Fifth Third Bank 2011 Annual Report Download - page 102

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
100 Fifth Third Bancorp
7. LOANS WITH DETERIORATED CREDIT QUALITY ACQUIRED IN A TRANSFER
The Bancorp has acquired in prior years certain loans for which
there was evidence of deterioration of credit quality since
origination and for which it was probable, at acquisition, that all
contractually required payments would not be collected. During the
years ended December 31, 2011, 2010 and 2009, the Bancorp
recorded provision expense for loans acquired with deteriorated
credit quality of $7 million, $6 million and $21 million, respectively,
in the Consolidated Statements of Income. In addition, as of
December 31, 2011 and 2010, the Bancorp maintained an allowance
for loan and lease losses of $2 million and $3 million, respectively,
on these loans.
The following table reflects the outstanding balance of all
contractually required payments and carrying amounts of loans
acquired with deteriorated credit quality at December 31:
($ in millions) 2011 2010
Commercial $ 9 15
Consumer 28 58
Outstanding balance $ 37 73
Carrying Amount $ 11 24
A summary of activity in the accretable yield is provided.
Accretable
($ in millions) Yield
Balance as of December 31, 2008 $ 28
A
dditions -
A
ccretion (6)
Disposals -
Reclassifications from (to) nonaccretable differences, net (13)
Balance as of December 31, 2009 $ 9
A
dditions -
A
ccretion (2)
Disposals (2)
Reclassifications from (to) nonaccretable differences, net (3)
Balance as of December 31, 2010 $ 2
A
dditions -
A
ccretion (2)
Disposals -
Reclassifications from (to) nonaccretable differences, net -
Balance as of December 31, 2011 $ -
The following table reflects loans that were acquired with deteriorated credit quality during the years ended December 31:
($ in millions) 2011 2010 2009
Contractually required payments receivable at acquisition:
Commercial $ - - -
Consumer - 23 -
Total $ - 23 -
Cash flows expected to be collected at acquisition $ - 8 -
Fair value of acquired loans at acquisition - 8 -