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2.0.0.10 false Outstanding Loans and Leases 113 - Disclosure - Outstanding Loans and Leases true false false false 1 usd $ 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 false false false 1 false false false false 0 0 <div> <table border="0" cellspacing="0" cellpadding="0" width="100%" bgcolor="#E6E6E6" align="center"> <tr> <td valign="top"> NOTE 6 – Outstanding Loans and Leases </td> </tr> </table> The table below presents outstanding loans and leases at March 31, 2010 and December 31, 2009.   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="80%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   (Dollars in millions)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">March 31 2010 (1)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">December 31        2009        </td> </tr> <tr bgcolor="#CCEEFF"> <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 (2) </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">245,007</td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">242,129        </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Home equity </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">149,907</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">149,126        </td> </tr> <tr> <td valign="top">   Discontinued real estate (3) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">14,211</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">14,854        </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Credit card – domestic </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">120,783</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">49,453        </td> </tr> <tr> <td valign="top">   Credit card – foreign </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">28,772</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">21,656        </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Direct/Indirect consumer (4) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">99,372</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">97,236        </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Other consumer (5) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">3,022</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">3,110        </td> </tr> <tr bgcolor="#CCEEFF"> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Total consumer </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">661,074</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">577,564        </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 bgcolor="#CCEEFF"> <td valign="top">   Commercial – domestic (6) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">195,862</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">198,903        </td> </tr> <tr> <td valign="top">   Commercial real estate (7) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">66,649</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">69,447        </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Commercial lease financing </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">21,465</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">22,199        </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Commercial – foreign </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">26,905</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">27,079        </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Total commercial loans </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">310,881</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">317,628        </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Commercial loans measured at fair value (8) </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">4,087</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">4,936        </td> </tr> <tr bgcolor="#CCEEFF"> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Total commercial </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">314,968</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">322,564        </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 2px solid" valign="top">   Total loans and leases </td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" align="right">976,042</td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" align="right">900,128        </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"> March 31, 2010 balances are presented in accordance with new consolidation guidance. </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 foreign residential mortgages of $511 million and $552 million at March 31, 2010 and December 31, 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">  (3)  </td> <td valign="top" align="left"> Includes $12.8 billion and $13.4 billion of pay option loans, and $1.4 billion and $1.5 billion of subprime loans at March 31, 2010 and December 31, 2009. 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">  (4)  </td> <td valign="top" align="left"> Includes dealer financial services loans of $45.3 billion and $41.6 billion, consumer lending of $17.7 billion and $19.7 billion, domestic securities-based lending margin loans of $13.5 billion and $12.9 billion, student loans of $11.1 billion and $10.8 billion, foreign consumer loans of $7.9 billion and $8.0 billion and other loans of $3.9 billion and $4.2 billion at March 31, 2010 and December 31, 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">  (5)  </td> <td valign="top" align="left"> Includes consumer finance loans of $2.2 billion and $2.3 billion, other foreign consumer loans of $680 million and $709 million and consumer overdrafts of $173 million and $144 million at March 31, 2010 and December 31, 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">  (6)  </td> <td valign="top" align="left"> Includes small business commercial – domestic loans, including card related products, of $16.6 billion and $17.5 billion at March 31, 2010 and December 31, 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">  (7)  </td> <td valign="top" align="left"> Includes domestic commercial real estate loans of $63.9 billion and $66.5 billion and foreign commercial real estate loans of $2.7 billion and $3.0 billion at March 31, 2010 and December 31, 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">  (8)  </td> <td valign="top" align="left"> Certain commercial loans are accounted for under the fair value option and include commercial – domestic loans of $2.5 billion and $3.0 billion, commercial – foreign loans of $1.5 billion and $1.9 billion and commercial real estate loans of $101 million and $90 million at March 31, 2010 and December 31, 2009. See Note 14 – Fair Value Measurements for additional information on the fair value option. </td> </tr> </table>   The Corporation mitigates a portion of its credit risk through synthetic securitizations which are cash collateralized and provided mezzanine risk protection on residential mortgages of $2.4 billion and $2.5 billion at March 31, 2010 and December 31, 2009 which will reimburse the Corporation in the event that losses exceed 10 basis points (bps) of the original pool balance. As of March 31, 2010 and December 31, 2009, $65.5 billion and $70.7 billion of mortgage loans were protected under these agreements. The decrease in these credit protected pools was due to approximately $3.4 billion in principal payments and loan sales of $1.8 billion. At both March 31, 2010 and December 31, 2009, the Corporation had a receivable of $1.0 billion from these synthetic securitizations for reimbursement of losses. In addition, the Corporation has entered into credit protection agreements with FNMA and FHLMC totaling $6.9 billion and $6.6 billion as of March 31, 2010 and December 31, 2009, 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 troubled debt restructurings (TDRs), at March 31, 2010 and December 31, 2009. This table excludes performing TDRs and loans accounted for under the fair value option. Nonperforming loans held-for-sale (LHFS) are excluded from nonperforming loans and leases as they are recorded at the lower of cost or fair value. In addition, purchased credit-impaired loans and past due consumer credit card, consumer non-real estate-secured loans, unsecured consumer loans and business card loans are not considered nonperforming and are therefore excluded from nonperforming loans and leases in the table. Real estate-secured, past due consumer loans that are insured by the Federal Housing Administration (FHA), including repurchased loans pursuant to the Corporation’s servicing agreements with GNMA, are not reported as nonperforming as principal repayments are insured by the FHA.   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="80%"></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> <td valign="bottom" width="5%"></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   (Dollars in millions)</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">March 31 2010</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2" align="center">December 31       2009      </td> </tr> <tr bgcolor="#CCEEFF"> <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">17,763</td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">16,596      </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Home equity </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,335</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3,804      </td> </tr> <tr> <td valign="top">   Discontinued real estate </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">279</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">249      </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Direct/Indirect consumer </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">91</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">86      </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Other consumer </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">89</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">104      </td> </tr> <tr bgcolor="#CCEEFF"> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Total consumer </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">21,557</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">20,839      </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 bgcolor="#CCEEFF"> <td valign="top">   Commercial – domestic (1) </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">4,586</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">5,125      </td> </tr> <tr> <td valign="top">   Commercial real estate </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">7,177</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">7,286      </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Commercial lease financing </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">147</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">115      </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Commercial – foreign </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">150</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">177      </td> </tr> <tr bgcolor="#CCEEFF"> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Total commercial </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">12,060</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">12,703      </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 2px solid" valign="top">   Total nonperforming loans and leases (2) </td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" align="right">33,617</td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom">     </td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" align="right">33,542      </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 $179 million and $200 million at March 31, 2010 and December 31, 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"> Balances exclude nonaccruing TDRs in the consumer real estate portfolio that were removed from the purchased credit-impaired loan portfolio of $301 million and $395 million at March 31, 2010 and December 31, 2009. </td> </tr> </table> Included in certain loan categories in the nonperforming table above are TDRs that were classified as nonperforming. At March 31, 2010 and December 31, 2009, the Corporation had $3.0 billion and $2.9 billion of residential mortgages, $1.1 billion and $1.7 billion of home equity, $516 million and $486 million of commercial – domestic loans and $53 million and $43 million of discontinued real estate loans that were TDRs and classified as nonperforming. In addition to these amounts, at March 31, 2010 and December 31, 2009, the Corporation had performing TDRs that were on accrual status of $3.6 billion and $2.3 billion of residential mortgages, $795 million and $639 million of home equity, $102 million and $91 million of commercial – domestic loans and $36 million and $35 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. Additionally, the Corporation seeks to assist customers that are experiencing financial difficulty through renegotiating credit card, consumer lending and small business loans (the renegotiated portfolio) while ensuring compliance with Federal Financial Institutions Examination Council (FFIEC) guidelines. As defined in applicable accounting guidance, impaired loans exclude smaller balance homogeneous loans that are collectively evaluated for impairment, all commercial leases and those commercial loans accounted for under the fair value option. Purchased credit-impaired loans are reported and discussed separately below. At March 31, 2010 and December 31, 2009, the Corporation had $12.0 billion and $12.7 billion of commercial impaired loans and $8.6 billion and $7.7 billion of consumer real estate impaired loans. The average recorded investment in commercial and consumer real estate impaired loans for the three months ended March 31, 2010 and 2009 was $20.9 billion and $9.0 billion. At March 31, 2010 and December 31, 2009, the recorded investment in impaired loans requiring an allowance for loan and lease losses was $18.7 billion and $18.6 billion, and the related allowance for loan and lease losses was $2.4 billion and $3.0 billion. For the three months ended March 31, 2010 and 2009, interest income on these impaired loans totaled $111 million and $15 million. At March 31, 2010 and December 31, 2009, remaining commitments to lend additional funds to debtors whose terms have been modified in a commercial or consumer TDR were immaterial. At March 31, 2010 and December 31, 2009, the Corporation had a renegotiated portfolio of $15.5 billion and $8.1 billion and the related allowance was $8.0 billion at March 31, 2010. Current period amounts include the impact of new consolidation guidance which resulted in the consolidation of credit card securitization trusts. The average recorded investment in the renegotiated portfolio for the three months ended March 31, 2010 and 2009 was $15.6 billion and $5.0 billion. Interest income is accrued on outstanding balances with cash receipts first applied to interest and fees, then to outstanding principal balances. For the three months ended March 31, 2010 and 2009, interest income on the renegotiated portfolio totaled $210 million and $63 million. The renegotiated portfolio is excluded from nonperforming loans as the Corporation generally does not classify consumer loans not secured by real estate as nonperforming as these loans are generally charged off no later than the end of the month in which the loan becomes 180 days past due.     Purchased Credit-impaired Loans   Purchased credit-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 credit-impaired loans, substantially all of which are residential mortgage, home equity and discontinued real estate loans, with a remaining unpaid principal balance at March 31, 2010 and December 31, 2009 of $46.3 billion and $47.7 billion and a carrying amount of $37.0 billion and $37.5 billion. In connection with the Merrill Lynch acquisition in 2009, the Corporation acquired purchased credit-impaired loans, substantially all of which are commercial and residential mortgage loans. At March 31, 2010, the unpaid principal balance of Merrill Lynch purchased credit-impaired consumer and commercial loans was $2.3 billion and $1.7 billion and the carrying amount of these loans was $2.0 billion and $604 million. At December 31, 2009, the unpaid principal balance of Merrill Lynch purchased credit-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 a result of the adoption of new accounting guidance on purchased credit-impaired loans, beginning January 1, 2010, pooled loans that are modified subsequent to acquisition are not removed from the purchased credit-impaired loan pools. Prior to January 1, 2010, pooled loans that were modified subsequent to acquisition were reviewed to compare modified contractual cash flows to the purchased credit-impaired carrying value. If the present value of the modified cash flows was lower than the carrying value, the loan was removed from the purchased credit-impaired loan pool at its carrying value, as well as any related allowance for loan and lease losses, and was classified as a TDR. The carrying value of purchased credit-impaired loan TDRs that were removed from the purchased credit-impaired pool prior to January 1, 2010 totaled $2.2 billion at March 31, 2010 of which $1.9 billion were on accrual status. The carrying value of these modified loans, net of allowance, was approximately 68 percent of the unpaid principal balance. The following table shows activity for the accretable yield on purchased credit-impaired loans. The increase in expected cash flows during the three months ended March 31, 2010 of $200 million is primarily attributable to slower forecasted prepayments.   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="91%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   (Dollars in millions)   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" colspan="2">  </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Accretable yield, January 1, 2009   </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">12,860     </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> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Accretion   </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(2,859)    </td> </tr> <tr> <td valign="top">   Disposals/transfers   </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(1,482)    </td> </tr> <tr bgcolor="#CCEEFF"> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Reclassifications to nonaccretable difference   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">(1,431)    </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Accretable yield, December 31, 2009   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">7,715     </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Accretion   </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(500)    </td> </tr> <tr> <td valign="top">   Disposals   </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(47)    </td> </tr> <tr bgcolor="#CCEEFF"> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Reclassifications from nonaccretable difference   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-BOTTOM: #000000 1px solid" valign="bottom" align="right">200     </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 2px solid" valign="top">   Accretable yield, March 31, 2010 </td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom">   </td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom"> $</td> <td style="BORDER-BOTTOM: #000000 2px solid" valign="bottom" align="right">7,368     </td> </tr> </table>   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="100%"></td> </tr> <tr> <td valign="top">   Loans Held-for-Sale </td> </tr> </table> The Corporation had LHFS of $35.4 billion and $43.9 billion at March 31, 2010 and December 31, 2009. Proceeds from sales, securitizations and paydowns of LHFS were $76.5 billion and $80.4 billion for the three months ended March 31, 2010 and 2009. Proceeds used for originations and purchases of LHFS were $65.1 billion and $83.8 billion for the three months ended March 31, 2010 and 2009.   </div> NOTE 6 – Outstanding Loans and Leases The table below presents outstanding loans and leases at March 31, 2010 and December 31, false 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