Fifth Third Bank 2014 Annual Report Download - page 105

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
103 Fifth Third Bancorp
5. LOANS AND LEASES
The Bancorp diversifies its loan and lease portfolio by offering a
variety of loan and lease products with various payment terms and
rate structures. Lending activities are concentrated within those
states in which the Bancorp has banking centers and are primarily
located in the Midwestern and Southeastern regions of the United
States. The Bancorp’s commercial loan portfolio consists of lending
to various industry types. Management periodically reviews the
performance of its loan and lease products to evaluate whether they
are performing within acceptable interest rate and credit risk levels
and changes are made to underwriting policies and procedures as
needed. The Bancorp maintains an allowance to absorb loan and
lease losses inherent in the portfolio. For further information on
credit quality and the ALLL, refer to Note 6.
The following table provides a summary of the total loans and leases classified by primary purpose as of December 31:
($ in millions) 2014 2013
Loans and leases held for sale:
Commercial and industrial loans $36 31
Commercial mortgage loans 11 3
Commercial construction loans 2 2
Commercial leases 1 1
Residential mortgage loans 1,193 890
Other consumer loans and leases 18 17
Total loans and leases held for sale $1,261 944
Portfolio loans and leases:
Commercial and industrial loans $40,765 39,316
Commercial mortgage loans 7,399 8,066
Commercial construction loans 2,069 1,039
Commercial leases 3,720 3,625
Total commercial loans and leases 53,953 52,046
Residential mortgage loans 12,389 12,680
Home equity 8,886 9,246
A
utomobile loans 12,037 11,984
Credit card 2,401 2,294
Other consumer loans and leases 418 364
Total consumer loans and leases 36,131 36,568
Total portfolio loans and leases $90,084 88,614
Total portfolio loans and leases are recorded net of unearned
income, which totaled $665 million as of December 31, 2014 and
$700 million as of December 31, 2013. Additionally, portfolio loans
and leases are recorded net of unamortized premiums and
discounts, deferred loan fees and costs, and fair value adjustments
(associated with acquired loans or loans designated as fair value
upon origination) which totaled a net premium of $169 million and
$111 million as of December 31, 2014 and 2013, respectively.
The Bancorp’s FHLB and FRB advances are generally secured by
loans. The Bancorp had loans of $11.1 billion and $10.9 billion at
December 31, 2014 and 2013, respectively, pledged at the FHLB,
and loans of $33.9 billion and $33.5 billion at December 31, 2014
and 2013, respectively, pledged at the FRB.
The following table presents a summary of the total loans and leases owned by the Bancorp as of and for the years ended December 31:
90 Days Past Due Net
Balance and Still Accruing Charge-Offs
($ in millions) 2014 2013 2014 2013 2014 2013
Commercial and industrial loans $ 40,801 39,347 $ - - $ 222 168
Commercial mortgage loans 7,410 8,069 - - 26 47
Commercial construction loans 2,071 1,041 - - 12 4
Commercial leases 3,721 3,626 - - 1 1
Residential mortgage loans 13,582 13,570 56 66 126 60
Home equity 8,886 9,246 - - 59 97
A
utomobile loans 12,037 11,984 8 8 27 22
Credit card 2,401 2,294 23 29 82 78
Other consumer loans and leases 436 381 - - 20 24
Total loans and leases $ 91,345 89,558 $87 103 $ 575 501
Less: Loans held for sale $ 1,261 944
Total portfolio loans and leases $ 90,084 88,614