Fifth Third Bank 2014 Annual Report Download - page 113

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
111 Fifth Third Bancorp
The following tables provide a summary of loans modified in a TDR by the Bancorp during the years 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
2014 ($ in millions)(a) during the year(b) during the year modification modification
Commercial:
Commercial and industrial loans 128 $ 230 12 6
Commercial mortgage owner-occupied loans 32 54 (1) -
Commercial mortgage nonowner-occupied loans 28 30 (3) 2
Residential mortgage loans 1,093 160 8 -
Consumer:
Home equity 284 12 - -
A
utomobile loans 608 10 1 -
Credit card 8,929 52 10 -
Total portfolio loans and leases 11,102 $ 548 27 8
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 nonowner-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 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
(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 VIE in which the Bancorp has no continuing credit risk due to the risk being
assumed by a third party. The TDR had a recorded investment of $29 at modification, ALLL increased $7 upon modification, and a charge-off of $2 was recognized upon 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,
loss rates that are applied 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. The Bancorp fully reserves for
credit card loans modified in a TDR that subsequently default.