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Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2013

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables summarize assets and liabilities measured at fair value on a recurring basis, including residential mortgage loans held for sale for which the Bancorp has elected the fair value option as of:

	Fair Value Measurements Using
December 31, 2013 ($ in millions)		Level 1^(c)	Level 2^(c)	Level 3	Total Fair Value
Assets:
Available-for-sale securities:
U.S. Treasury and Government agencies	$	26	-	-	26
U.S. Government sponsored agencies		-	1,644	-	1,644
Obligations of states and political subdivisions		-	192	-	192
Agency mortgage-backed securities		-	12,284	-	12,284
Other bonds, notes and debentures		-	3,582	-	3,582
Other securities^(a)		89	29	-	118
Available-for-sale securities^(a)		115	17,731	-	17,846

Trading securities:
U.S. Treasury and Government agencies		1	-	-	1
U.S. Government sponsored agencies		-	4	-	4
Obligations of states and political subdivisions		-	12	1	13
Agency mortgage-backed securities		-	3	-	3
Other bonds, notes and debentures		-	7	-	7
Other securities		315	-	-	315
Trading securities		316	26	1	343

Residential mortgage loans held for sale		-	890	-	890
Residential mortgage loans^(b)		-	-	92	92
Derivative assets:
Interest rate contracts		13	802	12	827
Foreign exchange contracts		-	276	-	276
Equity contracts		-	-	384	384
Commodity contracts		18	48	-	66
Derivative assets		31	1,126	396	1,553
Total assets	$	462	19,773	489	20,724

Liabilities:
Derivative liabilities:
Interest rate contracts	$	1	384	4	389
Foreign exchange contracts		-	252	-	252
Equity contracts		-	-	48	48
Commodity contracts		9	56	-	65
Derivative liabilities		10	692	52	754

Short positions		4	4	-	8
Total liabilities	$	14	696	52	762

	Fair Value Measurements Using
December 31, 2012 ($ in millions)		Level 1^(c)	Level 2^(c)	Level 3	Total Fair Value
Assets:
Available-for-sale securities:
U.S. Treasury and Government agencies	$	41	-	-	41
U.S. Government sponsored agencies		-	1,911	-	1,911
Obligations of states and political subdivisions		-	212	-	212
Agency mortgage-backed securities		-	8,730	-	8,730
Other bonds, notes and debentures		-	3,277	-	3,277
Other securities^(a)		79	113	-	192
Available-for-sale securities^(a)		120	14,243	-	14,363

Trading securities:
U.S. Treasury and Government agencies		1	-	-	1
U.S. Government sponsored agencies		-	6	-	6
Obligations of states and political subdivisions		-	16	1	17
Agency mortgage-backed securities		-	7	-	7
Other bonds, notes and debentures		-	15	-	15
Other securities		161	-	-	161
Trading securities		162	44	1	207

Residential mortgage loans held for sale		-	2,856	-	2,856
Residential mortgage loans^(b)		-	-	76	76
Derivative assets:
Interest rate contracts		2	1,445	60	1,507
Foreign exchange contracts		-	201	-	201
Equity contracts		-	-	177	177
Commodity contracts		-	87	-	87
Derivative assets		2	1,733	237	1,972
Total assets	$	284	18,876	314	19,474

Liabilities:
Derivative liabilities:
Interest rate contracts	$	14	600	3	617
Foreign exchange contracts		-	183	-	183
Equity contracts		-	-	33	33
Commodity contracts		-	82	-	82
Derivative liabilities		14	865	36	915

Short positions		8	2	-	10
Total liabilities	$	22	867	36	925

Excludes FHLB and FRB restricted stock totaling $402 and $349, respectively, at December 31, 2013 and $497 and $347, respectively, at December 31, 2012.
Includes residential mortgage loans originated as held for sale and subsequently transferred to held for investment.
During the years ended December 31, 2013 and 2012, no assets or liabilities were transferred between Level 1 and Level 2.

Reconciliation of Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following tables are a reconciliation of assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Residential	Interest Rate	Equity
For the year ended December 31, 2013	Trading		Mortgage	Derivatives,	Derivatives,	Total
($ in millions)	Securities		Loans	Net^(a)	Net^(a)	Fair Value
Beginning balance	$	1	76	57	144	$	278
Total gains or losses (realized/unrealized):
Included in earnings		-	(1)	59	175		233
Purchases		-	-	(2)	-		(2)
Settlements		-	(17)	(106)	17		(106)
Transfers into Level 3^(b)		-	34	-	-		34
Ending balance	$	1	92	8	336	$	437
The amount of total gains (losses) for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at December 31, 2013^(c)	$	-	(1)	11	175	$	185

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Residential	Interest Rate	Equity
For the year ended December 31, 2012	Trading				Mortgage	Derivatives,	Derivatives,		Total
($ in millions)	Securities				Loans	Net^(a)	Net^(a)		Fair Value
Beginning balance	$	1	65	32	32		$	130
Total gains or losses (realized/unrealized):
Included in earnings		-	-	418	22			440
Settlements		-	(15)	(393)	90			(318)
Transfers into Level 3^(b)		-	26	-	-			26
Ending balance	$	1	76	57	144		$	278
The amount of total gains (losses) for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at December 31, 2012^(c)	$	-	-	233	22		$	255

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Residential	Interest Rate	Equity
For the year ended December 31, 2011		Trading	Mortgage	Derivatives,	Derivatives,		Total
($ in millions)		Securities	Loans	Net^(a)	Net^(a)		Fair Value
Beginning balance	$	6	46	2	53	$	107
Total gains or losses (realized/unrealized):
Included in earnings		-	4	205	(43)		166
Purchases		-	-	-	2		2
Sales		(5)	-	-	-		(5)
Settlements		-	(9)	(175)	20		(164)
Transfers into Level 3^(b)		-	24	-	-		24
Ending balance	$	1	65	32	32	$	130
The amount of total gains (losses) for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at December 31, 2011^(c)	$	-	4	32	(43)	$	(7)

Net interest rate derivatives include derivative assets and liabilities of $12 and $4, respectively, as of December 31, 2013, $60 and $3, respectively as of December 31, 2012 and $34 and $2, respectively, as of December 31, 2011. Net equity derivatives include derivative assets and liabilities of $384 and $48, respectively, as of December 31, 2013, $177 and $33, respectively, as of December 31, 2012, and $113 and $81, respectively, as of December 31, 2011.
Includes residential mortgage loans held for sale that were transferred to held for investment.
Includes interest income and expense.

Quantitative information about significant unobservable level 3 fair value measurement inputs

The following table presents information as of December 31, 2013 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a recurring basis:

($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Residential mortgage loans	$	92	Loss rate model	Interest rate risk factor	(23.7) - 16.5%	2.3%
				Credit risk factor	0 - 63.4%	2.6%
IRLCs, net		11	Discounted cash flow	Loan closing rates	14.9 - 98.7%	68.5%
Stock warrant associated with Vantiv Holding, LLC		384	Black-Scholes option	Expected term (years)	2.00 - 15.50	5.1
			valuation model	Expected volatility^(a)	18.5 - 33.2%	25.4%
				Expected dividend rate	-	-
Swap associated with the sale of Visa, Inc.		(48)	Discounted cash flow	Timing of the resolution	12/31/2014 -	NM
Class B shares				of the Covered Litigation	12/31/2019

Based on historical and implied volatilities of comparable companies assuming similar expected terms

The following table presents information as of December 31, 2012 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a recurring basis:

($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Residential mortgage loans	$	76	Loss rate model	Interest rate risk factor	(91.2) - 17.0%	5.8%
				Credit risk factor	0 - 68.4%	4.3%
IRLCs, net		60	Discounted cash flow	Loan closing rates	9.9 - 95.0%	58.3%
Stock warrant associated with Vantiv Holding, LLC		177	Black-Scholes option	Expected term (years)	2.00 - 16.50	6.2
			valuation model	Expected volatility^(a)	27.2 - 40.0%	33.8%
				Expected dividend rate	-	-
Swap associated with the sale of Visa, Inc.		(33)	Discounted cash flow	Timing of the resolution	12/31/2013 -	NM
Class B shares				of the Covered Litigation	12/31/2016

Based on historical and implied volatilities of comparable companies assuming similar expected terms

The following tables present information as of December 31, 2013 and 2012 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a nonrecurring basis:

As of December 31, 2013 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Commercial loans held for sale	$	3	Appraised value	Appraised value	NM	NM
				Cost to sell	NM	10.0%
Commercial and industrial loans		443	Appraised value	Collateral value	NM	NM
Commercial mortgage loans		61	Appraised value	Collateral value	NM	NM
Commercial construction loans		16	Appraised value	Collateral value	NM	NM
MSRs		967	Discounted cash flow	Prepayment speed	0 - 100%	(Fixed) 10.3% (Adjustable) 25.6%
				Discount rates	9.4 - 18.0%	(Fixed) 10.4% (Adjustable) 11.6%
OREO		87	Appraised value	Appraised value	NM	NM
Private equity investment funds		44^(a)	Liquidity discount applied to fund's net asset value	Liquidity discount	0 - 18%	3.0%

Includes funds the Bancorp will be prohibited from retaining after the July 21, 2015 end of the conformance period for the final rules, adopted under the Bank Holding Company Act, that implemented the provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly referred to as the Volcker Rule.


As of December 31, 2012 ($ in millions)
				Significant Unobservable	Ranges of
Financial Instrument		Fair Value	Valuation Technique	Inputs	Inputs	Weighted-Average
Commercial loans held for sale	$	9	Appraised value	Appraised value	NM	NM
				Cost to sell	NM	10.0%
Commercial and industrial loans		83	Appraised value	Default rates	100%	NM
				Collateral value	NM	NM
Commercial mortgage loans		46	Appraised value	Default rates	100%	NM
				Collateral value	NM	NM
Commercial construction loans		4	Appraised value	Default rates	100%	NM
				Collateral value	NM	NM
MSRs		697	Discounted cash flow	Prepayment speed	0 - 100%	(Fixed) 16.1% (Adjustable) 26.9%
				Discount rates	9.4 - 18.0%	(Fixed) 10.5% (Adjustable) 11.7%
OREO		165	Appraised value	Appraised value	NM	NM

Total Gains and Losses Included in Earnings for Assets and Liabilites Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3)

The total gains and losses included in earnings for assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) were recorded in the Consolidated Statements of Income as follows:

($ in millions)		2013	2012	2011
Mortgage banking net revenue		57	418	210
Corporate banking revenue		1	1	2
Other noninterest income		175	21	(46)
Total gains	$	233	440	166

The total gains and losses included in earnings attributable to changes in unrealized gains and losses related to Level 3 assets and liabilities still held at December 31, 2013, 2012 and 2011 were recorded in the Consolidated Statements of Income as follows:

($ in millions)		2013	2012	2011
Mortgage banking net revenue		10	233	37
Corporate banking revenue		-	1	1
Other noninterest income		175	21	(45)
Total (losses) gains	$	185	255	(7)

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following tables represent those assets that were subject to fair value adjustments during the years ended December 31, 2013 and 2012 and still held as of the end of the period, and the related losses from fair value adjustments on assets sold during the period as well as assets still held as of the end of the period:

		Fair Value Measurements Using				Total Losses
As of December 31, 2013 ($ in millions)		Level 1	Level 2	Level 3	Total	2013
Commercial loans held for sale^(a)	$	-	-	3	3	(7)
Commercial and industrial loans		-	-	443	443	(281)
Commercial mortgage loans		-	-	61	61	(41)
Commercial construction loans		-	-	16	16	(10)
MSRs		-	-	967	967	192
OREO		-	-	87	87	(45)
Private equity investment funds		-	-	181	181	(4)
Total	$	-	-	1,758	1,758	(196)

		Fair Value Measurements Using				Total Losses
As of December 31, 2012 ($ in millions)		Level 1	Level 2	Level 3	Total	2012
Commercial loans held for sale^(a)	$	-	-	9	9	(13)
Commercial and industrial loans		-	-	83	83	(122)
Commercial mortgage loans		-	-	46	46	(50)
Commercial construction loans		-	-	4	4	(22)
MSRs		-	-	697	697	(103)
OREO		-	-	165	165	(74)
Total	$	-	-	1,004	1,004	(384)

Includes commercial nonaccrual loans held for sale.

Aggregate Fair Values And Principal Balances On Residential Mortgage Loans [Text Block]

The following table summarizes the difference between the fair value and the principal balance for residential mortgage loans measured at fair value as of:

		Aggregate	Aggregate Unpaid
($ in millions)		Fair Value	Principal Balance	Difference
December 31, 2013
Residential mortgage loans measured at fair value	$	982	962	20
Past due loans of 90 days or more		1	2	(1)
Nonaccrual loans		2	2	-

December 31, 2012
Residential mortgage loans measured at fair value	$	2,932	2,775	157
Past due loans of 90 days or more		3	4	(1)
Nonaccrual loans		-	1	(1)

Carrying Amounts and Estimated Fair Values for Certain Financial Instruments

The following tables summarize the carrying amounts and estimated fair values for certain financial instruments, excluding financial instruments measured at fair value on a recurring basis:

		Net Carrying	Fair Value Measurements Using			Total
As of December 31, 2013 ($ in millions)		Amount	Level 1	Level 2	Level 3	Fair Value
Financial assets:
Cash and due from banks	$	3,178	3,178	-	-	3,178
Other securities		751	-	751	-	751
Held-to-maturity securities		208	-	-	208	208
Other short-term investments		5,116	5,116	-	-	5,116
Loans held for sale		54	-	-	54	54
Portfolio loans and leases:
Commercial and industrial loans		38,549	-	-	39,804	39,804
Commercial mortgage loans		7,854	-	-	7,430	7,430
Commercial construction loans		1,013	-	-	856	856
Commercial leases		3,572	-	-	3,261	3,261
Residential mortgage loans^(a)		12,399	-	-	11,541	11,541
Home equity		9,152	-	-	9,181	9,181
Automobile loans		11,961	-	-	11,748	11,748
Credit card		2,202	-	-	2,380	2,380
Other consumer loans and leases		348	-	-	361	361
Unallocated allowance for loan and lease losses		(110)	-	-	-	-
Total portfolio loans and leases, net^(a)		86,940	-	-	86,562	86,562
Financial liabilities:
Deposits		99,275	-	99,288	-	99,288
Federal funds purchased		284	284	-	-	284
Other short-term borrowings		1,380	-	1,380	-	1,380
Long-term debt		9,633	9,645	577	-	10,222

Excludes $92 of residential mortgage loans measured at fair value on a recurring basis.

		Net Carrying	Fair Value Measurements Using			Total
As of December 31, 2012 ($ in millions)		Amount	Level 1	Level 2	Level 3	Fair Value
Financial assets:
Cash and due from banks	$	2,441	2,441	-	-	2,441
Other securities		844	-	844	-	844
Held-to-maturity securities		284	-	-	284	284
Other short-term investments		2,421	2,421	-	-	2,421
Loans held for sale		83	-	-	83	83
Portfolio loans and leases:
Commercial and industrial loans		35,236	-	-	36,496	36,496
Commercial mortgage loans		8,770	-	-	8,020	8,020
Commercial construction loans		665	-	-	505	505
Commercial leases		3,481	-	-	3,310	3,310
Residential mortgage loans^(a)		11,712	-	-	11,532	11,532
Home equity		9,875	-	-	9,798	9,798
Automobile loans		11,944	-	-	12,076	12,076
Credit card		2,010	-	-	2,139	2,139
Other consumer loans and leases		270	-	-	288	288
Unallocated allowance for loan and lease losses		(111)	-	-	-	-
Total portfolio loans and leases, net^(a)		83,852	-	-	84,164	84,164
Financial liabilities:
Deposits		89,517	-	85,592	-	85,592
Federal funds purchased		901	901	-	-	901
Other short-term borrowings		6,280	-	6,280	-	6,280
Long-term debt		7,085	6,925	884	-	7,809

Excludes $76 of residential mortgage loans measured at fair value on a recurring basis.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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- Definition

Tabular disclosure of the application of the fair value option for measurement and reporting of eligible financial assets and liabilities (as defined), as well as certain other eligible items (as defined) included in the statement of financial position, whether such option is elected for a single eligible item or a group of similar eligible items and is in addition to other disclosures concerning fair value which the company may be required to provide. Such disclosure might be expected to include: (1) for items included in the statement of financial position: (a) for each line item in the statement of financial position that includes an item or items for which the fair value option has been elected, provide the aggregate carrying amount of ineligible items included in each line item in the balance sheet, if any; (b) the difference between the aggregate fair value and the aggregate unpaid principal balance (assuming contractual principal amounts and fair value option elected) of: (i) loans and long-term receivables (other than securities otherwise reported at fair value) and (ii) long-term debt instruments; (c) for loans held as assets for which the fair value option has been elected: (i) the aggregate fair value of loans that are 90 days or more past due, (ii) if the policy is to recognize interest income separately from other changes in fair value, the aggregate fair value of loans in nonaccrual status, and (iii) the difference between the aggregate fair value and the aggregate unpaid principal balance for loans that are 90 days or more past due, in nonaccrual status, or both; (2) for items included in the income statement: (a) the amounts of gains and losses from fair value changes included in earnings and in which line in the income statement those gains and losses are reported whether or not combined with gains and losses from items required to be accounted for at fair value; (b) for loans and other receivables held as assets, the estimated amount of gains or losses included in earnings attributable to changes in instrument-specific credit risk; (c) for liabilities with fair values that have been significantly affected during the reporting period by changes in the instrument-specific credit risk, the estimated amount of gains and losses from fair value changes included in earnings that are attributable to changes in the instrument-specific credit risk; and (3) certain other disclosures as required or determined to be provided.

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