Investment Securities (Tables)

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Investment Securities

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, 2019 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale debt and other securities:
	U.S. Treasury and federal agency securities		$	74	1	-	75
	Obligations of states and political subdivisions securities			2	-	-	2
	Mortgage-backed securities:
		Agency residential mortgage-backed securities		15,185	510	(1)	15,694
		Agency commercial mortgage-backed securities		14,451	826	(1)	15,276
		Non-agency commercial mortgage-backed securities		3,246	154	-	3,400
	Asset-backed securities and other debt securities			2,129	37	(10)	2,156
	Other securities(a)			575	-	-	575
Total available-for-sale debt and other securities			$	35,662	1,528	(12)	37,178
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 $96, $477 and $2, respectively, at September 30, 2019, that are carried at cost.

				Amortized	Unrealized	Unrealized	Fair
December 31, 2018 ($ in millions)				Cost	Gains	Losses	Value
Available-for-sale debt and other securities:
	U.S. Treasury and federal agency securities		$	98	-	(1)	97
	Obligations of states and political subdivisions securities			2	-	-	2
	Mortgage-backed securities:
		Agency residential mortgage-backed securities		16,403	86	(242)	16,247
		Agency commercial mortgage-backed securities		10,770	44	(164)	10,650
		Non-agency commercial mortgage-backed securities		3,305	9	(47)	3,267
	Asset-backed securities and other debt securities			1,998	27	(10)	2,015
	Other securities(a)			552	-	-	552
Total available-for-sale debt and other securities			$	33,128	166	(464)	32,830
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
(a)	Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $184, $366 and $2, respectively, at December 31, 2018, 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)		2019	2018
Trading debt securities	$	297	287
Equity securities		459	452

Realized Gains and Losses Recognized in Income from Investment Securities

The following table presents securities gains (losses) recognized in the Condensed Consolidated Statements of Income:
			For the three months ended		For the nine months ended
			September 30,		September 30,
($ in millions)			2019	2018	2019	2018
Available-for-sale debt and other securities:
	Realized gains	$	3	4	51	61
	Realized losses		-	(4)	(47)	(69)
	OTTI		-	-	(1)	-
Net realized gains (losses) on available-for sale debt and other securities		$	3	-	3	(8)
Total trading debt securities gains (losses)		$	-	(1)	5	(18)
Total equity securities gains (losses)(a)		$	2	(6)	27	(13)
Total gains (losses) recognized in income from available-for-sale debt and other
	securities, trading debt securities and equity securities(b)	$	5	(7)	35	(39)

Includes an immaterial net unrealized gain and a net unrealized gain of $23 for the three and nine months ended September 30, 2019, respectively, and net unrealized losses of $6 and $12 for the three and nine months ended September 30, 2018, respectively.Excludes an insignificant amount of securities gains (losses) included in corporate banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income related to securities held by FTS to facilitate the timely execution of customer transactions.

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, 2019 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	$	197	207	2	2
	1-5 years		13,391	13,817	14	14
	5-10 years		16,568	17,390	-	-
	Over 10 years		4,931	5,189	2	2
Other securities			575	575	-	-
Total		$	35,662	37,178	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, 2019
Agency residential mortgage-backed securities	$	121	(1)	4	-	125	(1)
Agency commercial mortgage-backed securities		134	(1)	-	-	134	(1)
Asset-backed securities and other debt securities		453	(6)	196	(4)	649	(10)
Total	$	708	(8)	200	(4)	908	(12)
December 31, 2018
U.S. Treasury and federal agency securities	$	-	-	97	(1)	97	(1)
Agency residential mortgage-backed securities		3,235	(21)	7,892	(221)	11,127	(242)
Agency commercial mortgage-backed securities		2,022	(37)	5,260	(127)	7,282	(164)
Non-agency commercial mortgage-backed securities		884	(6)	1,621	(41)	2,505	(47)
Asset-backed securities and other debt securities		314	(6)	241	(4)	555	(10)
Total	$	6,455	(70)	15,111	(394)	21,566	(464)