The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument's fair value measurement. The three levels within the fair value hierarchy are described as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Bancorp has the ability to access at the measurement date.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data by correlation or other means.

Level 3 – Unobservable inputs for the asset or liability for which there is little, if any, market activity at the measurement date. Unobservable inputs reflect the Bancorp's own assumptions about what market participants would use to price the asset or liability. The inputs are developed based on the best information available in the circumstances, which might include the Bancorp's own financial data such as internally developed pricing models, discounted cash flow methodologies, as well as instruments for which the fair value determination requires significant management judgment.

The following tables summarize assets and liabilities measured at fair value on a recurring basis, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of:

	Fair Value Measurements Using
September 30, 2011 ($ in millions)		Level 1	Level 2	Level 3	Total Fair Value
Assets:
Available-for-sale securities:
U.S. Treasury and Government agencies	$	202	-	-	202
U.S. Government sponsored agencies		-	1,990	-	1,990
Obligations of states and political subdivisions		-	105	-	105
Agency mortgage-backed securities		-	11,017	-	11,017
Other bonds, notes and debentures		-	1,573	-	1,573
Other securities^(a)		491	7	-	498
Available-for-sale securities^(a)		693	14,692	-	15,385

Trading securities:
Obligations of states and political subdivisions		-	11	1	12
Agency mortgage-backed securities		-	20	-	20
Other bonds, notes and debentures		-	15	-	15
Other securities		142	-	-	142
Trading securities		142	46	1	189

Residential mortgage loans held for sale		-	1,593	-	1,593
Residential mortgage loans^(b)		-	-	62	62
Derivative assets:
Interest rate contracts		3	1,872	39	1,914
Foreign exchange contracts		-	471	-	471
Equity contracts		-	-	103	103
Commodity contracts		-	112	-	112
Derivative assets		3	2,455	142	2,600
Total assets	$	838	18,786	205	19,829

Liabilities:
Derivative liabilities
Interest rate contracts	$	59	862	2	923
Foreign exchange contracts		-	447	-	447
Equity contracts		-	-	30	30
Commodity contracts		-	105	-	105
Derivative liabilities		59	1,414	32	1,505

Short positions		7	1	-	8
Total liabilities	$	66	1,415	32	1,513

	Fair Value Measurements Using
December 31, 2010 ($ in millions)		Level 1	Level 2	Level 3	Total Fair Value
Assets:
Available-for-sale securities:
U.S. Treasury and Government agencies	$	230	-	-	230
U.S. Government sponsored agencies		-	1,645	-	1,645
Obligations of states and political subdivisions		-	172	-	172
Agency mortgage-backed securities		-	10,973	-	10,973
Other bonds, notes and debentures		-	1,342	-	1,342
Other securities^(a)		180	4	-	184
Available-for-sale securities^(a)		410	14,136	-	14,546

Trading securities:
U.S. Treasury and Government agencies		1	-	-	1
Obligations of states and political subdivisions		-	20	1	21
Agency mortgage-backed securities		-	8	-	8
Other bonds, notes and debentures		-	115	5	120
Other securities		47	97	-	144
Trading securities		48	240	6	294

Residential mortgage loans held for sale		-	1,892	-	1,892
Residential mortgage loans^(b)		-	-	46	46
Derivative assets:
Interest rate contracts		90	1,448	13	1,551
Foreign exchange contracts		-	343	-	343
Equity contracts		-	-	81	81
Commodity contracts		-	99	-	99
Derivative assets		90	1,890	94	2,074
Total assets	$	548	18,158	146	18,852

Liabilities:
Derivative liabilities
Interest rate contracts	$	14	846	11	871
Foreign exchange contracts		-	323	-	323
Equity contracts		-	-	28	28
Commodity contracts		-	92	-	92
Derivative liabilities		14	1,261	39	1,314

Short positions		1	1	-	2
Total liabilities	$	15	1,262	39	1,316

	Fair Value Measurements Using
September 30, 2010 ($ in millions)		Level 1	Level 2	Level 3	Total Fair Value
Assets:
Available-for-sale securities:
U.S. Treasury and Government agencies	$	311	-	-	311
U.S. Government sponsored agencies		-	1,851	-	1,851
Obligations of states and political subdivisions		-	195	-	195
Agency mortgage-backed securities		-	11,347	-	11,347
Other bonds, notes and debentures		-	1,018	-	1,018
Other securities^(a)		353	6	-	359
Available-for-sale securities^(a)		664	14,417	-	15,081

Trading securities:
Obligations of states and political subdivisions		-	50	1	51
Agency mortgage-backed securities		-	15	-	15
Other bonds, notes and debentures		-	133	4	137
Other securities		43	74	-	117
Trading securities		43	272	5	320

Residential mortgage loans held for sale		-	1,879	-	1,879
Residential mortgage loans^(b)		-	-	42	42
Derivative assets:
Interest rate contracts		3	2,045	39	2,087
Foreign exchange contracts		-	273	-	273
Equity contracts		-	-	77	77
Commodity contracts		-	105	-	105
Derivative assets		3	2,423	116	2,542
Total assets	$	710	18,991	163	19,864

Liabilities:
Derivative liabilities
Interest rate contracts	$	32	1,011	2	1,045
Foreign exchange contracts		-	249	-	249
Equity contracts		-	-	57	57
Commodity contracts		-	97	-	97
Derivative liabilities		32	1,357	59	1,448

Short positions		6	1	-	7
Total liabilities	$	38	1,358	59	1,455

(a) Excludes FHLB and FRB restricted stock totaling $497 and $345, respectively, at September 30, 2011, $524 and $344 at December 31, 2010, and $551 and $343, respectively, at September 30, 2010.

(b) Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.

The following is a description of the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy. Residential mortgage loans held for sale that are reclassified to held for investment are transferred from Level 2 to Level 3 of the fair value hierarchy as described below. It is the Bancorp's policy to value any transfers between levels of the fair value hierarchy based on end of period fair values.

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include government bonds and exchange traded equities. If quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Examples of such instruments, which are classified within Level 2 of the valuation hierarchy, include agency and non-agency mortgage-backed securities, other asset-backed securities, obligations of U.S. Government sponsored agencies, and corporate and municipal bonds. Agency mortgage-backed securities, obligations of U.S. Government sponsored agencies, and corporate and municipal bonds are generally valued using a market approach based on observable prices of securities with similar characteristics.

Non-agency mortgage-backed securities and other asset-backed securities are generally valued using an income approach based on discounted cash flows, incorporating prepayment speeds, performance of underlying collateral and specific tranche-level attributes. In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Trading securities classified as Level 3 consist of auction rate securities. Due to the illiquidity in the market for these types of securities at September 30, 2011, December 31, 2010 and September 30, 2010, the Bancorp measured fair value using a discount rate based on the assumed holding period.

For residential mortgage loans held for sale, fair value is estimated based upon mortgage-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticipated portfolio composition includes the effect of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. Residential mortgage loans held for sale that are valued based on mortgage backed securities prices are classified within Level 2 of the valuation hierarchy as the valuation is based on external pricing for similar instruments. ARM loans classified as held for sale are also classified within Level 2 of the valuation hierarchy due to the use of observable inputs in the DCF model. These observable inputs include interest rate spreads from agency mortgage-backed securities market rates and observable discount rates. For residential mortgage loans reclassified from held for sale to held for investment, the fair value estimation is based primarily on the underlying collateral values. Therefore, these loans are classified within Level 3 of the valuation hierarchy.

Exchange-traded derivatives valued using quoted prices and certain over-the-counter derivatives valued using active bids are classified within Level 1 of the valuation hierarchy. Most derivative contracts are valued using discounted cash flow or other models that incorporate current market interest rates, credit spreads assigned to the derivative counterparties and other market parameters and, therefore, are classified within Level 2 of the valuation hierarchy. Such derivatives include basic and structured interest rate swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy. At September 30, 2011, derivatives classified as Level 3, which are valued using an option-pricing model containing unobservable inputs, consisted primarily of warrants and put rights associated with the sale of Vantiv, LLC to Advent International and a total return swap associated with the Bancorp's sale of Visa, Inc. Class B shares. Level 3 derivatives also include interest rate lock commitments, which utilize internally generated loan closing rate assumptions as a significant unobservable input in the valuation process.

In connection with the sale of Vantiv, LLC, the Bancorp provided Advent International with certain put options that are exercisable in the event of certain circumstances. In addition, the associated warrants allow the Bancorp to purchase an incremental 10% nonvoting interest in Vantiv, LLC under certain defined conditions involving change of control. The fair values of the warrants and put options are calculated applying Black-Scholes option valuation models using probability weighted scenarios. The assumptions utilized in the models are summarized in the following table as of:

	September 30, 2011							December 31, 2010								September 30, 2010
	Warrants				Put Options (b)			Warrants				Put Options				Warrants				Put Options
Expected term (years)	7.8	-	17.8			2.3		8.5	-	18.5		0.5	-	3.0		8.8	-	18.8		0.8	-	3.3
Expected volatility^(a)	35.7	-	35.9	%		33.0	%	36.0	-	37.0	%	25.6	-	44.6	%	36.5	-	38.0	%	31.1	-	45.4	%
Risk free rate	1.65	-	2.97	%		0.35	%	3.06	-	4.18	%	0.23	-	1.05	%	2.44	-	3.42	%	0.22	-	0.71	%
Expected dividend rate			0	%		0	%			0	%			0	%			0	%			0	%

Under the terms of the total return swap, the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Visa Class B shares into Class A shares. The fair value of the total return swap was calculated using a discounted cash flow model based on unobservable inputs consisting of management's estimate of the probability of certain litigation scenarios, timing of litigation settlements and payments related to the swap.

The net fair value of the interest rate lock commitments at September 30, 2011 was $37 million. At September 30, 2011, immediate decreases in current interest rates of 25 bp and 50 bp would result in increases in the fair value of the interest rate lock commitments of $22 million and $40 million, respectively. Immediate increases of current interest rates of 25 bp and 50 bp would result in decreases in the fair value of the interest rate lock commitments of $28 million and $59 million, respectively, at September 30, 2011. The decrease in fair value of interest rate lock commitments at September 30, 2011 due to immediate 10% and 20% adverse changes in the assumed loan closing rates would be $4 million and $8 million, respectively, and the increase in fair value due to immediate 10% and 20% favorable changes in the assumed loan closing rates would be $4 million and $8 million, respectively. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear.

The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Residential	Interest Rate	Equity
For the three months ended September 30, 2011		Trading	Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Securities	Loans	Net^(a)	Net^(a)	Fair Value
Beginning balance	$	1	59	5	85	150
Total gains or losses (realized/unrealized):
Included in earnings		-	3	100	(14)	89
Purchases		-	-	-	2	2
Settlements		-	(2)	(68)	-	(70)
Transfers into Level 3^(b)		-	2	-	-	2
Ending balance	$	1	62	37	73	173
The amount of total gains or losses for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at September 30, 2011^(c)	$	-	3	37	(14)	26

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Residential	Interest Rate	Equity
For the three months ended September 30, 2010		Trading	Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Securities	Loans	Net^(a)	Net^(a)	Fair Value
Beginning balance	$	5	41	24	30	100
Total gains or losses (realized/unrealized):
Included in earnings		-	-	102	(10)	92
Purchases, sales, issuances, and settlements, net		-	(2)	(89)	-	(91)
Transfers into Level 3^(b)		-	3	-	-	3
Ending balance	$	5	42	37	20	104
The amount of total gains or losses for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at September 30, 2010^(c)	$	-	-	35	(10)	25

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Residential	Interest Rate	Equity
For the nine months ended September 30, 2011		Trading	Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Securities	Loans	Net^(a)	Net^(a)	Fair Value
Beginning balance	$	6	46	2	53	107
Total gains or losses (realized/unrealized):
Included in earnings		-	4	154	-	158
Purchases		-	-	-	2	2
Sales		(5)	-	-	-	(5)
Settlements		-	(5)	(119)	18	(106)
Transfers into Level 3^(b)		-	17	-	-	17
Ending balance	$	1	62	37	73	173
The amount of total gains or losses for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at September 30, 2011^(c)	$	-	4	41	-	45

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
		Residual		Residential	Interest Rate	Equity
For the nine months ended September 30, 2010		Interests in	Trading	Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Securitizations	Securities	Loans	Net^(a)	Net^(a)	Fair Value
Beginning balance	$	174	13	26	(2)	11	222
Total gains or losses (realized/unrealized):
Included in earnings		-	3	-	210	(11)	202
Purchases, sales, issuances, and settlements, net		(174)^(d)	(11)	(2)	(171)	20	(338)
Transfers into Level 3^(b)		-	-	18	-	-	18
Ending balance	$	-	5	42	37	20	104
The amount of total gains or losses for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at September 30, 2010^(c)	$	-	-	-	61	(11)	50

(a) Net interest rate derivatives include derivative assets and liabilities of $39 and $2 respectively, as of September 30, 2011 and $39 and $2, respectively, as of September 30, 2010. Net equity derivatives include derivative assets and liabilities of $103 and $30, respectively, as of September 30, 2011, and $77 and $57, respectively, as of September 30, 2010.

(b) Includes residential mortgage loans held for sale that were transferred to held for investment.

(d) Due to a change in U.S. GAAP adopted by the Bancorp on January 1, 2010, all residual interests in securitizations were eliminated concurrent with the consolidation of the related VIEs.

The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Condensed Consolidated Statements of Income as follows:

		For the three months		For the nine months
		ended September 30,		ended September 30,
($ in millions)		2011	2010	2011	2010
Mortgage banking net revenue	$	104	101	159	210
Corporate banking revenue		-	1	1	1
Other noninterest income		(15)	(10)	(2)	(12)
Securities gains (losses), net		-	-	-	3
Total	$	89	92	158	202

The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at September 30, 2011 and 2010 were recorded in the Condensed Consolidated Statements of Income as follows:

Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The following tables represent those assets and liabilities that were subject to fair value adjustments during the quarters ended September 30, 2011 and 2010 and still held as of the end of the period, and the related losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period.

		Fair Value Measurements Using				Total Losses
						Three Months Ended	Nine Months Ended
September 30, 2011 ($ in millions)		Level 1	Level 2	Level 3	Total	September 30, 2011	September 30, 2011
Commercial loans held for sale^(a)	$	-	-	60	60	(23)	(48)
Commercial and industrial loans		-	-	155	155	(84)	(283)
Commercial mortgage loans		-	-	145	145	(46)	(99)
Commercial construction loans		-	-	59	59	(14)	(52)
MSRs		-	-	662	662	(201)	(228)
OREO property		-	-	181	181	(30)	(139)
Total	$	-	-	1,262	1,262	(398)	(849)

		Fair Value Measurements Using				Total Losses
						Three Months Ended	Nine Months Ended
September 30, 2010 ($ in millions)		Level 1	Level 2	Level 3	Total	September 30, 2010	September 30, 2010
Commercial loans held for sale^(a)	$	33	-	541	574	(398)	(413)
Commercial and industrial loans		-	-	122	122	(112)	(373)
Commercial mortgage loans		-	-	94	94	(52)	(184)
Commercial construction loans		-	-	45	45	(44)	(152)
Residential mortgage loans		-	-	3	3	(6)	(6)
Other consumer loans		-	71	10	81	(12)	(12)
MSRs		-	-	599	599	(83)	(189)
OREO property		-	-	254	254	(102)	(196)
Total	$	33	71	1,668	1,772	(809)	(1,525)

During the third quarter of 2011, the Bancorp transferred $57 million of commercial loans from the portfolio to loans held for sale that were measured at fair value. These loans had fair value adjustments totaling $17 million and were based on discounted cash flow models incorporating appraisals of the underlying collateral, as well as assumptions about investor return requirements and amounts and timing of expected cash flows, and were therefore, classified within Level 3 of the valuation hierarchy. Additionally, during the third quarter of 2011, existing commercial loans held for sale with a fair value of $3 million were further adjusted using the same methodology as loans transferred to held for sale. Therefore, these loans were classified within Level 3 of the valuation hierarchy.

During the three and nine months ended September 30, 2011 and 2010, the Bancorp recorded nonrecurring impairment adjustments to certain commercial and industrial, commercial mortgage and commercial construction loans held for investment. Such amounts are generally based on the fair value of the underlying collateral supporting the loan and were classified within Level 3 of the valuation hierarchy. In cases where the carrying value exceeds the fair value, an impairment loss is recognized. The fair values and recognized impairment losses are reflected in the previous table.

During the three and nine months ended September 30, 2011, the Bancorp recognized temporary impairments in certain classes of the MSR portfolio in which the carrying value was adjusted to fair value as of September 30, 2011 and 2010. MSRs do not trade in an active, open market with readily observable prices. While sales of MSRs do occur, the precise terms and conditions typically are not readily available. Accordingly, the Bancorp estimates the fair value of MSRs using discounted cash flow models with certain unobservable inputs, primarily prepayment speed assumptions, resulting in a classification within Level 3 of the valuation hierarchy. Refer to Note 10 for further information on the Bancorp's MSRs.

During the three and nine months ended September 30, 2011 and 2010, the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO and measured at the lower of carrying amount or fair value, less costs to sell. Nonrecurring losses included in the above table are primarily due to declines in real estate values of the OREO properties. These losses include both new OREO properties transferred from loans during the period and those remaining in inventory from the prior period. Such fair value amounts are generally based on appraisals of the property values, resulting in a classification within Level 3 of the valuation hierarchy. In cases where the carrying amount exceeds the fair value, less costs to sell, an impairment loss is recognized. The previous tables reflect the fair value measurements of the properties before deducting the estimated costs to sell.

The Bancorp elected to measure certain residential mortgage loans held for sale under the fair value option as allowed under U.S. GAAP. Management's intent to sell residential mortgage loans classified as held for sale may change over time due to such factors as changes in the overall liquidity in markets or changes in characteristics specific to certain loans held for sale. Consequently, these loans may be reclassified to loans held for investment and maintained in the Bancorp's loan portfolio. In such cases, the loans will continue to be measured at fair value. Residential loans with fair values of $2 million and $3 million were transferred to the Bancorp's portfolio during the three months ended September 30, 2011 and 2010, respectively. Residential loans with fair values of $17 million and $18 million were transferred to the Bancorp's portfolio during the nine months ended September 30, 2011 and 2010, respectively. The net impact related to fair value adjustments on these loans was $3 million and $4 million, respectively, during the three and nine months ended September 30, 2011 and immaterial during the three and nine months ended September 30, 2010.

Fair value changes included in earnings for instruments for which the fair value option was elected included losses of $24 million and $84 million during the three months ended September 30, 2011 and 2010, respectively. Fair value changes included in earnings for instruments for which the fair value option was elected included losses of $64 million and $112 million during the nine months ended September 30, 2011 and 2010, respectively. These losses are reported in mortgage banking net revenue in the Condensed Consolidated Statements of Income.

Valuation adjustments related to instrument-specific credit risk for residential mortgage loans measured at fair value negatively impacted the fair value of those loans by $3 million at September 30, 2011, $5 million at December 31, 2010 and $4 million at September 30, 2010. Interest on residential mortgage loans measured at fair value is accrued as it is earned using the effective interest method and is reported as interest income in the Condensed Consolidated Statements of Income.

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential mortgage loans measured at fair value as of:

($ in millions)		Fair Value	Principal Balance	Difference
September 30, 2011
Residential mortgage loans measured at fair value	$	1,655	1,578	77
Past due loans of 90 days or more		4	4	-
Nonaccrual loans		-	-	-

December 31, 2010
Residential mortgage loans measured at fair value	$	1,938	1,913	25
Past due loans of 90 days or more		5	6	(1)
Nonaccrual loans		1	1	-

September 30, 2010
Residential mortgage loans measured at fair value	$	1,921	1,832	89
Past due loans of 90 days or more		5	6	(1)
Nonaccrual loans		1	1	-

The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis.

		Carrying
As of September 30, 2011 ($ in millions)		Amount	Fair Value
Financial assets:
Cash and due from banks	$	2,348	2,348
Other securities		842	842
Held-to-maturity securities		337	337
Other short-term investments		2,028	2,028
Loans held for sale		247	247
Portfolio loans and leases:
Commercial and industrial loans		28,245	29,538
Commercial mortgage loans		9,857	9,167
Commercial construction loans		1,134	889
Commercial leases		3,284	3,131
Residential mortgage loans^(a)		9,954	9,516
Home equity		10,711	9,765
Automobile loans		11,536	11,575
Credit card		1,759	1,831
Other consumer loans and leases		384	430
Unallocated allowance for loan and lease losses		(149)	-
Total portfolio loans and leases, net^(a)		76,715	75,842
Financial liabilities:
Deposits		82,047	82,196
Federal funds purchased		427	427
Other short-term borrowings		4,894	4,894
Long-term debt		9,800	10,199

(a) Excludes $62 of residential mortgage loans measured at fair value on a recurring basis.

		Carrying
As of December 31, 2010 ($ in millions)		Amount	Fair Value
Financial assets:
Cash and due from banks	$	2,159	2,159
Other securities		868	868
Held-to-maturity securities		353	353
Other short-term investments		1,515	1,515
Loans held for sale		324	324
Portfolio loans and leases:
Commercial and industrial loans		26,068	27,322
Commercial mortgage loans		10,248	9,513
Commercial construction loans		1,890	1,471
Commercial leases		3,267	2,934
Residential mortgage loans^(a)		8,600	7,577
Home equity		11,248	9,366
Automobile loans		10,910	10,975
Credit card		1,738	1,786
Other consumer loans and leases		622	682
Unallocated allowance for loan and lease losses		(150)	-
Total portfolio loans and leases, net^(a)		74,441	71,626
Financial liabilities:
Deposits		81,648	81,860
Federal funds purchased		279	279
Other short-term borrowings		1,574	1,574
Long-term debt		9,558	9,921

(a) Excludes $46 of residential mortgage loans measured at fair value on a recurring basis.

		Carrying
As of September 30, 2010 ($ in millions)		Amount	Fair Value
Financial assets:
Cash and due from banks	$	2,215	2,215
Other securities		894	894
Held-to-maturity securities		354	354
Other short-term investments		3,271	3,271
Loans held for sale		854	854
Portfolio loans and leases:
Commercial and industrial loans		25,080	26,481
Commercial mortgage loans		10,328	9,745
Commercial construction loans		2,131	1,742
Commercial leases		3,198	2,957
Residential mortgage loans^(a)		7,637	7,009
Home equity		11,513	9,450
Automobile loans		10,654	10,919
Credit card		1,664	1,721
Other consumer loans and leases		729	750
Unallocated allowance for loan and lease losses		(161)	-
Total portfolio loans and leases, net^(a)		72,773	70,774
Financial liabilities:
Deposits		81,362	81,648
Federal funds purchased		368	368
Other short-term borrowings		1,775	1,775
Long-term debt		10,953	11,374

(a) Excludes $42 of residential mortgage loans measured at fair value on a recurring basis.

Cash and due from banks, other securities, other short-term investments, deposits, federal funds purchased and other short-term borrowings

For financial instruments with a short-term or no stated maturity, prevailing market rates and limited credit risk, carrying amounts approximate fair value. Those financial instruments include cash and due from banks, FHLB and FRB restricted stock, other short-term investments, certain deposits (demand, interest checking, savings, money market and foreign office deposits), and federal funds purchased. Fair values for other time deposits, certificates of deposit $100,000 and over and other short-term borrowings were estimated using a discounted cash flow calculation that applied prevailing LIBOR/swap interest rates for the same maturities.

The Bancorp's held-to-maturity securities are primarily composed of instruments that provide income tax credits as the economic return on the investment. The fair value of these instruments is estimated based on current U.S. Treasury tax credit rates.

Fair values for commercial loans held for sale were valued based on executable bids when available, or on discounted cash flow models incorporating appraisals of the underlying collateral, as well as assumptions about investor return requirements and amounts and timing of expected cash flows. Fair values for other consumer loans held for sale are based on contractual values upon which the loans may be sold to a third party, and approximate their carrying value.

Fair values were estimated by discounting future cash flows using the current market rates of loans to borrowers with similar credit characteristics and similar remaining maturities.

Fair value of long-term debt was based on quoted market prices, when available, or a discounted cash flow calculation using LIBOR/swap interest rates and, in some cases, a spread for new issues for borrowings of similar terms.