Bank of America Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Outstanding Loans and Leases (Tables)

Outstanding Loans and Leases (Tables)

9 Months Ended

Sep. 30, 2013

Loans and Leases Receivable, Net of Deferred Income [Abstract]

The following tables present total outstanding loans and leases and an aging analysis for the Corporation's Home Loans, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at September 30, 2013 and December 31, 2012.



	September 30, 2013
(Dollars in millions)	30-59 Days Past Due ⁽¹⁾			60-89 Days Past Due ⁽¹⁾			90 Days or More Past Due ⁽²⁾			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due ⁽³⁾			Purchased Credit - impaired ⁽⁴⁾			Loans Accounted for Under the Fair Value Option			Total Outstandings
Home loans
Core portfolio
Residential mortgage ⁽⁵⁾	$	2,182		$	766		$	7,452		$	10,400		$	167,108								$	177,508
Home equity	230			118			654			1,002			54,714									55,716
Legacy Assets & Servicing portfolio
Residential mortgage ⁽⁶⁾	2,952			1,485			18,793			23,230			32,694			$	20,064					75,988
Home equity	439			234			1,289			1,962			31,871			7,104						40,937
Credit card and other consumer
U.S. credit card	609			454			1,049			2,112			88,168									90,280
Non-U.S. credit card	67			55			142			264			10,819									11,083
Direct/Indirect consumer ⁽⁷⁾	398			188			456			1,042			82,993									84,035
Other consumer ⁽⁸⁾	24			9			19			52			1,861									1,913
Total consumer loans	6,901			3,309			29,854			40,064			470,228			27,168						537,460
Consumer loans accounted for under the fair value option ⁽⁹⁾																			$	2,186		2,186
Total consumer	6,901			3,309			29,854			40,064			470,228			27,168			2,186			539,646
Commercial
U.S. commercial	187			124			445			756			210,358									211,114
Commercial real estate ⁽¹⁰⁾	44			108			440			592			44,348									44,940
Commercial lease financing	29			53			72			154			24,435									24,589
Non-U.S. commercial	286			1			3			290			92,655									92,945
U.S. small business commercial	71			58			128			257			12,891									13,148
Total commercial loans	617			344			1,088			2,049			384,687									386,736
Commercial loans accounted for under the fair value option ⁽⁹⁾																			8,010			8,010
Total commercial	617			344			1,088			2,049			384,687						8,010			394,746
Total loans and leases	$	7,518		$	3,653		$	30,942		$	42,113		$	854,915		$	27,168		$	10,196		$	934,392
Percentage of outstandings	0.81		%	0.39		%	3.31		%	4.51		%	91.49		%	2.91		%	1.09		%


⁽¹⁾	Home loans 30-59 days past due includes fully-insured loans of $2.6 billion and nonperforming loans of $736 million. Home loans 60-89 days past due includes fully-insured loans of $1.2 billion and nonperforming loans of $494 million.


⁽²⁾	Home loans includes fully-insured loans of $18.0 billion.


⁽³⁾	Home loans includes $6.2 billion and direct/indirect consumer includes $39 million of nonperforming loans.


⁽⁴⁾	PCI loan amounts are shown gross of the valuation allowance.


⁽⁵⁾	Total outstandings includes non-U.S. residential mortgage loans of $87 million.


⁽⁶⁾	Total outstandings includes pay option loans of $5.2 billion. The Corporation no longer originates this product.


⁽⁷⁾	Total outstandings includes dealer financial services loans of $39.5 billion, consumer lending loans of $3.1 billion, U.S. securities-based lending loans of $30.4 billion, non-U.S. consumer loans of $5.7 billion, student loans of $4.3 billion and other consumer loans of $1.0 billion.


⁽⁸⁾	Total outstandings includes consumer finance loans of $1.2 billion, consumer leases of $492 million, consumer overdrafts of $175 million and other non-U.S. consumer loans of $5 million.


⁽⁹⁾	Consumer loans accounted for under the fair value option were residential mortgage loans of $2.2 billion. Commercial loans accounted for under the fair value option were U.S. commercial loans of $1.8 billion and non-U.S. commercial loans of $6.2 billion. For additional information, see Note 16 – Fair Value Measurements and Note 17 – Fair Value Option.


⁽¹⁰⁾	Total outstandings includes U.S. commercial real estate loans of $43.5 billion and non-U.S. commercial real estate loans of $1.4 billion.



	December 31, 2012
(Dollars in millions)	30-59 Days Past Due ⁽¹⁾			60-89 Days Past Due ⁽¹⁾			90 Days or More Past Due ⁽²⁾			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due ⁽³⁾			Purchased Credit - impaired ⁽⁴⁾			Loans Accounted for Under the Fair Value Option			Total Outstandings
Home loans
Core portfolio
Residential mortgage ⁽⁵⁾	$	2,274		$	806		$	6,227		$	9,307		$	160,809								$	170,116
Home equity	273			146			591			1,010			59,841									60,851
Legacy Assets & Servicing portfolio
Residential mortgage ⁽⁶⁾	2,938			1,714			26,728			31,380			33,982			$	17,451					82,813
Home equity	608			357			1,444			2,409			36,213			8,667						47,289
Credit card and other consumer
U.S. credit card	729			582			1,437			2,748			92,087									94,835
Non-U.S. credit card	106			85			212			403			11,294									11,697
Direct/Indirect consumer⁽⁷⁾	569			239			573			1,381			81,824									83,205
Other consumer ⁽⁸⁾	48			19			4			71			1,557									1,628
Total consumer loans	7,545			3,948			37,216			48,709			477,607			26,118						552,434
Consumer loans accounted for under the fair value option ⁽⁹⁾																			$	1,005		1,005
Total consumer	7,545			3,948			37,216			48,709			477,607			26,118			1,005			553,439
Commercial
U.S. commercial	323			133			639			1,095			196,031									197,126
Commercial real estate ⁽¹⁰⁾	79			144			983			1,206			37,431									38,637
Commercial lease financing	84			79			30			193			23,650									23,843
Non-U.S. commercial	2			—			—			2			74,182									74,184
U.S. small business commercial	101			75			168			344			12,249									12,593
Total commercial loans	589			431			1,820			2,840			343,543									346,383
Commercial loans accounted for under the fair value option ⁽⁹⁾																			7,997			7,997
Total commercial	589			431			1,820			2,840			343,543						7,997			354,380
Total loans and leases	$	8,134		$	4,379		$	39,036		$	51,549		$	821,150		$	26,118		$	9,002		$	907,819
Percentage of outstandings	0.90		%	0.48		%	4.30		%	5.68		%	90.45		%	2.88		%	0.99		%


⁽¹⁾	Home loans 30-59 days past due includes fully-insured loans of $2.3 billion and nonperforming loans of $702 million. Home loans 60-89 days past due includes fully-insured loans of $1.3 billion and nonperforming loans of $558 million.


⁽²⁾	Home loans includes fully-insured loans of $22.2 billion.


⁽³⁾	Home loans includes $5.5 billion and direct/indirect consumer includes $63 million of nonperforming loans.


⁽⁴⁾	PCI loan amounts are shown gross of the valuation allowance.


⁽⁵⁾	Total outstandings includes non-U.S. residential mortgage loans of $93 million.


⁽⁶⁾	Total outstandings includes pay option loans of $6.7 billion. The Corporation no longer originates this product.


⁽⁷⁾	Total outstandings includes dealer financial services loans of $35.9 billion, consumer lending loans of $4.7 billion, U.S. securities-based lending loans of $28.3 billion, non-U.S. consumer loans of $8.3 billion, student loans of $4.8 billion and other consumer loans of $1.2 billion.


⁽⁸⁾	Total outstandings includes consumer finance loans of $1.4 billion, consumer leases of $34 million, consumer overdrafts of $177 million and other non-U.S. consumer loans of $5 million.


⁽⁹⁾	Consumer loans accounted for under the fair value option were residential mortgage loans of $1.0 billion. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.3 billion and non-U.S. commercial loans of $5.7 billion. For additional information, see Note 16 – Fair Value Measurements and Note 17 – Fair Value Option.


⁽¹⁰⁾	Total outstandings includes U.S. commercial real estate loans of $37.2 billion and non-U.S. commercial real estate loans of $1.5 billion.

Schedule of Financing Receivables, Non Accrual Status

The table below presents the Corporation's nonperforming loans and leases including nonperforming TDRs, and loans accruing past due 90 days or more at September 30, 2013 and December 31, 2012. Nonperforming loans held-for-sale (LHFS) are excluded from nonperforming loans and leases as they are recorded at either fair value or the lower of cost or fair value. For more information on the criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation's 2012 Annual Report on Form 10-K.



Credit Quality
	Nonperforming Loans and Leases ⁽¹⁾				Accruing Past Due 90 Days or More
(Dollars in millions)	September 30 2013		December 31 2012		September 30 2013		December 31 2012
Home loans
Core portfolio
Residential mortgage ⁽²⁾	$	3,479	$	3,193	$	5,207	$	3,984
Home equity	1,417		1,265		—		—
Legacy Assets & Servicing portfolio
Residential mortgage ⁽²⁾	9,849		11,862		12,753		18,173
Home equity	2,759		3,017		—		—
Credit card and other consumer
U.S. credit card	n/a		n/a		1,049		1,437
Non-U.S. credit card	n/a		n/a		142		212
Direct/Indirect consumer	59		92		437		545
Other consumer	18		2		1		2
Total consumer	17,581		19,431		19,589		24,353
Commercial
U.S. commercial	1,059		1,484		57		65
Commercial real estate	488		1,513		76		29
Commercial lease financing	49		44		66		15
Non-U.S. commercial	86		68		3		—
U.S. small business commercial	103		115		83		120
Total commercial	1,785		3,224		285		229
Total loans and leases	$	19,366	$	22,655	$	19,874	$	24,582


⁽¹⁾	Nonperforming loan balances did not include nonaccruing TDRs removed from the PCI loan portfolio prior to January 1, 2010 of $356 million and $521 million at September 30, 2013 and December 31, 2012.

⁽²⁾

Residential mortgage loans in the Core and Legacy Assets & Servicing portfolios accruing past due 90 days or more are fully-insured loans. At September 30, 2013 and December 31, 2012, residential mortgage includes $13.9 billion and $17.8 billion of loans on which interest has been curtailed by the FHA, and therefore are no longer accruing interest, although principal is still insured, and $4.1 billion and $4.4 billion of loans on which interest is still accruing.

n/a = not applicable

Financing Receivable Credit Quality Indicators

The following tables present certain credit quality indicators for the Corporation's Home Loans, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at September 30, 2013 and December 31, 2012.



Home Loans – Credit Quality Indicators ⁽¹⁾
	September 30, 2013
(Dollars in millions)	Core Portfolio Residential Mortgage ⁽²⁾		Legacy Assets & Servicing Residential Mortgage ⁽²⁾		Residential Mortgage PCI ⁽³⁾		Core Portfolio Home Equity ⁽²⁾		Legacy Assets & Servicing Home Equity ⁽²⁾		Home Equity PCI
Refreshed LTV ⁽⁴⁾
Less than or equal to 90 percent	$	92,172	$	22,199	$	10,760	$	44,827	$	15,827	$	1,963
Greater than 90 percent but less than or equal to 100 percent	6,983		4,526		3,011		4,374		4,290		668
Greater than 100 percent	8,212		10,466		6,293		6,515		13,716		4,473
Fully-insured loans ⁽⁵⁾	70,141		18,733		—		—		—		—
Total home loans	$	177,508	$	55,924	$	20,064	$	55,716	$	33,833	$	7,104

Refreshed FICO score
Less than 620	$	6,032	$	11,770	$	10,871	$	2,413	$	4,478	$	1,296
Greater than or equal to 620 and less than 680	7,955		5,919		3,363		4,187		5,240		1,272
Greater than or equal to 680 and less than 740	25,097		8,133		3,056		11,840		9,414		2,018
Greater than or equal to 740	68,283		11,369		2,774		37,276		14,701		2,518
Fully-insured loans ⁽⁵⁾	70,141		18,733		—		—		—		—
Total home loans	$	177,508	$	55,924	$	20,064	$	55,716	$	33,833	$	7,104


⁽¹⁾	Excludes $2.2 billion of loans accounted for under the fair value option.


⁽²⁾	Excludes PCI loans.


⁽³⁾	Includes $4.7 billion of pay option loans. The Corporation no longer originates this product.


⁽⁴⁾	Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.


⁽⁵⁾	Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.



Credit Card and Other Consumer – Credit Quality Indicators
	September 30, 2013
(Dollars in millions)	U.S. Credit Card		Non-U.S. Credit Card		Direct/Indirect Consumer		Other Consumer ⁽¹⁾
Refreshed FICO score
Less than 620	$	5,112	$	—	$	1,293	$	571
Greater than or equal to 620 and less than 680	13,106		—		3,264		273
Greater than or equal to 680 and less than 740	36,054		—		10,087		205
Greater than or equal to 740	36,008		—		27,419		193
Other internal credit metrics ^{(2, 3, 4)}	—		11,083		41,972		671
Total credit card and other consumer	$	90,280	$	11,083	$	84,035	$	1,913


⁽¹⁾	65 percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.


⁽²⁾	Other internal credit metrics may include delinquency status, geography or other factors.


⁽³⁾	Direct/indirect consumer includes $36.0 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $4.3 billion of loans the Corporation no longer originates.


⁽⁴⁾	Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At September 30, 2013, 98 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and one percent was 90 days or more past due.



Commercial – Credit Quality Indicators ⁽¹⁾
	September 30, 2013
(Dollars in millions)	U.S. Commercial		Commercial Real Estate		Commercial Lease Financing		Non-U.S. Commercial		U.S. Small Business Commercial ⁽²⁾
Risk ratings
Pass rated	$	203,620	$	43,135	$	23,500	$	91,399	$	1,313
Reservable criticized	7,494		1,805		1,089		1,546		391
Refreshed FICO score ⁽³⁾
Less than 620									235
Greater than or equal to 620 and less than 680									548
Greater than or equal to 680 and less than 740									1,594
Greater than or equal to 740									2,820
Other internal credit metrics ^{(3, 4)}									6,247
Total commercial	$	211,114	$	44,940	$	24,589	$	92,945	$	13,148


⁽¹⁾	Excludes $8.0 billion of loans accounted for under the fair value option.


⁽²⁾	U.S. small business commercial includes $295 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At September 30, 2013, 99 percent of the balances where internal credit metrics are used was current or less than 30 days past due.


⁽³⁾	Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.


⁽⁴⁾	Other internal credit metrics may include delinquency status, application scores, geography or other factors.



Home Loans – Credit Quality Indicators ⁽¹⁾
	December 31, 2012
(Dollars in millions)	Core Portfolio Residential Mortgage ⁽²⁾		Legacy Assets & Servicing Residential Mortgage ⁽²⁾		Residential Mortgage PCI ⁽³⁾		Core Portfolio Home Equity ⁽²⁾		Legacy Assets & Servicing Home Equity ⁽²⁾		Home Equity PCI
Refreshed LTV ⁽⁴⁾
Less than or equal to 90 percent	$	80,585	$	20,613	$	8,581	$	44,971	$	15,922	$	2,074
Greater than 90 percent but less than or equal to 100 percent	8,891		5,097		2,368		5,825		4,507		805
Greater than 100 percent	12,984		16,454		6,502		10,055		18,193		5,788
Fully-insured loans ⁽⁵⁾	67,656		23,198		—		—		—		—
Total home loans	$	170,116	$	65,362	$	17,451	$	60,851	$	38,622	$	8,667

Refreshed FICO score
Less than 620	$	6,366	$	14,320	$	8,647	$	2,586	$	5,411	$	1,989
Greater than or equal to 620 and less than 680	8,561		6,157		2,712		4,500		5,921		1,529
Greater than or equal to 680 and less than 740	25,141		8,611		2,976		12,625		10,395		2,299
Greater than or equal to 740	62,392		13,076		3,116		41,140		16,895		2,850
Fully-insured loans ⁽⁵⁾	67,656		23,198		—		—		—		—
Total home loans	$	170,116	$	65,362	$	17,451	$	60,851	$	38,622	$	8,667


⁽¹⁾	Excludes $1.0 billion of loans accounted for under the fair value option.


⁽²⁾	Excludes PCI loans.


⁽³⁾	Includes $6.1 billion of pay option loans. The Corporation no longer originates this product.


⁽⁴⁾	Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.


⁽⁵⁾	Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.



Credit Card and Other Consumer – Credit Quality Indicators
	December 31, 2012
(Dollars in millions)	U.S. Credit Card		Non-U.S. Credit Card		Direct/Indirect Consumer		Other Consumer ⁽¹⁾
Refreshed FICO score
Less than 620	$	6,188	$	—	$	1,896	$	668
Greater than or equal to 620 and less than 680	13,947		—		3,367		301
Greater than or equal to 680 and less than 740	37,167		—		9,592		232
Greater than or equal to 740	37,533		—		25,164		212
Other internal credit metrics ^{(2, 3, 4)}	—		11,697		43,186		215
Total credit card and other consumer	$	94,835	$	11,697	$	83,205	$	1,628


⁽¹⁾	87 percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.


⁽²⁾	Other internal credit metrics may include delinquency status, geography or other factors.


⁽³⁾	Direct/indirect consumer includes $36.5 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $4.8 billion of loans the Corporation no longer originates.


⁽⁴⁾	Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2012, 97 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and two percent was 90 days or more past due.



Commercial – Credit Quality Indicators ⁽¹⁾
	December 31, 2012
(Dollars in millions)	U.S. Commercial		Commercial Real Estate		Commercial Lease Financing		Non-U.S. Commercial		U.S. Small Business Commercial ⁽²⁾
Risk ratings
Pass rated	$	189,602	$	34,968	$	22,874	$	72,688	$	1,690
Reservable criticized	7,524		3,669		969		1,496		573
Refreshed FICO score ⁽³⁾
Less than 620									400
Greater than or equal to 620 and less than 680									580
Greater than or equal to 680 and less than 740									1,553
Greater than or equal to 740									2,496
Other internal credit metrics ^{(3, 4)}									5,301
Total commercial	$	197,126	$	38,637	$	23,843	$	74,184	$	12,593


⁽¹⁾	Excludes $8.0 billion of loans accounted for under the fair value option.


⁽²⁾	U.S. small business commercial includes $366 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2012, 98 percent of the balances where internal credit metrics are used was current or less than 30 days past due.


⁽³⁾	Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.


⁽⁴⁾	Other internal credit metrics may include delinquency status, application scores, geography or other factors.

Impaired Loans and Troubled Debt Restructurings

Impaired Financing Receivables

The table below presents impaired loans in the Corporation's Home Loans portfolio segment at September 30, 2013 and December 31, 2012, and for the three and nine months ended September 30, 2013 and 2012, and includes primarily loans managed by Legacy Assets & Servicing. Certain impaired home loans do not have a related allowance as the current valuation of these impaired loans exceeded the carrying value.



Impaired Loans – Home Loans
					September 30, 2013						December 31, 2012
(Dollars in millions)					Unpaid Principal Balance		Carrying Value		Related Allowance		Unpaid Principal Balance		Carrying Value		Related Allowance
With no recorded allowance
Residential mortgage					$	22,528	$	17,165	n/a		$	20,226	$	14,967	n/a
Home equity					3,002		1,328		n/a		2,624		1,103		n/a
With an allowance recorded
Residential mortgage					$	13,793	$	13,227	$	1,141	$	14,223	$	13,158	$	1,252
Home equity					1,069		886		343		1,256		1,022		448
Total
Residential mortgage					$	36,321	$	30,392	$	1,141	$	34,449	$	28,125	$	1,252
Home equity					4,071		2,214		343		3,880		2,125		448

	Three Months Ended September 30								Nine Months Ended September 30
	2013				2012				2013				2012
	Average Carrying Value		Interest Income Recognized ⁽¹⁾		Average Carrying Value		Interest Income Recognized ⁽¹⁾		Average Carrying Value		Interest Income Recognized ⁽¹⁾		Average Carrying Value		Interest Income Recognized ⁽¹⁾
With no recorded allowance
Residential mortgage	$	16,984	$	152	$	11,606	$	88	$	16,563	$	436	$	9,734	$	239
Home equity	1,286		19		819		13		1,208		55		603		32
With an allowance recorded
Residential mortgage	$	14,027	$	173	$	11,435	$	97	$	14,221	$	451	$	11,361	$	305
Home equity	902		9		1,095		12		942		31		1,186		34
Total
Residential mortgage	$	31,011	$	325	$	23,041	$	185	$	30,784	$	887	$	21,095	$	544
Home equity	2,188		28		1,914		25		2,150		86		1,789		66


⁽¹⁾	Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.

n/a = not applicable

Purchased Loans at Acquisition Date

PCI 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. The following table provides details on PCI loans acquired in connection with the FNMA Settlement during the nine months ended September 30, 2013.



Purchased Loans at Acquisition Date
(Dollars in millions)
Contractually required payments including interest	$	8,274
Less: Nonaccretable difference	2,159
Cash flows expected to be collected ⁽¹⁾	6,115
Less: Accretable yield	1,125
Fair value of loans acquired	$	4,990


⁽¹⁾	Represents undiscounted expected principal and interest cash flows at acquisition.

Accretable Yield Activity

The table below shows activity for the accretable yield on PCI loans, which primarily includes the Countrywide Financial Corporation (Countrywide) portfolio and loans repurchased in connection with the FNMA Settlement. For more information on the FNMA Settlement, see Note 8 – Representations and Warranties Obligations and Corporate Guarantees. The amount of accretable yield is affected by changes in credit outlooks, including metrics such as default rates and loss severities, prepayments speeds, which can change the amount and period of time over which interest payments are expected to be received, and the interest rates on variable rate loans. The reclassifications from nonaccretable difference during the three and nine months ended September 30, 2013 were due to increases in expected cash flows driven by improved home prices and lower expected defaults, along with a decrease in prepayment speeds as a result of rising interest rates. Changes in the prepayment assumption affect the expected remaining life of the portfolio which results in a change to the amount of future interest cash flows.



Rollforward of Accretable Yield
(Dollars in millions)	Three Months Ended September 30, 2013			Nine Months Ended September 30, 2013
Accretable yield, beginning of period	$	6,775		$	4,644
Accretion	(303		)	(901		)
Loans purchased	—			1,125
Disposals/transfers	(81		)	(219		)
Reclassifications from nonaccretable difference	292			2,034
Accretable yield, September 30, 2013	$	6,683		$	6,683

Consumer Portfolio Segment [Member]

Loans and Leases Receivable, Net of Deferred Income [Abstract]

Impaired Financing Receivables

The table below provides information on the Corporation's renegotiated TDR portfolio in the Credit Card and Other Consumer portfolio segment at September 30, 2013 and December 31, 2012, and for the three and nine months ended September 30, 2013 and 2012.



Impaired Loans – Credit Card and Other Consumer – Renegotiated TDRs
					September 30, 2013						December 31, 2012
(Dollars in millions)					Unpaid Principal Balance		Carrying Value ⁽¹⁾		Related Allowance		Unpaid Principal Balance		Carrying Value ⁽¹⁾		Related Allowance
With an allowance recorded
U.S. credit card					$	1,706	$	1,716	$	370	$	2,856	$	2,871	$	719
Non-U.S. credit card					246		250		161		311		316		198
Direct/Indirect consumer					351		352		104		633		636		210
Other consumer					28		27		10		30		30		12
Without an allowance recorded
Direct/Indirect consumer					81		37		—		105		58		—
Other consumer					34		34		—		35		35		—
Total
U.S. credit card					$	1,706	$	1,716	$	370	$	2,856	$	2,871	$	719
Non-U.S. credit card					246		250		161		311		316		198
Direct/Indirect consumer					432		389		104		738		694		210
Other consumer					62		61		10		65		65		12

	Three Months Ended September 30								Nine Months Ended September 30
	2013				2012				2013				2012
	Average Carrying Value		Interest Income Recognized ⁽²⁾		Average Carrying Value		Interest Income Recognized ⁽²⁾		Average Carrying Value		Interest Income Recognized ⁽²⁾		Average Carrying Value		Interest Income Recognized ⁽²⁾
With an allowance recorded
U.S. credit card	$	1,926	$	30	$	3,727	$	58	$	2,310	$	108	$	4,380	$	204
Non-U.S. credit card	254		2		447		2		274		6		509		7
Direct/Indirect consumer	406		5		864		12		498		20		1,003		41
Other consumer	27		1		30		—		28		2		32		1
Without an allowance recorded
Direct/Indirect consumer	38		—		—		—		45		—		—		—
Other consumer	34		—		34		1		34		1		35		2
Total
U.S. credit card	$	1,926	$	30	$	3,727	$	58	$	2,310	$	108	$	4,380	$	204
Non-U.S. credit card	254		2		447		2		274		6		509		7
Direct/Indirect consumer	444		5		864		12		543		20		1,003		41
Other consumer	61		1		64		1		62		3		67		3


⁽¹⁾	Includes accrued interest and fees.


⁽²⁾	Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.

Remaining Unpaid Principal Balance, Carrying Amount And Excluding Valuation Reserve

The table below provides information on the Corporation's primary modification programs for the renegotiated TDR portfolio at September 30, 2013 and December 31, 2012.



Credit Card and Other Consumer – Renegotiated TDRs by Program Type
	Internal Programs				External Programs				Other				Total				Percent of Balances Current or Less Than 30 Days Past Due
(Dollars in millions)	September 30 2013		December 31 2012		September 30 2013		December 31 2012		September 30 2013		December 31 2012		September 30 2013		December 31 2012		September 30 2013		December 31 2012
U.S. credit card	$	1,016	$	1,887	$	681	$	953	$	19	$	31	$	1,716	$	2,871	83.74	%	81.48	%
Non-U.S. credit card	78		99		27		38		145		179		250		316		49.34		43.71
Direct/Indirect consumer	215		405		131		225		43		64		389		694		84.62		83.11
Other consumer	61		65		—		—		—		—		61		65		73.13		72.73
Total renegotiated TDRs	$	1,370	$	2,456	$	839	$	1,216	$	207	$	274	$	2,416	$	3,946	80.04		78.58

Renegotiated Troubled Debt Restructurings By Program Type

The table below provides information on the Corporation's renegotiated TDR portfolio including the unpaid principal balance, carrying value and average pre- and post-modification interest rates of loans that were modified in TDRs during the three and nine months ended September 30, 2013 and 2012, and net charge-offs that were recorded during the period in which the modification occurred.



Credit Card and Other Consumer – Renegotiated TDRs Entered into During the Three Months September 30, 2013 and 2012
	September 30, 2013								Three Months Ended September 30, 2013
(Dollars in millions)	Unpaid Principal Balance		Carrying Value ⁽¹⁾		Pre-Modification Interest Rate		Post-Modification Interest Rate		Net Charge-offs
U.S. credit card	$	100	$	102	16.86	%	5.70	%	$	2
Non-U.S. credit card	61		64		26.09		0.67		2
Direct/Indirect consumer	16		12		10.89		4.68		4
Other consumer	2		2		9.10		6.01		—
Total	$	179	$	180	19.65		3.85		$	8

	September 30, 2012								Three Months Ended September 30, 2012
U.S. credit card	$	102	$	105	17.37	%	6.32	%	$	2
Non-U.S. credit card	90		94		26.13		0.77		4
Direct/Indirect consumer	14		14		15.40		3.90		2
Other consumer	2		2		9.91		6.17		—
Total	$	208	$	215	21.00		3.73		$	8

Credit Card and Other Consumer – Renegotiated TDRs Entered into During the Nine Months Ended September 30, 2013 and 2012
	September 30, 2013								Nine Months Ended September 30, 2013
U.S. credit card	$	237	$	240	16.88	%	5.96	%	$	16
Non-U.S. credit card	138		143		26.04		0.87		78
Direct/Indirect consumer	41		31		11.17		4.90		12
Other consumer	4		5		9.35		5.40		—
Total	$	420	$	419	19.51		4.13		$	106

	September 30, 2012								Nine Months Ended September 30, 2012
U.S. credit card	$	342	$	346