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, 2014				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance, beginning of period	$	981	180	217	105	1,483
	Losses charged off		(55)	(11)	(61)	-	(127)
	Recoveries of losses previously charged off		7	3	16	-	26
	Provision for loan and lease losses		28	2	49	(3)	76
Balance, end of period		$	961	174	221	102	1,458

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 six months ended June 30, 2014				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance, beginning of period	$	1,058	189	225	110	1,582
	Losses charged off		(164)	(30)	(124)	-	(318)
	Recoveries of losses previously charged off		13	7	28	-	48
	Provision for loan and lease losses		54	8	92	(8)	146
Balance, end of period		$	961	174	221	102	1,458

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

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

					Residential
As of June 30, 2014 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	204	1^(c)	134	54	-	392
	Collectively evaluated for impairment		757		40	167	-	964
	Unallocated		-		-	-	102	102
Total ALLL		$	961		174	221	102	1,458
Loans and leases:^(b)
	Individually evaluated for impairment	$	1,274	1^(c)	1,263	475	-	3,012
	Collectively evaluated for impairment		52,821		11,286	23,262	-	87,369
	Loans acquired with deteriorated credit quality		-		4	-	-	4
Total portfolio loans and leases		$	54,095		12,553	23,737	-	90,385


					Residential
As of December 31, 2013 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	186	1^(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	1^(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

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-off, 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, 2014 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	38,426	1,363	1,502	8	41,299
Commercial mortgage owner occupied loans		3,621	204	339	1	4,165
Commercial mortgage non-owner occupied loans		3,063	199	377	1	3,640
Commercial construction loans		1,318	51	55	-	1,424
Commercial leases		3,492	45	30	-	3,567
Total	$	49,920	1,862	2,303	10	54,095


			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

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. Refer to the nonaccrual section of Note 1 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2013 for additional delinquency and nonperforming information.

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, 2014		December 31, 2013
($ in millions)		Performing	Nonperforming	Performing	Nonperforming
Residential mortgage loans^(a)	$	12,435	118	12,423	165
Home equity		8,963	93	9,153	93
Automobile loans		12,049	1	11,982	2
Credit card		2,229	32	2,261	33
Other consumer loans and leases		370	-	364	-
Total	$	36,046	244	36,183	293

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, 2014			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	$	41,188	19	92	111	41,299	-
	Commercial mortgage owner occupied loans		4,088	8	69	77	4,165	-
	Commercial mortgage non-owner occupied loans		3,603	3	34	37	3,640	-
	Commercial construction loans		1,414	2	8	10	1,424	-
	Commercial leases		3,565	-	2	2	3,567	-
Residential mortgage loans^{(a) (b)}			12,300	76	177	253	12,553	60
Consumer:
	Home equity		8,893	85	78	163	9,056	-
	Automobile loans		11,993	48	9	57	12,050	8
	Credit card		2,200	31	30	61	2,261	26
	Other consumer loans and leases		368	2	-	2	370	-
Total portfolio loans and leases^(a)		$	89,612	274	499	773	90,385	94


				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

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, 2014			Principal	Recorded
($ in millions)			Balance	Investment		Allowance
With a related allowance recorded:
Commercial:
	Commercial and industrial loans	$	640	536		179
	Commercial mortgage owner occupied loans^(b)		56	46		6
	Commercial mortgage non-owner occupied loans		103	79		5
	Commercial construction loans		48	45		1
	Commercial leases		4	4		3
Restructured residential mortgage loans			1,033	999		134
Restructured consumer:
	Home equity		354	354		41
	Automobile loans		21	20		3
	Credit card		54	54		10
	Other consumer loans and leases		4	3		-
Total impaired loans and leases with a related allowance		$	2,317	2,140		382
With no related allowance recorded:
Commercial:
	Commercial and industrial loans	$	271	223		-
	Commercial mortgage owner occupied loans		105	94		-
	Commercial mortgage non-owner occupied loans		189	174		-
	Commercial construction loans		61	42		-
	Commercial leases		3	3		-
Restructured residential mortgage loans			301	264		-
Restructured consumer:
	Home equity		44	42		-
	Automobile loans		3	2		-
Total impaired loans and leases with no related allowance			977	844		-
Total impaired loans and leases		$	3,294	2,984	1^(a)	382


			Unpaid
As of December 31, 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	1^(a)	367

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, 2014			June 30, 2014
			Average	Interest		Average	Interest
			Recorded	Income		Recorded	Income
($ in millions)			Investment	Recognized		Investment	Recognized
Commercial:
	Commercial and industrial loans	$	744	7	$	788	12
	Commercial mortgage owner occupied loans^(a)		146	1		154	2
	Commercial mortgage non-owner occupied loans		259	2		266	4
	Commercial construction loans		100	1		107	1
	Commercial leases		12	-		17	-
Restructured residential mortgage loans			1,295	14		1,304	27
Restructured consumer:
	Home equity		395	6		401	11
	Automobile loans		24	-		24	-
	Credit card		55	1		56	2
	Other consumer loans and leases		-	-		-	-
Total impaired loans and leases		$	3,030	32	$	3,117	59

			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


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)			2014	2013
Commercial:
	Commercial and industrial loans	$	246	281
	Commercial mortgage owner occupied loans^(a)		91	95
	Commercial mortgage non-owner occupied loans		48	48
	Commercial construction loans		8	29
	Commercial leases		3	5
Total commercial loans and leases			396	458
Residential mortgage loans			118	166
Consumer:
	Home equity		93	93
	Automobile loans		1	1
	Credit card		32	33
Total consumer loans and leases			126	127
Total nonperforming loans and leases^{(b) (c)}		$	640	751
OREO and other repossessed property^(d)		$	192	229

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 a loan 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 Annual Report on Form 10-K for the year ended December 31, 2013 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 expected to be collected on the modified loan, discounted at the original effective yield of the 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, upon a modification that reduces the stated interest rate on a loan the Bancorp often recognizes an impairment loss as an increase to the ALLL.

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, 2014 and December 31, 2013, the Bancorp had $4 million and $46 million in line of credit commitments and $87 million and $40 million in letter of credit commitments, respectively, 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
		Number of loans	in loans modified		Increase	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
June 30, 2014 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial:
	Commercial and industrial loans	44	$	100	6	-
	Commercial mortgage owner occupied loans	4		39	-	-
	Commercial mortgage non-owner occupied loans	4		1	-	-
Residential mortgage loans		262		39	2	-
Consumer:
	Home equity	71		3	-	-
	Automobile loans	143		2	-	-
	Credit card	1,713		11	2	-
Total portfolio loans and leases		2,241	$	195	10	-

			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	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	-

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, 2014 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial:
	Commercial and industrial loans	66	$	119	2	-
	Commercial mortgage owner-occupied loans	20		51	(1)	-
	Commercial mortgage nonowner-occupied loans	11		7	(1)	-
Residential mortgage loans		572		84	5	-
Consumer:
	Home equity	106		4	-	-
	Automobile loans	259		4	-	-
	Credit card	3,664		23	4	-
Total portfolio loans and leases		4,698	$	292	9	-

			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

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, loss rates that are applied 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, 2014 and 2013 and within 12 months of the restructuring date:

		Number of		Recorded
June 30, 2014 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial and industrial loans	3	$	6
Residential mortgage loans		40		6
Consumer:
	Home equity	10		1
	Automobile loans	2		-
	Credit card	363		3
Total portfolio loans and leases		418	$	16

		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

The following table provides a summary of subsequent defaults that occurred during the six months ended June 30, 2014 and 2013 and within 12 months of the restructuring date:

		Number of		Recorded
June 30, 2014 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial and industrial loans	9	$	20
	Commercial mortgage owner-occupied loans	2		3
Residential mortgage loans		81		12
Consumer:
	Home equity	20		1
	Automobile loans	4		-
	Credit card	870		6
Total portfolio loans and leases		986	$	42

		Number of		Recorded
June 30, 2013 ($ in millions)^(a)		Contracts		Investment
Commercial:
	Commercial and industrial loans	2	$	-
	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