MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS TABLE 39: SUMMARY OF CREDIT LOSS EXPERIENCE  For the years ended December 31 ($ in millions)  2010 2009 2008 2007 2006 Losses charged off:  Commercial and industrial loans  ($631) (768) (667) (121) (131) Commercial mortgage loans  (541) (436) (618) (46) (27) Commercial construction loans  (265) (420) (750) (29) (7) Commercial leases  (7) (11) - (1) (4) Residential mortgage loans  (441) (359) (243) (43) (23) Home equity  (276) (330) (212) (106) (65) Automobile loans  (132) (189) (168) (117) (87) Credit card  (164) (178) (101) (54) (36) Other consumer loans and leases  (28) (28) (32) (27) (28) Total losses  (2,485) (2,719) (2,791) (544) (408) Recoveries of losses previously charged off:  Commercial and industrial loans  45 50 18 12 24 Commercial mortgage loans  17 14 5 2 3 Commercial construction loans  13 4 2 - - Commercial leases  5 4 1 1 5 Residential mortgage loans  2 2 - - - Home equity  12 8 7 9 9 Automobile loans  44 41 34 32 30 Credit card  9 8 7 8 5 Other consumer loans and leases  10 7 7 18 16 Total recoveries  157 138 81 82 92 Net losses charged off:  Commercial and industrial loans  (586) (718) (649) (109) (107) Commercial mortgage loans  (524) (422) (613) (44) (24) Commercial construction loans  (252) (416) (748) (29) (7) Commercial leases  (2) (7) 1 - 1 Residential mortgage loans  (439) (357) (243) (43) (23) Home equity  (264) (322) (205) (97) (56) Automobile loans  (88) (148) (134) (85) (57) Credit card  (155) (170) (94) (46) (31) Other consumer loans and leases  (18) (21) (25) (9) (12) Total net losses charged off  ($2,328) (2,581) (2,710) (462) (316) Net charge-offs as a percent of average loans and leases (excluding held for sale): Commercial and industrial loans  2.23 %  2.61 2.31 .49 .53 Commercial mortgage loans  4.58 3.43 4.80 .40 .25 Commercial construction loans  8.48 9.24 12.80 .51 .11 Commercial leases  0.05 0.22 (.02) .01 (.03) Total commercial loans and leases  3.10 3.27 3.99 .43 .34 Residential mortgage loans  5.49 4.15 2.47 .48 .27 Home equity  2.20 2.57 1.67 .82 .46 Automobile loans  0.85 1.68 1.56 .83 .60 Credit card  8.28 8.87 5.51 3.55 3.65 Other consumer loans and leases  2.58 2.14 2.10 .83 .91 Total consumer loans and leases  2.92 3.10 2.08 .84 .55 Total net losses charged off  3.02 %  3.20 3.23 .61 .44 Allowance for Credit Losses  The allowance for credit losses is comprised of the ALLL and the  reserve for unfunded commitments. The ALLL provides coverage  for probable and estimable losses in the loan and lease portfolio.  The Bancorp evaluates the ALLL each quarter to determine its  adequacy to cover inherent losses. Several factors are taken into  consideration in the determination of the overall ALLL, including  an unallocated component. These factors include, but are not  limited to, the overall risk profile of the loan and lease portfolios,  net charge-off experience, the extent of impaired loans and leases,  the level of nonaccrual loans and leases, the level of 90 days past  due loans and leases and the overall percentage level of the ALLL.  The Bancorp also considers overall asset quality trends, credit  administration and portfolio management practices, risk identification practices, credit policy and underwriting practices,  overall portfolio growth, portfolio concentrations and current  national and local economic conditions. See the Critical Accounting Policies section for more information.  In 2010 the Bancorp did not substantively change any  material aspect of its overall approach in the determination of the  ALLL and there have been no material changes in assumptions or  estimation techniques as compared to prior periods that impacted  the determination of the current period allowance. In addition to  the ALLL, the Bancorp maintains a reserve for unfunded  commitments recorded in other liabilities in the Consolidated  Balance Sheets. The methodology used to determine the adequacy  of this reserve is similar to the Bancorp’s methodology for  determining the ALLL. The provision for unfunded commitments  is included in other noninterest expense in the Consolidated  Statements of Income.  Certain inherent, but unconfirmed losses are probable within  the loan and lease portfolio. The Bancorp’s current methodology  for determining the level of losses is based on historical loss rates,  current credit grades, specific allocation on loans modified in a  TDR and impaired commercial credits above specified thresholds  and other qualitative adjustments. Due to the heavy reliance on  realized historical losses and the credit grade rating process, the  model derived required reserves tend to slightly lag the deterioration in the portfolio, in a stable or deteriorating credit  environment, and tend not to be as responsive when improved  conditions have presented themselves. Given these model limitations, the qualitative adjustment factors may be incremental  or decremental to the quantitative model results. An unallocated  component to the ALLL is maintained to recognize the imprecision in estimating and measuring loss. The unallocated  allowance as a percent of total portfolio loans and leases for the  56 Fifth Third Bancorp