Fifth Third Bank 2009 Annual Report Download - page 50

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
48 Fifth Third Bancorp
TABLE 35: RESIDENTIAL MORTGAGE LOANS OUTSTANDING, LTV GREATER THAN 80%, NO MORTGAGE INSURANCE
As of December 31, 2008 ($ in millions)
For the Year Ended
December 31, 2008
By State:
Outstanding
90 Days
Past Due
Nonaccrual
Net Charge-offs
Ohio $760 7 24 14
Florida 495 16 51 67
Michigan 397 3 17 15
North Carolina 202 2 4 2
Indiana 168 1 6 3
Kentucky 110 1 3 1
Illinois 69 1 4 -
All other states 173 5 2 2
Total $2,374 36 111 104
Home Equity Portfolio
The home equity portfolio is managed in two categories, loans
outstanding with a LTV greater than 80% and those loans with a
LTV of less than 80%. The carrying value of the greater than 80%
LTV home equity loans and less than 80% LTV home equity
loans are $5.0 billion and $7.2 billion, respectively, as of
December 31, 2009. Of the total $12.2 billion of outstanding
home equity loans, 82% reside within the Bancorp’s Midwest
footprint of Ohio, Michigan, Kentucky, Indiana and Illinois. The
portfolio has an average FICO score of 730 as of December 31,
2009 compared with 736 as of December 31, 2008.
The Bancorp stopped origination of brokered home equity
loans during the fourth quarter of 2007. In addition, the Bancorp
actively manages lines of credit and makes reductions in lending
limits when it believes it is necessary based on FICO score
deterioration and property devaluation. The Bancorp believes that
home equity loans with a greater than 80% LTV ratio present a
higher level of risk. The following tables provide analysis of these
loans as of December 31, 2009 and 2008.
TABLE 36: HOME EQUITY LOANS OUTSTANDING WITH LTV GREATER THAN 80%
As of December 31, 2009 ($ in millions)
For the Year Ended
December 31, 2009
By State:
Outstanding
Exposure
90 Days
Past Due
Nonaccrual
Net Charge-offs
Ohio $1,727 2,465 13 6 43
Michigan 1,091 1,417 14 6 61
Illinois 505 689 5 3 32
Indiana 499 691 5 2 13
Kentucky 471 672 4 2 12
Florida 198 248 8 3 35
All other states 523 618 9 5 37
Total $5,014 6,800 58 27 233
TABLE 37: HOME EQUITY LOANS OUTSTANDING WITH LTV GREATER THAN 80%
As of December 31, 2008 ($ in millions)
For the Year Ended
December 31, 2008
By State:
Outstanding
Exposure
90 Days
Past Due
Nonaccrual
Net Charge-offs
Ohio $1,844 2,770 13 6 30
Michigan 1,179 1,575 15 7 43
Illinois 527 763 7 6 14
Indiana 544 769 5 3 9
Kentucky 524 764 3 2 8
Florida 224 295 7 3 24
All other states 591 707 10 5 28
Total $5,433 7,643 60 32 156