Fifth Third Bank 2013 Annual Report Download - page 115

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
113 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
2013 ($ in millions)(a) during the year(b) during the year modification modification
Commercial:
Commercial and industrial loans 146 $604 39 44
Commercial mortgage owner occupied loans(c) 65 19 (2) -
Commercial mortgage non-owner occupied loans 59 72 (7) -
Commercial construction loans 4 34 (2) -
Commercial leases 1 2 (5) -
Residential mortgage loans 1,620 249 28 -
Consumer:
Home equity 695 37 (1) -
A
utomobile loans 499 14 1 -
Credit card 8,202 50 7 -
Total portfolio loans and leases 11,291 $1,081 58 44
Recorded investment Increase
Number of loans in loans modified (Decrease) Charge-offs
modified in a TDR in a TDR to ALLL upon recognized upon
2012 ($ in millions)(a) during the year(b) during the year modification modification
Commercial:
Commercial and industrial loans 108 $84 (7) 9
Commercial mortgage owner occupied loans 67 53 (8) 2
Commercial mortgage non-owner 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
(a) Excludes all loans and leases held for sale and loans acquired with deteriorated credit quality.
(b) Represents number of loans post-modification.
(c) Excludes five loans modified in a TDR during the year ended
December 31, 2013
associated with a consolidated variable interest entity in which the Bancorp has no continuing credit risk due to
the risk being assumed by a third party. The TDR resulted in a
$7
increase to the ALLL and a
$2
charge-off at modification and has a recorded investment of
$28
.
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.