Loans and Leases

6 Months Ended

Jun. 30, 2011

Loans and Leases

5. Loans and Leases

The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. Lending activities are concentrated within those states in which the Bancorp has banking centers and are primarily located in the Midwestern and Southeastern regions of the United States. The Bancorp’s commercial loan portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses inherent in the portfolio. For further information on credit quality and the ALLL, see Note 6.

The following table provides a summary of the total loans and leases classified by primary purpose as of:

	June 30,		December 31,		June 30,
($ in millions)	2011		2010		2010
Loans and leases held for sale:
Commercial and industrial loans	$	56		83		2
Commercial mortgage loans		98		147		88
Commercial construction loans		27		63		77
Residential mortgage loans		989		1,901		1,965
Other consumer loans and leases		15		22		18
Total loans and leases held for sale	$	1,185		2,216		2,150
Portfolio loans and leases:
Commercial and industrial loans	$	28,099		27,191		26,008
Commercial mortgage loans		10,233		10,845		11,481
Commercial construction loans		1,778		2,048		2,965
Commercial leases		3,326		3,378		3,271
Total commercial loans and leases		43,436		43,462		43,725
Residential mortgage loans		9,849		8,956		7,707
Home equity		11,048		11,513		11,987
Automobile loans		11,315		10,983		10,285
Credit card		1,856		1,896		1,841
Other consumer loans and leases		463		681		687
Total consumer loans and leases		34,531		34,029		32,507
Total portfolio loans and leases	$	77,967		77,491		76,232

Total portfolio loans and leases are recorded net of unearned income, which totaled $953 million as of June 30, 2011, and $1.0 billion as of December 31, 2010, and June 30, 2010. Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts, deferred loan fees and costs, and fair value adjustments (associated with acquired loans or loans designated as fair value upon origination) which totaled a net premium of $20 million as of June 30, 2011 and net discounts of $19 million and $55 million as of December 31, 2010 and June 30, 2010, respectively.

The following table presents a summary of the total loans and leases owned by the Bancorp as of and for the six months ended June 30:

					Balance of Loans 90				Net Credit
	Balance				Days or More Past Due				Losses
($ in millions)	2011		2010		2011		2010		2011			2010
Commercial and industrial loans	$	28,155		26,011	$	7		48	$	159			265
Commercial mortgage loans		10,331		11,569		12		53		101			177
Commercial construction loans		1,805		3,042		48		37		46			121
Commercial leases		3,326		3,271		1		4		(1	)		4
Residential mortgage loans		10,838		9,672		87		107		101			173
Home equity loans		11,048		11,987		84		90		117			134
Automobile loans		11,315		10,285		10		12		28			51
Other consumer loans and leases		2,334		2,545		30		46		120			91
Total loans and leases	$	79,152		78,382	$	279		397	$	671			1,016
Less: Loans held for sale	$	1,185		2,150
Total portfolio loans and leases	$	77,967		76,232