Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2011

Loans and Allowance for Credit Losses [Abstract]

Composition of the loan portfolio

(Dollars in Millions)	2011		2010
Commercial
Commercial	$	50,734	$	42,272
Lease financing		5,914		6,126
Total commercial		56,648		48,398
Commercial real estate
Commercial mortgages		29,664		27,254
Construction and development		6,187		7,441
Total commercial real estate		35,851		34,695
Residential mortgages
Residential mortgages		28,669		24,315
Home equity loans, first liens		8,413		6,417
Total residential mortgages		37,082		30,732
Credit card		17,360		16,803
Other retail
Retail leasing		5,118		4,569
Home equity and second mortgages		18,131		18,940
Revolving credit		3,344		3,472
Installment		5,348		5,459
Automobile		11,508		10,897
Student		4,658		5,054
Total other retail		48,107		48,391
Total loans, excluding covered loans		195,048		179,019
Covered loans		14,787		18,042
Total loans	$	209,835	$	197,061

Changes in the accretable balance for purchased impaired loans

(Dollars in Millions)	2011			2010			2009
Balance at beginning of period	$	2,890		$	2,845		$	2,719
Purchases		100			–			356
Accretion		(451	)		(421	)		(358	)
Disposals		(67	)		(27	)		(56	)
Reclassifications (to)/from nonaccretable difference (a)		184			536			384
Other		(37	)		(43	)		(200	)
Balance at end of period	$	2,619		$	2,890		$	2,845

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

Activity in Allowance for Credit Losses

(Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans, Excluding Covered Loans			Covered Loans			Total Loans
Balance at December 31, 2009	$	1,208		$	1,001		$	672		$	1,495		$	871		$	5,247		$	17		$	5,264
Add
Provision for credit losses		723			1,135			694			1,100			681			4,333			23			4,356
Deduct
Loans charged off		918			871			554			1,270			863			4,476			20			4,496
Less recoveries of loans charged off		(91	)		(26	)		(8	)		(70	)		(118	)		(313	)		(2	)		(315	)
Net loans charged off		827			845			546			1,200			745			4,163			18			4,181
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			92			92
Balance at December 31, 2010	$	1,104		$	1,291		$	820		$	1,395		$	807		$	5,417		$	114		$	5,531
Add
Provision for credit losses		312			361			596			431			628			2,328			15			2,343
Deduct
Loans charged off		516			543			502			922			733			3,216			13			3,229
Less recoveries of loans charged off		(110	)		(45	)		(13	)		(88	)		(129	)		(385	)		(1	)		(386	)
Net loans charged off		406			498			489			834			604			2,831			12			2,843
Net change for credit losses to be reimbursed by the FDIC		–			–			–			–			–			–			(17	)		(17	)
Balance at December 31, 2011	$	1,010		$	1,154		$	927		$	992		$	831		$	4,914		$	100		$	5,014

Summary of loans by portfolio type

	Accruing
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming		Total
December 31, 2011
Commercial	$	55,991	$	300	$	45	$	312	$	56,648
Commercial real estate		34,800		138		14		899		35,851
Residential mortgages (a)		35,664		404		364		650		37,082
Credit card		16,662		238		236		224		17,360
Other retail		47,516		340		184		67		48,107
Total loans, excluding covered loans		190,633		1,420		843		2,152		195,048
Covered loans		12,589		362		910		926		14,787
Total loans	$	203,222	$	1,782	$	1,753	$	3,078	$	209,835
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 December 31, 2011, $545 million of loans 30 – 89 days past due and $2.6 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.

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

(Dollars in Millions)	Commercial		Commercial Real Estate		Residential Mortgages		Credit Card		Other Retail		Total Loans, Excluding Covered Loans		Covered Loans		Total Loans
Allowance balance at December 31, 2011 related to
Loans individually evaluated for impairment (a)	$	16	$	61	$	1	$	–	$	–	$	78	$	2	$	80
TDRs collectively evaluated for impairment		40		33		490		219		57		839		–		839
Other loans collectively evaluated for impairment		954		1,057		436		773		774		3,994		22		4,016
Loans acquired with deteriorated credit quality		–		3		–		–		–		3		76		79
Total allowance for credit losses	$	1,010	$	1,154	$	927	$	992	$	831	$	4,914	$	100	$	5,014
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.

(Dollars in Millions)	Commercial		Commercial Real Estate		Residential Mortgages		Credit Card		Other Retail		Total Loans, Excluding Covered Loans		Covered Loans(b)		Total Loans
December 31, 2011
Loans individually evaluated for impairment (a)	$	222	$	812	$	6	$	–	$	–	$	1,040	$	204	$	1,244
TDRs collectively evaluated for impairment		277		331		3,430		584		148		4,770		113		4,883
Other loans collectively evaluated for impairment		56,138		34,574		33,642		16,776		47,959		189,089		8,616		197,705
Loans acquired with deteriorated credit quality		11		134		4		–		–		149		5,854		6,003
Total loans	$	56,648	$	35,851	$	37,082	$	17,360	$	48,107	$	195,048	$	14,787	$	209,835
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	$	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.

Commercial loans by industry group and geography excluding covered loans

	December 31, 2011					December 31, 2010
(Dollars in Millions)	Loans		Percent			Loans		Percent
Industry Group
Consumer products and services	$	9,106		16.1	%	$	7,599		15.7	%
Financial services		6,439		11.4			5,785		12.0
Healthcare		4,658		8.2			3,744		7.7
Capital goods		4,306		7.6			3,696		7.7
Commercial services and supplies		4,192		7.4			3,543		7.3
Public administration		3,994		7.1			3,390		7.0
Property management and development		3,528		6.2			2,489		5.1
Consumer staples		2,879		5.1			2,438		5.0
Energy		2,324		4.1			1,788		3.7
Agriculture		2,222		3.9			2,539		5.3
Private investors		2,111		3.7			1,712		3.5
Transportation		2,015		3.6			1,926		4.0
Paper and forestry products, mining and basic materials		1,959		3.4			1,738		3.6
Information technology		1,749		3.1			1,543		3.2
Other		5,166		9.1			4,468		9.2
Total	$	56,648		100.0	%	$	48,398		100.0	%
Geography
California	$	6,664		11.8	%	$	5,588		11.5	%
Colorado		2,292		4.0			1,974		4.1
Illinois		3,110		5.5			2,457		5.1
Minnesota		3,968		7.0			3,993		8.2
Missouri		2,499		4.4			2,020		4.2
Ohio		3,050		5.4			2,464		5.1
Oregon		1,514		2.7			1,508		3.1
Washington		2,568		4.5			2,259		4.7
Wisconsin		2,357		4.2			2,144		4.4
Iowa, Kansas, Nebraska, North Dakota, South Dakota		3,586		6.3			3,465		7.2
Arkansas, Indiana, Kentucky, Tennessee		3,246		5.7			2,798		5.8
Idaho, Montana, Wyoming		1,113		2.0			1,069		2.2
Arizona, Nevada, New Mexico, Utah		2,351		4.1			1,741		3.6
Total banking region		38,318		67.6			33,480		69.2
Outside the Company’s banking region
Florida, Michigan, New York, Pennsylvania, Texas		9,204		16.3			7,608		15.7
All other states		9,126		16.1			7,310		15.1
Total outside the Company’s banking region		18,330		32.4			14,918		30.8
Total	$	56,648		100.0	%	$	48,398		100.0	%

Additional detail of impaired loans by portfolio type

(Dollars in Millions)	Period-end Recorded Investment (a)		Unpaid Principal Balance		Valuation Allowance		Commitments to Lend Additional Funds
December 31, 2011
Commercial	$	657	$	1,437	$	62	$	68
Commercial real estate		1,436		2,503		124		25
Residential mortgages		2,652		3,193		482		2
Credit card		584		584		219		–
Other retail		188		197		57		–
Total impaired loans, excluding GNMA and covered loans		5,517		7,914		944		95
Loans purchased from GNMA mortgage pools		1,265		1,265		18		–
Covered loans		1,170		1,642		43		49
Total	$	7,952	$	10,821	$	1,005	$	144
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 December 31, 2011 and 2010, had an associated allowance for credit losses. The total amount of interest income recognized during 2011 on loans classified as impaired at December 31, 2011, excluding those acquired with deteriorated credit quality, was $358 million, compared to what would have been recognized at the original contractual terms of the loans of $523 million.

(Dollars in Millions)	Average Recorded Investment		Interest Income Recognized
2011
Commercial	$	534	$	12
Commercial real estate		1,537		18
Residential mortgages		2,557		100
Credit card		485		15
Other retail		164		5
Total impaired loans, excluding GNMA and covered loans		5,277		150
Loans purchased from GNMA mortgage pools		710		25
Covered loans		780		11
Total	$	6,767	$	186
2010
Commercial	$	693	$	8
Commercial real estate		1,601		2
Residential mortgages		2,297		72
Credit card		418		11
Other retail		150		6
Total	$	5,159	$	99

Commercial Real Estate by Property Type and Geography, Excluding Covered Loans

	December 31, 2011					December 31, 2010
(Dollars in Millions)	Loans		Percent			Loans		Percent
Property Type
Business owner occupied	$	11,756		32.8	%	$	11,416		32.9	%
Commercial property
Industrial		1,561		4.4			1,530		4.4
Office		4,590		12.8			3,783		10.9
Retail		4,402		12.3			4,288		12.4
Other commercial		3,632		10.1			3,551		10.2
Homebuilders
Condominiums		283		.8			463		1.3
Other residential		988		2.8			1,144		3.3
Multi-family		6,293		17.5			6,130		17.7
Hotel/motel		2,041		5.7			2,134		6.2
Health care facilities		305		.8			256		.7
Total	$	35,851		100.0	%	$	34,695		100.0	%
Geography
California	$	7,634		21.3	%	$	7,515		21.6	%
Colorado		1,569		4.4			1,524		4.4
Illinois		1,411		3.9			1,248		3.6
Minnesota		1,891		5.3			1,805		5.2
Missouri		1,599		4.4			1,558		4.5
Ohio		1,436		4.0			1,402		4.0
Oregon		1,961		5.5			1,809		5.2
Washington		3,540		9.9			3,488		10.1
Wisconsin		1,892		5.3			1,724		5.0
Iowa, Kansas, Nebraska, North Dakota, South Dakota		2,295		6.4			2,205		6.4
Arkansas, Indiana, Kentucky, Tennessee		1,736		4.8			1,634		4.7
Idaho, Montana, Wyoming		1,183		3.3			1,185		3.4
Arizona, Nevada, New Mexico, Utah		3,189		8.9			2,938		8.5
Total banking region		31,336		87.4			30,035		86.6
Outside the Company’s banking region
Florida, Michigan, New York, Pennsylvania, Texas		2,470		6.9			2,711		7.8
All other states		2,045		5.7			1,949		5.6
Total outside Company’s banking region		4,515		12.6			4,660		13.4
Total	$	35,851		100.0	%	$	34,695		100.0	%

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

(Dollars in Millions)	Number of Loans		Amount Defaulted
Commercial		665	$	26
Commercial real estate		64		67
Residential mortgages		623		127
Credit card		8,046		43
Other retail		529		8
Total loans, excluding GNMA and covered loans		9,927		271
Loans purchased from GNMA mortgage pools		857		124
Covered loans		11		26
Total loans		10,795	$	421

Carrying amount of the covered assets

	2011								2010
(Dollars in Millions)	Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total		Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total
Commercial loans	$	68	$	137	$	–	$	205	$	70	$	260	$	–	$	330
Commercial real estate loans		1,956		4,037		–		5,993		2,254		5,952		–		8,206
Residential mortgage loans		3,830		1,360		–		5,190		3,819		1,620		–		5,439
Credit card loans		–		6		–		6		–		5		–		5
Other retail loans		–		867		–		867		–		925		–		925
Losses reimbursable by the FDIC		–		–		2,526		2,526		–		–		3,137		3,137
Covered loans		5,854		6,407		2,526		14,787		6,143		8,762		3,137		18,042
Foreclosed real estate		–		–		274		274		–		–		453		453
Total covered assets	$	5,854	$	6,407	$	2,800	$	15,061	$	6,143	$	8,762	$	3,590	$	18,495

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

			Criticized
(Dollars in Millions)	Pass		Special Mention		Classified (a)		Total Criticized		Total
December 31, 2011
Commercial	$	54,003	$	1,047	$	1,598	$	2,645	$	56,648
Commercial real estate		30,733		793		4,325		5,118		35,851
Residential mortgages (b)		35,814		19		1,249		1,268		37,082
Credit card		16,910		–		450		450		17,360
Other retail		47,665		24		418		442		48,107
Total loans, excluding covered loans		185,125		1,883		8,040		9,923		195,048
Covered loans		13,966		187		634		821		14,787
Total loans	$	199,091	$	2,070	$	8,674	$	10,744	$	209,835
Total outstanding commitments	$	410,457	$	3,418	$	9,690	$	13,108	$	423,565
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 December 31, 2011, $2.6 billion of GNMA loans 90 days or more past due and $2.0 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.

Loans modified as TDRs

(Dollars in Millions)	Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance
Commercial		5,285	$	456	$	427
Commercial real estate		506		1,078		1,060
Residential mortgages		3,611		708		704	(a)
Credit card		55,951		322		321
Other retail		4,028		73		72	(b)
Total loans, excluding GNMA and covered loans		69,381		2,637		2,584
Loans purchased from GNMA mortgage pools		9,569		1,277		1,356	(c)(d)
Covered loans		283		604		575
Total loans		79,233	$	4,518	$	4,515

(a) Residential mortgage and home equity and second mortgage TDRs include trial period arrangements offered to customers during the period and the post-modification balances for these loans reflect the current outstanding balance until a permanent modification is made. At December 31, 2011, 451 loans with outstanding balances of $75 million were in a trial period and have an estimated post-modification balance of $88 million assuming permanent modification occurs at the end of the trial period.

(b) At December 31, 2011, 53 home equity and second mortgage loans with outstanding balances of $3 million were in a trial period and have an estimated post-modification balance of $5 million assuming permanent modification occurs at the end of the trial period.

(c) At December 31, 2011, 1,591 loans with outstanding balances of $207 million were in a trial period and have an estimated post-modification balance of $232 million assuming permanent modification occurs at the end of the trial period.

(d) Post-modification balances typically include capitalization of unpaid accrued interest and/or fees under the various modification programs.

Summary of Nonperforming Assets

At December 31 (Dollars in Millions)	2011			2010			2009			2008			2007
Commercial
Commercial	$	280		$	519		$	866		$	290		$	128
Lease financing		32			78			125			102			53
Total commercial		312			597			991			392			181
Commercial Real Estate
Commercial mortgages		354			545			581			294			84
Construction and development		545			748			1,192			780			209
Total commercial real estate		899			1,293			1,773			1,074			293
Residential Mortgages (b)		650			636			467			210			54
Credit Card		224			228			142			67			14
Other Retail
Retail leasing		—			—			—			—			—
Other		67			65			62			25			15
Total other retail		67			65			62			25			15
Total nonperforming loans, excluding covered loans		2,152			2,819			3,435			1,768			557
Covered Loans		926			1,244			1,350			369			—
Total nonperforming loans		3,078			4,063			4,785			2,137			557
Other Real Estate (c)(d)		404			511			437			190			111
Covered Other Real Estate (d)		274			453			653			274			—
Other Assets		18			21			32			23			22
Total nonperforming assets	$	3,774		$	5,048		$	5,907		$	2,624		$	690
Total nonperforming assets, excluding covered assets	$	2,574		$	3,351		$	3,904		$	1,981		$	690
Excluding covered assets:
Accruing loans 90 days or more past due (b)	$	843		$	1,094		$	1,525		$	967		$	584
Nonperforming loans to total loans		1.10	%		1.57	%		1.99	%		1.02	%		.36	%
Nonperforming assets to total loans plus other real estate (c)		1.32	%		1.87	%		2.25	%		1.14	%		.45	%
Including covered assets:
Accruing loans 90 days or more past due (b)	$	1,753		$	2,184		$	2,309		$	1,554		$	584
Nonperforming loans to total loans		1.47	%		2.06	%		2.46	%		1.16	%		.36	%
Nonperforming assets to total loans plus other real estate (c)		1.79	%		2.55	%		3.02	%		1.42	%		.45	%
Changes in Nonperforming Assets
(Dollars in Millions)	Commercial and Commercial Real Estate			Credit Card, Other Retail and Residential Mortgages (f)			Covered Assets			Total
Balance December 31, 2010	$	2,204		$	1,147		$	1,697		$	5,048
Additions to nonperforming assets
New nonaccrual loans and foreclosed properties		1,514			750			626			2,890
Advances on loans		68			—			5			73
Total additions		1,582			750			631			2,963
Reductions in nonperforming assets
Paydowns, payoffs		(677	)		(332	)		(453	)		(1,462	)
Net sales		(463	)		(70	)		(385	)		(918	)
Return to performing status		(246	)		(91	)		(291	)		(628	)
Net charge-offs (e)		(925	)		(305	)		1			(1,229	)
Total reductions		(2,311	)		(798	)		(1,128	)		(4,237	)
Net additions to (reductions in) nonperforming assets		(729	)		(48	)		(497	)		(1,274	)
Balance December 31, 2011	$	1,475		$	1,099		$	1,200		$	3,774

(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due.

(b) Excludes $2.6 billion, $2.6 billion, $2.2 billion, $1.1 billion and $.6 billion at December 31, 2011, 2010, 2009, 2008 and 2007, respectively, of loans purchased from GNMA mortgage pools that are 90 days or more past due that continue to accrue interest, as their repayments are primarily insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

(c) Foreclosured GNMA loans of $692 million, $575 million, $359 million, $209 million and $102 million at December 31, 2011, 2010, 2009, 2008 and 2007, respectively, continue to accrue interest and are recorded as other assets and excluded from nonperforming assets because they are insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs.

(d) Includes equity investments in entities whose principal assets are other real estate owned.

(e) Charge-offs exclude actions for certain card products and loan sales that were not classified as nonperforming at the time the charge-off occurred.

(f) Residential mortgage information excludes changes related to residential mortgages serviced by others.