Fifth Third Bank 2013 Annual Report Download - page 107

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
105 Fifth Third Bancorp
The components of the investment in lease financing at December 31:
($ in millions) 2013 2012
Rentals receivable, net of principal and interest on nonrecourse debt $ 3,556 3,543
Estimated residual value of leased assets 754 760
Initial direct cost, net of amortization 15 16
Gross investment in lease financing 4,325 4,319
Unearned income (700) (758)
Net investment in lease financing(a) $ 3,625 3,561
(a) The accumulated allowance for uncollectible minimum lease payments was
$53 million
and $67 million at
December 31, 2013
and 2012, 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 $13 million and $9 million of residual value write-downs
related to commercial leases for the years ended December 31, 2013
and 2012, respectively. The residual value write-downs related to
commercial leases are recorded in corporate banking revenue in the
Consolidated Statements of Income. At December 31, 2013, the
minimum future lease payments receivable for each of the years
2014 through 2018 was $664 million, $591 million, $505 million,
$389 million and $289 million, respectively.
6. CREDIT QUALITY AND THE ALLOWANCE FOR LOAN AND LEASE LOSSES
The Bancorp disaggregates ALLL balances and transactions in the ALLL by portfolio segment. Credit quality related disclosures for loans and
leases are further disaggregated by class.
Allowance for Loan and Lease Losses
The following tables summarize transactions in the ALLL by portfolio segment:
For the year ended December 31, 2013 Residential
($ in millions) Commercial Mortgage Consumer Unallocated Total
Transactions in the ALLL:
Balance at January 1 $ 1,236 229 278 111 1,854
Losses charged off (284) (70) (283) - (637)
Recoveries of losses previously charged off 64 10 62 - 136
Provision for loan and lease losses 42 20 168 (1) 229
Balance at December 31 $ 1,058 189 225 110 1,582
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