Loans and Leases

3 Months Ended

Mar. 31, 2013

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:
			March 31,	December 31,
($ in millions)			2013	2012
Loans and leases held for sale:
	Commercial and industrial loans	$	25	39
	Commercial mortgage loans		11	13
	Commercial construction loans		5	9
	Residential mortgage loans		2,622	2,856
	Other consumer loans and leases		28	22
Total loans and leases held for sale		$	2,691	2,939
Portfolio loans and leases:
	Commercial and industrial loans	$	36,757	36,038
	Commercial mortgage loans		8,766	9,103
	Commercial construction loans		694	698
	Commercial leases		3,568	3,549
Total commercial loans and leases			49,785	49,388
	Residential mortgage loans		12,091	12,017
	Home equity		9,727	10,018
	Automobile loans		11,741	11,972
	Credit card		2,043	2,097
	Other consumer loans and leases		289	290
Total consumer loans and leases			35,891	36,394
Total portfolio loans and leases		$	85,676	85,782

Total portfolio loans and leases are recorded net of unearned income, which totaled $736million as of March 31, 2013 and $758million as of December 31, 2012.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 at fair value upon origination) which totaled a net premium of $86 million and$73 million as of March 31, 2013and December 31, 2012,respectively.

The Bancorp's FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $12.6 billion and $12.7 billion at March 31, 2013 and December 31, 2012, respectively, pledged at the FHLB, and loans of $33.1billion and $30.9 billion at March 31, 2013 and December 31, 2012, respectively, pledged at the FRB.

The following table presents a summary of the total loans and leases owned by the Bancorp as of:
					90 Days Past Due
		Balance			and Still Accruing
		March 31,	December 31,		March 31,	December 31,
($ in millions)		2013	2012		2013	2012
Commercial and industrial loans	$	36,782	36,077	$	1	1
Commercial mortgage loans		8,777	9,116		-	22
Commercial construction loans		699	707		-	1
Commercial leases		3,568	3,549		-	-
Residential mortgage loans		14,713	14,873		74	75
Home equity		9,727	10,018		53	58
Automobile loans		11,741	11,972		7	8
Credit card		2,043	2,097		29	30
Other consumer loans and leases		317	312		-	-
Total loans and leases	$	88,367	88,721	$	164	195
Less: Loans held for sale	$	2,691	2,939
Total portfolio loans and leases	$	85,676	85,782
The following table presents a summary of net charge-offs:
					For the three months
					ended March 31,
($ in millions)					2013	2012
Commercial and industrial loans				$	25	54
Commercial mortgage loans					26	30
Commercial construction loans					3	18
Residential mortgage loans					20	37
Home equity					30	46
Automobile loans					4	9
Credit card					20	20
Other consumer loans and leases					5	6
Total loans and leases				$	133	220