Income Taxes

3 Months Ended

Mar. 31, 2013

Income Taxes

16. Income Taxes

The Bancorp's provision for income taxes was $179million and $173million for the three months ended March 31, 2013 and 2012, respectively. The effective tax rates for the three months ended March 31, 2013 and 2012 were 30.4% and 28.6%, respectively. The increase in the effective tax rate for the three months ended March 31, 2013compared to the same period in the prior year was primarily due to a non-cash charge related to previously recognized tax benefits associated with stock-based awards that were not realized.

The balance of unrecognized tax benefits as of March 31, 2013 was $17million which relates largely to state income tax exposures from taking tax positions where the Bancorp believes it is likely that, upon examination, a state will take a position contrary to the position taken by the Bancorp. It is reasonably possible that the Bancorp's unrecognized tax benefits could decrease by as much as $11 million within the next 12 months.