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 year ended December 31, 2013				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance at January 1	$	1,236	229	278	111	1,854
	Losses charged off		(284)	(70)	(283)	-	(637)
	Recoveries of losses previously charged off		64	10	62	-	136
	Provision for loan and lease losses		42	20	168	(1)	229
Balance at December 31		$	1,058	189	225	110	1,582

For the year ended December 31, 2012				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance at January 1	$	1,527	227	365	136	2,255
	Losses charged off		(358)	(129)	(350)	-	(837)
	Recoveries of losses previously charged off		61	7	65	-	133
	Provision for loan and lease losses		6	124	198	(25)	303
Balance at December 31		$	1,236	229	278	111	1,854

For the year ended December 31, 2011				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance at January 1	$	1,989	310	555	150	3,004
	Losses charged off		(615)	(180)	(519)	-	(1,314)
	Recoveries of losses previously charged off		61	7	74	-	142
	Provision for loan and lease losses		92	90	255	(14)	423
Balance at December 31		$	1,527	227	365	136	2,255

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

					Residential
As of December 31, 2013 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	186	a^(c)	139	53	-	378
	Collectively evaluated for impairment		872		50	172	-	1,094
	Unallocated		-		-	-	110	110
Total ALLL		$	1,058		189	225	110	1,582
Loans and leases:^(b)
	Individually evaluated for impairment	$	1,560	a^(c)	1,325	496	-	3,381
	Collectively evaluated for impairment		50,486		11,259	23,392	-	85,137
	Loans acquired with deteriorated credit quality		-		4	-	-	4
Total portfolio loans and leases		$	52,046		12,588	23,888	-	88,522

				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 December 31, 2013 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	36,776	1,118	1,419	3	39,316
Commercial mortgage owner occupied loans		3,866	209	415	17	4,507
Commercial mortgage non-owner occupied loans		2,879	248	431	1	3,559
Commercial construction loans		855	32	152	-	1,039
Commercial leases		3,546	56	23	-	3,625
Total	$	47,922	1,663	2,440	21	52,046

			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 are classified as nonperforming unless such loans are both well secured and in the process of collection. During the fourth quarter of 2013, the Bancorp modified its nonaccrual policy for home equity loans and lines of credit. Home equity loans and lines of credit are reported as nonperforming if principal or interest has been in default for 90 days or more unless the loan is both well secured and in the process of collection. Home equity loans and lines of credit that have been in default for 60 days or more are also reported as nonperforming if the senior lien has been in default 120 days or more, unless the loan is both well secured and in the process of collection. As a result of the modification of the nonaccrual policy for home equity loans and lines of credit, $46 million of home equity loans and lines of credit were reclassified from performing to nonperforming status during the fourth quarter of 2013. In addition, the Bancorp modified its charge-off policy during the fourth quarter of 2013. Home equity loans and lines of credit that have been in default 120 days or more are assessed for a charge-off if the senior lien has been in default 120 days or more. 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 December 31:

		2013		2012
($ in millions)		Performing	Nonperforming	Performing	Nonperforming
Residential mortgage loans^(a)	$	12,423	165	11,704	237
Home equity		9,153	93	9,965	53
Automobile loans		11,982	2	11,970	2
Credit card		2,261	33	2,058	39
Other consumer loans and leases		364	-	289	1
Total	$	36,183	293	35,986	332

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 December 31, 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	$	39,118	53	145	198	39,316	-
	Commercial mortgage owner occupied loans		4,423	15	69	84	4,507	-
	Commercial mortgage non-owner occupied loans		3,515	9	35	44	3,559	-
	Commercial construction loans		1,010	-	29	29	1,039	-
	Commercial leases		3,620	-	5	5	3,625	-
Residential mortgage loans^(a)(b)			12,284	73	231	304	12,588	66
Consumer:
	Home equity		9,058	102	86	188	9,246	-
	Automobile loans		11,919	55	10	65	11,984	8
	Credit card		2,225	36	33	69	2,294	29
	Other consumer loans and leases		362	2	-	2	364	-
Total portfolio loans and leases^(a)		$	87,534	345	643	988	88,522	103

				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	-
	Commercial construction loans		622	-	76	76	698	1
	Commercial leases		3,546	2	1	3	3,549	-
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	-
Total portfolio loans and leases^(a)		$	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 table summarizes 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 as December 31:

			Unpaid
2013			Principal	Recorded
($ in millions)			Balance	Investment		Allowance
With a related allowance recorded:
Commercial:
	Commercial and industrial loans	$	870	759		145
	Commercial mortgage owner occupied loans^(b)		85	74		11
	Commercial mortgage non-owner occupied loans		154	134		14
	Commercial construction loans		68	54		5
	Commercial leases		12	12		-
Restructured residential mortgage loans			1,081	1,052		139
Restructured consumer:
	Home equity		377	373		39
	Automobile loans		23	23		3
	Credit card		59	58		11
Total impaired loans and leases with a related allowance		$	2,729	2,539		367
With no related allowance recorded:
Commercial:
	Commercial and industrial loans	$	181	177		-
	Commercial mortgage owner occupied loans		106	98		-
	Commercial mortgage non-owner occupied loans		154	147		-
	Commercial construction loans		77	63		-
	Commercial leases		14	14		-
Restructured residential mortgage loans			313	273		-
Restructured consumer:
	Home equity		43	39		-
	Automobile loans		3	3		-
Total impaired loans and leases with no related allowance			891	814		-
Total impaired loans and leases		$	3,620	3,353	a^(a)	367

			Unpaid
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		0
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		0
	Commercial mortgage owner occupied loans		107	99		0
	Commercial mortgage non-owner occupied loans		209	199		0
	Commercial construction loans		109	67		0
	Commercial leases		5	5		0
Restructured residential mortgage loans			326	275		0
Restructured consumer:
	Home equity		40	39		0
	Automobile loans		3	3		0
Total impaired loans and leases with no related allowance			1,006	856		0
Total impaired loans and leases		$	3,168	2,823	a^(a)	295

The following table summarizes the Bancorp’s average impaired loans and leases and interest income by class for the year ended December 31:

			2013		2012
			Average	Interest	Average	Interest
			Recorded	Income	Recorded	Income
($ in millions)			Investment	Recognized	Investment	Recognized
Commercial:
	Commercial and industrial loans	$	517	16	448		4
	Commercial mortgage owner occupied loans^(a)		146	4	156		4
	Commercial mortgage non-owner occupied loans		321	8	361		10
	Commercial construction loans		108	4	160		2
	Commercial leases		11	-	10		-
Restructured residential mortgage loans			1,311	53	1,276		47
Restructured consumer:
	Home equity		429	23	439		24
	Automobile loans		29	1	38		1
	Credit card		68	4	80		4
	Other consumer loans and leases		2	-	1		-
Total impaired loans and leases		$	2,942	113	2,969		96

Nonperforming assets include nonaccrual loans and leases for which ultimate collectability of the full amount of the principal and/or interest is uncertain; commercial and credit card TDRs which have not yet met the requirements to be classified as a performing asset; consumer TDRs 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 December 31:

($ in millions)			2013	2012
Commercial:
	Commercial and industrial loans	$	281	330
	Commercial mortgage owner occupied loans^(a)		95	125
	Commercial mortgage non-owner occupied loans		48	157
	Commercial construction loans		29	76
	Commercial leases		5	9
Total commercial loans and leases			458	697
Residential mortgage loans			166	237
Consumer:
	Home equity		93	53
	Automobile loans		1	2
	Credit card		33	39
	Other consumer loans and leases		0	1
Total consumer loans and leases			127	95
Total nonperforming loans and leases^(b)(c)		$	751	1,029
OREO and other repossessed property^(d)			229	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 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 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. At December 31, 2013, the Bancorp had $46 million in line of credit commitments and $40 million in letter of credit commitments to lend additional funds to borrowers whose terms have been modified in a TDR compared to $28 million and $25 million, respectively, at December 31, 2012.

The following table provides a summary of loans modified in a TDR by the Bancorp during the year ended December 31:

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
2013 ($ in millions)^(a)		during the year^(b)	during the year		modification	modification
Commercial:
	Commercial and industrial loans	146	$	604	39	44
	Commercial mortgage owner occupied loans^(c)	65		19	(2)	-
	Commercial mortgage non-owner occupied loans	59		72	(7)	-
	Commercial construction loans	4		34	(2)	-
	Commercial leases	1		2	(5)	-
Residential mortgage loans		1,620		249	28	-
Consumer:
	Home equity	695		37	(1)	-
	Automobile loans	499		14	1	-
	Credit card	8,202		50	7	-
Total portfolio loans and leases		11,291	$	1,081	58	44

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
2012 ($ in millions)^(a)		during the year^(b)	during the year		modification	modification
Commercial:
	Commercial and industrial loans	108	$	84	(7)	9
	Commercial mortgage owner occupied loans	67		53	(8)	2
	Commercial mortgage non-owner occupied loans	67		91	(7)	-
	Commercial construction loans	17		38	(4)	-
	Commercial leases	8		7	1	-
Residential mortgage loans		1,758		340	35	-
Consumer:
	Home equity	1,343		82	1	-
	Automobile loans	1,289		23	2	-
	Credit card	11,407		75	11	-
Total portfolio loans and leases		16,064	$	793	24	11

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 that occurred during the years ended December 31, 2013 and 2012 and within 12 months of the restructuring date:

		Number of		Recorded
December 31, 2013 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial and industrial loans	6	$	11
	Commercial mortgage owner occupied loans	7		1
Residential mortgage loans		375		58
Consumer:
	Home equity	65		4
	Automobile loans	4		-
	Credit card	1,768		11
Total portfolio loans and leases		2,225	$	85

		Number of		Recorded
December 31, 2012 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial and industrial loans	2	$	3
	Commercial mortgage owner occupied loans	3		2
	Commercial mortgage non-owner occupied loans	2		1
	Commercial construction loans	2		3
Residential mortgage loans		332		57
Consumer:
	Home equity	101		7
	Automobile loans	42		-
	Credit card (revised)	1,832		13
Total portfolio loans and leases		2,316	$	86