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Credit Quality and the Allowance for Loan and Lease Losses (Tables)

12 Months Ended

Dec. 31, 2016

Credit Quality and the Allowance for Loan and Leases Losses

The following tables summarize transactions in the ALLL by portfolio segment for the years ended December 31:

				Residential
2016 ($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Balance, beginning of period		$	840	100	217	115	1,272
	Charge-offs		(232)	(19)	(205)	-	(456)
	Recoveries of losses previously charged-off		42	9	43	-	94
	Provision for loan and lease losses		181	6	159	(3)	343
Balance, end of period		$	831	96	214	112	1,253

				Residential
2015 ($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Balance, beginning of period		$	875	104	237	106	1,322
	Charge-offs		(298)	(28)	(216)	-	(542)
	Recoveries of losses previously charged-off		37	11	48	-	96
	Provision for loan and lease losses		226	13	148	9	396
Balance, end of period		$	840	100	217	115	1,272

				Residential
2014 ($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
Balance, beginning of period		$	1,058	189	225	110	1,582
	Charge-offs		(299)	(139)	(241)	-	(679)
	Recoveries of losses previously charged-off		38	13	53	-	104
	Provision for loan and lease losses		78	41	200	(4)	315
Balance, end of period		$	875	104	237	106	1,322

Summary of the ALLL and Related Loans and Leases Classified by Portfolio Segment

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

					Residential
As of December 31, 2016 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	118	a^(c)	68	44	-	230
	Collectively evaluated for impairment		713		28	170	-	911
	Unallocated		-		-	-	112	112
Total ALLL		$	831		96	214	112	1,253
Portfolio loans and leases:^(b)
	Individually evaluated for impairment	$	904	a^(c)	652	371	-	1,927
	Collectively evaluated for impairment		55,548		14,253	20,224	-	90,025
	Loans acquired with deteriorated credit quality		-		3	-	-	3
Total portfolio loans and leases		$	56,452		14,908	20,595	-	91,955

Includes $2 related to leveraged leases at December 31, 2016.
Excludes $143 of residential mortgage loans measured at fair value, and includes $701 of leveraged leases, net of unearned income, at December 31, 2016.
Includes five restructured loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $26 and an ALLL of $18.

					Residential
As of December 31, 2015 ($ in millions)			Commercial		Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	119	a^(c)	67	49	-	235
	Collectively evaluated for impairment		721		33	168	-	922
	Unallocated		-		-	-	115	115
Total ALLL		$	840		100	217	115	1,272
Portfolio loans and leases:^(b)
	Individually evaluated for impairment	$	815	a^(c)	630	424	-	1,869
	Collectively evaluated for impairment		55,341		12,917	22,286	-	90,544
	Loans acquired with deteriorated credit quality		-		2	-	-	2
Total portfolio loans and leases		$	56,156		13,549	22,710	-	92,415

Includes $5 related to leveraged leases at December 31, 2015.
Excludes $167 of residential mortgage loans measured at fair value, and includes $801 of leveraged leases, net of unearned income at December 31, 2015.
Includes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with a recorded investment of $27 and an ALLL of $15.

Loan and leases balances by credit quality indicator

The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class:

			Special
As of December 31, 2016 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	38,844	1,204	1,604	24	41,676
Commercial mortgage owner-occupied loans		3,168	72	117	3	3,360
Commercial mortgage nonowner-occupied loans		3,466	4	69	-	3,539
Commercial construction loans		3,902	1	-	-	3,903
Commercial leases		3,894	54	26	-	3,974
Total commercial loans and leases	$	53,274	1,335	1,816	27	56,452

			Special
As of December 31, 2015 ($ in millions)		Pass	Mention	Substandard	Doubtful	Total
Commercial and industrial loans	$	38,756	1,633	1,742	-	42,131
Commercial mortgage owner-occupied loans		3,344	124	191	-	3,659
Commercial mortgage nonowner-occupied loans		3,105	63	130	-	3,298
Commercial construction loans		3,201	4	9	-	3,214
Commercial leases		3,724	93	37	-	3,854
Total commercial loans and leases	$	52,130	1,917	2,109	-	56,156

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 December 31:

		2016		2015
($ in millions)		Performing	Nonperforming	Performing	Nonperforming
Residential mortgage loans^(a)	$	14,874	34	13,498	51
Home equity		7,622	73	8,222	79
Automobile loans		9,981	2	11,491	2
Credit card		2,209	28	2,226	33
Other consumer loans and leases		680	-	657	-
Total residential mortgage and consumer loans and leases^(a)	$	35,366	137	36,094	165

(a) Excludes $143 and $167 of loans measured at fair value at December 31, 2016 and 2015, respectively.

Summary by Age and Class of the Recorded Investment in Delinquencies Included in the Bancorp's Portfolio of Loans and Leases

The following tables summarize the Bancorp’s recorded investment in portfolio loans and leases, by age and class:

			Current	Past Due				90 Days Past
			Loans and	30-89	90 Days	Total	Total Loans	Due and Still
As of December 31, 2016 ($ in millions)			Leases^(c)	Days^(c)	or More^(c)	Past Due	and Leases	Accruing
Commercial loans and leases:
	Commercial and industrial loans	$	41,495	87	94	181	41,676	4
	Commercial mortgage owner-occupied loans		3,332	6	22	28	3,360	-
	Commercial mortgage nonowner-occupied loans		3,530	2	7	9	3,539	-
	Commercial construction loans		3,902	1	-	1	3,903	-
	Commercial leases		3,972	-	2	2	3,974	-
Residential mortgage loans^(a)(b)			14,790	37	81	118	14,908	49
Consumer loans and leases:
	Home equity		7,570	68	57	125	7,695	-
	Automobile loans		9,886	85	12	97	9,983	9
	Credit card		2,183	28	26	54	2,237	22
	Other consumer loans and leases		679	1	-	1	680	-
Total portfolio loans and leases^(a)		$	91,339	315	301	616	91,955	84

Excludes $143 of residential mortgage loans measured at fair value at December 31, 2016.
Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2016, $110 of these loans were 30-89 days past due and $312 were 90 days or more past due. The Bancorp recognized $6 of losses during the year ended December 31, 2016 due to claim denials and curtailments associated with these insured or guaranteed loans.
Includes accrual and nonaccrual loans and leases.

			Current	Past Due				90 Days Past
			Loans and	30-89	90 Days	Total	Total Loans	Due and Still
As of December 31, 2015 ($ in millions)			Leases^(c)	Days^(c)	or More^(c)	Past Due	and Leases	Accruing
Commercial loans and leases:
	Commercial and industrial loans	$	41,996	55	80	135	42,131	7
	Commercial mortgage owner-occupied loans		3,610	15	34	49	3,659	-
	Commercial mortgage nonowner-occupied loans		3,262	9	27	36	3,298	-
	Commercial construction loans		3,214	-	-	-	3,214	-
	Commercial leases		3,850	3	1	4	3,854	-
Residential mortgage loans^(a)(b)			13,420	37	92	129	13,549	40
Consumer loans and leases:
	Home equity		8,158	82	61	143	8,301	-
	Automobile loans		11,407	75	11	86	11,493	10
	Credit card		2,207	29	23	52	2,259	18
	Other consumer loans and leases		656	1	-	1	657	-
Total portfolio loans and leases^(a)		$	91,780	306	329	635	92,415	75

Excludes $167 of residential mortgage loans measured at fair value at December 31, 2015.
Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the FHA or guaranteed by the VA. As of December 31, 2015, $102 of these loans were 30-89 days past due and $335 were 90 days or more past due. The Bancorp recognized $8 of losses during the year ended December 31, 2015 due to claim denials and curtailments associated with these insured or guaranteed loans.
Includes accrual and nonaccrual loans and leases.

Summarizes the Bancorp's Recorded Investment in Impaired Loans and Related Allowance by Class

The following tables summarize the Bancorp’s impaired portfolio loans and leases, by class, that were subject to individual review, which includes all portfolio loans and leases restructured in a TDR as of December 31:

			Unpaid
			Principal	Recorded
2016 ($ in millions)			Balance	Investment		ALLL
With a related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	440	414		94
	Commercial mortgage owner-occupied loans^(b)		24	16		5
	Commercial mortgage nonowner-occupied loans		7	6		1
	Commercial leases		2	2		-
Restructured residential mortgage loans			471	465		68
Restructured consumer loans and leases:
	Home equity		202	201		30
	Automobile loans		12	12		2
	Credit card		52	52		12
Total impaired portfolio loans and leases with a related ALLL		$	1,210	1,168		212
With no related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	394	320		-
	Commercial mortgage owner-occupied loans		36	35		-
	Commercial mortgage nonowner-occupied loans		93	83		-
	Commercial leases		2	2		-
Restructured residential mortgage loans			207	187		-
Restructured consumer loans and leases:
	Home equity		107	104		-
	Automobile loans		3	2		-
Total impaired portfolio loans and leases with no related ALLL		$	842	733		-
Total impaired portfolio loans and leases		$	2,052	1,901	a^(a)	212

Includes $322, $635 and $323, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $192, $17 and $48, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2016.
Excludes five restructured loans at December 31, 2016 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $26, a recorded investment of $26 and an ALLL of $18.

			Unpaid
			Principal	Recorded
2015 ($ in millions)			Balance	Investment		ALLL
With a related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	412	346		84
	Commercial mortgage owner-occupied loans^(b)		28	21		5
	Commercial mortgage nonowner-occupied loans		75	64		12
	Commercial construction loans		4	4		2
	Commercial leases		3	3		1
Restructured residential mortgage loans			450	444		67
Restructured consumer loans and leases:
	Home equity		226	225		32
	Automobile loans		17	16		2
	Credit card		61	61		15
Total impaired portfolio loans and leases with a related ALLL		$	1,276	1,184		220
With no related ALLL:
Commercial loans and leases:
	Commercial and industrial loans	$	228	182		-
	Commercial mortgage owner-occupied loans		54	51		-
	Commercial mortgage nonowner-occupied loans		126	111		-
	Commercial construction loans		9	5		-
	Commercial leases		1	1		-
Restructured residential mortgage loans			210	186		-
Restructured consumer loans and leases:
	Home equity		122	119		-
	Automobile loans		3	3		-
Total impaired portfolio loans and leases with no related ALLL		$	753	658		-
Total impaired portfolio loans and leases		$	2,029	1,842	a^(a)	220

Includes $491, $607 and $372, respectively, of commercial, residential mortgage and consumer portfolio TDRs on accrual status and $203, $23 and $52, respectively, of commercial, residential mortgage and consumer portfolio TDRs on nonaccrual status at December 31, 2015.
Excludes five restructured loans at December 31, 2015 associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an unpaid principal balance of $27, a recorded investment of $27 and an ALLL of $15.

The following table summarizes the Bancorp’s average impaired portfolio loans and leases, by class, and interest income, by class, for the years ended December 31:

			2016		2015			2014
			Average	Interest	Average	Interest		Average	Interest
			Recorded	Income	Recorded	Income		Recorded	Income
($ in millions)			Investment	Recognized	Investment	Recognized		Investment	Recognized
Commercial loans and leases:
	Commercial and industrial loans	$	691	10	663		21	786		25
	Commercial mortgage owner-occupied loans^(a)		63	1	92		2	149		4
	Commercial mortgage nonowner-occupied loans		139	5	224		7	268		8
	Commercial construction loans		3	-	41		1	92		2
	Commercial leases		5	-	5		-	13		-
Restructured residential mortgage loans			647	25	586		23	1,273		54
Restructured consumer loans and leases:
	Home equity		325	12	361		13	394		20
	Automobile loans		17	-	22		1	24		1
	Credit card		56	5	68		6	62		5
Total average impaired portfolio loans and leases		$	1,946	58	2,062		74	3,061		119

(a) Excludes five restructured loans associated with a consolidated VIE in which the Bancorp has no continuing credit risk due to the risk being assumed by a third party, with an average recorded investment of $26, $27 and $28 for the years ended December 31, 2016, 2015 and 2014, respectively. An immaterial amount of interest income was recognized during the years ended December 31, 2016, 2015 and 2014.

Summary of the Bancorp's Nonperforming Loans and Leases by Class

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 presents the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property as of December 31:

($ in millions)			2016	2015
Commercial loans and leases:
	Commercial and industrial loans	$	478	259
	Commercial mortgage owner-occupied loans^(a)		32	46
	Commercial mortgage nonowner-occupied loans		9	35
	Commercial leases		4	1
Total nonaccrual portfolio commercial loans and leases			523	341
Residential mortgage loans			34	51
Consumer loans and leases:
	Home equity		73	79
	Automobile loans		2	2
	Credit card		28	33
Total nonaccrual portfolio consumer loans and leases			103	114
Total nonaccrual portfolio loans and leases^(b)(c)		$	660	506
OREO and other repossessed property			78	141
Total nonperforming portfolio assets^(b)(c)		$	738	647

Excludes $19 and $20 of restructured nonaccrual loans at December 31, 2016 and 2015, respectively, associated with a consolidated VIE in which the Bancorp has no continuing credit risk due the risk being assumed by a third party.
Excludes $13 and $12 of nonaccrual loans held for sale at December 31, 2016 and 2015, respectively.
Includes $4 and $6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at December 31, 2016 and 2015, respectively, and $1 and $2 of restructured nonaccrual government insured commercial loans at December 31, 2016 and 2015, respectively.

Summary of Loans Modified in a TDR

The following tables provide a summary of loans, by class, modified in a TDR by the Bancorp during the years ended December 31:

			Recorded investment
		Number of loans	in loans modified		Increase	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
2016 ($ in millions)^(a)		during the year^(b)	during the year		modification	modification
Commercial loans and leases:
	Commercial and industrial loans	74	$	183	14	-
	Commercial mortgage owner-occupied loans	12		11	-	-
	Commercial mortgage nonowner-occupied loans	4		5	2	-
	Commercial leases	5		16	-	-
Residential mortgage loans		924		137	8	-
Consumer loans:
	Home equity	219		15	-	-
	Automobile loans	221		3	-	-
	Credit card	9,519		43	8	4
Total portfolio loans and leases		10,978	$	413	32	4

Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
Represents number of loans post-modification and excludes loans previously modified in a TDR.

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
2015 ($ in millions)^(a)		during the year^(b)	during the year		modification	modification
Commercial loans:
	Commercial and industrial loans	77	$	146	7	3
	Commercial mortgage owner-occupied loans	18		16	(2)	-
	Commercial mortgage nonowner-occupied loans	12		7	(1)	-
Residential mortgage loans		1,089		155	8	-
Consumer loans:
	Home equity	267		16	(1)	-
	Automobile loans	440		7	1	-
	Credit card	12,569		62	11	7
Total portfolio loans		14,472	$	409	23	10

Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
Represents number of loans post-modification and excludes loans previously modified in a TDR.

			Recorded investment		Increase
		Number of loans	in loans modified		(Decrease)	Charge-offs
		modified in a TDR	in a TDR		to ALLL upon	recognized upon
2014 ($ in millions)^(a)		during the year^(b)	during the year		modification	modification
Commercial loans:
	Commercial and industrial loans	128	$	230	12	6
	Commercial mortgage owner-occupied loans	32		54	(1)	-
	Commercial mortgage nonowner-occupied loans	28		30	(3)	2
Residential mortgage loans		1,093		160	8	-
Consumer loans:
	Home equity	284		12	-	-
	Automobile loans	608		10	1	-
	Credit card	8,929		52	10	-
Total portfolio loans		11,102	$	548	27	8

Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.
Represents number of loans post-modification and excludes loans previously modified in a TDR.

Summary of Subsequent Defaults

The following tables provide a summary of TDRs that subsequently defaulted during the years ended December 31, 2016, 2015 and 2014 and were within twelve months of the restructuring date:

		Number of		Recorded
December 31, 2016 ($ in millions)^(a)		Contracts		Investment
Commercial loans and leases:
	Commercial and industrial loans	8	$	5
	Commercial mortgage nonowner-occupied loans	2		-
	Commercial leases	2		1
Residential mortgage loans		172		25
Consumer loans:
	Home equity	17		1
	Automobile loans	2		-
	Credit card	1,715		7
Total portfolio loans and leases		1,918	$	39

(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.

		Number of		Recorded
December 31, 2015 ($ in millions)^(a)		Contracts		Investment
Commercial loans:
	Commercial and industrial loans	7	$	11
	Commercial mortgage owner-occupied loans	3		1
Residential mortgage loans		156		21
Consumer loans:
	Home equity	15		1
	Automobile loans	8		-
	Credit card	1,935		8
Total portfolio loans		2,124	$	42

(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.

		Number of		Recorded
December 31, 2014 ($ in millions)^(a)		Contracts		Investment
Commercial loans:
	Commercial and industrial loans	11	$	36
	Commercial mortgage owner-occupied loans	3		4
	Commercial mortgage nonowner-occupied loans	2		1
Residential mortgage loans		235		32
Consumer loans:
	Home equity	30		2
	Automobile loans	6		-
	Credit card	2,059		12
Total portfolio loans		2,346	$	87

(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.