Loans (Tables)

6 Months Ended

Jun. 30, 2011

Composition of Loan Portfolio

Composition of Loan Portfolio

(Dollars in millions)	June 30,       2011		December 31,       2010
Commercial loans:
Commercial & industrial1		$45,922		$44,753
Commercial real estate		5,707		6,167
Commercial construction		1,740		2,568
Total commercial loans		53,369		53,488
Residential loans:
Residential mortgages - guaranteed		4,513		4,520
Residential mortgages - nonguaranteed2		23,224		23,959
Home equity products		16,169		16,751
Residential construction		1,118		1,291
Total residential loans		45,024		46,521
Consumer loans:
Guaranteed student loans		4,620		4,260
Other direct		1,863		1,722
Indirect		9,630		9,499
Credit cards		407		485
Total consumer loans		16,520		15,966
LHFI		$114,913		$115,975
LHFS		$2,052		$3,501

¹Includes $4 million of loans carried at fair value at June 30, 2011 and December 31, 2010, respectively.

²Includes $445 million and $488 million of loans carried at fair value at June 30, 2011 and December 31, 2010, respectively.

LHFI by Credit Quality Indicator

LHFI by credit quality indicator are shown in the tables below.

	Commercial & industrial				Commercial real estate				Commercial construction
(Dollars in millions)	June 30, 2011		December 31,   2010		June 30,     2011		December 31,   2010		June 30, 2011		December 31,   2010
Credit rating:
Pass		$43,551		$42,140		$3,941		$4,316		$641		$836
Criticized accruing		1,834		2,029		1,367		1,509		472		771
Criticized nonaccruing		537		584		399		342		627		961
Total		$45,922		$44,753		$5,707		$6,167		$1,740		$2,568

	Residential mortgages  - nonguaranteed2				Home equity products				Residential construction
	June 30, 2011		December 31,   2010		June 30,     2011		December 31,   2010		June 30, 2011		December 31,   2010
Current FICO score range:
700 and above		$15,752		$15,920		$11,471		$11,673		$752		$828
620 - 699		4,226		4,457		2,862		2,897		219		258
Below 6201		3,246		3,582		1,836		2,181		147		205
Total		$23,224		$23,959		$16,169		$16,751		$1,118		$1,291

	Consumer  - other direct3				Consumer - indirect				Consumer - credit cards
	June 30, 2011		December 31,   2010		June 30,     2011		December 31,   2010		June 30, 2011		December 31, 2010
Current FICO score range:
700 and above		$1,111		$973		$7,023		$6,780		$219		$258
620 - 699		237		231		1,822		1,799		123		149
Below 6201		90		105		785		920		65		78
Total		$1,438		$1,309		$9,630		$9,499		$407		$485

¹ For substantially all loans with refreshed FICO scores below 620, the borrower’s FICO score at the time of origination exceeded 620 but has since deteriorated as the loan has seasoned.

² Excludes $4.5 billion at both June 30, 2011 and December 31, 2010 of federally guaranteed residential loans. At both June 30, 2011 and December 31, 2010, the vast majority of these loans had FICO scores of 700 and above.

³ Excludes $425 million and $413 million as of June 30, 2011 and December 31, 2010, respectively, of private-label student loans with third party insurance. At both June 30, 2011 and December 31, 2010, the vast majority of these loans had FICO scores of 700 and above.

Payment Status for the LHFI Portfolio

The payment status for the LHFI portfolio at June 30, 2011 and December 31, 2010 is shown in the tables below:

		Nonaccruing3		Nonaccruing3		Nonaccruing3		Nonaccruing3		Nonaccruing3
	As of June 30, 2011
(Dollars in millions)	Accruing Current		Accruing 30-89 Days Past Due		Accruing 90+ Days Past Due		Nonaccruing3		Total
Commercial loans:
Commercial & industrial1		$45,271		$93		$21		$537		$45,922
Commercial real estate		5,291		15		2		399		5,707
Commercial construction		1,102		11		-		627		1,740
Total commercial loans		51,664		119		23		1,563		53,369
Residential loans:
Residential mortgages - guaranteed		3,408		163		942		-		4,513
Residential mortgages - nonguaranteed2		21,448		336		28		1,412		23,224
Home equity products		15,601		233		-		335		16,169
Residential construction		825		25		2		266		1,118
Total residential loans		41,282		757		972		2,013		45,024
Consumer loans:
Guaranteed student loans		3,578		417		625		-		4,620
Other direct		1,834		15		5		9		1,863
Indirect		9,547		55		3		25		9,630
Credit cards		391		8		8		-		407
Total consumer loans		15,350		495		641		34		16,520
Total LHFI		$108,296		$1,371		$1,636		$3,610		$114,913

¹ Includes $4 million in loans carried at fair value.

² Includes $445 million in loans carried at fair value.

³ Total nonaccruing loans past due 90 days or more totaled $2.8 billion. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs.

		Nonaccruing3		Nonaccruing3		Nonaccruing3		Nonaccruing3		Nonaccruing3
	As of December 31, 2010
(Dollars in millions)	Accruing Current		Accruing 30-89 Days Past Due		Accruing 90+ Days Past Due		Nonaccruing3		Total
Commercial loans:
Commercial & industrial1		$44,046		$111		$12		$584		$44,753
Commercial real estate		5,794		27		4		342		6,167
Commercial construction		1,595		11		1		961		2,568
Total commercial loans		51,435		149		17		1,887		53,488
Residential loans:
Residential mortgages - guaranteed		3,469		167		884		-		4,520
Residential mortgages - nonguaranteed2		21,916		456		44		1,543		23,959
Home equity products		16,162		234		-		355		16,751
Residential construction		953		42		6		290		1,291
Total residential loans		42,500		899		934		2,188		46,521
Consumer loans:
Guaranteed student loans		3,281		383		596		-		4,260
Other direct		1,692		15		5		10		1,722
Indirect		9,400		74		-		25		9,499
Credit cards		460		12		13		-		485
Total consumer loans		14,833		484		614		35		15,966
Total LHFI		$108,768		$1,532		$1,565		$4,110		$115,975

¹ Includes $4 million in loans carried at fair value.

² Includes $488 million in loans carried at fair value.

³ Total nonaccruing loans past due 90 days or more totaled $3.3 billion. Nonaccruing loans past due fewer than 90 days include modified nonaccrual loans reported as TDRs.

LHFI Considered Impaired

A loan is considered impaired when it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the agreement. Commercial nonaccrual loans greater than $4 million and certain consumer, residential, and commercial loans whose terms have been modified in a TDR are individually evaluated for impairment. Smaller-balance homogeneous loans that are collectively evaluated for impairment are not included in the following tables. Additionally, the tables below exclude student loans and residential mortgages that were guaranteed by government agencies and for which there was nominal risk of principal loss.

	As of June 30, 2011						For the Three Months Ended June 30, 2011				For the Six Months Ended June 30, 2011
(Dollars in millions)	Unpaid   Principal   Balance		Amortized   Cost1		Related   Allowance		Average   Amortized   Cost		Interest Income   Recognized2		Average   Amortized   Cost		Interest Income   Recognized2
Impaired loans with no related allowance recorded:
Commercial loans:
Commercial & industrial		$109		$100		$-		$102		$-		$103		$-
Commercial real estate		87		62		-		68		1		63		1
Commercial construction		62		51		-		94		1		102		2
Total commercial loans		258		213		-		264		2		268		3
Impaired loans with an allowance recorded:
Commercial loans:
Commercial & industrial		97		86		26		88		-		130		-
Commercial real estate		169		138		35		154		1		136		1
Commercial construction		394		300		104		321		-		356		1
Total commercial loans		660		524		165		563		1		622		2
Residential loans:
Residential mortgages - nonguaranteed		2,860		2,488		283		2,445		22		2,455		44
Home equity products		521		488		92		487		5		447		10
Residential construction		228		188		22		191		1		195		3
Total residential loans		3,609		3,164		397		3,123		28		3,097		57
Consumer loans:
Other direct		13		13		2		13		-		11		-
Total impaired loans		$4,540		$3,914		$564		$3,963		$31		$3,998		$62

¹ Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce the net book balance.

² Of the interest income recognized for the three and six months ended June 30, 2011, cash basis interest income was $7 million and $13 million, respectively.

	As of December 31, 2010
(Dollars in millions)	Unpaid     Principal     Balance		Amortized     Cost1		Related     Allowance
Impaired loans with no related allowance recorded:
Commercial loans:
Commercial & industrial		$86		$67		$-
Commercial real estate		110		86		-
Commercial construction		67		52		-
Total commercial loans		263		205		-
Impaired loans with an allowance recorded:
Commercial loans:
Commercial & industrial		123		96		18
Commercial real estate		103		81		19
Commercial construction		673		524		138
Total commercial loans		899		701		175
Residential loans:
Residential mortgages - nonguaranteed		2,785		2,467		309
Home equity products		503		503		93
Residential construction		226		196		26
Total residential loans		3,514		3,166		428
Consumer loans:
Other direct		11		11		2
Total impaired loans		$4,687		$4,083		$605

¹ Amortized cost reflects charge-offs that have been recognized plus other amounts that have been applied to reduce net book balance.

Nonperforming Assets

Nonperforming assets at June 30, 2011 and December 31, 2010 are shown in the following table:

(Dollars in millions)	June 30,   2011		December 31,   2010
Nonperforming Assets
Nonaccrual/NPLs:
Commercial loans:
Commercial & industrial1		$537		$584
Commercial real estate		399		342
Commercial construction		627		961
Residential loans:
Residential mortgages - nonguaranteed2		1,412		1,543
Home equity products		335		355
Residential construction		266		290
Consumer loans:
Other direct		9		10
Indirect		25		25
Total nonaccrual/NPLs		3,610		4,110
OREO3		483		596
Other repossessed assets		11		52
Total nonperforming assets		$4,104		$4,758

¹Includes $4 million of loans carried at fair value at June 30, 2011 and December 31, 2010, respectively.

²Includes $23 million and $24 million of loans carried at fair value at June 30, 2011 and December 31, 2010, respectively.

³Does not include foreclosed real estate related to loans insured by the FHA or the VA. Proceeds due from the FHA and the VA are recorded as a receivable in other assets until the funds are received and the property is conveyed. The receivable amount related to proceeds due from FHA or the VA totaled $175 million and $195 million at June 30, 2011 and December 31, 2010, respectively.