Fifth Third Bank 2012 Annual Report Download - page 101

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
99 Fifth Third Bancorp
The components of the investment in lease financing at December 31:
($ in millions) 2012 2011
Rentals receivable, net of principal and interest on nonrecourse debt $ 3,543 3,757
Estimated residual value of leased assets 760 772
Initial direct cost, net of amortization 16 16
Gross investment in lease financing 4,319 4,545
Unearned income (758) (942)
Net investment in lease financing(a) $ 3,561 3,603
(a) The accumulated allowance for uncollectible minimum lease payments was
$67 million
and $79 million at
December 31, 2012
and 2011, 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 $9 million and $4 million of residual value write-downs
related to commercial leases for the years ended December 31, 2012
and 2011, respectively. The residual value write-downs related to
commercial leases are recorded in corporate banking revenue in the
Consolidated Statements of Income. The Bancorp recognized no
residual value write-downs relating to consumer automobile leases
in 2012 and 2011. At December 31, 2012, the minimum future lease
payments receivable for each of the years 2013 through 2017 was
$612 million, $593 million, $472 million, $389 million and $312
million, respectively.
6. CREDIT QUALITY AND THE ALLOWANCE FOR LOAN AND LEASE LOSSES
The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and
leases are further disaggregated by class.
Allowance for Loan and Lease Losses
The following tables summarize transactions in the ALLL by portfolio segment:
For the year ended December 31, 2012 Residential
($ in millions) Commercial Mortgage Consumer Unallocated Total
Transactions in the ALLL:
Balance at January 1 $ 1,527 227 365 136 2,255
Losses charged off (358) (129) (350) - (837)
Recoveries of losses previously charged off 61 7 65 - 133
Provision for loan and lease losses 6 124 198 (25) 303
Balance at December 31 $ 1,236 229 278 111 1,854
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 principle - - 45 - 45
Balance at December 31 $ 1,989 310 555 150 3,004