Loans and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2015

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)	2015		2014
Commercial
Commercial	$	83,116	$	74,996
Lease financing		5,286		5,381
Total commercial		88,402		80,377
Commercial Real Estate
Commercial mortgages		31,773		33,360
Construction and development		10,364		9,435
Total commercial real estate		42,137		42,795
Residential Mortgages
Residential mortgages		40,425		38,598
Home equity loans, first liens		13,071		13,021
Total residential mortgages		53,496		51,619
Credit Card		21,012		18,515
Other Retail
Retail leasing		5,232		5,871
Home equity and second mortgages		16,384		15,916
Revolving credit		3,354		3,309
Installment		7,030		6,242
Automobile		16,587		14,822
Student		2,619		3,104
Total other retail		51,206		49,264
Total loans, excluding covered loans		256,253		242,570
Covered Loans		4,596		5,281
Total loans	$	260,849	$	247,851

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)	2015			2014			2013
Balance at beginning of period	$	1,309		$	1,655		$	1,709
Accretion		(382	)		(441	)		(499	)
Disposals		(132	)		(131	)		(172	)
Reclassifications from nonaccretable difference(a)		163			229			258
Other(b)		(1	)		(3	)		359
Balance at end of period	$	957		$	1,309		$	1,655

(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, partially offset by the impact of changes in expectations about retaining covered single-family loans beyond the term of the indemnification agreements.

Activity in Allowance for Credit Losses by Portfolio Type

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, 2014	$	1,146		$	726		$	787		$	880		$	771		$	4,310		$	65		$	4,375
Add
Provision for credit losses		361			(30	)		(47	)		654			193			1,131			1			1,132
Deduct
Loans charged off		314			22			135			726			319			1,516			–			1,516
Less recoveries of loans charged off		(95	)		(50	)		(26	)		(75	)		(98	)		(344	)		–			(344	)
Net loans charged off		219			(28	)		109			651			221			1,172			–			1,172
Other changes(a)		(1	)		–			–			–			–			(1	)		(28	)		(29	)
Balance at December 31, 2015	$	1,287		$	724		$	631		$	883		$	743		$	4,268		$	38		$	4,306
Balance at December 31, 2013	$	1,075		$	776		$	875		$	884		$	781		$	4,391		$	146		$	4,537
Add
Provision for credit losses		266			(63	)		107			657			278			1,245			(16	)		1,229
Deduct
Loans charged off		305			36			216			725			384			1,666			13			1,679
Less recoveries of loans charged off		(110	)		(49	)		(21	)		(67	)		(96	)		(343	)		(2	)		(345	)
Net loans charged off		195			(13	)		195			658			288			1,323			11			1,334
Other changes(a)		–			–			–			(3	)		–			(3	)		(54	)		(57	)
Balance at December 31, 2014	$	1,146		$	726		$	787		$	880		$	771		$	4,310		$	65		$	4,375
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 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, and the impact of any loan sales.

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, 2015 Related to
Loans individually evaluated for impairment(a)	$	11	$	2	$	–	$	–	$	–	$	13	$	–	$	13
TDRs collectively evaluated for impairment		10		7		236		57		33		343		2		345
Other loans collectively evaluated for impairment		1,266		703		395		826		710		3,900		–		3,900
Loans acquired with deteriorated credit quality		–		12		–		–		–		12		36		48
Total allowance for credit losses	$	1,287	$	724	$	631	$	883	$	743	$	4,268	$	38	$	4,306
Allowance Balance at December 31, 2014 Related to
Loans individually evaluated for impairment(a)	$	5	$	4	$	–	$	–	$	–	$	9	$	–	$	9
TDRs collectively evaluated for impairment		12		12		319		61		41		445		4		449
Other loans collectively evaluated for impairment		1,129		678		468		819		730		3,824		1		3,825
Loans acquired with deteriorated credit quality		–		32		–		–		–		32		60		92
Total allowance for credit losses	$	1,146	$	726	$	787	$	880	$	771	$	4,310	$	65	$	4,375

(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, 2015
Loans individually evaluated for impairment(a)	$	336	$	41	$	13	$	–	$	–	$	390	$	–	$	390
TDRs collectively evaluated for impairment		138		235		4,241		210		211		5,035		35		5,070
Other loans collectively evaluated for impairment		87,927		41,566		49,241		20,802		50,995		250,531		2,059		252,590
Loans acquired with deteriorated credit quality		1		295		1		–		–		297		2,502		2,799
Total loans	$	88,402	$	42,137	$	53,496	$	21,012	$	51,206	$	256,253	$	4,596	$	260,849
December 31, 2014
Loans individually evaluated for impairment(a)	$	159	$	128	$	12	$	–	$	–	$	299	$	–	$	299
TDRs collectively evaluated for impairment		124		393		4,653		240		237		5,647		34		5,681
Other loans collectively evaluated for impairment		80,093		41,744		46,953		18,275		49,027		236,092		2,463		238,555
Loans acquired with deteriorated credit quality		1		530		1		–		–		532		2,784		3,316
Total loans	$	80,377	$	42,795	$	51,619	$	18,515	$	49,264	$	242,570	$	5,281	$	247,851

(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, Including Delinquency Status of those that Continue to Accrue Interest and are Nonperforming

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, 2015
Commercial	$	87,863	$	317	$	48	$	174	$	88,402
Commercial real estate		41,907		89		14		127		42,137
Residential mortgages(a)		52,438		170		176		712		53,496
Credit card		20,532		243		228		9		21,012
Other retail		50,745		224		75		162		51,206
Total loans, excluding covered loans		253,485		1,043		541		1,184		256,253
Covered loans		4,236		62		290		8		4,596
Total loans	$	257,721	$	1,105	$	831	$	1,192	$	260,849
December 31, 2014
Commercial	$	79,977	$	247	$	41	$	112	$	80,377
Commercial real estate		42,406		110		20		259		42,795
Residential mortgages(a)		50,330		221		204		864		51,619
Credit card		18,046		229		210		30		18,515
Other retail		48,764		238		75		187		49,264
Total loans, excluding covered loans		239,523		1,045		550		1,452		242,570
Covered loans		4,804		68		395		14		5,281
Total loans	$	244,327	$	1,113	$	945	$	1,466	$	247,851

(a) At December 31, 2015, $320 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 $431 million and $3.1 billion at December 31, 2014, 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, 2015
Commercial(b)	$	85,206	$	1,629	$	1,567	$	3,196	$	88,402
Commercial real estate		41,079		365		693		1,058		42,137
Residential mortgages(c)		52,548		2		946		948		53,496
Credit card		20,775		–		237		237		21,012
Other retail		50,899		6		301		307		51,206
Total loans, excluding covered loans		250,507		2,002		3,744		5,746		256,253
Covered loans		4,507		–		89		89		4,596
Total loans	$	255,014	$	2,002	$	3,833	$	5,835	$	260,849
Total outstanding commitments	$	539,614	$	3,945	$	4,845	$	8,790	$	548,404
December 31, 2014
Commercial(b)	$	78,409	$	1,204	$	764	$	1,968	$	80,377
Commercial real estate		41,322		451		1,022		1,473		42,795
Residential mortgages(c)		50,479		5		1,135		1,140		51,619
Credit card		18,275		–		240		240		18,515
Other retail		48,932		20		312		332		49,264
Total loans, excluding covered loans		237,417		1,680		3,473		5,153		242,570
Covered loans		5,164		–		117		117		5,281
Total loans	$	242,581	$	1,680	$	3,590	$	5,270	$	247,851
Total outstanding commitments	$	501,535	$	2,964	$	4,179	$	7,143	$	508,678

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

(b) At December 31, 2015, $1.1 billion of loans to customers in energy-related businesses had a special mention or classified rating, compared with $122 million at December 31, 2014.

(c) At December 31, 2015, $2.9 billion of GNMA loans 90 days or more past due and $1.9 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 $3.1 billion and $2.2 billion at December 31, 2014, respectively.

Summary of Impaired Loans, which Include Nonaccrual and TDR 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, 2015
Commercial	$	520	$	1,110	$	25	$	154
Commercial real estate		336		847		11		1
Residential mortgages		2,575		3,248		199		–
Credit card		210		210		57		–
Other retail		309		503		35		4
Total loans, excluding GNMA and covered loans		3,950		5,918		327		159
Loans purchased from GNMA mortgage pools		1,913		1,913		40		–
Covered loans		39		48		2		1
Total	$	5,902	$	7,879	$	369	$	160
December 31, 2014
Commercial	$	329	$	769	$	21	$	51
Commercial real estate		624		1,250		23		18
Residential mortgages		2,730		3,495		273		–
Credit card		240		240		61		–
Other retail		361		570		44		4
Total loans, excluding GNMA and covered loans		4,284		6,324		422		73
Loans purchased from GNMA mortgage pools		2,244		2,244		50		–
Covered loans		43		55		4		1
Total	$	6,571	$	8,623	$	476	$	74

(a) Substantially all loans classified as impaired at December 31, 2015 and 2014, had an associated allowance for credit losses. The total amount of interest income recognized during 2015 on loans classified as impaired at December 31, 2015, excluding those acquired with deteriorated credit quality, was $274 million, compared to what would have been recognized at the original contractual terms of the loans of $370 million.

Impaired Loans Average Recorded Investment and Interest Income Recognized

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

(Dollars in Millions)	Average Recorded Investment		Interest Income Recognized
2015
Commercial	$	383	$	13
Commercial real estate		433		16
Residential mortgages		2,666		131
Credit card		221		4
Other retail		336		14
Total loans, excluding GNMA and covered loans		4,039		178
Loans purchased from GNMA mortgage pools		2,079		95
Covered loans		42		1
Total	$	6,160	$	274
2014
Commercial	$	414	$	9
Commercial real estate		592		26
Residential mortgages		2,742		140
Credit card		273		9
Other retail		377		17
Total loans, excluding GNMA and covered loans		4,398		201
Loans purchased from GNMA mortgage pools		2,609		124
Covered loans		334		15
Total	$	7,341	$	340
2013
Commercial	$	382	$	29
Commercial real estate		889		39
Residential mortgages		2,749		134
Credit card		366		16
Other retail		424		24
Total 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

Summary of 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
2015
Commercial		1,607	$	385	$	396
Commercial real estate		108		78		76
Residential mortgages		2,080		260		258
Credit card		26,772		133		134
Other retail		2,530		54		54
Total loans, excluding GNMA and covered loans		33,097		910		918
Loans purchased from GNMA mortgage pools		8,199		864		862
Covered loans		16		5		5
Total loans		41,312	$	1,779	$	1,785
2014
Commercial		2,027	$	238	$	203
Commercial real estate		78		80		71
Residential mortgages		2,089		271		274
Credit card		26,511		144		145
Other retail		2,833		61		61
Total loans, excluding GNMA and covered loans		33,538		794		754
Loans purchased from GNMA mortgage pools		8,961		1,000		1,013
Covered loans		43		15		14
Total loans		42,542	$	1,809	$	1,781
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

Summary of Loans Modified as TDRs in the Past Twelve Months that have Subsequently Defaulted

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
2015
Commercial		494	$	21
Commercial real estate		18		8
Residential mortgages		273		36
Credit card		6,286		29
Other retail		636		12
Total loans, excluding GNMA and covered loans		7,707		106
Loans purchased from GNMA mortgage pools		598		75
Covered loans		5		1
Total loans		8,310	$	182
2014
Commercial		629	$	44
Commercial real estate		22		12
Residential mortgages		611		86
Credit card		6,335		33
Other retail		845		24
Total loans, excluding GNMA and covered loans		8,442		199
Loans purchased from GNMA mortgage pools		876		102
Covered loans		14		5
Total loans		9,332	$	306
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

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:

	2015								2014
(Dollars in Millions)	Purchased Impaired Loans		Purchased Nonimpaired Loans		Other		Total		Purchased Impaired Loans		Purchased Nonimpaired Loans		Other		Total
Residential mortgage loans	$	2,502	$	615	$	–	$	3,117	$	2,784	$	738	$	–	$	3,522
Other retail loans		–		447		–		447		–		584		–		584
Losses reimbursable by the FDIC(a)		–		–		517		517		–		–		717		717
Unamortized changes in FDIC asset(b)		–		–		515		515		–		–		458		458
Covered loans		2,502		1,062		1,032		4,596		2,784		1,322		1,175		5,281
Foreclosed real estate		–		–		32		32		–		–		37		37
Total covered assets	$	2,502	$	1,062	$	1,064	$	4,628	$	2,784	$	1,322	$	1,212	$	5,318

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

Commercial Loans by Industry Group and Geography Excluding Covered Loans

  TABLE 7   COMMERCIAL LOANS BY INDUSTRY GROUP AND GEOGRAPHY

	2015					2014
At December 31 (Dollars in Millions)	Loans		Percent			Loans		Percent
Industry Group
Manufacturing	$	13,404		15.2	%	$	12,261		15.3	%
Real estate, rental and leasing		9,514		10.8			7,779		9.7
Finance and insurance		8,288		9.4			7,799		9.7
Wholesale trade		8,069		9.1			7,350		9.1
Retail trade		6,846		7.7			6,428		8.0
Healthcare and social assistance		5,802		6.6			5,280		6.6
Public administration		4,190		4.7			4,033		5.0
Information		3,542		4.0			2,702		3.4
Professional, scientific and technical services		3,493		4.0			3,121		3.9
Transport and storage		3,262		3.7			2,941		3.7
Educational services		2,791		3.2			2,286		2.8
Arts, entertainment and recreation		2,772		3.1			2,493		3.1
Mining		2,208		2.5			2,604		3.2
Agriculture, forestry, fishing and hunting		1,721		1.9			1,642		2.0
Other services		1,703		1.9			1,449		1.8
Utilities		1,435		1.6			1,404		1.7
Other		9,362		10.6			8,805		11.0
Total	$	88,402		100.0	%	$	80,377		100.0	%
Geography
California	$	11,253		12.7	%	$	9,961		12.4	%
Colorado		3,930		4.5			3,528		4.4
Illinois		4,636		5.3			4,108		5.1
Minnesota		7,166		8.1			6,316		7.9
Missouri		3,309		3.8			2,832		3.5
Ohio		4,063		4.6			3,534		4.4
Oregon		1,938		2.2			2,130		2.6
Washington		3,219		3.6			3,237		4.0
Wisconsin		2,936		3.3			3,090		3.8
Iowa, Kansas, Nebraska, North Dakota, South Dakota		4,543		5.1			4,400		5.5
Arkansas, Indiana, Kentucky, Tennessee		5,106		5.8			4,949		6.2
Idaho, Montana, Wyoming		1,427		1.6			1,475		1.8
Arizona, Nevada, New Mexico, Utah		3,280		3.7			2,951		3.7
Total banking region		56,806		64.3			52,511		65.3
Florida, Michigan, New York, Pennsylvania, Texas		15,819		17.9			14,036		17.5
All other states		15,777		17.8			13,830		17.2
Total outside Company’s banking region		31,596		35.7			27,866		34.7
Total	$	88,402		100.0	%	$	80,377		100.0	%

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

  TABLE 8   COMMERCIAL  REAL  ESTATE  LOANS  BY  PROPERTY  TYPE  AND   GEOGRAPHY

	2015					2014
At December 31 (Dollars in Millions)	Loans		Percent			Loans		Percent
Property Type
Business owner occupied	$	11,186		26.6	%	$	11,535		26.9	%
Commercial property
Industrial		1,530		3.6			1,582		3.7
Office		5,480		13.0			5,680		13.3
Retail		4,944		11.7			4,896		11.4
Other commercial		4,165		9.9			4,670		10.9
Multi-family		8,833		21.0			8,548		20.0
Hotel/motel		3,428		8.1			3,624		8.5
Residential homebuilders		2,319		5.5			1,996		4.7
Healthcare facilities		252		.6			264		.6
Total	$	42,137		100.0	%	$	42,795		100.0	%
Geography
California	$	10,456		24.8	%	$	10,545		24.6	%
Colorado		2,004		4.8			1,955		4.6
Illinois		1,810		4.3			2,153		5.0
Minnesota		2,022		4.8			2,031		4.7
Missouri		1,382		3.3			1,453		3.4
Ohio		1,260		3.0			1,391		3.3
Oregon		1,988		4.7			2,012		4.7
Washington		3,422		8.1			3,501		8.2
Wisconsin		2,323		5.5			2,293		5.4
Iowa, Kansas, Nebraska, North Dakota, South Dakota		2,227		5.3			2,202		5.1
Arkansas, Indiana, Kentucky, Tennessee		1,708		4.1			1,764		4.1
Idaho, Montana, Wyoming		1,275		3.0			1,319		3.1
Arizona, Nevada, New Mexico, Utah		3,259		7.7			3,383		7.9
Total banking region		35,136		83.4			36,002		84.1
Florida, Michigan, New York, Pennsylvania, Texas		3,793		9.0			3,656		8.6
All other states		3,208		7.6			3,137		7.3
Total outside Company’s banking region		7,001		16.6			6,793		15.9
Total	$	42,137		100.0	%	$	42,795		100.0	%

Summary of Nonperforming Assets

  _TABLE 16   NONPERFORMING ASSETS (a)

At December 31 (Dollars in Millions)	2015			2014			2013			2012			2011
Commercial
Commercial	$	160		$	99		$	122		$	107		$	280
Lease financing		14			13			12			16			32
Total commercial		174			112			134			123			312
Commercial Real Estate
Commercial mortgages		92			175			182			308			354
Construction and development		35			84			121			238			545
Total commercial real estate		127			259			303			546			899
Residential Mortgages(b)		712			864			770			661			650
Credit Card		9			30			78			146			224
Other Retail
Retail leasing		3			1			1			1			–
Home equity and second mortgages		136			170			167			189			40
Other		23			16			23			27			27
Total other retail		162			187			191			217			67
Total nonperforming loans, excluding covered loans		1,184			1,452			1,476			1,693			2,152
Covered Loans		8			14			127			386			926
Total nonperforming loans		1,192			1,466			1,603			2,079			3,078
Other Real Estate(c)(d)		280			288			327			381			404
Covered Other Real Estate(d)		32			37			97			197			274
Other Assets		19			17			10			14			18
Total nonperforming assets	$	1,523		$	1,808		$	2,037		$	2,671		$	3,774
Total nonperforming assets, excluding covered assets	$	1,483		$	1,757		$	1,813		$	2,088		$	2,574
Excluding covered assets
Accruing loans 90 days or more past due(b)	$	541		$	550		$	713		$	660		$	843
Nonperforming loans to total loans		.46	%		.60	%		.65	%		.80	%		1.10	%
Nonperforming assets to total loans plus other real estate(c)		.58	%		.72	%		.80	%		.98	%		1.32	%
Including covered assets
Accruing loans 90 days or more past due(b)	$	831		$	945		$	1,189		$	1,323		$	1,753
Nonperforming loans to total loans		.46	%		.59	%		.68	%		.93	%		1.47	%
Nonperforming assets to total loans plus other real estate(c)		.58	%		.73	%		.86	%		1.19	%		1.79	%

CHANGES IN NONPERFORMING ASSETS

(Dollars in Millions)	Commercial and Commercial Real Estate			Residential Mortgages, Credit Card and Other Retail			Covered Assets			Total
Balance December 31, 2014	$	431		$	1,326		$	51		$	1,808
Additions to nonperforming assets
New nonaccrual loans and foreclosed properties		394			500			24			918
Advances on loans		54			–			–			54
Total additions		448			500			24			972
Reductions in nonperforming assets
Paydowns, payoffs		(271	)		(275	)		(8	)		(554	)
Net sales		(53	)		(129	)		(25	)		(207	)
Return to performing status		(6	)		(171	)		(1	)		(178	)
Charge-offs(e)		(213	)		(104	)		(1	)		(318	)
Total reductions		(543	)		(679	)		(35	)		(1,257	)
Net additions to (reductions in) nonperforming assets		(95	)		(179	)		(11	)		(285	)
Balance December 31, 2015	$	336		$	1,147		$	40		$	1,523

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

(b) Excludes $2.9 billion, $3.1 billion, $3.7 billion, $3.2 billion and $2.6 billion at December 31, 2015, 2014, 2013, 2012 and 2011, 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 $535 million, $641 million, $527 million, $548 million and $692 million at December 31, 2015, 2014, 2013, 2012 and 2011, 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.