v2.4.0.6
Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2012
Loans And Allowance For Credit Losses Tables [Abstract]  
Loans and Allowance for Credit Losses, Loans Outstanding
            
       December 31,
(in millions)  2012 2011201020092008
Commercial:      
 Commercial and industrial$ 187,759 167,216 151,284 158,352 202,469
 Real estate mortgage  106,340 105,975 99,435 97,527 94,923
 Real estate construction  16,904 19,382 25,333 36,978 42,861
 Lease financing  12,424 13,117 13,094 14,210 15,829
 Foreign (1)  37,771 39,760 32,912 29,398 33,882
  Total commercial  361,198 345,450 322,058 336,465 389,964
Consumer:      
 Real estate 1-4 family first mortgage  249,900 228,894 230,235 229,536 247,894
 Real estate 1-4 family junior lien mortgage  75,465 85,991 96,149 103,708 110,164
 Credit card  24,640 22,836 22,260 24,003 23,555
 Other revolving credit and installment  88,371 86,460 86,565 89,058 93,253
  Total consumer  438,376 424,181 435,209 446,305 474,866
   Total loans$ 799,574 769,631 757,267 782,770 864,830
            

  • 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
              
      Year ended December 31,
       2012  2011
(in millions)Commercial Consumer Total Commercial Consumer Total
Purchases (1)$ 12,280 167 12,447  7,078 284 7,362
Sales  (5,840) (840) (6,680)  (4,705) (1,018) (5,723)
Transfers to MHFS/LHFS (1)  (84) (21) (105)  (164) (75) (239)
          
              

  • The “Purchases” and “Transfers to MHFS/LHFS" categories exclude activity in government insured/guaranteed loans. As servicer, we are able to buy delinquent insured/guaranteed loans out of the Government National Mortgage Association (GNMA) pools. These loans have different risk characteristics from the rest of our consumer portfolio, whereby this activity does not impact the allowance for loan losses in the same manner because the loans are predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA). On a net basis, such purchases net of transfers to MHFS were $9.8 billion and $10.4 billion for the year ended December 31, 2012 and 2011, respectively.
Loans and Allowance for Credit Losses, Commitments to Lend
         
       December 31,
(in millions)  2012 2011
Commercial:   
 Commercial and industrial$ 215,626 201,061
 Real estate mortgage  6,165 5,419
 Real estate construction  9,109 7,347
 Foreign  8,423 6,083
  Total commercial  239,323 219,910
Consumer:   
 Real estate 1-4 family first mortgage  42,657 37,185
 Real estate 1-4 family   
  junior lien mortgage  50,934 55,207
 Credit card  70,960 65,111
 Other revolving credit and installment  19,791 17,617
  Total consumer  184,342 175,120
   Total unfunded   
    credit commitments$ 423,665 395,030
Loans and Allowance for Credit Losses, Allowance for Credit Losses
             
       Year ended December 31,
(in millions)   2012  2011 2010 2009 2008
Balance, beginning of year$ 19,668  23,463 25,031 21,711 5,518
Provision for credit losses  7,217  7,899 15,753 21,668 15,979
Interest income on certain impaired loans (1)  (315)  (332) (266) - -
Loan charge-offs:       
 Commercial:       
  Commercial and industrial  (1,306)  (1,598) (2,775) (3,365) (1,653)
  Real estate mortgage   (382)  (636) (1,151) (670) (29)
  Real estate construction  (191)  (351) (1,189) (1,063) (178)
  Lease financing  (24)  (38) (120) (229) (65)
  Foreign  (111)  (173) (198) (237) (245)
   Total commercial   (2,014)  (2,796) (5,433) (5,564) (2,170)
 Consumer:        
  Real estate 1-4 family first mortgage  (3,013)  (3,883) (4,900) (3,318) (540)
  Real estate 1-4 family junior lien mortgage  (3,437)  (3,763) (4,934) (4,812) (2,204)
  Credit card  (1,101)  (1,449) (2,396) (2,708) (1,563)
  Other revolving credit and installment  (1,408)  (1,724) (2,437) (3,423) (2,300)
   Total consumer (2)  (8,959)  (10,819) (14,667) (14,261) (6,607)
    Total loan charge-offs  (10,973)  (13,615) (20,100) (19,825) (8,777)
Loan recoveries:       
 Commercial:       
  Commercial and industrial  461  419 427 254 114
  Real estate mortgage   163  143 68 33 5
  Real estate construction   124  146 110 16 3
  Lease financing  19  24 20 20 13
  Foreign  32  45 53 40 49
   Total commercial   799  777 678 363 184
 Consumer:        
  Real estate 1-4 family first mortgage  157  405 522 185 37
  Real estate 1-4 family junior lien mortgage  259  218 211 174 89
  Credit card  185  251 218 180 147
  Other revolving credit and installment   539  665 718 755 481
   Total consumer  1,140  1,539 1,669 1,294 754
    Total loan recoveries  1,939  2,316 2,347 1,657 938
     Net loan charge-offs (3)  (9,034)  (11,299) (17,753) (18,168) (7,839)
Allowances related to business combinations/other (4)  (59)  (63) 698 (180) 8,053
Balance, end of year$ 17,477  19,668 23,463 25,031 21,711
Components:        
 Allowance for loan losses$ 17,060  19,372 23,022 24,516 21,013
 Allowance for unfunded credit commitments  417  296 441 515 698
  Allowance for credit losses (5)$ 17,477  19,668 23,463 25,031 21,711
Net loan charge-offs as a percentage of average total loans (3)  1.17% 1.49 2.30 2.21 1.97
Allowance for loan losses as a percentage of total loans (5)  2.13  2.52 3.04 3.13 2.43
Allowance for credit losses as a percentage of total loans (5)  2.19  2.56 3.10 3.20 2.51
             

  • 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 the allowance as interest income.
  • The year ended December 31, 2012, includes $888 million resulting from the OCC guidance issued in third quarter 2012, which requires consumer loans discharged in bankruptcy to be placed on nonaccrual status and written down to net realizable collateral value, regardless of their delinquency status.
  • 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 $117 million, $231 million, $298 million and $333 million at December 31, 2012, 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
            
     Year ended December 31,
        2012    2011
(in millions)CommercialConsumerTotal CommercialConsumerTotal
Balance, beginning of period$ 6,358 13,310 19,668  8,169 15,294 23,463
 Provision for credit losses  666 6,551 7,217  365 7,534 7,899
 Interest income on certain impaired loans   (95) (220) (315)  (161) (171) (332)
            
 Loan charge-offs  (2,014) (8,959) (10,973)  (2,796) (10,819) (13,615)
 Loan recoveries  799 1,140 1,939  777 1,539 2,316
  Net loan charge-offs  (1,215) (7,819) (9,034)  (2,019) (9,280) (11,299)
 Allowance related to business combinations/other  - (59) (59)  4 (67) (63)
Balance, end of period$ 5,714 11,763 17,477  6,358 13,310 19,668
            
Loans and Allowance for Credit Losses, by Impairment Methodology
            
     Allowance for credit losses Recorded investment in loans
(in millions) CommercialConsumerTotal CommercialConsumerTotal
            
December 31, 2012        
            
Collectively evaluated (1)$ 3,951 7,524 11,475  349,035 389,559 738,594
Individually evaluated (2)  1,675 4,210 5,885  8,186 21,826 30,012
PCI (3)  88 29 117  3,977 26,991 30,968
 Total$ 5,714 11,763 17,477  361,198 438,376 799,574
            
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
            

  • Represents loans collectively evaluated for impairment in accordance with Accounting Standards Codification (ASC) 450-20, Loss Contingencies (formerly FAS 5), and pursuant to amendments by ASU 2010-20 regarding allowance for non-impaired 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, 2012       
            
By risk category:      
 Pass$ 169,293 87,183 12,224 11,787 35,380 315,867
 Criticized  18,207 17,187 3,803 637 1,520 41,354
  Total commercial loans (excluding PCI)  187,500 104,370 16,027 12,424 36,900 357,221
Total commercial PCI loans (carrying value)  259 1,970 877 - 871 3,977
   Total commercial loans $ 187,759 106,340 16,904 12,424 37,771 361,198
            
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
            
Loans by Delinquency Status, Commercial
            
 CommercialRealReal   
      and estateestateLease  
(in millions) industrialmortgageconstructionfinancingForeignTotal
            
December 31, 2012       
            
By delinquency status:      
 Current-29 DPD and still accruing$ 185,614 100,317 14,861 12,344 36,837 349,973
 30-89 DPD and still accruing  417 503 136 53 12 1,121
 90+ DPD and still accruing  47 228 27 - 1 303
Nonaccrual loans  1,422 3,322 1,003 27 50 5,824
  Total commercial loans (excluding PCI)  187,500 104,370 16,027 12,424 36,900 357,221
Total commercial PCI loans (carrying value)  259 1,970 877 - 871 3,977
   Total commercial loans$ 187,759 106,340 16,904 12,424 37,771 361,198
            
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
            
Loans by Delinquency Status, Consumer
           
      Real estateReal estate Other 
      1-4 family1-4 family revolving 
      first junior lienCreditcredit and 
(in millions) mortgagemortgagecardinstallmentTotal
           
December 31, 2012      
           
By delinquency status:     
 Current-29 DPD$ 179,870 73,256 23,976 74,519 351,621
 30-59 DPD  3,295 577 211 966 5,049
 60-89 DPD  1,528 339 143 272 2,282
 90-119 DPD  853 265 122 130 1,370
 120-179 DPD  1,141 358 187 33 1,719
 180+ DPD  6,655 518 1 5 7,179
Government insured/guaranteed loans (1)  29,719 - - 12,446 42,165
 Total consumer loans (excluding PCI)  223,061 75,313 24,640 88,371 411,385
Total consumer PCI loans (carrying value)  26,839 152 - - 26,991
  Total consumer loans$ 249,900 75,465 24,640 88,371 438,376
           
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
           

  • Represents loans whose repayments are predominantly 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). Loans insured/guaranteed by the FHA/VA and 90+ DPD totaled $20.2 billion at December 31, 2012, compared with $18.5 billion at December 31, 2011. Student loans 90+ DPD totaled $1.1 billion at December 31, 2012, compared with $1.3 billion at December 31, 2011.
Loans by FICO Score, Consumer
           
      Real estateReal estate Other 
      1-4 family1-4 family revolving 
      first junior lienCreditcredit and 
(in millions) mortgagemortgagecardinstallmentTotal
           
December 31, 2012      
           
By updated FICO:     
 < 600$ 17,662 6,122 2,314 9,091 35,189
 600-639  10,208 3,660 1,961 6,403 22,232
 640-679  15,764 6,574 3,772 10,153 36,263
 680-719  24,725 11,361 4,990 11,640 52,716
 720-759  31,502 15,992 5,114 10,729 63,337
 760-799  63,946 21,874 4,109 12,371 102,300
 800+  26,044 8,526 2,223 6,355 43,148
No FICO available  3,491 1,204 157 3,780 8,632
FICO not required  - - - 5,403 5,403
Government insured/guaranteed loans (1)  29,719 - - 12,446 42,165
  Total consumer loans (excluding PCI)  223,061 75,313 24,640 88,371 411,385
Total consumer PCI loans (carrying value)  26,839 152 - - 26,991
   Total consumer loans $ 249,900 75,465 24,640 88,371 438,376
           
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
           

  • Represents loans whose repayments are predominantly 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.
Loans by Loan to Value Ratio, Consumer
             
      December 31, 2012 December 31, 2011
      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%$ 56,247 12,170 68,417  46,476 12,694 59,170
 60.01-80%  69,759 15,168 84,927  46,831 15,722 62,553
 80.01-100%  34,830 18,038 52,868  36,764 20,290 57,054
 100.01-120% (1)  17,004 13,576 30,580  21,116 15,829 36,945
 > 120% (1)  13,529 14,610 28,139  18,608 18,626 37,234
No LTV/CLTV available  1,973 1,751 3,724  2,798 2,624 5,422
Government insured/guaranteed loans (2)  29,719 - 29,719  26,555 - 26,555
  Total consumer loans (excluding PCI)  223,061 75,313 298,374  199,148 85,785 284,933
Total consumer PCI loans (carrying value)  26,839 152 26,991  29,746 206 29,952
   Total consumer loans$ 249,900 75,465 325,365  228,894 85,991 314,885
             

  • 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 predominantly insured by the FHA or guaranteed by the VA.

 

 

 
Nonaccrual Loans
         
      December 31,
(in millions)   2012 2011
Commercial:   
 Commercial and industrial$ 1,422 2,142
 Real estate mortgage  3,322 4,085
 Real estate construction  1,003 1,890
 Lease financing  27 53
 Foreign  50 47
  Total commercial (1)  5,824 8,217
Consumer:   
 Real estate 1-4 family first mortgage (2)  11,455 10,913
 Real estate 1-4 family junior lien mortgage (3) 2,922 1,975
 Other revolving credit and installment  285 199
  Total consumer (4)  14,662 13,087
   Total nonaccrual loans   
    (excluding PCI)$ 20,486 21,304
         

  • Includes LHFS of $16 million and $25 million at December 31, 2012 and 2011, respectively.
  • Includes MHFS of $336 million and $301 million at December 31, 2012 and 2011, respectively.
  • Includes $960 million at December 31, 2012, resulting from the Interagency Guidance issued in 2012, which requires performing junior liens to be classified as nonaccrual if the related first mortgage is nonaccruing.
  • Includes $1.8 billion at December 31, 2012, consisting of $1.4 billion of first mortgages, $205 million of junior liens and $140 million of auto and other loans, resulting from the OCC guidance issued in third quarter 2012, which requires performing consumer loans discharged in bankruptcy to be placed on nonaccrual status and written down to net realizable collateral value, regardless of their delinquency status.
90 days Past Due and Still Accruing Loans
         
      December 31,
(in millions) 2012 2011
Loan 90 days or more past due and still accruing:   
Total (excluding PCI):$23,24522,569
 Less: FHA insured/guaranteed by the VA (1)(2)20,74519,240
 Less: Student loans guaranteed   
  under the FFELP (3) 1,0651,281
   Total, not government    
    insured/guaranteed$1,4352,048
         
By segment and class, not government    
 insured/guaranteed:  
Commercial:   
 Commercial and industrial$47153
 Real estate mortgage 228256
 Real estate construction 2789
 Foreign 16
  Total commercial 303504
Consumer:   
 Real estate 1-4 family first mortgage (2) 564781
 Real estate 1-4 family junior lien mortgage (2)(4)133279
 Credit card 310346
 Other revolving credit and installment 125138
  Total consumer 1,1321,544
   Total, not government    
    insured/guaranteed$1,4352,048
         

  • Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.
  • Includes mortgage loans held for sale 90 days or more past due and still accruing.
  • Represents loans whose repayments are predominantly guaranteed by agencies on behalf of the U.S. Department of Education under the FFELP.
  • The balance at December 31, 2012, includes the impact from the transfer of certain 1-4 family junior lien mortgages to nonaccrual loans in accordance with the Interagency Guidance issued on January 31, 2012.
Impaired Loans
          
       Recorded investment 
        Impaired loans 
      Unpaid  with relatedRelated
      principalImpairedallowance forallowance for
(in millions) balanceloanscredit lossescredit losses
          
December 31, 2012     
          
Commercial:      
 Commercial and industrial$ 3,331 2,086 2,086 353
 Real estate mortgage  5,766 4,673 4,537 1,025
 Real estate construction  1,975 1,345 1,345 276
 Lease financing  54 39 39 11
 Foreign  109 43 43 9
  Total commercial (1)  11,235 8,186 8,050 1,674
Consumer:     
 Real estate 1-4 family first mortgage  21,293 18,472 15,224 3,074
 Real estate 1-4 family junior lien mortgage  2,855 2,483 2,070 859
 Credit card  531 531 531 244
 Other revolving credit and installment  341 340 340 33
  Total consumer  25,020 21,826 18,165 4,210
   Total impaired loans (excluding PCI)$ 36,255 30,012 26,215 5,884
          
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 (1)  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
          

  • The unpaid principal balance for commercial loans at December 31, 2011, includes $2.5 billion of commercial and industrial, $1.1 billion of real estate mortgage, $1.8 billion of real estate construction and $157 million of lease financing and foreign loans that have been fully charged off and therefore have no recorded investment. The unpaid principal balance for loans with no recorded investment has been excluded from the amounts disclosed at December 31, 2012.

 

 
Impaired Loans, Average Recorded Investment and Interest Income
              
       Year ended December 31,
        2012   2011   2010
      AverageRecognized AverageRecognized AverageRecognized
      recordedinterest recordedinterest recordedinterest
(in millions) investmentincome investmentincome investmentincome
Commercial:          
 Commercial and industrial$ 2,281 111  3,282 105  4,098 64
 Real estate mortgage  4,821 119  5,308 80  4,598 41
 Real estate construction  1,818 61  2,481 70  3,203 28
 Lease financing  57 1  80 -  166 -
 Foreign  36 1  29 -  47 -
  Total commercial  9,013 293  11,180 255  12,112 133
Consumer:         
 Real estate 1-4 family first mortgage  15,750 803  13,592 700  9,221 494
 Real estate 1-4 family         
  junior lien mortgage  2,193 80  1,962 76  1,443 55
 Credit card  572 63  594 21  360 13
 Other revolving credit and installment  324 44  270 27  132 3
  Total consumer  18,839 990  16,418 824  11,156 565
   Total impaired loans (excluding PCI)$ 27,852 1,283$ 27,598 1,079$ 23,268 698
              

         
     Year ended December 31,
(in millions)  2012 2011 2010
Average recorded investment in impaired loans$ 27,852 27,598 23,268
Interest income:    
Cash basis of accounting$ 316 180 250
Other (1)  967 899 448
 Total interest income$ 1,283 1,079 698
         

  • 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 (5)
                
Year ended December 31, 2012         
Commercial:           
 Commercial and industrial$ 11 35 1,370 1,416  40 1.60%$ 38
 Real estate mortgage  47 219 1,907 2,173  12 1.57   226
 Real estate construction  12 19 531 562  10 1.69   19
 Lease financing  - - 4 4  - -   -
 Foreign  - - 19 19  - -   -
  Total commercial  70 273 3,831 4,174  62 1.58   283
Consumer:           
 Real estate 1-4 family first mortgage  1,371 1,302 5,822 8,495  547 3.00   2,379
 Real estate 1-4 family junior lien mortgage  79 244 756 1,079  512 3.70   313
 Credit card  - 241 - 241  - 10.85   241
 Other revolving credit and installment  5 55 287 347  55 6.82   58
 Trial modifications (6)  - - 666 666  - -   -
  Total consumer  1,455 1,842 7,531 10,828  1,114 3.78   2,991
   Total$ 1,525 2,115 11,362 15,002  1,176 3.59%$ 3,274
                
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 (6)  - - 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
                
(1)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.
(2)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.
(3)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. Year ended December 31, 2012, includes $5.2 billion of consumer loans, consisting of $4.5 billion of first mortgages, $506 million of junior liens and $140 million of auto and other loans, resulting from the OCC guidance issued in third quarter 2012, which requires consumer loans discharged in bankruptcy to be classified as TDRs, as well as written down to net realizable collateral value.
(4)Charge-offs include write-downs of the investment in the loan in the period it is contractually modified. The amount of charge-off will differ from the modification terms if the loan has been charged down prior to the modification based on our policies. In addition, there may be cases where we have a charge-off/down with no legal principal modification. Modifications resulted in legally forgiving principal (actual, contingent or deferred) of $495 million and $577 million for years ended December 31, 2012 and 2011, respectively. Year ended December 31, 2012, includes $888 million in charge-offs on consumer loans resulting from the OCC guidance discussed above.
(5)Reflects the effect of reduced interest rates to loans with principal or interest rate reduction primary modification type.
(6)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. Trial modifications for the period are presented net of any trial modifications that successfully complete the program requirements. Such successful modifications are included as an addition to the appropriate loan category in the period they successfully complete the program requirements.
  
Troubled Debt Restructuring, Current Defaults
        
       
     Recorded
     investment of defaults
     Year ended December 31,
(in millions)  2012 2011
Commercial:   
 Commercial and industrial$ 379 216
 Real estate mortgage  579 331
 Real estate construction  261 69
 Lease financing  1 1
 Foreign  - 1
  Total commercial  1,220 618
Consumer:   
 Real estate 1-4 family first mortgage  567 1,110
 Real estate 1-4 family junior lien mortgage 55 137
 Credit card  94 156
 Other revolving credit and installment 56 113
  Total consumer  772 1,516
   Total$ 1,992 2,134
   
Purchased Credit Impaired Loans, Loans Outstanding
           
      December 31,
(in millions)  2012 2011 2010 2009 2008
Commercial:       
 Commercial and industrial$ 259 399 718 1,911 4,580
 Real estate mortgage  1,970 3,270 2,855 4,137 5,803
 Real estate construction  877 1,745 2,949 5,207 6,462
 Foreign  871 1,353 1,413 1,733 1,859
  Total commercial  3,977 6,767 7,935 12,988 18,704
Consumer:      
 Real estate 1-4 family first mortgage  26,839 29,746 33,245 38,386 39,214
 Real estate 1-4 family junior lien mortgage  152 206 250 331 728
 Other revolving credit and installment  - - - - 151
  Total consumer  26,991 29,952 33,495 38,717 40,093
   Total PCI loans (carrying value)$ 30,968 36,719 41,430 51,705 58,797
Total PCI loans (unpaid principal balance)$ 45,174 55,312 64,331 83,615 98,182
           
Purchased Credit Impaired Loans, Accretable Yield
           
       Year ended December 31,
(in millions)  2012 2011 2010 2009
Total, beginning of year$ 15,961 16,714 14,559 10,447
 Addition of accretable yield due to acquisitions  3 128 - -
 Accretion into interest income (1)  (2,152) (2,206) (2,392) (2,601)
 Accretion into noninterest income due to sales (2)  (5) (189) (43) (5)
 Reclassification from nonaccretable difference for loans with improving credit-related cash flows  1,141 373 3,399 441
 Changes in expected cash flows that do not affect nonaccretable difference (3)  3,600 1,141 1,191 6,277
Total, end of year$ 18,548 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 the impact of modifications, changes in prepayment assumptions and changes in interest rates on variable rate PCI loans
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
 Provision for losses due to credit deterioration  25 - 7 32
 Charge-offs   (102) - (44) (146)
Balance, December 31, 2012$ 88 - 29 117
        
Purchased Credit Impaired Loans by Credit Quality Indicator
           
     CommercialRealReal  
      andestateestate  
(in millions) industrialmortgageconstructionForeignTotal
           
December 31, 2012      
           
By risk category:     
 Pass$ 95 341 207 255 898
 Criticized  164 1,629 670 616 3,079
  Total commercial PCI loans$ 259 1,970 877 871 3,977
           
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
           
Purchased Credit Impaired Loans by Delinquency Status, Commercial
           
 CommercialRealReal  
      and estateestate  
(in millions) industrialmortgageconstructionForeignTotal
           
December 31, 2012      
           
By delinquency status:     
 Current-29 DPD and still accruing$ 235 1,804 699 704 3,442
 30-89 DPD and still accruing  1 26 51 - 78
 90+ DPD and still accruing  23 140 127 167 457
  Total commercial PCI loans$ 259 1,970 877 871 3,977
           
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
           
Purchased Credit Impaired Loans by Delinquency Status, Consumer
             
      December 31, 2012 December 31, 2011
      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$ 22,304 198 22,502  25,693 268 25,961
 30-59 DPD  2,587 11 2,598  3,272 20 3,292
 60-89 DPD  1,361 7 1,368  1,433 9 1,442
 90-119 DPD  650 6 656  791 8 799
 120-179 DPD  804 7 811  1,169 10 1,179
 180+ DPD  5,356 116 5,472  5,921 150 6,071
  Total consumer PCI loans (adjusted unpaid principal balance)$ 33,062 345 33,407  38,279 465 38,744
  Total consumer PCI loans (carrying value)$ 26,839 152 26,991  29,746 206 29,952
             
Purchased Credit Impaired Loans by FICO Score, Consumer
             
      December 31, 2012 December 31, 2011
      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$ 13,163 144 13,307  17,169 210 17,379
 600-639  6,673 68 6,741  7,489 83 7,572
 640-679  6,602 73 6,675  6,646 89 6,735
 680-719  3,635 39 3,674  3,698 47 3,745
 720-759  1,757 11 1,768  1,875 14 1,889
 760-799  874 6 880  903 6 909
 800+  202 1 203  215 2 217
No FICO available  156 3 159  284 14 298
  Total consumer PCI loans (adjusted unpaid principal balance)$ 33,062 345 33,407  38,279 465 38,744
  Total consumer PCI loans (carrying value)$ 26,839 152 26,991  29,746 206 29,952
             
Purchased Credit Impaired Loans by Loan to Value Ratio, Consumer
             
      December 31, 2012 December 31, 2011
     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%$ 1,374 21 1,395  1,243 25 1,268
 60.01-80%  4,119 30 4,149  3,806 49 3,855
 80.01-100%  9,576 61 9,637  9,341 63 9,404
 100.01-120% (1)  8,084 93 8,177  9,471 79 9,550
 > 120% (1)  9,889 138 10,027  14,318 246 14,564
No LTV/CLTV available  20 2 22  100 3 103
  Total consumer PCI loans (adjusted unpaid principal balance)$ 33,062 345 33,407  38,279 465 38,744
  Total consumer PCI loans (carrying value)$ 26,839 152 26,991  29,746 206 29,952
             

  • 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.