Investment Securities (Tables)

9 Months Ended

Sep. 30, 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
September 30, 2018 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale debt and other securities:
	U.S. Treasury and federal agencies securities		$	98	-	(3)	95
	Obligations of states and political subdivisions securities			2	-	-	2
	Mortgage-backed securities:
		Agency residential mortgage-backed securities		16,447	15	(489)	15,973
		Agency commercial mortgage-backed securities		10,405	4	(363)	10,046
		Non-agency commercial mortgage-backed securities		3,169	4	(76)	3,097
	Asset-backed securities and other debt securities			2,035	20	(11)	2,044
	Other securities^(a)			551	-	-	551
Total available-for-sale debt and other securities			$	32,707	43	(942)	31,808
Held-to-maturity securities:
	Obligations of states and political subdivisions securities		$	16	-	-	16
	Asset-backed securities and other debt securities			2	-	-	2
Total held-to-maturity securities			$	18	-	-	18

Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $184, $365 and $2, respectively, at September 30, 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 (losses) 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:

		September 30,	December 31,
($ in millions)		2018	2017
Trading debt securities	$	269	492
Equity securities		500	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		For the nine months ended
			September 30,		September 30,
($ in millions)			2018	2017	2018	2017
Available-for-sale debt and other securities:
	Realized gains	$	4	24	60	53
	Realized losses		(4)	(21)	(69)	(28)
	OTTI^(a)		-	(4)	-	(28)
Net realized losses on available-for sale debt and other securities^(b)		$	-	(1)	(9)	(3)
Total trading debt securities (losses) gains^(c)		$	(1)	2	(20)	5
Total equity securities (losses) gains^(d)(e)		$	(6)	3	(13)	6
Total (losses) gains recognized in income from available-for-sale debt and other
	securities, trading debt securities and equity securities	$	(7)	4	(42)	8

Included in securities (losses) gains, net in the Condensed Consolidated Statements of Income.
Excludes net gains on interest-only mortgage-backed securities of $0 and $1 for the three and nine months ended September 30, 2018, respectively, and net losses of $1 and $2 for the three and nine months ended September 30, 2017, respectively.
Includes an immaterial net loss and a net loss of $2 for the three and nine months ended September 30, 2018, respectively, and net gains of $1 for both the three and nine months ended September 30, 2017 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 and nine months ended September 30, 2018, respectively, and immaterial net gains for both the three and nine months ended September 30, 2017 recorded in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income.
Includes net unrealized losses of $6 and $12 for the three and nine months ended September 30, 2018, respectively, and net unrealized gains of $2 and $4 for the three and nine months ended September 30, 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 September 30, 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	$	14	14	-	-
	1-5 years		9,080	8,882	16	16
	5-10 years		18,305	17,771	-	-
	Over 10 years		4,757	4,590	2	2
Other securities			551	551	-	-
Total		$	32,707	31,808	18	18

(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
September 30, 2018
U.S. Treasury and federal agency securities	$	95	(3)	-	-	95	(3)
Agency residential mortgage-backed securities		11,073	(286)	3,559	(203)	14,632	(489)
Agency commercial mortgage-backed securities		7,820	(269)	1,701	(94)	9,521	(363)
Non-agency commercial mortgage-backed securities		2,511	(63)	214	(13)	2,725	(76)
Asset-backed securities and other debt securities		627	(4)	397	(7)	1,024	(11)
Total	$	22,126	(625)	5,871	(317)	27,997	(942)
December 31, 2017
U.S. Treasury and federal agency 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)
Total	$	11,101	(85)	1,536	(49)	12,637	(134)