Quarterly report pursuant to Section 13 or 15(d)

Loans, Notes and Mortgages (Tables)

v2.4.0.6
Loans, Notes and Mortgages (Tables)
9 Months Ended
Sep. 30, 2012
Loans and Leases Receivable, Net of Deferred Income [Abstract]  
Schedule of Loans Outstanding
The table below presents information on Merrill Lynch’s loans outstanding at September 30, 2012 and December 31, 2011.
Age Analysis of Outstanding Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in millions)
September 30, 2012
 
30-59 Days
 
60-89 Days
 
90 Days or more
 
Total Past
 
Total Current or Less Than
 
Nonperforming
 
Loans Measured at
 
Total
 
Past Due
 
Past Due
 
Past Due
 
Due
 
30 Days Past Due
 
Loans (1)
 
Fair Value
 
Outstanding
Consumer loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Residential mortgage
$
9

 
$
4

 
$

 
$
13

 
$
423

 
$
22

 
$

 
$
458

 Home equity

 

 

 

 
97

 
3

 

 
100

             Total consumer
9

 
4

 

 
13

 
520

 
25

 

 
558

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 U.S. commercial

 

 

 

 
3,146

 
43

 

 
3,189

 Commercial real estate

 

 

 

 
543

 
28

 

 
571

 Non-U.S. commercial

 

 

 

 
2,923

 
42

 

 
2,965

             Total commercial loans

 

 

 

 
6,612

 
113

 

 
6,725

 Commercial loans measured at
     fair value

 

 

 

 

 

 
1,219

 
1,219

             Total commercial

 

 

 

 
6,612

 
113

 
1,219

 
7,944

         Other (2)

 

 

 

 
9,670

 

 
1,461

 
11,131

             Total loans
$
9

 
$
4

 
$

 
$
13

 
$
16,802

 
$
138

 
$
2,680

 
$
19,633

         Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(69
)
             Total loans, net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
19,564

Age Analysis of Outstanding Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(dollars in millions)
December 31, 2011
 
30-59 Days
 
60-89 Days
 
90 Days or more
 
Total Past
 
Total Current or Less Than
 
Nonperforming
 
Loans Measured at
 
Total
 
Past Due
 
Past Due
 
Past Due
 
Due
 
30 Days Past Due
 
Loans (1)
 
Fair Value
 
Outstanding
Consumer loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Residential mortgage
$
20

 
$
4

 
$

 
$
24

 
$
420

 
$
25

 
$

 
$
469

 Home equity

 

 

 

 
117

 
4

 

 
121

             Total consumer
20

 
4

 

 
24

 
537

 
29

 

 
590

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 U.S. commercial

 
1

 
2

 
3

 
3,753

 
85

 

 
3,841

 Commercial real estate

 

 

 

 
667

 
108

 

 
775

 Non-U.S. commercial

 

 

 

 
3,040

 
65

 

 
3,105

             Total commercial loans

 
1

 
2

 
3

 
7,460

 
258

 

 
7,721

 Commercial loans measured at
     fair value

 

 

 

 

 

 
909

 
909

             Total commercial

 
1

 
2

 
3

 
7,460

 
258

 
909

 
8,630

         Other (3)

 

 

 

 
10,013

 

 
1,413

 
11,426

             Total loans
$
20

 
$
5

 
$
2

 
$
27

 
$
18,010

 
$
287

 
$
2,322

 
$
20,646

         Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(72
)
             Total loans, net
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
20,574

(1)
Excludes loans measured at fair value.
(2)
Includes securities-backed loans and loans held-for-sale of $9.1 billion and $2.0 billion, respectively, as of September 30, 2012.
(3)
Includes securities-backed loans and loans held-for-sale of $8.9 billion and $2.5 billion, respectively, as of December 31, 2011.
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.

(dollars in millions)
September 30, 2012
 
 U.S. Commercial
 
Commercial Real Estate
 
Non-U.S. Commercial
     Risk Ratings
 
 
 
 
 
Pass rated
$
3,025

 
$
446

 
$
2,833

Reservable criticized
164

 
125

 
132

     Total Commercial Credit
$
3,189

 
$
571

 
$
2,965


(dollars in millions)
December 31, 2011
 
U.S. Commercial
 
Commercial Real Estate
 
Non-U.S. Commercial
     Risk Ratings
 
 
 
 
 
Pass rated
$
3,594

 
$
511

 
$
2,967

Reservable criticized
247

 
264

 
138

     Total Commercial Credit
$
3,841

 
$
775

 
$
3,105

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:
(dollars in millions)
 
 
 
 
For the Nine Months Ended
September 30, 2012
 
For the Nine Months Ended
September 30, 2011
Allowance for loan losses, at beginning of period
$
72

 
$
170

Provision for loan losses
(1
)
 
24

Charge-offs
(12
)
 
(108
)
Recoveries
9

 
3

Net charge-offs
(3
)
 
(105
)
Other
1

 
1

Allowance for loan losses, at end of period
$
69

 
$
90

 
 
 
 
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
 
 
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

82

Greater than five years
1

2

Total net credit default protection
100
%
100
%
 
 
 



Net Credit Default Protection by Credit Exposure Debt Rating

(dollars in millions)
 
 
 
 
 
September 30, 2012
 
December 31, 2011
Ratings(1)
Net
Notional
 
Percent
 
Net
Notional
 
Percent
AA
$
(583
)
 
22.7
%
 
$
(661
)
 
19.4
%
A
(1,195
)
 
46.4

 
(1,542
)
 
45.1

BBB
(550
)
 
21.4

 
(637
)
 
18.6

BB
(85
)
 
3.3

 
(190
)
 
5.6

B
(40
)
 
1.6

 
(190
)
 
5.6

CCC and below
(119
)
 
4.6

 
(195
)
 
5.7

Total net credit default protection
$
(2,572
)
 
100
%
 
$
(3,415
)
 
100.0
%

(1)Merrill Lynch considers ratings of BBB- or higher to meet the definition of investment grade.