Fifth Third Bank 2012 Annual Report Download - page 108

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
106 Fifth Third Bancorp
The following table provides a summary of loans modified in a TDR by the Bancorp during the year ended December 31:
Recorded investment Increase
Number of loans in loans modified (Decrease) Charge-offs
modified in a TDR in a TDR to ALLL upon recognized upon
2012 ($ in millions)(a) during the period(b) during the period modification modification
Commercial:
Commercial and industrial loans 108 $ 84 (7) 9
Commercial mortgage owner-occupied loans 67 53 (8) 2
Commercial mortgage nonowner-occupied loans 67 91 (7) -
Commercial construction loans 17 38 (4) -
Commercial leases 8 7 1 -
Residential mortgage loans 1,758 340 35 -
Consumer:
Home equity 1,343 82 1 -
A
utomobile loans 1,289 23 2 -
Credit card 11,407 75 11 -
Total portfolio loans and leases 16,064 $ 793 24 11
Recorded investment Increase
Number of loans in loans modified (Decrease) Charge-offs
modified in a TDR in a TDR to ALLL upon recognized upon
2011 ($ in millions)(a) during the period(b) during the period modification modification
Commercial:
Commercial and industrial loans 52 $ 83 (4) 3
Commercial mortgage owner-occupied loans 32 55 (6) 2
Commercial mortgage nonowner-occupied loans 39 90 (21) 3
Commercial construction loans 26 59 (9) 1
Commercial leases 2 - - -
Residential mortgage loans 1,728 338 34 -
Consumer:
Home equity 1,317 80 1 -
A
utomobile loans 1,482 26 3 -
Credit card 12,234 79 11 -
Total portfolio loans and leases 16,912 $ 810 9 9
(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.
(b) Represents number of loans post-modification.
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 review for impairment,
the historical loss rates that are applied to such commercial loans for
purposes of determining the allowance include historical losses
associated with subsequent defaults on loans previously modified in
a TDR. For consumer loans, the Bancorp performs a qualitative
assessment of the adequacy of the consumer ALLL by comparing
the consumer ALLL to forecasted consumer losses over the
projected loss emergence period (the forecasted losses include the
impact of subsequent defaults of consumer TDRs). When a
residential mortgage, home equity, auto 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
potential impairment loss is generally limited to the expected net
proceeds from the sale of the loan’s underlying collateral and any
resulting impairment loss is reflected as a charge-off or an increase
in ALLL. When a credit card loan that has been modified in a TDR
subsequently defaults, the calculation of the impairment loss is
consistent with the Bancorp’s calculation for other credit card loans
that have become 90 days or more past due.