Investment Securities (Tables)

6 Months Ended

Jun. 30, 2024

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 securities portfolios as of:


June 30, 2024 ($ in millions)	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities	$	3,504	2	—	3,506
Obligations of states and political subdivisions securities	2		—	—	2
Mortgage-backed securities:
Agency residential mortgage-backed securities	5,556		—	(799)	4,757
Agency commercial mortgage-backed securities	24,315		—	(3,160)	21,155
Non-agency commercial mortgage-backed securities	4,816		—	(413)	4,403
Asset-backed securities and other debt securities	4,609		5	(245)	4,369
Other securities(a)	794		—	—	794
Total available-for-sale debt and other securities	$	43,596	7	(4,617)	38,986
Held-to-maturity securities:(b)
U.S. Treasury and federal agencies securities	$	2,338	—	(39)	2,299
Mortgage-backed securities:
Agency residential mortgage-backed securities	5,092		—	(160)	4,932
Agency commercial mortgage-backed securities	4,011		4	(61)	3,954
Asset-backed securities and other debt securities	2		—	—	2
Total held-to-maturity securities	$	11,443	4	(260)	11,187

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $293, $499 and $2, respectively, at June 30, 2024, that are carried at cost.

(b)The amortized cost basis of held-to-maturity securities includes a discount of $930 at June 30, 2024 pertaining to the unamortized portion of unrealized losses on securities.


December 31, 2023 ($ in millions)	Amortized Cost		Unrealized Gains	Unrealized Losses	Fair Value
Available-for-sale debt and other securities:
U.S. Treasury and federal agencies securities	$	4,477	1	(142)	4,336
Obligations of states and political subdivisions securities	2		—	—	2
Mortgage-backed securities:
Agency residential mortgage-backed securities	11,564		—	(1,282)	10,282
Agency commercial mortgage-backed securities	28,945		5	(3,230)	25,720
Non-agency commercial mortgage-backed securities	4,872		—	(427)	4,445
Asset-backed securities and other debt securities	5,207		3	(298)	4,912
Other securities(a)	722		—	—	722
Total available-for-sale debt and other securities	$	55,789	9	(5,379)	50,419
Held-to-maturity securities:
Asset-backed securities and other debt securities	$	2	—	—	2
Total held-to-maturity securities	$	2	—	—	2

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $224, $496 and $2, respectively, at December 31, 2023, that are carried at cost.

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


($ in millions)	June 30, 2024		December 31, 2023
Trading debt securities	$	1,132	899
Equity securities	476		613

Realized Gains and Losses Recognized in Income from Investment Securities

The following table presents the components of net securities gains and losses recognized in the Condensed Consolidated Statements of Income, including those recognized related to the Bancorp’s non-qualifying hedging strategy for MSRs:


	For the three months ended June 30,			For the six months ended June 30,
($ in millions)	2024		2023	2024	2023
Available-for-sale debt and other securities:
Realized gains	$	1	4	3	34
Realized losses	—		—	—	(30)
Impairment losses	(5)		(4)	(10)	(4)
Net losses on available-for-sale debt and other securities	$	(4)	—	(7)	—
Trading debt securities:
Net realized losses	—		—	—	—
Net unrealized gains	—		2	—	2
Net trading debt securities gains	$	—	2	—	2
Equity securities:
Net realized gains	11		1	11	2
Net unrealized gains (losses)	(4)		4	9	7
Net equity securities gains	$	7	5	20	9
Total gains recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities(a)	$	3	7	13	11

(a)Excludes an immaterial amount and $2 of net securities gains for the three and six months ended June 30, 2024, respectively, and $1 of net securities losses and an immaterial amount of net securities gains for the three and six months ended June 30, 2023, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These gains and losses are included in commercial banking revenue and wealth and asset management revenue in the Condensed Consolidated Statements of Income.

Contractual Maturity Schedule

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 securities as of June 30, 2024 are shown in the following table:


($ in millions)	Available-for-Sale Debt and Other			Held-to-Maturity
	Amortized Cost		Fair Value	Amortized Cost	Fair Value
Debt securities:(a)
Due in 1 year or less	$	904	875	38	38
Due after 1 year through 5 years	18,452		17,404	2,930	2,882
Due after 5 years through 10 years	15,740		13,343	7,995	7,787
Due after 10 years	7,706		6,570	480	480
Other securities	794		794	—	—
Total	$	43,596	38,986	11,443	11,187

(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
($ in millions)	Fair Value		Unrealized Losses	Fair Value	Unrealized Losses	Fair Value	Unrealized Losses
June 30, 2024
U.S. Treasury and federal agencies securities	$	730	—	—	—	730	—

Agency residential mortgage-backed securities	—		—	4,756	(799)	4,756	(799)
Agency commercial mortgage-backed securities	3,709		(448)	17,320	(2,712)	21,029	(3,160)
Non-agency commercial mortgage-backed securities	35		(1)	4,368	(412)	4,403	(413)
Asset-backed securities and other debt securities	101		(1)	3,822	(244)	3,923	(245)
Total	$	4,575	(450)	30,266	(4,167)	34,841	(4,617)
December 31, 2023
U.S. Treasury and federal agencies securities	$	1,989	(3)	2,157	(139)	4,146	(142)
Agency residential mortgage-backed securities	81		(2)	10,200	(1,280)	10,281	(1,282)
Agency commercial mortgage-backed securities	5,439		(556)	19,957	(2,674)	25,396	(3,230)
Non-agency commercial mortgage-backed securities	141		(2)	4,284	(425)	4,425	(427)
Asset-backed securities and other debt securities	340		(17)	4,184	(281)	4,524	(298)
Total	$	7,990	(580)	40,782	(4,799)	48,772	(5,379)