Investment Securities (Tables)

9 Months Ended

Sep. 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:


September 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	$	4,354	—	(4)	4,350
Obligations of states and political subdivisions securities	—		—	—	—
Mortgage-backed securities:
Agency residential mortgage-backed securities	5,623		—	(606)	5,017
Agency commercial mortgage-backed securities	24,008		5	(2,294)	21,719
Non-agency commercial mortgage-backed securities	4,677		2	(280)	4,399
Asset-backed securities and other debt securities	4,315		5	(186)	4,134
Other securities(a)	777		—	—	777
Total available-for-sale debt and other securities	$	43,754	12	(3,370)	40,396
Held-to-maturity securities:(b)
U.S. Treasury and federal agencies securities	$	2,354	25	—	2,379
Mortgage-backed securities:
Agency residential mortgage-backed securities	4,992		75	(1)	5,066
Agency commercial mortgage-backed securities	4,010		97	—	4,107
Asset-backed securities and other debt securities	2		—	—	2
Total held-to-maturity securities	$	11,358	197	(1)	11,554

(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $275, $499 and $3, respectively, at September 30, 2024, that are carried at cost.

(b)The amortized cost basis of held-to-maturity securities includes a discount of $897 at September 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)	September 30, 2024		December 31, 2023
Trading debt securities	$	1,176	899
Equity securities	428		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 September 30,			For the nine months ended September 30,
($ in millions)	2024		2023	2024	2023
Available-for-sale debt and other securities:
Realized gains	$	—	1	4	34
Realized losses	—		—	—	(30)
Impairment losses	(11)		(1)	(21)	(5)
Net losses on available-for-sale debt and other securities	$	(11)	—	(17)	(1)
Trading debt securities:
Net realized gains	1		—	—	—
Net unrealized gains	—		—	—	2
Net trading debt securities gains	$	1	—	—	2
Equity securities:
Net realized gains	4		2	15	3
Net unrealized gains (losses)	16		(9)	25	(1)
Net equity securities gains (losses)	$	20	(7)	40	2
Total gains (losses) recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities(a)	$	10	(7)	23	3

(a)Excludes $7 and $9 of net securities gains for the three and nine months ended September 30, 2024, respectively, and $2 and $3 of net securities gains for the three and nine months ended September 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 September 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	$	3,140	3,117	38	38
Due after 1 year through 5 years	17,036		16,376	3,071	3,106
Due after 5 years through 10 years	16,020		14,120	7,770	7,908
Due after 10 years	6,781		6,006	479	502
Other securities	777		777	—	—
Total	$	43,754	40,396	11,358	11,554

(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
September 30, 2024
U.S. Treasury and federal agencies securities	$	4,210	(4)	—	—	4,210	(4)

Agency residential mortgage-backed securities	215		(1)	4,796	(605)	5,011	(606)
Agency commercial mortgage-backed securities	3,736		(302)	17,651	(1,992)	21,387	(2,294)
Non-agency commercial mortgage-backed securities	—		—	4,210	(280)	4,210	(280)
Asset-backed securities and other debt securities	143		(12)	3,451	(174)	3,594	(186)
Total	$	8,304	(319)	30,108	(3,051)	38,412	(3,370)
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)