Fifth Third Bank 2014 Annual Report Download - page 103

Download and view the complete annual report

Please find page 103 of the 2014 Fifth Third Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 192

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
101 Fifth Third Bancorp
The FRB launched the 2015 stress testing program and CCAR
on October 23, 2014. The stress testing results and capital plan were
submitted by the Bancorp to the FRB on January 5, 2015.
The FRB expects to release summary results of the 2015 stress
testing program and CCAR in March of 2015. The results will
include supervisory projections of capital ratios, losses and revenues
under the supervisory adverse and supervisory severely adverse
scenarios. The FRB will also issue an objection or non-objection to
each participating institution’s capital plan submitted under CCAR.
Additionally, as a CCAR institution, the Bancorp will be required to
publicly disclose the results of its company run stress test as
required by the DFA, within 15 days of the date the FRB discloses
the results of its DFA supervisory stress test.
4. SECURITIES
The following table provides the amortized cost, fair value and unrealized gains and losses for the major categories of the available-for-sale and
other and held-to-maturity securities portfolios as of December 31:
2014 2013
Amortized Unrealized Unrealized Fair Amortized Unrealized Unrealized Fair
($ in millions) Cost Gains Losses Value Cost Gains Losses Value
A
vailable-for-sale and other:
U.S. Treasury and federal agencies $ 1,545 87 - 1,632 1,549 121 - 1,670
Obligations of states and political subdivisions 185 7 - 192 187 5 - 192
Mortgage-backed securities:
A
gency residential mortgage-backed securities(a) 11,968 437 (1) 12,404 12,294 140 (150) 12,284
A
gency commercial mortgage-backed securities 4,465 101 (1) 4,565 - - - -
Non-agency commercial mortgage-backed securities 1,489 61 - 1,550 1,368 28 (1) 1,395
A
sset-backed securities and other debt securities 1,324 40 (2) 1,362 2,146 48 (7) 2,187
Equity securities(b) 701 3 (1) 703 865 5 (1) 869
Total $ 21,677 736 (5) 22,408 18,409 347 (159) 18,597
Held-to-maturity:
Obligations of states and political subdivisions $ 186 - - 186 207 - - 207
A
sset-backed securities and other debt securities 1 - - 1 1 - - 1
Total $ 187 - - 187 208 - - 208
(a) Includes interest-only mortgage-backed securities of
$175
and $262 as of
December 31, 2014
and 2013, respectively, recorded at fair value with fair value changes recorded in securities gains, net and
securities gains, net – non-qualifying hedges on mortgage servicing rights in the Consolidated Statements of Income.
(b) Equity securities consist of FHLB and FRB restricted stock holdings of
$248
and
$352
, respectively, at
December 31, 2014
and, $402 and $349, respectively, at December 31, 2013, that are
carried at cost, and certain mutual fund and equity security holdings.
The following table presents realized gains and losses that were recognized in income from available-for-sale securities for the years ended
December 31:
($ in millions) 2014 2013 2012
Realized gains $70 77 75
Realized losses (9) (102) (2)
OTTI (24) (74) (58)
Net realized gains (losses)(a) $37 (99) 15
(a) Excludes net losses on interest-only mortgage-backed securities of
$17
for the year ended
December 31, 2014
and net gains on interest-only mortgage-backed securities of $129 for the year ended
December 31, 2013.
Trading securities totaled $360 million as of December 31, 2014,
compared to $343 million at December 31, 2013. Gross realized
gains on trading securities were $4 million, $1 million and $2 million
for the years ended December 31, 2014, 2013 and 2012,
respectively. Gross realized losses on trading securities were
immaterial to the Bancorp for the years ended December 31, 2014,
2013 and 2012. Net unrealized losses on trading securities were $3
million at December 31, 2014 and net unrealized gains on trading
securities were $3 million and $1 million at December 31, 2013 and
2012, respectively.
At December 31, 2014 and 2013 securities with a fair value of
$14.2 billion and $11.6 billion, respectively, were pledged to secure
borrowings, public deposits, trust funds, derivative contracts and for
other purposes as required or permitted by law.