Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

Composition of Loan Portfolio

The composition of the loan portfolio at December 31, disaggregated by class and underlying specific portfolio type, was as follows:

(Dollars in Millions)	2013		2012
Commercial
Commercial	$	64,762	$	60,742
Lease financing		5,271		5,481
Total commercial		70,033		66,223
Commercial Real Estate
Commercial mortgages		32,183		31,005
Construction and development		7,702		5,948
Total commercial real estate		39,885		36,953
Residential Mortgages
Residential mortgages		37,545		32,648
Home equity loans, first liens		13,611		11,370
Total residential mortgages		51,156		44,018
Credit Card		18,021		17,115
Other Retail
Retail leasing		5,929		5,419
Home equity and second mortgages		15,442		16,726
Revolving credit		3,276		3,332
Installment		5,709		5,463
Automobile		13,743		12,593
Student		3,579		4,179
Total other retail		47,678		47,712
Total loans, excluding covered loans		226,773		212,021
Covered Loans		8,462		11,308
Total loans	$	235,235	$	223,329

Changes in Accretable Balance for Purchased Impaired Loans

Changes in the accretable balance for purchased impaired loans for the years ended December 31, were as follows:

(Dollars in Millions)	2013			2012			2011
Balance at beginning of period	$	1,709		$	2,619		$	2,890
Purchases		–			13			100
Accretion		(499	)		(437	)		(451	)
Disposals		(172	)		(208	)		(67	)
Reclassifications from nonaccretable difference (a)		258			454			184
Other (b)		359			(732	)		(37	)
Balance at end of period	$	1,655		$	1,709		$	2,619

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

(b) The amount for the year ended December 31, 2013, primarily represents the reclassification of unamortized decreases in the FDIC asset (which are now presented as a separate component within the covered assets table on page 101), partially offset by the impact of changes in expectations about retaining covered single-family loans beyond the term of the indemnification agreements. The amount for the year end December 31, 2012, primarily represents a change in the Company’s expectations regarding potential sale of modified covered loans at the end of the indemnification agreements which results in a reduction in the expected contractual interest payments included in the accretable balance for those loans that may be sold.

Activity in Allowance for Credit Losses

Activity in the allowance for credit losses by portfolio class was as follows:

(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, 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
Other changes (a)		–			–			–			–			–			–			(17	)		(17	)
Balance at December 31, 2011	$	1,010		$	1,154		$	927		$	992		$	831		$	4,914		$	100		$	5,014
Add
Provision for credit losses		316			(131	)		446			571			558			1,760			122			1,882
Deduct
Loans charged off		378			242			461			769			666			2,516			11			2,527
Less recoveries of loans charged off		(103	)		(76	)		(23	)		(102	)		(125	)		(429	)		(1	)		(430	)
Net loans charged off		275			166			438			667			541			2,087			10			2,097
Other changes (a)		–			–			–			(33	)		–			(33	)		(33	)		(66	)
Balance at December 31, 2012	$	1,051		$	857		$	935		$	863		$	848		$	4,554		$	179		$	4,733
Add
Provision for credit losses		144			(114	)		212			677			351			1,270			70			1,340
Deduct
Loans charged off		246			92			297			739			523			1,897			37			1,934
Less recoveries of loans charged off		(126	)		(125	)		(25	)		(83	)		(105	)		(464	)		(5	)		(469	)
Net loans charged off		120			(33	)		272			656			418			1,433			32			1,465
Other changes (a)		–			–			–			–			–			–			(71	)		(71	)
Balance at December 31, 2013	$	1,075		$	776		$	875		$	884		$	781		$	4,391		$	146		$	4,537

(a) Includes net changes in credit losses to be reimbursed by the FDIC and for the year ended December 31, 2013, reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an associated decrease in the indemnification asset.

Additional Detail of Allowance for Credit Losses and Related Loan Balances by Portfolio Type

Additional detail of the allowance for credit losses by portfolio class was as follows:

(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, 2013 Related to
Loans individually evaluated for impairment (a)	$	15	$	17	$	–	$	–	$	–	$	32	$	–	$	32
TDRs collectively evaluated for impairment		19		26		329		87		55		516		4		520
Other loans collectively evaluated for impairment		1,041		700		546		797		726		3,810		5		3,815
Loans acquired with deteriorated credit quality		–		33		–		–		–		33		137		170
Total allowance for credit losses	$	1,075	$	776	$	875	$	884	$	781	$	4,391	$	146	$	4,537
Allowance Balance at December 31, 2012 Related to
Loans individually evaluated for impairment (a)	$	10	$	30	$	–	$	–	$	–	$	40	$	–	$	40
TDRs collectively evaluated for impairment		28		29		446		153		97		753		1		754
Other loans collectively evaluated for impairment		1,013		791		489		710		751		3,754		17		3,771
Loans acquired with deteriorated credit quality		–		7		–		–		–		7		161		168
Total allowance for credit losses	$	1,051	$	857	$	935	$	863	$	848	$	4,554	$	179	$	4,733

(a) Represents the allowance for credit losses related to loans greater than $5 million classified as nonperforming or TDRs.

Additional detail of loan balances by portfolio class was as follows:

(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, 2013
Loans individually evaluated for impairment (a)	$	197	$	237	$	–	$	–	$	–	$	434	$	62	$	496
TDRs collectively evaluated for impairment		155		358		5,064		310		269		6,156		87		6,243
Other loans collectively evaluated for impairment		69,680		39,128		46,090		17,711		47,409		220,018		4,539		224,557
Loans acquired with deteriorated credit quality		1		162		2		–		–		165		3,774		3,939
Total loans	$	70,033	$	39,885	$	51,156	$	18,021	$	47,678	$	226,773	$	8,462	$	235,235
December 31, 2012
Loans individually evaluated for impairment (a)	$	171	$	510	$	–	$	–	$	–	$	681	$	48	$	729
TDRs collectively evaluated for impairment		185		391		4,199		442		313		5,530		145		5,675
Other loans collectively evaluated for impairment		65,863		35,952		39,813		16,673		47,399		205,700		5,814		211,514
Loans acquired with deteriorated credit quality		4		100		6		–		–		110		5,301		5,411
Total loans	$	66,223	$	36,953	$	44,018	$	17,115	$	47,712	$	212,021	$	11,308	$	223,329

(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 and Delinquency Status

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:

	Accruing
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming		Total
December 31, 2013
Commercial	$	69,587	$	257	$	55	$	134	$	70,033
Commercial real estate		39,459		94		29		303		39,885
Residential mortgages (a)		49,695		358		333		770		51,156
Credit card		17,507		226		210		78		18,021
Other retail		47,156		245		86		191		47,678
Total loans, excluding covered loans		223,404		1,180		713		1,476		226,773
Covered loans		7,693		166		476		127		8,462
Total loans	$	231,097	$	1,346	$	1,189	$	1,603	$	235,235
December 31, 2012
Commercial	$	65,701	$	341	$	58	$	123	$	66,223
Commercial real estate		36,241		158		8		546		36,953
Residential mortgages (a)		42,728		348		281		661		44,018
Credit card		16,525		227		217		146		17,115
Other retail		47,109		290		96		217		47,712
Total loans, excluding covered loans		208,304		1,364		660		1,693		212,021
Covered loans		9,900		359		663		386		11,308
Total loans	$	218,204	$	1,723	$	1,323	$	2,079	$	223,329

(a) At December 31, 2013, $440 million of loans 30–89 days past due and $3.7 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 $441 million and $3.2 billion at December 31, 2012, respectively.

Summary of Loans by Portfolio Type and Company's Internal Credit Quality Rating

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:

			Criticized
(Dollars in Millions)	Pass		Special Mention		Classified (a)		Total Criticized		Total
December 31, 2013
Commercial	$	68,075	$	1,013	$	945	$	1,958	$	70,033
Commercial real estate		38,113		616		1,156		1,772		39,885
Residential mortgages (b)		50,152		5		999		1,004		51,156
Credit card		17,733		–		288		288		18,021
Other retail		47,313		27		338		365		47,678
Total loans, excluding covered loans		221,386		1,661		3,726		5,387		226,773
Covered loans		8,160		18		284		302		8,462
Total loans	$	229,546	$	1,679	$	4,010	$	5,689	$	235,235
Total outstanding commitments	$	470,046	$	2,939	$	4,812	$	7,751	$	477,797
December 31, 2012
Commercial	$	63,906	$	1,114	$	1,203	$	2,317	$	66,223
Commercial real estate		34,096		621		2,236		2,857		36,953
Residential mortgages (b)		42,897		18		1,103		1,121		44,018
Credit card		16,752		–		363		363		17,115
Other retail		47,294		36		382		418		47,712
Total loans, excluding covered loans		204,945		1,789		5,287		7,076		212,021
Covered loans		10,786		61		461		522		11,308
Total loans	$	215,731	$	1,850	$	5,748	$	7,598	$	223,329
Total outstanding commitments	$	442,047	$	3,231	$	6,563	$	9,794	$	451,841

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

(b) At December 31, 2013, $3.7 billion of GNMA loans 90 days or more past due and $2.6 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 $3.2 billion and $2.4 billion at December 31, 2012, respectively.

Summary of Impaired Loans by Portfolio Class

 A summary of impaired loans, which include all nonaccrual and TDR loans, by portfolio class was as follows:

(Dollars in Millions)	Period-end Recorded Investment (a)		Unpaid Principal Balance		Valuation Allowance		Commitments to Lend Additional Funds
December 31, 2013
Commercial	$	382	$	804	$	36	$	54
Commercial real estate		693		1,322		51		40
Residential mortgages		2,767		3,492		308		–
Credit card		310		310		87		–
Other retail		391		593		59		14
Total impaired loans, excluding GNMA and covered loans		4,543		6,521		541		108
Loans purchased from GNMA mortgage pools		2,607		2,607		28		–
Covered loans		452		1,008		30		4
Total	$	7,602	$	10,136	$	599	$	112
December 31, 2012
Commercial	$	404	$	1,200	$	40	$	39
Commercial real estate		1,077		2,251		70		4
Residential mortgages		2,748		3,341		415		–
Credit card		442		442		153		–
Other retail		443		486		101		3
Total impaired loans, excluding GNMA and covered loans		5,114		7,720		779		46
Loans purchased from GNMA mortgage pools		1,778		1,778		39		–
Covered loans		767		1,584		20		12
Total	$	7,659	$	11,082	$	838	$	58

(a) Substantially all loans classified as impaired at December 31, 2013 and 2012, had an associated allowance for credit losses. The total amount of interest income recognized during 2013 on loans classified as impaired at December 31, 2013, excluding those acquired with deteriorated credit quality, was $233 million, compared to what would have been recognized at the original contractual terms of the loans of $399 million.

Impaired Loans Average Recorded Investment and Interest Income

Additional information on impaired loans for the years ended December 31 follows:

(Dollars in Millions)	Average Recorded Investment		Interest Income Recognized
2013
Commercial	$	382	$	29
Commercial real estate		889		39
Residential mortgages		2,749		134
Credit card		366		16
Other retail		424		24
Total impaired loans, excluding GNMA and covered loans		4,810		242
Loans purchased from GNMA mortgage pools		1,967		100
Covered loans		561		27
Total	$	7,338	$	369
2012
Commercial	$	470	$	18
Commercial real estate		1,314		43
Residential mortgages		2,717		130
Credit card		510		28
Other retail		301		19
Total impaired loans, excluding GNMA and covered loans		5,312		238
Loans purchased from GNMA mortgage pools		1,448		73
Covered loans		980		29
Total	$	7,740	$	340
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

Loans Modified as TDRs

The following table provides a summary of loans modified as TDRs for the years ended December 31, by portfolio class:

(Dollars in Millions)	Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance
2013
Commercial		2,429	$	166	$	155
Commercial real estate		165		205		198
Residential mortgages		2,179		309		304
Credit card		26,669		160		161
Other retail		4,290		103		102
Total loans, excluding GNMA and covered loans		35,732		943		920
Loans purchased from GNMA mortgage pools		8,878		1,121		1,066
Covered loans		123		94		72
Total loans		44,733	$	2,158	$	2,058
2012
Commercial		4,843	$	307	$	272
Commercial real estate		312		493		461
Residential mortgages		4,616		638		623
Credit card		49,320		241		255
Other retail		10,461		279		275
Total loans, excluding GNMA and covered loans		69,552		1,958		1,886
Loans purchased from GNMA mortgage pools		9,518		1,280		1,245
Covered loans		192		277		263
Total loans		79,262	$	3,515	$	3,394
2011
Commercial		5,285	$	456	$	427
Commercial real estate		506		1,078		1,060
Residential mortgages		3,611		708		704
Credit card		55,951		322		321
Other retail		4,028		73		72
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
Covered loans		283		604		575
Total loans		79,233	$	4,518	$	4,515

Schedule of Loans Modified as TDRs that have Subsequently been Fully or Partially Charged-Off or Became 90 Days or More Past Due

The following table provides a summary of TDR loans that defaulted (fully or partially charged-off or became 90 days or more past due) for the years ended December 31, that were modified as TDRs within 12 months previous to default:

(Dollars in Millions)	Number of Loans		Amount Defaulted
2013
Commercial		642	$	46
Commercial real estate		87		102
Residential mortgages		1,099		163
Credit card		6,640		37
Other retail		1,841		80
Total loans, excluding GNMA and covered loans		10,309		428
Loans purchased from GNMA mortgage pools		4,972		640
Covered loans		63		49
Total loans		15,344	$	1,117
2012
Commercial		859	$	48
Commercial real estate		111		232
Residential mortgages		1,073		146
Credit card		9,774		54
Other retail		1,818		56
Total loans, excluding GNMA and covered loans		13,635		536
Loans purchased from GNMA mortgage pools		1,245		177
Covered loans		68		97
Total loans		14,948	$	810
2011
Commercial		665	$	26
Commercial real estate		64		67
Residential mortgages		623		127
Credit card		7,108		36
Other retail		557		13
Total loans, excluding GNMA and covered loans		9,017		269
Loans purchased from GNMA mortgage pools		857		124
Covered loans		11		26
Total loans		9,885	$	419

Carrying Amount of Covered Assets

The carrying amount of the covered assets at December 31, consisted of purchased impaired loans, purchased nonimpaired loans and other assets as shown in the following table:

	2013								2012
(Dollars in Millions)	Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total		Purchased Impaired Loans		Purchased Nonimpaired Loans		Other Assets		Total
Commercial loans	$	–	$	32	$	–	$	32	$	–	$	143	$	–	$	143
Commercial real estate loans		738		1,494		–		2,232		1,323		2,695		–		4,018
Residential mortgage loans		3,037		890		–		3,927		3,978		1,109		–		5,087
Credit card loans		–		5		–		5		–		5		–		5
Other retail loans		–		666		–		666		–		775		–		775
Losses reimbursable by the FDIC (a)		–		–		798		798		–		–		1,280		1,280
Unamortized changes in FDIC asset (b)		–		–		802		802		–		–		–		–
Covered loans		3,775		3,087		1,600		8,462		5,301		4,727		1,280		11,308
Foreclosed real estate		–		–		97		97		–		–		197		197
Total covered assets	$	3,775	$	3,087	$	1,697	$	8,559	$	5,301	$	4,727	$	1,477	$	11,505

(a) Relates to loss sharing agreements with remaining terms up to six years.

(b) Represents decreases in expected reimbursements by the FDIC as a result of decreases in expected losses on the covered loans. These amounts are amortized as a reduction in interest income on covered loans over the shorter of the expected life of the respective covered loans or the remaining contractual term of the indemnification agreements. These amounts were presented within the separate loan categories prior to January 1, 2013.

Commercial Loans by Industry Group and Geography Excluding Covered Loans

Commercial Loans by Industry Group and Geography

	2013					2012
At December 31 (Dollars in Millions)	Loans		Percent			Loans		Percent
Industry Group
Manufacturing	$	10,738		15.3	%	$	9,518		14.4	%
Real estate, rental and leasing		6,788		9.7			5,855		8.8
Wholesale trade		6,346		9.1			6,297		9.5
Finance and insurance		5,864		8.4			6,579		9.9
Retail trade		5,401		7.7			4,735		7.2
Healthcare and social assistance		5,048		7.2			4,733		7.1
Public administration		3,934		5.6			4,709		7.1
Professional, scientific and technical services		2,747		3.9			2,185		3.3
Information		2,443		3.5			2,203		3.3
Transport and storage		2,322		3.3			2,549		3.9
Educational services		2,222		3.2			1,964		3.0
Arts, entertainment and recreation		2,214		3.2			2,124		3.2
Mining		2,094		3.0			2,122		3.2
Agriculture, forestry, fishing and hunting		1,508		2.1			1,553		2.4
Other services		1,507		2.1			1,670		2.5
Utilities		1,374		2.0			1,390		2.1
Other		7,483		10.7			6,037		9.1
Total	$	70,033		100.0	%	$	66,223		100.0	%
Geography
California	$	8,748		12.5	%	$	8,081		12.2	%
Colorado		2,970		4.2			2,722		4.1
Illinois		3,539		5.1			3,544		5.3
Minnesota		5,086		7.3			4,720		7.1
Missouri		2,893		4.1			2,922		4.4
Ohio		3,385		4.8			3,240		4.9
Oregon		1,941		2.8			1,792		2.7
Washington		2,823		4.0			2,626		4.0
Wisconsin		2,768		4.0			2,727		4.1
Iowa, Kansas, Nebraska, North Dakota, South Dakota		4,091		5.8			4,244		6.4
Arkansas, Indiana, Kentucky, Tennessee		4,024		5.8			3,545		5.4
Idaho, Montana, Wyoming		1,148		1.6			1,096		1.7
Arizona, Nevada, New Mexico, Utah		2,917		4.2			2,435		3.7
Total banking region		46,333		66.2			43,694		66.0
Florida, Michigan, New York, Pennsylvania, Texas		11,762		16.8			11,082		16.7
All other states		11,938		17.0			11,447		17.3
Total outside Company’s banking region		23,700		33.8			22,529		34.0
Total	$	70,033		100.0	%	$	66,223		100.0	%

Commercial Real Estate by Property Type and Geography Excluding Covered Loans

Commercial Real Estate Loans by Property Type and Geography

	2013					2012
At December 31 (Dollars in Millions)	Loans		Percent			Loans		Percent
Property Type
Business owner occupied	$	11,223		28.1	%	$	11,405		30.9	%
Commercial property
Industrial		1,567		3.9			1,586		4.3
Office		5,173		13.0			4,833		13.1
Retail		4,503		11.3			4,537		12.3
Other commercial		4,253		10.7			3,735		10.1
Multi-family		7,886		19.8			6,857		18.5
Hotel/motel		3,251		8.1			2,569		6.9
Residential homebuilders		1,728		4.3			1,142		3.1
Health care facilities		301		.8			289		.8
Total	$	39,885		100.0	%	$	36,953		100.0	%
Geography
California	$	9,148		22.9	%	$	8,039		21.8	%
Colorado		1,781		4.5			1,644		4.5
Illinois		1,586		4.0			1,555		4.2
Minnesota		2,052		5.2			1,958		5.3
Missouri		1,573		3.9			1,560		4.2
Ohio		1,491		3.7			1,512		4.1
Oregon		1,999		5.0			1,921		5.2
Washington		3,548		8.9			3,586		9.7
Wisconsin		2,410		6.0			2,011		5.4
Iowa, Kansas, Nebraska, North Dakota, South Dakota		2,237		5.6			2,349		6.4
Arkansas, Indiana, Kentucky, Tennessee		1,718		4.3			1,886		5.1
Idaho, Montana, Wyoming		1,265		3.2			1,156		3.1
Arizona, Nevada, New Mexico, Utah		3,214		8.1			2,958		8.0
Total banking region		34,022		85.3			32,135		87.0
Florida, Michigan, New York, Pennsylvania, Texas		3,178		8.0			2,405		6.5
All other states		2,685		6.7			2,413		6.5
Total outside Company’s banking region		5,863		14.7			4,818		13.0
Total	$	39,885		100.0	%	$	36,953		100.0	%

Summary of Nonperforming Assets

Nonperforming Assets (a)

At December 31 (Dollars in Millions)	2013			2012			2011			2010			2009
Commercial
Commercial	$	122		$	107		$	280		$	519		$	866
Lease financing		12			16			32			78			125
Total commercial		134			123			312			597			991
Commercial Real Estate
Commercial mortgages		182			308			354			545			581
Construction and development		121			238			545			748			1,192
Total commercial real estate		303			546			899			1,293			1,773
Residential Mortgages (b)		770			661			650			636			467
Credit Card		78			146			224			228			142
Other Retail
Retail leasing		1			1			–			–			–
Other		190			216			67			65			62
Total other retail		191			217			67			65			62
Total nonperforming loans, excluding covered loans		1,476			1,693			2,152			2,819			3,435
Covered Loans		127			386			926			1,244			1,350
Total nonperforming loans		1,603			2,079			3,078			4,063			4,785
Other Real Estate (c)(d)		327			381			404			511			437
Covered Other Real Estate (d)		97			197			274			453			653
Other Assets		10			14			18			21			32
Total nonperforming assets	$	2,037		$	2,671		$	3,774		$	5,048		$	5,907
Total nonperforming assets, excluding covered assets	$	1,813		$	2,088		$	2,574		$	3,351		$	3,904
Excluding covered assets
Accruing loans 90 days or more past due (b)	$	713		$	660		$	843		$	1,094		$	1,525
Nonperforming loans to total loans		.65	%		.80	%		1.10	%		1.57	%		1.99	%
Nonperforming assets to total loans plus other real estate (c)		.80	%		.98	%		1.32	%		1.87	%		2.25	%
Including covered assets
Accruing loans 90 days or more past due (b)	$	1,189		$	1,323		$	1,753		$	2,184		$	2,309
Nonperforming loans to total loans		.68	%		.93	%		1.47	%		2.06	%		2.46	%
Nonperforming assets to total loans plus other real estate (c)		.86	%		1.19	%		1.79	%		2.55	%		3.02	%

Changes in Nonperforming Assets

(Dollars in Millions)	Commercial and Commercial Real Estate			Credit Card, Other Retail and Residential Mortgages			Covered Assets			Total
Balance December 31, 2012	$	780		$	1,308		$	583		$	2,671
Additions to nonperforming assets
New nonaccrual loans and foreclosed properties		427			977			146			1,550
Advances on loans		46			–			–			46
Total additions		473			977			146			1,596
Reductions in nonperforming assets
Paydowns, payoffs		(266	)		(276	)		(247	)		(789	)
Net sales		(209	)		(151	)		(249	)		(609	)
Return to performing status		(38	)		(166	)		(8	)		(212	)
Charge-offs (e)		(246	)		(373	)		(1	)		(620	)
Total reductions		(759	)		(966	)		(505	)		(2,230	)
Net additions to (reductions in) nonperforming assets		(286	)		11			(359	)		(634	)
Balance December 31, 2013	$	494		$	1,319		$	224		$	2,037

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

(b) Excludes $3.7 billion, $3.2 billion, $2.6 billion, $2.6 billion and $2.2 billion at December 31, 2013, 2012, 2011, 2010 and 2009, 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) Foreclosed GNMA loans of $527 million, $548 million, $692 million, $575 million and $359 million at December 31, 2013, 2012, 2011, 2010 and 2009, 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.