| Investment Securities |
Investment Securities The Bancorp uses investment securities as a means of managing interest rate risk, providing collateral for pledging purposes and for liquidity risk management. The Bancorp may also utilize investment securities as part of a non-qualifying hedging strategy to manage interest rate risk related to MSRs.
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: | | | | | | | | | | | | | | | | March 31, 2026 ($ in millions) | Amortized
Cost | Unrealized
Gains | Unrealized
Losses | Fair
Value | | Available-for-sale debt and other securities: | | | | | | U.S. Treasury and federal agencies securities | $ | 3,454 | | 2 | | (2) | | 3,454 | | | | | | | | Mortgage-backed securities: | | | | | | Agency residential mortgage-backed securities | 15,183 | | 10 | | (599) | | 14,594 | | | Agency commercial mortgage-backed securities | 24,403 | | 3 | | (2,168) | | 22,238 | | | Non-agency commercial mortgage-backed securities | 2,962 | | 1 | | (212) | | 2,751 | | | Asset-backed securities and other debt securities | 2,438 | | 2 | | (114) | | 2,326 | | Other securities(a) | 798 | | — | | — | | 798 | | | Total available-for-sale debt and other securities | $ | 49,238 | | 18 | | (3,095) | | 46,161 | | Held-to-maturity securities:(b) | | | | | | U.S. Treasury and federal agencies securities | $ | 2,154 | | 3 | | — | | 2,157 | | | Mortgage-backed securities: | | | | | | Agency residential mortgage-backed securities | 5,612 | | 11 | | (71) | | 5,552 | | | Agency commercial mortgage-backed securities | 8,621 | | 36 | | (27) | | 8,630 | | | Asset-backed securities and other debt securities | 2 | | — | | — | | 2 | | | Total held-to-maturity securities | $ | 16,389 | | 50 | | (98) | | 16,341 | |
(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $204, $591 and $3, respectively, at March 31, 2026, that are carried at cost. (b)The amortized cost basis includes a discount of $715 at March 31, 2026 pertaining to the remaining unamortized portion of unrealized losses on securities transferred to HTM.
| | | | | | | | | | | | | | | | December 31, 2025 ($ in millions) | Amortized
Cost | Unrealized
Gains | Unrealized
Losses | Fair
Value | | Available-for-sale debt and other securities: | | | | | | U.S. Treasury and federal agencies securities | $ | 1,575 | | — | | — | | 1,575 | | | | | | | | Mortgage-backed securities: | | | | | | Agency residential mortgage-backed securities | 9,138 | | 18 | | (533) | | 8,623 | | | Agency commercial mortgage-backed securities | 22,307 | | 4 | | (2,124) | | 20,187 | | | Non-agency commercial mortgage-backed securities | 3,032 | | 1 | | (200) | | 2,833 | | | Asset-backed securities and other debt securities | 2,381 | | 2 | | (116) | | 2,267 | | Other securities(a) | 674 | | — | | — | | 674 | | | Total available-for-sale debt and other securities | $ | 39,107 | | 25 | | (2,973) | | 36,159 | | Held-to-maturity securities:(b) | | | | | | U.S. Treasury and federal agencies securities | $ | 2,438 | | 19 | | — | | 2,457 | | | Mortgage-backed securities: | | | | | | Agency residential mortgage-backed securities | 5,023 | | 23 | | (44) | | 5,002 | | | Agency commercial mortgage-backed securities | 3,905 | | 43 | | (5) | | 3,943 | | | Asset-backed securities and other debt securities | 2 | | — | | — | | 2 | | | Total held-to-maturity securities | $ | 11,368 | | 85 | | (49) | | 11,404 | |
(a)Other securities consist of FHLB, FRB and DTCC restricted stock holdings of $167, $505 and $2, respectively, at December 31, 2025, that are carried at cost. (b)The amortized cost basis includes a discount of $742 at December 31, 2025 pertaining to the remaining unamortized portion of unrealized losses on securities transferred to HTM.
The following table provides the fair value of trading debt securities and equity securities as of: | | | | | | | | |
($ in millions) | March 31,
2026 | December 31,
2025 | | Trading debt securities | $ | 1,669 | | 1,057 | | | Equity securities | 544 | | 453 | |
The amounts reported in the preceding tables exclude accrued interest receivable on investment securities of $194 million and $139 million at March 31, 2026 and December 31, 2025, respectively, which is presented as a component of other assets in the Condensed Consolidated Balance Sheets. The following table presents the components of net securities losses and gains recognized in the Condensed Consolidated Statements of Income: | | | | | | | | | | | | For the three months ended March 31, | | | ($ in millions) | 2026 | 2025 | | | | Available-for-sale debt and other securities: | | | | | | Realized gains | $ | 7 | | 5 | | | | | Realized losses | (7) | | (5) | | | | | | | | | | Net losses on available-for-sale debt and other securities | $ | — | | — | | | | | Trading debt securities: | | | | | | | | | | | Net unrealized losses | (1) | | — | | | | | Net trading debt securities losses | $ | (1) | | — | | | | | Equity securities: | | | | | | Net realized gains | 1 | | — | | | | | Net unrealized losses | (12) | | (9) | | | | | Net equity securities losses | $ | (11) | | (9) | | | | Total losses recognized in income from available-for-sale debt and other securities, trading debt securities and equity securities(a) | $ | (12) | | (9) | | | |
(a)Excludes $3 and $4 of net securities gains for the three months ended March 31, 2026 and 2025, respectively, related to securities held by FTS to facilitate the timely execution of customer transactions. These gains and losses are included in capital markets fees and wealth and asset management revenue in the Condensed Consolidated Statements of Income.
At both March 31, 2026 and December 31, 2025, the Bancorp did not recognize an allowance for credit losses for its investment securities. The Bancorp also did not recognize provision for credit losses for investment securities during both the three months ended March 31, 2026 and 2025.
At March 31, 2026 and December 31, 2025, investment securities with a fair value of $31.5 billion and $28.6 billion, respectively, were pledged to secure borrowing capacity, public deposits, trust funds, derivative contracts and for other purposes as required or permitted by law.
The expected maturity distribution of the Bancorp’s mortgage-backed securities and the contractual maturity distribution of the remainder of the Bancorp’s available-for-sale debt and other securities and held-to-maturity securities as of March 31, 2026 are shown in the following table: | | | | | | | | | | | | | | | | ($ 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 | $ | 4,010 | | 3,986 | | 308 | | 308 | | | Due after 1 year through 5 years | 21,048 | | 20,382 | | 5,546 | | 5,565 | | | Due after 5 years through 10 years | 19,350 | | 17,447 | | 10,350 | | 10,279 | | | Due after 10 years | 4,032 | | 3,548 | | 185 | | 189 | | | Other securities | 798 | | 798 | | — | | — | | | Total | $ | 49,238 | | 46,161 | | 16,389 | | 16,341 | |
(a)Actual maturities may differ from contractual maturities when a right to call or prepay obligations exists with or without call or prepayment penalties. 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 | | March 31, 2026 ($ in millions) | Fair Value | Unrealized
Losses | Fair Value | Unrealized
Losses | Fair Value | Unrealized
Losses | | | | | | | | | U.S. Treasury and federal agencies securities | $ | 1,496 | | (2) | | — | | — | | 1,496 | | (2) | | | | | | | | | | Agency residential mortgage-backed securities | 7,900 | | (50) | | 4,469 | | (549) | | 12,369 | | (599) | | | Agency commercial mortgage-backed securities | 1,973 | | (15) | | 19,366 | | (2,153) | | 21,339 | | (2,168) | | | Non-agency commercial mortgage-backed securities | 64 | | (1) | | 2,598 | | (211) | | 2,662 | | (212) | | | Asset-backed securities and other debt securities | 305 | | (4) | | 1,762 | | (110) | | 2,067 | | (114) | | | Total | $ | 11,738 | | (72) | | 28,195 | | (3,023) | | 39,933 | | (3,095) | | | December 31, 2025 | | | | | | | | U.S. Treasury and federal agencies securities | $ | 1,225 | | — | | — | | — | | 1,225 | | — | | | Agency residential mortgage-backed securities | 1,454 | | (7) | | 4,615 | | (526) | | 6,069 | | (533) | | | Agency commercial mortgage-backed securities | 149 | | (1) | | 19,826 | | (2,123) | | 19,975 | | (2,124) | | | Non-agency commercial mortgage-backed securities | 1 | | — | | 2,695 | | (200) | | 2,696 | | (200) | | | Asset-backed securities and other debt securities | 135 | | (1) | | 1,893 | | (115) | | 2,028 | | (116) | | | Total | $ | 2,964 | | (9) | | 29,029 | | (2,964) | | 31,993 | | (2,973) | |
At March 31, 2026 and December 31, 2025, $25 million and $24 million, respectively, of unrealized losses in the available-for-sale debt and other securities portfolio were related to non-rated securities.
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