Loans (Tables)

9 Months Ended

Sep. 30, 2013

Receivables [Abstract]

Composition of Loans Held-for-Investment Portfolio

Table 4.1 below presents the composition of our portfolio of loans held for investment, which includes restricted loans for securitization investors, as of September 30, 2013 and December 31, 2012.

Table 4.1: Loan Portfolio Composition

(Dollars in millions)	September 30, 2013		December 31, 2012
Credit Card business:
Domestic credit card loans	$	69,538	$	82,328
International credit card loans		8,031		8,614
Total credit card loans		77,569		90,942
Domestic installment loans		398		813
Total credit card		77,967		91,755
Consumer Banking business:
Auto		30,803		27,123
Home loan		36,817		44,100
Other retail		3,665		3,904
Total consumer banking		71,285		75,127
Commercial Banking business:(1)
Commercial and multifamily real estate		19,523		17,732
Commercial and industrial		21,848		19,892
Total commercial lending		41,371		37,624
Small-ticket commercial real estate		1,028		1,196
Total commercial banking		42,399		38,820
Other:
Other loans		163		187
Total loans	$	191,814	$	205,889

⁽¹⁾  Includes construction loans and land development loans totaling $2.2 billion and $2.1 billion as of September 30, 2013 and December 31, 2012, respectively.

Aging of Held-for-Investment Loans by Portfolio Segment and Class

Table 4.2: Credit Quality

	September 30, 2013
(Dollars in millions)	Current			30-59 Days			60-89 Days			³ 90 Days			Total Delinquent Loans			Acquired Loans			Total Loans			³ 90 Days and Accruing(1)			Nonperforming Loans(1)
Credit Card:
Domestic credit card	$	67,440		$	812		$	549		$	1,062		$	2,423		$	73		$	69,936		$	1,062		$	0
International credit card		7,647			147			90			147			384			0			8,031			98			93
Total credit card		75,087			959			639			1,209			2,807			73			77,967			1,160			93
Consumer Banking:
Auto		28,708			1,351			585			153			2,089			6			30,803			0			153
Home loan		6,853			56			28			236			320			29,644			36,817			0			374
Retail banking		3,579			20			7			27			54			32			3,665			1			40
Total consumer banking		39,140			1,427			620			416			2,463			29,682			71,285			1			567
Commercial Banking:
Commercial and multifamily real estate		19,280			81			5			55			141			102			19,523			5			70
Commercial and industrial		21,599			21			2			38			61			188			21,848			1			116
Total commercial lending		40,879			102			7			93			202			290			41,371			6			186
Small-ticket commercial real estate		1,005			14			2			7			23			0			1,028			0			15
Total commercial banking		41,884			116			9			100			225			290			42,399			6			201
Other:
Other loans		107			4			3			14			21			35			163			0			21
Total	$	156,218		$	2,506		$	1,271		$	1,739		$	5,516		$	30,080		$	191,814		$	1,167		$	882
% of Total loans		81.4	%		1.3	%		0.7	%		0.9	%		2.9	%		15.7	%		100.0	%		0.6	%		0.5	%

	December 31, 2012
(Dollars in millions)	Current			30-59 Days			60-89 Days			³ 90 Days			Total Delinquent Loans			Acquired Loans			Total Loans			³ 90 Days and Accruing(1)			Nonperforming Loans(1)
Credit Card:
Domestic credit card	$	79,852		$	932		$	659		$	1,410		$	3,001		$	288		$	83,141		$	1,410		$	0
International credit card		8,227			145			89			153			387			0			8,614			100			100
Total credit card		88,079			1,077			748			1,563			3,388			288			91,755			1,510			100
Consumer Banking:
Auto		25,057			1,341			559			149			2,049			17			27,123			0			149
Home loan		7,317			63			29			288			380			36,403			44,100			0			422
Retail banking		3,789			26			10			45			81			34			3,904			1			71
Total consumer banking		36,163			1,430			598			482			2,510			36,454			75,127			1			642
Commercial Banking:
Commercial and multifamily real estate		17,357			64			77			107			248			127			17,732			2			137
Commercial and industrial		19,525			57			3			75			135			232			19,892			14			133
Total commercial lending		36,882			121			80			182			383			359			37,624			16			270
Small-ticket commercial real estate		1,153			28			9			6			43			0			1,196			0			12
Total commercial banking		38,035			149			89			188			426			359			38,820			16			282
Other:
Other loans		118			8			5			23			36			33			187			0			30
Total	$	162,395		$	2,664		$	1,440		$	2,256		$	6,360		$	37,134		$	205,889		$	1,527		$	1,054
% of Total loans		78.9	%		1.3	%		0.7	%		1.1	%		3.1	%		18.0	%		100.0	%		0.7	%		0.5	%

⁽¹⁾  Acquired loans are excluded from loans reported as 90 days and accruing interest as well as nonperforming loans.

Credit Card: Risk Profile by Geographic Region and Delinquency Status

The table below displays the geographic profile of our credit card loan portfolio and delinquency statistics as of as of September 30, 2013 and December 31, 2012. We also present comparative net charge-offs for the third quarter and first nine months of 2013 and 2012.

Table 4.3: Credit Card: Risk Profile by Geographic Region and Delinquency Status

	September 30, 2013
(Dollars in millions)	Loans		% of Total(1)			Acquired Loans		% of Total(1)			Total		% of Total(1)
Domestic credit card and installment loans:
California	$	7,585		9.7	%	$	7		0.0	%	$	7,592		9.7	%
New York		5,060		6.5			7		0.0			5,067		6.5
Texas		4,757		6.1			5		0.0			4,762		6.1
Florida		4,086		5.2			4		0.0			4,090		5.2
Illinois		3,441		4.4			3		0.0			3,444		4.4
Pennsylvania		3,253		4.2			3		0.0			3,256		4.2
Ohio		2,811		3.6			3		0.0			2,814		3.6
New Jersey		2,607		3.4			2		0.0			2,609		3.4
Michigan		2,478		3.2			2		0.0			2,480		3.2
Other		33,785		43.3			37		0.1			33,822		43.4
Total domestic credit card and installment loans		69,863		89.6			73		0.1			69,936		89.7
International credit card:
United Kingdom		3,447		4.4			0		0.0			3,447		4.4
Canada		4,584		5.9			0		0.0			4,584		5.9
Total international credit card		8,031		10.3			0		0.0			8,031		10.3
Total credit card and installment loans	$	77,894		99.9	%	$	73		0.1	%	$	77,967		100.0	%
Selected credit metrics:
30+ day delinquencies(2)	$	2,786		3.57	%	$	21		0.03	%	$	2,807		3.60	%
90+ day delinquencies(2)		1,201		1.54			8		0.01			1,209		1.55

	December 31, 2012
(Dollars in millions)	Loans		% of Total(1)			Acquired Loans		% of Total(1)			Total		% of Total(1)
Domestic credit card and installment loans:
California	$	9,245		10.0	%	$	31		0.1	%	$	9,276		10.1	%
Texas		5,910		6.5			23		0.0			5,933		6.5
New York		5,846		6.4			23		0.0			5,869		6.4
Florida		4,835		5.3			17		0.0			4,852		5.3
Illinois		4,100		4.5			15		0.0			4,115		4.5
Pennsylvania		3,861		4.2			14		0.0			3,875		4.2
Ohio		3,351		3.6			12		0.0			3,363		3.6
New Jersey		3,060		3.3			10		0.0			3,070		3.3
Michigan		2,917		3.2			11		0.0			2,928		3.2
Other		39,728		43.3			132		0.2			39,860		43.5
Total domestic credit card and installment loans		82,853		90.3			288		0.3			83,141		90.6
International credit card:
United Kingdom		3,678		4.0			0		0.0			3,678		4.0
Canada		4,936		5.4			0		0.0			4,936		5.4
Total international credit card		8,614		9.4			0		0.0			8,614		9.4
Total credit card and installment loans	$	91,467		99.7	%	$	288		0.3	%	$	91,755		100.0	%
Selected credit metrics:
30+ day delinquencies(2)	$	3,326		3.62	%	$	62		0.07	%	$	3,388		3.69	%
90+ day delinquencies(2)		1,530		1.67			33		0.03			1,563		1.70

⁽¹⁾  Percentages by geographic region within the domestic and international credit card portfolios are calculated based on the total held-for- investment credit card loans as of the end of the reported period.

⁽²⁾  Delinquency rates calculated by dividing delinquent credit card loans by the total balance of credit card loans held for investment as of the end of the reported period.

Credit Card: Net Charge-Offs

Table 4.4: Credit Card: Net Charge-offs

	Three Months Ended September 30,										Nine Months Ended September 30,
	2013					2012					2013					2012
(Dollars in millions)	Amount		Rate			Amount		Rate			Amount		Rate			Amount		Rate
Net charge-offs:
Domestic credit card	$	642		3.67	%	$	612		3.04	%	$	2,218		4.14	%	$	1,653		3.21	%
International credit card		92		4.71			101		4.95			288		4.79			328		5.32
Total(1)	$	734		3.78	%	$	713		3.22	%	$	2,506		4.20	%	$	1,981		3.43	%

⁽¹⁾  Calculated by dividing annualized net charge-offs by average credit card loans held for investment for the three and nine months ended September 30, 2013 and 2012.

Consumer Banking: Risk Profile by Geographic Region, Delinquency Status and Performing Status

The table below displays the geographic profile of our consumer banking loan portfolio, including acquired loans. We also present the delinquency and nonperforming loan rates of our consumer banking loan portfolio, excluding acquired loans, as of September 30, 2013 and December 31, 2012, and net charge-offs for the third quarter and first nine months of 2013 and 2012.

Table 4.5: Consumer Banking: Risk Profile by Geographic Region, Delinquency Status and Performing Status

(Dollars in millions)	September 30, 2013
	Loans					Acquired Loans					Total
	Loans		% of Total(1)			Loans		% of Total(1)			Loans		% of Total(1)
Auto:
Texas	$	4,624		6.5	%	$	0		0.0	%	$	4,624		6.5	%
California		3,159		4.4			0		0.0			3,159		4.4
Florida		1,949		2.7			0		0.0			1,949		2.7
Louisiana		1,663		2.3			0		0.0			1,663		2.3
Georgia		1,628		2.3			0		0.0			1,628		2.3
Illinois		1,244		1.8			0		0.0			1,244		1.8
Ohio		1,212		1.7			0		0.0			1,212		1.7
Other		15,318		21.5			6		0.0			15,324		21.5
Total auto		30,797		43.2			6		0.0			30,803		43.2
Home loan:
California		1,032		1.5			7,503		10.5			8,535		12.0
New York		1,539		2.2			1,322		1.9			2,861		4.1
Illinois		89		0.1			2,311		3.2			2,400		3.3
Maryland		413		0.6			1,568		2.2			1,981		2.8
New Jersey		366		0.5			1,460		2.1			1,826		2.6
Virginia		340		0.5			1,445		2.0			1,785		2.5
Florida		172		0.2			1,553		2.2			1,725		2.4
Other		3,222		4.5			12,482		17.5			15,704		22.0
Total home loan		7,173		10.1			29,644		41.6			36,817		51.7
Retail banking:
Louisiana		1,282		1.8			0		0.0			1,282		1.8
New York		859		1.2			0		0.0			859		1.2
Texas		780		1.1			0		0.0			780		1.1
New Jersey		271		0.4			0		0.0			271		0.4
Maryland		115		0.2			18		0.0			133		0.2
Virginia		85		0.1			10		0.0			95		0.1
California		38		0.0			0		0.0			38		0.0
Other		203		0.3			4		0.0			207		0.3
Total retail banking		3,633		5.1			32		0.0			3,665		5.1
Total consumer banking	$	41,603		58.4	%	$	29,682		41.6	%	$	71,285		100.0	%

	September 30, 2013
	Auto					Home Loan					Retail Banking					Total Consumer Banking
(Dollars in millions)	Amount		Rate			Amount		Rate			Amount		Rate			Amount		Rate
Credit performance:(2)
30+ day delinquencies	$	2,089		6.78	%	$	320		0.87	%	$	54		1.48	%	$	2,463		3.46	%
90+ day delinquencies		153		0.50			236		0.64			27		0.74			416		0.58
Nonperforming loans		153		0.50			374		1.01			40		1.10			567		0.79

	December 31, 2012
	Loans					Acquired Loans					Total
(Dollars in millions)	Loans		% of Total(1)			Loans		% of Total(1)			Loans		% of Total(1)
Auto:
Texas	$	4,317		5.7	%	$	0		0.0	%	$	4,317		5.7	%
California		2,676		3.6			0		0.0			2,676		3.6
Florida		1,621		2.1			0		0.0			1,621		2.1
Louisiana		1,504		2.0			0		0.0			1,504		2.0
Georgia		1,404		1.9			0		0.0			1,404		1.9
Illinois		1,134		1.5			0		0.0			1,134		1.5
Ohio		1,032		1.4			0		0.0			1,032		1.4
Other		13,418		17.8			17		0.1			13,435		17.9
Total auto		27,106		36.0			17		0.1			27,123		36.1
Home loan:
California		1,168		1.6			9,098		12.1			10,266		13.7
New York		1,678		2.2			1,598		2.1			3,276		4.3
Illinois		102		0.1			2,875		3.8			2,977		3.9
Maryland		403		0.5			1,878		2.5			2,281		3.0
New Jersey		402		0.5			1,717		2.3			2,119		2.8
Virginia		342		0.5			1,748		2.3			2,090		2.8
Florida		183		0.3			1,863		2.5			2,046		2.8
Other		3,419		4.6			15,626		20.8			19,045		25.4
Total home loan		7,697		10.3			36,403		48.4			44,100		58.7
Retail banking:
Louisiana		1,447		1.9			0		0.0			1,447		1.9
New York		864		1.2			0		0.0			864		1.2
Texas		844		1.1			0		0.0			844		1.1
New Jersey		312		0.4			0		0.0			312		0.4
Maryland		96		0.1			20		0.1			116		0.2
Virginia		78		0.1			9		0.0			87		0.1
California		47		0.1			0		0.0			47		0.1
Other		182		0.2			5		0.0			187		0.2
Total retail banking		3,870		5.1			34		0.1			3,904		5.2
Total consumer banking	$	38,673		51.4	%	$	36,454		48.6	%	$	75,127		100.0	%

	December 31, 2012
	Auto					Home Loan					Retail Banking					Total Consumer Banking
(Dollars in millions)	Amount		Rate			Amount		Rate			Amount		Rate			Amount		Rate
Credit performance:(2)
30+ day delinquencies	$	2,049		7.55	%	$	380		0.86	%	$	81		2.07	%	$	2,510		3.34	%
90+ day delinquencies		149		0.55			288		0.65			45		1.15			482		0.64
Nonperforming loans		149		0.55			422		0.96			71		1.82			642		0.85

⁽¹⁾  Percentages by geographic region are calculated based on the total held-for-investment consumer banking loans as of the end of the reported period.

⁽²⁾  Credit performance statistics exclude acquired loans, which were recorded at fair value at acquisition. Although acquired loans may be contractually delinquent, we separately track these loans and do not include them in our delinquency and nonperforming loan statistics as the fair value recorded at acquisition included an estimate of credit losses expected to be realized over the remaining lives of the loans.

Consumer Banking: Net Charge-Offs

Table 4.6: Consumer Banking: Net Charge-offs

	Three Months Ended September 30,										Nine Months Ended September 30,
	2013					2012					2013					2012
(Dollars in millions)	Amount		Rate			Amount		Rate			Amount		Rate			Amount		Rate
Net charge-offs:
Auto	$	152		2.01	%	$	115		1.79	%	$	366		1.69	%	$	262		1.44	%
Home Loan		5		0.06			32		0.28			13		0.04			59		0.19
Retail Banking		13		1.38			14		1.20			44		1.58			41		1.29
Total Consumer Banking(1)	$	170		0.95	%	$	161		0.83	%	$	423		0.77	%	$	362		0.69	%

⁽¹⁾  Calculated by dividing annualized net charge-offs by average loans held for investment for the three and nine months ended September 30, 2013 and 2012.

Home Loans: Risk Profile by Vintage, Geography, Lien Priority and Interest Rate Type

The following table presents the distribution of our home loan portfolio as of September 30, 2013 and December 31, 2012, based on selected key risk characteristics.

Table 4.7: Home Loan: Risk Profile by Vintage, Geography, Lien Priority and Interest Rate Type

(Dollars in millions)	September 30, 2013
	Loans					Acquired Loans					Total Home Loans
	Amount		% of Total(1)			Amount		% of Total(1)			Amount		% of Total(1)
Origination year:
< = 2005	$	2,984		8.1	%	$	4,203		11.4	%	$	7,187		19.5	%
2006		546		1.5			2,555		6.9			3,101		8.4
2007		387		1.0			5,451		14.8			5,838		15.8
2008		219		0.6			4,311		11.7			4,530		12.3
2009		135		0.4			2,697		7.3			2,832		7.7
2010		149		0.4			4,510		12.3			4,659		12.7
2011		269		0.7			4,990		13.6			5,259		14.3
2012		1,982		5.4			849		2.3			2,831		7.7
2013		502		1.4			78		0.2			580		1.6
Total	$	7,173		19.5	%	$	29,644		80.5	%	$	36,817		100.0	%
Geographic concentration:(2)
California	$	1,032		2.8	%	$	7,503		20.4	%	$	8,535		23.2	%
New York		1,539		4.2			1,322		3.6			2,861		7.8
Illinois		89		0.2			2,311		6.3			2,400		6.5
Maryland		413		1.1			1,568		4.3			1,981		5.4
New Jersey		366		1.0			1,460		4.0			1,826		5.0
Virginia		340		0.9			1,445		3.9			1,785		4.8
Florida		172		0.5			1,553		4.2			1,725		4.7
Arizona		92		0.2			1,506		4.1			1,598		4.3
Washington		103		0.3			1,374		3.7			1,477		4.0
Louisiana		1,307		3.6			50		0.1			1,357		3.7
Other		1,720		4.7			9,552		25.9			11,272		30.6
Total	$	7,173		19.5	%	$	29,644		80.5	%	$	36,817		100.0	%
Lien type:
1st lien	$	6,085		16.5	%	$	29,210		79.3	%	$	35,295		95.8	%
2nd lien		1,088		3.0			434		1.2			1,522		4.2
Total	$	7,173		19.5	%	$	29,644		80.5	%	$	36,817		100.0	%
Interest rate type:
Fixed rate	$	2,438		6.6	%	$	3,582		9.7	%	$	6,020		16.3	%
Adjustable rate		4,735		12.9			26,062		70.8			30,797		83.7
Total	$	7,173		19.5	%	$	29,644		80.5	%	$	36,817		100.0	%

	December 31, 2012
	Loans					Acquired Loans					Total Home Loans
(Dollars in millions)	Amount		% of Total(1)			Amount		% of Total(1)			Amount		% of Total(1)
Origination year:
< = 2005	$	3,483		7.9	%	$	4,858		11.0	%	$	8,341		18.9	%
2006		621		1.4			2,865		6.5			3,486		7.9
2007		446		1.0			6,189		14.0			6,635		15.0
2008		257		0.6			5,210		11.8			5,467		12.4
2009		167		0.4			3,438		7.8			3,605		8.2
2010		188		0.4			6,024		13.7			6,212		14.1
2011		324		0.7			6,705		15.2			7,029		15.9
2012		2,211		5.1			1,114		2.5			3,325		7.6
Total	$	7,697		17.5	%	$	36,403		82.5	%	$	44,100		100.0	%
Geographic concentration:(2)
California	$	1,168		2.7	%	$	9,098		20.6	%	$	10,266		23.3	%
New York		1,678		3.8			1,598		3.6			3,276		7.4
Illinois		102		0.2			2,875		6.5			2,977		6.7
Maryland		403		0.9			1,878		4.3			2,281		5.2
New Jersey		402		0.9			1,717		3.9			2,119		4.8
Virginia		342		0.8			1,748		4.0			2,090		4.8
Florida		183		0.4			1,863		4.2			2,046		4.6
Arizona		95		0.2			1,828		4.1			1,923		4.3
Washington		113		0.3			1,766		4.0			1,879		4.3
Colorado		126		0.3			1,594		3.6			1,720		3.9
Other		3,085		7.0			10,438		23.7			13,523		30.7
Total	$	7,697		17.5	%	$	36,403		82.5	%	$	44,100		100.0	%
Lien type:
1st lien	$	6,502		14.8	%	$	35,905		81.4	%	$	42,407		96.2	%
2nd lien		1,195		2.7			498		1.1			1,693		3.8
Total	$	7,697		17.5	%	$	36,403		82.5	%	$	44,100		100.0	%
Interest rate type:
Fixed rate	$	2,534		5.8	%	$	4,037		9.1	%	$	6,571		14.9	%
Adjustable rate		5,163		11.7			32,366		73.4			37,529		85.1
Total	$	7,697		17.5	%	$	36,403		82.5	%	$	44,100		100.0	%

⁽¹⁾  Percentages within each risk category calculated based on total held-for-investment home loans.

⁽²⁾  Represents the ten states in which we have the highest concentration of home loans.

Commercial Banking: Risk Profile by Geographic Region and Internal Risk Rating

The following table presents the geographic distribution and internal risk ratings of our commercial loan portfolio as of September 30, 2013 and December 31, 2012.

Table 4.8: Commercial Banking: Risk Profile by Geographic Region and Internal Risk Rating

	September 30, 2013
(Dollars in millions)	Commercial & Multifamily Real Estate		% of Total(1)			Commercial and Industrial		% of Total(1)			Small-ticket Commercial Real Estate		% of Total(1)			Total Commercial		% of Total(1)
Geographic concentration:(2)
Loans:
Northeast	$	13,849		70.9	%	$	5,619		25.7	%	$	619		60.2	%	$	20,087		47.4	%
Mid-Atlantic		1,865		9.6			1,318		6.0			36		3.5			3,219		7.6
South		2,321		11.9			9,998		45.8			62		6.0			12,381		29.2
Other		1,386		7.1			4,725		21.6			311		30.3			6,422		15.1
Loans		19,421		99.5			21,660		99.1			1,028		100.0			42,109		99.3
Acquired loans		102		0.5			188		0.9			0		0.0			290		0.7
Total	$	19,523		100.0	%	$	21,848		100.0	%	$	1,028		100.0	%	$	42,399		100.0	%
Internal risk rating:(3)
Loans:
Noncriticized	$	18,859		96.6	%	$	21,078		96.5	%	$	1,003		97.5	%	$	40,940		96.5	%
Criticized performing		492		2.5			466		2.1			10		1.0			968		2.3
Criticized nonperforming		70		0.4			116		0.5			15		1.5			201		0.5
Loans		19,421		99.5			21,660		99.1			1,028		100.0			42,109		99.3
Acquired loans:
Noncriticized		73		0.4			168		0.8			0		0.0			241		0.6
Criticized performing		29		0.1			20		0.1			0		0.0			49		0.1
Total acquired loans		102		0.5			188		0.9			0		0.0			290		0.7
Total	$	19,523		100.0	%	$	21,848		100.0	%	$	1,028		100.0	%	$	42,399		100.0	%

	December 31, 2012
(Dollars in millions)	Commercial & Multifamily Real Estate		% of Total(1)			Commercial and Industrial		% of Total(1)			Small-ticket Commercial Real Estate		% of Total(1)			Total Commercial		% of Total(1)
Geographic concentration:(2)
Loans:
Northeast	$	13,299		75.0	%	$	5,460		27.4	%	$	723		60.5	%	$	19,482		50.2	%
Mid-Atlantic		1,398		7.9			1,149		5.8			47		3.9			2,594		6.7
South		2,055		11.6			9,182		46.2			72		6.0			11,309		29.1
Other		853		4.8			3,869		19.4			354		29.6			5,076		13.1
Loans		17,605		99.3			19,660		98.8			1,196		100.0			38,461		99.1
Acquired loans		127		0.7			232		1.2			0		0.0			359		0.9
Total	$	17,732		100.0	%	$	19,892		100.0	%	$	1,196		100.0	%	$	38,820		100.0	%
Internal risk rating:(3)
Loans:
Noncriticized	$	16,614		93.7	%	$	19,073		95.9	%	$	1,152		96.3	%	$	36,839		94.9	%
Criticized performing		853		4.8			454		2.3			33		2.8			1,340		3.5
Criticized nonperforming		138		0.8			133		0.6			11		0.9			282		0.7
Loans		17,605		99.3			19,660		98.8			1,196		100.0			38,461		99.1
Acquired loans:
Noncriticized		77		0.4			228		1.2			0		0.0			305		0.8
Criticized performing		50		0.3			4		0.0			0		0.0			54		0.1
Total acquired loans		127		0.7			232		1.2			0		0.0			359		0.9
Total	$	17,732		100.0	%	$	19,892		100.0	%	$	1,196		100.0	%	$	38,820		100.0	%

⁽¹⁾  Percentages calculated based on total held-for-investment commercial loans in each respective loan category as of the end of the reported period.

⁽²⁾ Northeast consists of CT, ME, MA, NH, NJ, NY, PA and VT. Mid-Atlantic consists of DE, DC, MD, VA and WV. South consists of AL, AR, FL, GA, KY, LA, MS, MO, NC, SC, TN and TX.

⁽³⁾  Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by banking regulatory authorities.

Individually Impaired Loans, Excluding Acquired Loans

The following table presents information about our impaired loans, excluding acquired loans, which are reported separately and discussed below as of September 30, 2013 and December 31, 2012:

Table 4.9: Impaired Loans

	September 30, 2013
(Dollars in millions)	With an Allowance		Without an Allowance		Total Recorded Investment		Related Allowance		Net Recorded Investment		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
Credit card and installment loans:
Domestic credit card and installment loans	$	623	$	0	$	623	$	145	$	478	$	607	$	656	$	50
International credit card and installment loans		168		0		168		104		64		161		169		8
Total credit card and installment loans(1)		791		0		791		249		542		768		825		58
Consumer banking:
Auto		163		175		338		16		322		563		330		46
Home loan		217		0		217		17		200		255		184		5
Retail banking		68		23		91		18		73		233		94		2
Total consumer banking		448		198		646		51		595		1,051		608		53
Commercial banking:
Commercial and multifamily real estate		78		93		171		4		167		154		237		0
Commercial and industrial		108		99		207		15		192		267		227		1
Total commercial lending		186		192		378		19		359		421		464		1
Small-ticket commercial real estate		16		0		16		7		9		24		19		0
Total commercial banking		202		192		394		26		368		445		483		1
Total	$	1,441	$	390	$	1,831	$	326	$	1,505	$	2,264	$	1,916	$	112

	December 31, 2012
(Dollars in millions)	With an Allowance		Without an Allowance		Total Recorded Investment		Related Allowance		Net Recorded Investment		Unpaid Principal Balance		Average Recorded Investment		Interest Income Recognized
Credit card and installment loans:
Domestic credit card and installment loans	$	701	$	0	$	701	$	230	$	471	$	678	$	687	$	70
International credit card and installment loans		172		0		172		101		71		164		192		11
Total credit card and installment loans(1)		873		0		873		331		542		842		879		81
Consumer banking:
Auto		169		159		328		20		308		606		130		31
Home loan		145		0		145		13		132		167		120		4
Retail banking		61		35		96		7		89		118		88		3
Total consumer banking		375		194		569		40		529		891		338		38
Commercial banking:
Commercial and multifamily real estate		168		112		280		32		248		315		353		8
Commercial and industrial		152		92		244		22		222		277		227		6
Total commercial lending		320		204		524		54		470		592		580		14
Small-ticket commercial real estate		3		11		14		1		13		21		23		0
Total commercial banking		323		215		538		55		483		613		603		14
Total	$	1,571	$	409	$	1,980	$	426	$	1,554	$	2,346	$	1,820	$	133

⁽¹⁾  Credit card and installment loans include finance charges and fees.

TDR Disclosures in Progress Financial Impact of Modification

The following tables present the types, amounts and financial effects of loans modified and accounted for as troubled debt restructurings during the period:

Table 4.10: Troubled Debt Restructurings

			Three Months Ended September 30, 2013
			Reduced Interest Rate						Term Extension					Balance Reduction
(Dollars in millions)	Total Loans Modified(1)		% of TDR Activity(2)(8)			Average Rate Reduction(3)			% of TDR Activity(4)(8)			Average Term Extension (Months)(5)		% of TDR Activity(6)(8)			Gross Balance Reduction(7)
Credit card:
Domestic credit card	$	80		100	%		11.24	%		0	%		0		0	%	$	0
International credit card		46		100			25.26			0			0		0			0
Total credit card		126		100			16.34			0			0		0			0
Consumer banking:
Auto		73		32			1.04			54			9		45			30
Home loan		10		45			3.33			58			25		13			0
Retail banking		6		9			3.89			60			6		0			0
Total consumer banking		89		31			1.45			55			11		38			30
Commercial banking:
Commercial and multifamily real estate		18		67			1.74			54			43		0			0
Commercial and industrial		15		0			0.00			100			7		0			0
Total commercial lending		33		36			1.74			75			21		0			0
Small-ticket commercial real estate		4		0			0.00			0			0		0			0
Total commercial banking		37		32			1.74			67			21		0			0
Total	$	252		66	%		12.79	%		29	%		14		14	%	$	30

			Nine Months Ended September 30, 2013
			Reduced Interest Rate						Term Extension					Balance Reduction
(Dollars in millions)	Total Loans Modified(1)		% of TDR Activity(2)(8)			Average Rate Reduction(3)			% of TDR Activity(4)(8)			Average Term Extension (Months)(5)		% of TDR Activity(6)(8)			Gross Balance Reduction(7)
Credit card:
Domestic credit card	$	234		100	%		11.90	%		0	%		0		0	%	$	0
International credit card		144		100			24.89			0			0		0			0
Total credit card		378		100			16.85			0			0		0			0
Consumer banking:
Auto		196		31			1.53			54			9		45			79
Home loan		78		23			2.95			18			99		22			3
Retail banking		25		6			3.61			61			8		0			0
Total consumer banking		299		27			1.89			45			18		35			82
Commercial banking:
Commercial and multifamily real estate		50		24			1.74			76			16		0			0
Commercial and industrial		31		0			0			68			7		1			0
Total commercial lending		81		15			1.74			73			13		0			0
Small-ticket commercial real estate		5		0			0			0			0		0			0
Total commercial banking		86		14			1.74			69			13		0			0
Total	$	763		62	%		13.93	%		25	%		16		14	%	$	82

			Three Months Ended September 30, 2012
			Reduced Interest Rate						Term Extension					Balance Reduction
(Dollars in millions)	Total Loans Modified(1)		% of TDR Activity(2)(8)			Average Rate Reduction(3)			% of TDR Activity(4)(8)			Average Term Extension (Months)(5)		% of TDR Activity(6)(8)			Gross Balance Reduction(7)
Credit card:
Domestic credit card	$	109		100	%		11.77	%		0	%		0		0	%	$	0
International credit card		51		99			24.38			0			0		0			0
Total credit card		160		100			15.82			0			0		0			0
Consumer banking:
Auto		213		73			10.62			76			17		89			143
Home loan		41		83			2.96			79			148		67			9
Retail banking		5		7			1.30			95			7		0			0
Total consumer banking		259		73			9.25			77			38		84			152
Commercial banking:
Commercial and multifamily real estate		1		0			0.00			100			24		0			0
Commercial and industrial		33		10			1.11			98			20		0			0
Total commercial lending		34		10			1.11			98			20		0			0
Small-ticket commercial real estate		0		0			0.00			0			0		0			0
Total commercial banking		34		10			1.11			98			20		0			0
Total	$	453		78	%		12.15	%		51	%		35		48	%	$	152

			Nine Months Ended September 30, 2012
			Reduced Interest Rate						Term Extension					Balance Reduction
(Dollars in millions)	Total Loans Modified(1)		% of TDR Activity(2)(8)			Average Rate Reduction(3)			% of  TDR Activity(4)(8)			Average Term Extension (Months)(5)		% of TDR Activity(6)(8)			Gross Balance Reduction(7)
Credit card:
Domestic credit card	$	254		100	%		11.24	%		0	%		0		0	%	$	0
International credit card		166		99			24.17			0			0		0			0
Total credit card		420		100			15.39			0			0		0			0
Consumer banking:
Auto		258		73			9.07			80			15		74			143
Home loan		58		67			2.49			72			131		49			9
Retail banking		19		2			1.72			99			10		0			0
Total consumer banking		335		68			7.93			80			33		65			152
Commercial banking:
Commercial and multifamily real estate		29		16			1.72			100			10		0			0
Commercial and industrial		99		7			4.18			98			15		0			0
Total commercial lending		128		9			3.24			99			14		0			0
Small-ticket commercial real estate		0		0			0.00			0			0		0			0
Total commercial banking		128		9			3.24			99			14		0			0
Total	$	883		75	%		12.60	%		44	%		27		25	%	$	152

⁽¹⁾  Represents total loans modified and accounted for as a TDR during the period. Paydowns, charge-offs and any other changes in the loan carrying value subsequent to the loan entering TDR status are not reflected.

⁽²⁾  Percentage of loans modified and accounted for as a TDR during the period that were granted a reduced interest rate.

⁽³⁾  Weighted average interest rate reduction for those loans that received an interest rate concession.

⁽⁴⁾  Percentage of loans modified and accounted for as a TDR during the period that were granted a maturity date extension.

⁽⁵⁾  Weighted average change in maturity date for those loans that received a maturity date extension.

⁽⁶⁾  Percentage of loans modified and accounted for as a TDR during the period that were granted forgiveness or forbearance of a portion of their balance.

⁽⁷⁾  Total amount represents the gross balance forgiven. For loans modified in bankruptcy, the gross balance reduction represents collateral value write downs associated with the discharge of the borrower’s obligations.

⁽⁸⁾  Due to multiple concessions granted to some troubled borrowers, percentages may total more than 100% for certain loan types.

TDR - Subsequent Payment Defaults of Completed TDR Modifications

The following table presents the type, number and amount of loans accounted for as TDRs that experienced a payment default during the period and had completed a modification event in the twelve months prior to the payment default. A payment default occurs if the loan is either 90 days or more delinquent or the loan has been charged-off as of the end of the period presented.

Table 4.11: TDR—Subsequent Payment Defaults

	Three Months Ended September 30, 2013				Nine Months Ended September 30, 2013
(Dollars in millions)	Number of Contracts		Total Loans		Number of Contracts		Total Loans
Credit card:
Domestic credit card		10,114	$	16		28,957	$	53
International credit card(1)		12,641		36		35,769		104
Total credit card		22,755		52		64,726		157
Consumer banking:
Auto		2,321		17		7,178		49
Home loan		7		1		25		2
Retail banking		41		3		99		5
Total consumer banking		2,369		21		7,302		56
Commercial banking:
Commercial and multifamily real estate		3		4		10		15
Commercial and industrial		13		11		20		19
Total commercial lending		16		15		30		34
Small-ticket commercial real estate		0		0		1		0
Total commercial banking		16		15		31		34
Total		25,140	$	88		72,059	$	247

	Three Months Ended September 30, 2012				Nine Months Ended September 30, 2012
(Dollars in millions)	Number of Contracts		Total Loans		Number of Contracts		Total Loans
Credit card:
Domestic credit card		12,314	$	22		30,484	$	61
International credit card(1)		11,903		40		36,956		127
Total credit card		24,217		62		67,440		188
Consumer banking:
Auto		1,121		10		2,986		27
Home loan		12		1		79		7
Retail banking		14		2		83		9
Total consumer banking		1,147		13		3,148		43
Commercial banking:
Commercial and multifamily real estate		0		0		5		8
Commercial and industrial		4		2		12		17
Total commercial lending		4		2		17		25
Small-ticket commercial real estate		0		0		3		2
Total commercial banking		4		2		20		27
Total		25,368	$	77		70,608	$	258

⁽¹⁾  The regulatory regime in the U.K. requires U.K. credit card businesses to accept payment plan proposals even when the proposed payments are less than the contractual minimum amount. As a result, loans entering long-term TDR payment programs in the U.K. typically continue to age and ultimately charge-off even when fully in compliance with the TDR program terms.

Outstanding Balance and Carrying Value of Acquired Loans

The table below presents the outstanding contractual balance and the carrying value of loans from the CCB, ING Direct and 2012 U.S. card acquisitions accounted for based on expected cash flows as of September 30, 2013 and December 31, 2012. The table displays separately loans considered credit-impaired at acquisition and loans not considered credit-impaired at acquisition.

Table 4.12: Acquired Loans

	September 30, 2013						December 31, 2012
(Dollars in millions)	Total		Impaired Loans		Non- Impaired Loans		Total		Impaired Loans		Non- Impaired Loans
Contractual balance	$	32,266	$	5,318	$	26,948	$	39,321	$	6,195	$	33,126
Carrying value(1)	$	30,125	$	3,447	$	26,678	$	37,109	$	4,069	$	33,040

⁽¹⁾  Includes $32 million and $57 million of cumulative impairment as of September 30, 2013 and December 31, 2012, respectively.

Changes in Accretable Yield of Acquired Loans

The following table presents changes in the accretable yield on loans related to the CCB, ING Direct, and 2012 U.S. card acquisitions:

Table 4.13: Changes in Accretable Yield on Acquired Loans

(Dollars in millions)	Total Loans			Impaired Loans			Non- Impaired Loans
Accretable yield as of December 31, 2011	$	1,752		$	1,566		$	186
Acquired loans accretable yield(1)		5,616			306			5,310
Accretion recognized in earnings		(1,316	)		(390	)		(926	)
Reclassifications from nonaccretable difference for loans with improving cash flows(2)(3)		860			448			412
Reductions in accretable yield for non-credit related changes in expected cash flows(4)		(704	)		(31	)		(673	)
Accretable yield as of December 31, 2012	$	6,208		$	1,899		$	4,309
Accretion recognized in earnings		(879	)		(313	)		(566	)
Reclassifications from nonaccretable difference for loans with improving cash flows(2)		883			538			345
Increases/(Reductions) in accretable yield for non-credit related changes in expected cash flows(4)		397			(25	)		422
Accretable yield as of September 30, 2013	$	6,609		$	2,099		$	4,510

⁽¹⁾  Includes revised acquisition date accretable yield for ING Direct acquired loans.

⁽²⁾  Represents increases in accretable yields for those pools with increases that are primarily the result of improved credit performance.

⁽³⁾  Includes the implementation of the 2012 OCC update to the Bank Accounting Advisory Series, which requires write-down of performing consumer loans restructured in bankruptcy to collateral value. Includes reductions of $28 million and $44 million for purchased credit-impaired loans and non-impaired loans, respectively.

⁽⁴⁾  Represents changes in accretable yields for those pools with reductions that are driven primarily by changes in actual and estimated prepayments.