v2.4.0.8
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2013
Loans And Allowance For Credit Losses Tables [Abstract]  
Loans and Allowance for Credit Losses, Loans Outstanding
          
       June 30, Dec. 31,
(in millions)  2013  2012
Commercial:    
 Commercial and industrial$ 188,758 187,759
 Real estate mortgage  104,673 106,340
 Real estate construction  16,442 16,904
 Lease financing  11,766 12,424
 Foreign (1)  41,833 37,771
  Total commercial  363,472 361,198
Consumer:    
 Real estate 1-4 family first mortgage  252,841 249,900
 Real estate 1-4 family junior lien mortgage  70,059 75,465
 Credit card  24,815 24,640
 Automobile  48,648 45,998
 Other revolving credit and installment  42,139 42,373
  Total consumer  438,502 438,376
   Total loans$ 801,974 799,574
          

  • 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
              
       2013  2012
(in millions)CommercialConsumerTotal CommercialConsumerTotal
Quarter ended June 30,        
Loans - held for investment:        
 Purchases (1)$ 2,122 502 2,624  7,219 84 7,303
 Sales  (1,796) (130) (1,926)  (1,115) (170) (1,285)
Transfers to MHFS/LHFS (1)  (53) (5) (58)  18 (4) 14
          
          
Six months ended June 30,        
Loans - held for investment:        
 Purchases (1)$ 3,148 581 3,729  9,175 167 9,342
 Sales  (3,812) (446) (4,258)  (2,935) (323) (3,258)
Transfers to MHFS/LHFS (1)  (133) (12) (145)  (18) (5) (23)
          
              

  • 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 $805 million and $2.0 billion for the second quarter 2013 and 2012, respectively, and $2.8 billion and $5.5 billion for the first half of 2013 and 2012, respectively.
Loans and Allowance for Credit Losses, Commitments to Lend
         
      June 30,Dec. 31,
(in millions)  2013 2012
Commercial:   
 Commercial and industrial$ 222,884 215,626
 Real estate mortgage  5,338 6,165
 Real estate construction  9,619 9,109
 Lease financing  82 -
 Foreign  11,548 8,423
  Total commercial  249,471 239,323
Consumer:   
 Real estate 1-4 family first mortgage  37,066 42,657
 Real estate 1-4 family   
  junior lien mortgage  48,949 50,934
 Credit card  75,373 70,960
 Other revolving credit and installment  21,888 19,791
  Total consumer  183,276 184,342
   Total unfunded   
    credit commitments$ 432,747 423,665
Loans and Allowance for Credit Losses, Allowance for Credit Losses
              
       Quarter ended June 30, Six months ended June 30,
(in millions)   2013  2012  2013  2012
Balance, beginning of period$ 17,193  19,129  17,477  19,668
Provision for credit losses  652  1,800  1,871  3,795
Interest income on certain impaired loans (1)  (73)  (82)  (146)  (169)
Loan charge-offs:        
 Commercial:        
  Commercial and industrial  (184)  (360)  (365)  (719)
  Real estate mortgage   (49)  (114)  (109)  (196)
  Real estate construction  (7)  (60)  (12)  (140)
  Lease financing  (24)  (5)  (27)  (13)
  Foreign  (8)  (17)  (19)  (46)
   Total commercial   (272)  (556)  (532)  (1,114)
 Consumer:         
  Real estate 1-4 family first mortgage  (392)  (772)  (867)  (1,600)
  Real estate 1-4 family junior lien mortgage  (428)  (757)  (942)  (1,577)
  Credit card  (266)  (286)  (532)  (587)
  Automobile  (126)  (131)  (290)  (310)
  Other revolving credit and installment  (185)  (187)  (367)  (381)
   Total consumer  (1,397)  (2,133)  (2,998)  (4,455)
    Total loan charge-offs  (1,669)  (2,689)  (3,530)  (5,569)
Loan recoveries:        
 Commercial:        
  Commercial and industrial  107  111  195  214
  Real estate mortgage   54  33  85  69
  Real estate construction   52  43  91  56
  Lease financing  6  5  10  11
  Foreign  9  6  17  21
   Total commercial   228  198  398  371
 Consumer:         
  Real estate 1-4 family first mortgage  64  29  110  66
  Real estate 1-4 family junior lien mortgage  69  68  134  125
  Credit card  32  46  63  105
  Automobile  84  103  172  208
  Other revolving credit and installment   40  45  82  99
   Total consumer  289  291  561  603
    Total loan recoveries  517  489  959  974
     Net loan charge-offs (2)  (1,152)  (2,200)  (2,571)  (4,595)
Allowances related to business combinations/other  (2)  (1)  (13)  (53)
Balance, end of period$ 16,618  18,646  16,618  18,646
Components:         
 Allowance for loan losses$ 16,144  18,320  16,144  18,320
 Allowance for unfunded credit commitments  474  326  474  326
  Allowance for credit losses (3)$ 16,618  18,646  16,618  18,646
Net loan charge-offs (annualized) as a percentage of average total loans (2)  0.58% 1.15  0.65  1.20
Allowance for loan losses as a percentage of total loans (3)  2.01  2.36  2.01  2.36
Allowance for credit losses as a percentage of total loans (3)  2.07  2.41  2.07  2.41
              

  • 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 $71 million and $212 million at June 30, 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
            
        2013    2012
(in millions)CommercialConsumerTotal CommercialConsumerTotal
Quarter ended June 30,        
Balance, beginning of period$ 5,786 11,407 17,193  6,130 12,999 19,129
 Provision for credit losses  172 480 652  410 1,390 1,800
 Interest income on certain impaired loans   (16) (57) (73)  (23) (59) (82)
            
 Loan charge-offs  (272) (1,397) (1,669)  (556) (2,133) (2,689)
 Loan recoveries  228 289 517  198 291 489
  Net loan charge-offs  (44) (1,108) (1,152)  (358) (1,842) (2,200)
 Allowance related to business combinations/other  (2) - (2)  - (1) (1)
Balance, end of period$ 5,896 10,722 16,618  6,159 12,487 18,646
            
            
Six months ended June 30,        
Balance, beginning of period$ 5,714 11,763 17,477  6,358 13,310 19,668
 Provision for credit losses  364 1,507 1,871  598 3,197 3,795
 Interest income on certain impaired loans   (35) (111) (146)  (54) (115) (169)
            
 Loan charge-offs  (532) (2,998) (3,530)  (1,114) (4,455) (5,569)
 Loan recoveries  398 561 959  371 603 974
  Net loan charge-offs  (134) (2,437) (2,571)  (743) (3,852) (4,595)
 Allowance related to business combinations/other  (13) - (13)  - (53) (53)
Balance, end of period$ 5,896 10,722 16,618  6,159 12,487 18,646
            
Loans and Allowance for Credit Losses, by Impairment Methodology
            
     Allowance for credit losses Recorded investment in loans
(in millions) CommercialConsumerTotal CommercialConsumerTotal
            
June 30, 2013        
            
Collectively evaluated (1)$ 4,360 6,209 10,569  353,554 389,942 743,496
Individually evaluated (2)  1,487 4,491 5,978  6,661 23,018 29,679
PCI (3)  49 22 71  3,257 25,542 28,799
 Total$ 5,896 10,722 16,618  363,472 438,502 801,974
            
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
            
June 30, 2013       
            
By risk category:      
 Pass$ 172,072 88,937 13,393 11,180 39,366 324,948
 Criticized  16,491 13,990 2,447 586 1,753 35,267
  Total commercial loans (excluding PCI)  188,563 102,927 15,840 11,766 41,119 360,215
Total commercial PCI loans (carrying value)  195 1,746 602 - 714 3,257
   Total commercial loans $ 188,758 104,673 16,442 11,766 41,833 363,472
            
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
            
June 30, 2013       
            
By delinquency status:       
 Current-29 DPD and still accruing$ 187,020 99,544 15,032 11,739 41,027 354,362
 30-89 DPD and still accruing  484 500 139 7 52 1,182
 90+ DPD and still accruing  37 175 4 - - 216
Nonaccrual loans  1,022 2,708 665 20 40 4,455
  Total commercial loans (excluding PCI)  188,563 102,927 15,840 11,766 41,119 360,215
Total commercial PCI loans (carrying value)  195 1,746 602 - 714 3,257
   Total commercial loans$ 188,758 104,673 16,442 11,766 41,833 363,472
            
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
            
June 30, 2013       
            
By delinquency status:      
 Current-29 DPD$ 186,212 68,223 24,268 47,889 30,309 356,901
 30-59 DPD  3,034 468 166 587 129 4,384
 60-89 DPD  1,256 272 118 127 88 1,861
 90-119 DPD  682 192 95 40 68 1,077
 120-179 DPD  834 259 168 4 22 1,287
 180+ DPD  5,793 511 - 1 7 6,312
Government insured/guaranteed loans (1)  29,622 - - - 11,516 41,138
 Total consumer loans (excluding PCI)  227,433 69,925 24,815 48,648 42,139 412,960
Total consumer PCI loans (carrying value)  25,408 134 - - - 25,542
  Total consumer loans$ 252,841 70,059 24,815 48,648 42,139 438,502
            
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 $19.5 billion at June 30, 2013, compared with $20.2 at December 31, 2012. Student loans 90+ DPD totaled $931 million at June 30, 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
            
June 30, 2013       
            
By updated FICO:      
 < 600$ 15,868 5,199 2,239 8,077 876 32,259
 600-639  9,727 3,445 1,986 5,829 922 21,909
 640-679  15,456 6,318 3,791 8,713 1,956 36,234
 680-719  24,695 10,764 4,996 8,674 3,604 52,733
 720-759  32,563 14,848 5,089 6,242 4,847 63,589
 760-799  67,997 20,326 4,082 5,892 6,222 104,519
 800+  28,477 7,967 2,115 4,928 4,645 48,132
No FICO available  3,028 1,058 517 293 2,639 7,535
FICO not required  - - - - 4,912 4,912
Government insured/guaranteed loans (1)  29,622 - - - 11,516 41,138
  Total consumer loans (excluding PCI)  227,433 69,925 24,815 48,648 42,139 412,960
Total consumer PCI loans (carrying value)  25,408 134 - - - 25,542
   Total consumer loans $ 252,841 70,059 24,815 48,648 42,139 438,502
            
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
             
      June 30, 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%$ 64,707 11,703 76,410  56,247 12,170 68,417
 60.01-80%  70,525 15,532 86,057  69,759 15,168 84,927
 80.01-100%  36,177 17,111 53,288  34,830 18,038 52,868
 100.01-120% (1)  14,559 12,194 26,753  17,004 13,576 30,580
 > 120% (1)  10,087 11,811 21,898  13,529 14,610 28,139
No LTV/CLTV available  1,756 1,574 3,330  1,973 1,751 3,724
Government insured/guaranteed loans (2)  29,622 - 29,622  29,719 - 29,719
  Total consumer loans (excluding PCI)  227,433 69,925 297,358  223,061 75,313 298,374
Total consumer PCI loans (carrying value)  25,408 134 25,542  26,839 152 26,991
   Total consumer loans$ 252,841 70,059 322,900  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
         
      June 30,Dec. 31,
(in millions)   2013 2012
Commercial:   
 Commercial and industrial$ 1,022 1,422
 Real estate mortgage  2,708 3,322
 Real estate construction  665 1,003
 Lease financing  20 27
 Foreign  40 50
  Total commercial (1)  4,455 5,824
Consumer:   
 Real estate 1-4 family first mortgage (2)  10,705 11,455
 Real estate 1-4 family junior lien mortgage 2,522 2,922
 Automobile 200 245
 Other revolving credit and installment  33 40
  Total consumer  13,460 14,662
   Total nonaccrual loans   
    (excluding PCI)$ 17,915 20,486
         

  • Includes LHFS of $15 million and $16 million at June 30, 2013 and December 31, 2012, respectively.
  • Includes MHFS of $293 million and $336 million at June 30, 2013 and December 31,2012, respectively.
90 days or More Past Due and Still Accruing Loans
         
       June 30,Dec. 31,
(in millions) 2013 2012
Loan 90 days or more past due and still accruing:   
Total (excluding PCI):$22,19723,245
 Less: FHA insured/guaranteed by the VA (1)(2)20,11220,745
 Less: Student loans guaranteed   
  under the FFELP (3) 9311,065
   Total, not government    
    insured/guaranteed$1,1541,435
         
By segment and class, not government    
 insured/guaranteed:  
Commercial:   
 Commercial and industrial$3747
 Real estate mortgage 175228
 Real estate construction 427
 Foreign 01
  Total commercial 216303
Consumer:   
 Real estate 1-4 family first mortgage (2) 476564
 Real estate 1-4 family junior lien mortgage (2)92133
 Credit card 263310
 Automobile 3240
 Other revolving credit and installment 7585
  Total consumer 9381,132
   Total, not government    
    insured/guaranteed$1,1541,435
         

  • 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
          
June 30, 2013     
          
Commercial:      
 Commercial and industrial$ 2,502 1,499 1,323 274
 Real estate mortgage  5,130 4,113 3,920 1,014
 Real estate construction  1,407 981 954 185
 Lease financing  65 27 27 9
 Foreign  96 41 41 5
  Total commercial (1)  9,200 6,661 6,265 1,487
Consumer:     
 Real estate 1-4 family first mortgage  22,778 19,754 14,263 3,513
 Real estate 1-4 family junior lien mortgage  3,049 2,511 2,093 764
 Credit card  477 477 477 197
 Automobile  298 246 137 16
 Other revolving credit and installment  38 30 24 1
  Total consumer  26,640 23,018 16,994 4,491
   Total impaired loans (excluding PCI)$ 35,840 29,679 23,259 5,978
          
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 June 30, Six months ended June 30,
       2013 2012  2013 2012
      AverageRecognized AverageRecognized Average Recognized AverageRecognized
      recorded interest recordedinterest recorded interest recordedinterest
(in millions)investment income investmentincomeinvestment income investmentincome
Commercial:               
 Commercial and industrial$ 1,573  22  2,665 33  1,603  48  2,756 72
 Real estate mortgage  4,194  36  5,016 33  4,250  68  5,095 50
 Real estate construction  1,082  11  1,986 17  1,174  23  2,124 27
 Lease financing  30  -   58 -   32  -   60 -
 Foreign  41  -   43 -   37  -   38 -
  Total commercial  6,920  69  9,768 83  7,096  139  10,073 149
Consumer:              
 Real estate 1-4 family              
  first mortgage  19,669  264  14,641 190  19,275  515  14,563 379
 Real estate 1-4 family              
  junior lien mortgage  2,499  38  2,079 22  2,490  73  2,065 44
 Credit card  490  14  582 17  503  29  587 31
 Automobile  262  7  256 8  280  17  285 26
 Other revolving credit              
  and installment  28  -   24 -   27  1  25 -
  Total consumer (1)  22,948  323  17,582 237  22,575  635  17,525 480
   Total impaired loans              
    (excluding PCI)$ 29,868  392  27,350 320  29,671  774  27,598 629
                   
Interest income:              
 Cash basis of accounting  $ 119   77    242   126
 Other (2)    273   243    532   503
  Total interest income  $ 392   320    774   629
                   

  • Quarter and six months ended June 30, 2013, reflect 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 June 30, 2013         
Commercial:           
 Commercial and industrial$ - 16 234 250  - 1.46%$ 16
 Real estate mortgage  4 95 346 445  1 1.57   95
 Real estate construction  - 3 90 93  - 0.83   3
 Lease financing  - - - -  - -   -
 Foreign  - - - -  - -   -
  Total commercial  4 114 670 788  1 1.54   114
Consumer:           
 Real estate 1-4 family first mortgage  282 378 715 1,375  48 2.71   563
 Real estate 1-4 family junior lien mortgage  25 46 90 161  1 3.24   70
 Credit card  - 46 - 46  - 10.53   46
 Automobile  1 2 24 27  8 8.77   2
 Other revolving credit and installment  - 4 4 8  - 5.31   4
 Trial modifications (6)  - - 22 22  - -   -
  Total consumer  308 476 855 1,639  57 3.32   685
   Total$ 312 590 1,525 2,427  58 3.06%$ 799
                
Quarter ended June 30, 2012         
Commercial:           
 Commercial and industrial$ 10 14 348 372  23 1.82%$ 14
 Real estate mortgage  7 68 451 526  14 1.14   69
 Real estate construction  - 5 177 182  5 2.97   5
 Lease financing  - - 1 1  - -   -
 Foreign  - - - -  - -   -
  Total commercial  17 87 977 1,081  42 1.36   88
Consumer:           
 Real estate 1-4 family first mortgage  348 207 173 728  74 3.00   502
 Real estate 1-4 family junior lien mortgage  14 67 35 116  7 3.66   79
 Credit card  - 59 - 59  - 10.75   59
 Automobile  2 13 34 49  13 7.65   14
 Other revolving credit and installment  - 1 1 2  1 4.72   1
 Trial modifications (6)  - - 94 94  - -   -
  Total consumer  364 347 337 1,048  95 3.88   655
   Total$ 381 434 1,314 2,129  137 3.58%$ 743
                
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      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)
                
Six months ended June 30, 2013         
Commercial:           
 Commercial and industrial$ - 83 561 644  1 6.42%$ 83
 Real estate mortgage  28 170 768 966  6 1.68   170
 Real estate construction  - 3 199 202  4 0.91   3
 Lease financing  - - - -   - -    -
 Foreign  15 - - 15  - -    -
  Total commercial  43 256 1,528 1,827  11 3.20   256
Consumer:           
 Real estate 1-4 family first mortgage  626 757 2,096 3,479  145 2.56   1,186
 Real estate 1-4 family junior lien mortgage  52 94 258 404  16 3.24   142
 Credit card  - 92 - 92  - 10.63   92
 Automobile  2 8 48 58  16 7.00   8
 Other revolving credit and installment  - 6 7 13  - 4.80   6
 Trial modifications (6)  - - 54 54  - -   -
  Total consumer  680 957 2,463 4,100  177 3.18   1,434
   Total$ 723 1,213 3,991 5,927  188 3.19%$ 1,690
                
Six months ended June 30, 2012         
Commercial:           
 Commercial and industrial$ 11 22 749 782  26 1.62%$ 23
 Real estate mortgage  11 120 936 1,067  14 1.47   122
 Real estate construction  - 7 284 291  13 2.53   6
 Lease financing  - - 2 2  - -   -
 Foreign  - - 2 2  - -   -
  Total commercial  22 149 1,973 2,144  53 1.54   151
Consumer:           
 Real estate 1-4 family first mortgage  654 504 372 1,530  133 2.91   1,042
 Real estate 1-4 family junior lien mortgage  33 137 69 239  16 3.85   165
 Credit card  - 133 - 133  - 10.82   133
 Automobile   4 32 57 93  19 7.56   34
 Other revolving credit and installment  - 1 1 2  1 4.72   1
 Trial modifications (6)  - - 671 671  - -   -
  Total consumer  691 807 1,170 2,668  169 3.90   1,375
   Total$ 713 956 3,143 4,812  222 3.67%$ 1,526
                
(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. The reported amounts include loans remodified in the current reporting period, which total $647 million and $601 million for the second quarters of 2013 and 2012 and $1.6 billion and $1.2 billion for the first half of 2013 and 2012, respectively.
(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 and six months ended June 30, 2013, include $617 million and $1.9 billion, respectively, of consumer loans discharged in bankruptcy. The OCC guidance issued in third quarter 2012 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 $95 million and $130 million for the second quarters of 2013 and 2012 and $229 million and $221 million for the first half of 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 June 30,  Six months ended June 30,
(in millions)  2013 2012  2013 2012
Commercial:      
 Commercial and industrial$ 174 40  195 150
 Real estate mortgage  116 97  177 349
 Real estate construction  24 74  52 229
  Total commercial  314 211  424 728
Consumer:      
 Real estate 1-4 family first mortgage  81 150  164 297
 Real estate 1-4 family junior lien mortgage  7 16  17 36
 Credit card  16 24  32 51
 Automobile  5 21  9 27
 Other revolving credit and installment  - 1  - 1
  Total consumer  109 212  222 412
   Total$ 423 423  646 1,140
     
Purchased Credit Impaired Loans, Loans Outstanding
          
      June 30, December 31,
(in millions)  2013  2012 2008
Commercial:      
 Commercial and industrial$ 195  259 4,580
 Real estate mortgage  1,746  1,970 5,803
 Real estate construction  602  877 6,462
 Foreign  714  871 1,859
  Total commercial  3,257  3,977 18,704
Consumer:     
 Real estate 1-4 family first mortgage  25,408  26,839 39,214
 Real estate 1-4 family junior lien mortgage  134  152 728
 Automobile  -  - 151
  Total consumer  25,542  26,991 40,093
   Total PCI loans (carrying value)$ 28,799  30,968 58,797
Total PCI loans (unpaid principal balance)$ 41,380  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)  (905)
 Accretion into noninterest income due to sales (2)  (151)
 Reclassification from nonaccretable difference for loans with improving credit-related cash flows  907
 Changes in expected cash flows that do not affect nonaccretable difference (3)  1,622
Balance, June 30, 2013$ 20,021
        
Balance, March 31, 2013$ 17,965
 Addition of accretable yield due to acquisitions  -
 Accretion into interest income (1)  (458)
 Accretion into noninterest income due to sales (2)  -
 Reclassification from nonaccretable difference for loans with improving credit-related cash flows  876
 Changes in expected cash flows that do not affect nonaccretable difference (3)  1,638
Balance, June 30, 2013$ 20,021
        
(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
 Provision for losses due to credit deterioration / (reversal of provision)  (34) - 1 (33)
 Charge-offs   (5) - (8) (13)
Balance, June 30, 2013$ 49 - 22 71
        
Balance, March 31, 2013$ 53 - 27 80
 Provision for losses due to credit deterioration / (reversal of provision)  (2) - 1 (1)
 Charge-offs   (2) - (6) (8)
Balance, June 30, 2013$ 49 - 22 71
        
Purchased Credit Impaired Loans by Credit Quality Indicator
           
     CommercialRealReal  
      andestateestate  
(in millions) industrialmortgageconstructionForeignTotal
           
June 30, 2013      
           
By risk category:     
 Pass$ 100 320 204 7 631
 Criticized  95 1,426 398 707 2,626
  Total commercial PCI loans$ 195 1,746 602 714 3,257
           
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
           
June 30, 2013      
           
By delinquency status:     
 Current-29 DPD and still accruing$ 186 1,596 483 540 2,805
 30-89 DPD and still accruing  3 69 18 11 101
 90+ DPD and still accruing  6 81 101 163 351
  Total commercial PCI loans$ 195 1,746 602 714 3,257
           
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
             
      June 30, 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$ 21,201 182 21,383  22,304 198 22,502
 30-59 DPD and still accruing  2,317 9 2,326  2,587 11 2,598
 60-89 DPD and still accruing  1,201 4 1,205  1,361 7 1,368
 90-119 DPD and still accruing  553 3 556  650 6 656
 120-179 DPD and still accruing  640 5 645  804 7 811
 180+ DPD and still accruing  4,953 105 5,058  5,356 116 5,472
  Total consumer PCI loans (adjusted unpaid principal balance)$ 30,865 308 31,173  33,062 345 33,407
  Total consumer PCI loans (carrying value)$ 25,408 134 25,542  26,839 152 26,991
             
Purchased Credit Impaired Loans by FICO Score, Consumer
             
      June 30, 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$ 11,341 118 11,459  13,163 144 13,307
 600-639  6,310 63 6,373  6,673 68 6,741
 640-679  6,634 71 6,705  6,602 73 6,675
 680-719  3,659 37 3,696  3,635 39 3,674
 720-759  1,696 11 1,707  1,757 11 1,768
 760-799  884 5 889  874 6 880
 800+  206 1 207  202 1 203
No FICO available  135 2 137  156 3 159
  Total consumer PCI loans (adjusted unpaid principal balance)$ 30,865 308 31,173  33,062 345 33,407
  Total consumer PCI loans (carrying value)$ 25,408 134 25,542  26,839 152 26,991
             
Purchased Credit Impaired Loans by Loan to Value Ratio, Consumer
             
      June 30, 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%$ 1,665 24 1,689  1,374 21 1,395
 60.01-80%  5,212 31 5,243  4,119 30 4,149
 80.01-100%  10,314 66 10,380  9,576 61 9,637
 100.01-120% (1)  7,027 87 7,114  8,084 93 8,177
 > 120% (1)  6,611 99 6,710  9,889 138 10,027
No LTV/CLTV available  36 1 37  20 2 22
  Total consumer PCI loans (adjusted unpaid principal balance)$ 30,865 308 31,173  33,062 345 33,407
  Total consumer PCI loans (carrying value)$ 25,408 134 25,542  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.