Loans and Leases

3 Months Ended

Mar. 31, 2017

Loans and Leases Receivable

Loans and Leases

5. Loans and Leases

The Bancorp diversifies its loan and lease portfolio by offering a variety of loan and lease products with various payment terms and rate structures. Lending activities are generally concentrated within those states in which the Bancorp has banking centers and are primarily located in the Midwestern and Southeastern regions of the U.S. The Bancorp’s commercial loan portfolio consists of lending to various industry types. Management periodically reviews the performance of its loan and lease products to evaluate whether they are performing within acceptable interest rate and credit risk levels and changes are made to underwriting policies and procedures as needed. The Bancorp maintains an allowance to absorb loan and lease losses inherent in the portfolio. For further information on credit quality and the ALLL, refer to Note 6.

The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans and leases classified based upon product or collateral as of:
			March 31,	December 31,
($ in millions)			2017	2016
Loans and leases held for sale:
	Commercial and industrial loans	$	2	60
	Commercial mortgage loans		7	5
	Commercial leases		1	-
	Residential mortgage loans		606	686
Total loans and leases held for sale		$	616	751
Portfolio loans and leases:
	Commercial and industrial loans	$	41,074	41,676
	Commercial mortgage loans		6,924	6,899
	Commercial construction loans		4,283	3,903
	Commercial leases		4,092	3,974
Total commercial loans and leases		$	56,373	56,452
	Residential mortgage loans	$	15,336	15,051
	Home equity		7,469	7,695
	Automobile loans		9,572	9,983
	Credit card		2,070	2,237
	Other consumer loans and leases		808	680
Total consumer loans and leases		$	35,255	35,646
Total portfolio loans and leases		$	91,628	92,098

Total portfolio loans and leases are recorded net of unearned income, which totaled $500 million as of March 31, 2017 and$503 million as of December 31, 2016. Additionally, portfolio loans and leases are recorded net of unamortized premiums and discounts, deferred direct loan origination fees and costs and fair value adjustments (associated with acquired loans or loans designated as fair value upon origination) which totaled a net premium of $249 million and $240 million as of March 31, 2017 and December 31, 2016, respectively.

The Bancorp’s FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $13.2 billion and $13.1billion at March 31, 2017 and December 31, 2016, respectively, pledged at the FHLB, and loans of $39.5 billion and $40.0 billion at March 31, 2017 and December 31, 2016, respectively, pledged at the FRB.

The following table presents a summary of the total loans and leases owned by the Bancorp as of:
					90 Days Past Due
		Carrying Value			and Still Accruing
		March 31,	December 31,		March 31,	December 31,
($ in millions)		2017	2016		2017	2016
Commercial and industrial loans	$	41,076	41,736		3	4
Commercial mortgage loans		6,931	6,904		-	-
Commercial construction loans		4,283	3,903		-	-
Commercial leases		4,093	3,974		-	-
Residential mortgage loans		15,942	15,737		45	49
Home equity		7,469	7,695		-	-
Automobile loans		9,572	9,983		6	9
Credit card		2,070	2,237		21	22
Other consumer loans and leases		808	680		-	-
Total loans and leases	$	92,244	92,849		75	84
Less: Loans and leases held for sale	$	616	751
Total portfolio loans and leases	$	91,628	92,098
The following table presents a summary of net charge-offs for the three months ended March 31:
($ in millions)					2017	2016
Commercial and industrial loans				$	36	46
Commercial mortgage loans					5	6
Commercial leases					1	2
Residential mortgage loans					5	2
Home equity					6	8
Automobile loans					11	9
Credit card					22	20
Other consumer loans and leases					3	3
Total net charge-offs				$	89	96