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 September 30, 2015				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Balance, beginning of period		$	855	104	231	103	1,293
	Losses charged-off		(149)	(6)	(54)	-	(209)
	Recoveries of losses previously charged-off		7	3	11	-	21
	Provision for (benefit from) loan and lease losses		115	(3)	33	11	156
Balance, end of period		$	828	98	221	114	1,261

For the three months ended September 30, 2014				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Balance, beginning of period		$	961	174	221	102	1,458
	Losses charged-off		(72)	(12)	(62)	-	(146)
	Recoveries of losses previously charged-off		17	3	11	-	31
	Provision for (benefit from) loan and lease losses		7	(1)	68	(3)	71
Balance, end of period		$	913	164	238	99	1,414

For the nine months ended September 30, 2015				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Balance, beginning of period		$	875	104	237	106	1,322
	Losses charged-off		(251)	(23)	(163)	-	(437)
	Recoveries of losses previously charged-off		24	9	38	-	71
	Provision for loan and lease losses		180	8	109	8	305
Balance, end of period		$	828	98	221	114	1,261

For the nine months ended September 30, 2014				Residential
($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Balance, beginning of period		$	1,058	189	225	110	1,582
	Losses charged-off		(236)	(41)	(187)	-	(464)
	Recoveries of losses previously charged-off		31	10	39	-	80
	Provision for loan and lease losses		60	6	161	(11)	216
Balance, end of period		$	913	164	238	99	1,414

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

					Residential
As of September 30, 2015 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	101	i^(c)	65	50	-	216
	Collectively evaluated for impairment		727		33	171	-	931
	Unallocated		-		-	-	114	114
Total ALLL		$	828		98	221	114	1,261
Portfolio loans and leases:^(b)
	Individually evaluated for impairment	$	895	i^(c)	613	436	-	1,944
	Collectively evaluated for impairment		56,113		12,604	22,738	-	91,455
	Loans acquired with deteriorated credit quality		-		2	-	-	2
Total portfolio loans and leases		$	57,008		13,219	23,174	-	93,401


					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
Portfolio 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 and 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 September 30, 2015 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	39,860	1,376	1,712	-	42,948
Commercial mortgage owner-occupied loans		3,427	121	211	-	3,759
Commercial mortgage nonowner-occupied loans		3,076	48	178	-	3,302
Commercial construction loans		3,083	-	12	6	3,101
Commercial leases		3,790	68	40	-	3,898
Total commercial loans and leases	$	53,236	1,613	2,153	6	57,008


			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:

		September 30, 2015		December 31, 2014
($ in millions)		Performing	Nonperforming	Performing	Nonperforming
Residential mortgage loans^(a)	$	13,164	55	12,204	77
Home equity		8,345	82	8,793	93
Automobile loans		11,824	2	12,036	1
Credit card		2,196	33	2,360	41
Other consumer loans and leases		692	-	418	-
Total residential mortgage and consumer loans and leases^(a)	$	36,221	172	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 September 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	$	42,862	26	60	86	42,948	3
	Commercial mortgage owner-occupied loans		3,711	10	38	48	3,759	-
	Commercial mortgage nonowner-occupied loans		3,262	19	21	40	3,302	2
	Commercial construction loans		3,101	-	-	-	3,101	-
	Commercial leases		3,896	-	2	2	3,898	-
Residential mortgage loans^{(a) (b)}			13,092	33	94	127	13,219	40
Consumer loans and leases:
	Home equity		8,287	76	64	140	8,427	-
	Automobile loans		11,751	64	11	75	11,826	8
	Credit card		2,178	28	23	51	2,229	17
	Other consumer loans and leases		690	2	-	2	692	-
Total portfolio loans and leases^(a)		$	92,830	258	313	571	93,401	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 September 30, 2015			Principal	Recorded
($ in millions)			Balance	Investment		ALLL
With a related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	457	308		64
	Commercial mortgage owner-occupied loans^(b)		48	38		9
	Commercial mortgage nonowner-occupied loans		79	68		11
	Commercial construction loans		9	6		-
	Commercial leases		2	2		2
Restructured residential mortgage loans			434	428		65
Restructured consumer loans and leases:
	Home equity		232	232		34
	Automobile loans		18	18		2
	Credit card		62	62		14
Total impaired loans and leases with a related ALLL		$	1,341	1,162		201
With no related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	310	253		-
	Commercial mortgage owner-occupied loans		45	43		-
	Commercial mortgage nonowner-occupied loans		164	145		-
	Commercial construction loans		4	3		-
	Commercial leases		1	1		-
Restructured residential mortgage loans			210	185		-
Restructured consumer loans and leases:
	Home equity		124	121		-
	Automobile loans		3	3		-
Total impaired loans and leases with no related ALLL		$	861	754		-
Total impaired loans and leases		$	2,202	1,916	a^(a)	201


			Unpaid
As of December 31, 2014			Principal	Recorded
($ in millions)			Balance	Investment		ALLL
With a related ALLL:
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:
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 nine months ended
			September 30, 2015		September 30, 2015
			Average	Interest	Average	Interest
			Recorded	Income	Recorded	Income
($ in millions)			Investment	Recognized	Investment	Recognized
Commercial loans and leases:
	Commercial and industrial loans	$	635	5	696	17
	Commercial mortgage owner-occupied loans^(a)		84	-	98	1
	Commercial mortgage nonowner-occupied loans		210	2	236	5
	Commercial construction loans		35	-	49	1
	Commercial leases		6	-	6	-
Restructured residential mortgage loans			611	6	576	17
Restructured consumer loans and leases:
	Home equity		355	3	366	10
	Automobile loans		21	-	23	-
	Credit card		65	1	70	4
Total average impaired loans and leases		$	2,022	17	2,120	55


			For the three months ended					For the nine months ended
			September 30, 2014					September 30, 2014
			Average		Interest			Average		Interest
			Recorded		Income			Recorded		Income
($ in millions)			Investment		Recognized			Investment		Recognized
Commercial loans and leases:
	Commercial and industrial loans	$	785		6		$	787		18
	Commercial mortgage owner-occupied loans^(a)		137		1			149		3
	Commercial mortgage nonowner-occupied loans		261		2			264		6
	Commercial construction loans		84		1			100		2
	Commercial leases		10		-			15		-
Restructured residential mortgage loans			1,252		14			1,286		41
Restructured consumer loans and leases:
	Home equity		392		5			398		16
	Automobile loans		23		1			24		1
	Credit card		62		1			58		3
Total average impaired loans and leases			$	3,006		31		$	3,081		90


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:

			September 30,	December 31,
($ in millions)			2015	2014
Commercial loans and leases:
	Commercial and industrial loans	$	167	228
	Commercial mortgage owner-occupied loans^(a)		53	78
	Commercial mortgage nonowner-occupied loans		57	57
	Commercial construction loans		6	-
	Commercial leases		3	4
Total nonperforming commercial loans and leases		$	286	367
Residential mortgage loans			55	77
Consumer loans and leases:
	Home equity		82	93
	Automobile loans		2	1
	Credit card		33	41
Total nonperforming consumer loans and leases		$	117	135
Total nonperforming loans and leases^{(b) (c)}		$	458	579
OREO and other repossessed property^(d)		$	148	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 $310 million as of September 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 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 September 30, 2015, the Bancorp had $50 million and $32 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
		Number of loans	in loans modified		Increase	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
September 30, 2015 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial loans and leases:
	Commercial and industrial loans	15	$	17	7	-
	Commercial mortgage owner-occupied loans	1		-	-	-
Residential mortgage loans		301		44	3	-
Consumer loans and leases:
	Home equity	60		4	-	-
	Automobile loans	98		2	-	-
	Credit card	3,076		15	3	2
Total portfolio loans and leases		3,551	$	82	13	2


			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
September 30, 2014 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial loans and leases:
	Commercial and industrial loans	17	$	35	10	-
	Commercial mortgage owner-occupied loans	5		2	-	-
	Commercial mortgage nonowner-occupied loans	8		4	(1)	-
Residential mortgage loans		240		35	2	-
Consumer loans and leases:
	Home equity	106		5	-	-
	Automobile loans	172		3	-	-
	Credit card	1,670		11	2	-
Total portfolio loans and leases		2,218	$	95	13	-


The following tables provide a summary of loans modified in a TDR by the Bancorp during the nine 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
September 30, 2015 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial loans and leases:
	Commercial and industrial loans	63	$	105	7	3
	Commercial mortgage owner-occupied loans	14		15	(2)	-
	Commercial mortgage nonowner-occupied loans	11		7	-	-
Residential mortgage loans		855		121	7	-
Consumer loans and leases:
	Home equity	203		11	(1)	-
	Automobile loans	357		6	-	-
	Credit card	9,724		49	10	5
Total portfolio loans and leases		11,227	$	314	21	8


			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
September 30, 2014 ($ in millions)^(a)		during the period^(b)	during the period		modification	modification
Commercial loans and leases:
	Commercial and industrial loans	83	$	154	12	-
	Commercial mortgage owner-occupied loans	25		53	(1)	-
	Commercial mortgage nonowner-occupied loans	19		11	(2)	-
Residential mortgage loans		812		119	7	-
Consumer loans and leases:
	Home equity	212		9	-	-
	Automobile loans	431		7	-	-
	Credit card	5,334		34	6	-
Total portfolio loans and leases		6,916	$	387	22	-

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 recognizes ALLL for the entire balance of the 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 September 30, 2015 and 2014 and within 12 months of the restructuring date:

		Number of		Recorded
September 30, 2015 ($ in millions)^(a)		Contracts		Investment
Residential mortgage loans		31	$	5
Consumer loans and leases:
	Home equity	4		-
	Credit card	140		-
Total portfolio loans and leases		175	$	5


		Number of		Recorded
September 30, 2014 ($ in millions)^(a)		Contracts		Investment
Commercial loans and leases:
	Commercial mortgage owner-occupied loans	1	$	1
	Commercial mortgage nonowner-occupied loans	2		1
Residential mortgage loans		100		12
Consumer loans and leases:
	Home equity	4		-
	Automobile loans	2		-
	Credit card	385		2
Total portfolio loans and leases		494	$	16


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

		Number of		Recorded
September 30, 2015 ($ in millions)^(a)		Contracts		Investment
Commercial loans and leases:
	Commercial and industrial loans	4	$	7
Residential mortgage loans		101		14
Consumer loans and leases:
	Home equity	12		1
	Automobile loans	8		-
	Credit card	1,285		6
Total portfolio loans and leases		1,410	$	28


		Number of		Recorded
September 30, 2014 ($ in millions)^(a)		Contracts		Investment
Commercial loans and leases:
	Commercial and industrial loans	9	$	20
	Commercial mortgage owner-occupied loans	3		4
	Commercial mortgage nonowner-occupied loans	2		1
Residential mortgage loans		181		24
Consumer loans and leases:
	Home equity	24		1
	Automobile loans	6		-
	Credit card	1,255		8
Total portfolio loans and leases		1,480	$	58