Loans and Leases

6 Months Ended

Jun. 30, 2018

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 and lease 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 Note6.

The following table provides a summary of commercial loans and leases classified by primary purpose and consumer loans classified based upon product or collateral as of:
			June 30,	December 31,
($ in millions)			2018	2017
Loans and leases held for sale:
	Commercial and industrial loans	$	44	-
	Commercial mortgage loans		72	6
	Commercial leases		9	-
	Residential mortgage loans		658	486
Total loans and leases held for sale		$	783	492
Portfolio loans and leases:
	Commercial and industrial loans	$	41,403	41,170
	Commercial mortgage loans		6,625	6,604
	Commercial construction loans		4,687	4,553
	Commercial leases		3,788	4,068
Total commercial loans and leases		$	56,503	56,395
	Residential mortgage loans	$	15,640	15,591
	Home equity		6,599	7,014
	Automobile loans		8,938	9,112
	Credit card		2,270	2,299
	Other consumer loans		1,982	1,559
Total consumer loans		$	35,429	35,575
Total portfolio loans and leases		$	91,932	91,970

Total portfolio loans and leases are recorded net of unearned income, which totaled $496 million as of June 30, 2018 and $523 million as of December 31, 2017. 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 $286 million and $282 million as of June 30, 2018 and December 31, 2017, respectively.

The Bancorp’s FHLB and FRB advances are generally secured by loans. The Bancorp had loans of $13.3 billion and $13.0 billion at June 30, 2018 and December 31, 2017, respectively, pledged at the FHLB, and loans of $40.4 billion and $39.8 billion at June 30, 2018 and December 31, 2017, 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)		2018	2017	2018	2017
Commercial and industrial loans	$	41,447	41,170	4	3
Commercial mortgage loans		6,697	6,610	-	-
Commercial construction loans		4,687	4,553	-	-
Commercial leases		3,797	4,068	-	-
Residential mortgage loans		16,298	16,077	44	57
Home equity		6,599	7,014	-	-
Automobile loans		8,938	9,112	10	10
Credit card		2,270	2,299	31	27
Other consumer loans		1,982	1,559	-	-
Total loans and leases	$	92,715	92,462	89	97
Less: Loans and leases held for sale		783	492
Total portfolio loans and leases	$	91,932	91,970
The following table presents a summary of net charge-offs:
		For the three months ended		For the six months ended
		June 30,		June 30,
($ in millions)		2018	2017	2018	2017
Commercial and industrial loans	$	47	18	74	52
Commercial mortgage loans		2	5	2	11
Commercial construction loans		-	-	-	-
Commercial leases		-	1	-	2
Residential mortgage loans		2	2	4	7
Home equity		2	5	7	11
Automobile loans		8	6	19	18
Credit card		26	22	52	43
Other consumer loans		7	5	17	9
Total net charge-offs	$	94	64	175	153