Fifth Third Bank 2012 Annual Report Download - page 99

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
97 Fifth Third Bancorp
The following table presents realized gains and losses that were recognized in income from available-for-sale securities for the years ended
December 31:
($ in millions) 2012 2011 2010
Realized gains $75 75 69
Realized losses (2) - (10)
OTTI (58) (19) (3)
Net realized gains $15 56 56
Trading securities totaled $207 million as of December 31, 2012,
compared to $177 million at December 31, 2011. Gross realized
gains on trading securities were $2 million for the year ended
December 31, 2012, and $1 million for the years ended 2011 and
2010. Gross realized losses on trading securities were immaterial to
the Bancorp for the year ended December 31, 2012 and $7 million
and $1 million for the years ended December 31, 2011 and 2010,
respectively. Net unrealized gains on trading securities were $1
million and $5 million at December 31, 2012 and 2011, respectively,
and immaterial to the Bancorp at December 31, 2010.
At December 31, 2012 and 2011 securities with a fair value of
$12.6 billion and $13.3 billion, respectively, were pledged to secure
borrowings, public deposits, trust funds, derivative contracts and for
other purposes as required or permitted by law.
The expected maturity distribution of the Bancorp’s agency mortgage-backed securities and the contractual maturity distribution of the Bancorp’s
available-for-sale and other and held-to-maturity securities as of December 31, 2012 are shown in the following table:
Available-for-Sale & Other Held-to-Maturity
($ in millions) Amortized Cost Fair Value Amortized Cost Fair Value
Debt securities:(a)
Under 1 year $555 566 73 73
1-5 years 8,865 9,356 185 185
5-10 years 2,223 2,280 20 20
Over 10 years 1,895 1,969 6 6
Other securities 1,033 1,036 - -
Total $14,571 15,207 284 284
(a) Actual maturities may differ from contractual maturities when there exists a right to call or prepay obligations with or without call or prepayment penalties.
The following table provides the fair value and gross unrealized losses on available-for-sale securities in an unrealized loss position, aggregated b
y
investment category and length of time the individual securities have been in a continuous unrealized loss position as of December 31:
Less than 12 months 12 months or more Total
Unrealized Unrealized Unrealized
($ in millions) Fair Value Losses Fair Value Losses Fair Value Losses
2012
U.S. Treasury and government agencies $ - - - - - -
U.S. Government sponsored agencies - - - - - -
Obligations of states and political subdivisions - - - - - -
A
gency mortgage-backed securities 1,784 (18) - - 1,784 (18)
Other bonds, notes and debentures 454 (3) - - 454 (3)
Other securities 1 - - - 1 -
Total $ 2,239 (21) - - 2,239 (21)
2011
U.S. Treasury and government agencies $70 -1 - 71 -
U.S. Government sponsored agencies - -- - - -
Obligations of states and political subdivisions - -2 - 2 -
A
gency mortgage-backed securities 34 (1) 6 - 40 (1)
Other bonds, notes and debentures 523 (4) 38 (5) 561 (9)
Other securities 6 -- - 6 -
Total $633 (5) 47 (5) 680 (10)
Other-Than-Temporary Impairments
The Bancorp recognized $58 million, $19 million, and $3 million of
OTTI, included in securities gains, net and securities gains, net –
non-qualifying hedges on mortgage servicing rights, in the
Bancorp’s Consolidated Statements of Income, on its available-for-
sale and other debt securities during the years ended December 31,
2012, 2011, and 2010, respectively, and no OTTI was recognized
on held-to-maturity debt securities for the years ended December
31, 2012, 2011, and 2010. Less than one percent of unrealized losses
in the available-for-sale securities portfolio were represented by
non-rated securities at December 31, 2012 and 2011.
During the years ended December 31, 2012 and 2011, the
Bancorp did not recognize OTTI on any of its available-for-sale
equity securities. In addition, for the year ended December 31, 2010,
OTTI recognized on available-for-sale equity securities was
immaterial to the Bancorp’s Consolidated Financial Statements.