Credit Quality and the Allowance for Loan and Leases Losses

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 June 30, 2019 ($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	63	59	35	-	157
	Collectively evaluated for impairment		588	17	241	-	846
	Unallocated		-	-	-	112	112
Total ALLL		$	651	76	276	112	1,115
Portfolio loans and leases:^(b)
	Individually evaluated for impairment	$	426	752	262	-	1,440
	Collectively evaluated for impairment		69,662	15,790	21,462	-	106,914
	Purchased credit impaired		674	43	20	-	737
Total portfolio loans and leases		$	70,762	16,585	21,744	-	109,091
(a)	Includes $1 related to leveraged leases at June 30, 2019.
(b)	Excludes $192 of residential mortgage loans measured at fair value and includes $575 of leveraged leases, net of unearned income at June 30, 2019.

				Residential
As of December 31, 2018 ($ in millions)			Commercial	Mortgage	Consumer	Unallocated	Total
ALLL:^(a)
	Individually evaluated for impairment	$	42	61	38	-	141
	Collectively evaluated for impairment		603	20	229	-	852
	Unallocated		-	-	-	110	110
Total ALLL		$	645	81	267	110	1,103
Portfolio loans and leases:^(b)
	Individually evaluated for impairment	$	277	736	278	-	1,291
	Collectively evaluated for impairment		59,294	14,589	19,912	-	93,795
Total portfolio loans and leases		$	59,571	15,325	20,190	-	95,086
(a)	Includes $1 related to leveraged leases at December 31, 2018.
(b)	Excludes $179 of residential mortgage loans measured at fair value and includes $624 of leveraged leases, net of unearned income at December 31, 2018.

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

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:

			Current	Past Due				90 Days Past
			Loans and	30-89	90 Days	Total	Total Loans	Due and Still
As of June 30, 2019 ($ in millions)			Leases^(b)(c)	Days^(c)	or More^(c)	Past Due	and Leases	Accruing
Commercial loans and leases:
	Commercial and industrial loans	$	50,877	144	83	227	51,104	19
	Commercial mortgage owner-occupied loans		4,503	3	17	20	4,523	6
	Commercial mortgage nonowner-occupied loans		6,169	18	7	25	6,194	5
	Commercial construction loans		5,263	-	1	1	5,264	1
	Commercial leases		3,675	2	-	2	3,677	-
Residential mortgage loans^(a)			16,483	32	70	102	16,585	47
Consumer loans:
	Home equity		6,199	69	57	126	6,325	1
	Indirect secured consumer loans		10,273	117	13	130	10,403	11
	Credit card		2,351	44	41	85	2,436	37
	Other consumer loans		2,562	15	3	18	2,580	1
Total portfolio loans and leases^(a)		$	108,355	444	292	736	109,091	128
(a)	Excludes $192 of residential mortgage loans measured at fair value at June 30, 2019.
(b)	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 June 30, 2019, $99 of these loans were 30-89 days past due and $266 were 90 days or more past due. The Bancorp recognized an immaterial amount of losses during both the three and six months ended June 30, 2019 due to claim denials and curtailments associated with these insured or guaranteed loans.
(c)	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, 2018 ($ in millions)			Leases^(b)(c)	Days^(c)	or More^(c)	Past Due	and Leases	Accruing
Commercial loans and leases:
	Commercial and industrial loans	$	44,213	32	95	127	44,340	4
	Commercial mortgage owner-occupied loans		3,277	1	6	7	3,284	2
	Commercial mortgage nonowner-occupied loans		3,688	1	1	2	3,690	-
	Commercial construction loans		4,657	-	-	-	4,657	-
	Commercial leases		3,597	1	2	3	3,600	-
Residential mortgage loans^(a)			15,227	37	61	98	15,325	38
Consumer loans:
	Home equity		6,280	71	51	122	6,402	-
	Indirect secured consumer loans		8,844	119	13	132	8,976	12
	Credit card		2,381	47	42	89	2,470	37
	Other consumer loans		2,323	17	2	19	2,342	-
Total portfolio loans and leases^(a)		$	94,487	326	273	599	95,086	93
(a)	Excludes $179 of residential mortgage loans measured at fair value at December 31, 2018.
(b)	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, 2018, $90 of these loans were 30-89 days past due and $195 were 90 days or more past due. The Bancorp recognized $1 and $3 of losses during the three and six months ended June 30, 2018, respectively, due to claim denials and curtailments associated with these insured or guaranteed loans.
(c)	Includes accrual and nonaccrual loans and leases.

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


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

			June 30,	December 31,
($ in millions)			2019	2018
Commercial loans and leases:
	Commercial and industrial loans	$	326	193
	Commercial mortgage owner-occupied loans		28	11
	Commercial mortgage nonowner-occupied loans		2	2
	Commercial leases		34	22
Total nonaccrual portfolio commercial loans and leases			390	228
Residential mortgage loans			23	22
Consumer loans:
	Home equity		78	69
	Indirect secured consumer loans		2	1
	Credit card		26	27
	Other consumer loans		2	1
Total nonaccrual portfolio consumer loans			108	98
Total nonaccrual portfolio loans and leases^(a)(b)		$	521	348
OREO and other repossessed property			39	47
Total nonperforming portfolio assets^(a)(b)		$	560	395
(a)	Excludes $27 and $16 of nonaccrual loans held for sale at June 30, 2019 and December 31, 2018, respectively.
(b)	Includes $13 and $6 of nonaccrual government insured commercial loans whose repayments are insured by the SBA at June 30, 2019 and December 31, 2018, respectively, of which $9 and $2 are restructured nonaccrual government insured commercial loans at June 30, 2019 and December 31, 2018, respectively.

Summary of Subsequent Defaults

The following tables provide a summary of TDRs that subsequently defaulted during the three months ended June 30, 2019 and 2018 and were within 12 months of the restructuring date:

		Number of		Recorded
June 30, 2019 ($ in millions)^(a)		Contracts		Investment
Commercial loans:
	Commercial and industrial loans	5	$	1
	Commercial mortgage owner-occupied loans	2		1
Residential mortgage loans		53		8
Consumer loans:
	Home equity	1		-
	Credit card	253		1
Total portfolio loans		314	$	11

(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.

		Number of		Recorded
June 30, 2018 ($ in millions)^(a)		Contracts		Investment
Commercial loans:
	Commercial and industrial loans	2	$	28
Residential mortgage loans		62		13
Consumer loans:
	Credit card	137		1
Total portfolio loans		201	$	42

(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.

The following tables provide a summary of TDRs that subsequently defaulted during the six months ended June 30, 2019 and 2018 and were within twelve months of the restructuring date:

		Number of		Recorded
June 30, 2019 ($ in millions)^(a)		Contracts		Investment
Commercial loans:
	Commercial and industrial loans	7	$	17
	Commercial mortgage owner-occupied loans	2		1
Residential mortgage loans		129		20
Consumer loans:
	Home equity	5		-
	Credit card	536		3
Total portfolio loans		679	$	41

(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.

		Number of		Recorded
June 30, 2018 ($ in millions)^(a)		Contracts		Investment
Commercial loans:
	Commercial and industrial loans	3	$	29
	Commercial mortgage owner-occupied loans	2		-
Residential mortgage loans		110		20
Consumer loans:
	Home equity	2		-
	Credit card	379		2
Total portfolio loans		496	$	51

(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality which were accounted for within a pool.