v2.4.0.6
Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2013
Loans And Allowance For Credit Losses Tables [Abstract]  
Loans and Allowance for Credit Losses, Loans Outstanding
          
       Mar. 31, Dec. 31,
(in millions)  2013  2012
Commercial:    
 Commercial and industrial$185,623 187,759
 Real estate mortgage 106,119 106,340
 Real estate construction 16,650 16,904
 Lease financing 12,402 12,424
 Foreign (1) 40,920 37,771
  Total commercial 361,714 361,198
Consumer:    
 Real estate 1-4 family first mortgage 252,307 249,900
 Real estate 1-4 family junior lien mortgage 72,543 75,465
 Credit card 24,120 24,640
 Automobile 47,259 45,998
 Other revolving credit and installment 42,023 42,373
  Total consumer 438,252 438,376
   Total loans$799,966 799,574
          

  • 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
              
      Quarter ended March 31,
          2013    2012
(in millions)CommercialConsumerTotal CommercialConsumerTotal
Loans - held for investment:        
Purchases (1)$ 1,026 79 1,105  1,956 83 2,039
Sales  (2,016) (316) (2,332)  (1,820) (153) (1,973)
Transfers to MHFS/LHFS (1)  (80) (7) (87)  (36) (1) (37)
          
              

  • 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 $2.0 billion and $3.5 billion for the quarters ended March 31, 2013 and 2012, respectively.
Loans and Allowance for Credit Losses, Commitments to Lend
         
      Mar. 31,Dec. 31,
(in millions)  2013 2012
Commercial:   
 Commercial and industrial$ 223,784 215,626
 Real estate mortgage  6,887 6,165
 Real estate construction  9,328 9,109
 Foreign  8,151 8,423
  Total commercial  248,150 239,323
Consumer:   
 Real estate 1-4 family first mortgage  37,064 42,657
 Real estate 1-4 family   
  junior lien mortgage  50,237 50,934
 Credit card  73,911 70,960
 Other revolving credit and installment  20,852 19,791
  Total consumer  182,064 184,342
   Total unfunded   
    credit commitments$ 430,214 423,665
Loans and Allowance for Credit Losses, Allowance for Credit Losses
          
       Quarter ended March 31,
(in millions)   2013  2012
Balance, beginning of period$ 17,477  19,668
Provision for credit losses  1,219  1,995
Interest income on certain impaired loans (1)  (73)  (87)
Loan charge-offs:    
 Commercial:    
  Commercial and industrial  (181)  (359)
  Real estate mortgage   (60)  (82)
  Real estate construction  (5)  (80)
  Lease financing  (3)  (8)
  Foreign  (11)  (29)
   Total commercial   (260)  (558)
 Consumer:     
  Real estate 1-4 family first mortgage  (475)  (828)
  Real estate 1-4 family junior lien mortgage  (514)  (820)
  Credit card  (266)  (301)
  Automobile  (164)  (179)
  Other revolving credit and installment  (182)  (194)
   Total consumer  (1,601)  (2,322)
    Total loan charge-offs  (1,861)  (2,880)
Loan recoveries:    
 Commercial:    
  Commercial and industrial  88  103
  Real estate mortgage   31  36
  Real estate construction   39  13
  Lease financing  4  6
  Foreign  8  15
   Total commercial   170  173
 Consumer:     
  Real estate 1-4 family first mortgage  46  37
  Real estate 1-4 family junior lien mortgage  65  57
  Credit card  31  59
  Automobile  88  105
  Other revolving credit and installment   42  54
   Total consumer  272  312
    Total loan recoveries  442  485
     Net loan charge-offs (2)  (1,419)  (2,395)
Allowances related to business combinations/other  (11)  (52)
Balance, end of period$ 17,193  19,129
Components:     
 Allowance for loan losses$ 16,711  18,852
 Allowance for unfunded credit commitments  482  277
  Allowance for credit losses (3)$ 17,193  19,129
Net loan charge-offs (annualized) as a percentage of average total loans (2)  0.72% 1.25
Allowance for loan losses as a percentage of total loans (3)  2.09  2.46
Allowance for credit losses as a percentage of total loans (3)  2.15  2.50
          

  • 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.
  • For PCI loans, charge-offs are only recorded to the extent that losses exceed the purchase accounting estimates.
  • The allowance for credit losses includes $80 million and $245 million at March 31, 2013 and 2012, 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
            
     Quarter ended March 31,
        2013    2012
(in millions)CommercialConsumerTotal CommercialConsumerTotal
Balance, beginning of period$ 5,714 11,763 17,477  6,358 13,310 19,668
 Provision for credit losses  192 1,027 1,219  188 1,807 1,995
 Interest income on certain impaired loans   (19) (54) (73)  (31) (56) (87)
            
 Loan charge-offs  (260) (1,601) (1,861)  (558) (2,322) (2,880)
 Loan recoveries  170 272 442  173 312 485
  Net loan charge-offs  (90) (1,329) (1,419)  (385) (2,010) (2,395)
 Allowance related to business combinations/other  (11) - (11)  - (52) (52)
Balance, end of period$ 5,786 11,407 17,193  6,130 12,999 19,129
            
Loans and Allowance for Credit Losses, by Impairment Methodology
            
     Allowance for credit losses Recorded investment in loans
(in millions) CommercialConsumerTotal CommercialConsumerTotal
            
March 31, 2013        
            
Collectively evaluated (1)$ 4,200 7,150 11,350  350,765 389,084 739,849
Individually evaluated (2)  1,533 4,230 5,763  7,447 22,941 30,388
PCI (3)  53 27 80  3,502 26,227 29,729
 Total$ 5,786 11,407 17,193  361,714 438,252 799,966
            
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
            

  • 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
            
March 31, 2013       
            
By risk category:      
 Pass$ 167,516 88,613 12,983 11,776 39,014 319,902
 Criticized  17,916 15,667 2,900 626 1,201 38,310
  Total commercial loans (excluding PCI)  185,432 104,280 15,883 12,402 40,215 358,212
Total commercial PCI loans (carrying value)  191 1,839 767 - 705 3,502
   Total commercial loans $ 185,623 106,119 16,650 12,402 40,920 361,714
            
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
            
Loans by Delinquency Status, Commercial
            
 CommercialRealReal   
      and estateestateLease  
(in millions) industrialmortgageconstructionfinancingForeignTotal
            
March 31, 2013       
            
By delinquency status:      
 Current-29 DPD and still accruing$ 183,759 100,399 14,827 12,339 40,140 351,464
 30-89 DPD and still accruing  433 619 139 38 12 1,241
 90+ DPD and still accruing  47 164 47 - 7 265
Nonaccrual loans  1,193 3,098 870 25 56 5,242
  Total commercial loans (excluding PCI)  185,432 104,280 15,883 12,402 40,215 358,212
Total commercial PCI loans (carrying value)  191 1,839 767 - 705 3,502
   Total commercial loans$ 185,623 106,119 16,650 12,402 40,920 361,714
            
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
            
Loans by Delinquency Status, Consumer
            
      Real estateReal estate  Other 
      1-4 family1-4 family  revolving 
      first junior lienCredit credit and 
(in millions) mortgagemortgagecardAutomobileinstallmentTotal
            
March 31, 2013       
            
By delinquency status:      
 Current-29 DPD$ 183,532 70,561 23,527 46,580 29,766 353,966
 30-59 DPD  3,071 521 163 532 162 4,449
 60-89 DPD  1,340 284 124 103 97 1,948
 90-119 DPD  700 215 111 39 65 1,130
 120-179 DPD  960 300 193 5 24 1,482
 180+ DPD  6,251 521 2 - 5 6,779
Government insured/guaranteed loans (1)  30,367 - - - 11,904 42,271
 Total consumer loans (excluding PCI)  226,221 72,402 24,120 47,259 42,023 412,025
Total consumer PCI loans (carrying value)  26,086 141 - - - 26,227
  Total consumer loans$ 252,307 72,543 24,120 47,259 42,023 438,252
            
December 31, 2012       
            
By delinquency status:      
 Current-29 DPD$ 179,870 73,256 23,976 44,973 29,546 351,621
 30-59 DPD  3,295 577 211 798 168 5,049
 60-89 DPD  1,528 339 143 164 108 2,282
 90-119 DPD  853 265 122 57 73 1,370
 120-179 DPD  1,141 358 187 5 28 1,719
 180+ DPD  6,655 518 1 1 4 7,179
Government insured/guaranteed loans (1)  29,719 - - - 12,446 42,165
 Total consumer loans (excluding PCI)  223,061 75,313 24,640 45,998 42,373 411,385
Total consumer PCI loans (carrying value)  26,839 152 - - - 26,991
  Total consumer loans$ 249,900 75,465 24,640 45,998 42,373 438,376
            

  • 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 March 31, 2013, and at December 31, 2012. Student loans 90+ DPD totaled $1.0 billion at March 31, 2013, compared with $1.1 billion at December 31, 2012.
Loans by FICO Score, Consumer
            
      Real estateReal estate  Other 
      1-4 family1-4 family  revolving 
      first junior lienCredit credit and 
(in millions) mortgagemortgagecardAutomobileinstallmentTotal
            
March 31, 2013       
            
By updated FICO:      
 < 600$ 17,358 5,935 2,400 8,506 1,157 35,356
 600-639  10,055 3,576 1,965 5,716 976 22,288
 640-679  15,852 6,419 3,693 8,410 2,049 36,423
 680-719  24,669 11,012 4,846 8,141 3,787 52,455
 720-759  31,648 15,218 4,898 5,934 4,986 62,684
 760-799  65,842 20,773 3,843 5,568 7,086 103,112
 800+  27,530 8,323 1,998 4,648 1,957 44,456
No FICO available  2,900 1,146 477 336 3,049 7,908
FICO not required  - - - - 5,072 5,072
Government insured/guaranteed loans (1)  30,367 - - - 11,904 42,271
  Total consumer loans (excluding PCI)  226,221 72,402 24,120 47,259 42,023 412,025
Total consumer PCI loans (carrying value)  26,086 141 - - - 26,227
   Total consumer loans $ 252,307 72,543 24,120 47,259 42,023 438,252
            
December 31, 2012       
            
By updated FICO:      
 < 600$ 17,662 6,122 2,314 7,928 1,163 35,189
 600-639  10,208 3,660 1,961 5,451 952 22,232
 640-679  15,764 6,574 3,772 8,142 2,011 36,263
 680-719  24,725 11,361 4,990 7,949 3,691 52,716
 720-759  31,502 15,992 5,114 5,787 4,942 63,337
 760-799  63,946 21,874 4,109 5,400 6,971 102,300
 800+  26,044 8,526 2,223 4,443 1,912 43,148
No FICO available  3,491 1,204 157 898 2,882 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 45,998 42,373 411,385
Total consumer PCI loans (carrying value)  26,839 152 - - - 26,991
   Total consumer loans $ 249,900 75,465 24,640 45,998 42,373 438,376
            

  • 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
             
      March 31, 2013 December 31, 2012
      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%$ 58,559 11,626 70,185  56,247 12,170 68,417
 60.01-80%  70,413 14,796 85,209  69,759 15,168 84,927
 80.01-100%  36,406 17,464 53,870  34,830 18,038 52,868
 100.01-120% (1)  16,626 13,259 29,885  17,004 13,576 30,580
 > 120% (1)  12,268 13,675 25,943  13,529 14,610 28,139
No LTV/CLTV available  1,582 1,582 3,164  1,973 1,751 3,724
Government insured/guaranteed loans (2)  30,367 - 30,367  29,719 - 29,719
  Total consumer loans (excluding PCI)  226,221 72,402 298,623  223,061 75,313 298,374
Total consumer PCI loans (carrying value)  26,086 141 26,227  26,839 152 26,991
   Total consumer loans$ 252,307 72,543 324,850  249,900 75,465 325,365
             

  • 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
         
      Mar. 31,Dec. 31,
(in millions)   2013 2012
Commercial:   
 Commercial and industrial$ 1,193 1,422
 Real estate mortgage  3,098 3,322
 Real estate construction  870 1,003
 Lease financing  25 27
 Foreign  56 50
  Total commercial (1)  5,242 5,824
Consumer:   
 Real estate 1-4 family first mortgage (2)  11,320 11,455
 Real estate 1-4 family junior lien mortgage 2,712 2,922
 Automobile 220 245
 Other revolving credit and installment  32 40
  Total consumer  14,284 14,662
   Total nonaccrual loans   
    (excluding PCI)$ 19,526 20,486
         

  • Includes LHFS of $15 million and $16 million at March 31, 2013 and December 31, 2012, respectively.
  • Includes MHFS of $368 million and $336 million at March 31, 2013 and December 31,2012, respectively.
90 days or More Past Due and Still Accruing Loans
         
       Mar. 31,Dec. 31,
(in millions) 2013 2012
Loan 90 days or more past due and still accruing:   
Total (excluding PCI):$23,08223,245
 Less: FHA insured/guaranteed by the VA (1)(2)20,74520,745
 Less: Student loans guaranteed   
  under the FFELP (3) 9771,065
   Total, not government    
    insured/guaranteed$1,3601,435
         
By segment and class, not government    
 insured/guaranteed:  
Commercial:   
 Commercial and industrial$4747
 Real estate mortgage 164228
 Real estate construction 4727
 Foreign 71
  Total commercial 265303
Consumer:   
 Real estate 1-4 family first mortgage (2) 563564
 Real estate 1-4 family junior lien mortgage (2)112133
 Credit card 306310
 Automobile 3340
 Other revolving credit and installment 8185
  Total consumer 1,0951,132
   Total, not government    
    insured/guaranteed$1,3601,435
         

  • 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.
Impaired Loans
          
       Recorded investment 
        Impaired loans 
      Unpaid  with relatedRelated
      principalImpairedallowance forallowance for
(in millions) balanceloanscredit lossescredit losses
          
March 31, 2013     
          
Commercial:      
 Commercial and industrial$ 2,851 1,821 1,732 305
 Real estate mortgage  5,567 4,371 4,249 984
 Real estate construction  1,701 1,181 1,166 228
 Lease financing  50 35 35 10
 Foreign  104 39 22 6
  Total commercial (1)  10,273 7,447 7,204 1,533
Consumer:     
 Real estate 1-4 family first mortgage  22,547 19,610 15,116 3,063
 Real estate 1-4 family junior lien mortgage  2,911 2,523 2,143 942
 Credit card  502 501 501 203
 Automobile  331 279 162 21
 Other revolving credit and installment  34 27 21 1
  Total consumer  26,325 22,940 17,943 4,230
   Total impaired loans (excluding PCI)$ 36,598 30,387 25,147 5,763
          
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
 Automobile  314 314 314 27
 Other revolving credit and installment  27 26 26 6
  Total consumer  25,020 21,826 18,165 4,210
   Total impaired loans (excluding PCI)$ 36,255 30,012 26,215 5,884
          

  • Excludes the unpaid principal balance for loans with zero recorded investment.

 
Impaired Loans, Average Recorded Investment and Interest Income
            
     Quarter ended March 31,
      2013  2012
      Average Recognized AverageRecognized
      recorded interest recordedinterest
(in millions) investment income investmentincome
Commercial:        
 Commercial and industrial$ 1,943  26  2,888 39
 Real estate mortgage  4,421  32  5,135 17
 Real estate construction  1,271  12  2,197 10
 Lease financing  37  -   63 -
 Foreign  32  -   30 -
  Total commercial  7,704  70  10,313 66
Consumer:       
 Real estate 1-4 family first mortgage  18,944  251  14,501 189
 Real estate 1-4 family junior lien mortgage  2,482  35  2,054 22
 Credit card  517  15  594 14
 Automobile  298  10  309 18
 Other revolving credit and installment  26  1  23 -
  Total consumer (1)  22,267  312  17,481 243
   Total impaired loans (excluding PCI)$ 29,971  382  27,794 309
            
Interest income:       
 Cash basis of accounting  $ 123   49
 Other (2)    259   260
  Total interest income  $ 382   309
            

  • Quarter ended March 31, 2013, reflects 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.
  • 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)
Quarter ended March 31, 2013         
Commercial:           
 Commercial and industrial$ - 67 327 394  1 7.60%$ 67
 Real estate mortgage  24 75 422 521  5 1.82   75
 Real estate construction  - - 109 109  4 -   -
 Lease financing  - - - -  - -   -
 Foreign  15 - - 15  - -   -
  Total commercial  39 142 858 1,039  10 4.54   142
Consumer:           
 Real estate 1-4 family first mortgage  344 379 1,381 2,104  97 2.43   623
 Real estate 1-4 family junior lien mortgage  27 48 168 243  15 3.24   72
 Credit card  - 46 - 46  - 10.73   46
 Automobile  1 6 24 31  8 6.39   6
 Other revolving credit and installment  - 2 3 5  - 3.89   2
 Trial modifications (6)  - - 32 32  - -   -
  Total consumer  372 481 1,608 2,461  120 3.06   749
   Total$ 411 623 2,466 3,500  130 3.29%$ 891
                
Quarter ended March 31, 2012         
Commercial:           
 Commercial and industrial$ 1 8 401 410  3 1.28%$ 9
 Real estate mortgage  4 52 485 541  - 1.90   53
 Real estate construction  - 2 107 109  8 1.06   1
 Lease financing  - - 1 1  - -   -
 Foreign  - - 2 2  - -   -
  Total commercial  5 62 996 1,063  11 1.79   63
Consumer:           
 Real estate 1-4 family first mortgage  306 297 199 802  59 2.83   540
 Real estate 1-4 family junior lien mortgage  19 70 34 123  9 4.02   86
 Credit card  - 74 - 74  - 10.88   74
 Automobile  2 19 22 43  6 7.51   20
 Other revolving credit and installment  - - 1 1  - -   -
 Trial modifications (6)  - - 577 577  - -   -
  Total consumer  327 460 833 1,620  74 3.93   720
   Total$ 332 522 1,829 2,683  85 3.76%$ 783
                
(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. Quarter ended March 31, 2013, includes $1.3 billion of consumer 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 $134 million and $92 million for quarters ended March 31, 2013 and 2012, respectively.
(5)Reflects the effect of reduced interest rates on 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 previously reported trial modifications that became permanent in the current period.
                
Troubled Debt Restructuring, Current Defaults
        
       
     Recorded
     investment of defaults
     Quarter ended March 31,
(in millions)  2013 2012
Commercial:   
 Commercial and industrial$ 21 110
 Real estate mortgage  61 252
 Real estate construction  28 155
  Total commercial  110 517
Consumer:   
 Real estate 1-4 family first mortgage  83 147
 Real estate 1-4 family junior lien mortgage 10 20
 Credit card  16 27
 Automobile  4 6
  Total consumer  113 200
   Total$ 223 717
   
Purchased Credit Impaired Loans, Loans Outstanding
          
      March 31, December 31,
(in millions)  2013  2012 2008
Commercial:      
 Commercial and industrial$ 191  259 4,580
 Real estate mortgage  1,839  1,970 5,803
 Real estate construction  767  877 6,462
 Foreign  705  871 1,859
  Total commercial  3,502  3,977 18,704
Consumer:     
 Real estate 1-4 family first mortgage  26,086  26,839 39,214
 Real estate 1-4 family junior lien mortgage  141  152 728
 Automobile  -  - 151
  Total consumer  26,227  26,991 40,093
   Total PCI loans (carrying value)$ 29,729  30,968 58,797
Total PCI loans (unpaid principal balance)$ 42,971  45,174 98,182
          
Purchased Credit Impaired Loans, Accretable Yield
        
(in millions)  
Balance, December 31, 2008$ 10,447
 Addition of accretable yield due to acquisitions  131
 Accretion into interest income (1)  (9,351)
 Accretion into noninterest income due to sales (2)  (242)
 Reclassification from nonaccretable difference for loans with improving credit-related cash flows  5,354
 Changes in expected cash flows that do not affect nonaccretable difference (3)  12,209
Balance, December 31, 2012  18,548
 Addition of accretable yield due to acquisitions  -
 Accretion into interest income (1)  (447)
 Accretion into noninterest income due to sales (2)  (151)
 Reclassification from nonaccretable difference for loans with improving credit-related cash flows  31
 Changes in expected cash flows that do not affect nonaccretable difference (3)  (16)
Balance, March 31, 2013$ 17,965
        
(1)Includes accretable yield released as a result of settlements with borrowers, which is included in interest income.
(2)Includes accretable yield released as a result of sales to third parties, which is included in noninterest income.
(3)Represents changes in cash flows expected to be collected due to the impact of modifications, changes in prepayment assumptions, changes in interest rates on variable rate PCI loans and sales to third parties.
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  1,693 - 123 1,816
 Charge-offs   (1,605) - (94) (1,699)
Balance, December 31, 2012  88 - 29 117
 Reversal of provision for losses  (32) - - (32)
 Charge-offs   (3) - (2) (5)
Balance, March 31, 2013$ 53 - 27 80
        
Purchased Credit Impaired Loans by Credit Quality Indicator
           
     CommercialRealReal  
      andestateestate  
(in millions) industrialmortgageconstructionForeignTotal
           
March 31, 2013      
           
By risk category:     
 Pass$ 96 341 222 8 667
 Criticized  95 1,498 545 697 2,835
  Total commercial PCI loans$ 191 1,839 767 705 3,502
           
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
           
Purchased Credit Impaired Loans by Delinquency Status, Commercial
           
 CommercialRealReal  
      and estateestate  
(in millions) industrialmortgageconstructionForeignTotal
           
March 31, 2013      
           
By delinquency status:     
 Current-29 DPD and still accruing$ 187 1,703 608 533 3,031
 30-89 DPD and still accruing  2 57 28 - 87
 90+ DPD and still accruing  2 79 131 172 384
  Total commercial PCI loans$ 191 1,839 767 705 3,502
           
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
           
Purchased Credit Impaired Loans by Delinquency Status, Consumer
             
      March 31, 2013 December 31, 2012
      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 and still accruing$ 21,608 188 21,796  22,304 198 22,502
 30-59 DPD and still accruing  2,341 9 2,350  2,587 11 2,598
 60-89 DPD and still accruing  1,243 5 1,248  1,361 7 1,368
 90-119 DPD and still accruing  555 3 558  650 6 656
 120-179 DPD and still accruing  706 7 713  804 7 811
 180+ DPD and still accruing  5,245 109 5,354  5,356 116 5,472
  Total consumer PCI loans (adjusted unpaid principal balance)$ 31,698 321 32,019  33,062 345 33,407
  Total consumer PCI loans (carrying value)$ 26,086 141 26,227  26,839 152 26,991
             
Purchased Credit Impaired Loans by FICO Score, Consumer
             
      March 31, 2013 December 31, 2012
      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$ 12,638 134 12,772  13,163 144 13,307
 600-639  6,388 64 6,452  6,673 68 6,741
 640-679  6,358 69 6,427  6,602 73 6,675
 680-719  3,443 35 3,478  3,635 39 3,674
 720-759  1,675 10 1,685  1,757 11 1,768
 760-799  840 5 845  874 6 880
 800+  192 1 193  202 1 203
No FICO available  164 3 167  156 3 159
  Total consumer PCI loans (adjusted unpaid principal balance)$ 31,698 321 32,019  33,062 345 33,407
  Total consumer PCI loans (carrying value)$ 26,086 141 26,227  26,839 152 26,991
             
Purchased Credit Impaired Loans by Loan to Value Ratio, Consumer
             
      March 31, 2013 December 31, 2012
     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%$ 1,414 21 1,435  1,374 21 1,395
 60.01-80%  4,484 30 4,514  4,119 30 4,149
 80.01-100%  9,987 59 10,046  9,576 61 9,637
 100.01-120% (1)  7,617 90 7,707  8,084 93 8,177
 > 120% (1)  8,150 120 8,270  9,889 138 10,027
No LTV/CLTV available  46 1 47  20 2 22
  Total consumer PCI loans (adjusted unpaid principal balance)$ 31,698 321 32,019  33,062 345 33,407
  Total consumer PCI loans (carrying value)$ 26,086 141 26,227  26,839 152 26,991
             

  • 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.