NOTE 14 – BUSINESS SEGMENT INFORMATION

The Corporation has strategically aligned its operations into three major business segments: the Business Bank, the Retail Bank, and Wealth Management. These business segments are differentiated based on the type of customer and the related products and services provided. In addition to the three major business segments, the Finance Division is also reported as a segment. Business segment results are produced by the Corporation's internal management accounting system. This system measures financial results based on the internal business unit structure of the Corporation. Information presented is not necessarily comparable with similar information for any other financial institution. The management accounting system assigns balance sheet and income statement items to each business segment using certain methodologies, which are regularly reviewed and refined. For comparability purposes, amounts in all periods are based on business segments and methodologies in effect at June 30, 2011. These methodologies may be modified as the management accounting system is enhanced and changes occur in the organizational structure and/or product lines.

For a description of the business activities of each business segment and further information on the methodologies, which form the basis for these results, refer to Note 23 to the consolidated financial statements in the Corporation's 2010 Annual Report.

Business segment financial results for the six months ended June 30, 2011 and 2010 are shown in the following table.


(dollar amounts in millions) Six Months Ended June 30, 2011	Business Bank			Retail Bank			Wealth Management			Finance			Other			Total
Earnings summary:
Net interest income (expense) (FTE)	$	682		$	282		$	92		$	(283	)	$	15		$	788
Provision for loan losses		24			47			23			—			2			96
Noninterest income		156			87			128			27			11			409
Noninterest expenses		316			325			155			6			22			824
Provision (benefit) for income taxes (FTE)		155			2			16			(98	)		3			78

Net income (loss)	$	343		$	(5	)	$	26		$	(164	)	$	(1	)	$	199

Net credit-related charge-offs	$	126		$	46		$	19		$	—		$	—		$	191

Selected average balances:
Assets	$	29,991		$	5,505		$	4,769		$	9,360		$	4,523		$	54,148
Loans		29,493			5,053			4,774			35			6			39,361
Deposits		20,241			17,549			2,889			244			118			41,041

Statistical data:
Return on average assets (a)		2.29	%		(0.06	)%		1.08	%		N/M			N/M			0.73	%
Net interest margin (b)		4.65			3.24			3.91			N/M			N/M			3.19
Efficiency ratio		37.78			87.81			72.87			N/M			N/M			69.19

Six Months Ended June 30, 2010	Business Bank			Retail Bank			Wealth Management			Finance			Other			Total
Earnings summary:
Net interest income (expense) (FTE)	$	692		$	265		$	87		$	(209	)	$	5		$	840
Provision for loan losses		219			52			31			—			(1	)		301
Noninterest income		152			86			122			26			2			388
Noninterest expenses		319			314			153			4			11			801
Provision (benefit) for income taxes (FTE)		83			(5	)		9			(71	)		5			21
Income from discontinued operations, net of tax		—			—			—			—			17			17

Net income (loss)	$	223		$	(10	)	$	16		$	(116	)	$	9		$	122

Net credit-related charge-offs	$	251		$	47		$	21		$	—		$	—		$	319

Selected average balances:
Assets	$	30,949		$	6,021		$	4,883		$	9,379		$	5,653		$	56,885
Loans		30,633			5,522			4,815			23			(3	)		40,990
Deposits		18,413			16,825			2,858			934			95			39,125

Statistical data:
Return on average assets (a)		1.44	%		(0.11	)%		0.67	%		N/M			N/M			0.43	%
Net interest margin (b)		4.55			3.17			3.64			N/M			N/M			3.23
Efficiency ratio		37.84			88.79			75.39			N/M			N/M			65.45

(a)	Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.

(b)	Net interest margin is calculated based on the greater of average earning assets or average deposits and purchased funds.

FTE - Fully Taxable Equivalent

N/M - Not Meaningful

The Corporation's management accounting system also produces market segment results for the Corporation's four primary geographic markets: Midwest, Western, Texas and Florida. In addition to the four primary geographic markets, Other Markets and International are also reported as market segments. Market segment results are provided as supplemental information to the business segment results and may not meet all operating segment criteria as set forth in ASC Topic 280, Segment Reporting. For comparability purposes, amounts in all periods are based on market segments and methodologies in effect at June 30, 2011.

The Midwest market consists of operations located in the states of Michigan, Ohio and Illinois. Currently, Michigan operations represent the significant majority of the Midwest market.

The Western market consists of the states of California, Arizona, Nevada, Colorado and Washington. Currently, California operations represent the significant majority of the Western market.

The Texas and Florida markets consist of operations located in the states of Texas and Florida, respectively.

Other Markets include businesses with a national perspective, the Corporation's investment management and trust alliance businesses as well as activities in all other markets in which the Corporation has operations, except for the International market, as described below.

The International market represents the activity of the Corporation's international finance division, which provides banking services primarily to foreign-owned, North American-based companies and secondarily to international operations of North American-based companies.

The Finance & Other Businesses segment includes the Corporation's securities portfolio, asset and liability management activities, discontinued operations, the income and expense impact of equity and cash not assigned to specific business/market segments, tax benefits not assigned to specific business/market segments and miscellaneous other expenses of a corporate nature. This segment includes responsibility for managing the Corporation's funding, liquidity and capital needs, performing interest sensitivity analysis and executing various strategies to manage the Corporation's exposure to liquidity, interest rate risk and foreign exchange risk.

Market segment financial results for the six months ended June 30, 2011 and 2010 are shown in the following table.


(dollar amounts in millions) Six Months Ended June 30, 2011	Midwest			Western			Texas			Florida			Other Markets			International			Finance & Other Businesses			Total
Earnings summary:
Net interest income (expense) (FTE)	$	407		$	330		$	176		$	23		$	82		$	38		$	(268	)	$	788
Provision for loan losses		49			31			2			19			(2	)		(5	)		2			96
Noninterest income		200			74			48			7			24			18			38			409
Noninterest expenses		371			217			124			24			41			19			28			824
Provision (benefit) for income taxes (FTE)		72			55			36			(4	)		(1	)		15			(95	)		78

Net income (loss)	$	115		$	101		$	62		$	(9	)	$	68		$	27		$	(165	)	$	199

Net credit-related charge-offs	$	81		$	52		$	12		$	23		$	21		$	2		$	—		$	191

Selected average balances:
Assets	$	14,287		$	12,459		$	7,056		$	1,543		$	3,171		$	1,749		$	13,883		$	54,148
Loans		14,077			12,250			6,848			1,573			2,891			1,681			41			39,361
Deposits		18,273			12,347			5,982			382			2,375			1,320			362			41,041

Statistical data:
Return on average assets (a)		1.18	%		1.51	%		1.75	%		(1.11	)%		4.31	%		3.06	%		N/M			0.73	%
Net interest margin (b)		4.48			5.39			5.18			2.98			5.81			4.37			N/M			3.19
Efficiency ratio		61.14			53.77			55.27			78.79			41.42			33.87			N/M			69.19

Six Months Ended June 30, 2010	Midwest			Western			Texas			Florida			Other Markets			International			Finance & Other Businesses			Total
Earnings summary:
Net interest income (expense) (FTE)	$	415		$	325		$	160		$	21		$	86		$	37		$	(204	)	$	840
Provision for loan losses		114			86			16			19			75			(8	)		(1	)		301
Noninterest income		198			69			43			7			25			18			28			388
Noninterest expenses		366			215			125			21			43			16			15			801
Provision (benefit) for income taxes (FTE)		47			32			22			(4	)		(26	)		16			(66	)		21
Income from discontinued operations, net of tax		—			—			—			—			—			—			17			17

Net income (loss)	$	86		$	61		$	40		$	(8	)	$	19		$	31		$	(107	)	$	122

Net credit-related charge-offs	$	98		$	112		$	33		$	17		$	54		$	5		$	—		$	319

Selected average balances:
Assets	$	14,915		$	13,090		$	6,771		$	1,576		$	3,859		$	1,642		$	15,032		$	56,885
Loans		14,777			12,886			6,565			1,575			3,578			1,589			20			40,990
Deposits		17,526			11,939			5,137			382			2,099			1,013			1,029			39,125

Statistical data:
Return on average assets (a)		0.92	%		0.90	%		1.18	%		(1.00	)%		1.03	%		3.70	%		N/M			0.43	%
Net interest margin (b)		4.75			5.08			4.92			2.74			4.88			4.63			N/M			3.23
Efficiency ratio		59.37			54.74			61.44			74.63			40.96			29.81			N/M			65.45

(a)	Return on average assets is calculated based on the greater of average assets or average liabilities and attributed equity.

(b)	Net interest margin is calculated based on the greater of average earning assets or average deposits and purchased funds.

FTE - Fully Taxable Equivalent

N/M - Not Meaningful