Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2011

Loans and Allowance for Credit Losses [Abstract]

Composition of the loan portfolio

	June 30, 2011					December 31, 2010
			Percent					Percent
(Dollars in Millions)	Amount		of Total			Amount		of Total
Commercial
Commercial	$	44,658		22.4	%	$	42,272		21.5	%
Lease financing		5,892		2.9			6,126		3.1
Total commercial		50,550		25.3			48,398		24.6
Commercial real estate
Commercial mortgages		28,643		14.3			27,254		13.8
Construction and development		6,847		3.4			7,441		3.8
Total commercial real estate		35,490		17.7			34,695		17.6
Residential mortgages
Residential mortgages		26,261		13.2			24,315		12.3
Home equity loans, first liens		6,849		3.4			6,417		3.3
Total residential mortgages		33,110		16.6			30,732		15.6
Retail
Credit card		16,111		8.1			16,803		8.5
Retail leasing		4,973		2.5			4,569		2.3
Home equity and second mortgages		18,597		9.3			18,940		9.6
Other retail
Revolving credit		3,324		1.6			3,472		1.8
Installment		5,350		2.7			5,459		2.8
Automobile		11,143		5.6			10,897		5.5
Student		4,833		2.4			5,054		2.5
Total other retail		24,650		12.3			24,882		12.6
Total retail		64,331		32.2			65,194		33.0
Total loans, excluding covered loans		183,481		91.8			179,019		90.8
Covered loans		16,401		8.2			18,042		9.2
Total loans	$	199,882		100.0	%	$	197,061		100.0	%

Carrying amount of the covered assets

	June 30, 2011								December 31, 2010
	Purchased		Purchased						Purchased		Purchased
	impaired		nonimpaired		Other				impaired		nonimpaired		Other
(Dollars in Millions)	loans		loans		assets		Total		loans		loans		assets		Total
Commercial loans	$	70	$	195	$	–	$	265	$	70	$	260	$	–	$	330
Commercial real estate loans		2,185		4,966		–		7,151		2,254		5,952		–		8,206
Residential mortgage loans		3,821		1,475		–		5,296		3,819		1,620		–		5,439
Retail loans		–		899		–		899		–		930		–		930
Losses reimbursable by the FDIC		–		–		2,790		2,790		–		–		3,137		3,137
Covered loans		6,076		7,535		2,790		16,401		6,143		8,762		3,137		18,042
Foreclosed real estate		–		–		348		348		–		–		453		453
Total covered assets	$	6,076	$	7,535	$	3,138	$	16,749	$	6,143	$	8,762	$	3,590	$	18,495

Changes in the accretable balance for purchased impaired loans

	Three Months Ended						Six Months Ended
	June 30,						June 30,
(Dollars in Millions)	2011			2010			2011			2010
Balance at beginning of period	$	2,801		$	2,825		$	2,890		$	2,845
Purchases		–			–			100			–
Accretion		(115	)		(104	)		(227	)		(205	)
Disposals		(2	)		(11	)		(4	)		(18	)
Reclassifications (to)/from nonaccretable difference (a)		335			68			287			160
Other		(4	)		(29	)		(31	)		(33	)
Balance at end of period	$	3,015		$	2,749		$	3,015		$	2,749

(a) Primarily relates to improvements in expected credit performance and changes in variable rates.

Activity in Allowance for Credit Losses

																Total Loans,
				Commercial			Residential			Credit			Other			Excluding			Covered			Total
(Dollars in Millions)	Commercial			Real Estate			Mortgages			Card			Retail			Covered Loans			Loans			Loans
Three months ended June 30, 2011:
Balance at beginning of period	$	1,139		$	1,275		$	819		$	1,276		$	854		$	5,363		$	135		$	5,498
Add
Provision for credit losses		66			147			141			80			136			570			2			572
Deduct
Loans charged off		125			175			123			241			181			845			5			850
Less recoveries of loans charged off		(29	)		(11	)		(4	)		(25	)		(34	)		(103	)		–			(103	)
Net loans charged off		96			164			119			216			147			742			5			747
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			(15	)		(15	)
Balance at end of period	$	1,109		$	1,258		$	841		$	1,140		$	843		$	5,191		$	117		$	5,308
Six months ended June 30, 2011:
Balance at beginning of period	$	1,104		$	1,291		$	820		$	1,395		$	807		$	5,417		$	114		$	5,531
Add
Provision for credit losses		240			256			269			208			346			1,319			8			1,327
Deduct
Loans charged off		286			315			256			509			376			1,742			7			1,749
Less recoveries of loans charged off		(51	)		(26	)		(8	)		(46	)		(66	)		(197	)		–			(197	)
Net loans charged off		235			289			248			463			310			1,545			7			1,552
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			2			2
Balance at end of period	$	1,109		$	1,258		$	841		$	1,140		$	843		$	5,191		$	117		$	5,308

Additional detail of the allowance for credit losses and related loan balances, by portfolio type

											Total Loans,
			Commercial		Residential		Credit		Other		Excluding		Covered		Total
(Dollars in Millions)	Commercial		Real Estate		Mortgages		Card		Retail		Covered Loans		Loans		Loans
Allowance balance at June 30, 2011 related to:
Loans individually evaluated for impairment (a)	$	13	$	68	$	–	$	–	$	–	$	81	$	–	$	81
TDRs collectively evaluated for impairment		30		–		341		218		49		638		–		638
Other loans collectively evaluated for impairment		1,066		1,188		500		922		794		4,470		24		4,494
Loans acquired with deteriorated credit quality		–		2		–		–		–		2		93		95
Total allowance for credit losses	$	1,109	$	1,258	$	841	$	1,140	$	843	$	5,191	$	117	$	5,308
Allowance balance at December 31, 2010 related to:
Loans individually evaluated for impairment (a)	$	38	$	55	$	–	$	–	$	–	$	93	$	–	$	93
TDRs collectively evaluated for impairment		–		–		320		223		30		573		–		573
Other loans collectively evaluated for impairment		1,066		1,235		500		1,172		777		4,750		28		4,778
Loans acquired with deteriorated credit quality		–		1		–		–		–		1		86		87
Total allowance for credit losses	$	1,104	$	1,291	$	820	$	1,395	$	807	$	5,417	$	114	$	5,531

(a) Represents the allowance for credit losses related to commercial and commercial real estate loans that are greater than $5 million and are classified as nonperforming or TDRs.

											Total Loans,
			Commercial		Residential		Credit		Other		Excluding		Covered			Total
(Dollars in Millions)	Commercial		Real Estate		Mortgages		Card		Retail		Covered Loans		Loans			Loans
June 30, 2011:
Loans individually evaluated for impairment (a)	$	140	$	931	$	–	$	–	$	–	$	1,071	$	–		$	1,071
TDRs collectively evaluated for impairment		61		–		2,100		468		122		2,751		–			2,751
Other loans collectively evaluated for impairment		50,334		34,325		30,998		15,643		48,098		179,398		10,325			189,723
Loans acquired with deteriorated credit quality		15		234		12		–		–		261		6,076			6,337
Total loans	$	50,550	$	35,490	$	33,110	$	16,111	$	48,220	$	183,481	$	16,401	(b)	$	199,882
December 31, 2010:
Loans individually evaluated for impairment (a)	$	295	$	801	$	–	$	–	$	–	$	1,096	$	–		$	1,096
TDRs collectively evaluated for impairment		–		–		1,957		452		114		2,523		–			2,523
Other loans collectively evaluated for impairment		48,103		33,834		28,775		16,351		48,277		175,340		11,899			187,239
Loans acquired with deteriorated credit quality		–		60		–		–		–		60		6,143			6,203
Total loans	$	48,398	$	34,695	$	30,732	$	16,803	$	48,391	$	179,019	$	18,042	(b)	$	197,061

(a)	Represents commercial and commercial real estate loans that are greater than $5 million and are classified as nonperforming or TDRs.
(b)	Includes expected reimbursements from the FDIC under loss sharing agreements.

Summary of loans by portfolio type

	Accruing
			30-89 Days		90 Days or
(Dollars in Millions)	Current		Past Due		More Past Due		Nonperforming		Total
June 30, 2011:
Commercial	$	49,851	$	264	$	43	$	392	$	50,550
Commercial real estate		33,965		159		2		1,364		35,490
Residential mortgages		31,696		368		375		671		33,110
Credit card		15,426		216		213		256		16,111
Other retail		47,667		309		171		73		48,220
Total loans, excluding covered loans		178,605		1,316		804		2,756		183,481
Covered loans		13,842		590		928		1,041		16,401
Total loans	$	192,447	$	1,906	$	1,732	$	3,797	$	199,882
December 31, 2010:
Commercial	$	47,412	$	325	$	64	$	597	$	48,398
Commercial real estate		32,986		415		1		1,293		34,695
Residential mortgages		29,140		456		500		636		30,732
Credit card		15,993		269		313		228		16,803
Other retail		47,706		404		216		65		48,391
Total loans, excluding covered loans		173,237		1,869		1,094		2,819		179,019
Covered loans		14,951		757		1,090		1,244		18,042
Total loans	$	188,188	$	2,626	$	2,184	$	4,063	$	197,061

Summary of loans by portfolio type and the Company's internal credit quality rating

			Criticized
			Special				Total
(Dollars in Millions)	Pass		Mention		Classified (a)		Criticized		Total
June 30, 2011:
Commercial	$	47,140	$	1,312	$	2,098	$	3,410	$	50,550
Commercial real estate		29,602		1,267		4,621		5,888		35,490
Residential mortgages		31,820		28		1,262		1,290		33,110
Credit card		15,642		–		469		469		16,111
Other retail		47,777		47		396		443		48,220
Total loans, excluding covered loans		171,981		2,654		8,846		11,500		183,481
Covered loans		15,388		204		809		1,013		16,401
Total loans	$	187,369	$	2,858	$	9,655	$	12,513	$	199,882
Total outstanding commitments	$	382,717	$	4,409	$	10,720	$	15,129	$	397,846
December 31, 2010:
Commercial	$	44,595	$	1,545	$	2,258	$	3,803	$	48,398
Commercial real estate		28,155		1,540		5,000		6,540		34,695
Residential mortgages		29,355		29		1,348		1,377		30,732
Credit card		16,262		–		541		541		16,803
Other retail		47,906		70		415		485		48,391
Total loans, excluding covered loans		166,273		3,184		9,562		12,746		179,019
Covered loans		17,073		283		686		969		18,042
Total loans	$	183,346	$	3,467	$	10,248	$	13,715	$	197,061
Total outstanding commitments	$	370,031	$	4,923	$	11,576	$	16,499	$	386,530

(a) Classified rating on consumer loans based on delinguency status.

Additional detail of impaired loans by portfolio type, excluding covered loans

							Commitments
	Period-end		Unpaid				to Lend
	Recorded		Principal		Valuation		Additional
(Dollars in Millions)	Investment		Balance		Allowance		Funds
June 30, 2011:
Commercial	$	414	$	1,488	$	68	$	12
Commercial real estate		1,589		3,227		122		26
Residential mortgages		2,610		3,065		351		6
Credit card		468		468		218		–
Other retail		164		202		50		–
Total	$	5,245	$	8,450	$	809	$	44
December 31, 2010:
Commercial	$	596	$	1,631	$	59	$	80
Commercial real estate		1,308		2,659		118		17
Residential mortgages		2,440		2,877		334		–
Credit card		452		452		218		–
Other retail		152		189		32		–
Total	$	4,948	$	7,808	$	761	$	97

	Three Months Ended				Six Months Ended
	June 30, 2011				June 30, 2011
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(Dollars in Millions)	Investment		Recognized		Investment		Recognized
Commercial	$	503	$	2	$	525	$	3
Commercial real estate		1,517		2		1,499		4
Residential mortgages		2,541		25		2,524		50
Credit card		462		3		461		6
Other retail		159		1		158		2
Total	$	5,182	$	33	$	5,167	$	65