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 three months ended June 30, 2013				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance, beginning of period	$	1,191	212	272	108	1,783
	Losses charged off		(59)	(18)	(68)	-	(145)
	Recoveries of losses previously charged off		14	3	16	-	33
	Provision for loan and lease losses		37	4	27	(4)	64
Balance, end of period		$	1,183	201	247	104	1,735

For the three months ended June 30, 2012				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance, beginning of period	$	1,424	233	341	128	2,126
	Losses charged off		(95)	(38)	(86)	-	(219)
	Recoveries of losses previously charged off		17	2	19	-	38
	Provision for loan and lease losses		1	35	42	(7)	71
Balance, end of period		$	1,347	232	316	121	2,016

For the six months ended June 30, 2013				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance, beginning of period	$	1,236	229	278	111	1,854
	Losses charged off		(128)	(40)	(145)	-	(313)
	Recoveries of losses previously charged off		29	5	34	-	68
	Provision for loan and lease losses		46	7	80	(7)	126
Balance, end of period		$	1,183	201	247	104	1,735

For the six months ended June 30, 2012				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance, beginning of period	$	1,527	227	365	136	2,255
	Losses charged off		(211)	(76)	(185)	-	(472)
	Recoveries of losses previously charged off		33	3	35	-	71
	Provision for loan and lease losses		(2)	78	101	(15)	162
Balance, end of period		$	1,347	232	316	121	2,016

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

					Residential
As of June 30, 2013 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	89	^(c)	134	59	-	282
	Collectively evaluated for impairment		1,094		66	188	-	1,348
	Loans acquired with deteriorated credit quality		-		1	-	-	1
	Unallocated		-		-	-	104	104
Total ALLL		$	1,183		201	247	104	1,735
Loans and leases:^(b)
	Individually evaluated for impairment	$	924	^(c)	1,306	527	-	2,757
	Collectively evaluated for impairment		49,696		11,006	23,485	-	84,187
	Loans acquired with deteriorated credit quality		-		5	-	-	5
Total portfolio loans and leases		$	50,620		12,317	24,012	-	86,949


				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

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 non-owner 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 June 30, 2013 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	35,263	857	1,724	12	37,856
Commercial mortgage owner occupied loans		4,005	240	473	-	4,718
Commercial mortgage non-owner occupied loans		2,758	315	652	-	3,725
Commercial construction loans		533	58	163	-	754
Commercial leases		3,486	39	42	-	3,567
Total	$	46,045	1,509	3,054	12	50,620


			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 owner occupied loans		3,934	338	603	1	4,876
Commercial mortgage non-owner occupied loans		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

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:

		June 30, 2013		December 31, 2012
($ in millions)		Performing	Nonperforming	Performing	Nonperforming
Residential mortgage loans^(a)	$	12,115	202	11,704	237
Home equity		9,486	45	9,965	53
Automobile loans		12,013	2	11,970	2
Credit card		2,077	37	2,058	39
Other consumer loans and leases		352	-	289	1
Total	$	36,043	286	35,986	332

Age Analysis of Past Due Loans and Leases
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 June 30, 2013			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	$	37,691	15	150	165	37,856	0
	Commercial mortgage owner occupied loans		4,628	6	84	90	4,718	0
	Commercial mortgage non-owner occupied loans		3,646	11	68	79	3,725	0
	Commercial construction loans		712	0	42	42	754	0
	Commercial leases		3,560	0	7	7	3,567	0
Residential mortgage loans^{(a) (b)}			11,985	65	267	332	12,317	71
Consumer:
	Home equity		9,330	107	94	201	9,531	48
	Automobile loans		11,958	48	9	57	12,015	6
	Credit card		2,052	32	30	62	2,114	27
	Other consumer loans and leases		350	2	0	2	352	0
Total portfolio loans and leases^{(a) (d)}		$	85,912	286	751	1,037	86,949	152


				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 non-owner 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
Consumer:
	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

Larger commercial loans and leases 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 and leases 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 or lease 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 or leases that are collectively evaluated for impairment are not included in the following tables.

The following tables summarize the Bancorp’s impaired loans and leases (by class) that were subject to individual review, which includes all loans and leases restructured in a troubled debt restructuring:

			Unpaid
As of June 30, 2013			Principal	Recorded
($ in millions)			Balance	Investment		Allowance
With a related allowance recorded:
Commercial:
	Commercial and industrial loans	$	278	205		60
	Commercial mortgage owner occupied loans^(b)		43	33		5
	Commercial mortgage non-owner occupied loans		114	86		9
	Commercial construction loans		68	55		4
	Commercial leases		1	1		-
Restructured residential mortgage loans			1,054	1,019		134
Restructured consumer:
	Home equity		397	393		42
	Automobile loans		26	26		6
	Credit card		65	65		11
	Other consumer loans and leases		2	2		-
Total impaired loans and leases with a related allowance		$	2,048	1,885		271
With no related allowance recorded:
Commercial:
	Commercial and industrial loans	$	156	117		-
	Commercial mortgage owner occupied loans		108	101		-
	Commercial mortgage non-owner occupied loans		248	229		-
	Commercial construction loans		86	58		-
	Commercial leases		10	10		-
Restructured residential mortgage loans			335	287		-
Restructured consumer:
	Home equity		41	38		-
	Automobile loans		3	3		-
Total impaired loans and leases with no related allowance			987	843		-
Total impaired loans and leases		$	3,035	2,728	^(a)	271


			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 non-owner 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		-
Total impaired loans and leases with a related allowance		$	2,162	1,967		295
With no related allowance recorded:
Commercial:
	Commercial and industrial loans	$	207	169		-
	Commercial mortgage owner occupied loans		107	99		-
	Commercial mortgage non-owner occupied loans		209	199		-
	Commercial construction loans		109	67		-
	Commercial leases		5	5		-
Restructured residential mortgage loans			326	275		-
Restructured consumer:
	Home equity		40	39		-
	Automobile loans		3	3		-
Total impaired loans and leases with no related allowance			1,006	856		-
Total impaired loans and leases		$	3,168	2,823	^(a)	295

The following table summarizes the Bancorp’s average impaired loans and leases and interest income by class:

			For the three months ended			For the six months ended
			June 30, 2013			June 30, 2013
			Average	Interest		Average	Interest
			Recorded	Income		Recorded	Income
($ in millions)			Investment	Recognized		Investment	Recognized
Commercial:
	Commercial and industrial loans	$	318	2	$	329	4
	Commercial mortgage owner occupied loans^(a)		136	1		138	2
	Commercial mortgage non-owner occupied loans		315	2		328	4
	Commercial construction loans		114	1		112	2
	Commercial leases		10	-		11	-
Restructured residential mortgage loans			1,308	13		1,307	26
Restructured consumer:
	Home equity		434	5		437	11
	Automobile loans		29	-		31	-
	Credit card		68	1		71	2
	Other consumer loans and leases		2	-		2	-
Total impaired loans and leases		$	2,734	25	$	2,766	51

			For the three months ended					For the six months ended
			June 30, 2012					June 30, 2012
			Average		Interest			Average		Interest
			Recorded		Income			Recorded		Income
($ in millions)			Investment		Recognized			Investment		Recognized
Commercial:
	Commercial and industrial loans	$	467		1		$	481		2
	Commercial mortgage owner occupied loans		164		1			152		2
	Commercial mortgage non-owner occupied loans		361		2			341		4
	Commercial construction loans		177		1			190		2
	Commercial leases		10		0			11		0
Restructured residential mortgage loans			1,270		13			1,266		25
Restructured consumer:
	Home equity		438		12			441		18
	Automobile loans		39		1			40		1
	Credit card		86		1			83		2
Total impaired loans and leases			$	3,012		32		$	3,005		56


Nonperforming Assets
Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; restructured commercial and credit card loans which have not yet met the requirements to be classified as a performing asset; restructured consumer loans which are 90 days past due based on the restructured terms unless the loan is both well-secured and in the process of collection; and certain other assets, including OREO and other repossessed property. The following table summarizes the Bancorp’s nonperforming loans and leases, by class, as of:

			June 30,	December 31,
($ in millions)			2013	2012
Commercial:
	Commercial and industrial loans	$	344	330
	Commercial mortgage owner occupied loans^(a)		124	125
	Commercial mortgage non-owner occupied loans		104	157
	Commercial construction loans		43	76
	Commercial leases		8	9
Total commercial loans and leases			623	697
Residential mortgage loans			201	237
Consumer:
	Home equity		46	53
	Automobile loans		2	2
	Credit card		37	39
	Other consumer loans and leases		-	1
Total consumer loans and leases			85	95
Total nonperforming loans and leases^{(b) (c)}		$	909	1,029
OREO and other repossessed property^(d)			241	257

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 in the Bancorp's Form 10-K for the year ended December 31, 2012 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 the 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. As of June 30, 2013 and December 31, 2012, the Bancorp had $30 million and $28 million in line of credit commitments, respectively, and $25 million for both periods in letter of credit commitments to lend additional funds to borrowers whose terms have been modified in a TDR.

The following table provides a summary of loans modified in a TDR by the Bancorp during the three months ended:

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
June 30, 2013 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial:
	Commercial and industrial loans	43	$	112	(1)	-
	Commercial mortgage owner occupied loans^(c)	14		5	-	-
	Commercial mortgage non-owner occupied loans	19		37	(3)	-
	Commercial construction loans	1		1	-	-
Residential mortgage loans		420		68	8	-
Consumer:
	Home equity	178		11	(1)	-
	Automobile loans	133		3	1	-
	Credit card	2,180		13	2	-
Total portfolio loans and leases		2,988	$	250	6	-

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
June 30, 2012 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial:
	Commercial and industrial loans	11	$	10	(6)	-
	Commercial mortgage owner occupied loans	9		7	(1)	-
	Commercial mortgage non-owner occupied loans	10		16	(6)	-
	Commercial construction loans	-		-	(4)	-
Residential mortgage loans		557		91	8	-
Consumer:
	Home equity	359		23	1	-
	Automobile loans	222		4	1	-
	Credit card	2,991		20	3	-
Total portfolio loans and leases		4,159	$	171	(4)	-

The following table provides a summary of loans modified in a TDR by the Bancorp during the six months ended:

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
June 30, 2013 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial:
	Commercial and industrial loans	63	$	121	-	1
	Commercial mortgage owner-occupied loans^(c)	24		9	(1)	-
	Commercial mortgage nonowner-occupied loans	34		54	(5)	-
	Commercial construction loans	2		7	(1)	-
Residential mortgage loans		814		129	16	-
Consumer:
	Home equity	504		27	-	-
	Automobile loans	248		9	1	-
	Credit card	4,492		28	4	-
Total portfolio loans and leases		6,181	$	384	14	1

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
June 30, 2012 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial:
	Commercial and industrial loans	41	$	25	(9)	-
	Commercial mortgage owner-occupied loans	36		15	(3)	-
	Commercial mortgage nonowner-occupied loans	40		67	(5)	-
	Commercial construction loans	11		36	(4)	-
Residential mortgage loans		1,037		169	15	-
Consumer:
	Home equity	670		42	2	-
	Automobile loans	561		9	2	-
	Credit card	5,732		38	5	-
Total portfolio loans and leases		8,128	$	401	3	-

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 of TDRs that occurred during the three months ended June 30, 2013 and 2012 and within 12 months of the restructuring date:

		Number of		Recorded
June 30, 2013 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial and industrial loans	1	$	-
	Commercial mortgage owner occupied loans	4		1
Residential mortgage loans		55		8
Consumer:
	Home equity	20		1
	Credit card	411		2
Total portfolio loans and leases		491	$	12

		Number of		Recorded
June 30, 2012 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial mortgage owner occupied loans	2	$	1
	Commercial mortgage non-owner occupied loans	1		-
Residential mortgage loans		62		14
Consumer:
	Home equity	17		1
	Automobile loans	9		-
	Credit card	432		3
Total portfolio loans and leases		523	$	19

The following table provides a summary of subsequent defaults that occurred during the six months ended June 30, 2013 and 2012 and within 12 months of the restructuring date:

		Number of		Recorded
June 30, 2013 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial and industrial loans	2	$	0
	Commercial mortgage owner-occupied loans	4		1
Residential mortgage loans		226		37
Consumer:
	Home equity	34		2
	Automobile loans	3		-
	Credit card	926		6
Total portfolio loans and leases		1,195	$	46

		Number of		Recorded
June 30, 2012 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial mortgage owner-occupied loans	2	$	1
	Commercial mortgage nonowner-occupied loans	2		1
	Commercial construction loans	2		3
Residential mortgage loans		126		25
Consumer:
	Home equity	48		3
	Automobile loans	21		0
	Credit card	1,009		7
Total portfolio loans and leases		1,210	$	40