31,183 | | | Held-to-maturity securities: | | | | | | | | | | | | | | | | | | | | Obligations of states and political subdivisions securities | $ | 22 | | - | | - | | 22 | | | 24 | | - | | - | | 24 | | | Asset-backed securities and other debt securities | | 2 | | - | | - | | 2 | | | 2 | | - | | - | | 2 | | | Total held-to-maturity securities | $ | 24 | | - | | - | | 24 | | | 26 | | - | | - | | 26 | |
- Includes interest-only mortgage-backed securities of $34 and $60 as of December 31, 2017 and 2016, respectively, recorded at fair value with fair value changes recorded in securities gains, net, in the Consolidated Statements of Income.
- Equity securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $362, and $2, respectively, at December 31, 2017 and $248, $358 and $1, respectively, at December 31, 2016, that are carried at cost, and certain mutual fund and equity security holdings.
| | | | | | | | | | Trading securities were $862 million as of December 31, 2017 compared to $410 million at December 31, 2016. The following table presents net realized gains and losses that were recognized in income from available-for-sale and other securities as well as total gains and losses that were recognized in income from trading securities for the years ended December 31: | | | | | | | | | | | | ($ in millions) | | 2017 | 2016 | 2015 | | Available-for-sale and other securities: | | | | | | | | | Realized gains | $ | 85 | | 72 | | 97 | | | Realized losses | | (34) | | (45) | | (76) | | | OTTI | | (54) | | (16) | | (5) | | | Net realized (losses) gains on available-for-sale and other securities(a) | $ | (3) | | 11 | | 16 | | | Total trading securities gains (losses)(b) | $ | 10 | | - | | (7) | | | Total gains and losses recognized in income from available-for-sale and other securities and trading securities | $ | 7 | | 11 | | 9 | |
Excludes net losses on interest-only mortgage-backed securities of $2, $4 and $4 for the years ended December 31, 2017, 2016 and 2015, respectively Includes a net gain of $1 and net losses of $3 and $4 for the years ended December 31, 2017, 2016 and 2015, respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Consolidated Statements of Income. | The following table provides a summary of OTTI by security type: | | | | | | | | | | ($ in millions) | | 2017 | 2016 | 2015 | | Available-for-sale and other debt securities | $ | (54) | | (15) | | (5) | | | Available-for-sale equity securities | | - | | (1) | | - | | | Total OTTI(a) | $ | (54) | | (16) | | (5) | |
(a) Included in securities gains, net, in the Consolidated Statements of Income. At December 31, 2017 and 2016, securities with a fair value of $7.8 billion and $10.1 billion, respectively, were pledged to secure borrowings, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law. | | | | | | | | | | | | | The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale and other and held-to-maturity investment securities as of December 31, 2017 are shown in the following table: | | | | | | | | | | | | | | | | Available-for-Sale and Other | | Held-to-Maturity | | ($ in millions) | | Amortized Cost | Fair Value | | Amortized Cost | Fair Value | | Debt securities:(a) | | | | | | | | | | | | Less than 1 year | $ | 140 | | 141 | | | 5 | | 5 | | | 1-5 years | | 9,695 | | 9,707 | | | 13 | | 13 | | | 5-10 years | | 17,592 | | 17,734 | | | 4 | | 4 | | | Over 10 years | | 3,538 | | 3,557 | | | 2 | | 2 | | | Equity securities | | 679 | | 681 | | | - | | - | | | Total | $ | 31,644 | | 31,820 | | | 24 | | 24 | |
(a) Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists 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 December 31: | | | | | | | | | | | | | | | | | | | Less than 12 months | | 12 months or more | | Total | | | | | Unrealized | | | | Unrealized | | | | Unrealized | | ($ in millions) | | Fair Value | Losses | | Fair Value | Losses | | Fair Value | Losses | | 2017 | | | | | | | | | | | | | | | | | U.S. Treasury and federal agencies securities | $ | 98 | | - | | | - | | - | | | 98 | | - | | | Agency residential mortgage-backed securities | | 7,337 | | (59) | | | 479 | | (21) | | | 7,816 | | (80) | | | Agency commercial mortgage-backed securities | | 2,900 | | (22) | | | 526 | | (16) | | | 3,426 | | (38) | | | Non-agency commercial mortgage-backed securities | | 449 | | (2) | | | 145 | | (3) | | | 594 | | (5) | | | Asset-backed securities and other debt securities | | 317 | | (2) | | | 386 | | (9) | | | 703 | | (11) | | | Equity securities | | - | | - | | | 37 | | (2) | | | 37 | | (2) | | | Total | $ | 11,101 | | (85) | | | 1,573 | | (51) | | | 12,674 | | (136) | | | 2016 | | | | | | | | | | | | | | | | | U.S. Treasury and federal agencies securities | | 199 | | - | | | - | | - | | | 199 | | - | | | Agency residential mortgage-backed securities | $ | 6,223 | | (88) | | | 172 | | (7) | | | 6,395 | | (95) | | | Agency commercial mortgage-backed securities | | 3,183 | | (61) | | | - | | - | | | 3,183 | | (61) | | | Non-agency commercial mortgage-backed securities | | 1,052 | | (15) | | | - | | - | | | 1,052 | | (15) | | | Asset-backed securities and other debt securities | | 422 | | (8) | | | 336 | | (10) | | | 758 | | (18) | | | Equity securities | | - | | - | | | 37 | | (2) | | | 37 | | (2) | | | Total | $ | 11,079 | | (172) | | | 545 | | (19) | | | 11,624 | | (191) | | | | | | | | | | | | | | | | | |
At December 31, 2017 and 2016, an immaterial amount of unrealized losses in the available-for-sale and other securities portfolio were represented by non-rated securities |