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Loans, Notes and Mortgages (Tables)
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9 Months Ended |
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Sep. 30, 2012
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| Loans and Leases Receivable, Net of Deferred Income [Abstract] |
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| Schedule of Loans Outstanding |
The table below presents information on Merrill Lynch’s loans outstanding at September 30, 2012 and December 31, 2011.
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Age Analysis of Outstanding Loans |
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(dollars in millions) |
September 30, 2012 |
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30-59 Days |
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60-89 Days |
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90 Days or more |
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Total Past |
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Total Current or Less Than |
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Nonperforming |
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Loans Measured at |
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Total |
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Past Due |
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Past Due |
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Past Due |
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Due |
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30 Days Past Due |
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Loans (1)
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Fair Value |
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Outstanding |
Consumer loans |
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Residential mortgage |
$ |
9 |
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$ |
4 |
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$ |
— |
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$ |
13 |
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$ |
423 |
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$ |
22 |
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$ |
— |
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$ |
458 |
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Home equity |
— |
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— |
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— |
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— |
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|
97 |
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3 |
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— |
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|
100 |
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Total consumer |
9 |
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4 |
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— |
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13 |
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|
520 |
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|
25 |
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— |
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558 |
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Commercial |
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U.S. commercial |
— |
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— |
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— |
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— |
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3,146 |
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43 |
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— |
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3,189 |
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Commercial real estate |
— |
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— |
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— |
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— |
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543 |
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28 |
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— |
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571 |
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Non-U.S. commercial |
— |
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— |
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— |
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— |
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2,923 |
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42 |
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— |
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2,965 |
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Total commercial loans |
— |
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— |
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— |
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— |
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6,612 |
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113 |
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— |
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6,725 |
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Commercial loans measured at
fair value
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— |
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— |
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— |
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— |
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— |
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— |
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1,219 |
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1,219 |
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Total commercial |
— |
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— |
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— |
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— |
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6,612 |
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113 |
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1,219 |
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7,944 |
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Other (2)
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— |
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— |
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— |
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— |
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9,670 |
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— |
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1,461 |
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11,131 |
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Total loans |
$ |
9 |
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$ |
4 |
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$ |
— |
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$ |
13 |
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$ |
16,802 |
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$ |
138 |
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$ |
2,680 |
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$ |
19,633 |
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Allowance for loan losses |
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(69 |
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Total loans, net |
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$ |
19,564 |
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Age Analysis of Outstanding Loans |
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(dollars in millions) |
December 31, 2011 |
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30-59 Days |
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60-89 Days |
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90 Days or more |
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Total Past |
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Total Current or Less Than |
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Nonperforming |
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Loans Measured at |
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Total |
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Past Due |
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Past Due |
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Past Due |
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Due |
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30 Days Past Due |
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Loans (1)
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Fair Value |
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Outstanding |
Consumer loans |
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Residential mortgage |
$ |
20 |
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$ |
4 |
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$ |
— |
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$ |
24 |
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$ |
420 |
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$ |
25 |
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$ |
— |
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$ |
469 |
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Home equity |
— |
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— |
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— |
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— |
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117 |
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4 |
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— |
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121 |
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Total consumer |
20 |
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4 |
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— |
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24 |
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537 |
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29 |
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— |
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590 |
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Commercial |
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U.S. commercial |
— |
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1 |
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2 |
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3 |
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3,753 |
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85 |
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— |
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3,841 |
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Commercial real estate |
— |
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— |
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— |
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— |
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667 |
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108 |
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— |
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775 |
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Non-U.S. commercial |
— |
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— |
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— |
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— |
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3,040 |
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65 |
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— |
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3,105 |
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Total commercial loans |
— |
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1 |
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2 |
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3 |
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7,460 |
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258 |
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— |
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7,721 |
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Commercial loans measured at
fair value
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— |
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— |
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— |
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— |
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— |
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— |
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909 |
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909 |
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Total commercial |
— |
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1 |
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2 |
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3 |
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7,460 |
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258 |
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909 |
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8,630 |
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Other (3)
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— |
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— |
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— |
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— |
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10,013 |
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— |
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1,413 |
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11,426 |
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Total loans |
$ |
20 |
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$ |
5 |
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$ |
2 |
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$ |
27 |
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$ |
18,010 |
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$ |
287 |
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$ |
2,322 |
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$ |
20,646 |
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Allowance for loan losses |
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(72 |
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Total loans, net |
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$ |
20,574 |
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(1) |
Excludes loans measured at fair value. |
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(2) |
Includes securities-backed loans and loans held-for-sale of $9.1 billion and $2.0 billion, respectively, as of September 30, 2012.
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(3) |
Includes securities-backed loans and loans held-for-sale of $8.9 billion and $2.5 billion, respectively, as of December 31, 2011.
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| Schedule of Financing Receivable Credit Quality Indicators |
The table below presents credit quality indicators for Merrill Lynch’s commercial loan portfolio, excluding loans accounted for under the fair value option, at September 30, 2012 and December 31, 2011.
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(dollars in millions) |
September 30, 2012 |
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U.S. Commercial |
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Commercial Real Estate |
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Non-U.S. Commercial |
Risk Ratings |
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Pass rated |
$ |
3,025 |
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$ |
446 |
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$ |
2,833 |
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Reservable criticized |
164 |
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125 |
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132 |
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Total Commercial Credit |
$ |
3,189 |
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$ |
571 |
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$ |
2,965 |
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(dollars in millions) |
December 31, 2011 |
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U.S. Commercial |
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Commercial Real Estate |
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Non-U.S. Commercial |
Risk Ratings |
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Pass rated |
$ |
3,594 |
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$ |
511 |
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$ |
2,967 |
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Reservable criticized |
247 |
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264 |
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138 |
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Total Commercial Credit |
$ |
3,841 |
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$ |
775 |
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$ |
3,105 |
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| Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent |
Activity in the allowance for loan losses, which is primarily associated with commercial loans, is presented below:
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(dollars in millions) |
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For the Nine Months Ended
September 30, 2012 |
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For the Nine Months Ended
September 30, 2011 |
Allowance for loan losses, at beginning of period |
$ |
72 |
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$ |
170 |
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Provision for loan losses |
(1 |
) |
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24 |
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Charge-offs |
(12 |
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(108 |
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Recoveries |
9 |
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3 |
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Net charge-offs |
(3 |
) |
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(105 |
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Other |
1 |
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1 |
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Allowance for loan losses, at end of period |
$ |
69 |
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$ |
90 |
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| Schedule of Net Credit Default Protection |
The following tables provide information regarding Merrill Lynch’s net credit default protection associated with its funded and unfunded commercial loans as of September 30, 2012 and December 31, 2011:
Net Credit Default Protection by Maturity Profile
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September 30,
2012 |
December 31,
2011 |
Less than or equal to one year |
22 |
% |
16 |
% |
Greater than one year and less than or equal to five years |
77 |
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82 |
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Greater than five years |
1 |
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2 |
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Total net credit default protection |
100 |
% |
100 |
% |
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Net Credit Default Protection by Credit Exposure Debt Rating
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(dollars in millions) |
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September 30, 2012 |
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December 31, 2011 |
Ratings(1)
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Net
Notional |
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Percent |
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Net
Notional |
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Percent |
AA |
$ |
(583 |
) |
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22.7 |
% |
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$ |
(661 |
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19.4 |
% |
A |
(1,195 |
) |
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46.4 |
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(1,542 |
) |
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45.1 |
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BBB |
(550 |
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21.4 |
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(637 |
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18.6 |
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BB |
(85 |
) |
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3.3 |
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(190 |
) |
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5.6 |
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B |
(40 |
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1.6 |
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(190 |
) |
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5.6 |
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CCC and below |
(119 |
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4.6 |
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(195 |
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5.7 |
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Total net credit default protection |
$ |
(2,572 |
) |
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100 |
% |
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$ |
(3,415 |
) |
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100.0 |
% |
(1)Merrill Lynch considers ratings of BBB- or higher to meet the definition of investment grade.
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