Fifth Third Bank 2011 Annual Report Download - page 94

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
92 Fifth Third Bancorp
The components of the investment in lease financing at December 31:
($ in millions) 2011 2010
Rentals receivable, net of principal and interest on nonrecourse debt $ 3,757 3,775
Estimated residual value of leased assets 772 900
Initial direct cost, net of amortization 16 16
Gross investment in lease financing 4,545 4,691
Unearned income (942) (1,040)
Net investment in lease financing(a) $ 3,603 3,651
(a) The accumulated allowance for uncollectible minimum lease payments was
$79 million
and $112 million at
December 31, 2011
and 2010, respectively.
The Bancorp periodically reviews residual values associated with its
leasing portfolio. Declines in residual values that are deemed to be
other-than-temporary are recognized as a loss. The Bancorp
recognized $4 million of residual value write-downs related to
commercial leases for the year ended December 31, 2011 and an
immaterial amount of residual value write-downs related to
commercial leases was recognized for the year ending December 31,
2010. The Bancorp recognized no residual value write-downs
relating to consumer automobile leases in 2011 and 2010. At
December 31, 2011, the minimum future lease payments receivable
for each of the years 2012 through 2016 was $662 million, $561
million, $553 million, $360 million and $76 million, respectively.
6. CREDIT QUALITY AND THE ALLOWANCE FOR LOAN AND LEASE LOSSES
The Bancorp disaggregates ALLL balances and transactions in the
ALLL by portfolio segment. Credit quality related disclosures for
loans and leases are further disaggregated by class. The
disaggregated disclosure requirements relating to activity that occurs
during a reporting period do not apply to periods beginning before
December 15, 2010.
Allowance for Loan and Lease Losses
The following table summarizes transactions in the ALLL for the years ended December 31:
($ in millions) 2011 2010 2009
Balance at January 1 $ 3,004 3,749 2,787
Impact of change in accounting principle - 45 -
Losses charged off (1,314) (2,485) (2,719)
Recoveries of losses previously charged off 142 157 138
Provision for loan and lease losses 423 1,538 3,543
Balance at December 31 $ 2,255 3,004 3,749
The following tables summarize transactions in the ALLL by portfolio segment:
For the year ended December 31, 2011 Residential
($ in millions) Commercial Mortgage Consumer Unallocated Total
Transactions in the ALLL:
Balance at January 1 $ 1,989 310 555 150 3,004
Losses charged off (615) (180) (519) - (1,314)
Recoveries of losses previously charged off 61 7 74 - 142
Provision for loan and lease losses 92 90 255 (14) 423
Balance at December 31 $ 1,527 227 365 136 2,255
For the year ended December 31, 2010 Residential
($ in millions) Commercial Mortgage Consumer Unallocated Total
Transactions in the ALLL:
Balance at January 1 $ 2,517 375 664 193 3,749
Losses charged off (1,444) (441) (600) - (2,485)
Recoveries of losses previously charged off 80 2 75 - 157
Provision for loan and lease losses 836 374 371 (43) 1,538
Impact of change in accounting principal - - 45 - 45
Balance at December 31 $ 1,989 310 555 150 3,004