Loans and Leases

6 Months Ended

Jun. 30, 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:
			June 30,	December 31,
($ in millions)			2017	2016
Loans held for sale:
	Commercial and industrial loans	$	9	60
	Commercial mortgage loans		8	5
	Residential mortgage loans		749	686
Total loans held for sale		$	766	751
Portfolio loans and leases:
	Commercial and industrial loans	$	40,914	41,676
	Commercial mortgage loans		6,868	6,899
	Commercial construction loans		4,366	3,903
	Commercial leases		4,157	3,974
Total commercial loans and leases		$	56,305	56,452
	Residential mortgage loans	$	15,460	15,051
	Home equity		7,301	7,695
	Automobile loans		9,318	9,983
	Credit card		2,117	2,237
	Other consumer loans and leases		945	680
Total consumer loans and leases		$	35,141	35,646
Total portfolio loans and leases		$	91,446	92,098

Total portfolio loans and leases are recorded net of unearned income, which totaled $497 million as of June 30, 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 $267 million and $240 million as of June 30, 2017 and December 31, 2016, respectively.

The Bancorp’s FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $13.5 billion and $13.1billion at June 30, 2017 and December 31, 2016, respectively, pledged at the FHLB, and loans of $39.9 billion and $40.0 billion at June 30, 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
		June 30,	December 31,	June 30,	December 31,
($ in millions)		2017	2016	2017	2016
Commercial and industrial loans	$	40,923	41,736	3	4
Commercial mortgage loans		6,876	6,904	-	-
Commercial construction loans		4,366	3,903	-	-
Commercial leases		4,157	3,974	-	-
Residential mortgage loans		16,209	15,737	45	49
Home equity		7,301	7,695	-	-
Automobile loans		9,318	9,983	7	9
Credit card		2,117	2,237	20	22
Other consumer loans and leases		945	680	-	-
Total loans and leases	$	92,212	92,849	75	84
Less: Loans held for sale		766	751
Total portfolio loans and leases	$	91,446	92,098
The following table presents a summary of net charge-offs (recoveries):
		For the three months ended		For the six months ended
		June 30,		June 30,
($ in millions)		2017	2016	2017	2016
Commercial and industrial loans	$	18	39	52	86
Commercial mortgage loans		5	6	11	13
Commercial construction loans		-	-	-	(1)
Commercial leases		1	1	2	3
Residential mortgage loans		2	2	7	5
Home equity		5	6	11	13
Automobile loans		6	8	18	16
Credit card		22	21	43	41
Other consumer loans and leases		5	4	9	7
Total net charge-offs	$	64	87	153	183