MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 2009. In addition, average certificates of deposit over $100,000  decreased $4.3 billion from 2009 due to maturities throughout  2010. The decreased reliance on wholesale funding in 2010 was a  result of the growth of core deposits and a decline in average  interest earning assets. For more information on the Bancorp’s  interest rate risk management, including estimated earnings  sensitivity to changes in market interest rates, see the Market Risk  Management section of MD&A.  shift to lower cost core deposits and a decrease in rates on average  time deposits of 71 bp compared to 2009.  Interest expense on wholesale funding decreased 35%  compared to the prior year due to a 34% decrease in average  balances and a 45 bp decrease in average rates. In 2010, wholesale  funding represented 25% of interest-bearing liabilities, down from  35% in 2009. Impacting this change was a decrease of $4.8 billion  in average other short term borrowings due to the repayment of  Term Auction Facility funds and FHLB advances which had an  average balance of $3.7 billion and $1.2 billion, respectively, in  30 Fifth Third Bancorp For the years ended December 31  2010  2009  2008  ($ in millions)  Average  Balance Revenue/ Cost Average  Yield/Rate Average  Balance Revenue/  Cost  Average  Yield/Rate  Average  Balance  Revenue/ Cost  Average  Yield/Rate Assets  Interest-earning assets:  Loans and leases  (a) :  Commercial and industrial loans  $26,334 $1,238 4.70 % $27,556 $1,162 4.22 %  $28,426  $1,520 5.35 % Commercial mortgage  11,585 476 4.11  12,511 545 4.35 12,776 866 6.78 Commercial construction  3,066 93 3.01  4,638 134 2.90 5,846 342 5.85 Commercial leases  3,343 147 4.40  3,543 150 4.24 3,680 18 0.49 Subtotal - commercial  44,328 1,954 4.41  48,248 1,991 4.13  50,728  2,746 5.41  Residential mortgage  9,868 478 4.84  10,886 602 5.53 10,993 705 6.41 Home equity  11,996 479 4.00  12,534 520 4.15 12,269 701 5.71 Automobile loans  10,427 608 5.83  8,807 556 6.31 8,925 566 6.34 Credit card  1,870 201 10.73  1,907 193 10.10 1,708 167 9.77 Other consumer loans and leases  743 116 15.58  1,009 86 8.49 1,212 64 5.28 Subtotal - consumer  34,904 1,882 5.39  35,143 1,957 5.57 35,107 2,203 6.27 Total loans and leases  79,232 3,836 4.84  83,391 3,948 4.73 85,835 4,949 5.77 Securities:  Taxable  16,054 650 4.05  16,861 721 4.28 13,082 643 4.91 Exempt from income taxes  (a) 317 13 3.92  239 17 7.19 342 25 7.35 Other short-term investments  3,328 8 0.25  1,035 1 0.14 621 13 2.15 Total interest-earning assets  98,931 4,507 4.56  101,526 4,687 4.62 99,880 5,630 5.64 Cash and due from banks  2,245 2,329 2,490 Other assets  14,841 14,266 13,411 Allowance for loan and lease losses  (3,583) (3,265) (1,485) Total assets  $112,434 $114,856 $114,296 Liabilities and Equity  Interest-bearing liabilities:  Interest-bearing core deposits:  Interest checking  $18,218 $52 0.29 % $15,070 $40 0.26 %  $14,191  $128 0.91 % Savings 19,612 107 0.55  16,875 127 0.75 16,192 224 1.38 Money market  4,808 19 0.40  4,320 26 0.60 6,127 118 1.92 Foreign office deposits  3,355 12 0.35  2,108 10 0.45 2,153 34 1.60 Other time deposits  10,526 276 2.62  14,103 470 3.33 11,135 411 3.69 Total interest-bearing core deposits  56,519 466 0.83  52,476 673 1.28 49,798 915 1.84 Certificates - $100,000 and over  6,083 125 2.06  10,367 280 2.70 9,531 324 3.40 Other foreign office deposits  6 - 0.13 157 - 0.20 2,067 50 2.42 Federal funds purchased  291 1 0.17  517 1 2,975 70 2.34 Other short-term borrowings  1,635 3 0.21  6,463 42 0.64 7,785 178 2.29 Long-term debt  10,902 290 2.65  11,035 318 2.89 13,903 557 4.01 Total interest-bearing liabilities  75,436 885 1.17 81,015 1,314 1.62 86,059 2,094 2.43 Demand deposits  19,669 16,862 14,017 Other liabilities  3,580 3,926 4,182 Total liabilities  98,685 101,803 104,258 Equity  13,749 13,053 10,038 Total liabilities and equity  $112,434 $114,856 $114,296 Net interest income  $3,622 $3,373 $3,536 Net interest margin  3.66 % 3.32 %  3.54 % Net interest rate spread 3.39  3.00 3.21 Interest-bearing liabilities to interest-earning assets  76.25  79.80 86.16 (a) The FTE adjustments included in the above table are  $18 , $19 and $22 for the years ended  December 31, 2010 , 2009 and 2008, respectively.  TABLE 5: CONSOLIDATED AVERAGE BALANCE SHEETS AND ANALYSIS OF NET INTEREST INCOME