Loans and Leases

9 Months Ended

Sep. 30, 2014

Loans and Leases Receivable

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 loans and leases 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)			2014	2013
Loans and leases held for sale:
	Commercial and industrial loans	$	39	31
	Commercial mortgage loans		2	3
	Commercial construction loans		2	2
	Commercial leases		1	1
	Residential mortgage loans		579	890
	Other consumer loans and leases		18	17
Total loans and leases held for sale		$	641	944
Portfolio loans and leases:
	Commercial and industrial loans	$	41,072	39,316
	Commercial mortgage loans		7,564	8,066
	Commercial construction loans		1,702	1,039
	Commercial leases		3,554	3,625
Total commercial loans and leases			53,892	52,046
	Residential mortgage loans		12,941	12,680
	Home equity		8,987	9,246
	Automobile loans		12,121	11,984
	Credit card		2,317	2,294
	Other consumer loans and leases		366	364
Total consumer loans and leases			36,732	36,568
Total portfolio loans and leases		$	90,624	88,614

Total portfolio loans and leases are recorded net of unearned income, which totaled $654million as of September 30, 2014 and$700million as of December 31, 2013.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 $149 million and$111 million as of September 30, 2014and December 31, 2013,respectively.

The Bancorp's FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $11.0 billion and $10.9 billion at September 30, 2014 and December 31, 2013, respectively, pledged at the FHLB, and loans of $33.6billion and $33.5 billion at September 30, 2014 and December 31, 2013, 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)		2014	2013		2014	2013
Commercial and industrial loans	$	41,111	39,347	$	-	-
Commercial mortgage loans		7,566	8,069		1	-
Commercial construction loans		1,704	1,041		-	-
Commercial leases		3,555	3,626		-	-
Residential mortgage loans		13,520	13,570		57	66
Home equity		8,987	9,246		-	-
Automobile loans		12,121	11,984		8	8
Credit card		2,317	2,294		21	29
Other consumer loans and leases		384	381		-	-
Total loans and leases	$	91,265	89,558	$	87	103
Less: Loans held for sale	$	641	944
Total portfolio loans and leases	$	90,624	88,614
The following table presents a summary of net charge-offs (recoveries):
		For the three months			For the nine months
		ended September 30,			ended September 30,
($ in millions)		2014	2013		2014	2013
Commercial and industrial loans	$	50	44	$	177	102
Commercial mortgage loans		5	2		16	39
Commercial construction loans		-	(2)		12	1
Commercial leases		-	-		-	1
Residential mortgage loans		9	12		31	47
Home equity		14	19		49	71
Automobile loans		7	6		20	15
Credit card		23	19		62	57
Other consumer loans and leases		7	9		17	20
Total	$	115	109	$	384	353