v2.4.0.6
Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2011
Loans And Allowance For Credit Losses Tables [Abstract]  
Loans and Allowance for Credit Losses, Loans Outstanding
            
            
       December 31,
(in millions)  2011 2010200920082007
Commercial:      
 Commercial and industrial$ 167,216 151,284 158,352 202,469 90,468
 Real estate mortgage  105,975 99,435 97,527 94,923 36,747
 Real estate construction  19,382 25,333 36,978 42,861 18,854
 Lease financing  13,117 13,094 14,210 15,829 6,772
 Foreign (1)  39,760 32,912 29,398 33,882 7,441
  Total commercial  345,450 322,058 336,465 389,964 160,282
Consumer:      
 Real estate 1-4 family first mortgage  228,894 230,235 229,536 247,894 71,415
 Real estate 1-4 family junior lien mortgage  85,991 96,149 103,708 110,164 75,565
 Credit card  22,836 22,260 24,003 23,555 18,762
 Other revolving credit and installment  86,460 86,565 89,058 93,253 56,171
  Total consumer  424,181 435,209 446,305 474,866 221,913
   Total loans$ 769,631 757,267 782,770 864,830 382,195
            

  • Substantially all of our foreign loan portfolio is commercial loans. Loans are classified as foreign if the borrower's primary address is outside of the United States.
Loans and Allowance for Credit Losses, Significant Activity
              
              
       2011  2010
(in millions)CommercialConsumerTotal CommercialConsumerTotal
Year ended December 31,        
Purchases (1)$ 7,078 284 7,362  2,135 162 2,297
Sales  (4,705) (1,018) (5,723)  (5,930) (553) (6,483)
Transfers from/(to) MHFS/LHFS (1)  (164) (75) (239)  (1,461) (82) (1,543)
              

  • The “Purchases” and “Transfers (from)/to MHFS/LHFS" categories exclude activity in government insured/guaranteed loans where Wells Fargo acts as servicer. On a net basis, this activity was $10.4 billion and $7.0 billion for the year ended December 31, 2011 and 2010, respectively.

 

 
Loans and Allowance for Credit Losses, Commitments to Lend
         
         
       December 31,
(in millions)  2011 2010
Commercial:   
 Commercial and industrial$ 201,061 185,947
 Real estate mortgage  5,419 4,596
 Real estate construction  7,347 5,698
 Foreign  6,083 7,775
  Total commercial  219,910 204,016
Consumer:   
 Real estate 1-4 family first mortgage  37,185 36,562
 Real estate 1-4 family   
  junior lien mortgage  55,207 58,618
 Credit card  65,111 62,019
 Other revolving credit and installment  17,617 18,458
  Total consumer  175,120 175,657
   Total unfunded   
    credit commitments$ 395,030 379,673
Loans and Allowance for Credit Losses, Allowance for Credit Losses
             
             
       Year ended December 31,
(in millions)   2011  2010 2009 2008 2007
Balance, beginning of year$ 23,463  25,031 21,711 5,518 3,964
Provision for credit losses  7,899  15,753 21,668 15,979 4,939
Interest income on certain impaired loans (1)  (332)  (266) - - -
Loan charge-offs:       
 Commercial:       
  Commercial and industrial  (1,598)  (2,775) (3,365) (1,653) (629)
  Real estate mortgage   (636)  (1,151) (670) (29) (6)
  Real estate construction  (351)  (1,189) (1,063) (178) (14)
  Lease financing  (38)  (120) (229) (65) (33)
  Foreign  (173)  (198) (237) (245) (265)
   Total commercial   (2,796)  (5,433) (5,564) (2,170) (947)
 Consumer:        
  Real estate 1-4 family first mortgage  (3,883)  (4,900) (3,318) (540) (109)
  Real estate 1-4 family junior lien mortgage  (3,763)  (4,934) (4,812) (2,204) (648)
  Credit card  (1,449)  (2,396) (2,708) (1,563) (832)
  Other revolving credit and installment  (1,724)  (2,437) (3,423) (2,300) (1,913)
   Total consumer  (10,819)  (14,667) (14,261) (6,607) (3,502)
    Total loan charge-offs  (13,615)  (20,100) (19,825) (8,777) (4,449)
Loan recoveries:       
 Commercial:       
  Commercial and industrial  419  427 254 114 119
  Real estate mortgage   143  68 33 5 8
  Real estate construction   146  110 16 3 2
  Lease financing  24  20 20 13 17
  Foreign  45  53 40 49 65
   Total commercial   777  678 363 184 211
 Consumer:        
  Real estate 1-4 family first mortgage  405  522 185 37 22
  Real estate 1-4 family junior lien mortgage  218  211 174 89 53
  Credit card  251  218 180 147 120
  Other revolving credit and installment   665  718 755 481 504
   Total consumer  1,539  1,669 1,294 754 699
    Total loan recoveries  2,316  2,347 1,657 938 910
     Net loan charge-offs (2)  (11,299)  (17,753) (18,168) (7,839) (3,539)
Allowances related to business combinations/other (3)  (63)  698 (180) 8,053 154
Balance, end of year$ 19,668  23,463 25,031 21,711 5,518
Components:        
 Allowance for loan losses$ 19,372  23,022 24,516 21,013 5,307
 Allowance for unfunded credit commitments  296  441 515 698 211
  Allowance for credit losses (4)$ 19,668  23,463 25,031 21,711 5,518
Net loan charge-offs as a percentage of average total loans (2)  1.49% 2.30 2.21 1.97 1.03
Allowance for loan losses as a percentage of total loans (4)  2.52  3.04 3.13 2.43 1.39
Allowance for credit losses as a percentage of total loans (4)  2.56  3.10 3.20 2.51 1.44
             

  • Certain impaired loans with an allowance calculated by discounting expected cash flows using the loan's effective interest rate over the remaining life of the loan recognize reductions in allowance as interest income.
  • For PCI loans, charge-offs are only recorded to the extent that losses exceed the purchase accounting estimates.
  • Includes $693 million for the year ended December 31, 2010, related to the adoption of consolidation accounting guidance on January 1, 2010.
  • The allowance for credit losses includes $231 million, $298 million and $333 million at December 31, 2011, 2010 and 2009, respectively, related to PCI loans acquired from Wachovia. Loans acquired from Wachovia are included in total loans net of related purchase accounting net write-downs.
Loans and Allowance for Credit Losses, Allowance for Credit Losses by Category
            
            
        2011    2010
(in millions)CommercialConsumerTotal CommercialConsumerTotal
Year ended December 31,        
Balance, beginning of year$ 8,169 15,294 23,463  8,141 16,890 25,031
 Provision for credit losses  365 7,534 7,899  4,913 10,840 15,753
 Interest income on certain impaired loans   (161) (171) (332)  (139) (127) (266)
            
 Loan charge-offs  (2,796) (10,819) (13,615)  (5,433) (14,667) (20,100)
 Loan recoveries  777 1,539 2,316  678 1,669 2,347
  Net loan charge-offs  (2,019) (9,280) (11,299)  (4,755) (12,998) (17,753)
 Allowance related to business combinations/other  4 (67) (63)  9 689 698
Balance, end of year$ 6,358 13,310 19,668  8,169 15,294 23,463
            
Loans and Allowance for Credit Losses, by Impairment Methodology
            
     Allowance for credit losses Recorded investment in loans
(in millions) CommercialConsumerTotal CommercialConsumerTotal
            
December 31, 2011        
            
Collectively evaluated (1)$ 4,060 8,699 12,759  328,117 376,785 704,902
Individually evaluated (2)  2,133 4,545 6,678  10,566 17,444 28,010
PCI (3)  165 66 231  6,767 29,952 36,719
 Total$ 6,358 13,310 19,668  345,450 424,181 769,631
            
December 31, 2010 
        
Collectively evaluated (1)$ 5,424 11,539 16,963  302,392 387,707 690,099
Individually evaluated (2)  2,479 3,723 6,202  11,731 14,007 25,738
PCI (3)  266 32 298  7,935 33,495 41,430
 Total$ 8,169 15,294 23,463  322,058 435,209 757,267
            

  • Represents loans collectively evaluated for impairment in accordance with ASC 450-20, Loss Contingencies (formerly FAS 5), and pursuant to amendments by ASU 2010-20 regarding allowance for unimpaired loans.
  • Represents loans individually evaluated for impairment in accordance with ASC 310-10, Receivables (formerly FAS 114), and pursuant to amendments by ASU 2010-20 regarding allowance for impaired loans.
  • Represents the allowance and related loan carrying value determined in accordance with ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality (formerly SOP 03-3) and pursuant to amendments by ASU 2010-20 regarding allowance for PCI loans.

 
Loans by Credit Quality Indicator
            
            
     CommercialRealReal   
      andestateestateLease  
(in millions) industrialmortgageconstructionfinancingForeignTotal
            
December 31, 2011       
            
By risk category:      
 Pass$ 144,980 80,215 10,865 12,455 36,567 285,082
 Criticized  21,837 22,490 6,772 662 1,840 53,601
  Total commercial loans (excluding PCI)  166,817 102,705 17,637 13,117 38,407 338,683
Total commercial PCI loans (carrying value)  399 3,270 1,745 - 1,353 6,767
   Total commercial loans $ 167,216 105,975 19,382 13,117 39,760 345,450
            
December 31, 2010       
            
By risk category:      
 Pass$ 126,058 70,597 11,256 12,411 30,341 250,663
 Criticized  24,508 25,983 11,128 683 1,158 63,460
  Total commercial loans (excluding PCI)  150,566 96,580 22,384 13,094 31,499 314,123
Total commercial PCI loans (carrying value)  718 2,855 2,949 - 1,413 7,935
   Total commercial loans $ 151,284 99,435 25,333 13,094 32,912 322,058
            
Loans by Delinquency Status, Commercial
            
            
 CommercialRealReal   
      and estateestateLease  
(in millions) industrialmortgageconstructionfinancingForeignTotal
            
December 31, 2011       
            
By delinquency status:      
 Current-29 DPD and still accruing$ 163,583 97,410 15,471 12,934 38,122 327,520
 30-89 DPD and still accruing  939 954 187 130 232 2,442
 90+ DPD and still accruing  153 256 89 - 6 504
Nonaccrual loans  2,142 4,085 1,890 53 47 8,217
  Total commercial loans (excluding PCI)  166,817 102,705 17,637 13,117 38,407 338,683
Total commercial PCI loans (carrying value)  399 3,270 1,745 - 1,353 6,767
   Total commercial loans$ 167,216 105,975 19,382 13,117 39,760 345,450
            
December 31, 2010       
            
By delinquency status:      
 Current-29 DPD and still accruing$ 146,135 90,233 19,005 12,927 31,350 299,650
 30-89 DPD and still accruing  910 1,016 510 59 - 2,495
 90+ DPD and still accruing  308 104 193 - 22 627
Nonaccrual loans  3,213 5,227 2,676 108 127 11,351
  Total commercial loans (excluding PCI)  150,566 96,580 22,384 13,094 31,499 314,123
Total commercial PCI loans (carrying value)  718 2,855 2,949 - 1,413 7,935
   Total commercial loans$ 151,284 99,435 25,333 13,094 32,912 322,058
            
Loans by Delinquency Status, Consumer
           
           
      Real estateReal estate Other 
      1-4 family1-4 family revolving 
      first junior lienCreditcredit and 
(in millions) mortgagemortgagecardinstallmentTotal
           
December 31, 2011      
           
By delinquency status:     
 Current-29 DPD$ 156,985 83,033 22,125 69,712 331,855
 30-59 DPD  4,075 786 211 963 6,035
 60-89 DPD  2,012 501 154 275 2,942
 90-119 DPD  1,152 382 135 127 1,796
 120-179 DPD  1,704 537 211 33 2,485
 180+ DPD  6,665 546 - 4 7,215
Government insured/guaranteed loans (1)  26,555 - - 15,346 41,901
 Total consumer loans (excluding PCI)  199,148 85,785 22,836 86,460 394,229
Total consumer PCI loans (carrying value)  29,746 206 - - 29,952
  Total consumer loans$ 228,894 85,991 22,836 86,460 424,181
           
December 31, 2010 (2)      
           
By delinquency status:     
 Current-29 DPD$ 164,558 92,512 21,276 67,129 345,475
 30-59 DPD  4,516 917 262 1,261 6,956
 60-89 DPD  2,173 608 207 376 3,364
 90-119 DPD  1,399 476 190 171 2,236
 120-179 DPD  2,080 764 324 58 3,226
 180+ DPD  6,750 622 1 117 7,490
Government insured/guaranteed loans (1)  15,514 - - 17,453 32,967
 Total consumer loans (excluding PCI)  196,990 95,899 22,260 86,565 401,714
Total consumer PCI loans (carrying value)  33,245 250 - - 33,495
  Total consumer loans$ 230,235 96,149 22,260 86,565 435,209
           

  • Represents loans whose repayments are insured by the FHA or guaranteed by the VA and student loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the Federal Family Education Loan Program (FFELP). In 2011, we consolidated $5.6 billion of previously sold FHA insured real estate 1-4 family reverse mortgages.
  • Amounts at December 31, 2010, have been revised to conform to the current separate presentation of government insured/guaranteed loans.

 

 
Loans by FICO Score, Consumer
           
           
      Real estateReal estate Other 
      1-4 family1-4 family revolving 
      first junior lienCreditcredit and 
(in millions) mortgagemortgagecardinstallmentTotal
           
December 31, 2011      
           
By updated FICO:     
 < 600$ 21,604 7,428 2,323 8,921 40,276
 600-639  10,978 4,086 1,787 6,222 23,073
 640-679  15,563 7,187 3,383 9,350 35,483
 680-719  23,622 12,497 4,697 10,465 51,281
 720-759  27,417 17,574 4,760 9,936 59,687
 760-799  47,337 24,979 3,517 11,163 86,996
 800+  21,381 10,247 1,969 5,674 39,271
No FICO available  4,691 1,787 400 4,393 11,271
FICO not required  - - - 4,990 4,990
Government insured/guaranteed loans (1)  26,555 - - 15,346 41,901
  Total consumer loans (excluding PCI)  199,148 85,785 22,836 86,460 394,229
Total consumer PCI loans (carrying value)  29,746 206 - - 29,952
   Total consumer loans $ 228,894 85,991 22,836 86,460 424,181
           
December 31, 2010 (2)      
           
By updated FICO:     
 < 600$ 26,013 9,126 2,872 10,806 48,817
 600-639  11,105 4,457 1,826 5,965 23,353
 640-679  16,202 7,678 3,305 8,344 35,529
 680-719  25,549 13,759 4,522 9,480 53,310
 720-759  29,443 20,334 4,441 8,808 63,026
 760-799  47,250 27,222 3,215 9,357 87,044
 800+  19,719 10,607 1,794 4,692 36,812
No FICO available  6,195 2,716 285 7,528 16,724
FICO not required  - - - 4,132 4,132
Government insured/guaranteed loans (1)  15,514 - - 17,453 32,967
  Total consumer loans (excluding PCI)  196,990 95,899 22,260 86,565 401,714
Total consumer PCI loans (carrying value)  33,245 250 - - 33,495
   Total consumer loans $ 230,235 96,149 22,260 86,565 435,209
           

  • Represents loans whose repayments are insured by the FHA or guaranteed by the VA and student loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under FFELP. In 2011, we consolidated $5.6 billion of previously sold FHA insured real estate 1-4 family reverse mortgages.
  • Amounts at December 31, 2010, have been revised to conform to the current separate presentation of government insured/guaranteed loans.

 

 
Loans by Loan to Value Ratio, Consumer
             
             
      December 31, 2011 December 31, 2010 (1)
      Real estateReal estate  Real estateReal estate 
      1-4 family1-4 family  1-4 family1-4 family 
      first junior lien  first junior lien 
      mortgagemortgage  mortgagemortgage 
(in millions) by LTVby CLTVTotal by LTVby CLTVTotal
By LTV/CLTV:       
 0-60%$ 46,476 12,694 59,170  47,808 14,814 62,622
 60.01-80%  46,831 15,722 62,553  42,542 17,744 60,286
 80.01-100%  36,764 20,290 57,054  39,497 24,255 63,752
 100.01-120% (2)  21,116 15,829 36,945  24,147 17,887 42,034
 > 120% (2)  18,608 18,626 37,234  24,243 18,628 42,871
No LTV/CLTV available  2,798 2,624 5,422  3,239 2,571 5,810
Government insured/guaranteed loans (3)  26,555 - 26,555  15,514 - 15,514
  Total consumer loans (excluding PCI)  199,148 85,785 284,933  196,990 95,899 292,889
Total consumer PCI loans (carrying value)  29,746 206 29,952  33,245 250 33,495
   Total consumer loans$ 228,894 85,991 314,885  230,235 96,149 326,384
             

  • Amounts at December 31, 2010, have been revised to conform to the current separate presentation of government insured/guaranteed loans.
  • Reflects total loan balances with LTV/CLTV amounts in excess of 100%. In the event of default, the loss content would generally be limited to only the amount in excess of 100% LTV/CLTV.
  • Represents loans whose repayments are insured by the FHA or guaranteed by the VA. In 2011, we consolidated $5.6 billion of previously sold FHA insured real estate 1-4 family reverse mortgages.

 

 
Nonaccrual Loans
         
         
       December 31,
(in millions)   2011 2010
Commercial:   
 Commercial and industrial$ 2,142 3,213
 Real estate mortgage  4,085 5,227
 Real estate construction  1,890 2,676
 Lease financing  53 108
 Foreign  47 127
  Total commercial (1)  8,217 11,351
Consumer:   
 Real estate 1-4 family first mortgage (2)  10,913 12,289
 Real estate 1-4 family junior lien mortgage  1,975 2,302
 Other revolving credit and installment  199 300
  Total consumer  13,087 14,891
   Total nonaccrual loans   
    (excluding PCI)$ 21,304 26,242
         

  • Includes LHFS of $25 million and $3 million at December 31, 2011 and 2010, respectively.
  • Includes MHFS of $301 million and $426 million at December 31, 2011 and 2010, respectively.
90 days Past Due but Still Accruing Loans
         
         
      December 31,
(in millions)  2011 2010
Loan 90 days or more past due and still accruing:   
Total (excluding PCI):$ 22,569 18,488
 Less: FHA insured/VA guaranteed (1)  19,240 14,733
 Less: Student loans guaranteed   
  under the FFELP (2)  1,281 1,106
   Total, not government    
    insured/guaranteed$ 2,048 2,649
         
By segment and class, not government    
 insured/guaranteed:   
Commercial:   
 Commercial and industrial$ 153 308
 Real estate mortgage  256 104
 Real estate construction  89 193
 Foreign  6 22
  Total commercial  504 627
Consumer:   
 Real estate 1-4 family first mortgage (3)  781 941
 Real estate 1-4 family junior lien mortgage (3) 279 366
 Credit card  346 516
 Other revolving credit and installment  138 199
  Total consumer  1,544 2,022
   Total, not government    
    insured/guaranteed$ 2,048 2,649
         
(1)Represents loans whose repayments are insured by the FHA or guaranteed by the VA.
(2)Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the FFELP.
(3)Includes mortgage held for sale 90 days or more past due and still accruing.
Impaired Loans
          
          
       Recorded investment 
        Impaired loans 
      Unpaid  with relatedRelated
      principalImpairedallowance forallowance for
(in millions) balanceloanscredit lossescredit losses
          
December 31, 2011     
          
Commercial:      
 Commercial and industrial$ 7,191 3,072 3,018 501
 Real estate mortgage  7,490 5,114 4,637 1,133
 Real estate construction  4,733 2,281 2,281 470
 Lease financing  127 68 68 21
 Foreign  185 31 31 8
  Total commercial  19,726 10,566 10,035 2,133
Consumer:     
 Real estate 1-4 family first mortgage  16,494 14,486 13,909 3,380
 Real estate 1-4 family junior lien mortgage  2,232 2,079 2,079 784
 Credit card  593 593 593 339
 Other revolving credit and installment  287 286 274 42
  Total consumer  19,606 17,444 16,855 4,545
   Total impaired loans (excluding PCI)$ 39,332 28,010 26,890 6,678
          
December 31, 2010     
          
Commercial:      
 Commercial and industrial$ 8,190 3,600 3,276 607
 Real estate mortgage  7,439 5,239 5,163 1,282
 Real estate construction  4,676 2,786 2,786 548
 Lease financing  149 91 91 34
 Foreign  215 15 15 8
  Total commercial  20,669 11,731 11,331 2,479
Consumer:     
 Real estate 1-4 family first mortgage  12,834 11,603 11,603 2,754
 Real estate 1-4 family junior lien mortgage  1,759 1,626 1,626 578
 Credit card  548 548 548 333
 Other revolving credit and installment  231 230 230 58
  Total consumer  15,372 14,007 14,007 3,723
   Total impaired loans (excluding PCI)$ 36,041 25,738 25,338 6,202
          
Impaired Loans, Average Recorded Investment and Interest Income
            
            
      Year ended December 31,
       2011 2010
      Average Recognized AverageRecognized
      recorded interest recordedinterest
(in millions) investment income investmentincome
Commercial:        
 Commercial and industrial$ 3,282  105  4,098 64
 Real estate mortgage  5,308  80  4,598 41
 Real estate construction  2,481  70  3,203 28
 Lease financing  80  -  166 -
 Foreign  29  -  47 -
  Total commercial  11,180  255  12,112 133
Consumer:       
 Real estate 1-4 family first mortgage  13,592  700  9,221 494
 Real estate 1-4 family junior lien mortgage  1,962  76  1,443 55
 Credit card  594  21  360 13
 Other revolving credit and installment  270  27  132 3
  Total consumer  16,418  824  11,156 565
   Total impaired loans$ 27,598  1,079  23,268 698
            
Impaired Loans, Interest Income
         
         
     Year ended December 31,
(in millions)  2011 2010 2009
     
Average recorded investment in impaired loans$ 27,598 23,268 10,557
Interest income:    
Cash basis of accounting$ 180 250 130
Other (1)  899 448 102
 Total interest income$ 1,079 698 232
         

  • Includes interest recognized on accruing TDRs, interest recognized related to certain impaired loans which have an allowance calculated using discounting, and amortization of purchase accounting adjustments related to certain impaired loans. See footnote 1 to the table of changes in the allowance for credit losses.

 
Troubled Debt Restructurings, Modification by Type
                
                
      Primary modification type (1) Financial effects of modifications
            Weighted Recorded
        Other   average investment
       Interestinterest   interest related to
       raterate  Charge-rate interest rate
(in millions)Principal (2)reductionconcessions (3)Total offs (4)reduction reduction
Year ended December 31, 2011         
Commercial:           
 Commercial and industrial$ 166 64 2,412 2,642  84 3.13%$ 69
 Real estate mortgage  113 146 1,894 2,153  24 1.46   160
 Real estate construction  29 114 421 564  26 0.81   125
 Lease financing  - - 57 57  - -   -
 Foreign  - - 22 22  - -   -
  Total commercial  308 324 4,806 5,438  134 1.55   354
Consumer:           
 Real estate 1-4 family first mortgage  1,629 1,908 934 4,471  293 3.27   3,322
 Real estate 1-4 family junior lien mortgage  98 559 197 854  28 4.34   654
 Credit card  - 336 - 336  2 10.77   260
 Other revolving credit and installment  74 119 7 200  24 6.36   181
 Trial modifications (5)  - - 651 651  - -   -
  Total consumer  1,801 2,922 1,789 6,512  347 4.00   4,417
   Total$ 2,109 3,246 6,595 11,950  481 3.82%$ 4,771
                

  • Amounts represent the recorded investment in loans after recognizing the effects of the TDR, if any. TDRs with multiple types of concessions are presented only once in the table in the first category type based on the order presented.
  • Principal modifications include principal forgiveness at the time of the modification, contingent principal forgiveness granted over the life of the loan based on borrower performance, and principal that has been legally separated and deferred to the end of the loan, with a zero percent contractual interest rate.
  • Other interest rate concessions include loans modified to an interest rate that is not commensurate with the credit risk, even though the rate may have been increased. These modifications would include renewals, term extensions, and other interest adjustments, but exclude modifications that also forgive principal and/or reduce the interest rate.
  • Charge-offs include write-downs of the investment in the loan in the period of modification. In some cases, the amount of charge-offs will differ from the modification terms if the loan has already been charged down based on our policies. Modifications resulted in forgiving principal (actual, contingent or deferred) of $577 million in 2011.
  • Trial modifications are granted a delay in payments due under the original terms during the trial payment period. However, these loans continue to advance through delinquency status and accrue interest according to their original terms. Any subsequent permanent modification generally includes interest rate related concessions; however, the exact concession type and resulting financial effect are usually not known until the loan is permanently modified.
Troubled Debt Restructuring, Current Defaults
       
      
     Year ended
     December 31, 2011
      Recorded
      investment
(in millions) of defaults
Commercial:  
 Commercial and industrial$ 216
 Real estate mortgage  331
 Real estate construction  69
 Lease financing  1
 Foreign  1
  Total commercial  618
Consumer:  
 Real estate 1-4 family first mortgage  1,110
 Real estate 1-4 family junior lien mortgage  137
 Credit card  156
 Other revolving credit and installment  113
  Total consumer  1,516
   Total$ 2,134
  
Purchased Credit Impaired Loans, Loans Outstanding
          
          
       December 31,
(in millions)  2011 2010 2009 2008
Commercial:      
 Commercial and industrial$ 399 718 1,911 4,580
 Real estate mortgage  3,270 2,855 4,137 5,803
 Real estate construction  1,745 2,949 5,207 6,462
 Foreign  1,353 1,413 1,733 1,859
  Total commercial  6,767 7,935 12,988 18,704
Consumer:     
 Real estate 1-4 family first mortgage  29,746 33,245 38,386 39,214
 Real estate 1-4 family junior lien mortgage  206 250 331 728
 Other revolving credit and installment  - - - 151
  Total consumer  29,952 33,495 38,717 40,093
   Total PCI loans (carrying value)$ 36,719 41,430 51,705 58,797
Total PCI loans (unpaid principal balance)$ 55,312 64,331 83,615 98,182
          
Purchased Credit Impaired Loans, Accretable Yield
          
          
      Year ended December 31,
(in millions) 2011 2010 2009
Total, beginning of year$ 16,714 14,559 10,447
 Addition of accretable yield due to acquisitions  128 - -
 Accretion into interest income (1)  (2,206) (2,392) (2,601)
 Accretion into noninterest income due to sales (2)  (189) (43) (5)
 Reclassification from nonaccretable difference for loans with improving credit-related cash flows  373 3,399 441
 Changes in expected cash flows that do not affect nonaccretable difference (3)  1,141 1,191 6,277
Total, end of year$ 15,961 16,714 14,559
          

  • Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.
  • Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.
  • Represents changes in cash flows expected to be collected due to changes in interest rates on variable rate PCI loans, changes in prepayment assumptions and the impact of modifications.

 
Purchased Credit Impaired Loans, Allowance for Credit Losses
        
        
      Other 
(in millions) CommercialPick-a-PayconsumerTotal
Balance, December 31, 2008$ - - - -
 Provision for losses due to credit deterioration  850 - 3 853
 Charge-offs   (520) - - (520)
Balance, December 31, 2009  330 - 3 333
 Provision for losses due to credit deterioration  712 - 59 771
 Charge-offs   (776) - (30) (806)
Balance, December 31, 2010  266 - 32 298
 Provision for losses due to credit deterioration  106 - 54 160
 Charge-offs   (207) - (20) (227)
Balance, December 31, 2011$ 165 - 66 231
        
Purchased Credit Impaired Loans by Credit Quality Indicator
           
           
     CommercialRealReal  
      andestateestate  
(in millions) industrialmortgageconstructionForeignTotal
           
December 31, 2011      
           
By risk category:     
 Pass$ 191 640 321 - 1,152
 Criticized  208 2,630 1,424 1,353 5,615
  Total commercial PCI loans$ 399 3,270 1,745 1,353 6,767
           
December 31, 2010      
      
By risk category:     
 Pass$ 214 352 128 210 904
 Criticized  504 2,503 2,821 1,203 7,031
  Total commercial PCI loans$ 718 2,855 2,949 1,413 7,935
           
Purchased Credit Impaired Loans by Delinquency Status, Commercial
           
           
 CommercialRealReal  
      and estateestate  
(in millions) industrialmortgageconstructionForeignTotal
           
December 31, 2011      
           
By delinquency status:     
 Current-29 DPD and still accruing$ 359 2,867 1,206 1,178 5,610
 30-89 DPD and still accruing  22 178 72 - 272
 90+ DPD and still accruing  18 225 467 175 885
  Total commercial PCI loans$ 399 3,270 1,745 1,353 6,767
           
December 31, 2010      
           
By delinquency status:     
 Current-29 DPD and still accruing$ 612 2,295 1,395 1,209 5,511
 30-89 DPD and still accruing  22 113 178 - 313
 90+ DPD and still accruing  84 447 1,376 204 2,111
  Total commercial PCI loans$ 718 2,855 2,949 1,413 7,935
           
Purchased Credit Impaired Loans by Delinquency Status, Consumer
             
             
      December 31, 2011 December 31, 2010
      Real estateReal estate  Real estateReal estate 
      1-4 family1-4 family  1-4 family1-4 family 
      first junior lien  first junior lien 
(in millions) mortgagemortgageTotal mortgagemortgageTotal
By delinquency status:        
 Current-29 DPD$ 25,693 268 25,961  29,297 436 29,733
 30-59 DPD  3,272 20 3,292  3,586 30 3,616
 60-89 DPD  1,433 9 1,442  1,364 17 1,381
 90-119 DPD  791 8 799  881 13 894
 120-179 DPD  1,169 10 1,179  1,346 19 1,365
 180+ DPD  5,921 150 6,071  7,214 220 7,434
  Total consumer PCI loans (adjusted unpaid principal balance)$ 38,279 465 38,744  43,688 735 44,423
  Total consumer PCI loans (carrying value)$ 29,746 206 29,952  33,245 250 33,495
             
Purchased Credit Impaired Loans by FICO Score, Consumer
             
             
      December 31, 2011 December 31, 2010
      Real estateReal estate  Real estateReal estate 
      1-4 family1-4 family  1-4 family1-4 family 
      first junior lien  first junior lien 
(in millions) mortgagemortgageTotal mortgagemortgageTotal
By FICO:   
 < 600$ 17,169 210 17,379  22,334 363 22,697
 600-639  7,489 83 7,572  7,563 109 7,672
 640-679  6,646 89 6,735  6,185 96 6,281
 680-719  3,698 47 3,745  3,949 60 4,009
 720-759  1,875 14 1,889  2,057 17 2,074
 760-799  903 6 909  1,087 7 1,094
 800+  215 2 217  232 2 234
No FICO available  284 14 298  281 81 362
  Total consumer PCI loans (adjusted unpaid principal balance)$ 38,279 465 38,744  43,688 735 44,423
  Total consumer PCI loans (carrying value)$ 29,746 206 29,952  33,245 250 33,495
             
Purchased Credit Impaired Loans by Loan to Value Ratio, Consumer
             
             
      December 31, 2011 December 31, 2010
     Real estateReal estate  Real estateReal estate 
      1-4 family1-4 family  1-4 family1-4 family 
      first junior lien  first junior lien 
      mortgagemortgage  mortgagemortgage 
(in millions) by LTVby CLTVTotal by LTVby CLTVTotal
By LTV/CLTV:        
 0-60%$ 1,243 25 1,268  1,653 43 1,696
 60.01-80%  3,806 49 3,855  5,513 42 5,555
 80.01-100%  9,341 63 9,404  11,861 89 11,950
 100.01-120% (1)  9,471 79 9,550  9,525 116 9,641
 > 120% (1)  14,318 246 14,564  15,047 314 15,361
No LTV/CLTV available  100 3 103  89 131 220
  Total consumer PCI loans (adjusted unpaid principal balance) $ 38,279 465 38,744  43,688 735 44,423
  Total consumer PCI loans (carrying value)$ 29,746 206 29,952  33,245 250 33,495
             

  • Reflects total loan balances with LTV/CLTV amounts in excess of 100%. In the event of default, the loss content would generally be limited to only the amount in excess of 100% LTV/CLTV