(a)	Includes $31, $1 and $1 in Commercial, Residential Mortgage and Consumer, respectively, related to the initial recognition of an ALLL on PCD loans.

(b)	The Bancorp recorded $13 i n both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.


For the three months ended March 31, 2019 ($ in millions)		Commercial		Residential Mortgage		Consumer		Unallocated		Total
Balance, beginning of period	$		645		81		267		110		1,103
Losses charged-off (a)			(20)		(2)		(86)		-		(108)
Recoveries of losses previously charged-off (a)			3		1		27		-		31
Provision for (benefit from) loan and lease losses			26		(1)		62		2		89
Balance, end of period	$		654		79		270		112		1,115

(a)	The Bancorp recorded $11 in both losses charged-off and recoveries of losses previously charged-off related to customer defaults on point-of-sale consumer loans for which the Bancorp obtained recoveries under third-party credit enhancements.

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


As of March 31, 2020 ($ in millions)		Commercial		Residential Mortgage		Consumer		Total
ALLL: (a)
Individually evaluated	$		118		77		60		255
Collectively evaluated			1,195		183		715		2,093
Total ALLL	$		1,313		260		775		2,348
Portfolio loans and leases: (b)
Individually evaluated	$		547		813		296		1,656
Collectively evaluated			76,989		15,674		23,025		115,688
Purchased credit deteriorated			459		29		20		508
Total portfolio loans and leases	$		77,995		16,516		23,341		117,852

(a)	Includes $4 related to leveraged leases at March 31, 2020.

(b)	Excludes $185 of residential mortgage loans measured at fair value and includes $379 of leveraged leases, net of unearned income at March 31, 2020.


As of December 31, 2019 ($ in millions)		Commercial		Residential Mortgage		Consumer		Unallocated		Total
ALLL: (a)
Individually evaluated for impairment	$		82		55		33		-		170
Collectively evaluated for impairment			628		18		265		-		911
Unallocated			-		-		-		121		121
Total ALLL	$		710		73		298		121		1,202
Portfolio loans and leases: (b)
Individually evaluated for impairment	$		413		814		302		-		1,529
Collectively evaluated for impairment			69,047		15,690		22,558		-		107,295
Purchased credit impaired			498		37		16		-		551
Total portfolio loans and leases	$		69,958		16,541		22,876		-		109,375

(a)	Includes $1 related to leveraged leases at December 31, 2019.

(b)	Excludes $183 of residential mor tgage loans measured at fair value and includes $429 of leveraged leases, net of unearned income at December 31, 2019.

CREDIT RISK PROFILE

Commercial Portfolio Segment

For purposes of monitoring the credit quality and risk characteristics of its commercial portfolio segment, the Bancorp disaggregates the segment into the following classes: commercial and industrial, commercial mortgage owner-occupied, commercial mortgage nonowner-occupied, commercial construction and commercial leases.

To facilitate the monitoring of credit quality within the commercial portfolio segment, the Bancorp utilizes the following categories of credit grades: pass, special mention, substandard, doubtful and loss. The five categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter.

Pass ratings, which are assigned to those borrowers that do not have identified potential or well-defined weaknesses and for which there is a high likelihood of orderly repayment, are updated at least annually based on the size and credit characteristics of the borrower. All other categories are updated on a quarterly basis during the month preceding the end of the calendar quarter.

The Bancorp assigns a special mention rating to loans and leases that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or lease or the Bancorp’s credit position.

The Bancorp assigns a substandard rating to loans and leases that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans and leases have well-defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Bancorp will sustain some loss if the deficiencies noted are not addressed and corrected.

The Bancorp assigns a doubtful rating to loans and leases that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans.

Loans and leases classified as loss are considered uncollectible and are

charged-off

in the period in which they are determined to be uncollectible. Because loans and leases in this category are fully

charged-off,

they are not included in the following tables.

For loans and leases that are collectively evaluated, the Bancorp utilizes models to forecast expected credit losses over a reasonable and supportable forecast period based on the probability of a loan or lease defaulting, the expected balance at the estimated date of default and the expected loss percentage given a default. For the commercial portfolio segment, the estimates for probability of default are primarily based on internal ratings assigned to each commercial borrower on a

13-point

scale and historical observations of how those ratings migrate to a default over time in the context of macroeconomic conditions. For loans with available credit, the estimate of the expected balance at the time of default considers expected utilization rates, which are primarily based on macroeconomic conditions and the utilization history of similar borrowers under those economic conditions. The estimates for loss severity are primarily based on collateral type and coverage levels and the susceptibility of those characteristics to changes in macroeconomic conditions. Refer to Note 4 for additional information about the Bancorp’s processes for developing these models, estimating credit losses for periods beyond the reasonable and supportable forecast period and for estimating credit losses for individually evaluated loans.


The following tables summarize the credit risk profile of the Bancorp’s commercial portfolio segment, by class and vintage:
		Term Loans and Leases Amortized Cost Basis by Origination Year												Revolving Loans Amortized		Revolving Loans Converted to Term Loans Amortized Cost
As of March 31, 2020 ($ in millions)		2020		2019		2018		2017		2016		Prior		Cost Basis		Basis		Total
Commercial and industrial loans:
Pass	$		987		3,217		1,832		1,302		754		1,128		44,212		-		53,432
Special mention			28		89		188		63		42		8		2,631		-		3,049
Substandard			11		53		89		78		58		70		1,385		-		1,744
Doubtful			-		-		-		-		-		-		25		-		25
Total commercial and industrial loans	$		1,026		3,359		2,109		1,443		854		1,206		48,253		-		58,250
Commercial mortgage owner-occupied loans:
Pass	$		297		903		624		474		322		730		1,052		-		4,402
Special mention			3		28		43		30		13		17		48		-		182
Substandard			16		64		38		39		13		46		85		-		301
Doubtful			-		-		-		-		-		-		-		-		-
Total commercial mortgage owner-occupied loans	$		316		995		705		543		348		793		1,185		-		4,885
Commercial mortgage nonowner-occupied loans:
Pass	$		229		1,266		735		357		330		591		2,372		-		5,880
Special mention			4		9		17		13		18		6		151		-		218
Substandard			9		27		2		11		-		43		85		-		177
Doubtful			-		-		-		-		-		-		-		-		-
Total commercial mortgage nonowner-occupied loans	$		242		1,302		754		381		348		640		2,608		-		6,275
Commercial construction loans:
Pass	$		9		90		28		-		10		29		5,075		-		5,241
Special mention			-		4		-		-		-		-		172		-		176
Substandard			-		-		-		-		-		4		41		-		45
Doubtful			-		-		-		-		-		-		-		-		-
Total commercial construction loans	$		9		94		28		-		10		33		5,288		-		5,462
Commercial leases:
Pass	$		22		174		429		486		403		1,438		-		-		2,952
Special mention			-		1		17		34		11		36		-		-		99
Substandard			-		3		7		18		12		32		-		-		72
Doubtful			-		-		-		-		-		-		-		-		-
Total commercial leases	$		22		178		453		538		426		1,506		-		-		3,123
Total commercial loans and leases	$		1,615		5,928		4,049		2,905		1,986		4,178		57,334		-		77,995

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


As of December 31, 2019 ($ in millions)		Pass		Special Mention		Substandard		Doubtful		Total
Commercial and industrial loans	$		47,671		1,423		1,406		42		50,542
Commercial mortgage owner-occupied loans			4,421		162		293		4		4,880
Commercial mortgage nonowner-occupied loans			5,866		135		82		-		6,083
Commercial construction loans			4,963		52		75		-		5,090
Commercial leases			3,222		53		88		-		3,363
Total commercial loans and leases	$		66,143		1,825		1,944		46		69,958

Age Analysis of Past Due Commercial Loans and Leases

The following tables summarize the Bancorp’s amortized cost basis in portfolio commercial 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 March 31, 2020 ($ in millions)		Leases (a)		Days (a)	or More (a)	Past Due	and Leases	Accruing
Commercial loans and leases:
Commercial and industrial loans	$	57,996		120	134	254	58,250	13
Commercial mortgage owner-occupied loans		4,846		16	23	39	4,885	7
Commercial mortgage nonowner-occupied loans		6,255		6	14	20	6,275	13
Commercial construction loans		5,457		4	1	5	5,462	-
Commercial leases		3,084		14	25	39	3,123	10
Total portfolio commercial loans and leases	$	77,638		160	197	357	77,995	43

(a)	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, 2019 ($ in millions)		Leases (a)		Days (a)		or More (a)		Past Due		and Leases		Accruing
Commercial loans and leases:
Commercial and industrial loans	$		50,305		133		104		237		50,542		11
Commercial mortgage owner-occupied loans			4,853		4		23		27		4,880		9
Commercial mortgage nonowner-occupied loans			6,072		5		6		11		6,083		6
Commercial construction loans			5,089		1		-		1		5,090		-
Commercial leases			3,338		11		14		25		3,363		-
Total portfolio commercial loans and leases	$		69,657		154		147		301		69,958		26

(a)	Includes accrual and nonaccrual loans and leases.

Residential Mortgage and Consumer Portfolio Segments

For purposes of monitoring the credit quality and risk characteristics of its consumer portfolio segment, the Bancorp disaggregates the segment into the following classes: home equity, indirect secured consumer loans, credit card and other consumer loans. The Bancorp’s residential mortgage portfolio segment is also a separate class.

The Bancorp considers repayment performance as the best indicator of credit quality for residential mortgage and consumer loans, which includes both the delinquency status and performing versus nonperforming status of the loans. The delinquency status of all residential mortgage and consumer loans and the performing versus nonperforming status is presented in the following table. Refer to the nonaccrual loans and leases section of Note 1 of the Notes to Consolidated Financial Statements included in the Bancorp’s Annual Report on Form

10-K

for the year ended December 31, 2019 for additional delinquency and nonperforming information.

For collectively evaluated loans in the consumer and residential mortgage portfolio segments, the Bancorp’s expected credit loss models primarily utilize the borrower’s FICO score and delinquency history in combination with macroeconomic conditions when estimating the probability of default. The estimates for loss severity are primarily based on collateral type and coverage levels and the susceptibility of those characteristics to changes in macroeconomic conditions. The expected balance at the estimated date of default is also particularly significant for portfolio classes which generally have longer terms (such as residential mortgage loans and home equity) and portfolio classes containing a high concentration of loans with revolving privileges (such as credit card and home equity). The estimate of the expected balance at the time of default considers expected prepayment and utilization rates where applicable, which are primarily based on macroeconomic conditions and the utilization history of similar borrowers under those economic conditions. Refer to Note 4 for additional information about the Bancorp’s process for developing these models and its process for estimating of credit losses for periods beyond the reasonable and supportable forecast period.

The following table presents a summary of the Bancorp’s residential mortgage and consumer portfolio segments, by class and vintage, disaggregated by both age and performing versus nonperforming status as of:


		Term Loans Amortized Cost Basis by Origination Year							Revolving Loans Amortized	Revolving Loans Converted to Term Loans Amortized Cost
As of March 31, 2020 ($ in millions)			2020	2019	2018	2017	2016	Prior	Cost Basis	Basis	Total
Residential mortgage loans:
Performing:
Current (a)	$		693	2,748	1,333	2,332	3,088	6,170	-	-	16,364
30-89 days past due			-	2	1	1	3	18	-	-	25
90 days or more past due			-	-	1	5	5	43	-	-	54
Total performing			693	2,750	1,335	2,338	3,096	6,231	-	-	16,443
Nonperforming			-	-	-	1	3	69	-	-	73
Total residential mortgage loans (b)	$		693	2,750	1,335	2,339	3,099	6,300	-	-	16,516
Home equity:
Performing:
Current	$		7	33	40	4	1	157	5,573	9	5,824
30-89 days past due			-	-	-	-	-	4	45	-	49
90 days or more past due			-	-	-	-	-	-	-	-	-
Total performing			7	33	40	4	1	161	5,618	9	5,873
Nonperforming			-	-	-	-	-	11	79	-	90
Total home equity	$		7	33	40	4	1	172	5,697	9	5,963
Indirect secured consumer loans:
Performing:
Current	$		1,816	5,124	2,401	1,343	677	529	-	-	11,890
30-89 days past due			2	45	43	26	13	12	-	-	141
90 days or more past due			-	2	3	3	1	2	-	-	11
Total performing			1,818	5,171	2,447	1,372	691	543	-	-	12,042
Nonperforming			-	1	1	2	2	2	-	-	8
Total indirect secured consumer loans	$		1,818	5,172	2,448	1,374	693	545	-	-	12,050
Credit card:
Performing:
Current	$		-	-	-	-	-	-	2,305	-	2,305
30-89 days past due			-	-	-	-	-	-	41	-	41
90 days or more past due			-	-	-	-	-	-	42	-	42
Total performing			-	-	-	-	-	-	2,388	-	2,388
Nonperforming			-	-	-	-	-	-	29	-	29
Total credit card	$		-	-	-	-	-	-	2,417	-	2,417
Other consumer loans:
Performing:
Current	$		328	864	616	253	47	71	707	-	2,886
30-89 days past due			-	6	7	4	1	1	3	-	22
90 days or more past due			-	1	-	-	-	-	-	-	1
Total performing			328	871	623	257	48	72	710	-	2,909
Nonperforming			-	-	-	-	-	-	2	-	2
Total other consumer loans	$		328	871	623	257	48	72	712	-	2,911
Total consumer loans (b)	$		2,846	8,826	4,446	3,974	3,841	7,089	8,826	9	39,857

(a)

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 March 31, 2020, $79 of these loans were

30-89

days past due and $269 were 90 days or more past due. The Bancorp recognized $1 of losses during the three months ended March 31, 2020 due to claim denials and curtailments associated with these insured or guaranteed loans.

(b)	Excludes $185 of residential mort gage loans measured at fair value at March 31, 2020.

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, 2019 ($ in millions)	Performing		Nonperforming
Residential mortgage loans (a)	$	16,450		91
Home equity		5,989		94
Indirect secured consumer loans		11,531		7
Credit card		2,505		27
Other consumer loans		2,721		2
Total residential mortgage and consumer loans (a)	$	39,196		221

(a)	Excludes $183 of residential mortgage loans measured at fair value at December 31, 2019.

Age Analysis of Past Due Consumer Loans

The following tables summarize the Bancorp’s amortized cost basis in portfolio consumer loans, 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, 2019 ($ in millions)		Leases (b)(c)		Days (c)	or More (c)	Past Due	and Leases	Accruing
Residential mortgage loans (a)		16,372		27	142	169	16,541	50
Consumer loans:
Home equity		5,965		61	57	118	6,083	1
Indirect secured consumer loans		11,389		132	17	149	11,538	10
Credit card		2,434		50	48	98	2,532	42
Other consumer loans		2,702		18	3	21	2,723	1
Total portfolio consumer loans (a)	$	38,862		288	267	555	39,417	104

(a)	Excludes $183 of residential mortgage loans measured at fair value at December 31, 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 December 31, 2019, $94 of these loans were

30-89

days past due and $261 were 90 days or more past due. The Bancorp recognized an immaterial amount of losses during the three months ended March 31, 2019 due to claim denials and curtailments associated with these insured or guaranteed loans.

(c)	Includes accrual and nonaccrua l loans and leases.

Collateral Dependent Loans and Leases

The Bancorp considers a loan or lease to be collateral dependent when the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral.

When a loan or lease is collateral dependent, its fair value is generally based on the fair value less cost to sell of the underlying collateral.

The following table presents the amortized cost basis of the Bancorp’s collateral dependent loans, by portfolio class:


As of March 31, 2020 ($ in millions)		Amortized Cost Basis
Commercial loans and leases:
Commercial and industrial loans	$		392
Commercial mortgage owner-occupied loans			43
Commercial mortgage nonowner-occupied loans			88
Commercial construction loans			1
Commercial leases			19
Total commercial loans and leases			543
Residential mortgage loans			112
Consumer loans:
Home equity			54
Other consumer loans			1
Total consumer loans			55
Total loans and leases	$		710

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 loans which have not yet met the requirements to be returned to accrual status; certain restructured consumer and residential mortgage 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 amortized cost basis of the Bancorp’s nonaccrual loans and leases, by class, and OREO and other repossessed property:


As of March 31, 2020 ($ in millions)								For the three months ended March 31, 2020
		With an ALLL		No Related ALLL		Total		Interest Income Recognized
Commercial loans and leases:
Commercial and industrial loans	$		225		108		333		1
Commercial mortgage owner-occupied loans			17		15		32		-
Commercial mortgage nonowner-occupied loans			60		-		60		-
Commercial construction loans			1		-		1		-
Commercial leases			17		2		19		1
Total nonaccrual portfolio commercial loans and leases			320		125		445		2
Residential mortgage loans			28		45		73		8
Consumer loans:
Home equity			73		17		90		3
Indirect secured consumer loans			8		-		8		-
Credit card			29		-		29		1
Other consumer loans			2		-		2		-
Total nonaccrual portfolio consumer loans			112		17		129		4
Total nonaccrual portfolio loans and leases (a)(b)	$		460		187		647		14
OREO and other repossessed property			-		62		62		-
Total nonperforming portfolio assets (a)(b)	$		460		249		709		14

(a)	Excludes $1 of nonaccrual loans and leases held for sale.

(b)	Includes $21 of nonaccrual government insured commercial loans whose repayments are insured by the SBA of which $12 are restructured nonaccrual government insured commercial loans.

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


($ in millions)	December 31, 2019
Commercial loans and leases:
Commercial and industrial loans	$	338
Commercial mortgage owner-occupied loans		29
Commercial mortgage nonowner-occupied loans		1
Commercial construction loans		1
Commercial leases		28
Total nonaccrual portfolio commercial loans and leases		397
Residential mortgage loans		91
Consumer loans:
Home equity		94
Indirect secured consumer loans		7
Credit card		27
Other consumer loans		2
Total nonaccrual portfolio consumer loans		130
Total nonaccrual portfolio loans and leases (a)(b)	$	618
OREO and other repossessed property		62
Total nonperforming portfolio assets (a)(b)	$	680

(a)	Excludes $7 of nonaccrual loans and leases held for sale.

(b)	Includes $16 of nona ccrual government insured commercial loans whose repayments are insured by the SBA of which $11 are restructured nonaccrual government insured commercial loans.

The Bancorp’s amortized cost basis of consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction was $181 million and $212 million as of March 31, 2020 and December 31, 2019, respectively.

Troubled Debt Restructurings

A loan is accounted for as a TDR if the Bancorp, for economic or legal reasons related to the borrower’s financial difficulties, grants a concession to the borrower that it would not otherwise consider. TDRs include concessions granted under reorganization, arrangement or other provisions of the Federal Bankruptcy Act. Within each of the Bancorp’s loan classes, TDRs typically involve either a reduction of the stated interest rate of the loan, an extension of the loan’s maturity date with a stated rate lower than the current market rate for a new loan with similar risk, or in limited circumstances, a reduction of the principal balance of the loan or the loan’s accrued interest. Modifying the terms of a loan may result in an increase or decrease to the ALLL depending upon the terms modified, the method used to measure the ALLL for a loan prior to modification, the extent of collateral, and whether any charge-offs were recorded on the loan before or at the time of modification. Refer to the ALLL section of Note 4 for information on the Bancorp’s ALLL methodology. Upon modification of a loan, the Bancorp measures the expected credit loss as either the difference between the amortized cost of the loan and the fair value of collateral less cost to sell or the difference between the estimated future cash flows expected to be collected on the modified loan, discounted at the original effective yield of the loan, and the carrying value of the loan. The resulting measurement may result in the need for minimal or no allowance

regardless of which is used because it is probable that all cash flows will be collected under the modified terms of the loan. In addition, if the stated interest rate was increased in a TDR that is not collateral-dependent, the cash flows on the modified loan, using the

pre-modification

interest rate as the discount rate, often exceed the amortized cost basis of the loan. Conversely, upon a modification that reduces the stated interest rate on a loan that is not collateral-dependent, the Bancorp recognizes an increase to the ALLL. If a TDR involves a reduction of the principal balance of the loan or the loan’s accrued interest, that amount is

charged-off

to the ALLL. Loans discharged in a Chapter 7 bankruptcy and not reaffirmed by the borrower are treated as nonaccrual collateral-dependent loans with a

charge-off

recognized to reduce the carrying values of such loans to the fair value of the related collateral less costs to sell.

The Bancorp had commitments to lend additional funds to borrowers whose terms have been modified in a TDR, consisting of line of credit and letter of credit commitments of $45 million and $66 million, respectively, as of March 31, 2020 compared with $41 million and $58 million, respectively, as of December 31, 2019.

The following tables provide a summary of loans and leases, by class, modified in a TDR by the Bancorp during the three months ended:


March 31, 2020 ($ in millions) (a)	Number of Loans Modified in a TDR During the Period (b)		Amortized Cost Basis of Loans Modified in a TDR During the Period		Increase (Decrease) to ALLL Upon Modification		Charge-offs Recognized Upon Modification
Commercial loans:
Commercial and industrial loans		30		$ 69		10		-
Commercial mortgage owner-occupied loans		11		7		-		-
Commercial mortgage nonowner-occupied loans		3		8		-		-
Commercial construction		1		-		-		-
Residential mortgage loans		184		24		-		-
Consumer loans:
Home equity		21		2		(1)		-
Indirect secured consumer loans		22		-		-		-
Credit card		1,884		10		4		-
Total portfolio loans		2,156		$ 120		13		-

(a)	Excludes all loans and leases held for sale.

(b)	Represents number of loans post-modification and excludes loans previously modified in a TDR.


March 31, 2019 ($ in millions) (a)	Number of Loans Modified in a TDR During the Period (b)		Recorded Investment in Loans Modified in a TDR During the Period		(Decrease) Increase to ALLL Upon Modification		Charge-offs Recognized Upon Modification
Commercial loans:
Commercial and industrial loans		13		$ 34		(5)		-
Commercial mortgage owner-occupied loans		3		4		-		-
Residential mortgage loans		136		18		-		-
Consumer loans:
Home equity		21		1		-		-
Indirect secured consumer loans		29		-		-		-
Credit card		1,409		8		2		1
Total portfolio loans		1,611		$ 65		(3)		1

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

(b)	Represents number of loans post-modification and excludes loans previously modified in a TDR.

The Bancorp considers TDRs that become 90 days or more past due under the modified terms as subsequently defaulted. For commercial loans not subject to individual evaluation for an ALLL, the applicable commercial models are applied for purposes of determining the ALLL as well as qualitatively assessing whether those loans are reasonably expected to be further restructured prior to their maturity date and if so the impact such a restructuring would have on the remaining contractual life of the loans. When a residential mortgage, home equity, indirect secured consumer loan or other consumer loan that has been modified in a TDR subsequently defaults, the present value of expected cash flows used in the measurement of the expected credit loss is generally limited to the expected net proceeds from the sale of the loan’s underlying collateral and any resulting collateral shortfall is reflected as a

charge-off

or an increase in ALLL. The Bancorp recognizes an ALLL for the entire balance of the credit card loans modified in a TDR that subsequently default.

The following tables provide a summary of TDRs that subsequently defaulted during the three months ended March 31, 2020 and 2019 and were within 12 months of the restructuring date:


March 31, 2020 ($ in millions) (a)	Number of Contracts			Amortized Cost
Commercial loans:
Commercial mortgage owner-occupied loans		2	$		1
Commercial mortgage nonowner-occupied loans		1			5
Residential mortgage loans		47			6
Consumer loans:
Home equity		1			-
Indirect secured consumer loans		3			-
Credit card		201			1
Total portfolio loans		255	$		13

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


March 31, 2019 ($ in millions) (a)	Number of Contracts			Recorded Investment
Commercial loans:
Commercial and industrial loans		2	$		16
Residential mortgage loans		76			12
Consumer loans:
Home equity		4			-
Credit card		283			2
Total portfolio loans		365	$		30

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

COVID-19

Hardship Relief Programs

In response to the

COVID-19

pandemic, beginning in March 2020, the Bancorp began providing financial hardship relief in the form of payment deferrals and forbearances to consumer and business customers across a wide array of lending products, as well as the suspension of vehicle repossessions and home foreclosures. The payment deferrals and forbearances are currently expected to cover periods of three to six months. In most cases, these offers are not classified as troubled debt restructurings (TDRs) and do not result in loans being placed on nonaccrual status.

For loans that receive a payment deferral or forbearance under these hardship relief programs, the Bancorp continues to accrue interest and recognize interest income during the period of the deferral. Depending on the terms of each program, all or a portion of this accrued interest may be paid directly by the borrower (either during the relief period, at the end of the relief period or at maturity of the loan) or added to the customer’s outstanding balance. For certain programs, the maturity date of the loan may also be extended by the number of payments deferred. Interest income will continue to be recognized at the original contractual interest rate unless that rate is concurrently modified upon entering the relief program (in which case, the modified rate would be used to recognize interest).

For commercial leases that receive payment deferrals under the Bancorp’s

COVID-19

pandemic hardship relief programs, the Bancorp will continue to recognize interest income during the deferral period, but the yield will be recalculated based on the timing and amount of remaining payments over the remaining lease term. The revised yield will be used for prospectively recognizing interest income and adjusting the net investment in the lease. The Bancorp’s hardship relief programs for commercial leases affect the timing of payments but do not generally result in an increase in the rights of the lessor or the obligations of the lessee. Therefore, the Bancorp has elected to forego certain requirements that would typically apply for lease modifications when accounting for the effects of the hardship relief programs. Refer to the Regulatory Developments Related to the

COVID-19

Pandemic section of Note 4 for further information.

The following table provides a summary of

port

olio

loans, by class, that received payment deferrals or forbearances as part of the Bancorp’s

COVID-19

pandemic hardship relief programs during the three months ended:


	Number of Loans		Principal Balance of Loans		Balances of Accounts that were Past Due Prior to Placement into Programs
March 31, 2020 ($ in millions)	Placed into Programs		Placed into Programs		30-89 Days		90 Days or More
Commercial loans:
Commercial and industrial loans		402	$	40		-		-
Commercial mortgage owner-occupied loans		1		-		-		-
Commercial mortgage nonowner-occupied loans		69		32		-		-
Residential mortgage loans		1,592		361		32		35
Consumer loans:
Home equity		240		22		-		-
Indirect secured consumer loans		5,384		114		-		-
Credit card		4,673		28		3		1
Other consumer loans		2,353		30		1		-
Total portfolio loans		14,714	$	627		36		36