Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2011

Loans and Allowance for Credit Losses [Abstract]

Composition of the loan portfolio

	September 30, 2011					December 31, 2010
			Percent					Percent
(Dollars in Millions)	Amount		of Total			Amount		of Total
Commercial
Commercial	$	47,947		23.4	%	$	42,272		21.5	%
Lease financing		5,885		2.9			6,126		3.1
Total commercial		53,832		26.3			48,398		24.6
Commercial real estate
Commercial mortgages		29,241		14.3			27,254		13.8
Construction and development		6,362		3.1			7,441		3.8
Total commercial real estate		35,603		17.4			34,695		17.6
Residential mortgages
Residential mortgages		27,495		13.4			24,315		12.3
Home equity loans, first liens		7,629		3.7			6,417		3.3
Total residential mortgages		35,124		17.1			30,732		15.6
Credit card		16,332		8.0			16,803		8.5
Other retail
Retail leasing		5,173		2.5			4,569		2.3
Home equity and second mortgages		18,410		9.0			18,940		9.6
Revolving credit		3,315		1.6			3,472		1.8
Installment		5,376		2.6			5,459		2.8
Automobile		11,453		5.6			10,897		5.5
Student		4,752		2.4			5,054		2.5
Total other retail		48,479		23.7			48,391		24.5
Total loans, excluding covered loans		189,370		92.5			179,019		90.8
Covered loans		15,398		7.5			18,042		9.2
Total loans	$	204,768		100.0	%	$	197,061		100.0	%

Carrying amount of the covered assets

	September 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	$	68	$	160	$	–	$	228	$	70	$	260	$	–	$	330
Commercial real estate loans		2,092		4,385		–		6,477		2,254		5,952		–		8,206
Residential mortgage loans		3,953		1,417		–		5,370		3,819		1,620		–		5,439
Credit card loans		–		5		–		5		–		5		–		5
Other retail loans		–		878		–		878		–		925		–		925
Losses reimbursable by the FDIC		–		–		2,440		2,440		–		–		3,137		3,137
Covered loans		6,113		6,845		2,440		15,398		6,143		8,762		3,137		18,042
Foreclosed real estate		–		–		293		293		–		–		453		453
Total covered assets	$	6,113	$	6,845	$	2,733	$	15,691	$	6,143	$	8,762	$	3,590	$	18,495

Changes in the accretable balance for purchased impaired loans

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(Dollars in Millions)	2011			2010			2011			2010
Balance at beginning of period	$	3,015		$	2,749		$	2,890		$	2,845
Purchases		–			–			100			–
Accretion		(110	)		(103	)		(337	)		(308	)
Disposals		(43	)		(2	)		(47	)		(20	)
Reclassifications (to)/from nonaccretable difference (a)		(170	)		156			117			316
Other		(7	)		(4	)		(38	)		(37	)
Balance at end of period	$	2,685		$	2,796		$	2,685		$	2,796

(a) Primarily relates to changes 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 September 30, 2011:
Balance at beginning of period	$	1,109		$	1,258		$	841		$	1,140		$	843		$	5,191		$	117	$	5,308
Add
Provision for credit losses		15			88			168			106			131			508			11		519
Deduct
Loans charged off		126			131			124			203			175			759			3		762
Less recoveries of loans charged off		(27	)		(6	)		(2	)		(25	)		(33	)		(93	)		–		(93	)
Net loans charged off		99			125			122			178			142			666			3		669
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			32		32
Balance at end of period	$	1,025		$	1,221		$	887		$	1,068		$	832		$	5,033		$	157	$	5,190
Nine months ended September 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		255			344			437			314			477			1,827			19		1,846
Deduct
Loans charged off		412			446			380			712			551			2,501			10		2,511
Less recoveries of loans charged off		(78	)		(32	)		(10	)		(71	)		(99	)		(290	)		–		(290	)
Net loans charged off		334			414			370			641			452			2,211			10		2,221
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			34		34
Balance at end of period	$	1,025		$	1,221		$	887		$	1,068		$	832		$	5,033		$	157	$	5,190

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 September 30, 2011 related to:
Loans individually evaluated for impairment (a)	$	16	$	70	$	1	$	–	$	–	$	87	$	–	$	87
TDRs collectively evaluated for impairment		37		17		459		226		55		794		–		794
Other loans collectively evaluated for impairment		972		1,132		427		842		777		4,150		26		4,176
Loans acquired with deteriorated credit quality		–		2		–		–		–		2		131		133
Total allowance for credit losses	$	1,025	$	1,221	$	887	$	1,068	$	832	$	5,033	$	157	$	5,190
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 loans greater than $5 million 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
September 30, 2011:
Loans individually evaluated for impairment (a)	$	177	$	903	$	6	$	–	$	–	$	1,086	$	182		$	1,268
TDRs collectively evaluated for impairment		241		287		2,949		580		143		4,200		89			4,289
Other loans collectively evaluated for impairment		53,402		34,237		32,160		15,752		48,336		183,887		9,014			192,901
Loans acquired with deteriorated credit quality		12		176		9		–		–		197		6,113			6,310
Total loans	$	53,832	$	35,603	$	35,124	$	16,332	$	48,479	$	189,370	$	15,398	(b)	$	204,768
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 loans greater than $5 million 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
September 30, 2011:
Commercial	$	53,189	$	219	$	42	$	382	$	53,832
Commercial real estate		34,197		158		28		1,220		35,603
Residential mortgages (a)		33,728		385		361		650		35,124
Credit card		15,648		225		209		250		16,332
Other retail		47,910		329		174		66		48,479
Total loans, excluding covered loans		184,672		1,316		814		2,568		189,370
Covered loans		13,015		581		792		1,010		15,398
Total loans	$	197,687	$	1,897	$	1,606	$	3,578	$	204,768
December 31, 2010:
Commercial	$	47,412	$	325	$	64	$	597	$	48,398
Commercial real estate		32,986		415		1		1,293		34,695
Residential mortgages (a)		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

(a)    At September 30, 2011, $507 million of loans 30 – 89 days past due and $2.5 billion of loans 90 days or more past due purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs, were classified as current, compared with $439 million and $2.6 billion at December 31, 2010, respectively.

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
September 30, 2011:
Commercial	$	50,792	$	1,174	$	1,866	$	3,040	$	53,832
Commercial real estate		30,165		1,010		4,428		5,438		35,603
Residential mortgages (b)		33,879		19		1,226		1,245		35,124
Credit card		15,873		–		459		459		16,332
Other retail		48,066		21		392		413		48,479
Total loans, excluding covered loans		178,775		2,224		8,371		10,595		189,370
Covered loans		14,472		208		718		926		15,398
Total loans	$	193,247	$	2,432	$	9,089	$	11,521	$	204,768
Total outstanding commitments	$	393,645	$	3,862	$	10,087	$	13,949	$	407,594
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 (b)		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 primarily based on delinquency status.
(b)	At September 30, 2011, $2.5 billion of GNMA loans 90 days or more past due and $1.8 billion of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs were classified with a pass rating, compared with $2.6 billion and $1.1 billion at December 31, 2010, respectively.

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 (a)		Balance		Allowance		Funds
September 30, 2011:
Commercial	$	637	$	1,596	$	65	$	27
Commercial real estate		1,679		2,986		148		33
Residential mortgages		2,588		3,018		460		–
Credit card		580		580		226		–
Other retail		179		180		56		–
Total impaired loans, excluding GNMA and covered loans		5,663		8,360		955		60
Loans purchased from GNMA mortgage pools		866		866		10		–
Covered loans		1,169		1,704		50		108
Total	$	7,698	$	10,930	$	1,015	$	168
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

(a) Substantially all loans classified as impaired at September 30, 2011 and December 31, 2010, had an associated allowance for credit losses.

	Three Months Ended				Nine Months Ended
	September 30, 2011				September 30, 2011
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(Dollars in Millions)	Investment		Recognized		Investment		Recognized
Commercial	$	536	$	4	$	529	$	7
Commercial real estate		1,558		6		1,519		10
Residential mortgages		2,573		24		2,540		74
Credit card		492		4		471		10
Other retail		165		1		160		3
Total impaired loans, excluding GNMA and covered loans		5,324		39		5,219		104
Loans purchased from GNMA mortgage pools		710		10		433		10
Covered loans		1,145		7		584		7
Total	$	7,179	$	56	$	6,236	$	121

Loans modified as TDRs

	Three Months Ended September 30, 2011							Nine Months Ended September 30, 2011
			Pre-Modification		Post-Modification					Pre-Modification		Post-Modification
			Outstanding		Outstanding					Outstanding		Outstanding
	Number		Loan		Loan			Number		Loan		Loan
(Dollars in Millions)	of Loans		Balance		Balance			of Loans		Balance		Balance
Commercial		1,137	$	89	$	74			3,984	$	337	$	310
Commercial real estate		115		124		115			380		906		896
Residential mortgages		2,857		440		462	(a)		8,613		1,328		1,383	(a)
Credit card		14,942		78		78			41,610		239		238
Other retail		956		16		16			3,020		55		55
Total loans, excluding covered loans		20,007		747		745			57,607		2,865		2,882
Covered loans		67		148		133			233		456		430
Total loans		20,074	$	895	$	878			57,840	$	3,321	$	3,312

(a) Includes accrued interest and/or outstanding advances capitalized into the outstanding loan balance upon modification under the HAMP program of $32 million and $85 million for the three and nine months ended September 30, 2011, respectively.

Loans modified as TDRs have subsequently been fully or partially charged-off

	Three Months Ended				Nine Months Ended
	September 30, 2011				September 30, 2011
	Number		Amount		Number		Amount
(Dollars in Millions)	of Loans		Defaulted		of Loans		Defaulted
Commercial		245	$	13		513	$	23
Commercial real estate		29		32		37		37
Residential mortgages		318		51		1,011		178
Credit card		2,183		12		6,304		34
Other retail		169		3		391		6
Total		2,944	$	111		8,256	$	278