Credit Quality and the Allowance for Loan and Lease Losses (Tables)

6 Months Ended

Jun. 30, 2011

Summary of Transactions in the ALLL

The following table summarizes transactions in the ALLL:

	For the three months ended June 30,						For the six months ended June 30,
($ in millions)	2011			2010			2011			2010
Balance, beginning of period	$	2,805			3,802			3,004			3,749
Impact of change in accounting principle		—			—			—			45
Losses charged off		(343	)		(472	)		(740	)		(1,094	)
Recoveries of losses previously charged off		39			38			69			78
Provision for loan and lease losses		113			325			281			915
Balance, end of period	$	2,614			3,693			2,614			3,693

Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment

The following tables summarize transactions in the ALLL by portfolio segment:

For the three months ended June 30, 2011 ($ in millions)	Commercial			Residential Mortgage			Consumer			Unallocated			Total
Transactions in the ALLL:
Balance, beginning of period	$	1,855			286			519			145			2,805
Losses charged off		(158	)		(37	)		(148	)		—			(343	)
Recoveries of losses previously charged off		17			1			21			—			39
Provision for loan and lease losses		50			18			60			(15	)		113
Balance, end of period	$	1,764			268			452			130			2,614
For the six months ended June 30, 2011 ($ in millions)	Commercial			Residential Mortgage			Consumer			Unallocated			Total
Transactions in the ALLL:
Balance, beginning of period	$	1,989			310			555			150			3,004
Losses charged off		(334	)		(104	)		(302	)		—			(740	)
Recoveries of losses previously charged off		29			3			37			—			69
Provision for loan and lease losses		80			59			162			(20	)		281
Balance, end of period	$	1,764			268			452			130			2,614

The following tables provide a summary of the ALLL and related loans and leases classified by portfolio segment:

As of June 30, 2011 ($ in millions)	Commercial		Residential Mortgage		Consumer		Unallocated		Total
ALLL:(a)
Individually evaluated for impairment	$	245		126		74		—		445
Collectively evaluated for impairment		1,518		141		378		—		2,037
Loans acquired with deteriorated credit quality		1		1		—		—		2
Unallocated		—		—		—		130		130
Total ALLL	$	1,764		268		452		130		2,614
Loans and leases:(b)
Individually evaluated for impairment	$	1,181		1,220		589		—		2,990
Collectively evaluated for impairment		42,252		8,559		24,093		—		74,904
Loans acquired with deteriorated credit quality		3		11		—		—		14
Total portfolio loans and leases	$	43,436		9,790		24,682		—		77,908

(a) Includes $18 related to leverage leases.

(b) Excludes $59 of residential mortgage loans measured at fair value, and includes $1,015 of leveraged leases, net of unearned income.

			Residential
As of December 31, 2010 ($ in millions)	Commercial		Mortgage		Consumer		Unallocated		Total
ALLL:(a)
Individually evaluated for impairment	$	209		119		107		—		435
Collectively evaluated for impairment		1,779		189		448		—		2,416
Loans acquired with deteriorated credit quality		1		2		—		—		3
Unallocated		—		—		—		150		150
Total ALLL	$	1,989		310		555		150		3,004
Loans and leases:(b)
Individually evaluated for impairment	$	1,076		1,180		651		—		2,907
Collectively evaluated for impairment		42,382		7,718		24,414		—		74,514
Loans acquired with deteriorated credit quality		4		12		8		—		24
Total portfolio loans and leases	$	43,462		8,910		25,073		—		77,445

(a) Includes $15 related to leverage leases.

(b) Excludes $46 of residential mortgage loans measured at fair value, and includes $1,039 of leveraged leases, net of unearned income.

Summary of the Credit Risk Profile of the Bancorp's Commercial Portfolio Segment by Class

The following table summarizes the credit risk profile of the Bancorp’s commercial portfolio segment, by class:

			Special
As of June 30, 2011 ($ in millions)	Pass		Mention		Substandard		Doubtful		Total
Commercial and industrial loans	$	24,268		1,594		2,077		160		28,099
Commercial mortgage loans owner-occupied		3,995		430		779		25		5,229
Commercial mortgage loans nonowner-occupied		3,195		640		1,134		35		5,004
Commercial construction loans		948		303		473		54		1,778
Commercial leases		3,232		52		40		2		3,326
Total	$	35,638		3,019		4,503		276		43,436

			Special
December 31, 2010 ($ in millions)	Pass		Mention		Substandard		Doubtful		Total
Commercial and industrial loans	$	23,147		1,406		2,541		97		27,191
Commercial mortgage loans owner-occupied		4,034		430		854		22		5,340
Commercial mortgage loans nonowner-occupied		3,620		647		1,174		64		5,505
Commercial construction loans		1,034		416		540		58		2,048
Commercial leases		3,269		60		48		1		3,378
Total	$	35,104		2,959		5,157		242		43,462

Summary of the Credit Risk Profile of the Bancorp's Residential Mortgage and Consumer Portfolio Segments by Class

The following table summarizes the credit risk profile of the Bancorp’s residential mortgage and consumer portfolio segments, by class:

	June 30, 2011				December 31, 2010
($ in millions)	Performing		Nonperforming		Performing		Nonperforming
Residential mortgage loans(a)	$	9,518		272		8,642		268
Home equity		10,990		58		11,457		56
Automobile loans		11,312		3		10,980		3
Credit card		1,806		50		1,841		55
Other consumer loans and leases		460		3		597		84
Total	$	34,086		386		33,517		466

(a) Excludes $59 and $46 of loans measured at fair value at June 30, 2011 and December 31, 2010, respectively.

Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases

The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases by age and class:

			Past Due
As of June 30, 2011 ($ in millions)	Current Loans and Leases		30-89     Days		90 Days and Greater (c)		Total Past Due		Total Loans and Leases		90 Days Past Due and Still Accruing
Commercial:
Commercial and industrial loans	$	27,737		70		292		362		28,099		7
Commercial mortgage owner-occupied loans		5,064		41		124		165		5,229		8
Commercial mortgage nonowner-occupied loans		4,746		37		221		258		5,004		4
Commercial construction loans		1,556		40		182		222		1,778		48
Commercial leases		3,314		3		9		12		3,326		1
Residential mortgage loans(a) (b)		9,334		102		354		456		9,790		87
Consumer:
Home equity		10,775		130		143		273		11,048		84
Automobile loans		11,234		68		13		81		11,315		10
Credit card		1,755		28		73		101		1,856		30
Other consumer loans and leases		459		1		3		4		463		—
Total portfolio loans and leases(a)	$	75,974		520		1,414		1,934		77,908		279

(a) Excludes $59 of loans measured at fair value.

(b) Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of June 30, 2011, $28 of these loans were 30-89 days past due and $271 were 90 days or more past due.

(c) Includes accrual and nonaccrual loans and leases.

			Past Due
As of December 31, 2010 ($ in millions)	Current Loans and Leases		30-89     Days		90 Days    and Greater(c)		Total Past Due		Total Loans and Leases		90 Days Past Due and Still Accruing
Commercial:
Commercial and industrial loans	$	26,687		201		303		504		27,191		16
Commercial mortgage owner-occupied loans		5,151		50		139		189		5,340		8
Commercial mortgage nonowner-occupied loans		5,252		38		215		253		5,505		3
Commercial construction loans		1,831		72		145		217		2,048		3
Commercial leases		3,361		10		7		17		3,378		—
Residential mortgage loans(a) (b)		8,404		138		368		506		8,910		100
Consumer:
Home equity		11,220		148		145		293		11,513		89
Automobile loans		10,872		96		15		111		10,983		13
Credit card		1,771		35		90		125		1,896		42
Other consumer loans and leases		672		3		6		9		681		—
Total portfolio loans and leases(a)	$	75,221		791		1,433		2,224		77,445		274

(a) Excludes $46 of loans measured at fair value.

(b) Information for current residential mortgage loans includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. As of December 31, 2010 $55 of these loans were 30-89 days past due and $284 were 90 days or more past due.

(c) Includes accrual and nonaccrual loans and leases.

Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class

The following table summarizes the Bancorp’s impaired loans and leases by class:

	Unpaid
As of June 30, 2011	Principal		Recorded
($ in millions)	Balance		Investment		Allowance
With a related allowance recorded:
Commercial:
Commercial and industrial loans	$	414		394		184
Commercial mortgage owner-occupied loans		49		38		5
Commercial mortgage nonowner-occupied loans		208		162		30
Commercial construction loans		207		156		19
Commercial leases		12		19		8
Restructured residential mortgage loans		1,101		1,053		127
Restructured consumer:
Home equity		392		389		50
Automobile loans		36		36		5
Credit card		105		96		18
Other consumer loans and leases		5		5		1
Total impaired loans with a related allowance	$	2,529		2,348		447
With no related allowance recorded:
Commercial:
Commercial and industrial loans	$	210		155		—
Commercial mortgage owner-occupied loans		60		83		—
Commercial mortgage nonowner-occupied loans		148		139		—
Commercial construction loans		70		34		—
Commercial leases		4		4		—
Restructured residential mortgage loans		221		178		—
Restructured consumer:
Home equity		62		59		—
Automobile loans		4		4		—
Total impaired loans with no related allowance	$	779		656		—

The following table summarizes the Bancorp’s impaired loans and leases by class as of December 31, 2010:

	Unpaid
As of December 31, 2010	Principal		Recorded
($ in millions)	Balance		Investment		Allowance
With a related allowance recorded:
Commercial:
Commercial and industrial loans	$	404		291		128
Commercial mortgage owner-occupied loans		49		37		4
Commercial mortgage nonowner-occupied loans		386		202		40
Commercial construction loans		240		150		31
Commercial leases		15		15		7
Restructured residential mortgage loans		1,126		1,071		121
Restructured consumer:
Home equity		400		397		53
Automobile loans		33		32		5
Credit card		100		100		18
Other consumer loans and leases		78		78		31
Total impaired loans with a related allowance	$	2,831		2,373		438
With no related allowance recorded:
Commercial:
Commercial and industrial loans	$	194		153		—
Commercial mortgage owner-occupied loans		113		99		—
Commercial mortgage nonowner-occupied loans		126		108		—
Commercial construction loans		24		8		—
Commercial leases		17		17		—
Restructured residential mortgage loans		146		121		—
Restructured consumer:
Home equity		48		46		—
Automobile loans		6		6		—
Total impaired loans with no related allowance	$	674		558		—

Summarizes the Bancorp's Average Impaired Loans and Leases and Interest Income by Class

The following table summarizes the Bancorp’s average impaired loans and leases and interest income by class for the three and six months ended June 30, 2011:

	For the three months  ended June 30, 2011				For the six months ended June 30, 2011
($ in millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial:
Commercial and industrial loans	$	521		12		495		25
Commercial mortgage owner-occupied loans		121		5		126		10
Commercial mortgage nonowner-occupied loans		280		8		290		16
Commercial construction loans		197		6		183		11
Commercial leases		19		—		23		—
Restructured residential mortgage loans		1,222		11		1,209		21
Restructured consumer:
Home equity		440		11		444		17
Automobile loans		40		1		39		1
Credit card		100		1		98		2
Other consumer loans and leases		40		—		56		—
Total impaired loans	$	2,980		55		2,963		103

Summarizes the Total Nonperforming and Delinquent Assets

The following table summarizes the Bancorp’s nonperforming assets as of:

	June 30,		December 31,		June 30,
($ in millions)	2011		2010		2010
Nonaccrual loans and leases	$	1,240		1,333		2,236
Restructured nonaccrual loans and leases		399		347		294
Total nonperforming loans and leases		1,639		1,680		2,530
OREO and other repossessed property(a)		449		494		439
Total nonperforming assets(b)		2,088		2,174		2,969
Total loans and leases 90 days past due and still accruing	$	279		274		397

(a) Excludes $54, $38 and $30 of OREO related to government insured loans at June 30, 2011, December 31, 2010 and June 30, 2010, respectively.

(b) Excludes $176, $294 and $167 of nonaccrual loans held for sale at June 30, 2011, December 31, 2010 and June 30, 2010, respectively.

Summary of the Bancorp's Nonperforming Loans and Leases by Class

The following table summarizes the Bancorp’s nonperforming loans and leases, by class, as of:

	June 30,		December 31,
($ in millions)	2011		2010
Commercial:
Commercial and industrial loans	$	607		568
Commercial mortgage owner-occupied loans		286		168
Commercial mortgage nonowner-occupied loans		178		267
Commercial construction loans		160		192
Commercial leases		22		19
Total commercial loans and leases		1,253		1,214
Residential mortgage loans		272		268
Consumer:
Home equity		58		56
Automobile loans		3		3
Credit card		50		55
Other consumer loans and leases		3		84
Total consumer loans and leases		114		198
Total nonperforming loans and leases(a)	$	1,639		1,680

(a) Excludes $176 and $294 of nonaccrual loans held for sale at June 30, 2011 and December 31, 2010, respectively.