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2.0.0.10 false Allowance for Credit Losses 114 - Disclosure - Allowance for Credit Losses 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 Allowance for Credit Losses 3 bac_AllowanceForCreditLossesDisclosureTextBlock bac false na duration string The allowance for loan and lease losses represents the reserve to cover probable credit losses related to specifically... 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%" align="center"> <tr> <td bgcolor="#E6E6E6" valign="top">NOTE 7 – Allowance for Credit Losses</td> </tr> </table>   The following table summarizes the changes in the allowance for credit losses for the three months ended March 31, 2010 and 2009.   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr> <td width="83%"></td> <td valign="bottom" width="3%"></td> <td></td> <td></td> <td valign="bottom" width="4%"></td> <td></td> <td></td> </tr> <tr> <td valign="bottom"> </td> <td valign="bottom">  </td> <td valign="bottom" colspan="5" align="center">Three Months Ended March 31</td> </tr> <tr style="FONT-SIZE: 1px"> <td valign="bottom"></td> <td valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom">  </td> <td style="BORDER-TOP: #000000 1px solid" valign="bottom" colspan="4"> </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">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">2009</td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Allowance for loan and lease losses, January 1, before effect of adoption of     new consolidation guidance   </td> <td valign="bottom">  </td> <td valign="bottom">$</td> <td valign="bottom" align="right">37,200</td> <td valign="bottom">    </td> <td valign="bottom">$</td> <td valign="bottom" align="right">23,071     </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Allowance related to adoption of new consolidation guidance   </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">10,788</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">n/a     </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Allowance for loan and lease losses, January 1   </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">47,988</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">23,071     </td> </tr> <tr> <td valign="top">   Loans and leases charged off   </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(11,501)</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">(7,356)    </td> </tr> <tr bgcolor="#CCEEFF"> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Recoveries of loans and leases previously charged off   </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">704</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">414     </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Net charge-offs   </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">(10,797)</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">(6,942)    </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Provision for loan and lease losses   </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">9,599</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">13,352     </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Other   </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">45</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">(433)    </td> </tr> <tr bgcolor="#CCEEFF"> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Allowance for loan and lease losses, March 31   </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">46,835</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">29,048     </td> </tr> <tr> <td valign="top">   Reserve for unfunded lending commitments, January 1   </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">1,487</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">421     </td> </tr> <tr bgcolor="#CCEEFF"> <td valign="top">   Provision for unfunded lending commitments   </td> <td valign="bottom">  </td> <td valign="bottom"> </td> <td valign="bottom" align="right">206</td> <td valign="bottom">    </td> <td valign="bottom"> </td> <td valign="bottom" align="right">28     </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Other   </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">(172)</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">1,653     </td> </tr> <tr bgcolor="#CCEEFF"> <td style="BORDER-BOTTOM: #000000 1px solid" valign="top">   Reserve for unfunded lending commitments, March 31   </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">1,521</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">2,102     </td> </tr> <tr> <td style="BORDER-BOTTOM: #000000 2px solid" valign="top">   Allowance for credit losses, March 31 </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">48,356</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">31,150     </td> </tr> </table> n/a = not applicable During the three months ended March 31, 2010 and 2009, the Corporation recorded $848 million and $853 million in provision for credit losses with a corresponding increase in the valuation reserve included as part of the allowance for loan and lease losses specifically for the purchased credit-impaired portfolio. The amount of the allowance for loan and lease losses associated with the purchased credit-impaired loan portfolio was $5.1 billion and $3.9 billion at March 31, 2010 and December 31, 2009. The increase in the allowance for loan and lease losses was a result of provision for credit losses and the reclassification to the nonaccretable difference of previous write-downs recorded against the allowance. The “other” amount under the reserve for unfunded lending commitments for the three months ended March 31, 2009 represents the fair value of the acquired Merrill Lynch reserve excluding those commitments accounted for under the fair value option, net of accretion, and the impact of funding previously unfunded portions.   </div> NOTE 7 – Allowance for Credit Losses   The following table summarizes the changes in the allowance for credit losses for the three months ended false false false The allowance for loan and lease losses represents the reserve to cover probable credit losses related to specifically identified loans and leases, as well as probable credit losses inherent in the remainder of the loan portfolio, and probable losses related to unfunded lending commitments such as letters of credit, financial guarantees and binding loan commitments as of the balance sheet date. For banks, include currently required allocated transfer risk reserves. Include carryover of or adjustments to the allowance for loan losses in connection with business combinations determined to be appropriate. No authoritative reference available. false false 1 1 false UnKnown UnKnown UnKnown false true