Loans and Leases

6 Months Ended

Jun. 30, 2013

Loans And Leases

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:
			June 30,	December 31,
($ in millions)			2013	2012
Loans and leases held for sale:
	Commercial and industrial loans	$	12	39
	Commercial mortgage loans		7	13
	Commercial construction loans		4	9
	Commercial leases		3	-
	Residential mortgage loans		2,113	2,856
	Other consumer loans and leases		9	22
Total loans and leases held for sale		$	2,148	2,939
Portfolio loans and leases:
	Commercial and industrial loans	$	37,856	36,038
	Commercial mortgage loans		8,443	9,103
	Commercial construction loans		754	698
	Commercial leases		3,567	3,549
Total commercial loans and leases			50,620	49,388
	Residential mortgage loans		12,400	12,017
	Home equity		9,531	10,018
	Automobile loans		12,015	11,972
	Credit card		2,114	2,097
	Other consumer loans and leases		352	290
Total consumer loans and leases			36,412	36,394
Total portfolio loans and leases		$	87,032	85,782

Total portfolio loans and leases are recorded net of unearned income, which totaled $721million as of June 30, 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 $100 million and$73 million as of June 30, 2013and December 31, 2012,respectively.

The Bancorp's FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $12.5 billion and $12.7 billion at June 30, 2013 and December 31, 2012, respectively, pledged at the FHLB, and loans of $33.4billion and $30.9 billion at June 30, 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
		June 30,	December 31,		June 30,	December 31,
($ in millions)		2013	2012		2013	2012
Commercial and industrial loans	$	37,868	36,077	$	-	1
Commercial mortgage loans		8,450	9,116		-	22
Commercial construction loans		758	707		-	1
Commercial leases		3,570	3,549		-	-
Residential mortgage loans		14,513	14,873		71	75
Home equity		9,531	10,018		48	58
Automobile loans		12,015	11,972		6	8
Credit card		2,114	2,097		27	30
Other consumer loans and leases		361	312		-	-
Total loans and leases	$	89,180	88,721	$	152	195
Less: Loans held for sale	$	2,148	2,939
Total portfolio loans and leases	$	87,032	85,782
The following table presents a summary of net charge-offs:
					For the six months
					ended June 30,
($ in millions)					2013	2012
Commercial and industrial loans				$	57	100
Commercial mortgage loans					37	55
Commercial construction loans					3	18
Commercial leases					2	7
Residential mortgage loans					35	73
Home equity					53	85
Automobile loans					9	16
Credit card					38	38
Other consumer loans and leases					11	9
Total loans and leases				$	245	401