Loans and Leases

9 Months Ended

Sep. 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:
			September 30,	December 31,
($ in millions)			2013	2012
Loans and leases held for sale:
	Commercial and industrial loans	$	7	39
	Commercial mortgage loans		6	13
	Commercial construction loans		4	9
	Residential mortgage loans		1,298	2,856
	Other consumer loans and leases		15	22
Total loans and leases held for sale		$	1,330	2,939
Portfolio loans and leases:
	Commercial and industrial loans	$	38,253	36,038
	Commercial mortgage loans		8,052	9,103
	Commercial construction loans		875	698
	Commercial leases		3,572	3,549
Total commercial loans and leases			50,752	49,388
	Residential mortgage loans		12,534	12,017
	Home equity		9,356	10,018
	Automobile loans		12,072	11,972
	Credit card		2,157	2,097
	Other consumer loans and leases		360	290
Total consumer loans and leases			36,479	36,394
Total portfolio loans and leases		$	87,231	85,782

Total portfolio loans and leases are recorded net of unearned income, which totaled $711million as of September 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 $111 million and$73 million as of September 30, 2013and December 31, 2012,respectively.

The Bancorp's FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $11.2 billion and $12.7 billion at September 30, 2013 and December 31, 2012, respectively, pledged at the FHLB, and loans of $33.0billion and $30.9 billion at September 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
		September 30,	December 31,		September 30,	December 31,
($ in millions)		2013	2012		2013	2012
Commercial and industrial loans	$	38,260	36,077	$	3	1
Commercial mortgage loans		8,058	9,116		-	22
Commercial construction loans		879	707		-	1
Commercial leases		3,572	3,549		-	-
Residential mortgage loans		13,832	14,873		73	75
Home equity		9,356	10,018		46	58
Automobile loans		12,072	11,972		8	8
Credit card		2,157	2,097		26	30
Other consumer loans and leases		375	312		-	-
Total loans and leases	$	88,561	88,721	$	156	195
Less: Loans held for sale	$	1,330	2,939
Total portfolio loans and leases	$	87,231	85,782
The following table presents a summary of net charge-offs:
					For the nine months
					ended September 30,
($ in millions)					2013	2012
Commercial and industrial loans				$	102	129
Commercial mortgage loans					39	83
Commercial construction loans					1	22
Commercial leases					1	8
Residential mortgage loans					47	99
Home equity					71	122
Automobile loans					15	23
Credit card					57	56
Other consumer loans and leases					20	15
Total				$	353	557