Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2012

Loans and Allowance for Credit Losses [Abstract]

Composition of the loan portfolio

	June 30, 2012					December 31, 2011
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	55,848		25.9	%	$	50,734		24.2	%
Lease financing		5,686		2.6			5,914		2.8
Total commercial		61,534		28.5			56,648		27.0
Commercial real estate
Commercial mortgages		30,730		14.2			29,664		14.1
Construction and development		5,827		2.7			6,187		3.0
Total commercial real estate		36,557		16.9			35,851		17.1
Residential mortgages
Residential mortgages		30,463		14.1			28,669		13.7
Home equity loans, first liens		9,457		4.4			8,413		4.0
Total residential mortgages		39,920		18.5			37,082		17.7
Credit card		16,905		7.8			17,360		8.3
Other retail
Retail leasing		5,192		2.4			5,118		2.4
Home equity and second mortgages		17,476		8.1			18,131		8.6
Revolving credit		3,298		1.5			3,344		1.6
Installment		5,437		2.5			5,348		2.6
Automobile		12,103		5.6			11,508		5.5
Student		4,529		2.1			4,658		2.2
Total other retail		48,035		22.2			48,107		22.9
Total loans, excluding covered loans		202,951		93.9			195,048		93.0
Covered loans		13,137		6.1			14,787		7.0
Total loans	$	216,088		100.0	%	$	209,835		100.0	%

Changes in the accretable balance for purchased impaired loans

	Three Months Ended June 30,						Six Months Ended June 30,
(Dollars in Millions)	2012			2011			2012			2011
Balance at beginning of period	$	2,605		$	2,801		$	2,619		$	2,890
Purchases		—			—			13			100
Accretion		(113	)		(115	)		(228	)		(227	)
Disposals		(56	)		(2	)		(98	)		(4	)
Reclassifications (to)/from nonaccretable difference (a)		1			335			133			287
Other		(6	)		(4	)		(8	)		(31	)
Balance at end of period	$	2,431		$	3,015		$	2,431		$	3,015

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

Activity in Allowance for Credit Losses

Three Months Ended June 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans, Excluding Covered Loans			Covered Loans			Total Loans
2012
Balance at beginning of period	$	1,029		$	1,037		$	927		$	1,001		$	823		$	4,817		$	102		$	4,919
Add
Provision for credit losses		79			(43	)		121			165			122			444			26			470
Deduct
Loans charged off		93			76			114			198			149			630			1			631
Less recoveries of loans charged off		(22	)		(23	)		(5	)		(28	)		(32	)		(110	)		(1	)		(111	)
Net loans charged off		71			53			109			170			117			520			—			520
Net change for credit losses to be reimbursed by the FDIC		—			—			—			—			—			—			(5	)		(5	)
Balance at end of period	$	1,037		$	941		$	939		$	996		$	828		$	4,741		$	123		$	4,864
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 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans, Excluding Covered Loans			Covered Loans			Total Loans
2012
Balance at beginning of period	$	1,010		$	1,154		$	927		$	992		$	831		$	4,914		$	100		$	5,014
Add
Provision for credit losses		184			(89	)		233			343			246			917			34			951
Deduct
Loans charged off		206			159			230			399			316			1,310			2			1,312
Less recoveries of loans charged off		(49	)		(35	)		(9	)		(60	)		(67	)		(220	)		(1	)		(221	)
Net loans charged off		157			124			221			339			249			1,090			1			1,091
Net change for credit losses to be reimbursed by the FDIC		—			—			—			—			—			—			(10	)		(10	)
Balance at end of period	$	1,037		$	941		$	939		$	996		$	828		$	4,741		$	123		$	4,864
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

(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 June 30, 2012 related to
Loans individually evaluated for impairment (a)	$	17	$	42	$	—	$	—	$	—	$	59	$	—	$	59
TDRs collectively evaluated for impairment		36		32		477		196		57		798		1		799
Other loans collectively evaluated for impairment		984		862		462		800		771		3,879		21		3,900
Loans acquired with deteriorated credit quality		—		5		—		—		—		5		101		106
Total allowance for credit losses	$	1,037	$	941	$	939	$	996	$	828	$	4,741	$	123	$	4,864
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

(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
June 30, 2012
Loans individually evaluated for impairment (a)	$	168	$	665	$	6	$	—	$	—	$	839	$	134	$	973
TDRs collectively evaluated for impairment		201		385		3,542		526		153		4,807		113		4,920
Other loans collectively evaluated for impairment		61,160		35,376		36,365		16,379		47,882		197,162		7,749		204,911
Loans acquired with deteriorated credit quality		5		131		7		—		—		143		5,141		5,284
Total loans	$	61,534	$	36,557	$	39,920	$	16,905	$	48,035	$	202,951	$	13,137	$	216,088
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

(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
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming		Total
June 30, 2012
Commercial	$	61,107	$	192	$	40	$	195	$	61,534
Commercial real estate		35,769		86		12		690		36,557
Residential mortgages (a)		38,597		342		321		660		39,920
Credit card		16,315		203		198		189		16,905
Other retail		47,500		261		92		182		48,035
Total loans, excluding covered loans		199,288		1,084		663		1,916		202,951
Covered loans		11,681		234		652		570		13,137
Total loans	$	210,969	$	1,318	$	1,315	$	2,486	$	216,088
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

(a) At June 30, 2012, $427 million of loans 30 – 89 days past due and $2.9 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 $545 million and $2.6 billion at December 31, 2011, respectively.

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
June 30, 2012
Commercial	$	59,131	$	1,142	$	1,261	$	2,403	$	61,534
Commercial real estate		32,587		756		3,214		3,970		36,557
Residential mortgages (b)		38,725		20		1,175		1,195		39,920
Credit card		16,518		—		387		387		16,905
Other retail		47,618		37		380		417		48,035
Total loans, excluding covered loans		194,579		1,955		6,417		8,372		202,951
Covered loans		12,438		129		570		699		13,137
Total loans	$	207,017	$	2,084	$	6,987	$	9,071	$	216,088
Total outstanding commitments	$	428,038	$	3,473	$	7,864	$	11,337	$	439,375
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

(a) Classified rating on consumer loans primarily based on delinquency status.

(b) At June 30, 2012, $2.9 billion of GNMA loans 90 days or more past due and $2.1 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 $2.0 billion at December 31, 2011, respectively.

Summary of impaired loans by portfolio class

(Dollars in Millions)	Period-end Recorded Investment (a)		Unpaid Principal Balance		Valuation Allowance		Commitments to Lend Additional Funds
June 30, 2012
Commercial	$	443	$	1,518	$	55	$	74
Commercial real estate		1,286		2,924		92		14
Residential mortgages		2,671		3,299		447		1
Credit card		526		526		196		—
Other retail		300		303		61		6
Total impaired loans, excluding GNMA and covered loans		5,226		8,570		851		95
Loans purchased from GNMA mortgage pools		1,352		1,352		39		—
Covered loans		945		2,616		36		11
Total	$	7,523	$	12,538	$	926	$	106
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

(a) Substantially all loans classified as impaired at June 30, 2012 and December 31, 2011, had an associated allowance for credit losses.

Additional information on impaired loans

	2012				2011
(Dollars in Millions)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Three months ended June 30
Commercial	$	506	$	2	$	503	$	2
Commercial real estate		1,338		10		1,517		2
Residential mortgages		2,687		30		2,541		25
Credit card		543		8		462		3
Other retail		244		2		159		1
Total impaired loans, excluding GNMA and covered loans		5,318		52		5,182		33
Loans purchased from GNMA mortgage pools		1,320		16		439		5
Covered loans		1,065		11		1,164		13
Total	$	7,703	$	79	$	6,785	$	51
Six months ended June 30
Commercial	$	538	$	5	$	525	$	3
Commercial real estate		1,431		17		1,499		4
Residential mortgages		2,663		56		2,524		50
Credit card		546		16		461		6
Other retail		212		4		158		2
Total impaired loans, excluding GNMA and covered loans		5,390		98		5,167		65
Loans purchased from GNMA mortgage pools		1,299		31		301		9
Covered loans		1,121		13		1,181		27
Total	$	7,810	$	142	$	6,649	$	101

Loans modified as TDRs

	2012								2011
(Dollars in Millions)	Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance (d)				Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance (d)
Three months ended June 30
Commercial		1,048	$	70	$	65				1,492	$	153	$	144
Commercial real estate		71		121		113				106		380		396
Residential mortgages		450		74		74	(a	)		868		165		163
Credit card		10,685		57		56				12,258		73		73
Other retail		809		20		20	(b	)		1,053		21		20
Total loans, excluding GNMA and covered loans		13,063		342		328				15,777		792		796
Loans purchased from GNMA mortgage pools		2,177		277		311	(c	)		1,679		221		235
Covered loans		50		57		51				70		90		84
Total loans		15,290	$	676	$	690				17,526	$	1,103	$	1,115
Six months ended June 30
Commercial		2,327	$	161	$	137				2,847	$	248	$	236
Commercial real estate		182		325		310				265		782		781
Residential mortgages		1,071		185		181				1,823		360		356
Credit card		24,903		137		136				26,668		161		161
Other retail		1,797		35		35				2,064		40		39
Total loans, excluding GNMA and covered loans		30,280		843		799				33,667		1,591		1,573
Loans purchased from GNMA mortgage pools		3,577		456		498				3,932		522		559
Covered loans		93		197		188				166		308		297
Total loans		33,950	$	1,496	$	1,485				37,765	$	2,421	$	2,429

(a) Residential 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 June 30, 2012, 170 loans with outstanding balances of $26 million were in a trial period and have an estimated post-modification balance of $28 million assuming permanent modification occurs at the end of the trial period.

(b) At June 30, 2012, 23 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 $3 million assuming permanent modification occurs at the end of the trial period.

(c) At June 30, 2012, 1,435 loans purchased from GNMA mortgage pools with outstanding balances of $179 million were in a trial period and have an estimated post-modification balance of $186 million assuming permanent modification occurs at the end of the trial period.

(d) Post-modification balances for residential mortgages, home equity and second mortgages, and loans purchased from GNMA mortgage pools typically include capitalization of unpaid accrued interest and/or fees under the various modification programs.

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

	2012				2011
(Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Three months ended June 30
Commercial		216	$	10		179	$	5
Commercial real estate		29		72		8		5
Residential mortgages		247		22		97		18
Credit card		2,390		13		1,850		10
Other retail		158		1		116		2
Total loans, excluding GNMA and covered loans		3,040		118		2,250		40
Loans purchased from GNMA mortgage pools		262		39		97		15
Covered loans		7		27		—		—
Total loans		3,309	$	184		2,347	$	55
Six months ended June 30
Commercial		457	$	31		268	$	10
Commercial real estate		83		164		8		5
Residential mortgages		311		34		440		92
Credit card		4,916		28		3,563		18
Other retail		342		4		199		4
Total loans, excluding GNMA and covered loans		6,109		261		4,478		129
Loans purchased from GNMA mortgage pools		483		72		253		35
Covered loans		41		87		—		—
Total loans		6,633	$	420		4,731	$	164

Carrying amount of the covered assets

	June 30, 2012								December 31, 2011
(Dollars in Millions)	Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total		Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total
Commercial loans	$	—	$	137	$	—	$	137	$	68	$	137	$	—	$	205
Commercial real estate loans		1,566		3,790		—		5,356		1,956		4,037		—		5,993
Residential mortgage loans		3,575		1,242		—		4,817		3,830		1,360		—		5,190
Credit card loans		—		5		—		5		—		6		—		6
Other retail loans		—		821		—		821		—		867		—		867
Losses reimbursable by the FDIC (a)		—		—		2,001		2,001		—		—		2,526		2,526
Covered loans		5,141		5,995		2,001		13,137		5,854		6,407		2,526		14,787
Foreclosed real estate		—		—		203		203		—		—		274		274
Total covered assets	$	5,141	$	5,995	$	2,204	$	13,340	$	5,854	$	6,407	$	2,800	$	15,061

(a) Relates to loss sharing agreements with remaining terms from 2 to 7 years.