Fifth Third Bank 2013 Annual Report Download - page 73

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
71 Fifth Third Bancorp
The following table provides a rollforward of portfolio nonperforming loans and leases, by portfolio segment:
TABLE 50: ROLLFORWARD OF PORTFOLIO NONPERFORMING LOANS AND LEASES
Residential
For the year ended December 31, 2013 ($ in millions) Commercial Mortgage Consumer Total
Beginning Balance $ 697 237 95 1,029
Transfers to nonperforming 409 204 297 910
Transfers to performing (9) (52) (60) (121)
Transfers to performing (restructured) (15) (41) (62) (118)
Transfers to held for sale (3) - - (3)
Loans sold from portfolio (38) - - (38)
Loan paydowns/payoffs (295) (112) (11) (418)
Transfers to other real estate owned (81) (73) (13) (167)
Charge-offs (recoveries) (221) 3 (122) (340)
Draws/other extensions of credit 14 - 3 17
Ending Balance $ 458 166 127 751
For the year ended December 31, 2012 ($ in millions)
Beginning Balance $ 1,058 275 105 1,438
Transfers to nonperforming 560 318 354 1,232
Transfers to performing (22) (45) (73) (140)
Transfers to performing (restructured) (31) (57) (90) (178)
Transfers to held for sale (13) - - (13)
Loans sold from portfolio (36) (4) - (40)
Loan paydowns/payoffs (466) (121) (12) (599)
Transfers to other real estate owned (108) (71) - (179)
Charge-offs (297) (58) (194) (549)
Draws/other extensions of credit 52 - 5 57
Ending Balance $ 697 237 95 1,029
Troubled Debt Restructurings
If a borrower is experiencing financial difficulty, the Bancorp may
consider, in certain circumstances, modifying the terms of their loan
to maximize collection of amounts due. Typically, these
modifications reduce the loan interest rate, extend the loan term,
reduce the accrued interest or in limited circumstances, reduce the
principal balance of the loan. These modifications are classified as
TDRs.
At the time of modification, the Bancorp maintains certain
consumer loan TDRs (including residential mortgage loans, home
equity loans, and other consumer loans) on accrual status, provided
there is reasonable assurance of repayment and performance
according to the modified terms based upon a current, well-
documented credit evaluation. Commercial loans modified as part
of a TDR are maintained on accrual status provided there is a
sustained payment history of six months or greater prior to the
modification in accordance with the modified terms and all
remaining contractual payments under the modified terms are
reasonably assured of collection. TDRs of commercial loans and
credit card loans that do not have a sustained payment history of six
months or greater in accordance with the modified terms remain on
nonaccrual status until a six-month payment history is sustained.
Consumer restructured loans on accrual status totaled $1.7
billion at December 31, 2013 and December 31, 2012. As of
December 31, 2013, the percentage of restructured residential
mortgage loans, home equity loans, and credit card loans that are
past due 30 days or more were 17%, 11% and 16%, respectively.
The following table summarizes TDRs by loan type and delinquency status:
TABLE 51: PERFORMING AND NONPERFORMING TDRs
Performing
30-89 Days 90 Days or
A
s of December 31, 2013 ($ in millions) Current Past Due More Past Due Nonaccrual Total
Commercial(b)(c) $ 869 - - 228 $ 1,097
Residential mortgages(a) 1,045 82 114 84 1,325
Home equity 368 26 - 18 412
Credit card 25 - - 33 58
A
utomobile and other consumer loans and leases 24 1 - 1 26
Total $ 2,331 109 114 364 $ 2,918
(a) Information includes advances made pursuant to servicing agreements for GNMA mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the
Department of Veterans Affairs. As of December 31, 2013, these advances represented $155 of current loans, $31 of 30-89 days past due loans and $88 of 90 days or more past due loans.
(b) Excludes $8 of restructured accruing loans and $21 of restructured nonaccrual loans 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.
(c) Excludes restructured nonaccrual loans held for sale.