Fifth Third Bank 2014 Annual Report Download - page 54

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
52 Fifth Third Bancorp
BALANCE SHEET ANALYSIS
Loans and Leases
The Bancorp classifies its loans and leases based upon the primary
purpose of the loan or lease. Table 22 summarizes end of period
loans and leases, including loans held for sale and Table 23
summarizes average total loans and leases, including loans held for
sale.
TABLE 22: COMPONENTS OF TOTAL LOANS AND LEASES (INCLUDES HELD FOR SALE)
A
s of December 31 ($ in millions) 2014 2013 2012 2011 2010
Commercial:
Commercial and industrial loans $40,801 39,347 36,077 30,828 27,275
Commercial mortgage loans 7,410 8,069 9,116 10,214 10,992
Commercial construction loans 2,071 1,041 707 1,037 2,111
Commercial leases 3,721 3,626 3,549 3,531 3,378
Subtotal – commercial 54,003 52,083 49,449 45,610 43,756
Consumer:
Residential mortgage loans 13,582 13,570 14,873 13,474 10,857
Home equity 8,886 9,246 10,018 10,719 11,513
A
utomobile loans 12,037 11,984 11,972 11,827 10,983
Credit card 2,401 2,294 2,097 1,978 1,896
Other consumer loans and leases 436 381 312 364 702
Subtotal – consumer 37,342 37,475 39,272 38,362 35,951
Total loans and leases $91,345 89,558 88,721 83,972 79,707
Total portfolio loans and leases (excludes loans held for sale) $90,084 88,614 85,782 81,018 77,491
Loans and leases, including loans held for sale, increased $1.8
billion, or two percent, from December 31, 2013. The increase in
loans and leases from December 31, 2013 was the result of a $1.9
billion, or four percent, increase in commercial loans and leases
partially offset by a $133 million decrease in consumer loans and
leases.
Commercial loans and leases increased from December 31,
2013 primarily due to increases in commercial and industrial loans
and commercial construction loans partially offset by a decrease in
commercial mortgage loans. Commercial and industrial loans
increased $1.5 billion, or four percent, from December 31, 2013 and
commercial construction loans increased $1.0 billion, or 99%, from
December 31, 2013 primarily driven by an increase in new loan
origination activity and utilization resulting from a strengthening
economy and targeted marketing efforts. Commercial mortgage
loans decreased $659 million, or eight percent, from December 31,
2013 due to continued run-off as the level of new originations was
outpaced by increased repayments on the current portfolio.
Consumer loans and leases decreased from December 31, 2013
primarily due to a decrease in home equity partially offset by an
increase in credit card loans. Home equity decreased $360 million,
or four percent, from December 31, 2013 as payoffs exceeded new
loan production. Credit card loans increased $107 million, or five
percent, from December 31, 2013 primarily due to an increase in
average balances per account and an increase in new customer
accounts.
TABLE 23: COMPONENTS OF AVERAGE TOTAL LOANS AND LEASES (INCLUDES HELD FOR SALE)
For the years ended December 31 ($ in millions) 2014 2013 2012 2011 2010
Commercial:
Commercial and industrial loans $41,178 37,770 32,911 28,546 26,334
Commercial mortgage loans 7,745 8,481 9,686 10,447 11,585
Commercial construction loans 1,492 793 835 1,740 3,066
Commercial leases 3,585 3,565 3,502 3,341 3,343
Subtotal – commercial 54,000 50,609 46,934 44,074 44,328
Consumer:
Residential mortgage loans 13,344 14,428 13,370 11,318 9,868
Home equity 9,059 9,554 10,369 11,077 11,996
A
utomobile loans 12,068 12,021 11,849 11,352 10,427
Credit card 2,271 2,121 1,960 1,864 1,870
Other consumer loans and leases 385 360 340 529 743
Subtotal – consumer 37,127 38,484 37,888 36,140 34,904
Total average loans and leases $91,127 89,093 84,822 80,214 79,232
Total average portfolio loans and leases (excludes loans held for sale) $90,485 86,950 82,733 78,533 77,045
Average loans and leases, including loans held for sale, increased
$2.0 billion, or two percent, from December 31, 2013. The increase
from December 31, 2013 was the result of a $3.4 billion, or seven
percent, increase in average commercial loans and leases partially
offset by a $1.4 billion, or four percent, decrease in average
consumer loans and leases.
Average commercial loans and leases increased from
December 31, 2013 primarily due to increases in average
commercial and industrial loans and average commercial
construction loans partially offset by a decrease in average
commercial mortgage loans. Average commercial and industrial
loans increased $3.4 billion, or nine percent, from December 31,
2013 and average commercial construction loans increased $699