Quarterly report pursuant to Section 13 or 15(d)

Allowance for Credit Losses (Tables)

 v2.3.0.11
Allowance for Credit Losses (Tables)
6 Months Ended
Jun. 30, 2011
Allowance for Credit Losses [Abstract]  
Changes in the allowance for credit losses
                                 
    Three Months Ended June 30, 2011  
            Credit Card                
            and Other             Total  
(Dollars in millions)   Home Loans     Consumer     Commercial     Allowance  
 
Allowance for loan and lease losses, April 1
  $ 20,097     $ 13,271     $ 6,475     $ 39,843  
Loans and leases charged off
    (2,603 )     (3,245 )     (759 )     (6,607 )
Recoveries of loans and leases previously charged off
    210       476       256       942  
 
Net charge-offs
    (2,393 )     (2,769 )     (503 )     (5,665 )
 
Provision for loan and lease losses
    3,249       529       (518 )     3,260  
Other
    -       (100 )     (26 )     (126 )
 
Allowance for loan and lease losses, June 30
    20,953       10,931       5,428       37,312  
 
Reserve for unfunded lending commitments, April 1
    -       -       961       961  
Provision for unfunded lending commitments
    -       -       (5 )     (5 )
Other (1)
    -       -       (59 )     (59 )
 
Reserve for unfunded lending commitments, June 30
    -       -       897       897  
 
Allowance for credit losses, June 30
  $ 20,953     $ 10,931     $ 6,325     $ 38,209  
 
                                 
    Six Months Ended June 30, 2011  
Allowance for loan and lease losses, January 1
  $ 19,252     $ 15,463     $ 7,170     $ 41,885  
Loans and leases charged off
    (4,892 )     (6,976 )     (1,665 )     (13,533 )
Recoveries of loans and leases previously charged off
    395       966       479       1,840  
 
Net charge-offs
    (4,497 )     (6,010 )     (1,186 )     (11,693 )
 
Provision for loan and lease losses
    6,197       1,508       (529 )     7,176  
Other
    1       (30 )     (27 )     (56 )
 
Allowance for loan and lease losses, June 30
    20,953       10,931       5,428       37,312  
 
Reserve for unfunded lending commitments, January 1
    -       -       1,188       1,188  
Provision for unfunded lending commitments
    -       -       (107 )     (107 )
Other (1)
    -       -       (184 )     (184 )
 
Reserve for unfunded lending commitments, June 30
    -       -       897       897  
 
Allowance for credit losses, June 30
  $ 20,953     $ 10,931     $ 6,325     $ 38,209  
 
                                 
    Three Months Ended June 30, 2010  
Allowance for loan and lease losses, April 1
  $ 17,971     $ 19,683     $ 9,181     $ 46,835  
Loans and leases charged off
    (2,819 )     (5,916 )     (1,571 )     (10,306 )
Recoveries of loans and leases previously charged off
    88       505       156       749  
 
Net charge-offs
    (2,731 )     (5,411 )     (1,415 )     (9,557 )
 
Provision for loan and lease losses
    3,659       3,489       957       8,105  
Other
    (61 )     (69 )     2       (128 )
 
Allowance for loan and lease losses, June 30
    18,838       17,692       8,725       45,255  
 
Reserve for unfunded lending commitments, April 1
    -       -       1,521       1,521  
Other (1)
    -       -       (108 )     (108 )
 
Reserve for unfunded lending commitments, June 30
    -       -       1,413       1,413  
 
Allowance for credit losses, June 30
  $ 18,838     $ 17,692     $ 10,138     $ 46,668  
 
                                 
    Six Months Ended June 30, 2010  
Allowance for loan and lease losses, January 1
  $ 16,329     $ 22,243     $ 9,416     $ 47,988  
Loans and leases charged off
    (6,389 )     (12,179 )     (3,239 )     (21,807 )
Recoveries of loans and leases previously charged off
    171       1,007       275       1,453  
 
Net charge-offs
    (6,218 )     (11,172 )     (2,964 )     (20,354 )
 
Provision for loan and lease losses
    8,632       6,799       2,273       17,704  
Other
    95       (178 )     -       (83 )
 
Allowance for loan and lease losses, June 30
    18,838       17,692       8,725       45,255  
 
Reserve for unfunded lending commitments, January 1
    -       -       1,487       1,487  
Provision for unfunded lending commitments
    -       -       206       206  
Other (1)
    -       -       (280 )     (280 )
 
Reserve for unfunded lending commitments, June 30
    -       -       1,413       1,413  
 
Allowance for credit losses, June 30
  $ 18,838     $ 17,692     $ 10,138     $ 46,668  
 
(1)  
Represents primarily accretion of the Merrill Lynch purchase accounting adjustment and the impact of funding previously unfunded positions.
Carrying value of outstanding loans and leases
                                 
    June 30, 2011  
            Credit Card              
            and Other              
(Dollars in millions)   Home Loans     Consumer     Commercial     Total  
 
Impaired loans and troubled debt restructurings (1)
                               
Allowance for loan and lease losses (2)
  $ 2,094     $ 3,372     $ 778     $ 6,244  
Carrying value
    17,983       9,279       8,994       36,256  
Allowance as a percentage of carrying value
    11.64 %     36.34 %     8.66 %     17.22 %
 
Collectively evaluated for impairment
                               
Allowance for loan and lease losses
  $ 10,466     $ 7,559     $ 4,649     $ 22,674  
Carrying value (3)
    356,117       214,437       289,779       860,333  
Allowance as a percentage of carrying value (3)
    2.94 %     3.53 %     1.60 %     2.64 %
 
Purchased credit-impaired loans
                               
Allowance for loan and lease losses
  $ 8,393       n/a     $ 1     $ 8,394  
Carrying value excluding valuation allowance
    34,890       n/a       181       35,071  
Allowance as a percentage of carrying value
    24.06 %     n/a       0.39 %     23.94 %
 
Total
                               
Allowance for loan and lease losses
  $ 20,953     $ 10,931     $ 5,428     $ 37,312  
Carrying value (3)
    408,990       223,716       298,954       931,660  
Allowance as a percentage of carrying value (3)
    5.12 %     4.89 %     1.82 %     4.00 %
 
                                 
    December 31, 2010  
Impaired loans and troubled debt restructurings (1)
                               
Allowance for loan and lease losses (2)
  $ 1,871     $ 4,786     $ 1,080     $ 7,737  
Carrying value
    13,904       11,421       10,645       35,970  
Allowance as a percentage of carrying value
    13.46 %     41.91 %     10.15 %     21.51 %
 
Collectively evaluated for impairment
                               
Allowance for loan and lease losses
  $ 10,964     $ 10,677     $ 6,078     $ 27,719  
Carrying value (3)
    358,765       222,967       282,820       864,552  
Allowance as a percentage of carrying value (3)
    3.06 %     4.79 %     2.15 %     3.21 %
 
Purchased credit-impaired loans
                               
Allowance for loan and lease losses
  $ 6,417       n/a     $ 12     $ 6,429  
Carrying value excluding valuation allowance
    36,393       n/a       204       36,597  
Allowance as a percentage of carrying value
    17.63 %     n/a       5.76 %     17.57 %
 
Total
                               
Allowance for loan and lease losses
  $ 19,252     $ 15,463     $ 7,170     $ 41,885  
Carrying value (3)
    409,062       234,388       293,669       937,119  
Allowance as a percentage of carrying value (3)
    4.71 %     6.60 %     2.44 %     4.47 %
 
(1)  
Impaired loans include nonperforming commercial loans and all commercial and consumer TDRs. Impaired loans exclude nonperforming consumer loans unless they are classified as TDRs, and all loans and leases that are accounted for under the fair value option.
 
(2)  
Commercial impaired allowance for loan and lease losses includes $268 million and $445 million at June 30, 2011 and December 31, 2010 related to U.S. small business commercial renegotiated TDR loans.
 
(3)  
Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option. Total loans accounted for under the fair value option were $9.6 billion and $3.3 billion at June 30, 2011 and December 31, 2010.
 
n/a  
= not applicable