The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and leases are further disaggregated by class.

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

For the year ended December 31, 2012				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance at January 1	$	1,527	227	365	136	2,255
	Losses charged off		(358)	(129)	(350)	-	(837)
	Recoveries of losses previously charged off		61	7	65	-	133
	Provision for loan and lease losses		6	124	198	(25)	303
Balance at December 31		$	1,236	229	278	111	1,854

For the year ended December 31, 2011				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance at January 1	$	1,989	310	555	150	3,004
	Losses charged off		(615)	(180)	(519)	-	(1,314)
	Recoveries of losses previously charged off		61	7	74	-	142
	Provision for loan and lease losses		92	90	255	(14)	423
Balance at December 31		$	1,527	227	365	136	2,255

For the year ended December 31, 2010				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance at January 1	$	2,517	375	664	193	3,749
	Losses charged off		(1,444)	(441)	(600)	-	(2,485)
	Recoveries of losses previously charged off		80	2	75	-	157
	Provision for loan and lease losses		836	374	371	(43)	1,538
	Impact of change in accounting principle		-	-	45	-	45
Balance at December 31		$	1,989	310	555	150	3,004

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

				Residential
As of December 31, 2012 ($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	95	137	62	-	294
	Collectively evaluated for impairment		1,140	91	216	-	1,447
	Loans acquired with deteriorated credit quality		1	1	-	-	2
	Unallocated		-	-	-	111	111
Total ALLL		$	1,236	229	278	111	1,854
Loans and leases:^(b)
	Individually evaluated for impairment	$	980	1,298	544	-	2,822
	Collectively evaluated for impairment		48,407	10,637	23,833	-	82,877
	Loans acquired with deteriorated credit quality		1	6	-	-	7
Total portfolio loans and leases		$	49,388	11,941	24,377	-	85,706

				Residential
As of December 31, 2011 ($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	155	130	65	-	350
	Collectively evaluated for impairment		1,371	96	300	-	1,767
	Loans acquired with deteriorated credit quality		1	1	-	-	2
	Unallocated		-	-	-	136	136
Total ALLL		$	1,527	227	365	136	2,255
Loans and leases:^(b)
	Individually evaluated for impairment	$	1,170	1,258	574	-	3,002
	Collectively evaluated for impairment		44,299	9,341	24,300	-	77,940
	Loans acquired with deteriorated credit quality		3	8	-	-	11
Total portfolio loans and leases		$	45,472	10,607	24,874	-	80,953

For purposes of monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leasing.

To facilitate the monitoring of credit quality within the commercial portfolio segment, and for purposes of analyzing historical loss rates used in the determination of the ALLL for the commercial portfolio segment, the Bancorp utilizes the following categories of credit grades: pass, special mention, substandard, doubtful or loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter.

The Bancorp assigns a special mention rating to loans and leases that have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or lease or the Bancorp's credit position.

The Bancorp assigns a substandard rating to loans and leases that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans and leases have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Bancorp will sustain some loss if the deficiencies noted are not addressed and corrected.

The Bancorp assigns a doubtful rating to loans and leases that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans.

Loans and leases classified as loss are considered uncollectible and are charged off in the period in which they are determined to be uncollectible. Because loans and leases in this category are fully charged down, they are not included in the following tables.


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

			Special
As of December 31, 2012 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	33,521	1,113	1,379	25	36,038
Commercial mortgage loans owner-occupied		3,934	338	603	1	4,876
Commercial mortgage loans nonowner-occupied		2,958	449	815	5	4,227
Commercial construction loans		444	59	195	-	698
Commercial leases		3,483	48	18	-	3,549
Total	$	44,340	2,007	3,010	31	49,388

			Special
As of December 31, 2011 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	27,199	1,641	1,831	112	30,783
Commercial mortgage loans owner-occupied		3,893	567	778	28	5,266
Commercial mortgage loans nonowner-occupied		3,328	521	984	39	4,872
Commercial construction loans		343	235	413	29	1,020
Commercial leases		3,434	52	44	1	3,531
Total	$	38,197	3,016	4,050	209	45,472

For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, automobile loans, credit card, and other consumer loans and leases. The Bancorp's residential mortgage portfolio segment is also a separate class.

The Bancorp considers repayment performance as the best indicator of credit quality for residential mortgage and consumer loans, which includes both the delinquency status and performing versus nonperforming status of the loans. The delinquency status of all residential mortgage and consumer loans is presented by class in the age analysis section below while the performing versus nonperforming status is presented in the table below. Residential mortgage loans that have principal and interest payments that have become past due 150 days and home equity loans with principal and interest payments that have become past due 180 days are classified as nonperforming unless such loans are both well secured and in the process of collection. Residential mortgage, home equity, automobile and other consumer loans and leases that have been modified in a TDR and subsequently become past due 90 days are classified as nonperforming, unless the loan is both well secured and in the process of collection. Credit card loans that have been modified in a TDR are classified as nonperforming unless such loans have a sustained repayment performance of six months or greater and are reasonably assured of repayment in accordance with the restructured terms. Well secured loans are collateralized by perfected security interests in real and/or personal property for which the Bancorp estimates proceeds from sale would be sufficient to recover the outstanding principal and accrued interest balance of the loan and pay all costs to sell the collateral. The Bancorp considers a loan in the process of collection if collection efforts or legal action is proceeding and the Bancorp expects to collect funds sufficient to bring the loan current or recover the entire outstanding principal and accrued interest balance.

The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments disaggregated into performing versus nonperforming status as of December 31:

		2012		2011
($ in millions)		Performing	Nonperforming	Performing	Nonperforming
Residential mortgage loans^(a)	$	11,704	237	10,332	275
Home equity		9,965	53	10,665	54
Automobile loans		11,970	2	11,825	2
Credit card		2,058	39	1,930	48
Other consumer loans and leases		289	1	349	1
Total	$	35,986	332	35,101	380

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

				Past Due
			Current		90 Days			90 Days Past
As of December 31, 2012			Loans and	30-89	and	Total	Total Loans	Due and Still
($ in millions)			Leases^(c)	Days^(c)	Greater^(c)	Past Due	and Leases	Accruing
Commercial:
	Commercial and industrial loans	$	35,826	46	166	212	36,038	1
	Commercial mortgage owner-occupied loans		4,752	29	95	124	4,876	22
	Commercial mortgage nonowner-occupied loans		4,094	21	112	133	4,227	0
	Commercial construction loans		622	0	76	76	698	1
	Commercial leases		3,546	2	1	3	3,549	0
Residential mortgage loans^(a)(b)			11,547	87	307	394	11,941	75
	Home equity		9,782	126	110	236	10,018	58
	Automobile loans		11,900	62	10	72	11,972	8
	Credit card		2,025	38	34	72	2,097	30
	Other consumer loans and leases		287	2	1	3	290	0
Total portfolio loans and leases^(a)(d)		$	84,381	413	912	1,325	85,706	195

				Past Due
			Current		90 Days			90 Days Past
As of December 31, 2011			Loans and	30-89	and	Total	Total Loans	Due and Still
($ in millions)			Leases^(c)	Days^(c)	Greater^(c)	Past Due	and Leases	Accruing
Commercial:
	Commercial and industrial loans	$	30,493	49	241	290	30,783	4
	Commercial mortgage owner-occupied loans		5,088	62	116	178	5,266	1
	Commercial mortgage nonowner-occupied loans		4,649	41	182	223	4,872	2
	Commercial construction loans		887	12	121	133	1,020	1
	Commercial leases		3,521	4	6	10	3,531	0
Residential mortgage loans^(a)(b)			10,149	110	348	458	10,607	79
Consumer:
	Home equity		10,455	136	128	264	10,719	74
	Automobile loans		11,744	71	12	83	11,827	9
	Credit card		1,873	33	72	105	1,978	30
	Other consumer loans and leases		348	1	1	2	350	0
Total portfolio loans and leases^(a)(d)		$	79,207	519	1,227	1,746	80,953	200

Larger commercial loans included within aggregate borrower relationship balances exceeding $1 million that exhibit probable or observed credit weaknesses are subject to individual review for impairment. The Bancorp also performs an individual review on loans that are restructured in a troubled debt restructuring. The Bancorp considers the current value of collateral, credit quality of any guarantees, the loan structure, and other factors when evaluating whether an individual loan is impaired. Other factors may include the geography and industry of the borrower, size and financial condition of the borrower, cash flow and leverage of the borrower, and the Bancorp's evaluation of the borrower's management. Smaller balance homogenous loans that are collectively evaluated for impairment are not included in the following tables.

The following table summarizes the Bancorp’s impaired loans and leases (by class) that were subject to individual review as of December 31, 2012:

			Unpaid
As of December 31, 2012			Principal	Recorded
($ in millions)			Balance	Investment		Allowance
With a related allowance recorded:
Commercial:
	Commercial and industrial loans	$	263	194		65
	Commercial mortgage owner-occupied loans		54	43		5
	Commercial mortgage nonowner-occupied loans		215	160		16
	Commercial construction loans		48	37		5
	Commercial leases		8	8		5
Restructured residential mortgage loans			1,067	1,023		137
Restructured consumer:
	Home equity		400	396		46
	Automobile loans		31	30		4
	Credit card		74	74		12
	Other consumer loans and leases		2	2		0
Total impaired loans with a related allowance		$	2,162	1,967		295
With no related allowance recorded:
Commercial:
	Commercial and industrial loans	$	207	169		0
	Commercial mortgage owner-occupied loans		107	99		0
	Commercial mortgage nonowner-occupied loans		209	199		0
	Commercial construction loans		109	67		0
	Commercial leases		5	5		0
Restructured residential mortgage loans			326	275		0
Restructured consumer:
	Home equity		40	39		0
	Automobile loans		3	3		0
Total impaired loans with no related allowance			1,006	856		0
Total impaired loans		$	3,168	2,823	^(a)	295

The following table summarizes the Bancorp’s impaired loans and leases (by class) that were subject to individual review as of December 31, 2011:

			Unpaid
As of December 31, 2011			Principal	Recorded
($ in millions)			Balance	Investment		Allowance
With a related allowance recorded:
Commercial:
	Commercial and industrial loans	$	330	246		102
	Commercial mortgage owner-occupied loans		66	52		10
	Commercial mortgage nonowner-occupied loans		203	147		24
	Commercial construction loans		213	120		18
	Commercial leases		11	10		2
Restructured residential mortgage loans			1,091	1,038		131
Restructured consumer:
	Home equity		401	397		46
	Automobile loans		37	37		5
	Credit card		94	88		14
	Other consumer loans and leases		2	2		0
Total impaired loans with a related allowance		$	2,448	2,137		352
With no related allowance recorded:
Commercial:
	Commercial and industrial loans	$	375	265		0
	Commercial mortgage owner-occupied loans		78	69		0
	Commercial mortgage nonowner-occupied loans		191	157		0
	Commercial construction loans		143	105		0
	Commercial leases		2	2		0
Restructured residential mortgage loans			276	228		0
Restructured consumer:
	Home equity		48	46		0
	Automobile loans		4	4		0
Total impaired loans with no related allowance			1,117	876		0
Total impaired loans		$	3,565	3,013	^(a)	352

The following table summarizes the Bancorp’s average impaired loans and leases and interest income by class for the year ended December 31:

			2012		2011
			Average	Interest	Average	Interest
			Recorded	Income	Recorded	Income
($ in millions)			Investment	Recognized	Investment	Recognized
Commercial:
	Commercial and industrial loans	$	448	4	532		5
	Commercial mortgage owner-occupied loans		156	4	117		2
	Commercial mortgage nonowner-occupied loans		361	10	288		5
	Commercial construction loans		160	2	198		3
	Commercial leases		10	0	16		0
Restructured residential mortgage loans			1,276	47	1,217		41
Restructured consumer:
	Home equity		439	24	444		23
	Automobile loans		38	1	41		1
	Credit card		80	4	94		3
	Other consumer loans and leases		1	0	21		0
Total impaired loans		$	2,969	96	2,968		83

During the year ended December 31, 2010, interest income of $74 million was recognized on impaired loans that had an average balance of $3.2 billion.

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

($ in millions)			2012	2011
Commercial:
	Commercial and industrial loans	$	330	487
	Commercial mortgage owner-occupied loans		125	170
	Commercial mortgage nonowner-occupied loans		157	251
	Commercial construction loans		76	138
	Commercial leases		9	12
Total commercial loans and leases			697	1,058
Residential mortgage loans			237	275
Consumer:
	Home equity		53	54
	Automobile loans		2	2
	Credit card		39	48
	Other consumer loans and leases		1	1
Total consumer loans and leases			95	105
Total nonperforming loans and leases^(a)(c)		$	1,029	1,438
OREO and other repossessed property^(b)			257	378

If a borrower is experiencing financial difficulty, the Bancorp may consider, in certain circumstances, modifying the terms of their loan to maximize collection of amounts due. Within each of the Bancorp's loan classes, TDRs typically involve either a reduction of the stated interest rate of the loan, an extension of the loan's maturity date(s) with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan's accrued interest. Modifying the terms of loans may result in an increase or decrease to the ALLL depending upon the terms modified, the method used to measure the ALLL for a loan prior to modification, and whether any charge-offs were recorded on the loan before or at the time of modification. Refer to the ALLL section of Note 1 for information on the Bancorp's ALLL methodology. Upon modification of a loan, the Bancorp measures the related impairment as the difference between the estimated future cash flows, discounted at the original effective yield of the loan, expected to be collected on the modified loan and the carrying value of the loan. The resulting measurement may result in the need for minimal or no valuation allowance because it is probable that all cash flows will be collected under the modified terms of the loan. In addition, if the stated interest rate was increased in a TDR, the cash flows on the modified loan, using the pre-modification interest rate as the discount rate, often exceed the recorded investment of the loan. Conversely, the Bancorp often recognizes an impairment loss as an increase to ALLL upon a modification that reduces the stated interest rate on a loan. If a TDR involves a reduction of the principal balance of the loan or the loan's accrued interest, that amount is charged off to the ALLL. At December 31, 2012, the Bancorp had $28 million in line of credit commitments and $25 million in letter of credit commitments to lend additional funds to borrowers whose terms have been modified in a TDR compared to $42 million and $1 million, respectively, at December 31, 2011.

The following table provides a summary of loans modified in a TDR by the Bancorp during the year ended December 31:

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
2012 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial:
	Commercial and industrial loans	108	$	84	(7)	9
	Commercial mortgage owner-occupied loans	67		53	(8)	2
	Commercial mortgage nonowner-occupied loans	67		91	(7)	0
	Commercial construction loans	17		38	(4)	0
	Commercial leases	8		7	1	0
Residential mortgage loans		1,758		340	35	0
Consumer:
	Home equity	1,343		82	1	0
	Automobile loans	1,289		23	2	0
	Credit card	11,407		75	11	0
Total portfolio loans and leases		16,064	$	793	24	11

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
2011 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial:
	Commercial and industrial loans	52	$	83	(4)	3
	Commercial mortgage owner-occupied loans	32		55	(6)	2
	Commercial mortgage nonowner-occupied loans	39		90	(21)	3
	Commercial construction loans	26		59	(9)	1
	Commercial leases	2		0	0	0
Residential mortgage loans		1,728		338	34	0
Consumer:
	Home equity	1,317		80	1	0
	Automobile loans	1,482		26	3	0
	Credit card	12,234		79	11	0
Total portfolio loans and leases		16,912	$	810	9	9

The Bancorp considers TDRs that become 90 days or more past due under the modified terms as subsequently defaulted. For commercial loans not subject to individual review for impairment, the historical loss rates that are applied to such commercial loans for purposes of determining the allowance include historical losses associated with subsequent defaults on loans previously modified in a TDR. For consumer loans, the Bancorp performs a qualitative assessment of the adequacy of the consumer ALLL by comparing the consumer ALLL to forecasted consumer losses over the projected loss emergence period (the forecasted losses include the impact of subsequent defaults of consumer TDRs). When a residential mortgage, home equity, auto or other consumer loan that has been modified in a TDR subsequently defaults, the present value of expected cash flows used in the measurement of the potential impairment loss is generally limited to the expected net proceeds from the sale of the loan's underlying collateral and any resulting impairment loss is reflected as a charge-off or an increase in ALLL. When a credit card loan that has been modified in a TDR subsequently defaults, the calculation of the impairment loss is consistent with the Bancorp's calculation for other credit card loans that have become 90 days or more past due.

The following table provides a summary of subsequent defaults that occurred during the years ended December 31, 2012 and 2011 and within 12 months of the restructuring date:

		Number of		Recorded
December 31, 2012 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial and industrial loans	2	$	3
	Commercial mortgage owner-occupied loans	3		2
	Commercial mortgage nonowner-occupied loans	2		1
	Commercial construction loans	2		3
Residential mortgage loans		332		57
Consumer:
	Home equity	101		7
	Automobile loans	42		0
	Credit card	28		0
Total portfolio loans and leases		512	$	73

		Number of		Recorded
December 31, 2011 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial and industrial loans	8	$	4
	Commercial mortgage owner-occupied loans	4		5
	Commercial mortgage nonowner-occupied loans	4		3
	Commercial construction loans	3		4
Residential mortgage loans		337		55
Consumer:
	Home equity	206		13
	Automobile loans	28		1
	Credit card	67		1
Total portfolio loans and leases		657	$	86