Investment Securities (Tables)

3 Months Ended

Mar. 31, 2018

Investments, Debt and Equity Securities [Abstract]

The following tables provide the amortized cost, unrealized gains and losses and fair value for the major categories of the available-for-sale debt and other securities and held-to-maturity investment securities portfolios as of:

				Amortized	Unrealized	Unrealized	Fair
March 31, 2018 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale debt and other securities:
	U.S. Treasury and federal agencies securities		$	98	-	(2)	96
	Obligations of states and political subdivisions securities			43	1	-	44
	Mortgage-backed securities:
		Agency residential mortgage-backed securities		15,456	37	(285)	15,208
		Agency commercial mortgage-backed securities		10,612	13	(170)	10,455
		Non-agency commercial mortgage-backed securities		3,219	16	(45)	3,190
	Asset-backed securities and other debt securities			2,190	38	(14)	2,214
	Other securities^(a)			612	-	-	612
Total available-for-sale debt and other securities			$	32,230	105	(516)	31,819
Held-to-maturity securities:
	Obligations of states and political subdivisions securities		$	21	-	-	21
	Asset-backed securities and other debt securities			2	-	-	2
Total held-to-maturity securities			$	23	-	-	23

Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $362 and $2, respectively, at March 31, 2018, that are carried at cost.

				Amortized	Unrealized	Unrealized	Fair
December 31, 2017 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale debt and other securities:
	U.S. Treasury and federal agencies securities		$	98	-	-	98
	Obligations of states and political subdivisions securities			43	1	-	44
	Mortgage-backed securities:
		Agency residential mortgage-backed securities^(a)		15,281	118	(80)	15,319
		Agency commercial mortgage-backed securities		10,113	92	(38)	10,167
		Non-agency commercial mortgage-backed securities		3,247	51	(5)	3,293
	Asset-backed securities and other debt securities			2,183	46	(11)	2,218
	Other securities^(b)			612	-	-	612
Total available-for-sale debt and other securities			$	31,577	308	(134)	31,751
Held-to-maturity securities:
	Obligations of states and political subdivisions securities		$	22	-	-	22
	Asset-backed securities and other debt securities			2	-	-	2
Total held-to-maturity securities			$	24	-	-	24

Includes interest-only mortgage-backed securities of $34 as of December 31, 2017, recorded at fair value with fair value changes recorded in securities gains, net, in the Condensed Consolidated Statements of Income.
Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $248, $362 and $2, respectively, at December 31, 2017, that are carried at cost.

The following table provides the fair value of trading debt securities and equity securities as of:

		March 31,	December 31,
($ in millions)		2018	2017
Trading debt securities	$	571	492
Equity securities		418	439

Realized Gains and Losses Recognized in Income from Investment Securities

The following table presents net realized gains and losses that were recognized in income from available-for-sale debt and other securities as well as total (losses) gains that were recognized in income from trading debt securities and equity securities:

			For the three months ended
			March 31,
($ in millions)			2018	2017
Available-for-sale debt and other securities:
	Realized gains	$	34	9
	Realized losses		(43)	(1)
	OTTI^(a)		-	(10)
Net realized losses on available-for sale debt and other securities^(b)		$	(9)	(2)
Total trading debt securities (losses) gains^(c)		$	(14)	1
Total equity securities (losses) gains^(d)(e)		$	(3)	1
Total gains and losses recognized in income from available-for-sale debt and other securities,
	trading debt securities, and equity securities	$	(26)	-

Included in securities losses, net in the Condensed Consolidated Statements of Income.
Excludes net gains of $1 on interest-only mortgage-backed securities for both the three months ended March 31, 2018 and 2017.
Includes a net loss of $1 and a net gain of $1 for the three months ended March 31, 2018 and 2017, respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income.
Includes an immaterial net loss and an immaterial net gain for the three months ended March 31, 2018 and 2017, respectively, recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income.
Includes a net unrealized loss of $2 and a net unrealized gain of $1 for the three months ended March 31, 2018 and 2017, respectively.

Amortized Cost and Fair Value of Available-for-Sale Debt 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 debt and other securities and held-to-maturity investment securities as of March 31, 2018 are shown in the following table:

			Available-for-Sale Debt and Other		Held-to-Maturity
($ in millions)			Amortized Cost	Fair Value	Amortized Cost	Fair Value
Debt securities:^(a)
	Less than 1 year	$	234	225	5	5
	1-5 years		8,664	8,562	15	15
	5-10 years		17,352	17,135	1	1
	Over 10 years		5,368	5,285	2	2
Other securities			612	612	-	-
Total		$	32,230	31,819	23	23

(a) Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists 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 debt 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, 2018
U.S. Treasury and federal agencies	$	96	(2)	-	-	96	(2)
Agency residential mortgage-backed securities		11,958	(256)	458	(29)	12,416	(285)
Agency commercial mortgage-backed securities		8,115	(144)	512	(26)	8,627	(170)
Non-agency commercial mortgage-backed securities		2,188	(38)	141	(7)	2,329	(45)
Asset-backed securities and other debt securities		312	(3)	377	(11)	689	(14)
Total	$	22,669	(443)	1,488	(73)	24,157	(516)
December 31, 2017
U.S. Treasury and federal agencies	$	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)
Total	$	11,101	(85)	1,536	(49)	12,637	(134)