The Bancorp measures certain financial assets and liabilities at fair value in accordance with U.S. GAAP, which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. U.S. GAAP also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the instrument's fair value measurement. For more information regarding the fair value hierarchy, refer to Note 1 in the Bancorp's Annual Report on Form 10-K for the year ended December 31, 2014.

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
June 30, 2015 ($ in millions)		Level 1^(c)	Level 2^(c)	Level 3	Total Fair Value
Assets:
Available-for-sale and other securities:
U.S. Treasury and federal agencies securities	$	25	1,590	-	1,615
Obligations of states and political subdivisions securities		-	177	-	177
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	15,954	-	15,954
Agency commercial mortgage-backed securities		-	5,751	-	5,751
Non-agency commercial mortgage-backed securities		-	2,414	-	2,414
Asset-backed securities and other debt securities		-	1,374	-	1,374
Equity securities^(a)		81	20	-	101
Available-for-sale and other securities^(a)		106	27,280	-	27,386

Trading securities:
U.S. Treasury and federal agencies securities		-	9	-	9
Obligations of states and political subdivisions securities		-	17	-	17
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	4	-	4
Asset-backed securities and other debt securities		-	13	-	13
Equity securities		327	-	-	327
Trading securities		327	43	-	370

Residential mortgage loans held for sale		-	628	-	628
Residential mortgage loans^(b)		-	-	178	178
Derivative assets:
Interest rate contracts		7	861	14	882
Foreign exchange contracts		-	495	-	495
Equity contracts		-	-	500	500
Commodity contracts		32	202	-	234
Derivative assets		39	1,558	514	2,111
Total assets	$	472	29,509	692	30,673

Liabilities:
Derivative liabilities:
Interest rate contracts	$	1	277	4	282
Foreign exchange contracts		-	441	-	441
Equity contracts		-	-	55	55
Commodity contracts		20	203	-	223
Derivative liabilities		21	921	59	1,001

Short positions		19	4	-	23
Total liabilities	$	40	925	59	1,024

	Fair Value Measurements Using
December 31, 2014 ($ in millions)		Level 1^(c)	Level 2^(c)	Level 3	Total Fair Value
Assets:
Available-for-sale and other securities:
U.S. Treasury and federal agencies securities	$	25	1,607	-	1,632
Obligations of states and political subdivisions securities		-	192	-	192
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	12,404	-	12,404
Agency commercial mortgage-backed securities		-	4,565	-	4,565
Non-agency commercial mortgage-backed securities		-	1,550	-	1,550
Asset-backed securities and other debt securities		-	1,362	-	1,362
Equity securities^(a)		84	19	-	103
Available-for-sale and other securities^(a)		109	21,699	-	21,808

Trading securities:
U.S. Treasury and federal agencies securities		-	14	-	14
Obligations of states and political subdivisions securities		-	8	-	8
Mortgage-backed securities:
Agency residential mortgage-backed securities		-	9	-	9
Asset-backed securities and other debt securities		-	13	-	13
Equity securities		316	-	-	316
Trading securities		316	44	-	360

Residential mortgage loans held for sale		-	561	-	561
Residential mortgage loans^(b)		-	-	108	108
Derivative assets:
Interest rate contracts		-	888	12	900
Foreign exchange contracts		-	417	-	417
Equity contracts		-	-	415	415
Commodity contracts		68	280	-	348
Derivative assets		68	1,585	427	2,080
Total assets	$	493	23,889	535	24,917

Liabilities:
Derivative liabilities:
Interest rate contracts	$	6	276	2	284
Foreign exchange contracts		-	372	-	372
Equity contracts		-	-	49	49
Commodity contracts		58	280	-	338
Derivative liabilities		64	928	51	1,043

Short positions		16	5	-	21
Total liabilities	$	80	933	51	1,064

The following is a description of the valuation methodologies used for significant instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy.

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include government bonds and exchange traded equities. If quoted market prices are not available, then fair values are estimated using pricing models, quoted prices of securities with similar characteristics, or DCFs. Examples of such instruments, which are classified within Level 2 of the valuation hierarchy, include federal agencies, obligations of states and political subdivisions, agency residential mortgage-backed securities, agency and non-agency commercial mortgage-backed securities and asset-backed securities and other debt securities. Corporate bonds are included in asset-backed securities and other debt securities in the previous table. Federal agencies, obligations of states and political subdivisions, agency residential mortgage-backed securities, agency and non-agency commercial mortgage-backed securities and asset-backed securities and other debt securities are generally valued using a market approach based on observable prices of securities with similar characteristics.

For residential mortgage loans held for sale for which the fair value election has been made, fair value is estimated based upon mortgage-backed securities prices and spreads to those prices or, for certain ARM loans, DCF models that may incorporate the anticipated portfolio composition, credit spreads of asset-backed securities with similar collateral and market conditions. The anticipated portfolio composition includes the effect of interest rate spreads and discount rates due to loan characteristics such as the state in which the loan was originated, the loan amount and the ARM margin. Residential mortgage loans held for sale that are valued based on mortgage-backed securities prices are classified within Level 2 of the valuation hierarchy as the valuation is based on external pricing for similar instruments. ARM loans classified as held for sale are also classified within Level 2 of the valuation hierarchy due to the use of observable inputs in the DCF model. These observable inputs include interest rate spreads from agency mortgage-backed securities, market rates and observable discount rates.

Residential mortgage loans held for sale that are reclassified to held for investment are transferred from Level 2 to Level 3 of the fair value hierarchy. It is the Bancorp's policy to value any transfers between levels of the fair value hierarchy based on end of period fair values.

For residential mortgage loans for which the fair value election has been made, and that are reclassified from held for sale to held for investment, the fair value estimation is based on mortgage-backed securities prices, interest rate risk and an internally developed credit component. Therefore, these loans are classified within Level 3 of the valuation hierarchy. An adverse change in the loss rate or severity assumption would result in a decrease in fair value of the related loan. The Secondary Marketing department, which reports to the Bancorp's Chief Operating Officer, in conjunction with the Consumer Credit Risk department, which reports to the Bancorp's Chief Risk Officer, are responsible for determining the valuation methodology for residential mortgage loans held for investment. The Secondary Marketing department reviews loss severity assumptions quarterly to determine if adjustments are necessary based on decreases in observable housing market data. This group also reviews trades in comparable benchmark securities and adjusts the values of loans as necessary. Consumer Credit Risk is responsible for the credit component of the fair value which is based on internally developed loss rate models that take into account historical loss rates and loss severities based on underlying collateral values.

Exchange-traded derivatives valued using quoted prices and certain over-the-counter derivatives valued using active bids are classified within Level 1 of the valuation hierarchy. Most of the Bancorp's derivative contracts are valued using DCF or other models that incorporate current market interest rates, credit spreads assigned to the derivative counterparties and other market parameters and, therefore, are classified within Level 2 of the valuation hierarchy. Such derivatives include basic and structured interest rate, foreign exchange and commodity swaps and options. Derivatives that are valued based upon models with significant unobservable market parameters are classified within Level 3 of the valuation hierarchy. At June 30, 2015 and December 31, 2014, derivatives classified as Level 3, which are valued using models containing unobservable inputs, consisted primarily of a warrant associated with the initial sale of the Bancorp's 51% interest in Vantiv Holding, LLC to Advent International and a total return swap associated with the Bancorp's sale of Visa, Inc. Class B shares. Level 3 derivatives also include IRLCs, which utilize internally generated loan closing rate assumptions as a significant unobservable input in the valuation process.

The warrant allows the Bancorp to purchase approximately 20 million incremental nonvoting units in Vantiv Holding, LLC at an exercise price of $15.98 per unit and requires settlement under certain defined conditions involving change of control. The fair value of the warrant is calculated in conjunction with a third party valuation provider by applying Black-Scholes option valuation models using probability weighted scenarios which contain the following inputs: Vantiv, Inc. stock price, strike price per the Warrant Agreement and several unobservable inputs, such as expected term, expected volatility and expected dividend rate.

For the warrant, an increase in the expected term (years) and the expected volatility assumptions would result in an increase in the fair value; conversely, a decrease in these assumptions would result in a decrease in the fair value. The Accounting and Treasury departments, both of which report to the Bancorp's Chief Financial Officer, determined the valuation methodology for the warrant. Accounting and Treasury review changes in fair value on a quarterly basis for reasonableness based on changes in historical and implied volatilities, expected terms, probability weightings of the related scenarios, and other assumptions.

Under the terms of the total return swap, the Bancorp will make or receive payments based on subsequent changes in the conversion rate of the Visa, Inc. Class B shares into Class A shares. Additionally, the Bancorp will make a quarterly payment based on Visa's stock price and the conversion rate of the Visa, Inc. Class B shares into Class A shares until the date on which the Covered Litigation is settled. The fair value of the total return swap was calculated using a DCF model based on unobservable inputs consisting of management's estimate of the probability of certain litigation scenarios, the timing of the resolution of the Covered Litigation and Visa litigation loss estimates in excess, or shortfall, of the Bancorp's proportional share of escrow funds.

An increase in the loss estimate or a delay in the resolution of the Covered Litigation would result in an increase in fair value; conversely, a decrease in the loss estimate or an acceleration of the resolution of the Covered Litigation would result in a decrease in fair value. The Accounting and Treasury departments determined the valuation methodology for the total return swap. Accounting and Treasury review the changes in fair value on a quarterly basis for reasonableness based on Visa stock price changes, litigation contingencies, and escrow funding.

The net fair value asset of the IRLCs at June 30, 2015 was $13 million. Immediate decreases in current interest rates of 25 bps and 50 bps would result in increases in the fair value of the IRLCs of approximately $8 million and $15 million, respectively. Immediate increases of current interest rates of 25 bps and 50 bps would result in decreases in the fair value of the IRLCs of approximately $8 million and $17 million, respectively. The decrease in fair value of IRLCs due to immediate 10% and 20% adverse changes in the assumed loan closing rates would be approximately $1 million and $3 million, respectively, and the increase in fair value due to immediate 10% and 20% favorable changes in the assumed loan closing rates would be approximately $1 million and $3 million, respectively. These sensitivities are hypothetical and should be used with caution, as changes in fair value based on a variation in assumptions typically cannot be extrapolated because the relationship of the change in assumptions to the change in fair value may not be linear.

The Consumer Line of Business Finance department, which reports to the Bancorp's Chief Financial Officer, and the aforementioned Secondary Marketing department are responsible for determining the valuation methodology for IRLCs. Secondary Marketing, in conjunction with a third party valuation provider, periodically review loan closing rate assumptions and recent loan sales to determine if adjustments are needed for current market conditions not reflected in historical data.

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 three months ended June 30, 2015		Trading	Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Securities	Loans	Net^(a)	Net^(a)	Fair Value
Beginning balance	$	-	126	17	425		568
Total gains (losses) (realized/unrealized):
Included in earnings		-	(1)	17	13		29
Sales		-	-	(1)	-		(1)
Settlements		-	(8)	(23)	7		(24)
Transfers into Level 3^(b)		-	61	-	-		61
Ending balance	$	-	178	10	445		633
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 June 30, 2015^(c)	$	-	(1)	13	13		25

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Residential	Interest Rate	Equity
For the three months ended June 30, 2014		Trading	Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Securities	Loans	Net^(a)	Net^(a)	Fair Value
Beginning balance	$	1	103	13	305		422
Total gains (realized/unrealized):
Included in earnings		-	1	37	48		86
Settlements		-	(5)	(35)	5		(35)
Ending balance	$	1	99	15	358		473
The amount of total gains for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at June 30, 2014^(b)	$	-	1	16	48		65

	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Residential	Interest Rate	Equity
For the six months ended June 30, 2015		Trading	Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Securities	Loans	Net^(a)	Net^(a)	Fair Value
Beginning balance	$	-	108	10	366		484
Total gains (realized/unrealized):
Included in earnings		-	1	52	66		119
Sales		-	-	(1)	-		(1)
Settlements		-	(15)	(51)	13		(53)
Transfers into Level 3^(b)		-	84	-	-		84
Ending balance	$	-	178	10	445		633
The amount of total gains for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at June 30, 2015^(c)	$	-	1	14	66		81


	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
			Residential	Interest Rate	Equity
For the six months ended June 30, 2014		Trading	Mortgage	Derivatives,	Derivatives,	Total
($ in millions)		Securities	Loans	Net^(a)	Net^(a)	Fair Value
Beginning balance	$	1	92	8	336	$	437
Total gains (realized/unrealized):
Included in earnings		-	3	74	13		90
Settlements		-	(8)	(67)	9		(66)
Transfers into Level 3^(b)		-	12	-	-		12
Ending balance	$	1	99	15	358	$	473
The amount of total gains for the period
included in earnings attributable to the change in
unrealized gains or losses relating to assets
still held at June 30, 2014^(c)	$	-	3	17	13	$	33

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 Condensed Consolidated Statements of Income as follows:

		For the three months ended		For the six months ended
		June 30,		June 30,
($ in millions)		2015	2014	2015	2014
Mortgage banking net revenue	$	16	39	52	76
Corporate banking revenue		-	-	1	1
Other noninterest income		13	47	66	13
Total gains	$	29	86	119	90

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 June 30, 2015 and 2014 were recorded in the Condensed Consolidated Statements of Income as follows:

		For the three months ended		For the six months ended
		June 30,		June 30,
($ in millions)		2015	2014	2015	2014
Mortgage banking net revenue	$	12	18	14	20
Corporate banking revenue		-	-	1	-
Other noninterest income		13	47	66	13
Total gains	$	25	65	81	33

The following tables present information as of June 30, 2015 and 2014 about significant unobservable inputs related to the Bancorp’s material categories of Level 3 financial assets and liabilities measured on a recurring basis:

As of June 30, 2015 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Residential mortgage loans	$	178	Loss rate model	Interest rate risk factor	(9.7) - 20.0%	2.7%
				Credit risk factor	0 - 85.5%	0.9%
IRLCs, net		13	Discounted cash flow	Loan closing rates	34.3 - 88.9%	70.6%
Stock warrant associated with Vantiv		500	Black-Scholes option	Expected term (years)	2.0 - 14.0	5.9
Holding, LLC			valuation model	Expected volatility^(a)	22.1 - 31.9%	25.9%
Swap associated with the sale of Visa, Inc.		(55)	Discounted cash flow	Timing of the resolution	9/30/16 -	NM
Class B shares				of the Covered Litigation	3/31/2021

As of June 30, 2014 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Residential mortgage loans	$	99	Loss rate model	Interest rate risk factor	(16.6) - 19.5%	4.6%
				Credit risk factor	0 - 62.4%	2.1%
IRLCs, net		17	Discounted cash flow	Loan closing rates	16.5 - 95.0%	62.7%
Stock warrant associated with Vantiv		412	Black-Scholes option	Expected term (years)	2.0 - 15.0	6.0
Holding, LLC			valuation model	Expected volatility^(a)	23.8 - 32.3%	27.3%
Swap associated with the sale of Visa, Inc.		(54)	Discounted cash flow	Timing of the resolution	6/30/2015-	NM
Class B shares				of the Covered Litigation	12/31/2019
				Proportional share of	$1 - 19	$18
				litigation loss estimate in
				excess of escrow funds

Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment.

The following tables provide the fair value hierarchy and carrying amount of all assets that were held as of June 30, 2015 and 2014 and for which a nonrecurring fair value adjustment was recorded during the three and six months ended June 30, 2015 and 2014, and the related gains and 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) Gains	Total (Losses) Gains
						For the three months	For the six months
As of June 30, 2015 ($ in millions)		Level 1	Level 2	Level 3	Total	ended June 30, 2015	ended June 30, 2015
Commercial loans held for sale	$	-	-	15	15	(1)	3
Residential mortgage loans held for sale		-	-	91	91	(2)	(2)
Automobile loans held for sale		-	-	3	3	-	-
Commercial and industrial loans		-	-	397	397	2	(41)
Commercial mortgage loans		-	-	85	85	(4)	(17)
Residential mortgage loans		-	-	55	55	-	(1)
MSRs		-	-	854	854	87	39
OREO		-	-	46	46	(5)	(13)
Bank premises		-	-	130	130	(98)	(101)
Operating lease equipment		-	-	57	57	(4)	(34)
Total	$	-	-	1,733	1,733	(25)	(167)



		Fair Value Measurements Using				Total Losses	Total Losses
						For the three months	For the six months
As of June 30, 2014 ($ in millions)		Level 1	Level 2	Level 3	Total	ended June 30, 2014	ended June 30, 2014
Commercial loans held for sale	$	-	-	45	45	(1)	(2)
Commercial and industrial loans		-	-	62	62	(83)	(124)
Commercial mortgage loans		-	-	76	76	(6)	(17)
Commercial construction loans		-	-	2	2	-	-
MSRs		-	-	928	928	(32)	(28)
OREO		-	-	124	124	(6)	(19)
Bank premises		-	-	15	15	(18)	(18)
Total	$	-	-	1,252	1,252	(146)	(208)

The following tables present information as of June 30, 2015 and 2014 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 June 30, 2015 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Commercial loans held for sale	$	15	Discounted cash flow	Discount spread	NM	4.4%

Residential mortgage loans held for sale		91	Loss rate model	Interest rate risk factor	(7.5)-0.1%	(1.6)%
				Credit risk factor	NM	0.1%
Automobile loans held for sale		3	Discounted cash flow	Discount spread	NM	3.1%

Commercial and industrial loans		397	Appraised value	Collateral value	NM	NM
Commercial mortgage loans		85	Appraised value	Collateral value	NM	NM
Commercial leases		-	Appraised value	Collateral value	NM	NM
Residential mortgage loans		55	Appraised value	Appraised value	NM	NM
MSRs		854	Discounted cash flow	Prepayment speed	1.0 - 100%	(Fixed) 7.6% (Adjustable) 32.7%
				OAS spread (bps)	430-1,750	(Fixed) 930 (Adjustable) 651
OREO		46	Appraised value	Appraised value	NM	NM
Bank premises		130	Appraised value	Appraised value	NM	NM
Operating lease equipment		57	Appraised value	Appraised value	NM	NM

As of June 30, 2014 ($ in millions)
Financial Instrument		Fair Value	Valuation Technique	Significant Unobservable Inputs	Ranges of Inputs	Weighted-Average
Commercial loans held for sale	$	45	Appraised value	Appraised value	NM	NM
				Cost to sell	NM	10.0%
Commercial and industrial loans		62	Appraised value	Collateral value	NM	NM
Commercial mortgage loans		76	Appraised value	Collateral value	NM	NM
Commercial construction loans		2	Appraised value	Collateral value	NM	NM
Commercial leases		-	Appraised value	Collateral value	NM	NM
MSRs		928	Discounted cash flow	Prepayment speed	0 - 100%	(Fixed) 11.1% (Adjustable) 26.5%
				Discount rates	9.6 - 13.2%	(Fixed) 9.9% (Adjustable) 11.8%
OREO		124	Appraised value	Appraised value	NM	NM
Bank premises		15	Appraised value	Appraised value	NM	NM


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
June 30, 2015
Residential mortgage loans measured at fair value	$	806	788	18
Past due loans of 90 days or more		2	2	-
Nonaccrual loans		2	2	-

December 31, 2014
Residential mortgage loans measured at fair value		669	643	26
Past due loans of 90 days or more		2	2	-
Nonaccrual loans		3	3	-

Fair Value of 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 June 30, 2015 ($ in millions)		Amount	Level 1	Level 2	Level 3	Fair Value
Financial assets:
Cash and due from banks	$	2,785	2,785	-	-	2,785
Other securities		601	-	601	-	601
Held-to-maturity securities		157	-	-	157	157
Other short-term investments		3,451	3,451	-	-	3,451
Loans held for sale		367	-	-	367	367
Portfolio loans and leases:
Commercial and industrial loans		42,132	-	-	42,873	42,873
Commercial mortgage loans		7,033	-	-	6,791	6,791
Commercial construction loans		2,687	-	-	2,436	2,436
Commercial leases		3,833	-	-	3,569	3,569
Residential mortgage loans		12,651	-	-	12,923	12,923
Home equity		8,470	-	-	9,091	9,091
Automobile loans		11,867	-	-	11,636	11,636
Credit card		2,180	-	-	2,508	2,508
Other consumer loans and leases		482	-	-	490	490
Unallocated ALLL		(103)	-	-	-	-
Total portfolio loans and leases, net	$	91,232	-	-	92,317	92,317
Financial liabilities:
Deposits	$	103,023	-	103,026	-	103,026
Federal funds purchased		126	126	-	-	126
Other short-term borrowings		4,136	-	4,138	-	4,138
Long-term debt		13,521	13,471	603	-	14,074

		Net Carrying	Fair Value Measurements Using			Total
As of December 31, 2014 ($ in millions)		Amount	Level 1	Level 2	Level 3	Fair Value
Financial assets:
Cash and due from banks	$	3,091	3,091	-	-	3,091
Other securities		600	-	600	-	600
Held-to-maturity securities		187	-	-	187	187
Other short-term investments		7,914	7,914	-	-	7,914
Loans held for sale		700	-	-	700	700
Portfolio loans and leases:
Commercial and industrial loans		40,092	-	-	40,781	40,781
Commercial mortgage loans		7,259	-	-	6,878	6,878
Commercial construction loans		2,052	-	-	1,735	1,735
Commercial leases		3,675	-	-	3,426	3,426
Residential mortgage loans		12,177	-	-	12,249	12,249
Home equity		8,799	-	-	9,224	9,224
Automobile loans		12,004	-	-	11,748	11,748
Credit card		2,297	-	-	2,586	2,586
Other consumer loans and leases		405	-	-	414	414
Unallocated ALLL		(106)	-	-	-	-
Total portfolio loans and leases, net	$	88,654	-	-	89,041	89,041
Financial liabilities:
Deposits	$	101,712	-	101,715	-	101,715
Federal funds purchased		144	144	-	-	144
Other short-term borrowings		1,556	-	1,561	-	1,561
Long-term debt		14,967	14,993	655	-	15,648

Cash and due from banks, other securities, other short-term investments, deposits, federal funds purchased and other short-term borrowings

For financial instruments with a short-term or no stated maturity, prevailing market rates and limited credit risk, carrying amounts approximate fair value. Those financial instruments include cash and due from banks, FHLB and FRB restricted stock, other short-term investments, certain deposits (demand, interest checking, savings, money market and foreign office deposits), federal funds purchased, and other short-term borrowings excluding FHLB borrowings. Fair values for other time deposits, certificates - $100,000 and over and FHLB borrowings were estimated using a DCF calculation that applies prevailing LIBOR/swap interest rates and a spread for new issuances with similar terms.

The Bancorp's held-to-maturity securities are primarily composed of instruments that provide income tax credits as the economic return on the investment. The fair value of these instruments is estimated based on current U.S. Treasury tax credit rates.

Fair values for commercial loans held for sale were valued based on executable bids when available, or on DCF models incorporating appraisals of the underlying collateral, as well as assumptions about investor return requirements and amounts and timing of expected cash flows. Fair values for residential mortgage loans held for sale were valued based on estimated third-party valuations utilizing recent sales data from similar transactions. Broker opinion statements were also obtained as additional evidence to support the third-party valuations. Fair values for other consumer loans held for sale were based on contractual values upon which the loans may be sold to a third party, and approximate their carrying value.

Fair values were estimated by discounting future cash flows using the current market rates of loans to borrowers with similar credit characteristics, similar remaining maturities, prepayment speeds and loss severities. The Bancorp estimates fair values at the transaction level whenever possible. For certain products with a large number of homogenous transactions, the Bancorp employs a pool approach. This approach involves stratifying and sorting the entire population of transactions into a smaller number of pools with like characteristics. Characteristics may include maturity date, coupon, origination date and principal amortization method.

Fair value of long-term debt was based on quoted market prices, when available, or a DCF calculation using LIBOR/swap interest rates and, in some cases, Fifth Third credit and/or debt instrument spreads for new issuances with similar terms.