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BANK OF AMERICA CORP /DE/

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BANK OF AMERICA CORP /DE/

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1.0.0.3 false Outstanding Loans and Leases false 1 $ false false iso4217_USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 iso4217_USD_per_shares Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares 0 shares Standard http://www.xbrl.org/2003/instance shares 0 5 Outstanding Loans and Leases 3 bac_LoansHeldForInvestmentTextBlock bac false na duration string Reflects the aggregate gross carrying amount of all categories of loans and leases held in portfolio, after deducting... false false false false false false false false false 1 false false 0 0 <div> NOTE 6 – Outstanding Loans and Leases Outstanding loans and leases at December 31, 2009 and 2008 were:       <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="82%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="5" align="center">December 31</td> </tr> <tr> <td valign="bottom">(Dollars in millions)</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="2" align="right">2009</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="2" align="right">2008</td> </tr> <tr> <td valign="top"> Consumer </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">    </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Residential mortgage (1) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">242,129</td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">248,063</td> </tr> <tr> <td valign="top"> Home equity </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">149,126</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">152,483</td> </tr> <tr> <td valign="top"> Discontinued real estate (2) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">14,854</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">19,981</td> </tr> <tr> <td valign="top"> Credit card – domestic </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">49,453</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">64,128</td> </tr> <tr> <td valign="top"> Credit card – foreign </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">21,656</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">17,146</td> </tr> <tr> <td valign="top"> Direct/Indirect consumer (3) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">97,236</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">83,436</td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Other consumer (4) </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">3,110</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">3,442</td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Total consumer </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">577,564</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">588,679</td> </tr> <tr> <td valign="top"> Commercial </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">    </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Commercial – domestic (5) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">198,903</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">219,233</td> </tr> <tr> <td valign="top"> Commercial real estate (6) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">69,447</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">64,701</td> </tr> <tr> <td valign="top"> Commercial lease financing </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">22,199</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">22,400</td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Commercial – foreign </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">27,079</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">31,020</td> </tr> <tr> <td valign="top"> Total commercial loans </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">317,628</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">337,354</td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Commercial loans measured at fair value (7) </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">4,936</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">5,413</td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Total commercial </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">322,564</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">342,767</td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Total loans and leases </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">900,128</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">931,446</td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="1%" align="left">(1)</td> <td valign="top" align="left"> Includes foreign residential mortgages of $552 million at December 31, 2009 mainly from the Merrill Lynch acquisition. The Corporation did not have any material foreign residential mortgage loans prior to January 1, 2009. </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="1%" align="left">(2)</td> <td valign="top" align="left"> Includes $13.4 billion and $18.2 billion of pay option loans and $1.5 billion and $1.8 billion of subprime loans at December 31, 2009 and 2008. The Corporation no longer originates these products. </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="1%" align="left">(3)</td> <td valign="top" align="left"> Includes dealer financial services loans of $41.6 billion and $40.1 billion, consumer lending of $19.7 billion and $28.2 billion, securities-based lending margin loans of $12.9 billion and $0, and foreign consumer loans of $7.8 billion and $1.8 billion at December 31, 2009 and 2008. </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="1%" align="left">(4)</td> <td valign="top" align="left"> Includes consumer finance loans of $2.3 billion and $2.6 billion, and other foreign consumer loans of $709 million and $618 million at December 31, 2009 and 2008. </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="1%" align="left">(5)</td> <td valign="top" align="left"> Includes small business commercial – domestic loans, primarily credit card related, of $17.5 billion and $19.1 billion at December 31, 2009 and 2008. </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="1%" align="left">(6)</td> <td valign="top" align="left"> Includes domestic commercial real estate loans of $66.5 billion and $63.7 billion and foreign commercial real estate loans of $3.0 billion and $979 million at December 31, 2009 and 2008. </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="1%" align="left">(7)</td> <td valign="top" align="left"> Certain commercial loans are accounted for under the fair value option and include commercial – domestic loans of $3.0 billion and $3.5 billion, commercial – foreign loans of $1.9 billion and $1.7 billion, and commercial real estate loans of $90 million and $203 million at December 31, 2009 and 2008. See Note 20 – Fair Value Measurements for additional discussion of fair value for certain financial instruments. </td> </tr> </table>   The Corporation mitigates a portion of its credit risk through synthetic securitizations which are cash collateralized and provide mezzanine risk protection of $2.5 billion which will reimburse the Corporation in the event that losses exceed 10 bps of the original pool balance. As of December 31, 2009 and 2008, $70.7 billion and $109.3 billion of mortgage loans were protected by these agreements. The decrease in these credit protected pools was due to approximately $12.1 billion in loan sales, a terminated transaction of $6.6 billion and principal payments during the year. During 2009, $669 million was recognized in other income for amounts that will be reimbursed under these structures. As of December 31, 2009, the Corporation had a receivable of $1.0 billion from these structures for reimbursement of losses. In addition, the Corporation has entered into credit protection agreements with GSEs totaling $6.6 billion and $9.6 billion as of December 31, 2009 and 2008, providing full protection on conforming residential mortgage loans that become severely delinquent.     Nonperforming Loans and Leases The following table presents the Corporation’s nonperforming loans and leases, including nonperforming TDRs at December 31, 2009 and 2008. This table excludes performing TDRs and loans accounted for under the fair value option. Nonperforming LHFS are excluded from nonperforming loans and leases as they are recorded at the lower of cost or fair value. In addition, purchased impaired loans and past due consumer credit card, consumer non-real estate-secured loans and leases, and business card loans are not considered nonperforming loans and leases and are therefore excluded from nonperforming loans and leases. Real estate-secured, past due consumer loans repurchased pursuant to the Corporation’s servicing agreements with GNMA are not reported as nonperforming as repayments are guaranteed by the FHA.     Nonperforming Loans and Leases   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="82%"></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="5" align="center">December 31</td> </tr> <tr> <td valign="bottom">(Dollars in millions)</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="2" align="right">2009</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" colspan="2" align="right">2008</td> </tr> <tr> <td valign="top"> Consumer </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">    </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Residential mortgage </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">16,596</td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">7,057</td> </tr> <tr> <td valign="top"> Home equity </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,804</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,637</td> </tr> <tr> <td valign="top"> Discontinued real estate </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">249</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">77</td> </tr> <tr> <td valign="top"> Direct/Indirect consumer </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">86</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">26</td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Other consumer </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">104</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">91</td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Total consumer </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">20,839</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">9,888</td> </tr> <tr> <td valign="top"> Commercial </td> <td valign="bottom"> </td> <td valign="bottom"></td> <td valign="bottom"></td> <td valign="bottom">    </td> <td valign="bottom"></td> <td valign="bottom"></td> </tr> <tr> <td valign="top"> Commercial – domestic (1) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">5,125</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">2,245</td> </tr> <tr> <td valign="top"> Commercial real estate </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">7,286</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,906</td> </tr> <tr> <td valign="top"> Commercial lease financing </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">115</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">56</td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Commercial – foreign </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">177</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">290</td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Total commercial </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">12,703</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">6,497</td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Total nonperforming loans and leases </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">33,542</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">16,385</td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="1%" align="left">(1)</td> <td valign="top" align="left"> Includes small business commercial – domestic loans of $200 million and $205 million at December 31, 2009 and 2008. </td> </tr> </table>   Included in certain loan categories in the nonperforming table above are TDRs that were classified as nonperforming. At December 31, 2009 and 2008, the Corporation had $2.9 billion and $209 million of residential mortgages, $1.7 billion and $302 million of home equity, $486 million and $44 million of commercial – domestic loans, and $43 million and $5 million of discontinued real estate loans that were TDRs and classified as nonperforming. In addition to these amounts, the Corporation had performing TDRs that were on accrual status of $2.3 billion and $320 million of residential mortgages, $639 million and $1 million of home equity, $91 million and $13 million of commercial – domestic loans, and $35 million and $66 million of discontinued real estate. Impaired Loans and Troubled Debt Restructurings A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans, commercial performing TDRs, and both performing and nonperforming consumer real estate TDRs. As defined in applicable accounting guidance, impaired loans exclude nonperforming consumer loans not modified in a TDR, and all commercial loans and leases accounted for under the fair value option. Purchased impaired loans are reported and discussed separately below. At December 31, 2009 and 2008, the Corporation had $12.7 billion and $6.5 billion of commercial impaired loans and $7.7 billion and $903 million of consumer impaired loans. The average recorded investment in the commercial and consumer impaired loans for 2009, 2008 and 2007 was approximately $15.1 billion, $5.0 billion and $1.2 billion, respectively. At December 31, 2009 and 2008, the recorded investment in impaired loans requiring an allowance for loan and lease losses was $18.6 billion and $6.9 billion, and the related allowance for loan and lease losses was $3.0 billion and $720 million. For 2009, 2008 and 2007, interest income recognized on impaired loans totaled $266 million, $105 million and $130 million, respectively. At December 31, 2009 and 2008, remaining commitments to lend additional funds to debtors whose terms have been modified in a commercial or consumer TDR were immaterial. The Corporation seeks to assist customers that are experiencing financial difficulty through renegotiating credit card and consumer lending loans while ensuring compliance with Federal Financial Institutions Examination Council (FFIEC) guidelines. At December 31, 2009 and 2008, the Corporation had renegotiated consumer credit card – domestic held loans of $4.2 billion and $2.3 billion of which $3.1 billion and $1.7 billion were current or less than 30 days past due under the modified terms. In addition, at December 31, 2009 and 2008, the Corporation had renegotiated consumer credit card – foreign held loans of $898 million and $517 million of which $471 million and $287 million were current or less than 30 days past due under the modified terms, and consumer lending loans of $2.0 billion and $1.3 billion of which $1.5 billion and $854 million were current or less than 30 days past due under the modified terms. These renegotiated loans are excluded from nonperforming loans. Purchased Impaired Loans Purchased impaired loans are acquired loans with evidence of credit quality deterioration since origination for which it is probable at purchase date that the Corporation will be unable to collect all contractually required payments. In connection with the Countrywide acquisition in 2008, the Corporation acquired purchased impaired loans, substantially all of which are residential mortgage, home equity and discontinued real estate, with an unpaid principal balance of $47.7 billion and $55.4 billion and a carrying amount of $37.5 billion and $42.2 billion at December 31, 2009 and 2008. At December 31, 2009, the unpaid principal balance of Merrill Lynch purchased impaired consumer and commercial loans was $2.4 billion and $2.0 billion and the carrying amount of these loans was $2.1 billion and $692 million. As of the acquisition date of January 1, 2009, these loans had an unpaid principal balance of $2.7 billion and $2.9 billion and a fair value of $2.3 billion and $1.9 billion.       The following table provides details on purchased impaired loans obtained in the Merrill Lynch acquisition. This information is provided only for acquisitions that occurred in the current year.     Acquired Loan Information for Merrill Lynch as of January 1, 2009   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="82%"></td> <td valign="bottom" width="13%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom">(Dollars in millions)</td> <td valign="bottom"> </td> <td valign="bottom" colspan="2"> </td> <td valign="bottom"> </td> </tr> <tr> <td valign="top"> Contractually required payments including interest </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">6,205</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Less: Nonaccretable difference </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">(1,357</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td valign="top"> Cash flows expected to be collected (1) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">4,848</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Less: Accretable yield </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">(627</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Fair value of loans acquired </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">4,221</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="10" align="left">(1)</td> <td valign="top" align="left"> Represents undiscounted expected principal and interest cash flows upon acquisition. </td> </tr> </table> Consumer purchased impaired loans are accounted for on a pool basis. Pooled loans that are modified subsequent to acquisition are reviewed to compare modified contractual cash flows to the purchased impaired loan carrying value. If the present value of the modified cash flows is lower than the carrying value, the loan is removed from the purchased impaired loan pool at its carrying value, as well as any related allowance for loan and lease losses, and classified as a TDR. The carrying value of purchased impaired loan TDRs totaled $2.3 billion at December 31, 2009 of which $1.9 billion were on accrual status. The carrying value of these modified loans, net of allowance, was approximately 69 percent of the unpaid principal balance. The Corporation recorded a $750 million provision for credit losses establishing a corresponding valuation allowance within the allowance for loan and lease losses for purchased impaired loans at December 31, 2008. The Corporation recorded $3.7 billion in provision, including a $3.5 billion addition to the allowance for loan and lease losses, related to the purchased impaired loan portfolio during 2009 due to a decrease in expected principal cash flows. The amount of the allowance for loan and lease losses associated with the purchased impaired loan portfolio was $3.9 billion at December 31, 2009, primarily related to Countrywide. The following table shows activity for the accretable yield on purchased impaired loans acquired from Countrywide and Merrill Lynch for 2009 and 2008. The decrease in expected cash flows during 2009 of $1.4 billion is primarily attributable to lower expected interest cash flows due to increased credit losses, faster prepayment assumptions and lower rates.     Accretable Yield Activity   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="80%"></td> <td valign="bottom" width="13%"></td> <td></td> <td></td> <td></td> </tr> <tr> <td valign="bottom">(Dollars in millions)</td> <td valign="bottom"> </td> <td valign="bottom" colspan="2"> </td> <td valign="bottom"> </td> </tr> <tr> <td valign="top"> Accretable yield, July 1, 2008 (1) </td> <td valign="bottom"> </td> <td valign="bottom">$</td> <td valign="bottom" align="right">19,549</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Accretion </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(1,667</td> <td valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td valign="top"> Disposals/transfers </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(589</td> <td valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Reclassifications to nonaccretable difference </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">(4,433</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Accretable yield, January 1, 2009 </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">12,860</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Merrill Lynch balance </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">627</td> <td valign="bottom" nowrap="nowrap">  </td> </tr> <tr> <td valign="top"> Accretion </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(2,859</td> <td valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td valign="top"> Disposals/transfers (2) </td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(1,482</td> <td valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Reclassifications to nonaccretable difference </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">(1,431</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" nowrap="nowrap">) </td> </tr> <tr> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="top"> Accretable yield, December 31, 2009 </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" align="right">7,715</td> <td style="BORDER-BOTTOM: #b23040 1px solid" valign="bottom" nowrap="nowrap">  </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="10" align="left">(1)</td> <td valign="top" align="left"> Represents the accretable yield of loans acquired from Countrywide at July 1, 2008. </td> </tr> </table> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td valign="top" width="10" align="left">(2)</td> <td valign="top" align="left"> Includes $1.2 billion in accretable yield related to loans restructured in TDRs in which the present value of modified cash flows was lower than expectations upon acquisition. These TDRs were removed from the purchased impaired loan pool. </td> </tr> </table> Loans Held-for-Sale The Corporation had LHFS of $43.9 billion and $31.5 billion at December 31, 2009 and 2008. Proceeds from sales, securitizations and paydowns of LHFS were $365.1 billion, $142.1 billion and $107.1 billion for 2009, 2008 and 2007. Proceeds used for originations and purchases of LHFS were $369.4 billion, $127.5 billion and $123.0 billion for 2009, 2008 and 2007. </div> NOTE 6 – Outstanding Loans and Leases Outstanding loans and leases at December 31, 2009 and 2008 false false Reflects the aggregate gross carrying amount of all categories of loans and leases held in portfolio, after deducting deferred income, but before deducting the allowance for losses on loans and leases. No authoritative reference available. false false 1 1 false UnKnown UnKnown UnKnown false true