Branch Assets and Liabilities Held for Sale

3 Months Ended

Mar. 31, 2012

Discontinued Operations, Branch Assets and Liabilities Held for Sale and Exit from Taxpayer Financial Services Loan Program [Abstract]

Branch Assets and Liabilities Held for Sale

3.    Branch Assets and Liabilities Held for Sale

On July 31, 2011, we announced that we had reached an agreement with First Niagara Bank, N.A. (“First Niagara”) to sell 195 retail branches, including certain loans, deposits and related branch premises, primarily located in upstate New York. The agreement includes the transfer of approximately $15.3 billion in deposits and

$2.4 billion in loans as of March 31, 2012, as well as related branch premises, for a premium of 6.67 percent of the deposits, representing $1.0 billion based on current deposit levels, which will result in an after-tax gain upon closing of the transaction, net of allocated non-deductible goodwill, of approximately $170 million. Branch premises will be sold for fair value and loans and other transferred assets will be sold at their book values. Regulatory approvals have been received and the all-cash transaction is expected to close in stages beginning in May 2012. As a result of this transaction, the assets and liabilities related to the branches being sold have been classified as held for sale in our consolidated balance sheet.

The following summarizes the assets and liabilities classified as held for sale at March 31, 2012 and December 31, 2011 in our consolidated balance sheet related to the announced agreement to sell certain retail branches.

	March 31, 2012		December 31, 2011
	(in millions)
Loans held for sale(1)	$	2,354	$	2,495
Other branch assets held for sale:
Properties and equipment, net		43		42
Other assets		42		-
Goodwill allocated to retail branch disposal group		398		398
Total other branch assets held for sale		483		440
Total branch assets held for sale	$	2,837	$	2,935
Deposits held for sale	$	15,277	$	15,144
Other branch liabilities held for sale		10		11
Total branch liabilities held for sale	$	15,287	$	15,155

⁽¹⁾  Loans held for sale includes $497 million of commercial loans, $1.3 billion of residential mortgages, $388 million of credit card loans and $144 million in other consumer loans at March 31, 2012. Loans held for sale includes $521 million of commercial loans, $1.4 billion of residential mortgages, $416 million of credit card loans and $161 million in other consumer loans at December 31, 2011.