Accumulated Other Comprehensive Income

9 Months Ended

Sep. 30, 2024

The tables below present the activity of the components of OCI and AOCI for the three months ended:


	Total OCI				Total AOCI
September 30, 2024 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding gains on available-for-sale debt securities arising during period	$	1,241	(297)	944
Reclassification adjustment for net losses on available-for-sale debt securities included in net income	11		(2)	9
Net unrealized losses on available-for-sale debt securities	1,252		(299)	953	(3,486)	953	(2,533)

Amortization of unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities included in net income	33		(7)	26
Net unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities	33		(7)	26	(735)	26	(709)

Unrealized holding gains on cash flow hedge derivatives arising during period	530		(127)	403
Reclassification adjustment for net losses on cash flow hedge derivatives included in net income	91		(21)	70
Net unrealized losses on cash flow hedge derivatives	621		(148)	473	(659)	473	(186)


Reclassification of amounts to net periodic benefit costs	1		—	1
Defined benefit pension plans, net	1		—	1	(17)	1	(16)

Other	2		—	2	(4)	2	(2)
Total	$	1,909	(454)	1,455	(4,901)	1,455	(3,446)


	Total OCI				Total AOCI
September 30, 2023 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding losses on available-for-sale debt securities arising during period	$	(1,594)	376	(1,218)
Reclassification adjustment for net losses on available-for-sale debt securities included in net income	—		—	—
Net unrealized losses on available-for-sale debt securities	(1,594)		376	(1,218)	(4,622)	(1,218)	(5,840)

Unrealized holding losses on cash flow hedge derivatives arising during period	(687)		160	(527)
Reclassification adjustment for net losses on cash flow hedge derivatives included in net income	94		(22)	72
Net unrealized losses on cash flow hedge derivatives	(593)		138	(455)	(522)	(455)	(977)


Reclassification of amounts to net periodic benefit costs	—		—	—
Defined benefit pension plans, net	—		—	—	(18)	—	(18)

Other	—		—	—	(4)	—	(4)
Total	$	(2,187)	514	(1,673)	(5,166)	(1,673)	(6,839)

The tables below present the activity of the components of OCI and AOCI for the nine months ended:


	Total OCI				Total AOCI
September 30, 2024 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding gains on available-for-sale debt securities arising during period	$	1,001	(238)	763
Unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities	994		(209)	785
Reclassification adjustment for net losses on available-for-sale debt securities included in net income	17		(4)	13
Net unrealized losses on available-for-sale debt securities	2,012		(451)	1,561	(4,094)	1,561	(2,533)

Unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities	(994)		209	(785)
Amortization of unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities included in net income	97		(21)	76
Net unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities	(897)		188	(709)	—	(709)	(709)

Unrealized holding losses on cash flow hedge derivatives arising during period	(29)		7	(22)
Reclassification adjustment for net losses on cash flow hedge derivatives included in net income	270		(62)	208
Net unrealized losses on cash flow hedge derivatives	241		(55)	186	(372)	186	(186)


Reclassification of amounts to net periodic benefit costs	1		—	1
Defined benefit pension plans, net	1		—	1	(17)	1	(16)

Other	2		—	2	(4)	2	(2)
Total	$	1,359	(318)	1,041	(4,487)	1,041	(3,446)


	Total OCI				Total AOCI
September 30, 2023 ($ in millions)	Pre-tax Activity		Tax Effect	Net Activity	Beginning Balance	Net Activity	Ending Balance
Unrealized holding losses on available-for-sale debt securities arising during period	$	(1,638)	386	(1,252)
Reclassification adjustment for net losses on available-for-sale debt securities included in net income	1		—	1
Net unrealized losses on available-for-sale debt securities	(1,637)		386	(1,251)	(4,589)	(1,251)	(5,840)

Unrealized holding losses on cash flow hedge derivatives arising during period	(864)		200	(664)
Reclassification adjustment for net losses on cash flow hedge derivatives included in net income	240		(55)	185
Net unrealized losses on cash flow hedge derivatives	(624)		145	(479)	(498)	(479)	(977)


Reclassification of amounts to net periodic benefit costs	1		—	1
Defined benefit pension plans, net	1		—	1	(19)	1	(18)

Other	—		—	—	(4)	—	(4)
Total	$	(2,260)	531	(1,729)	(5,110)	(1,729)	(6,839)

The table below presents reclassifications out of AOCI:


	Condensed Consolidated Statements of Income Caption	For the three months ended September 30,			For the nine months ended September 30,
($ in millions)		2024		2023	2024	2023
Net unrealized losses on available-for-sale debt securities:(a)
Net losses included in net income	Securities gains (losses), net	$	(11)	—	(17)	(1)
	Income before income taxes	(11)		—	(17)	(1)
	Applicable income tax expense	2		—	4	—
	Net income	(9)		—	(13)	(1)
Net unrealized losses on available-for-sale debt securities transferred to held-to-maturity securities:(a)
Net losses included in net income	Interest on securities	(33)		—	(97)	—
	Income before income taxes	(33)		—	(97)	—
	Applicable income tax expense	7		—	21	—
	Net income	(26)		—	(76)	—
Net unrealized losses on cash flow hedge derivatives:(a)
Interest rate contracts related to C&I, commercial mortgage and commercial construction loans	Interest and fees on loans and leases	(91)		(94)	(270)	(240)
	Income before income taxes	(91)		(94)	(270)	(240)
	Applicable income tax expense	21		22	62	55
	Net income	(70)		(72)	(208)	(185)
Net periodic benefit costs:(a)
Amortization of net actuarial loss	Compensation and benefits(b)	(1)		—	(1)	(2)

	Income before income taxes	(1)		—	(1)	(1)
	Applicable income tax expense	—		—	—	—
	Net income	(1)		—	(1)	(1)
Other:(a)
Net losses included in net income	Other noninterest expense	(2)		—	(2)	—
	Income before income taxes	(2)		—	(2)	—
	Applicable income tax expense	—		—	—	—
	Net income	(2)		—	(2)	—

Total reclassifications for the period	Net income	$	(108)	(72)	(300)	(187)

(a)Amounts in parentheses indicate reductions to net income.

(b)This AOCI component is included in the computation of net periodic benefit cost. Refer to Note 22 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2023 for further information.