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, 2015				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance, beginning of period	$	852	103	241	104	1,300
	Losses charged-off		(54)	(8)	(50)	-	(112)
	Recoveries of losses previously charged-off		9	3	14	-	26
	Provision for loan and lease losses		48	6	26	(1)	79
Balance, end of period		$	855	104	231	103	1,293

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 six months ended June 30, 2015				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Transactions in the ALLL:
	Balance, beginning of period	$	875	104	237	106	1,322
	Losses charged-off		(102)	(17)	(108)	-	(227)
	Recoveries of losses previously charged-off		18	6	26	-	50
	Provision for loan and lease losses		64	11	76	(3)	148
Balance, end of period		$	855	104	231	103	1,293

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

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

					Residential
As of June 30, 2015 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	162	i^(c)	65	53	-	280
	Collectively evaluated for impairment		693		39	178	-	910
	Unallocated		-		-	-	103	103
Total ALLL		$	855		104	231	103	1,293
Loans and leases:^(b)
	Individually evaluated for impairment	$	1,099	i^(c)	603	450	-	2,152
	Collectively evaluated for impairment		55,441		12,150	22,780	-	90,371
	Loans acquired with deteriorated credit quality		-		2	-	-	2
Total portfolio loans and leases		$	56,540		12,755	23,230	-	92,525


					Residential
As of December 31, 2014 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	179	i^(c)	65	61	-	305
	Collectively evaluated for impairment		696		39	176	-	911
	Unallocated		-		-	-	106	106
Total ALLL		$	875		104	237	106	1,322
Loans and leases:^(b)
	Individually evaluated for impairment	$	1,260	i^(c)	518	483	-	2,261
	Collectively evaluated for impairment		52,693		11,761	23,259	-	87,713
	Loans acquired with deteriorated credit quality		-		2	-	-	2
Total portfolio loans and leases		$	53,953		12,281	23,742	-	89,976

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 nonowner-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 at least annually 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 tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class:

			Special
As of June 30, 2015 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	39,780	1,285	1,735	-	42,800
Commercial mortgage owner-occupied loans		3,485	115	229	-	3,829
Commercial mortgage nonowner-occupied loans		3,058	39	213	11	3,321
Commercial construction loans		2,671	18	20	-	2,709
Commercial leases		3,805	45	31	-	3,881
Total commercial loans and leases	$	52,799	1,502	2,228	11	56,540


			Special
As of December 31, 2014 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	38,013	1,352	1,400	-	40,765
Commercial mortgage owner-occupied loans		3,430	137	267	-	3,834
Commercial mortgage nonowner-occupied loans		3,198	76	284	7	3,565
Commercial construction loans		1,966	65	38	-	2,069
Commercial leases		3,678	9	33	-	3,720
Total commercial loans and leases	$	50,285	1,639	2,022	7	53,953

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 while the performing versus nonperforming status is presented in the table below. Refer to the nonaccrual loans and leases section of Note 1 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2014 for additional delinquency and nonperforming information.


The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class, disaggregated into performing versus nonperforming status as of:

		June 30, 2015		December 31, 2014
($ in millions)		Performing	Nonperforming	Performing	Nonperforming
Residential mortgage loans^(a)	$	12,693	62	12,204	77
Home equity		8,459	88	8,793	93
Automobile loans		11,907	2	12,036	1
Credit card		2,242	36	2,360	41
Other consumer loans and leases		496	-	418	-
Total residential mortgage and consumer loans and leases^(a)	$	35,797	188	35,811	212


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, 2015			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 loans and leases:
	Commercial and industrial loans	$	42,683	39	78	117	42,800	2
	Commercial mortgage owner-occupied loans		3,780	10	39	49	3,829	-
	Commercial mortgage nonowner-occupied loans		3,296	2	23	25	3,321	-
	Commercial construction loans		2,709	-	-	-	2,709	-
	Commercial leases		3,879	2	-	2	3,881	-
Residential mortgage loans^{(a) (b)}			12,614	35	106	141	12,755	43
Consumer loans and leases:
	Home equity		8,398	81	68	149	8,547	-
	Automobile loans		11,840	59	10	69	11,909	8
	Credit card		2,229	26	23	49	2,278	17
	Other consumer loans and leases		495	1	-	1	496	-
Total portfolio loans and leases^(a)		$	91,923	255	347	602	92,525	70


				Past Due
			Current		90 Days			90 Days Past
As of December 31, 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 loans and leases:
	Commercial and industrial loans	$	40,651	29	85	114	40,765	-
	Commercial mortgage owner-occupied loans		3,774	7	53	60	3,834	-
	Commercial mortgage nonowner-occupied loans		3,537	11	17	28	3,565	-
	Commercial construction loans		2,069	-	-	-	2,069	-
	Commercial leases		3,717	3	-	3	3,720	-
Residential mortgage loans^{(a) (b)}			12,109	38	134	172	12,281	56
Consumer loans and leases:
	Home equity		8,710	100	76	176	8,886	-
	Automobile loans		11,953	74	10	84	12,037	8
	Credit card		2,335	34	32	66	2,401	23
	Other consumer loans and leases		417	1	-	1	418	-
Total portfolio loans and leases^(a)		$	89,272	297	407	704	89,976	87

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 TDR. 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 TDR:

			Unpaid
As of June 30, 2015			Principal	Recorded
($ in millions)			Balance	Investment		ALLL
With a related ALLL recorded:
Commercial loans and leases:
	Commercial and industrial loans	$	520	471		132
	Commercial mortgage owner-occupied loans^(b)		39	30		7
	Commercial mortgage nonowner-occupied loans		68	56		4
	Commercial construction loans		31	31		1
	Commercial leases		7	7		2
Restructured residential mortgage loans			418	413		65
Restructured consumer loans and leases:
	Home equity		239	238		36
	Automobile loans		18	18		2
	Credit card		67	67		15
Total impaired loans and leases with a related ALLL		$	1,407	1,331		264
With no related ALLL recorded:
Commercial loans and leases:
	Commercial and industrial loans	$	308	237		-
	Commercial mortgage owner-occupied loans		61	56		-
	Commercial mortgage nonowner-occupied loans		156	151		-
	Commercial construction loans		30	30		-
	Commercial leases		2	2		-
Restructured residential mortgage loans			220	190		-
Restructured consumer loans and leases:
	Home equity		127	123		-
	Automobile loans		4	4		-
Total impaired loans and leases with no related ALLL			908	793		-
Total impaired loans and leases		$	2,315	2,124	a^(a)	264


			Unpaid
As of December 31, 2014			Principal	Recorded
($ in millions)			Balance	Investment		ALLL
With a related ALLL recorded:
Commercial loans and leases:
	Commercial and industrial loans	$	598	486		149
	Commercial mortgage owner-occupied loans^(b)		54	46		14
	Commercial mortgage nonowner-occupied loans		69	57		4
	Commercial construction loans		18	15		-
	Commercial leases		3	3		2
Restructured residential mortgage loans			388	383		65
Restructured consumer loans and leases:
	Home equity		203	201		42
	Automobile loans		19	19		3
	Credit card		78	78		16
Total impaired loans and leases with a related ALLL		$	1,430	1,288		295
With no related ALLL recorded:
Commercial loans and leases:
	Commercial and industrial loans	$	311	276		-
	Commercial mortgage owner-occupied loans		72	68		-
	Commercial mortgage nonowner-occupied loans		251	231		-
	Commercial construction loans		48	48		-
	Commercial leases		2	2		-
Restructured residential mortgage loans			155	135		-
Restructured consumer loans and leases:
	Home equity		183	180		-
	Automobile loans		5	5		-
Total impaired loans and leases with no related ALLL			1,027	945		-
Total impaired loans and leases		$	2,457	2,233	a^(a)	295


The following tables summarize the Bancorp’s average impaired loans and leases by class and interest income by class:

			For the three months ended		For the six months ended
			June 30, 2015		June 30, 2015
			Average	Interest	Average	Interest
			Recorded	Income	Recorded	Income
($ in millions)			Investment	Recognized	Investment	Recognized
Commercial loans and leases:
	Commercial and industrial loans	$	731	6	741	12
	Commercial mortgage owner-occupied loans^(a)		98	-	103	1
	Commercial mortgage nonowner-occupied loans		222	2	244	3
	Commercial construction loans		61	-	62	1
	Commercial leases		7	-	6	-
Restructured residential mortgage loans			579	6	563	11
Restructured consumer loans and leases:
	Home equity		363	3	370	7
	Automobile loans		22	-	23	-
	Credit card		69	1	72	3
Total impaired loans and leases		$	2,152	18	2,184	38


			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 loans and leases:
	Commercial and industrial loans	$	744		7		$	788		12
	Commercial mortgage owner-occupied loans^(a)		146		1			154		2
	Commercial mortgage nonowner-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 loans and leases:
	Home equity		395		6			401		11
	Automobile loans		24		-			24		-
	Credit card		55		1			56		2
Total impaired loans and leases			$	3,030		32		$	3,117		59


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)			2015	2014
Commercial loans and leases:
	Commercial and industrial loans	$	178	228
	Commercial mortgage owner-occupied loans^(a)		64	78
	Commercial mortgage nonowner-occupied loans		42	57
	Commercial leases		3	4
Total commercial loans and leases			287	367
Residential mortgage loans			62	77
Consumer loans and leases:
	Home equity		88	93
	Automobile loans		2	1
	Credit card		36	41
Total consumer loans and leases			126	135
Total nonperforming loans and leases^{(b) (c)}		$	475	579
OREO and other repossessed property^(d)		$	151	165	a

The Bancorp's recorded investment of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction was $331 million as of June 30, 2015.

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, 2014 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 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, 2015, the Bancorp had $65 million and $26 million in line of credit and letter of credit commitments, respectively, compared to $63 million and $26 million in line of credit and letter of credit commitments as of December 31, 2014, respectively, to lend additional funds to borrowers whose terms have been modified in a TDR.


The following tables provide a summary of loans (by class) modified in a TDR by the Bancorp during the three 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, 2015 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial loans and leases:
	Commercial and industrial loans	27	$	70	7	-
	Commercial mortgage owner-occupied loans	6		7	(1)	-
	Commercial mortgage nonowner-occupied loans	5		4	-	-
Residential mortgage loans		254		35	3	-
Consumer loans and leases:
	Home equity	67		3	(1)	-
	Automobile loans	128		2	-	-
	Credit card	2,981		15	3	3
Total portfolio loans and leases		3,468	$	136	11	3


			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 loans and leases:
	Commercial and industrial loans	44	$	100	6	-
	Commercial mortgage owner-occupied loans	4		39	-	-
	Commercial mortgage nonowner-occupied loans	4		1	-	-
Residential mortgage loans		262		39	2	-
Consumer loans and leases:
	Home equity	71		3	-	-
	Automobile loans	143		2	-	-
	Credit card	1,713		11	2	-
Total portfolio loans and leases		2,241	$	195	10	-


The following tables provide 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, 2015 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial loans and leases:
	Commercial and industrial loans	48	$	88	-	3
	Commercial mortgage owner-occupied loans	13		15	(2)	-
	Commercial mortgage nonowner-occupied loans	11		7	-	-
Residential mortgage loans		554		77	4	-
Consumer loans and leases:
	Home equity	143		7	(1)	-
	Automobile loans	259		4	-	-
	Credit card	6,648		34	7	3
Total portfolio loans and leases		7,676	$	232	8	6


			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 loans and leases:
	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 loans and leases:
	Home equity	106		4	-	-
	Automobile loans	259		4	-	-
	Credit card	3,664		23	4	-
Total portfolio loans and leases		4,698	$	292	9	-

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 ALLL 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, automobile 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. The Bancorp fully reserves for credit card loans modified in a TDR that subsequently default.


The following tables provide a summary of subsequent defaults of TDRs that occurred during the three months ended June 30, 2015 and 2014 and within 12 months of the restructuring date:

		Number of		Recorded
June 30, 2015 ($ in millions)^(a)		Contracts		Investment
Commercial loans and leases:
	Commercial and industrial loans	4	$	7
Residential mortgage loans		30		4
Consumer loans and leases:
	Home equity	3		-
	Automobile loans	4		-
	Credit card	557		3
Total portfolio loans and leases		598	$	14


The following tables provide a summary of subsequent defaults that occurred during the six months ended June 30, 2015 and 2014 and within 12 months of the restructuring date:

		Number of		Recorded
June 30, 2015 ($ in millions)^(a)		Contracts		Investment
Commercial loans and leases:
	Commercial and industrial loans	4	$	7
Residential mortgage loans		70		9
Consumer loans and leases:
	Home equity	8		-
	Automobile loans	8		-
	Credit card	1,145		6
Total portfolio loans and leases		1,235	$	22


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