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Large accelerated filer
ü
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Accelerated filer
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Non-accelerated filer
(do not check if a smaller
reporting company)
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Smaller reporting company
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Bank of America Corporation
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March 31, 2013
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Form 10-Q
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INDEX
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Page
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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Executive Summary
|
|
Business Overview
|
Table 1
|
|||||||
Selected Financial Data
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions, except per share information)
|
2013
|
|
2012
|
||||
Income statement
|
|
|
|
||||
Revenue, net of interest expense (FTE basis)
(1)
|
$
|
23,408
|
|
|
$
|
22,485
|
|
Net income
|
1,483
|
|
|
653
|
|
||
Diluted earnings per common share
|
0.10
|
|
|
0.03
|
|
||
Dividends paid per common share
|
0.01
|
|
|
0.01
|
|
||
Performance ratios
|
|
|
|
||||
Return on average assets
|
0.27
|
%
|
|
0.12
|
%
|
||
Return on average tangible shareholders' equity
(1)
|
3.69
|
|
|
1.67
|
|
||
Efficiency ratio (FTE basis)
(1)
|
83.31
|
|
|
85.13
|
|
||
Asset quality
|
|
|
|
||||
Allowance for loan and lease losses at period end
|
$
|
22,441
|
|
|
$
|
32,211
|
|
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at period end
(2)
|
2.49
|
%
|
|
3.61
|
%
|
||
Nonperforming loans, leases and foreclosed properties at period end
(2)
|
$
|
22,842
|
|
|
$
|
27,790
|
|
Net charge-offs
(3)
|
2,517
|
|
|
4,056
|
|
||
Annualized net charge-offs as a percentage of average loans and leases outstanding
(2, 3)
|
1.14
|
%
|
|
1.80
|
%
|
||
Annualized net charge-offs as a percentage of average loans and leases outstanding, excluding the purchased credit-impaired loan portfolio
(2)
|
1.18
|
|
|
1.87
|
|
||
Annualized net charge-offs and purchased credit-impaired write-offs as a percentage of average loans and leases outstanding
(2, 4)
|
1.52
|
|
|
1.80
|
|
||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs
(3)
|
2.20
|
|
|
1.97
|
|
||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs, excluding the purchased credit-impaired loan portfolio
|
1.76
|
|
|
1.43
|
|
||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs and purchased credit-impaired write-offs
(4)
|
1.65
|
|
|
1.97
|
|
||
|
|
|
|
||||
|
March 31
2013 |
|
December 31
2012 |
||||
Balance sheet
|
|
|
|
||||
Total loans and leases
|
$
|
911,592
|
|
|
$
|
907,819
|
|
Total assets
|
2,174,819
|
|
|
2,209,974
|
|
||
Total deposits
|
1,095,183
|
|
|
1,105,261
|
|
||
Total common shareholders' equity
|
218,513
|
|
|
218,188
|
|
||
Total shareholders' equity
|
237,293
|
|
|
236,956
|
|
||
Capital ratios
(5)
|
|
|
|
||||
Tier 1 common capital
|
10.49
|
%
|
|
11.06
|
%
|
||
Tier 1 capital
|
12.22
|
|
|
12.89
|
|
||
Total capital
|
15.50
|
|
|
16.31
|
|
||
Tier 1 leverage
|
7.49
|
|
|
7.37
|
|
(1)
|
Fully taxable-equivalent (FTE) basis, return on average tangible shareholders' equity and the efficiency ratio are non-GAAP financial measures. Other companies may define or calculate these measures differently. For additional information on these measures and ratios, and a corresponding reconciliation to GAAP financial measures, see
Supplemental Financial Data
on page
16
.
|
(2)
|
Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see
Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans and Foreclosed Properties Activity
on page
89
and corresponding
Table 38
, and
Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity
on page
98
and corresponding
Table 47
.
|
(3)
|
Net charge-offs exclude
$839 million
of write-offs in the purchased credit-impaired loan portfolio for the
three months ended March 31, 2013
. These write-offs decreased the purchased credit-impaired valuation allowance included as part of the allowance for loan and lease losses. For information on purchased credit-impaired write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
83
.
|
(4)
|
There were no write-offs of purchased credit-impaired loans in the
three months ended March 31, 2012
.
|
(5)
|
Presents capital ratios in accordance with the Basel 1 – 2013 Rules, which includes the Market Risk Final Rule at
March 31, 2013
. Basel 1 did not include the Basel 1 – 2013 Rules at
December 31, 2012
.
|
First Quarter 2013 Economic and Business Environment
|
Recent Events
|
Performance Overview
|
Table 2
|
|||||||
Summary Income Statement
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Net interest income (FTE basis)
(1)
|
$
|
10,875
|
|
|
$
|
11,053
|
|
Noninterest income
|
12,533
|
|
|
11,432
|
|
||
Total revenue, net of interest expense (FTE basis)
(1)
|
23,408
|
|
|
22,485
|
|
||
Provision for credit losses
|
1,713
|
|
|
2,418
|
|
||
Noninterest expense
|
19,500
|
|
|
19,141
|
|
||
Income before income taxes
|
2,195
|
|
|
926
|
|
||
Income tax expense (FTE basis)
(1)
|
712
|
|
|
273
|
|
||
Net income
|
1,483
|
|
|
653
|
|
||
Preferred stock dividends
|
373
|
|
|
325
|
|
||
Net income applicable to common shareholders
|
$
|
1,110
|
|
|
$
|
328
|
|
|
|
|
|
||||
Per common share information
|
|
|
|
||||
Earnings
|
$
|
0.10
|
|
|
$
|
0.03
|
|
Diluted earnings
|
0.10
|
|
|
0.03
|
|
(1)
|
FTE basis is a non-GAAP financial measure. For additional information on this measure and for a corresponding reconciliation to GAAP financial measures, see
Supplemental Financial Data
on page
16
.
|
Financial Highlights
|
Table 3
|
|||||||
Noninterest Income
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Card income
|
$
|
1,410
|
|
|
$
|
1,457
|
|
Service charges
|
1,799
|
|
|
1,912
|
|
||
Investment and brokerage services
|
3,027
|
|
|
2,876
|
|
||
Investment banking income
|
1,535
|
|
|
1,217
|
|
||
Equity investment income
|
563
|
|
|
765
|
|
||
Trading account profits
|
2,989
|
|
|
2,075
|
|
||
Mortgage banking income
|
1,263
|
|
|
1,612
|
|
||
Gains on sales of debt securities
|
68
|
|
|
752
|
|
||
Other loss
|
(112
|
)
|
|
(1,194
|
)
|
||
Net impairment losses recognized in earnings on AFS debt securities
|
(9
|
)
|
|
(40
|
)
|
||
Total noninterest income
|
$
|
12,533
|
|
|
$
|
11,432
|
|
•
|
Service charges
decreased
$113 million
primarily due to a shift in product mix on consumer checking accounts and lower commercial banking fees.
|
•
|
Investment and brokerage services income
increased
$151 million
primarily driven by higher market levels and long-term assets under management (AUM) flows.
|
•
|
Investment banking income
increased
$318 million
due to an increase in capital markets underwriting and advisory fees.
|
•
|
Equity investment income
decreased
$202 million
due primarily to lower gains in our Global Principal Investments (GPI) portfolio.
|
•
|
Trading account profits
increased
$914 million
. Net DVA losses on derivatives were
$54 million
for the
three months ended March 31, 2013
compared to
$1.5 billion
a year ago. Excluding net DVA, trading account profits
decreased
$491 million
primarily due to decreases within our fixed income, currencies and commodities (FICC) businesses reflecting less favorable market conditions primarily in credit-related products and commodities.
|
•
|
Mortgage banking income
decreased
$349 million
primarily driven by a decrease in servicing income due to a smaller servicing portfolio and to a lesser extent, a decline in core production income.
|
•
|
Other loss of
$112 million
in the current-year period decreased from a loss a year ago of
$1.2 billion
primarily driven by lower negative fair value adjustments on our structured liabilities of
$90 million
compared to
$3.3 billion
a year ago, partially offset by
$1.2 billion
of gains related to subordinated debt repurchases and exchanges of trust preferred securities a year ago.
|
Table 4
|
|||||||
Noninterest Expense
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Personnel
|
$
|
9,891
|
|
|
$
|
10,188
|
|
Occupancy
|
1,154
|
|
|
1,142
|
|
||
Equipment
|
550
|
|
|
611
|
|
||
Marketing
|
429
|
|
|
465
|
|
||
Professional fees
|
649
|
|
|
783
|
|
||
Amortization of intangibles
|
276
|
|
|
319
|
|
||
Data processing
|
812
|
|
|
856
|
|
||
Telecommunications
|
409
|
|
|
400
|
|
||
Other general operating
|
5,330
|
|
|
4,377
|
|
||
Total noninterest expense
|
$
|
19,500
|
|
|
$
|
19,141
|
|
Balance Sheet Overview
|
|||||||||||||||
|
|||||||||||||||
Table 5
|
|||||||||||||||
Selected Balance Sheet Data
|
|||||||||||||||
|
|
|
|
|
Average Balance
|
||||||||||
|
March 31
2013 |
|
December 31
2012 |
|
Three Months Ended
March 31 |
||||||||||
(Dollars in millions)
|
|
|
2013
|
|
2012
|
||||||||||
Assets
|
|
|
|
|
|
|
|
||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
220,623
|
|
|
$
|
219,924
|
|
|
$
|
237,463
|
|
|
$
|
233,061
|
|
Trading account assets
|
223,028
|
|
|
227,775
|
|
|
239,964
|
|
|
193,359
|
|
||||
Debt securities
|
354,709
|
|
|
360,331
|
|
|
356,399
|
|
|
341,619
|
|
||||
Loans and leases
|
911,592
|
|
|
907,819
|
|
|
906,259
|
|
|
913,722
|
|
||||
Allowance for loan and lease losses
|
(22,441
|
)
|
|
(24,179
|
)
|
|
(23,593
|
)
|
|
(33,210
|
)
|
||||
All other assets
|
487,308
|
|
|
518,304
|
|
|
495,938
|
|
|
538,623
|
|
||||
Total assets
|
$
|
2,174,819
|
|
|
$
|
2,209,974
|
|
|
$
|
2,212,430
|
|
|
$
|
2,187,174
|
|
Liabilities
|
|
|
|
|
|
|
|
||||||||
Deposits
|
$
|
1,095,183
|
|
|
$
|
1,105,261
|
|
|
$
|
1,075,280
|
|
|
$
|
1,030,112
|
|
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
248,149
|
|
|
293,259
|
|
|
300,938
|
|
|
256,405
|
|
||||
Trading account liabilities
|
90,547
|
|
|
73,587
|
|
|
92,047
|
|
|
71,872
|
|
||||
Short-term borrowings
|
42,148
|
|
|
30,731
|
|
|
36,706
|
|
|
36,651
|
|
||||
Long-term debt
|
279,641
|
|
|
275,585
|
|
|
273,999
|
|
|
363,518
|
|
||||
All other liabilities
|
181,858
|
|
|
194,595
|
|
|
196,465
|
|
|
196,050
|
|
||||
Total liabilities
|
1,937,526
|
|
|
1,973,018
|
|
|
1,975,435
|
|
|
1,954,608
|
|
||||
Shareholders' equity
|
237,293
|
|
|
236,956
|
|
|
236,995
|
|
|
232,566
|
|
||||
Total liabilities and shareholders' equity
|
$
|
2,174,819
|
|
|
$
|
2,209,974
|
|
|
$
|
2,212,430
|
|
|
$
|
2,187,174
|
|
Table 6
|
|
|
|
|
|||||||||||||||
Selected Quarterly Financial Data
|
|
|
|
|
|||||||||||||||
|
2013 Quarter
|
|
2012 Quarters
|
||||||||||||||||
(In millions, except per share information)
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||
Income statement
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
$
|
10,664
|
|
|
$
|
10,324
|
|
|
$
|
9,938
|
|
|
$
|
9,548
|
|
|
$
|
10,846
|
|
Noninterest income
|
12,533
|
|
|
8,336
|
|
|
10,490
|
|
|
12,420
|
|
|
11,432
|
|
|||||
Total revenue, net of interest expense
|
23,197
|
|
|
18,660
|
|
|
20,428
|
|
|
21,968
|
|
|
22,278
|
|
|||||
Provision for credit losses
|
1,713
|
|
|
2,204
|
|
|
1,774
|
|
|
1,773
|
|
|
2,418
|
|
|||||
Noninterest expense
|
19,500
|
|
|
18,360
|
|
|
17,544
|
|
|
17,048
|
|
|
19,141
|
|
|||||
Income (loss) before income taxes
|
1,984
|
|
|
(1,904
|
)
|
|
1,110
|
|
|
3,147
|
|
|
719
|
|
|||||
Income tax expense (benefit)
|
501
|
|
|
(2,636
|
)
|
|
770
|
|
|
684
|
|
|
66
|
|
|||||
Net income
|
1,483
|
|
|
732
|
|
|
340
|
|
|
2,463
|
|
|
653
|
|
|||||
Net income (loss) applicable to common shareholders
|
1,110
|
|
|
367
|
|
|
(33
|
)
|
|
2,098
|
|
|
328
|
|
|||||
Average common shares issued and outstanding
|
10,799
|
|
|
10,777
|
|
|
10,776
|
|
|
10,776
|
|
|
10,651
|
|
|||||
Average diluted common shares issued and outstanding
(1)
|
11,155
|
|
|
10,885
|
|
|
10,776
|
|
|
11,556
|
|
|
10,762
|
|
|||||
Performance ratios
|
|
|
|
|
|
|
|
|
|
||||||||||
Return on average assets
|
0.27
|
%
|
|
0.13
|
%
|
|
0.06
|
%
|
|
0.45
|
%
|
|
0.12
|
%
|
|||||
Four quarter trailing return on average assets
(2)
|
0.23
|
|
|
0.19
|
|
|
0.25
|
|
|
0.51
|
|
|
n/m
|
|
|||||
Return on average common shareholders' equity
|
2.06
|
|
|
0.67
|
|
|
n/m
|
|
|
3.89
|
|
|
0.62
|
|
|||||
Return on average tangible common shareholders' equity
(3)
|
3.12
|
|
|
1.01
|
|
|
n/m
|
|
|
5.95
|
|
|
0.95
|
|
|||||
Return on average tangible shareholders' equity
(3)
|
3.69
|
|
|
1.77
|
|
|
0.84
|
|
|
6.16
|
|
|
1.67
|
|
|||||
Total ending equity to total ending assets
|
10.91
|
|
|
10.72
|
|
|
11.02
|
|
|
10.92
|
|
|
10.66
|
|
|||||
Total average equity to total average assets
|
10.71
|
|
|
10.79
|
|
|
10.86
|
|
|
10.73
|
|
|
10.63
|
|
|||||
Dividend payout
|
9.75
|
|
|
29.33
|
|
|
n/m
|
|
|
5.60
|
|
|
34.97
|
|
|||||
Per common share data
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings
|
$
|
0.10
|
|
|
$
|
0.03
|
|
|
$
|
0.00
|
|
|
$
|
0.19
|
|
|
$
|
0.03
|
|
Diluted earnings
(1)
|
0.10
|
|
|
0.03
|
|
|
0.00
|
|
|
0.19
|
|
|
0.03
|
|
|||||
Dividends paid
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|||||
Book value
|
20.19
|
|
|
20.24
|
|
|
20.40
|
|
|
20.16
|
|
|
19.83
|
|
|||||
Tangible book value
(3)
|
13.36
|
|
|
13.36
|
|
|
13.48
|
|
|
13.22
|
|
|
12.87
|
|
|||||
Market price per share of common stock
|
|
|
|
|
|
|
|
|
|
||||||||||
Closing
|
$
|
12.18
|
|
|
$
|
11.61
|
|
|
$
|
8.83
|
|
|
$
|
8.18
|
|
|
$
|
9.57
|
|
High closing
|
12.78
|
|
|
11.61
|
|
|
9.55
|
|
|
9.68
|
|
|
9.93
|
|
|||||
Low closing
|
11.03
|
|
|
8.93
|
|
|
7.04
|
|
|
6.83
|
|
|
5.80
|
|
|||||
Market capitalization
|
$
|
131,817
|
|
|
$
|
125,136
|
|
|
$
|
95,163
|
|
|
$
|
88,155
|
|
|
$
|
103,123
|
|
(1)
|
Due to a net loss applicable to common shareholders for the third quarter of 2012, the impact of antidilutive equity instruments was excluded from diluted earnings per share and average diluted common shares.
|
(2)
|
Calculated as total net income for four consecutive quarters divided by annualized average assets for four consecutive quarters.
|
(3)
|
Tangible equity ratios and tangible book value per share of common stock are non-GAAP financial measures. Other companies may define or calculate these measures differently. For additional information on these ratios and for corresponding reconciliations to GAAP financial measures, see
Supplemental Financial Data
on page
16
.
|
(4)
|
For more information on the impact of the purchased credit-impaired loan portfolio on asset quality, see
Consumer Portfolio Credit Risk Management
on page
72
.
|
(5)
|
Includes the allowance for loan and lease losses and the reserve for unfunded lending commitments.
|
(6)
|
Balances and ratios do not include loans accounted for under the fair value option. For additional exclusions from nonperforming loans, leases and foreclosed properties, see
Consumer Portfolio Credit Risk Management – Nonperforming Consumer Loans and Foreclosed Properties Activity
on page
89
and corresponding Table
38
, and
Commercial Portfolio Credit Risk Management – Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity
on page
98
and corresponding Table
47
.
|
(7)
|
Primarily includes amounts allocated to the U.S. credit card and unsecured consumer lending portfolios in
CBB
, purchased credit-impaired loans and the non-U.S. credit card portfolio in
All Other
.
|
(8)
|
Net charge-offs exclude
$839 million
,
$1.1 billion
and
$1.7 billion
of write-offs in the purchased credit-impaired loan portfolio for the
first
quarter of
2013
and the
fourth
and
third
quarters of
2012
. These write-offs decreased the purchased credit-impaired valuation allowance included as part of the allowance for loan and lease losses. For more information on purchased credit-impaired write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
83
.
|
(9)
|
There were no write-offs in the purchased credit-impaired loan portfolio for the second and first quarters of 2012.
|
(10)
|
Presents capital ratios in accordance with the Basel 1 – 2013 Rules at
March 31, 2013
. Basel 1 did not include the Basel 1 – 2013 Rules at
December 31, 2012
.
|
Table 6
|
|
|
|
|
|||||||||||||||
Selected Quarterly Financial Data (continued)
|
|
|
|
|
|||||||||||||||
|
2013 Quarter
|
|
2012 Quarters
|
||||||||||||||||
(Dollars in millions)
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||
Average balance sheet
|
|
|
|
|
|
|
|
|
|
||||||||||
Total loans and leases
|
$
|
906,259
|
|
|
$
|
893,166
|
|
|
$
|
888,859
|
|
|
$
|
899,498
|
|
|
$
|
913,722
|
|
Total assets
|
2,212,430
|
|
|
2,210,365
|
|
|
2,173,312
|
|
|
2,194,563
|
|
|
2,187,174
|
|
|||||
Total deposits
|
1,075,280
|
|
|
1,078,076
|
|
|
1,049,697
|
|
|
1,032,888
|
|
|
1,030,112
|
|
|||||
Long-term debt
|
273,999
|
|
|
277,894
|
|
|
291,684
|
|
|
333,173
|
|
|
363,518
|
|
|||||
Common shareholders' equity
|
218,225
|
|
|
219,744
|
|
|
217,273
|
|
|
216,782
|
|
|
214,150
|
|
|||||
Total shareholders' equity
|
236,995
|
|
|
238,512
|
|
|
236,039
|
|
|
235,558
|
|
|
232,566
|
|
|||||
Asset quality
(4)
|
|
|
|
|
|
|
|
|
|
||||||||||
Allowance for credit losses
(5)
|
$
|
22,927
|
|
|
$
|
24,692
|
|
|
$
|
26,751
|
|
|
$
|
30,862
|
|
|
$
|
32,862
|
|
Nonperforming loans, leases and foreclosed properties
(6)
|
22,842
|
|
|
23,555
|
|
|
24,925
|
|
|
25,377
|
|
|
27,790
|
|
|||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding
(6)
|
2.49
|
%
|
|
2.69
|
%
|
|
2.96
|
%
|
|
3.43
|
%
|
|
3.61
|
%
|
|||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases
(6)
|
102
|
|
|
107
|
|
|
111
|
|
|
127
|
|
|
126
|
|
|||||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the PCI loan portfolio
(5)
|
82
|
|
|
82
|
|
|
81
|
|
|
90
|
|
|
91
|
|
|||||
Amounts included in allowance that are excluded from nonperforming loans and leases
(7)
|
$
|
10,690
|
|
|
$
|
12,021
|
|
|
$
|
13,978
|
|
|
$
|
16,327
|
|
|
$
|
17,006
|
|
Allowance as a percentage of total nonperforming loans and leases, excluding amounts included in the allowance that are excluded from nonperforming loans and leases
(7)
|
53
|
%
|
|
54
|
%
|
|
52
|
%
|
|
59
|
%
|
|
60
|
%
|
|||||
Net charge-offs
(8)
|
$
|
2,517
|
|
|
$
|
3,104
|
|
|
$
|
4,122
|
|
|
$
|
3,626
|
|
|
$
|
4,056
|
|
Annualized net charge-offs as a percentage of average loans and leases outstanding
(6, 8)
|
1.14
|
%
|
|
1.40
|
%
|
|
1.86
|
%
|
|
1.64
|
%
|
|
1.80
|
%
|
|||||
Annualized net charge-offs as a percentage of average loans and leases outstanding, excluding the PCI loan portfolio
(6)
|
1.18
|
|
|
1.44
|
|
|
1.93
|
|
|
1.69
|
|
|
1.87
|
|
|||||
Annualized net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding
(6, 9)
|
1.52
|
|
|
1.90
|
|
|
2.63
|
|
|
1.64
|
|
|
1.80
|
|
|||||
Nonperforming loans and leases as a percentage of total loans and leases outstanding
(6)
|
2.44
|
|
|
2.52
|
|
|
2.68
|
|
|
2.70
|
|
|
2.85
|
|
|||||
Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties
(6)
|
2.53
|
|
|
2.62
|
|
|
2.81
|
|
|
2.87
|
|
|
3.10
|
|
|||||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs
(8)
|
2.20
|
|
|
1.96
|
|
|
1.60
|
|
|
2.08
|
|
|
1.97
|
|
|||||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs, excluding the PCI loan portfolio
|
1.76
|
|
|
1.51
|
|
|
1.17
|
|
|
1.46
|
|
|
1.43
|
|
|||||
Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs and PCI write-offs
(9)
|
1.65
|
|
|
1.44
|
|
|
1.13
|
|
|
2.08
|
|
|
1.97
|
|
|||||
Capital ratios (period end)
(10)
|
|
|
|
|
|
|
|
|
|
||||||||||
Risk-based capital:
|
|
|
|
|
|
|
|
|
|
||||||||||
Tier 1 common capital
|
10.49
|
%
|
|
11.06
|
%
|
|
11.41
|
%
|
|
11.24
|
%
|
|
10.78
|
%
|
|||||
Tier 1 capital
|
12.22
|
|
|
12.89
|
|
|
13.64
|
|
|
13.80
|
|
|
13.37
|
|
|||||
Total capital
|
15.50
|
|
|
16.31
|
|
|
17.16
|
|
|
17.51
|
|
|
17.49
|
|
|||||
Tier 1 leverage
|
7.49
|
|
|
7.37
|
|
|
7.84
|
|
|
7.84
|
|
|
7.79
|
|
|||||
Tangible equity
(3)
|
7.78
|
|
|
7.62
|
|
|
7.85
|
|
|
7.73
|
|
|
7.48
|
|
|||||
Tangible common equity
(3)
|
6.88
|
|
|
6.74
|
|
|
6.95
|
|
|
6.83
|
|
|
6.58
|
|
|
|
|
|
Supplemental Financial Data
|
•
|
Return on average tangible common shareholders' equity measures our earnings contribution as a percentage of adjusted common shareholders' equity. The tangible common equity ratio represents adjusted common shareholders' equity divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities.
|
•
|
Return on average tangible shareholders' equity measures our earnings contribution as a percentage of adjusted average total shareholders' equity. The tangible equity ratio represents adjusted total shareholders' equity divided by total assets less goodwill and intangible assets (excluding MSRs), net of related deferred tax liabilities.
|
•
|
Tangible book value per common share represents adjusted ending common shareholders' equity divided by ending common shares outstanding.
|
Table 7
|
|||||||||||||||||||
Quarterly Supplemental Financial Data and Reconciliations to GAAP Financial Measures
|
|||||||||||||||||||
|
2013 Quarter
|
|
2012 Quarters
|
||||||||||||||||
(Dollars in millions)
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||
Fully taxable-equivalent basis data
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
$
|
10,875
|
|
|
$
|
10,555
|
|
|
$
|
10,167
|
|
|
$
|
9,782
|
|
|
$
|
11,053
|
|
Total revenue, net of interest expense
|
23,408
|
|
|
18,891
|
|
|
20,657
|
|
|
22,202
|
|
|
22,485
|
|
|||||
Net interest yield
(1)
|
2.43
|
%
|
|
2.35
|
%
|
|
2.32
|
%
|
|
2.21
|
%
|
|
2.51
|
%
|
|||||
Efficiency ratio
|
83.31
|
|
|
97.19
|
|
|
84.93
|
|
|
76.79
|
|
|
85.13
|
|
(1)
|
Calculation includes fees earned on overnight deposits placed with the Federal Reserve and, beginning in the third quarter of
2012
, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, of
$33 million
for the
first quarter of 2013
, and
$42 million
,
$48 million
,
$52 million
and
$47 million
for the fourth, third, second and first quarters of
2012
, respectively.
|
Table 7
|
|||||||||||||||||||
Quarterly Supplemental Financial Data and Reconciliations to GAAP Financial Measures (continued)
|
|||||||||||||||||||
|
2013 Quarter
|
|
2012 Quarters
|
||||||||||||||||
(Dollars in millions)
|
First
|
|
Fourth
|
|
Third
|
|
Second
|
|
First
|
||||||||||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
||||||||||
Net interest income
|
$
|
10,664
|
|
|
$
|
10,324
|
|
|
$
|
9,938
|
|
|
$
|
9,548
|
|
|
$
|
10,846
|
|
Fully taxable-equivalent adjustment
|
211
|
|
|
231
|
|
|
229
|
|
|
234
|
|
|
207
|
|
|||||
Net interest income on a fully taxable-equivalent basis
|
$
|
10,875
|
|
|
$
|
10,555
|
|
|
$
|
10,167
|
|
|
$
|
9,782
|
|
|
$
|
11,053
|
|
Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
||||||||||
Total revenue, net of interest expense
|
$
|
23,197
|
|
|
$
|
18,660
|
|
|
$
|
20,428
|
|
|
$
|
21,968
|
|
|
$
|
22,278
|
|
Fully taxable-equivalent adjustment
|
211
|
|
|
231
|
|
|
229
|
|
|
234
|
|
|
207
|
|
|||||
Total revenue, net of interest expense on a fully taxable-equivalent basis
|
$
|
23,408
|
|
|
$
|
18,891
|
|
|
$
|
20,657
|
|
|
$
|
22,202
|
|
|
$
|
22,485
|
|
Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis
|
|
|
|
|
|
|
|
|
|
||||||||||
Income tax expense (benefit)
|
$
|
501
|
|
|
$
|
(2,636
|
)
|
|
$
|
770
|
|
|
$
|
684
|
|
|
$
|
66
|
|
Fully taxable-equivalent adjustment
|
211
|
|
|
231
|
|
|
229
|
|
|
234
|
|
|
207
|
|
|||||
Income tax expense (benefit) on a fully taxable-equivalent basis
|
$
|
712
|
|
|
$
|
(2,405
|
)
|
|
$
|
999
|
|
|
$
|
918
|
|
|
$
|
273
|
|
Reconciliation of average common shareholders' equity to average tangible common shareholders' equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shareholders' equity
|
$
|
218,225
|
|
|
$
|
219,744
|
|
|
$
|
217,273
|
|
|
$
|
216,782
|
|
|
$
|
214,150
|
|
Goodwill
|
(69,945
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|
(69,967
|
)
|
|||||
Intangible assets (excluding MSRs)
|
(6,549
|
)
|
|
(6,874
|
)
|
|
(7,194
|
)
|
|
(7,533
|
)
|
|
(7,869
|
)
|
|||||
Related deferred tax liabilities
|
2,425
|
|
|
2,490
|
|
|
2,556
|
|
|
2,626
|
|
|
2,700
|
|
|||||
Tangible common shareholders' equity
|
$
|
144,156
|
|
|
$
|
145,384
|
|
|
$
|
142,659
|
|
|
$
|
141,899
|
|
|
$
|
139,014
|
|
Reconciliation of average shareholders' equity to average tangible shareholders' equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' equity
|
$
|
236,995
|
|
|
$
|
238,512
|
|
|
$
|
236,039
|
|
|
$
|
235,558
|
|
|
$
|
232,566
|
|
Goodwill
|
(69,945
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|
(69,967
|
)
|
|||||
Intangible assets (excluding MSRs)
|
(6,549
|
)
|
|
(6,874
|
)
|
|
(7,194
|
)
|
|
(7,533
|
)
|
|
(7,869
|
)
|
|||||
Related deferred tax liabilities
|
2,425
|
|
|
2,490
|
|
|
2,556
|
|
|
2,626
|
|
|
2,700
|
|
|||||
Tangible shareholders' equity
|
$
|
162,926
|
|
|
$
|
164,152
|
|
|
$
|
161,425
|
|
|
$
|
160,675
|
|
|
$
|
157,430
|
|
Reconciliation of period-end common shareholders' equity to period-end tangible common shareholders' equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Common shareholders' equity
|
$
|
218,513
|
|
|
$
|
218,188
|
|
|
$
|
219,838
|
|
|
$
|
217,213
|
|
|
$
|
213,711
|
|
Goodwill
|
(69,930
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|||||
Intangible assets (excluding MSRs)
|
(6,379
|
)
|
|
(6,684
|
)
|
|
(7,030
|
)
|
|
(7,335
|
)
|
|
(7,696
|
)
|
|||||
Related deferred tax liabilities
|
2,363
|
|
|
2,428
|
|
|
2,494
|
|
|
2,559
|
|
|
2,628
|
|
|||||
Tangible common shareholders' equity
|
$
|
144,567
|
|
|
$
|
143,956
|
|
|
$
|
145,326
|
|
|
$
|
142,461
|
|
|
$
|
138,667
|
|
Reconciliation of period-end shareholders' equity to period-end tangible shareholders' equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Shareholders' equity
|
$
|
237,293
|
|
|
$
|
236,956
|
|
|
$
|
238,606
|
|
|
$
|
235,975
|
|
|
$
|
232,499
|
|
Goodwill
|
(69,930
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|||||
Intangible assets (excluding MSRs)
|
(6,379
|
)
|
|
(6,684
|
)
|
|
(7,030
|
)
|
|
(7,335
|
)
|
|
(7,696
|
)
|
|||||
Related deferred tax liabilities
|
2,363
|
|
|
2,428
|
|
|
2,494
|
|
|
2,559
|
|
|
2,628
|
|
|||||
Tangible shareholders' equity
|
$
|
163,347
|
|
|
$
|
162,724
|
|
|
$
|
164,094
|
|
|
$
|
161,223
|
|
|
$
|
157,455
|
|
Reconciliation of period-end assets to period-end tangible assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets
|
$
|
2,174,819
|
|
|
$
|
2,209,974
|
|
|
$
|
2,166,162
|
|
|
$
|
2,160,854
|
|
|
$
|
2,181,449
|
|
Goodwill
|
(69,930
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|
(69,976
|
)
|
|||||
Intangible assets (excluding MSRs)
|
(6,379
|
)
|
|
(6,684
|
)
|
|
(7,030
|
)
|
|
(7,335
|
)
|
|
(7,696
|
)
|
|||||
Related deferred tax liabilities
|
2,363
|
|
|
2,428
|
|
|
2,494
|
|
|
2,559
|
|
|
2,628
|
|
|||||
Tangible assets
|
$
|
2,100,873
|
|
|
$
|
2,135,742
|
|
|
$
|
2,091,650
|
|
|
$
|
2,086,102
|
|
|
$
|
2,106,405
|
|
|
|
|
|
Table 8
|
|||||||
Segment Supplemental Financial Data Reconciliations to GAAP Financial Measures
(1)
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Consumer & Business Banking
|
|
|
|
||||
Reported net income
|
$
|
1,382
|
|
|
$
|
1,445
|
|
Adjustment related to intangibles
(2)
|
2
|
|
|
3
|
|
||
Adjusted net income
|
$
|
1,384
|
|
|
$
|
1,448
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
58,388
|
|
|
$
|
52,890
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(30,388
|
)
|
|
(30,522
|
)
|
||
Average allocated capital/economic capital
|
$
|
28,000
|
|
|
$
|
22,368
|
|
|
|
|
|
||||
Global Banking
|
|
|
|
||||
Reported net income
|
$
|
1,338
|
|
|
$
|
1,573
|
|
Adjustment related to intangibles
(2)
|
1
|
|
|
1
|
|
||
Adjusted net income
|
$
|
1,339
|
|
|
$
|
1,574
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
49,828
|
|
|
$
|
45,060
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(24,828
|
)
|
|
(24,860
|
)
|
||
Average allocated capital/economic capital
|
$
|
25,000
|
|
|
$
|
20,200
|
|
|
|
|
|
||||
Global Markets
|
|
|
|
||||
Reported net income
|
$
|
1,169
|
|
|
$
|
828
|
|
Adjustment related to intangibles
(2)
|
2
|
|
|
2
|
|
||
Adjusted net income
|
$
|
1,171
|
|
|
$
|
830
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
34,645
|
|
|
$
|
19,032
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(4,645
|
)
|
|
(4,648
|
)
|
||
Average allocated capital/economic capital
|
$
|
30,000
|
|
|
$
|
14,384
|
|
|
|
|
|
||||
Global Wealth & Investment Management
|
|
|
|
||||
Reported net income
|
$
|
720
|
|
|
$
|
550
|
|
Adjustment related to intangibles
(2)
|
4
|
|
|
6
|
|
||
Adjusted net income
|
$
|
724
|
|
|
$
|
556
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
20,323
|
|
|
$
|
16,822
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(10,323
|
)
|
|
(10,402
|
)
|
||
Average allocated capital/economic capital
|
$
|
10,000
|
|
|
$
|
6,420
|
|
(1)
|
There are no adjustments to reported net income (loss) or average allocated equity for
CRES
.
|
(2)
|
Represents cost of funds, earnings credits and certain expenses related to intangibles.
|
(3)
|
Average allocated equity is comprised of average allocated capital (or economic capital prior to 2013) plus capital for the portion of goodwill and intangibles specifically assigned to the business segment. For more information on allocated capital and economic capital, see
Business Segment Operations
on page
25
and
Note 9 – Goodwill and Intangible Assets
to the Consolidated Financial Statements
.
|
Table 8
|
|||||||
Segment Supplemental Financial Data Reconciliations to GAAP Financial Measures (continued)
(1)
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
|
|
|
|
||||
Consumer & Business Banking
|
|
|
|
||||
Deposits
|
|
|
|
||||
Reported net income
|
$
|
398
|
|
|
$
|
403
|
|
Adjustment related to intangibles
(2)
|
—
|
|
|
—
|
|
||
Adjusted net income
|
$
|
398
|
|
|
$
|
403
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
35,407
|
|
|
$
|
32,219
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(20,007
|
)
|
|
(20,030
|
)
|
||
Average allocated capital/economic capital
|
$
|
15,400
|
|
|
$
|
12,189
|
|
|
|
|
|
||||
Card Services
|
|
|
|
||||
Reported net income
|
$
|
984
|
|
|
$
|
1,042
|
|
Adjustment related to intangibles
(2)
|
2
|
|
|
3
|
|
||
Adjusted net income
|
$
|
986
|
|
|
$
|
1,045
|
|
|
|
|
|
||||
Average allocated equity
(3)
|
$
|
22,981
|
|
|
$
|
20,671
|
|
Adjustment related to goodwill and a percentage of intangibles
|
(10,381
|
)
|
|
(10,492
|
)
|
||
Average allocated capital/economic capital
|
$
|
12,600
|
|
|
$
|
10,179
|
|
Net Interest Income Excluding Trading-related Net Interest Income
|
Table 9
|
|||||||
Net Interest Income Excluding Trading-related Net Interest Income
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Net interest income (FTE basis)
|
|
|
|
||||
As reported
(1)
|
$
|
10,875
|
|
|
$
|
11,053
|
|
Impact of trading-related net interest income
|
(1,010
|
)
|
|
(796
|
)
|
||
Net interest income excluding trading-related net interest income
(2)
|
$
|
9,865
|
|
|
$
|
10,257
|
|
Average earning assets
|
|
|
|
||||
As reported
|
$
|
1,800,786
|
|
|
$
|
1,768,105
|
|
Impact of trading-related earning assets
|
(497,730
|
)
|
|
(424,414
|
)
|
||
Average earning assets excluding trading-related earning assets
(2)
|
$
|
1,303,056
|
|
|
$
|
1,343,691
|
|
Net interest yield contribution (FTE basis)
(3)
|
|
|
|
||||
As reported
(1)
|
2.43
|
%
|
|
2.51
|
%
|
||
Impact of trading-related activities
|
0.62
|
|
|
0.55
|
|
||
Net interest yield on earning assets excluding trading-related activities
(2)
|
3.05
|
%
|
|
3.06
|
%
|
(1)
|
Net interest income and net interest yield include fees earned on overnight deposits placed with the Federal Reserve and, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, of
$33 million
and
$47 million
for the
three months ended March 31, 2013 and 2012
.
|
(2)
|
Represents a non-GAAP financial measure.
|
(3)
|
Calculated on an annualized basis.
|
Table 10
|
|||||||||||||||||||||
Quarterly Average Balances and Interest Rates – FTE Basis
|
|||||||||||||||||||||
|
First Quarter 2013
|
|
Fourth Quarter 2012
|
||||||||||||||||||
(Dollars in millions)
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
||||||||||
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Time deposits placed and other short-term investments
(1)
|
$
|
16,129
|
|
|
$
|
46
|
|
|
1.17
|
%
|
|
$
|
16,967
|
|
|
$
|
50
|
|
|
1.14
|
%
|
Federal funds sold and securities borrowed or purchased under agreements to resell
|
237,463
|
|
|
315
|
|
|
0.54
|
|
|
241,950
|
|
|
329
|
|
|
0.54
|
|
||||
Trading account assets
|
194,364
|
|
|
1,380
|
|
|
2.87
|
|
|
186,252
|
|
|
1,362
|
|
|
2.91
|
|
||||
Debt securities
(2)
|
356,399
|
|
|
2,556
|
|
|
2.87
|
|
|
360,213
|
|
|
2,201
|
|
|
2.44
|
|
||||
Loans and leases
(3)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Residential mortgage
(4)
|
258,772
|
|
|
2,342
|
|
|
3.62
|
|
|
256,729
|
|
|
2,293
|
|
|
3.57
|
|
||||
Home equity
|
105,797
|
|
|
995
|
|
|
3.80
|
|
|
110,105
|
|
|
1,067
|
|
|
3.86
|
|
||||
U.S. credit card
|
91,712
|
|
|
2,249
|
|
|
9.95
|
|
|
92,849
|
|
|
2,336
|
|
|
10.01
|
|
||||
Non-U.S. credit card
|
11,027
|
|
|
329
|
|
|
12.10
|
|
|
13,081
|
|
|
383
|
|
|
11.66
|
|
||||
Direct/Indirect consumer
(5)
|
82,364
|
|
|
620
|
|
|
3.06
|
|
|
82,583
|
|
|
662
|
|
|
3.19
|
|
||||
Other consumer
(6)
|
1,666
|
|
|
19
|
|
|
4.36
|
|
|
1,602
|
|
|
19
|
|
|
4.57
|
|
||||
Total consumer
|
551,338
|
|
|
6,554
|
|
|
4.79
|
|
|
556,949
|
|
|
6,760
|
|
|
4.84
|
|
||||
U.S. commercial
|
210,706
|
|
|
1,666
|
|
|
3.20
|
|
|
209,496
|
|
|
1,729
|
|
|
3.28
|
|
||||
Commercial real estate
(7)
|
39,179
|
|
|
326
|
|
|
3.38
|
|
|
38,192
|
|
|
341
|
|
|
3.55
|
|
||||
Commercial lease financing
|
23,534
|
|
|
236
|
|
|
4.01
|
|
|
22,839
|
|
|
184
|
|
|
3.23
|
|
||||
Non-U.S. commercial
|
81,502
|
|
|
467
|
|
|
2.32
|
|
|
65,690
|
|
|
433
|
|
|
2.62
|
|
||||
Total commercial
|
354,921
|
|
|
2,695
|
|
|
3.07
|
|
|
336,217
|
|
|
2,687
|
|
|
3.18
|
|
||||
Total loans and leases
|
906,259
|
|
|
9,249
|
|
|
4.12
|
|
|
893,166
|
|
|
9,447
|
|
|
4.21
|
|
||||
Other earning assets
|
90,172
|
|
|
733
|
|
|
3.29
|
|
|
90,388
|
|
|
771
|
|
|
3.40
|
|
||||
Total earning assets
(8)
|
1,800,786
|
|
|
14,279
|
|
|
3.20
|
|
|
1,788,936
|
|
|
14,160
|
|
|
3.16
|
|
||||
Cash and cash equivalents
(1)
|
92,846
|
|
|
33
|
|
|
|
|
111,671
|
|
|
42
|
|
|
|
||||||
Other assets, less allowance for loan and lease losses
|
318,798
|
|
|
|
|
|
|
309,758
|
|
|
|
|
|
||||||||
Total assets
|
$
|
2,212,430
|
|
|
|
|
|
|
$
|
2,210,365
|
|
|
|
|
|
(1)
|
For this presentation, fees earned on overnight deposits placed with the Federal Reserve are included in the cash and cash equivalents line, consistent with the Consolidated Balance Sheet presentation of these deposits. In addition, beginning in the third quarter of 2012, fees earned on deposits, primarily overnight, placed with certain non-U.S. central banks, which are included in the time deposits placed and other short-term investments line in prior periods, have been included in the cash and cash equivalents line. Net interest income and net interest yield are calculated excluding these fees.
|
(2)
|
Yields on debt securities carried at fair value are calculated based on fair value rather than the cost basis. The use of fair value does not have a material impact on net interest yield.
|
(3)
|
Nonperforming loans are included in the respective average loan balances. Income on these nonperforming loans is recognized on a cost recovery basis. PCI loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the loan.
|
(4)
|
Includes non-U.S. residential mortgage loans of
$90 million
in the
first
quarter of
2013
, and
$93 million
,
$92 million
,
$89 million
and
$86 million
in the
fourth
,
third
,
second
and
first
quarters of
2012
, respectively.
|
(5)
|
Includes non-U.S. consumer loans of
$7.7 billion
in the
first
quarter of
2013
, and
$8.1 billion
,
$7.8 billion
,
$7.8 billion
and
$7.5 billion
in the
fourth
,
third
,
second
and
first
quarters of
2012
, respectively.
|
(6)
|
Includes consumer finance loans of
$1.4 billion
in the
first
quarter of
2013
, and
$1.4 billion
,
$1.5 billion
,
$1.6 billion
and
$1.6 billion
in the
fourth
,
third
,
second
and
first
quarters of
2012
, respectively; other non-U.S. consumer loans of
$5 million
in the
first
quarter of
2013
, and
$4 million
,
$997 million
,
$895 million
and
$903 million
in the
fourth
,
third
,
second
and
first
quarters of
2012
, respectively; and consumer overdrafts of
$142 million
in the
first
quarter of
2013
, and
$156 million
,
$158 million
,
$108 million
and
$90 million
in the
fourth
,
third
,
second
and
first
quarters of
2012
, respectively.
|
(7)
|
Includes U.S. commercial real estate loans of
$37.7 billion
in the
first
quarter of
2013
, and
$36.7 billion
,
$35.4 billion
,
$36.0 billion
and
$37.4 billion
in the
fourth
,
third
,
second
and
first
quarters of
2012
, respectively; and non-U.S. commercial real estate loans of
$1.5 billion
in the
first
quarter of
2013
, and
$1.5 billion
,
$1.5 billion
,
$1.6 billion
and
$1.8 billion
in the
fourth
,
third
,
second
and
first
quarters of
2012
, respectively.
|
(8)
|
Interest income includes the impact of interest rate risk management contracts, which decreased interest income on the underlying assets by
$141 million
in the
first
quarter of
2013
, and
$146 million
,
$136 million
,
$366 million
and
$106 million
in the
fourth
,
third
,
second
and
first
quarters of
2012
, respectively. Interest expense includes the impact of interest rate risk management contracts, which decreased interest expense on the underlying liabilities by
$618 million
in the
first
quarter of
2013
, and
$598 million
,
$454 million
,
$591 million
and
$658 million
in the
fourth
,
third
,
second
and
first
quarters of
2012
, respectively. For further information on interest rate contracts, see Interest Rate Risk Management for Nontrading Activities on page
118
.
|
Table 10
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Quarterly Average Balances and Interest Rates – FTE Basis (continued)
|
||||||||||||||||||||||||||||||||
|
Third Quarter 2012
|
|
Second Quarter 2012
|
|
First Quarter 2012
|
|||||||||||||||||||||||||||
(Dollars in millions)
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|||||||||||||||
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Time deposits placed and other short-term investments
(1)
|
$
|
15,849
|
|
|
$
|
58
|
|
|
1.47
|
%
|
|
$
|
27,476
|
|
|
$
|
64
|
|
|
0.94
|
%
|
|
$
|
31,404
|
|
|
$
|
65
|
|
|
0.83
|
%
|
Federal funds sold and securities borrowed or purchased under agreements to resell
|
234,955
|
|
|
353
|
|
|
0.60
|
|
|
234,148
|
|
|
360
|
|
|
0.62
|
|
|
233,061
|
|
|
460
|
|
|
0.79
|
|
||||||
Trading account assets
|
166,192
|
|
|
1,243
|
|
|
2.98
|
|
|
165,906
|
|
|
1,302
|
|
|
3.15
|
|
|
164,114
|
|
|
1,399
|
|
|
3.42
|
|
||||||
Debt securities
(2)
|
355,302
|
|
|
2,068
|
|
|
2.33
|
|
|
357,081
|
|
|
1,910
|
|
|
2.14
|
|
|
341,619
|
|
|
2,752
|
|
|
3.22
|
|
||||||
Loans and leases
(3)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Residential mortgage
(4)
|
261,461
|
|
|
2,412
|
|
|
3.69
|
|
|
266,493
|
|
|
2,556
|
|
|
3.84
|
|
|
272,655
|
|
|
2,592
|
|
|
3.80
|
|
||||||
Home equity
|
116,184
|
|
|
1,097
|
|
|
3.77
|
|
|
119,657
|
|
|
1,090
|
|
|
3.66
|
|
|
122,933
|
|
|
1,164
|
|
|
3.80
|
|
||||||
U.S. credit card
|
93,292
|
|
|
2,353
|
|
|
10.04
|
|
|
95,018
|
|
|
2,356
|
|
|
9.97
|
|
|
98,334
|
|
|
2,459
|
|
|
10.06
|
|
||||||
Non-U.S. credit card
|
13,329
|
|
|
385
|
|
|
11.48
|
|
|
13,641
|
|
|
396
|
|
|
11.68
|
|
|
14,151
|
|
|
408
|
|
|
11.60
|
|
||||||
Direct/Indirect consumer
(5)
|
82,635
|
|
|
704
|
|
|
3.39
|
|
|
84,198
|
|
|
733
|
|
|
3.50
|
|
|
88,321
|
|
|
801
|
|
|
3.65
|
|
||||||
Other consumer
(6)
|
2,654
|
|
|
40
|
|
|
6.03
|
|
|
2,565
|
|
|
41
|
|
|
6.41
|
|
|
2,617
|
|
|
40
|
|
|
6.24
|
|
||||||
Total consumer
|
569,555
|
|
|
6,991
|
|
|
4.89
|
|
|
581,572
|
|
|
7,172
|
|
|
4.95
|
|
|
599,011
|
|
|
7,464
|
|
|
5.00
|
|
||||||
U.S. commercial
|
201,072
|
|
|
1,752
|
|
|
3.47
|
|
|
199,644
|
|
|
1,742
|
|
|
3.51
|
|
|
195,111
|
|
|
1,756
|
|
|
3.62
|
|
||||||
Commercial real estate
(7)
|
36,929
|
|
|
329
|
|
|
3.54
|
|
|
37,627
|
|
|
323
|
|
|
3.46
|
|
|
39,190
|
|
|
339
|
|
|
3.48
|
|
||||||
Commercial lease financing
|
21,545
|
|
|
202
|
|
|
3.75
|
|
|
21,446
|
|
|
216
|
|
|
4.02
|
|
|
21,679
|
|
|
272
|
|
|
5.01
|
|
||||||
Non-U.S. commercial
|
59,758
|
|
|
401
|
|
|
2.67
|
|
|
59,209
|
|
|
369
|
|
|
2.50
|
|
|
58,731
|
|
|
391
|
|
|
2.68
|
|
||||||
Total commercial
|
319,304
|
|
|
2,684
|
|
|
3.35
|
|
|
317,926
|
|
|
2,650
|
|
|
3.35
|
|
|
314,711
|
|
|
2,758
|
|
|
3.52
|
|
||||||
Total loans and leases
|
888,859
|
|
|
9,675
|
|
|
4.34
|
|
|
899,498
|
|
|
9,822
|
|
|
4.38
|
|
|
913,722
|
|
|
10,222
|
|
|
4.49
|
|
||||||
Other earning assets
|
89,118
|
|
|
760
|
|
|
3.40
|
|
|
88,459
|
|
|
716
|
|
|
3.24
|
|
|
84,185
|
|
|
723
|
|
|
3.46
|
|
||||||
Total earning assets
(8)
|
1,750,275
|
|
|
14,157
|
|
|
3.22
|
|
|
1,772,568
|
|
|
14,174
|
|
|
3.21
|
|
|
1,768,105
|
|
|
15,621
|
|
|
3.55
|
|
||||||
Cash and cash equivalents
(1)
|
122,716
|
|
|
48
|
|
|
|
|
116,025
|
|
|
52
|
|
|
|
|
112,512
|
|
|
47
|
|
|
|
|||||||||
Other assets, less allowance for loan and lease losses
|
300,321
|
|
|
|
|
|
|
305,970
|
|
|
|
|
|
|
306,557
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
2,173,312
|
|
|
|
|
|
|
$
|
2,194,563
|
|
|
|
|
|
|
|
$
|
2,187,174
|
|
|
|
|
|
Table 10
|
|||||||||||||||||||||
Quarterly Average Balances and Interest Rates – FTE Basis (continued)
|
|||||||||||||||||||||
|
First Quarter 2013
|
|
Fourth Quarter 2012
|
||||||||||||||||||
(Dollars in millions)
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Savings
|
$
|
42,934
|
|
|
$
|
6
|
|
|
0.05
|
%
|
|
$
|
41,294
|
|
|
$
|
6
|
|
|
0.06
|
%
|
NOW and money market deposit accounts
|
501,177
|
|
|
117
|
|
|
0.09
|
|
|
479,130
|
|
|
146
|
|
|
0.12
|
|
||||
Consumer CDs and IRAs
|
88,376
|
|
|
138
|
|
|
0.63
|
|
|
91,256
|
|
|
156
|
|
|
0.68
|
|
||||
Negotiable CDs, public funds and other deposits
|
20,880
|
|
|
26
|
|
|
0.52
|
|
|
19,904
|
|
|
27
|
|
|
0.54
|
|
||||
Total U.S. interest-bearing deposits
|
653,367
|
|
|
287
|
|
|
0.18
|
|
|
631,584
|
|
|
335
|
|
|
0.21
|
|
||||
Non-U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Banks located in non-U.S. countries
|
12,153
|
|
|
19
|
|
|
0.64
|
|
|
11,964
|
|
|
22
|
|
|
0.71
|
|
||||
Governments and official institutions
|
901
|
|
|
1
|
|
|
0.23
|
|
|
876
|
|
|
1
|
|
|
0.29
|
|
||||
Time, savings and other
|
54,599
|
|
|
75
|
|
|
0.56
|
|
|
53,655
|
|
|
80
|
|
|
0.60
|
|
||||
Total non-U.S. interest-bearing deposits
|
67,653
|
|
|
95
|
|
|
0.57
|
|
|
66,495
|
|
|
103
|
|
|
0.62
|
|
||||
Total interest-bearing deposits
|
721,020
|
|
|
382
|
|
|
0.22
|
|
|
698,079
|
|
|
438
|
|
|
0.25
|
|
||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings
|
337,644
|
|
|
749
|
|
|
0.90
|
|
|
336,341
|
|
|
855
|
|
|
1.01
|
|
||||
Trading account liabilities
|
92,047
|
|
|
472
|
|
|
2.08
|
|
|
80,084
|
|
|
420
|
|
|
2.09
|
|
||||
Long-term debt
|
273,999
|
|
|
1,834
|
|
|
2.70
|
|
|
277,894
|
|
|
1,934
|
|
|
2.77
|
|
||||
Total interest-bearing liabilities
(8)
|
1,424,710
|
|
|
3,437
|
|
|
0.98
|
|
|
1,392,398
|
|
|
3,647
|
|
|
1.04
|
|
||||
Noninterest-bearing sources:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Noninterest-bearing deposits
|
354,260
|
|
|
|
|
|
|
379,997
|
|
|
|
|
|
||||||||
Other liabilities
|
196,465
|
|
|
|
|
|
|
199,458
|
|
|
|
|
|
||||||||
Shareholders' equity
|
236,995
|
|
|
|
|
|
|
238,512
|
|
|
|
|
|
||||||||
Total liabilities and shareholders' equity
|
$
|
2,212,430
|
|
|
|
|
|
|
$
|
2,210,365
|
|
|
|
|
|
||||||
Net interest spread
|
|
|
|
|
2.22
|
%
|
|
|
|
|
|
2.12
|
%
|
||||||||
Impact of noninterest-bearing sources
|
|
|
|
|
0.21
|
|
|
|
|
|
|
0.22
|
|
||||||||
Net interest income/yield on earning assets
(1)
|
|
|
$
|
10,842
|
|
|
2.43
|
%
|
|
|
|
$
|
10,513
|
|
|
2.34
|
%
|
Table 10
|
|
|
|
|
|
|
||||||||||||||||||||||||||
Quarterly Average Balances and Interest Rates – FTE Basis (continued)
|
||||||||||||||||||||||||||||||||
|
Third Quarter 2012
|
|
Second Quarter 2012
|
|
First Quarter 2012
|
|||||||||||||||||||||||||||
(Dollars in millions)
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|
Average
Balance
|
|
Interest
Income/
Expense
|
|
Yield/
Rate
|
|||||||||||||||
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Savings
|
$
|
41,581
|
|
|
$
|
11
|
|
|
0.10
|
%
|
|
$
|
42,394
|
|
|
$
|
14
|
|
|
0.13
|
%
|
|
$
|
40,543
|
|
|
$
|
14
|
|
|
0.14
|
%
|
NOW and money market deposit accounts
|
465,679
|
|
|
173
|
|
|
0.15
|
|
|
460,788
|
|
|
188
|
|
|
0.16
|
|
|
458,649
|
|
|
186
|
|
|
0.16
|
|
||||||
Consumer CDs and IRAs
|
94,140
|
|
|
172
|
|
|
0.73
|
|
|
96,858
|
|
|
171
|
|
|
0.71
|
|
|
100,044
|
|
|
194
|
|
|
0.78
|
|
||||||
Negotiable CDs, public funds and other deposits
|
19,587
|
|
|
30
|
|
|
0.61
|
|
|
21,661
|
|
|
35
|
|
|
0.65
|
|
|
22,586
|
|
|
36
|
|
|
0.64
|
|
||||||
Total U.S. interest-bearing deposits
|
620,987
|
|
|
386
|
|
|
0.25
|
|
|
621,701
|
|
|
408
|
|
|
0.26
|
|
|
621,822
|
|
|
430
|
|
|
0.28
|
|
||||||
Non-U.S. interest-bearing deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Banks located in non-U.S. countries
|
13,883
|
|
|
19
|
|
|
0.56
|
|
|
14,598
|
|
|
25
|
|
|
0.69
|
|
|
18,170
|
|
|
28
|
|
|
0.62
|
|
||||||
Governments and official institutions
|
1,019
|
|
|
1
|
|
|
0.31
|
|
|
895
|
|
|
1
|
|
|
0.37
|
|
|
1,286
|
|
|
1
|
|
|
0.41
|
|
||||||
Time, savings and other
|
52,175
|
|
|
78
|
|
|
0.59
|
|
|
52,584
|
|
|
85
|
|
|
0.65
|
|
|
55,241
|
|
|
90
|
|
|
0.66
|
|
||||||
Total non-U.S. interest-bearing deposits
|
67,077
|
|
|
98
|
|
|
0.58
|
|
|
68,077
|
|
|
111
|
|
|
0.65
|
|
|
74,697
|
|
|
119
|
|
|
0.64
|
|
||||||
Total interest-bearing deposits
|
688,064
|
|
|
484
|
|
|
0.28
|
|
|
689,778
|
|
|
519
|
|
|
0.30
|
|
|
696,519
|
|
|
549
|
|
|
0.32
|
|
||||||
Federal funds purchased, securities loaned or sold under agreements to repurchase and short-term borrowings
|
325,023
|
|
|
893
|
|
|
1.09
|
|
|
318,909
|
|
|
943
|
|
|
1.19
|
|
|
293,056
|
|
|
881
|
|
|
1.21
|
|
||||||
Trading account liabilities
|
77,528
|
|
|
418
|
|
|
2.14
|
|
|
84,728
|
|
|
448
|
|
|
2.13
|
|
|
71,872
|
|
|
477
|
|
|
2.67
|
|
||||||
Long-term debt
|
291,684
|
|
|
2,243
|
|
|
3.07
|
|
|
333,173
|
|
|
2,534
|
|
|
3.05
|
|
|
363,518
|
|
|
2,708
|
|
|
2.99
|
|
||||||
Total interest-bearing liabilities
(8)
|
1,382,299
|
|
|
4,038
|
|
|
1.16
|
|
|
1,426,588
|
|
|
4,444
|
|
|
1.25
|
|
|
1,424,965
|
|
|
4,615
|
|
|
1.30
|
|
||||||
Noninterest-bearing sources:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Noninterest-bearing deposits
|
361,633
|
|
|
|
|
|
|
343,110
|
|
|
|
|
|
|
|
333,593
|
|
|
|
|
|
|||||||||||
Other liabilities
|
193,341
|
|
|
|
|
|
|
189,307
|
|
|
|
|
|
|
|
196,050
|
|
|
|
|
|
|||||||||||
Shareholders' equity
|
236,039
|
|
|
|
|
|
|
235,558
|
|
|
|
|
|
|
|
232,566
|
|
|
|
|
|
|||||||||||
Total liabilities and shareholders' equity
|
$
|
2,173,312
|
|
|
|
|
|
|
$
|
2,194,563
|
|
|
|
|
|
|
$
|
2,187,174
|
|
|
|
|
|
|||||||||
Net interest spread
|
|
|
|
|
2.06
|
%
|
|
|
|
|
|
1.96
|
%
|
|
|
|
|
|
2.25
|
%
|
||||||||||||
Impact of noninterest-bearing sources
|
|
|
|
|
0.25
|
|
|
|
|
|
|
0.24
|
|
|
|
|
|
|
0.25
|
|
||||||||||||
Net interest income/yield on earning assets
(1)
|
|
|
$
|
10,119
|
|
|
2.31
|
%
|
|
|
|
$
|
9,730
|
|
|
2.20
|
%
|
|
|
|
$
|
11,006
|
|
|
2.50
|
%
|
Business Segment Operations
|
|
Segment Description and Basis of Presentation
|
Table 11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Business Segment Results
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Three Months Ended March 31
|
||||||||||||||||||||||||||||||
|
Total Revenue
(1)
|
|
Provision for Credit Losses
|
|
Noninterest Expense
|
|
Net Income (Loss)
|
||||||||||||||||||||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
Consumer & Business Banking
|
$
|
7,214
|
|
|
$
|
7,422
|
|
|
$
|
906
|
|
|
$
|
877
|
|
|
$
|
4,108
|
|
|
$
|
4,263
|
|
|
$
|
1,382
|
|
|
$
|
1,445
|
|
Consumer Real Estate Services
|
2,312
|
|
|
2,664
|
|
|
335
|
|
|
507
|
|
|
5,407
|
|
|
3,884
|
|
|
(2,157
|
)
|
|
(1,138
|
)
|
||||||||
Global Banking
|
4,225
|
|
|
4,236
|
|
|
195
|
|
|
(245
|
)
|
|
1,900
|
|
|
1,997
|
|
|
1,338
|
|
|
1,573
|
|
||||||||
Global Markets
|
4,872
|
|
|
4,411
|
|
|
5
|
|
|
(13
|
)
|
|
3,076
|
|
|
3,239
|
|
|
1,169
|
|
|
828
|
|
||||||||
Global Wealth & Investment Management
|
4,421
|
|
|
4,147
|
|
|
22
|
|
|
46
|
|
|
3,253
|
|
|
3,232
|
|
|
720
|
|
|
550
|
|
||||||||
All Other
|
364
|
|
|
(395
|
)
|
|
250
|
|
|
1,246
|
|
|
1,756
|
|
|
2,526
|
|
|
(969
|
)
|
|
(2,605
|
)
|
||||||||
Total FTE basis
|
23,408
|
|
|
22,485
|
|
|
1,713
|
|
|
2,418
|
|
|
19,500
|
|
|
19,141
|
|
|
1,483
|
|
|
653
|
|
||||||||
FTE adjustment
|
(211
|
)
|
|
(207
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Total Consolidated
|
$
|
23,197
|
|
|
$
|
22,278
|
|
|
$
|
1,713
|
|
|
$
|
2,418
|
|
|
$
|
19,500
|
|
|
$
|
19,141
|
|
|
$
|
1,483
|
|
|
$
|
653
|
|
Consumer & Business Banking
|
|
Three Months Ended March 31
|
|
|
|||||||||||||||||||||||
|
Deposits
|
|
Card
Services
|
|
Total Consumer &
Business Banking
|
|
|
|||||||||||||||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
% Change
|
|||||||||||||
Net interest income (FTE basis)
|
$
|
2,387
|
|
|
$
|
2,454
|
|
|
$
|
2,433
|
|
|
$
|
2,616
|
|
|
$
|
4,820
|
|
|
$
|
5,070
|
|
|
(5
|
)%
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Card income
|
15
|
|
|
12
|
|
|
1,192
|
|
|
1,277
|
|
|
1,207
|
|
|
1,289
|
|
|
(6
|
)
|
||||||
Service charges
|
1,013
|
|
|
1,062
|
|
|
—
|
|
|
—
|
|
|
1,013
|
|
|
1,062
|
|
|
(5
|
)
|
||||||
All other income (loss)
|
102
|
|
|
85
|
|
|
72
|
|
|
(84
|
)
|
|
174
|
|
|
1
|
|
|
n/m
|
|
||||||
Total noninterest income
|
1,130
|
|
|
1,159
|
|
|
1,264
|
|
|
1,193
|
|
|
2,394
|
|
|
2,352
|
|
|
2
|
|
||||||
Total revenue, net of interest expense (FTE basis)
|
3,517
|
|
|
3,613
|
|
|
3,697
|
|
|
3,809
|
|
|
7,214
|
|
|
7,422
|
|
|
(3
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Provision for credit losses
|
63
|
|
|
87
|
|
|
843
|
|
|
790
|
|
|
906
|
|
|
877
|
|
|
3
|
|
||||||
Noninterest expense
|
2,820
|
|
|
2,890
|
|
|
1,288
|
|
|
1,373
|
|
|
4,108
|
|
|
4,263
|
|
|
(4
|
)
|
||||||
Income before income taxes
|
634
|
|
|
636
|
|
|
1,566
|
|
|
1,646
|
|
|
2,200
|
|
|
2,282
|
|
|
(4
|
)
|
||||||
Income tax expense (FTE basis)
|
236
|
|
|
233
|
|
|
582
|
|
|
604
|
|
|
818
|
|
|
837
|
|
|
(2
|
)
|
||||||
Net income
|
$
|
398
|
|
|
$
|
403
|
|
|
$
|
984
|
|
|
$
|
1,042
|
|
|
$
|
1,382
|
|
|
$
|
1,445
|
|
|
(4
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest yield (FTE basis)
|
1.91
|
%
|
|
2.11
|
%
|
|
9.19
|
%
|
|
8.95
|
%
|
|
3.75
|
%
|
|
4.23
|
%
|
|
|
|||||||
Return on average allocated capital
(1)
|
10.49
|
|
|
—
|
|
|
31.74
|
|
|
—
|
|
|
20.05
|
|
|
—
|
|
|
|
|||||||
Return on average economic capital
(1)
|
—
|
|
|
13.31
|
|
|
—
|
|
|
41.30
|
|
|
—
|
|
|
26.05
|
|
|
|
|||||||
Efficiency ratio (FTE basis)
|
80.20
|
|
|
79.98
|
|
|
34.82
|
|
|
36.05
|
|
|
56.95
|
|
|
57.43
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total loans and leases
|
$
|
22,616
|
|
|
$
|
24,074
|
|
|
$
|
106,954
|
|
|
$
|
116,267
|
|
|
$
|
129,570
|
|
|
$
|
140,341
|
|
|
(8
|
)
|
Total earning assets
(2)
|
506,530
|
|
|
467,011
|
|
|
107,396
|
|
|
117,580
|
|
|
520,899
|
|
|
482,297
|
|
|
8
|
|
||||||
Total assets
(2)
|
539,319
|
|
|
500,436
|
|
|
114,429
|
|
|
123,179
|
|
|
560,721
|
|
|
521,321
|
|
|
8
|
|
||||||
Total deposits
|
502,063
|
|
|
463,715
|
|
|
n/m
|
|
|
n/m
|
|
|
502,483
|
|
|
464,023
|
|
|
8
|
|
||||||
Allocated capital
(1)
|
15,400
|
|
|
—
|
|
|
12,600
|
|
|
—
|
|
|
28,000
|
|
|
—
|
|
|
n/m
|
|
||||||
Economic capital
(1)
|
—
|
|
|
12,189
|
|
|
—
|
|
|
10,179
|
|
|
—
|
|
|
22,368
|
|
|
n/m
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Period end
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
|
|
|||||||||||||
Total loans and leases
|
$
|
22,488
|
|
|
$
|
22,907
|
|
|
$
|
105,014
|
|
|
$
|
110,380
|
|
|
$
|
127,502
|
|
|
$
|
133,287
|
|
|
(4
|
)
|
Total earning assets
(2)
|
534,098
|
|
|
498,150
|
|
|
105,460
|
|
|
110,831
|
|
|
548,776
|
|
|
511,961
|
|
|
7
|
|
||||||
Total assets
(2)
|
567,346
|
|
|
531,354
|
|
|
112,846
|
|
|
117,904
|
|
|
589,410
|
|
|
552,238
|
|
|
7
|
|
||||||
Total deposits
|
529,501
|
|
|
495,711
|
|
|
n/m
|
|
|
n/m
|
|
|
530,552
|
|
|
496,127
|
|
|
7
|
|
(1)
|
Effective January 1, 2013, we revised, on a prospective basis, the methodology for allocating capital to the business segments
.
In connection with the change in methodology, we updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see
Business Segment Operations
on page
25
.
|
(2)
|
For presentation purposes, in segments and businesses where the total of liabilities and equity exceeds assets, we allocate assets from
All Other
to match the segments' and businesses' liabilities and allocated shareholders' equity. As a result, total earning assets and total assets of the businesses may not equal total
CBB
.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Statistics
|
|
|
|
|
||||
|
|
Three Months Ended March 31
|
||||||
|
|
2013
|
|
2012
|
||||
Total deposit spreads (excludes noninterest costs)
|
|
1.52
|
%
|
|
1.96
|
%
|
||
|
|
|
|
|
||||
Period end
|
|
|
|
|
||||
Client brokerage assets (in millions)
|
|
$
|
82,616
|
|
|
$
|
73,422
|
|
Online banking active accounts (units in thousands)
|
|
30,102
|
|
|
30,439
|
|
||
Mobile banking active accounts (units in thousands)
|
|
12,641
|
|
|
9,702
|
|
||
Banking centers
|
|
5,389
|
|
|
5,651
|
|
||
ATMs
|
|
16,311
|
|
|
17,255
|
|
Key Statistics
|
|
|
|
|
||||
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
|
2013
|
|
2012
|
||||
U.S. credit card
|
|
|
|
|
||||
Gross interest yield
|
|
9.95
|
%
|
|
10.06
|
%
|
||
Risk-adjusted margin
|
|
8.39
|
|
|
6.54
|
|
||
New accounts (in thousands)
|
|
906
|
|
|
782
|
|
||
Purchase volumes
|
|
$
|
46,632
|
|
|
$
|
44,797
|
|
Debit card purchase volumes
|
|
$
|
64,635
|
|
|
$
|
63,032
|
|
Consumer Real Estate Services
|
|
Three Months Ended March 31
|
|
|
||||||||||||||||||||
|
Home Loans
|
|
Legacy Assets
& Servicing
|
|
Total Consumer Real
Estate Services
|
|
|
||||||||||||||||
(Dollars in millions)
|
2013
|
2012
|
|
2013
|
2012
|
|
2013
|
2012
|
|
% Change
|
|||||||||||||
Net interest income (FTE basis)
|
$
|
347
|
|
$
|
347
|
|
|
$
|
396
|
|
$
|
421
|
|
|
$
|
743
|
|
$
|
768
|
|
|
(3
|
)%
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Mortgage banking income
|
697
|
|
714
|
|
|
790
|
|
1,114
|
|
|
1,487
|
|
1,828
|
|
|
(19
|
)
|
||||||
All other income (loss)
|
(64
|
)
|
29
|
|
|
146
|
|
39
|
|
|
82
|
|
68
|
|
|
21
|
|
||||||
Total noninterest income
|
633
|
|
743
|
|
|
936
|
|
1,153
|
|
|
1,569
|
|
1,896
|
|
|
(17
|
)
|
||||||
Total revenue, net of interest expense (FTE basis)
|
980
|
|
1,090
|
|
|
1,332
|
|
1,574
|
|
|
2,312
|
|
2,664
|
|
|
(13
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Provision for credit losses
|
92
|
|
53
|
|
|
243
|
|
454
|
|
|
335
|
|
507
|
|
|
(34
|
)
|
||||||
Noninterest expense
|
814
|
|
857
|
|
|
4,593
|
|
3,027
|
|
|
5,407
|
|
3,884
|
|
|
39
|
|
||||||
Income (loss) before income taxes
|
74
|
|
180
|
|
|
(3,504
|
)
|
(1,907
|
)
|
|
(3,430
|
)
|
(1,727
|
)
|
|
99
|
|
||||||
Income tax expense (benefit) (FTE basis)
|
28
|
|
66
|
|
|
(1,301
|
)
|
(655
|
)
|
|
(1,273
|
)
|
(589
|
)
|
|
116
|
|
||||||
Net income (loss)
|
$
|
46
|
|
$
|
114
|
|
|
$
|
(2,203
|
)
|
$
|
(1,252
|
)
|
|
$
|
(2,157
|
)
|
$
|
(1,138
|
)
|
|
90
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest yield (FTE basis)
|
2.62
|
%
|
2.43
|
%
|
|
3.09
|
%
|
2.37
|
%
|
|
2.85
|
%
|
2.39
|
%
|
|
|
|||||||
Efficiency ratio (FTE basis)
|
83.06
|
|
78.62
|
|
|
n/m
|
|
n/m
|
|
|
n/m
|
|
n/m
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance Sheet
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Average
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total loans and leases
|
$
|
47,228
|
|
$
|
51,663
|
|
|
$
|
45,735
|
|
$
|
57,938
|
|
|
$
|
92,963
|
|
$
|
109,601
|
|
|
(15
|
)
|
Total earning assets
|
53,746
|
|
57,474
|
|
|
51,969
|
|
71,565
|
|
|
105,715
|
|
129,039
|
|
|
(18
|
)
|
||||||
Total assets
|
54,505
|
|
58,348
|
|
|
73,826
|
|
99,609
|
|
|
128,331
|
|
157,957
|
|
|
(19
|
)
|
||||||
Allocated capital
(1)
|
6,000
|
|
—
|
|
|
18,000
|
|
—
|
|
|
24,000
|
|
—
|
|
|
n/m
|
|
||||||
Economic capital
(1)
|
—
|
|
3,467
|
|
|
—
|
|
11,324
|
|
|
—
|
|
14,791
|
|
|
n/m
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Period end
|
March 31
2013 |
December 31
2012 |
|
March 31
2013 |
December 31
2012 |
|
March 31
2013 |
December 31
2012 |
|
|
|||||||||||||
Total loans and leases
|
$
|
46,929
|
|
$
|
47,742
|
|
|
$
|
44,042
|
|
$
|
46,918
|
|
|
$
|
90,971
|
|
$
|
94,660
|
|
|
(4
|
)
|
Total earning assets
|
55,111
|
|
54,394
|
|
|
50,433
|
|
52,580
|
|
|
105,544
|
|
106,974
|
|
|
(1
|
)
|
||||||
Total assets
|
55,581
|
|
55,463
|
|
|
73,535
|
|
75,584
|
|
|
129,116
|
|
131,047
|
|
|
(1
|
)
|
(1)
|
Effective January 1, 2013, we revised, on a prospective basis, the methodology for allocating capital to the business segments
.
In connection with the change in methodology, we updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see
Business Segment Operations
on page
25
.
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Excludes
$48 billion
and
$76 billion
of home equity loans and HELOCs at
March 31, 2013 and 2012
.
|
(2)
|
Excludes loans for which servicing transferred to third parties as of
March 31, 2013
, with an effective MSR sale date of April 1, 2013, totaling approximately $34 billion.
|
(1)
|
Excludes
$55 billion
and
$61 billion
of home equity loans and HELOCs at
March 31, 2013 and 2012
.
|
(2)
|
Excludes loans for which servicing transferred to third parties as of
March 31, 2013
, with an effective MSR sale date of April 1, 2013, totaling approximately $19 billion.
|
Mortgage Banking Income
|
Mortgage Banking Income
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Production income:
|
|
|
|
||||
Core production revenue
|
$
|
815
|
|
|
$
|
928
|
|
Representations and warranties provision
|
(250
|
)
|
|
(282
|
)
|
||
Total production income
|
565
|
|
|
646
|
|
||
Servicing income:
|
|
|
|
||||
Servicing fees
|
913
|
|
|
1,329
|
|
||
Impact of customer payments
(1)
|
(314
|
)
|
|
(521
|
)
|
||
Fair value changes of MSRs, net of risk management activities used to hedge certain market risks
(2)
|
312
|
|
|
194
|
|
||
Other servicing-related revenue
|
11
|
|
|
180
|
|
||
Total net servicing income
|
922
|
|
|
1,182
|
|
||
Total
CRES
mortgage banking income
|
1,487
|
|
|
1,828
|
|
||
Eliminations
(3)
|
(224
|
)
|
|
(216
|
)
|
||
Total consolidated mortgage banking income
|
$
|
1,263
|
|
|
$
|
1,612
|
|
(1)
|
Represents the change in the market value of the MSR asset due to the impact of customer payments received during the period.
|
(2)
|
Includes gains (losses) on sales of MSRs.
|
(3)
|
Includes the effect of transfers of mortgage loans from
CRES
to the ALM portfolio in
All Other
.
|
Key Statistics
|
|
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||||
(Dollars in millions, except as noted)
|
2013
|
|
2012
|
||||||
Loan production
|
|
|
|
|
|
||||
Total Corporation
(1)
:
|
|
|
|
|
|
||||
First mortgage
|
$
|
23,920
|
|
|
|
$
|
15,238
|
|
|
Home equity
|
1,116
|
|
|
|
760
|
|
|
||
CRES:
|
|
|
|
|
|
||||
First mortgage
|
$
|
19,269
|
|
|
|
$
|
12,185
|
|
|
Home equity
|
942
|
|
|
|
597
|
|
|
||
|
|
|
|
|
|
||||
Period end
|
March 31
2013 |
|
December 31
2012 |
||||||
Mortgage serviced portfolio (in billions)
(2, 3)
|
$
|
1,185
|
|
|
|
$
|
1,332
|
|
|
Mortgage loans serviced for investors (in billions)
|
949
|
|
|
|
1,045
|
|
|
||
Mortgage servicing rights:
|
|
|
|
|
|
||||
Balance
|
5,776
|
|
|
|
5,716
|
|
|
||
Capitalized mortgage servicing rights (% of loans serviced for investors)
|
61
|
|
bps
|
|
55
|
|
bps
|
(1)
|
In addition to loan production in
CRES
, the remaining first mortgage and home equity loan production is primarily in
GWIM
.
|
(2)
|
Servicing of residential mortgage loans, HELOCs and home equity loans.
|
(3)
|
Excludes loans for which servicing transferred to third parties as of
March 31, 2013
, with an effective MSR sale date of April 1, 2013, totaling approximately $53 billion.
|
Global Banking
|
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
% Change
|
|||||
Net interest income (FTE basis)
|
$
|
2,351
|
|
|
$
|
2,296
|
|
|
2
|
%
|
Noninterest income:
|
|
|
|
|
|
|||||
Service charges
|
685
|
|
|
721
|
|
|
(5
|
)
|
||
Investment banking fees
|
790
|
|
|
651
|
|
|
21
|
|
||
All other income
|
399
|
|
|
568
|
|
|
(30
|
)
|
||
Total noninterest income
|
1,874
|
|
|
1,940
|
|
|
(3
|
)
|
||
Total revenue, net of interest expense (FTE basis)
|
4,225
|
|
|
4,236
|
|
|
—
|
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
195
|
|
|
(245
|
)
|
|
n/m
|
|
||
Noninterest expense
|
1,900
|
|
|
1,997
|
|
|
(5
|
)
|
||
Income before income taxes
|
2,130
|
|
|
2,484
|
|
|
(14
|
)
|
||
Income tax expense (FTE basis)
|
792
|
|
|
911
|
|
|
(13
|
)
|
||
Net income
|
$
|
1,338
|
|
|
$
|
1,573
|
|
|
(15
|
)
|
|
|
|
|
|
|
|||||
Net interest yield (FTE basis)
|
3.29
|
%
|
|
3.33
|
%
|
|
|
|||
Return on average allocated capital
(1)
|
21.72
|
|
|
—
|
|
|
|
|||
Return on average economic capital
(1)
|
—
|
|
|
31.34
|
|
|
|
|||
Efficiency ratio (FTE basis)
|
44.96
|
|
|
47.13
|
|
|
|
|||
|
|
|
|
|
|
|||||
Balance Sheet
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Average
|
|
|
|
|
|
|||||
Total loans and leases
|
$
|
280,305
|
|
|
$
|
266,206
|
|
|
5
|
|
Total earning assets
|
289,452
|
|
|
277,039
|
|
|
4
|
|
||
Total assets
|
332,781
|
|
|
320,252
|
|
|
4
|
|
||
Total deposits
|
221,492
|
|
|
210,940
|
|
|
5
|
|
||
Allocated capital
(1)
|
25,000
|
|
|
—
|
|
|
n/m
|
|
||
Economic capital
(1)
|
—
|
|
|
20,200
|
|
|
n/m
|
|
||
|
|
|
|
|
|
|||||
Period end
|
March 31
2013 |
|
December 31
2012 |
|
|
|||||
Total loans and leases
|
$
|
287,263
|
|
|
$
|
278,286
|
|
|
3
|
|
Total earning assets
|
297,382
|
|
|
289,455
|
|
|
3
|
|
||
Total assets
|
340,281
|
|
|
334,264
|
|
|
2
|
|
||
Total deposits
|
227,647
|
|
|
242,596
|
|
|
(6
|
)
|
(1)
|
Effective January 1, 2013, we revised, on a prospective basis, the methodology for allocating capital to the business segments
.
In connection with the change in methodology, we updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see
Business Segment Operations
on page
25
.
|
Global Corporate and Global Commercial Banking
|
Investment Banking
|
Investment Banking Fees
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended March 31
|
||||||||||||||
|
Global Banking
|
|
Total Corporation
|
||||||||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Products
|
|
|
|
|
|
|
|
||||||||
Advisory
|
$
|
233
|
|
|
$
|
190
|
|
|
$
|
257
|
|
|
$
|
203
|
|
Debt issuance
|
428
|
|
|
347
|
|
|
1,022
|
|
|
775
|
|
||||
Equity issuance
|
129
|
|
|
114
|
|
|
323
|
|
|
305
|
|
||||
Gross investment banking fees
|
790
|
|
|
651
|
|
|
1,602
|
|
|
1,283
|
|
||||
Self-led
|
(28
|
)
|
|
(20
|
)
|
|
(67
|
)
|
|
(66
|
)
|
||||
Total investment banking fees
|
$
|
762
|
|
|
$
|
631
|
|
|
$
|
1,535
|
|
|
$
|
1,217
|
|
Global Markets
|
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
% Change
|
|||||
Net interest income (FTE basis)
|
$
|
1,111
|
|
|
$
|
910
|
|
|
22
|
%
|
Noninterest income:
|
|
|
|
|
|
|||||
Investment and brokerage services
|
528
|
|
|
514
|
|
|
3
|
|
||
Investment banking fees
|
679
|
|
|
556
|
|
|
22
|
|
||
Trading account profits
|
2,890
|
|
|
2,037
|
|
|
42
|
|
||
All other income (loss)
|
(336
|
)
|
|
394
|
|
|
n/m
|
|
||
Total noninterest income
|
3,761
|
|
|
3,501
|
|
|
7
|
|
||
Total revenue, net of interest expense (FTE basis)
|
4,872
|
|
|
4,411
|
|
|
10
|
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
5
|
|
|
(13
|
)
|
|
n/m
|
|
||
Noninterest expense
|
3,076
|
|
|
3,239
|
|
|
(5
|
)
|
||
Income before income taxes
|
1,791
|
|
|
1,185
|
|
|
51
|
|
||
Income tax expense (FTE basis)
|
622
|
|
|
357
|
|
|
74
|
|
||
Net income
|
$
|
1,169
|
|
|
$
|
828
|
|
|
41
|
|
|
|
|
|
|
|
|||||
Return on average allocated capital
(1)
|
15.83
|
%
|
|
—
|
|
|
|
|||
Return on average economic capital
(1)
|
—
|
|
|
23.22
|
%
|
|
|
|||
Efficiency ratio (FTE basis)
|
63.13
|
|
|
73.44
|
|
|
|
|||
|
|
|
|
|
|
|||||
Balance Sheet
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Average
|
|
|
|
|
|
|||||
Total trading-related assets
(2)
|
$
|
504,266
|
|
|
$
|
448,731
|
|
|
12
|
|
Total earning assets
(2)
|
509,732
|
|
|
436,871
|
|
|
17
|
|
||
Total assets
|
666,626
|
|
|
573,305
|
|
|
16
|
|
||
Allocated capital
(1)
|
30,000
|
|
|
—
|
|
|
n/m
|
|
||
Economic capital
(1)
|
—
|
|
|
14,384
|
|
|
n/m
|
|
||
|
|
|
|
|
|
|||||
Period end
|
March 31
2013 |
|
December 31
2012 |
|
|
|||||
Total trading-related assets
(2)
|
$
|
467,826
|
|
|
$
|
465,836
|
|
|
—
|
|
Total earning assets
(2)
|
480,077
|
|
|
486,503
|
|
|
(1
|
)
|
||
Total assets
|
625,434
|
|
|
629,896
|
|
|
(1
|
)
|
(1)
|
Effective January 1, 2013, we revised, on a prospective basis, the methodology for allocating capital to the business segments
.
In connection with the change in methodology, we updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see
Business Segment Operations
on page
25
.
|
(2)
|
Trading-related assets include derivative assets, which are considered non-earning assets.
|
Sales and Trading Revenue
|
Sales and Trading Revenue
(1, 2)
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Sales and trading revenue
|
|
|
|
||||
Fixed income, currencies and commodities
|
$
|
2,936
|
|
|
$
|
2,843
|
|
Equities
|
1,159
|
|
|
912
|
|
||
Total sales and trading revenue
|
$
|
4,095
|
|
|
$
|
3,755
|
|
|
|
|
|
||||
Sales and trading revenue, excluding net DVA
(3)
|
|
|
|
||||
Fixed income, currencies and commodities
|
$
|
3,001
|
|
|
$
|
4,130
|
|
Equities
|
1,149
|
|
|
1,059
|
|
||
Total sales and trading revenue, excluding net DVA
|
$
|
4,150
|
|
|
$
|
5,189
|
|
(1)
|
Includes FTE adjustments of
$46 million
and
$50 million
for the
three months ended March 31, 2013 and 2012
. For additional information on sales and trading revenue, see
Note 3 – Derivatives
to the Consolidated Financial Statements
.
|
(2)
|
Includes
Global Banking
sales and trading revenue of
$68 million
and
$114 million
for the
three months ended March 31, 2013 and 2012
.
|
(3)
|
For this presentation, sales and trading revenue excludes the impact of credit spreads on DVA which represents
a non-GAAP financial measure. Net DVA losses included in FICC revenue were
$65 million
and net DVA gains included in equities revenue were
$10 million
for the
three months ended March 31, 2013
compared to net DVA losses of
$1.3 billion
and
$147 million
for the
same period in 2012
.
|
Global Wealth & Investment Management
|
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
% Change
|
|||||
Net interest income (FTE basis)
|
$
|
1,596
|
|
|
$
|
1,531
|
|
|
4
|
%
|
Noninterest income:
|
|
|
|
|
|
|||||
Investment and brokerage services
|
2,331
|
|
|
2,175
|
|
|
7
|
|
||
All other income
|
494
|
|
|
441
|
|
|
12
|
|
||
Total noninterest income
|
2,825
|
|
|
2,616
|
|
|
8
|
|
||
Total revenue, net of interest expense (FTE basis)
|
4,421
|
|
|
4,147
|
|
|
7
|
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
22
|
|
|
46
|
|
|
(52
|
)
|
||
Noninterest expense
|
3,253
|
|
|
3,232
|
|
|
1
|
|
||
Income before income taxes
|
1,146
|
|
|
869
|
|
|
32
|
|
||
Income tax expense (FTE basis)
|
426
|
|
|
319
|
|
|
34
|
|
||
Net income
|
$
|
720
|
|
|
$
|
550
|
|
|
31
|
|
|
|
|
|
|
|
|||||
Net interest yield (FTE basis)
|
2.46
|
%
|
|
2.46
|
%
|
|
|
|||
Return on average allocated capital
(1)
|
29.38
|
|
|
—
|
|
|
|
|||
Return on average economic capital
(1)
|
—
|
|
|
34.85
|
|
|
|
|||
Efficiency ratio (FTE basis)
|
73.58
|
|
|
77.92
|
|
|
|
|||
|
|
|
|
|
|
|||||
Balance Sheet
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Average
|
|
|
|
|
|
|||||
Total loans and leases
|
$
|
106,082
|
|
|
$
|
98,016
|
|
|
8
|
|
Total earning assets
|
263,484
|
|
|
250,727
|
|
|
5
|
|
||
Total assets
|
282,298
|
|
|
269,674
|
|
|
5
|
|
||
Total deposits
|
253,413
|
|
|
239,859
|
|
|
6
|
|
||
Allocated capital
(1)
|
10,000
|
|
|
—
|
|
|
n/m
|
|
||
Economic capital
(1)
|
—
|
|
|
6,420
|
|
|
n/m
|
|
||
|
|
|
|
|
|
|||||
Period end
|
March 31
2013 |
|
December 31
2012 |
|
|
|||||
Total loans and leases
|
$
|
107,048
|
|
|
$
|
105,928
|
|
|
1
|
|
Total earning assets
|
248,960
|
|
|
277,103
|
|
|
(10
|
)
|
||
Total assets
|
268,263
|
|
|
297,326
|
|
|
(10
|
)
|
||
Total deposits
|
239,853
|
|
|
266,188
|
|
|
(10
|
)
|
(1)
|
Effective January 1, 2013, we revised, on a prospective basis, the methodology for allocating capital to the business segments
.
In connection with the change in methodology, we updated the applicable terminology in the above table to allocated capital from economic capital as reported in prior periods. For more information, see
Business Segment Operations
on page
25
.
|
Net Migration Summary
|
Migration Summary
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Average
|
|
|
|
||||
Total deposits, net –
GWIM
to
CBB
|
$
|
(7,291
|
)
|
|
$
|
(89
|
)
|
Total loans, net –
GWIM
to
CRES
and the ALM portfolio
|
(14
|
)
|
|
(95
|
)
|
||
Period end
|
|
|
|
||||
Total deposits, net –
GWIM
to
CBB
|
$
|
(18,548
|
)
|
|
$
|
(87
|
)
|
Total loans, net –
GWIM
to
CRES
and the ALM portfolio
|
(29
|
)
|
|
(144
|
)
|
Client Balances
|
Client Balances by Type
|
|||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
Assets under management
|
$
|
745,260
|
|
|
$
|
698,095
|
|
Brokerage assets
|
1,026,495
|
|
|
975,388
|
|
||
Assets in custody
|
127,013
|
|
|
117,686
|
|
||
Deposits
|
239,853
|
|
|
266,188
|
|
||
Loans and leases
(1)
|
110,103
|
|
|
109,305
|
|
||
Total client balances
|
$
|
2,248,724
|
|
|
$
|
2,166,662
|
|
(1)
|
Includes margin receivables which are classified in customer and other receivables on the Consolidated Balance Sheet.
|
All Other
|
|
Three Months Ended March 31
|
|
|
|||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
% Change
|
|||||
Net interest income (FTE basis)
|
$
|
254
|
|
|
$
|
478
|
|
|
(47
|
)%
|
Noninterest income:
|
|
|
|
|
|
|||||
Card income
|
85
|
|
|
87
|
|
|
(2
|
)
|
||
Equity investment income
|
520
|
|
|
429
|
|
|
21
|
|
||
Gains on sales of debt securities
|
67
|
|
|
712
|
|
|
(91
|
)
|
||
All other loss
|
(562
|
)
|
|
(2,101
|
)
|
|
(73
|
)
|
||
Total noninterest income (loss)
|
110
|
|
|
(873
|
)
|
|
n/m
|
|
||
Total revenue, net of interest expense (FTE basis)
|
364
|
|
|
(395
|
)
|
|
n/m
|
|
||
|
|
|
|
|
|
|||||
Provision for credit losses
|
250
|
|
|
1,246
|
|
|
(80
|
)
|
||
Noninterest expense
|
1,756
|
|
|
2,526
|
|
|
(30
|
)
|
||
Loss before income taxes
|
(1,642
|
)
|
|
(4,167
|
)
|
|
(61
|
)
|
||
Income tax benefit (FTE basis)
|
(673
|
)
|
|
(1,562
|
)
|
|
(57
|
)
|
||
Net loss
|
$
|
(969
|
)
|
|
$
|
(2,605
|
)
|
|
(63
|
)
|
|
|
|
|
|
|
|||||
Balance Sheet
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|||||
Average
|
|
|
|
|
|
|||||
Loans and leases:
|
|
|
|
|
|
|||||
Residential mortgage
|
$
|
215,342
|
|
|
$
|
232,806
|
|
|
(8
|
)
|
Non-U.S. credit card
|
11,027
|
|
|
14,151
|
|
|
(22
|
)
|
||
Other
|
18,188
|
|
|
23,271
|
|
|
(22
|
)
|
||
Total loans and leases
|
244,557
|
|
|
270,228
|
|
|
(9
|
)
|
||
Total assets
(1)
|
241,673
|
|
|
344,665
|
|
|
(30
|
)
|
||
Total deposits
|
35,550
|
|
|
52,529
|
|
|
(32
|
)
|
||
|
|
|
|
|
|
|||||
Period end
|
March 31
2013 |
|
December 31
2012 |
|
|
|||||
Loans and leases:
|
|
|
|
|
|
|||||
Residential mortgage
|
$
|
213,272
|
|
|
$
|
211,620
|
|
|
1
|
|
Non-U.S. credit card
|
10,620
|
|
|
11,697
|
|
|
(9
|
)
|
||
Other
|
17,515
|
|
|
18,663
|
|
|
(6
|
)
|
||
Total loans and leases
|
241,407
|
|
|
241,980
|
|
|
—
|
|
||
Total assets
(1)
|
222,315
|
|
|
265,203
|
|
|
(16
|
)
|
||
Total deposits
|
35,758
|
|
|
36,060
|
|
|
(1
|
)
|
(1)
|
For presentation purposes, in segments where the total of liabilities and equity exceeds assets, which are generally deposit-taking segments, we allocate assets from
All Other
to those segments to match liabilities (i.e., deposits) and allocated shareholders' equity. Such allocated assets were
$538.0 billion
and
$486.5 billion
for the
three months ended March 31, 2013 and 2012
, and
$552.8 billion
and
$537.8 billion
at
March 31, 2013
and
December 31, 2012
.
|
Equity Investment Activity
|
Equity Investments
|
|
||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
Global Principal Investments
|
$
|
2,786
|
|
|
$
|
3,470
|
|
Strategic and other investments
|
2,072
|
|
|
2,038
|
|
||
Total equity investments included in
All Other
|
$
|
4,858
|
|
|
$
|
5,508
|
|
|
|
|
|
||||
Equity Investment Income
|
|
||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Global Principal Investments
|
$
|
104
|
|
|
$
|
403
|
|
Strategic and other investments
|
416
|
|
|
26
|
|
||
Total equity investment income included in
All Other
|
520
|
|
|
429
|
|
||
Total equity investment income included in the business segments
|
43
|
|
|
336
|
|
||
Total consolidated equity investment income
|
$
|
563
|
|
|
$
|
765
|
|
Off-Balance Sheet Arrangements and Contractual Obligations
|
Representations and Warranties
|
Table 12
|
|||||||||||||||||||||||||||||||||||
Overview of Non-Agency Securitization and Whole Loan Balances
|
|||||||||||||||||||||||||||||||||||
|
Principal Balance
|
|
Defaulted or Severely Delinquent
|
||||||||||||||||||||||||||||||||
(Dollars in billions)
|
Original
Principal Balance |
|
Outstanding Principal Balance March 31 2013
|
|
Outstanding
Principal Balance 180 Days or More Past Due |
|
Defaulted
Principal Balance |
|
Defaulted
or Severely Delinquent |
|
Borrower Made
Less than 13 Payments |
|
Borrower Made
13 to 24 Payments |
|
Borrower Made
25 to 36 Payments |
|
Borrower Made
More than 36 Payments |
||||||||||||||||||
By Entity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Bank of America
|
$
|
100
|
|
|
$
|
21
|
|
|
$
|
4
|
|
|
$
|
6
|
|
|
$
|
10
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
2
|
|
|
$
|
5
|
|
Countrywide
|
716
|
|
|
195
|
|
|
52
|
|
|
137
|
|
|
189
|
|
|
25
|
|
|
45
|
|
|
46
|
|
|
73
|
|
|||||||||
Merrill Lynch
|
65
|
|
|
16
|
|
|
3
|
|
|
14
|
|
|
17
|
|
|
3
|
|
|
4
|
|
|
3
|
|
|
7
|
|
|||||||||
First Franklin
|
82
|
|
|
17
|
|
|
5
|
|
|
23
|
|
|
28
|
|
|
5
|
|
|
6
|
|
|
5
|
|
|
12
|
|
|||||||||
Total
(1, 2)
|
$
|
963
|
|
|
$
|
249
|
|
|
$
|
64
|
|
|
$
|
180
|
|
|
$
|
244
|
|
|
$
|
34
|
|
|
$
|
57
|
|
|
$
|
56
|
|
|
$
|
97
|
|
By Product
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Prime
|
$
|
302
|
|
|
$
|
79
|
|
|
$
|
10
|
|
|
$
|
24
|
|
|
$
|
34
|
|
|
$
|
2
|
|
|
$
|
6
|
|
|
$
|
7
|
|
|
$
|
19
|
|
Alt-A
|
172
|
|
|
55
|
|
|
13
|
|
|
37
|
|
|
50
|
|
|
8
|
|
|
12
|
|
|
12
|
|
|
18
|
|
|||||||||
Pay option
|
150
|
|
|
41
|
|
|
16
|
|
|
40
|
|
|
56
|
|
|
5
|
|
|
14
|
|
|
16
|
|
|
21
|
|
|||||||||
Subprime
|
245
|
|
|
60
|
|
|
21
|
|
|
61
|
|
|
82
|
|
|
17
|
|
|
20
|
|
|
16
|
|
|
29
|
|
|||||||||
Home equity
|
88
|
|
|
12
|
|
|
—
|
|
|
18
|
|
|
18
|
|
|
2
|
|
|
5
|
|
|
4
|
|
|
7
|
|
|||||||||
Other
|
6
|
|
|
2
|
|
|
4
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
3
|
|
|||||||||
Total
|
$
|
963
|
|
|
$
|
249
|
|
|
$
|
64
|
|
|
$
|
180
|
|
|
$
|
244
|
|
|
$
|
34
|
|
|
$
|
57
|
|
|
$
|
56
|
|
|
$
|
97
|
|
(1)
|
Excludes transactions sponsored by Bank of America and Merrill Lynch where no representations or warranties were made.
|
(2)
|
Includes exposures on third-party sponsored transactions related to legacy entity originations.
|
Servicing Matters and Foreclosure Processes
|
Regulatory Matters
|
Managing Risk
|
|
Overview
|
Strategic Risk Management
|
Capital Management
|
Regulatory Capital
|
Table 13
|
|
||
Risk-weighted Assets Activity
|
|
||
(Dollars in billions)
|
Three Months Ended March 31, 2013
|
||
Risk-weighted assets, January 1
|
$
|
1,206
|
|
Changes to risk-weighted assets
|
|
||
Increase related to Comprehensive Risk Measure
(1)
|
22
|
|
|
Increase related to Incremental Risk Charge
(1)
|
7
|
|
|
Increase related to market risk regulatory VaR
|
21
|
|
|
Standard specific risk
(2)
|
28
|
|
|
Increase due to items no longer eligible to be included in market risk
|
9
|
|
|
Increases related to implementation of Basel 1 – 2013 Rules
|
87
|
|
|
Increase related to banking book (i.e. nontrading) and other exposures
|
3
|
|
|
Other changes
|
2
|
|
|
Total risk-weighted assets, March 31
|
$
|
1,298
|
|
(1)
|
For additional information, see
Capital Management – Regulatory Capital Changes
on page
60
.
|
(2)
|
A measure of the risk of loss on a position that could result from factors other than broad market movements.
|
(1)
|
Dollar amount required to meet guidelines to be considered well-capitalized.
|
(2)
|
Pro-forma Tier 1 common capital ratio at
December 31, 2012
includes the estimated impact of the Basel 1
–
2013 Rules. Represents a non-GAAP financial measure. On a pro-forma basis, risk-weighted assets would have been approximately $1,285 billion with the inclusion of $78.8 billion in pro-forma risk-weighted assets.
|
(3)
|
Reflects adjusted average total assets for the
three months ended March 31, 2013
and
December 31, 2012
.
|
Table 15
|
|||||||
Capital Composition
|
|||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
Total common shareholders' equity
|
$
|
218,513
|
|
|
$
|
218,188
|
|
Goodwill
|
(69,930
|
)
|
|
(69,976
|
)
|
||
Nonqualifying intangible assets (includes core deposit intangibles, affinity relationships, customer relationships and other intangibles)
|
(4,801
|
)
|
|
(4,994
|
)
|
||
Net unrealized gains on AFS debt and marketable equity securities and net losses on derivatives recorded in accumulated OCI, net-of-tax
|
(1,302
|
)
|
|
(2,036
|
)
|
||
Unamortized net periodic benefit costs recorded in accumulated OCI, net-of-tax
|
4,371
|
|
|
4,456
|
|
||
Fair value adjustment related to structured liabilities
(1)
|
4,140
|
|
|
4,084
|
|
||
Disallowed deferred tax asset
|
(16,497
|
)
|
|
(17,940
|
)
|
||
Other
|
1,625
|
|
|
1,621
|
|
||
Total Tier 1 common capital
|
136,119
|
|
|
133,403
|
|
||
Qualifying preferred stock
|
15,862
|
|
|
15,851
|
|
||
Trust preferred securities
|
6,696
|
|
|
6,207
|
|
||
Total Tier 1 capital
|
158,677
|
|
|
155,461
|
|
||
Long-term debt qualifying as Tier 2 capital
|
24,459
|
|
|
24,287
|
|
||
Allowance for loan and lease losses
|
22,441
|
|
|
24,179
|
|
||
Reserve for unfunded lending commitments
|
486
|
|
|
513
|
|
||
Allowance for loan and lease losses exceeding 1.25 percent of risk-weighted assets
|
(6,579
|
)
|
|
(9,459
|
)
|
||
45 percent of the pre-tax net unrealized gains on AFS marketable equity securities
|
358
|
|
|
329
|
|
||
Other
|
1,369
|
|
|
1,370
|
|
||
Total capital
|
$
|
201,211
|
|
|
$
|
196,680
|
|
(1)
|
Represents loss on structured liabilities, net-of-tax, that is excluded from Tier 1 common capital, Tier 1 capital and Total capital for regulatory capital purposes.
|
Table 16
|
||||||
Basel 1 to Basel 3 (fully phased-in) Reconciliation
(1)
|
||||||
(Dollars in millions)
|
March 31
2013 |
December 31
2012 |
||||
Regulatory capital – Basel 1 to Basel 3 (fully phased-in)
|
||||||
Basel 1 Tier 1 capital
|
$
|
158,677
|
|
$
|
155,461
|
|
Deduction of qualifying preferred stock and trust preferred securities
|
(22,558
|
)
|
(22,058
|
)
|
||
Basel 1 Tier 1 common capital
|
136,119
|
|
133,403
|
|
||
Deduction of defined benefit pension assets
|
(776
|
)
|
(737
|
)
|
||
Change in deferred tax assets and threshold deductions (deferred tax asset temporary differences, MSRs and significant investments)
|
(4,501
|
)
|
(3,020
|
)
|
||
Change in all other deductions, net
|
(2,032
|
)
|
(1,020
|
)
|
||
Basel 3 (fully phased-in) Tier 1 common capital
|
$
|
128,810
|
|
$
|
128,626
|
|
|
|
|
||||
Risk-weighted assets – Basel 1 to Basel 3 (fully phased-in)
|
|
|
||||
Basel 1 risk-weighted assets
|
$
|
1,298,187
|
|
$
|
1,205,976
|
|
Net change in credit and other risk-weighted assets
|
55,454
|
|
103,085
|
|
||
Increase due to Market Risk Final Rule
(2)
|
—
|
|
81,811
|
|
||
Basel 3 (fully phased-in) risk-weighted assets
|
$
|
1,353,641
|
|
$
|
1,390,872
|
|
|
|
|
||||
Tier 1 common capital ratios
|
|
|
||||
Basel 1
|
10.49
|
%
|
11.06
|
%
|
||
Basel 3 (fully phased-in)
|
9.52
|
|
9.25
|
|
(1)
|
Includes the Market Risk Final Rule at
March 31, 2013
. At
December 31, 2012
, the Basel 1 information did not include the Market Risk Final Rule.
|
(2)
|
Excludes the benefit of certain hedges at
December 31, 2012
. Including these hedges, the increase due to the Market Risk Final Rule would have been $78.8 billion. For more information, see
Capital Management – Capital Composition and Ratios
on page
58
.
|
Table 17
|
|||||||||||||||||||||
Bank of America, N.A. and FIA Card Services, N.A. Regulatory Capital
(1)
|
|||||||||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||
|
Actual
|
|
|
|
Actual
|
|
|
||||||||||||||
(Dollars in millions)
|
Ratio
|
|
Amount
|
|
Minimum
Required
(2)
|
|
Ratio
|
|
Amount
|
|
Minimum
Required
(2)
|
||||||||||
Tier 1 capital
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank of America, N.A.
|
12.28
|
%
|
|
$
|
121,272
|
|
|
$
|
59,239
|
|
|
12.44
|
%
|
|
$
|
118,431
|
|
|
$
|
57,099
|
|
FIA Card Services, N.A.
|
17.37
|
|
|
20,938
|
|
|
7,232
|
|
|
17.34
|
|
|
22,061
|
|
|
7,632
|
|
||||
Total capital
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank of America, N.A.
|
14.31
|
|
|
141,329
|
|
|
98,732
|
|
|
14.76
|
|
|
140,434
|
|
|
95,165
|
|
||||
FIA Card Services, N.A.
|
18.67
|
|
|
22,499
|
|
|
12,054
|
|
|
18.64
|
|
|
23,707
|
|
|
12,719
|
|
||||
Tier 1 leverage
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Bank of America, N.A.
|
8.82
|
|
|
121,272
|
|
|
68,760
|
|
|
8.59
|
|
|
118,431
|
|
|
68,957
|
|
||||
FIA Card Services, N.A.
|
12.73
|
|
|
20,938
|
|
|
8,224
|
|
|
13.67
|
|
|
22,061
|
|
|
8,067
|
|
(1)
|
BANA regulatory capital information included the Basel 1
–
2013 Rules at
March 31, 2013
. At
December 31, 2012
, BANA regulatory capital information did not include the Basel 1
–
2013 Rules. FIA is not impacted by the Basel 1
–
2013 Rules.
|
(2)
|
Dollar amount required to meet guidelines for well-capitalized institutions.
|
Common and Preferred Stock Dividends
|
Table 18
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred Stock Cash Dividend Summary
|
||||||||||||||||
Preferred Stock
|
Outstanding
Notional
Amount
(in millions)
|
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Per Annum
Dividend Rate
|
|
Dividend Per
Share
|
|||||
Series B
(1)
|
$
|
1
|
|
|
January 23, 2013
|
|
April 11, 2013
|
|
April 25, 2013
|
|
7.00
|
%
|
|
$
|
1.75
|
|
|
|
|
April 30, 2013
|
|
July 11, 2013
|
|
July 25, 2013
|
|
7.00
|
|
|
1.75
|
|
|||
Series D
(2)
|
$
|
654
|
|
|
January 3, 2013
|
|
February 28, 2013
|
|
March 14, 2013
|
|
6.204
|
%
|
|
$
|
0.38775
|
|
|
|
|
April 2, 2013
|
|
May 31, 2013
|
|
June 14, 2013
|
|
6.204
|
|
|
0.38775
|
|
|||
Series E
(2)
|
$
|
317
|
|
|
January 3, 2013
|
|
January 31, 2013
|
|
February 15, 2013
|
|
Floating
|
|
|
$
|
0.25556
|
|
|
|
|
April 2, 2013
|
|
April 30, 2013
|
|
May 15, 2013
|
|
Floating
|
|
|
0.24722
|
|
|||
Series F
|
$
|
141
|
|
|
January 3, 2013
|
|
February 28, 2013
|
|
March 15, 2013
|
|
Floating
|
|
|
$
|
1,000.00
|
|
|
|
|
April 2, 2013
|
|
May 31, 2013
|
|
June 17, 2013
|
|
Floating
|
|
|
1,044.44
|
|
|||
Series G
|
$
|
493
|
|
|
January 3, 2013
|
|
February 28, 2013
|
|
March 15, 2013
|
|
Adjustable
|
|
|
$
|
1,000.00
|
|
|
|
|
April 2, 2013
|
|
May 31, 2013
|
|
June 17, 2013
|
|
Adjustable
|
|
|
1,044.44
|
|
|||
Series H
(2, 3)
|
$
|
2,862
|
|
|
January 3, 2013
|
|
January 15, 2013
|
|
February 1, 2013
|
|
8.20
|
%
|
|
$
|
0.51250
|
|
|
|
|
April 2, 2013
|
|
April 15, 2013
|
|
May 1, 2013
|
|
8.20
|
|
|
0.51250
|
|
|||
Series I
(2)
|
$
|
365
|
|
|
January 3, 2013
|
|
March 15, 2013
|
|
April 1, 2013
|
|
6.625
|
%
|
|
$
|
0.41406
|
|
|
|
|
April 2, 2013
|
|
June 15, 2013
|
|
July 1, 2013
|
|
6.625
|
|
|
0.41406
|
|
|||
Series J
(2)
|
$
|
951
|
|
|
January 3, 2013
|
|
January 15, 2013
|
|
February 1, 2013
|
|
7.25
|
%
|
|
$
|
0.45312
|
|
|
|
|
April 2, 2013
|
|
April 15, 2013
|
|
May 1, 2013
|
|
7.25
|
|
|
0.45312
|
|
|||
Series K
(4, 5)
|
$
|
1,544
|
|
|
January 3, 2013
|
|
January 15, 2013
|
|
January 30, 2013
|
|
Fixed-to-floating
|
|
|
$
|
40.00
|
|
Series L
|
$
|
3,080
|
|
|
March 15, 2013
|
|
April 1, 2013
|
|
April 30, 2013
|
|
7.25
|
%
|
|
$
|
18.125
|
|
Series M
(4, 5)
|
$
|
1,310
|
|
|
April 2, 2013
|
|
April 30, 2013
|
|
May 15, 2013
|
|
Fixed-to-floating
|
|
|
$
|
40.625
|
|
Series T
(1)
|
$
|
5,000
|
|
|
March 15, 2013
|
|
March 26, 2013
|
|
April 10, 2013
|
|
6.00
|
%
|
|
$
|
1,500.00
|
|
Table 18
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Preferred Stock Cash Dividend Summary (continued)
|
||||||||||||||||
Preferred Stock
|
Outstanding
Notional
Amount
(in millions)
|
|
Declaration Date
|
|
Record Date
|
|
Payment Date
|
|
Per Annum
Dividend Rate
|
|
Dividend Per
Share
|
|||||
Series 1
(6)
|
$
|
98
|
|
|
January 3, 2013
|
|
February 15, 2013
|
|
February 28, 2013
|
|
Floating
|
|
|
$
|
0.18750
|
|
|
|
|
April 2, 2013
|
|
May 15, 2013
|
|
May 28, 2013
|
|
Floating
|
|
|
0.18750
|
|
|||
Series 2
(6)
|
$
|
299
|
|
|
January 3, 2013
|
|
February 15, 2013
|
|
February 28, 2013
|
|
Floating
|
|
|
$
|
0.19167
|
|
|
|
|
April 2, 2013
|
|
May 15, 2013
|
|
May 28, 2013
|
|
Floating
|
|
|
0.18542
|
|
|||
Series 3
(6)
|
$
|
653
|
|
|
January 3, 2013
|
|
February 15, 2013
|
|
February 28, 2013
|
|
6.375
|
%
|
|
$
|
0.39843
|
|
|
|
|
April 2, 2013
|
|
May 15, 2013
|
|
May 28, 2013
|
|
6.375
|
|
|
0.39843
|
|
|||
Series 4
(6)
|
$
|
210
|
|
|
January 3, 2013
|
|
February 15, 2013
|
|
February 28, 2013
|
|
Floating
|
|
|
$
|
0.25556
|
|
|
|
|
April 2, 2013
|
|
May 15, 2013
|
|
May 28, 2013
|
|
Floating
|
|
|
0.24722
|
|
|||
Series 5
(6)
|
$
|
422
|
|
|
January 3, 2013
|
|
February 1, 2013
|
|
February 21, 2013
|
|
Floating
|
|
|
$
|
0.25556
|
|
|
|
|
April 2, 2013
|
|
May 1, 2013
|
|
May 21, 2013
|
|
Floating
|
|
|
0.24722
|
|
|||
Series 6
(7)
|
$
|
59
|
|
|
January 3, 2013
|
|
March 15, 2013
|
|
March 29, 2013
|
|
6.70
|
%
|
|
$
|
0.41875
|
|
|
|
|
April 2, 2013
|
|
June 15, 2013
|
|
June 28, 2013
|
|
6.70
|
|
|
0.41875
|
|
|||
Series 7
(7)
|
$
|
17
|
|
|
January 3, 2013
|
|
March 15, 2013
|
|
March 29, 2013
|
|
6.25
|
%
|
|
$
|
0.39062
|
|
|
|
|
April 2, 2013
|
|
June 15, 2013
|
|
June 28, 2013
|
|
6.25
|
|
|
0.39062
|
|
|||
Series 8
(6, 8)
|
$
|
2,673
|
|
|
January 3, 2013
|
|
February 15, 2013
|
|
February 28, 2013
|
|
8.625
|
%
|
|
$
|
0.53906
|
|
|
|
|
April 2, 2013
|
|
May 15, 2013
|
|
May 28, 2013
|
|
8.625
|
|
|
0.53906
|
|
(1)
|
Dividends are cumulative.
|
(2)
|
Dividends per depositary share, each representing a 1/1,000
th
interest in a share of preferred stock.
|
(3)
|
This series was redeemed on May 1, 2013.
|
(4)
|
Initially pays dividends semi-annually.
|
(5)
|
Dividends per depositary share, each representing a 1/25
th
interest in a share of preferred stock.
|
(6)
|
Dividends per depositary share, each representing a 1/1,200
th
interest in a share of preferred stock.
|
(7)
|
Dividends per depositary share, each representing a 1/40
th
interest in a share of preferred stock.
|
(8)
|
Notice of redemption sent on April 1, 2013; preferred stock to be redeemed on May 28, 2013.
|
Liquidity Risk
|
|
Funding and Liquidity Risk Management
|
Table 19
|
|||||||||||
Global Excess Liquidity Sources
|
|||||||||||
(Dollars in billions)
|
March 31
2013 |
|
December 31
2012 |
|
Average for Three Months Ended March 31, 2013
|
||||||
Parent company
|
$
|
100
|
|
|
$
|
103
|
|
|
$
|
93
|
|
Bank subsidiaries
|
249
|
|
|
247
|
|
|
238
|
|
|||
Broker/dealers
|
23
|
|
|
22
|
|
|
23
|
|
|||
Total global excess liquidity sources
|
$
|
372
|
|
|
$
|
372
|
|
|
$
|
354
|
|
Table 20
|
|||||||
Global Excess Liquidity Sources Composition
|
|||||||
(Dollars in billions)
|
March 31
2013 |
|
December 31
2012 |
||||
Cash on deposit
|
$
|
58
|
|
|
$
|
65
|
|
U.S. Treasuries
|
22
|
|
|
21
|
|
||
U.S. agency securities and mortgage-backed securities
|
277
|
|
|
271
|
|
||
Non-U.S. government and supranational securities
|
15
|
|
|
15
|
|
||
Total global excess liquidity sources
|
$
|
372
|
|
|
$
|
372
|
|
Table 21
|
|||||||||||||||||||||||||||
Long-term Debt By Maturity
|
|||||||||||||||||||||||||||
(Dollars in millions)
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
Thereafter
|
|
Total
|
||||||||||||||
Bank of America Corporation
|
$
|
9,319
|
|
|
$
|
21,196
|
|
|
$
|
17,537
|
|
|
$
|
22,086
|
|
|
$
|
19,651
|
|
|
$
|
52,406
|
|
|
$
|
142,195
|
|
Merrill Lynch & Co., Inc. and subsidiaries
|
13,572
|
|
|
18,911
|
|
|
6,367
|
|
|
4,281
|
|
|
8,450
|
|
|
35,706
|
|
|
87,287
|
|
|||||||
Bank of America, N.A. and subsidiaries
|
67
|
|
|
2
|
|
|
—
|
|
|
1,092
|
|
|
6,439
|
|
|
1,821
|
|
|
9,421
|
|
|||||||
Other debt
|
3,388
|
|
|
1,490
|
|
|
1,656
|
|
|
1,514
|
|
|
18
|
|
|
1,211
|
|
|
9,277
|
|
|||||||
Total long-term debt excluding consolidated VIEs
|
26,346
|
|
|
41,599
|
|
|
25,560
|
|
|
28,973
|
|
|
34,558
|
|
|
91,144
|
|
|
248,180
|
|
|||||||
Long-term debt of consolidated VIEs
|
10,527
|
|
|
9,551
|
|
|
1,462
|
|
|
1,850
|
|
|
1,726
|
|
|
6,345
|
|
|
31,461
|
|
|||||||
Total long-term debt
|
$
|
36,873
|
|
|
$
|
51,150
|
|
|
$
|
27,022
|
|
|
$
|
30,823
|
|
|
$
|
36,284
|
|
|
$
|
97,489
|
|
|
$
|
279,641
|
|
Table 22
|
|||||||
Long-term Debt By Major Currency
|
|||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
U.S. Dollar
|
$
|
189,917
|
|
|
$
|
180,329
|
|
Euro
|
55,554
|
|
|
58,985
|
|
||
Japanese Yen
|
11,541
|
|
|
12,749
|
|
||
British Pound
|
10,320
|
|
|
11,126
|
|
||
Canadian Dollar
|
3,425
|
|
|
3,560
|
|
||
Australian Dollar
|
2,680
|
|
|
2,760
|
|
||
Swiss Franc
|
1,831
|
|
|
1,917
|
|
||
Other
|
4,373
|
|
|
4,159
|
|
||
Total long-term debt
|
$
|
279,641
|
|
|
$
|
275,585
|
|
Credit Risk Management
|
Consumer Portfolio Credit Risk Management
|
Consumer Credit Portfolio
|
Table 23
|
|||||||||||||||
Consumer Loans
|
|||||||||||||||
|
Outstandings
|
|
Purchased Credit-impaired Loan Portfolio
|
||||||||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
||||||||
Residential mortgage
(1)
|
$
|
256,924
|
|
|
$
|
253,073
|
|
|
$
|
22,004
|
|
|
$
|
17,571
|
|
Home equity
|
103,218
|
|
|
107,996
|
|
|
7,660
|
|
|
8,547
|
|
||||
U.S. credit card
|
90,047
|
|
|
94,835
|
|
|
n/a
|
|
|
n/a
|
|
||||
Non-U.S. credit card
|
10,620
|
|
|
11,697
|
|
|
n/a
|
|
|
n/a
|
|
||||
Direct/Indirect consumer
(2)
|
81,518
|
|
|
83,205
|
|
|
n/a
|
|
|
n/a
|
|
||||
Other consumer
(3)
|
1,696
|
|
|
1,628
|
|
|
n/a
|
|
|
n/a
|
|
||||
Consumer loans excluding loans accounted for under the fair value option
|
544,023
|
|
|
552,434
|
|
|
29,664
|
|
|
26,118
|
|
||||
Loans accounted for under the fair value option
(4)
|
1,041
|
|
|
1,005
|
|
|
n/a
|
|
|
n/a
|
|
||||
Total consumer loans
|
$
|
545,064
|
|
|
$
|
553,439
|
|
|
$
|
29,664
|
|
|
$
|
26,118
|
|
(1)
|
Outstandings include pay option loans of
$6.5 billion
and
$6.7 billion
, subprime loans of
$533 million
and
$509 million
and non-U.S. residential mortgage loans of
$86 million
and
$93 million
at
March 31, 2013
and
December 31, 2012
. We no longer originate pay option and subprime loans.
|
(2)
|
Outstandings include dealer financial services loans of
$36.1 billion
and
$35.9 billion
, consumer lending loans of
$4.1 billion
and
$4.7 billion
, U.S. securities-based lending margin loans of
$28.2 billion
and
$28.3 billion
, student loans of
$4.6 billion
and
$4.8 billion
, non-U.S. consumer loans of
$7.4 billion
and
$8.3 billion
and other consumer loans of
$1.1 billion
and
$1.2 billion
at
March 31, 2013
and
December 31, 2012
.
|
(3)
|
Outstandings include consumer finance loans of
$1.4 billion
and other non-U.S. consumer loans of
$5 million
at both period ends, and consumer overdrafts of
$115 million
and
$177 million
at
March 31, 2013
and
December 31, 2012
.
|
(4)
|
Consumer loans accounted for under the fair value option were residential mortgage loans of
$1.0 billion
at both
March 31, 2013
and
December 31, 2012
. See
Consumer Portfolio Credit Risk Management – Consumer Loans Accounted for Under the Fair Value Option
on page
88
and
Note 17 – Fair Value Option
to the Consolidated Financial Statements
for additional information on the fair value option.
|
Table 24
|
|||||||||||||||
Consumer Credit Quality
|
|||||||||||||||
|
Accruing Past Due 90 Days or More
|
|
Nonperforming
|
||||||||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
||||||||
Residential mortgage
(1)
|
$
|
21,617
|
|
|
$
|
22,157
|
|
|
$
|
15,002
|
|
|
$
|
15,056
|
|
Home equity
|
—
|
|
|
—
|
|
|
4,195
|
|
|
4,281
|
|
||||
U.S. credit card
|
1,360
|
|
|
1,437
|
|
|
n/a
|
|
|
n/a
|
|
||||
Non-U.S. credit card
|
181
|
|
|
212
|
|
|
n/a
|
|
|
n/a
|
|
||||
Direct/Indirect consumer
|
494
|
|
|
545
|
|
|
84
|
|
|
92
|
|
||||
Other consumer
|
1
|
|
|
2
|
|
|
1
|
|
|
2
|
|
||||
Total
(2)
|
$
|
23,653
|
|
|
$
|
24,353
|
|
|
$
|
19,282
|
|
|
$
|
19,431
|
|
Consumer loans as a percentage of outstanding consumer loans
(2)
|
4.35
|
%
|
|
4.41
|
%
|
|
3.54
|
%
|
|
3.52
|
%
|
||||
Consumer loans as a percentage of outstanding loans, excluding PCI and fully-insured loan portfolios
(2)
|
0.48
|
|
|
0.50
|
|
|
4.55
|
|
|
4.46
|
|
(1)
|
Balances accruing past due 90 days or more are fully-insured loans. These balances include
$17.0 billion
and
$17.8 billion
of loans on which interest has been curtailed by the FHA, and therefore are no longer accruing interest, although principal is still insured, and
$4.6 billion
and
$4.4 billion
of loans on which interest was still accruing at
March 31, 2013
and
December 31, 2012
.
|
(2)
|
Balances exclude consumer loans accounted for under the fair value option. At
March 31, 2013
and
December 31, 2012
,
$401 million
and
$391 million
of loans accounted for under the fair value option were past due 90 days or more and not accruing interest.
|
Table 25
|
|
|
|
|
|||||||||
Consumer Net Charge-offs and Related Ratios
|
|
|
|
|
|||||||||
|
Three Months Ended March 31
|
||||||||||||
|
Net Charge-offs
(1)
|
|
Net Charge-off Ratios
(1, 2)
|
||||||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||
Residential mortgage
|
$
|
383
|
|
|
$
|
914
|
|
|
0.60
|
%
|
|
1.36
|
%
|
Home equity
|
684
|
|
|
957
|
|
|
2.62
|
|
|
3.13
|
|
||
U.S. credit card
|
947
|
|
|
1,331
|
|
|
4.19
|
|
|
5.44
|
|
||
Non-U.S. credit card
|
112
|
|
|
203
|
|
|
4.14
|
|
|
5.78
|
|
||
Direct/Indirect consumer
|
124
|
|
|
226
|
|
|
0.61
|
|
|
1.03
|
|
||
Other consumer
|
52
|
|
|
56
|
|
|
12.76
|
|
|
8.59
|
|
||
Total
|
$
|
2,302
|
|
|
$
|
3,687
|
|
|
1.70
|
|
|
2.48
|
|
(1)
|
Net charge-offs exclude
$745 million
and
$94 million
of write-offs in the home equity and residential mortgage PCI loan portfolios for the
three months ended March 31, 2013
compared to none for the
same period in 2012
. These write-offs decreased the PCI valuation allowance included as part of the allowance for loan and lease losses. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
83
.
|
(2)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.
|
Table 26
|
|||||||||||||||||||||||
Home Loans Portfolio
|
|||||||||||||||||||||||
|
Outstandings
|
|
Nonperforming
|
|
Net Charge-offs
(1)
|
||||||||||||||||||
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
|
Three Months Ended
March 31 |
||||||||||||||
(Dollars in millions)
|
|
|
|
|
2013
|
|
2012
|
||||||||||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
$
|
170,433
|
|
|
$
|
170,116
|
|
|
$
|
3,407
|
|
|
$
|
3,190
|
|
|
$
|
101
|
|
|
$
|
143
|
|
Home equity
|
58,958
|
|
|
60,851
|
|
|
1,302
|
|
|
1,265
|
|
|
166
|
|
|
184
|
|
||||||
Total Core portfolio
|
229,391
|
|
|
230,967
|
|
|
4,709
|
|
|
4,455
|
|
|
267
|
|
|
327
|
|
||||||
Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
(2)
|
86,491
|
|
|
82,957
|
|
|
11,595
|
|
|
11,866
|
|
|
282
|
|
|
771
|
|
||||||
Home equity
|
44,260
|
|
|
47,145
|
|
|
2,893
|
|
|
3,016
|
|
|
518
|
|
|
773
|
|
||||||
Total Legacy Assets & Servicing portfolio
|
130,751
|
|
|
130,102
|
|
|
14,488
|
|
|
14,882
|
|
|
800
|
|
|
1,544
|
|
||||||
Home loans portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
256,924
|
|
|
253,073
|
|
|
15,002
|
|
|
15,056
|
|
|
383
|
|
|
914
|
|
||||||
Home equity
|
103,218
|
|
|
107,996
|
|
|
4,195
|
|
|
4,281
|
|
|
684
|
|
|
957
|
|
||||||
Total home loans portfolio
|
$
|
360,142
|
|
|
$
|
361,069
|
|
|
$
|
19,197
|
|
|
$
|
19,337
|
|
|
$
|
1,067
|
|
|
$
|
1,871
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
Allowance for loan
and lease losses
|
|
Provision for loan
and lease losses
|
||||||||||||||||
|
|
|
|
|
March 31
2013 |
|
December 31
2012 |
|
Three Months Ended
March 31 |
||||||||||||||
|
|
|
|
|
|
|
2013
|
|
2012
|
||||||||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
|
|
|
|
$
|
833
|
|
|
$
|
829
|
|
|
$
|
105
|
|
|
$
|
200
|
|
||||
Home equity
|
|
|
|
|
1,227
|
|
|
1,286
|
|
|
107
|
|
|
105
|
|
||||||||
Total Core portfolio
|
|
|
|
|
2,060
|
|
|
2,115
|
|
|
212
|
|
|
305
|
|
||||||||
Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
|
|
|
|
5,898
|
|
|
6,259
|
|
|
34
|
|
|
1,023
|
|
||||||||
Home equity
|
|
|
|
|
5,480
|
|
|
6,559
|
|
|
238
|
|
|
437
|
|
||||||||
Total Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
11,378
|
|
|
12,818
|
|
|
272
|
|
|
1,460
|
|
||||||
Home loans portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential mortgage
|
|
|
|
|
6,731
|
|
|
7,088
|
|
|
139
|
|
|
1,223
|
|
||||||||
Home equity
|
|
|
|
|
6,707
|
|
|
7,845
|
|
|
345
|
|
|
542
|
|
||||||||
Total home loans portfolio
|
|
|
|
|
$
|
13,438
|
|
|
$
|
14,933
|
|
|
$
|
484
|
|
|
$
|
1,765
|
|
(1)
|
Net charge-offs exclude
$745 million
and
$94 million
of write-offs in the home equity and residential mortgage PCI loan portfolios for the
three months ended March 31, 2013
which are included in the Legacy Assets & Servicing portfolio. There were no write-offs for the
three months ended March 31, 2012
. Write-offs in the PCI loan portfolio decrease the PCI valuation allowance included as part of the allowance for loan and lease losses. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
83
.
|
(2)
|
Balances exclude consumer loans accounted for under the fair value option of
$1.0 billion
at both
March 31, 2013
and
December 31, 2012
. See
Consumer Portfolio Credit Risk Management – Consumer Loans Accounted for Under the Fair Value Option
on page
88
and
Note 17 – Fair Value Option
to the Consolidated Financial Statements
for additional information on the fair value option.
|
Table 27
|
|||||||||||||||
Residential Mortgage – Key Credit Statistics
|
|||||||||||||||
|
Reported Basis
(1)
|
|
Excluding Purchased
Credit-impaired and Fully-insured Loans
|
||||||||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
||||||||
Outstandings
|
$
|
256,924
|
|
|
$
|
253,073
|
|
|
$
|
143,967
|
|
|
$
|
144,648
|
|
Accruing past due 30 days or more
|
27,584
|
|
|
28,816
|
|
|
2,851
|
|
|
3,118
|
|
||||
Accruing past due 90 days or more
|
21,617
|
|
|
22,157
|
|
|
—
|
|
|
—
|
|
||||
Nonperforming loans
|
15,002
|
|
|
15,056
|
|
|
15,002
|
|
|
15,056
|
|
||||
Percent of portfolio
|
|
|
|
|
|
|
|
||||||||
Refreshed LTV greater than 90 but less than 100
|
17
|
%
|
|
15
|
%
|
|
9
|
%
|
|
10
|
%
|
||||
Refreshed LTV greater than 100
|
22
|
|
|
28
|
|
|
17
|
|
|
20
|
|
||||
Refreshed FICO below 620
|
24
|
|
|
23
|
|
|
14
|
|
|
14
|
|
||||
2006 and 2007 vintages
(2)
|
25
|
|
|
25
|
|
|
33
|
|
|
34
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended March 31
|
||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net charge-off ratio
(3)
|
0.60
|
%
|
|
1.36
|
%
|
|
1.06
|
%
|
|
2.33
|
%
|
(1)
|
Outstandings, accruing past due, nonperforming loans and percentages of portfolio exclude loans accounted for under the fair value option. There were
$1.0 billion
of residential mortgage loans accounted for under the fair value option at both
March 31, 2013
and
December 31, 2012
. See
Consumer Portfolio Credit Risk Management – Consumer Loans Accounted for Under the Fair Value Option
on page
88
and
Note 17 – Fair Value Option
to the Consolidated Financial Statements
for additional information on the fair value option.
|
(2)
|
These vintages of loans account for
59 percent
and
61 percent
of nonperforming residential mortgage loans at
March 31, 2013
and
December 31, 2012
, and
65 percent
and
73 percent
of residential mortgage net charge-offs for the
three months ended March 31, 2013 and 2012
.
|
(3)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.
|
Table 28
|
|||||||||||||||||||||||
Residential Mortgage State Concentrations
|
|||||||||||||||||||||||
|
Outstandings
(1)
|
|
Nonperforming
(1)
|
|
Net Charge-offs
(2)
|
||||||||||||||||||
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
|
Three Months Ended
March 31 |
||||||||||||||
(Dollars in millions)
|
|
|
|
|
2013
|
|
2012
|
||||||||||||||||
California
|
$
|
48,395
|
|
|
$
|
48,673
|
|
|
$
|
4,651
|
|
|
$
|
4,581
|
|
|
$
|
96
|
|
|
$
|
337
|
|
New York
(3)
|
11,528
|
|
|
11,291
|
|
|
1,000
|
|
|
972
|
|
|
15
|
|
|
20
|
|
||||||
Florida
(3)
|
10,985
|
|
|
11,101
|
|
|
1,743
|
|
|
1,773
|
|
|
34
|
|
|
88
|
|
||||||
Texas
|
6,867
|
|
|
6,933
|
|
|
487
|
|
|
499
|
|
|
9
|
|
|
19
|
|
||||||
Virginia
|
5,006
|
|
|
5,097
|
|
|
426
|
|
|
410
|
|
|
9
|
|
|
16
|
|
||||||
Other U.S./Non-U.S.
|
61,186
|
|
|
61,553
|
|
|
6,695
|
|
|
6,821
|
|
|
220
|
|
|
434
|
|
||||||
Residential mortgage loans
(4)
|
$
|
143,967
|
|
|
$
|
144,648
|
|
|
$
|
15,002
|
|
|
$
|
15,056
|
|
|
$
|
383
|
|
|
$
|
914
|
|
Fully-insured loan portfolio
|
90,953
|
|
|
90,854
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchased credit-impaired residential mortgage loan portfolio
|
22,004
|
|
|
17,571
|
|
|
|
|
|
|
|
|
|
||||||||||
Total residential mortgage loan portfolio
|
$
|
256,924
|
|
|
$
|
253,073
|
|
|
|
|
|
|
|
|
|
(1)
|
Outstandings and nonperforming amounts exclude loans accounted for under the fair value option. There were
$1.0 billion
of residential mortgage loans accounted for under the fair value option at both
March 31, 2013
and
December 31, 2012
. See
Consumer Portfolio Credit Risk Management – Consumer Loans Accounted for Under the Fair Value Option
on page
88
and
Note 17 – Fair Value Option
to the Consolidated Financial Statements
for additional information on the fair value option.
|
(2)
|
Net charge-offs exclude
$94 million
of write-offs in the residential mortgage PCI loan portfolio for the
three months ended March 31, 2013
compared to none for the same period in 2012. These write-offs decreased the PCI valuation allowance included as part of the allowance for loan and lease losses. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
83
.
|
(3)
|
In these states, foreclosure requires a court order following a legal proceeding (judicial states).
|
(4)
|
Amount excludes the PCI residential mortgage and fully-insured loan portfolios.
|
Table 29
|
|||||||||||||||
Home Equity – Key Credit Statistics
|
|||||||||||||||
|
Reported Basis
|
|
Excluding Purchased Credit-impaired Loans
|
||||||||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
||||||||
Outstandings
|
$
|
103,218
|
|
|
$
|
107,996
|
|
|
$
|
95,558
|
|
|
$
|
99,449
|
|
Accruing past due 30 days or more
(1)
|
983
|
|
|
1,098
|
|
|
983
|
|
|
1,098
|
|
||||
Nonperforming loans
(1)
|
4,195
|
|
|
4,281
|
|
|
4,195
|
|
|
4,281
|
|
||||
Percent of portfolio
|
|
|
|
|
|
|
|
|
|
|
|
||||
Refreshed combined LTV greater than 90 but less than 100
|
10
|
%
|
|
10
|
%
|
|
10
|
%
|
|
10
|
%
|
||||
Refreshed combined LTV greater than 100
|
30
|
|
|
31
|
|
|
27
|
|
|
29
|
|
||||
Refreshed FICO below 620
|
9
|
|
|
9
|
|
|
8
|
|
|
8
|
|
||||
2006 and 2007 vintages
(2)
|
48
|
|
|
48
|
|
|
45
|
|
|
46
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended March 31
|
||||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net charge-off ratio
(3)
|
2.62
|
%
|
|
3.13
|
%
|
|
2.83
|
%
|
|
3.47
|
%
|
(1)
|
Accruing past due 30 days or more includes
$303 million
and
$321 million
and nonperforming loans includes
$791 million
and
$824 million
of loans where we serviced the underlying first-lien at
March 31, 2013
and
December 31, 2012
.
|
(2)
|
These vintages of loans have higher refreshed combined LTV ratios and accounted for
51 percent
of nonperforming home equity loans at both
March 31, 2013
and
December 31, 2012
, and accounted for
60 percent
and
65 percent
of net charge-offs for the
three months ended March 31, 2013 and 2012
.
|
(3)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans.
|
Table 30
|
|||||||||||||||||||||||
Home Equity State Concentrations
|
|||||||||||||||||||||||
|
Outstandings
|
|
Nonperforming
|
|
Net Charge-offs
(1)
|
||||||||||||||||||
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
|
Three Months Ended
March 31 |
||||||||||||||
(Dollars in millions)
|
|
|
|
|
2013
|
|
2012
|
||||||||||||||||
California
|
$
|
27,566
|
|
|
$
|
28,728
|
|
|
$
|
1,100
|
|
|
$
|
1,127
|
|
|
$
|
193
|
|
|
$
|
316
|
|
Florida
(2)
|
11,523
|
|
|
11,898
|
|
|
682
|
|
|
706
|
|
|
122
|
|
|
164
|
|
||||||
New Jersey
(2)
|
6,574
|
|
|
6,788
|
|
|
305
|
|
|
312
|
|
|
36
|
|
|
43
|
|
||||||
New York
(2)
|
6,518
|
|
|
6,734
|
|
|
409
|
|
|
419
|
|
|
39
|
|
|
48
|
|
||||||
Massachusetts
|
4,200
|
|
|
4,381
|
|
|
141
|
|
|
140
|
|
|
15
|
|
|
14
|
|
||||||
Other U.S./Non-U.S.
|
39,177
|
|
|
40,920
|
|
|
1,558
|
|
|
1,577
|
|
|
279
|
|
|
372
|
|
||||||
Home equity loans
(3)
|
$
|
95,558
|
|
|
$
|
99,449
|
|
|
$
|
4,195
|
|
|
$
|
4,281
|
|
|
$
|
684
|
|
|
$
|
957
|
|
Purchased credit-impaired home equity portfolio
|
7,660
|
|
|
8,547
|
|
|
|
|
|
|
|
|
|
||||||||||
Total home equity loan portfolio
|
$
|
103,218
|
|
|
$
|
107,996
|
|
|
|
|
|
|
|
|
|
(1)
|
Net charge-offs exclude
$745 million
of write-offs in the home equity PCI loan portfolio for the
three months ended March 31, 2013
compared to none for the same period in 2012. These write-offs decreased the PCI valuation allowance included as part of the allowance for loan and lease losses. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
83
.
|
(2)
|
In these states, foreclosure requires a court order following a legal proceeding (judicial states).
|
(3)
|
Amount excludes the PCI home equity portfolio.
|
Table 31
|
||||||||||||||||||
Purchased Credit-impaired Loan Portfolio
|
||||||||||||||||||
|
March 31, 2013
|
|||||||||||||||||
(Dollars in millions)
|
Unpaid
Principal
Balance
|
|
Carrying
Value
|
|
Related
Valuation
Allowance
|
|
Carrying
Value Net of Valuation
Allowance
|
|
Percent of Unpaid
Principal
Balance
|
|||||||||
Residential mortgage
|
$
|
23,194
|
|
|
$
|
22,004
|
|
|
$
|
2,804
|
|
|
$
|
19,200
|
|
|
82.78
|
%
|
Home equity
|
7,456
|
|
|
7,660
|
|
|
1,686
|
|
|
5,974
|
|
|
80.12
|
|
||||
Total purchased credit-impaired loan portfolio
|
$
|
30,650
|
|
|
$
|
29,664
|
|
|
$
|
4,490
|
|
|
$
|
25,174
|
|
|
82.13
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
December 31, 2012
|
|||||||||||||||||
Residential mortgage
|
$
|
18,179
|
|
|
$
|
17,571
|
|
|
$
|
3,108
|
|
|
$
|
14,463
|
|
|
79.56
|
%
|
Home equity
|
8,324
|
|
|
8,547
|
|
|
2,428
|
|
|
6,119
|
|
|
73.51
|
|
||||
Total purchased credit-impaired loan portfolio
|
$
|
26,503
|
|
|
$
|
26,118
|
|
|
$
|
5,536
|
|
|
$
|
20,582
|
|
|
77.66
|
|
Table 32
|
|||||||
Outstanding Purchased Credit-impaired Loan Portfolio – Residential Mortgage State Concentrations
|
|||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
California
|
$
|
9,841
|
|
|
$
|
9,253
|
|
Florida
(1)
|
2,080
|
|
|
1,812
|
|
||
Virginia
|
848
|
|
|
718
|
|
||
Maryland
|
819
|
|
|
421
|
|
||
Texas
|
503
|
|
|
204
|
|
||
Other U.S./Non-U.S.
|
7,913
|
|
|
5,163
|
|
||
Total
|
$
|
22,004
|
|
|
$
|
17,571
|
|
(1)
|
In this state, foreclosure requires a court order following a legal proceeding (judicial state).
|
Table 33
|
|||||||
Outstanding Purchased Credit-impaired Loan Portfolio – Home Equity State Concentrations
|
|||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
California
|
$
|
2,299
|
|
|
$
|
2,614
|
|
Florida
(1)
|
413
|
|
|
509
|
|
||
Virginia
|
356
|
|
|
380
|
|
||
Arizona
|
252
|
|
|
294
|
|
||
Colorado
|
244
|
|
|
260
|
|
||
Other U.S./Non-U.S.
|
4,096
|
|
|
4,490
|
|
||
Total
|
$
|
7,660
|
|
|
$
|
8,547
|
|
(1)
|
In this state, foreclosure requires a court order following a legal proceeding (judicial state).
|
Table 34
|
|||||||
U.S. Credit Card – Key Credit Statistics
|
|||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
Outstandings
|
$
|
90,047
|
|
|
$
|
94,835
|
|
Accruing past due 30 days or more
|
2,510
|
|
|
2,748
|
|
||
Accruing past due 90 days or more
|
1,360
|
|
|
1,437
|
|
||
|
|
|
|
||||
|
Three Months Ended
March 31 |
||||||
|
2013
|
|
2012
|
||||
Net charge-offs
|
$
|
947
|
|
|
$
|
1,331
|
|
Net charge-off ratios
(1)
|
4.19
|
%
|
|
5.44
|
%
|
(1)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans.
|
Table 35
|
|||||||||||||||||||||||
U.S. Credit Card State Concentrations
|
|||||||||||||||||||||||
|
Outstandings
|
|
Accruing Past Due
90 Days or More
|
|
Net Charge-offs
|
||||||||||||||||||
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
|
Three Months Ended
March 31 |
||||||||||||||
(Dollars in millions)
|
|
|
|
|
2013
|
|
2012
|
||||||||||||||||
California
|
$
|
13,446
|
|
|
$
|
14,101
|
|
|
$
|
217
|
|
|
$
|
235
|
|
|
$
|
162
|
|
|
$
|
243
|
|
Florida
|
7,137
|
|
|
7,469
|
|
|
136
|
|
|
149
|
|
|
103
|
|
|
151
|
|
||||||
Texas
|
6,181
|
|
|
6,448
|
|
|
86
|
|
|
92
|
|
|
61
|
|
|
82
|
|
||||||
New York
|
5,448
|
|
|
5,746
|
|
|
95
|
|
|
91
|
|
|
60
|
|
|
77
|
|
||||||
New Jersey
|
3,743
|
|
|
3,959
|
|
|
68
|
|
|
60
|
|
|
39
|
|
|
53
|
|
||||||
Other U.S.
|
54,092
|
|
|
57,112
|
|
|
758
|
|
|
810
|
|
|
522
|
|
|
725
|
|
||||||
Total U.S. credit card portfolio
|
$
|
90,047
|
|
|
$
|
94,835
|
|
|
$
|
1,360
|
|
|
$
|
1,437
|
|
|
$
|
947
|
|
|
$
|
1,331
|
|
Table 36
|
|||||||
Non-U.S. Credit Card – Key Credit Statistics
|
|||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
Outstandings
|
$
|
10,620
|
|
|
$
|
11,697
|
|
Accruing past due 30 days or more
|
337
|
|
|
403
|
|
||
Accruing past due 90 days or more
|
181
|
|
|
212
|
|
||
|
|
|
|
||||
|
Three Months Ended
March 31 |
||||||
|
2013
|
|
2012
|
||||
Net charge-offs
|
$
|
112
|
|
|
$
|
203
|
|
Net charge-off ratios
(1)
|
4.14
|
%
|
|
5.78
|
%
|
(1)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases.
|
Table 37
|
|||||||||||||||||||||||
Direct/Indirect State Concentrations
|
|||||||||||||||||||||||
|
Outstandings
|
|
Accruing Past Due
90 Days or More
|
|
Net Charge-offs
|
||||||||||||||||||
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
|
Three Months Ended
March 31 |
||||||||||||||
(Dollars in millions)
|
|
|
|
|
2013
|
|
2012
|
||||||||||||||||
California
|
$
|
10,403
|
|
|
$
|
10,793
|
|
|
$
|
45
|
|
|
$
|
53
|
|
|
$
|
14
|
|
|
$
|
31
|
|
Florida
|
7,504
|
|
|
7,363
|
|
|
30
|
|
|
37
|
|
|
13
|
|
|
25
|
|
||||||
Texas
|
7,295
|
|
|
7,239
|
|
|
37
|
|
|
41
|
|
|
12
|
|
|
18
|
|
||||||
New York
|
4,687
|
|
|
4,794
|
|
|
24
|
|
|
28
|
|
|
7
|
|
|
12
|
|
||||||
Georgia
|
2,458
|
|
|
2,491
|
|
|
28
|
|
|
31
|
|
|
5
|
|
|
9
|
|
||||||
Other U.S./Non-U.S.
|
49,171
|
|
|
50,525
|
|
|
330
|
|
|
355
|
|
|
73
|
|
|
131
|
|
||||||
Total direct/indirect loan portfolio
|
$
|
81,518
|
|
|
$
|
83,205
|
|
|
$
|
494
|
|
|
$
|
545
|
|
|
$
|
124
|
|
|
$
|
226
|
|
Table 38
|
|||||||
Nonperforming Consumer Loans and Foreclosed Properties Activity
(1)
|
|||||||
|
Three Months Ended
March 31 |
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Nonperforming loans, January 1
|
$
|
19,431
|
|
|
$
|
18,768
|
|
Additions to nonperforming loans:
|
|
|
|
||||
New nonperforming loans
|
2,661
|
|
|
3,308
|
|
||
Implementation of regulatory interagency guidance
(2)
|
n/a
|
|
|
1,853
|
|
||
Reductions to nonperforming loans:
|
|
|
|
||||
Paydowns and payoffs
|
(680
|
)
|
|
(1,153
|
)
|
||
Returns to performing status
(3)
|
(943
|
)
|
|
(913
|
)
|
||
Charge-offs
|
(1,072
|
)
|
|
(1,737
|
)
|
||
Transfers to foreclosed properties
(4)
|
(115
|
)
|
|
(402
|
)
|
||
Total net additions (reductions) to nonperforming loans
|
(149
|
)
|
|
956
|
|
||
Total nonperforming loans, March 31
(5)
|
19,282
|
|
|
19,724
|
|
||
Foreclosed properties, January 1
(6)
|
650
|
|
|
1,991
|
|
||
Additions to foreclosed properties:
|
|
|
|
||||
New foreclosed properties
(4)
|
208
|
|
|
547
|
|
||
Reductions to foreclosed properties:
|
|
|
|
||||
Sales
|
(218
|
)
|
|
(649
|
)
|
||
Write-downs
|
(20
|
)
|
|
(84
|
)
|
||
Total net reductions to foreclosed properties
|
(30
|
)
|
|
(186
|
)
|
||
Total foreclosed properties, March 31
|
620
|
|
|
1,805
|
|
||
Nonperforming consumer loans and foreclosed properties, March 31
|
$
|
19,902
|
|
|
$
|
21,529
|
|
Nonperforming consumer loans as a percentage of outstanding consumer loans
(7)
|
3.54
|
%
|
|
3.36
|
%
|
||
Nonperforming consumer loans and foreclosed properties as a percentage of outstanding consumer loans and foreclosed properties
(7)
|
3.65
|
|
|
3.65
|
|
(1)
|
Balances do not include nonperforming LHFS of
$672 million
and
$645 million
and nonaccruing TDRs removed from the PCI loan portfolio prior to January 1, 2010 of
$512 million
and
$459 million
at
March 31, 2013 and 2012
as well as loans accruing past due 90 days or more as presented in
Table 24
and
Note 5 – Outstanding Loans and Leases
to the Consolidated Financial Statements
.
|
(2)
|
As a result of regulatory interagency guidance issued during 2012, we reclassified
$1.9 billion
of performing home equity loans (of which $1.6 billion were current) to nonperforming. For additional information on regulatory interagency guidance, see
Consumer Portfolio Credit Risk Management
on page
80
of the MD&A of the Corporation's 2012 Annual Report on Form 10-K
.
|
(3)
|
Consumer loans may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected, or when the loan otherwise becomes well-secured and is in the process of collection.
|
(4)
|
New foreclosed properties represents transfers of nonperforming loans to foreclosed properties net of charge-offs taken during the first 90 days after transfer of a loan to foreclosed properties. New foreclosed properties also includes properties obtained upon foreclosure of delinquent PCI loans, properties repurchased due to representations and warranties exposure and properties acquired with newly consolidated subsidiaries.
|
(5)
|
At
March 31, 2013
,
49 percent
of nonperforming loans were 180 days or more past due and were written down through charge-offs to
62 percent
of their unpaid principal balance.
|
(6)
|
Foreclosed property balances do not include loans that are insured by the FHA and have entered foreclosure of
$2.3 billion
and
$1.1 billion
at
March 31, 2013 and 2012
.
|
(7)
|
Outstanding consumer loans exclude loans accounted for under the fair value option.
|
Table 39
|
|||||||||||||||||||||||
Home Loans Troubled Debt Restructurings
|
|||||||||||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
(Dollars in millions)
|
Total
|
|
Nonperforming
|
|
Performing
|
|
Total
|
|
Nonperforming
|
|
Performing
|
||||||||||||
Residential mortgage
(1, 2)
|
$
|
31,462
|
|
|
$
|
9,595
|
|
|
$
|
21,867
|
|
|
$
|
28,125
|
|
|
$
|
9,040
|
|
|
$
|
19,085
|
|
Home equity
(3)
|
2,119
|
|
|
1,259
|
|
|
860
|
|
|
2,125
|
|
|
1,242
|
|
|
883
|
|
||||||
Total home loans troubled debt restructurings
|
$
|
33,581
|
|
|
$
|
10,854
|
|
|
$
|
22,727
|
|
|
$
|
30,250
|
|
|
$
|
10,282
|
|
|
$
|
19,968
|
|
(1)
|
Residential mortgage TDRs deemed collateral dependent totaled
$9.7 billion
and
$9.4 billion
, and included
$6.9 billion
and
$6.4 billion
of loans classified as nonperforming and
$2.8 billion
and
$3.0 billion
of loans classified as performing at
March 31, 2013
and
December 31, 2012
.
|
(2)
|
Residential mortgage performing TDRs included
$14.6 billion
and
$11.9 billion
of loans that were fully-insured at
March 31, 2013
and
December 31, 2012
.
|
(3)
|
Home equity TDRs deemed collateral dependent totaled
$1.4 billion
and included
$1.0 billion
of loans classified as nonperforming at both period ends, and
$330 million
and
$348 million
of loans classified as performing at
March 31, 2013
and
December 31, 2012
.
|
Commercial Portfolio Credit Risk Management
|
Commercial Credit Portfolio
|
Table 40
|
|||||||||||||||||||||||
Commercial Loans and Leases
|
|||||||||||||||||||||||
|
Outstandings
|
|
Nonperforming
|
|
Accruing Past Due 90
Days or More |
||||||||||||||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
||||||||||||
U.S. commercial
|
$
|
201,360
|
|
|
$
|
197,126
|
|
|
$
|
1,354
|
|
|
$
|
1,484
|
|
|
$
|
23
|
|
|
$
|
65
|
|
Commercial real estate
(1)
|
39,060
|
|
|
38,637
|
|
|
1,139
|
|
|
1,513
|
|
|
11
|
|
|
29
|
|
||||||
Commercial lease financing
|
23,467
|
|
|
23,843
|
|
|
19
|
|
|
44
|
|
|
10
|
|
|
15
|
|
||||||
Non-U.S. commercial
|
82,460
|
|
|
74,184
|
|
|
112
|
|
|
68
|
|
|
—
|
|
|
—
|
|
||||||
|
346,347
|
|
|
333,790
|
|
|
2,624
|
|
|
3,109
|
|
|
44
|
|
|
109
|
|
||||||
U.S. small business commercial
(2)
|
12,402
|
|
|
12,593
|
|
|
110
|
|
|
115
|
|
|
116
|
|
|
120
|
|
||||||
Commercial loans excluding loans accounted for under the fair value option
|
358,749
|
|
|
346,383
|
|
|
2,734
|
|
|
3,224
|
|
|
160
|
|
|
229
|
|
||||||
Loans accounted for under the fair value option
(3)
|
7,779
|
|
|
7,997
|
|
|
11
|
|
|
11
|
|
|
—
|
|
|
—
|
|
||||||
Total commercial loans and leases
|
$
|
366,528
|
|
|
$
|
354,380
|
|
|
$
|
2,745
|
|
|
$
|
3,235
|
|
|
$
|
160
|
|
|
$
|
229
|
|
(1)
|
Includes U.S. commercial real estate loans of
$37.6 billion
and
$37.2 billion
and non-U.S. commercial real estate loans of
$1.4 billion
and
$1.5 billion
at
March 31, 2013
and
December 31, 2012
.
|
(2)
|
Includes card-related products.
|
(3)
|
Commercial loans accounted for under the fair value option include U.S. commercial loans of
$2.1 billion
and
$2.3 billion
at
March 31, 2013
and
December 31, 2012
, and non-U.S. commercial loans of
$5.7 billion
at both periods. See
Note 17 – Fair Value Option
to the Consolidated Financial Statements
for additional information on the fair value option.
|
Table 41
|
|
|
|
|
|||||||||
Commercial Net Charge-offs and Related Ratios
|
|
|
|
|
|||||||||
|
Three Months Ended March 31
|
||||||||||||
|
Net Charge-offs
|
|
Net Charge-off Ratios
(1)
|
||||||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||
U.S. commercial
|
$
|
45
|
|
|
$
|
66
|
|
|
0.09
|
%
|
|
0.15
|
%
|
Commercial real estate
|
93
|
|
|
132
|
|
|
0.96
|
|
|
1.36
|
|
||
Commercial lease financing
|
(10
|
)
|
|
(9
|
)
|
|
(0.18
|
)
|
|
(0.16
|
)
|
||
Non-U.S. commercial
|
(15
|
)
|
|
(5
|
)
|
|
(0.08
|
)
|
|
(0.04
|
)
|
||
|
113
|
|
|
184
|
|
|
0.14
|
|
|
0.25
|
|
||
U.S. small business commercial
|
102
|
|
|
185
|
|
|
3.33
|
|
|
5.63
|
|
||
Total commercial
|
$
|
215
|
|
|
$
|
369
|
|
|
0.25
|
|
|
0.48
|
|
(1)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option.
|
Table 42
|
|||||||||||||||||||||||
Commercial Credit Exposure by Type
|
|||||||||||||||||||||||
|
Commercial Utilized
(1)
|
|
Commercial Unfunded
(2, 3)
|
|
Total Commercial Committed
|
||||||||||||||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
||||||||||||
Loans and leases
|
$
|
366,528
|
|
|
$
|
354,380
|
|
|
$
|
281,857
|
|
|
$
|
281,915
|
|
|
$
|
648,385
|
|
|
$
|
636,295
|
|
Derivative assets
(4)
|
52,247
|
|
|
53,497
|
|
|
—
|
|
|
—
|
|
|
52,247
|
|
|
53,497
|
|
||||||
Standby letters of credit and financial guarantees
|
39,839
|
|
|
41,036
|
|
|
1,539
|
|
|
2,119
|
|
|
41,378
|
|
|
43,155
|
|
||||||
Debt securities and other investments
|
9,720
|
|
|
10,937
|
|
|
7,456
|
|
|
6,914
|
|
|
17,176
|
|
|
17,851
|
|
||||||
Loans held-for-sale
|
8,389
|
|
|
7,928
|
|
|
209
|
|
|
3,763
|
|
|
8,598
|
|
|
11,691
|
|
||||||
Commercial letters of credit
|
2,097
|
|
|
2,065
|
|
|
611
|
|
|
564
|
|
|
2,708
|
|
|
2,629
|
|
||||||
Bankers' acceptances
|
315
|
|
|
185
|
|
|
2
|
|
|
3
|
|
|
317
|
|
|
188
|
|
||||||
Foreclosed properties and other
(5)
|
1,146
|
|
|
1,699
|
|
|
—
|
|
|
—
|
|
|
1,146
|
|
|
1,699
|
|
||||||
Total
|
$
|
480,281
|
|
|
$
|
471,727
|
|
|
$
|
291,674
|
|
|
$
|
295,278
|
|
|
$
|
771,955
|
|
|
$
|
767,005
|
|
(1)
|
Total commercial utilized exposure at
March 31, 2013
and
December 31, 2012
includes loans outstanding of
$7.8 billion
and
$8.0 billion
and commercial letters of credit with a notional value of $567 million and $672 million accounted for under the fair value option.
|
(2)
|
Total commercial unfunded exposure at
March 31, 2013
and
December 31, 2012
includes loan commitments with a notional value of $15.1 billion and $17.6 billion accounted for under the fair value option.
|
(3)
|
Excludes unused business card lines which are not legally binding.
|
(4)
|
Derivative assets are carried at fair value, reflect the effects of legally enforceable master netting agreements and have been reduced by cash collateral of
$57.7 billion
and
$58.1 billion
at
March 31, 2013
and
December 31, 2012
. Not reflected in utilized and committed exposure is additional derivative collateral held of $18.0 billion and $18.7 billion which consists primarily of other marketable securities.
|
(5)
|
Includes $813 million and $1.3 billion of monoline exposure at
March 31, 2013
and
December 31, 2012
, as discussed in
Commercial Portfolio Credit Risk Management – Monoline Exposure
on page
100
.
|
Table 43
|
|||||||||||||
Commercial Utilized Reservable Criticized Exposure
|
|||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||
(Dollars in millions)
|
Amount
(1)
|
|
Percent
(2)
|
|
Amount
(1)
|
|
Percent
(2)
|
||||||
U.S. commercial
|
$
|
8,680
|
|
|
3.70
|
%
|
|
$
|
8,631
|
|
|
3.72
|
%
|
Commercial real estate
|
3,048
|
|
|
7.37
|
|
|
3,782
|
|
|
9.24
|
|
||
Commercial lease financing
|
957
|
|
|
4.08
|
|
|
969
|
|
|
4.06
|
|
||
Non-U.S. commercial
|
1,417
|
|
|
1.60
|
|
|
1,614
|
|
|
2.02
|
|
||
|
14,102
|
|
|
3.63
|
|
|
14,996
|
|
|
3.98
|
|
||
U.S. small business commercial
|
904
|
|
|
7.28
|
|
|
940
|
|
|
7.45
|
|
||
Total commercial utilized reservable criticized exposure
|
$
|
15,006
|
|
|
3.75
|
|
|
$
|
15,936
|
|
|
4.10
|
|
(1)
|
Total commercial utilized reservable criticized exposure at
March 31, 2013
and
December 31, 2012
includes loans and leases of
$13.8 billion
and
$14.6 billion
and commercial letters of credit of
$1.2 billion
and
$1.3 billion
.
|
(2)
|
Percentages are calculated as commercial utilized reservable criticized exposure divided by total commercial utilized reservable exposure for each exposure category.
|
Table 44
|
|||||||
Outstanding Commercial Real Estate Loans
|
|||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
By Geographic Region
|
|
|
|
||||
California
|
$
|
9,111
|
|
|
$
|
8,792
|
|
Northeast
|
7,255
|
|
|
7,315
|
|
||
Southwest
|
4,933
|
|
|
4,612
|
|
||
Southeast
|
4,506
|
|
|
4,440
|
|
||
Midwest
|
3,132
|
|
|
3,421
|
|
||
Florida
|
2,163
|
|
|
2,148
|
|
||
Midsouth
|
2,028
|
|
|
1,980
|
|
||
Northwest
|
1,714
|
|
|
1,553
|
|
||
Illinois
|
1,612
|
|
|
1,700
|
|
||
Non-U.S.
|
1,415
|
|
|
1,483
|
|
||
Other
(1)
|
1,191
|
|
|
1,193
|
|
||
Total outstanding commercial real estate loans
|
$
|
39,060
|
|
|
$
|
38,637
|
|
By Property Type
|
|
|
|
||||
Non-residential
|
|
|
|
||||
Office
|
$
|
9,642
|
|
|
$
|
9,324
|
|
Multi-family rental
|
6,431
|
|
|
5,893
|
|
||
Shopping centers/retail
|
6,088
|
|
|
5,780
|
|
||
Industrial/warehouse
|
3,592
|
|
|
3,839
|
|
||
Hotels/motels
|
3,151
|
|
|
3,095
|
|
||
Multi-use
|
1,959
|
|
|
2,186
|
|
||
Land and land development
|
1,017
|
|
|
1,157
|
|
||
Other
|
5,592
|
|
|
5,722
|
|
||
Total non-residential
|
37,472
|
|
|
36,996
|
|
||
Residential
|
1,588
|
|
|
1,641
|
|
||
Total outstanding commercial real estate loans
|
$
|
39,060
|
|
|
$
|
38,637
|
|
(1)
|
Includes unsecured loans to real estate investment trusts and national home builders whose portfolios of properties span multiple geographic regions and properties in the states of Colorado, Utah, Hawaii, Wyoming and Montana.
|
Table 45
|
|||||||||||||||
Commercial Real Estate Credit Quality Data
|
|||||||||||||||
|
Nonperforming Loans and
Foreclosed Properties
(1)
|
|
Utilized Reservable
Criticized Exposure
(2)
|
||||||||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
||||||||
Non-residential
|
|
|
|
|
|
|
|
||||||||
Office
|
$
|
278
|
|
|
$
|
295
|
|
|
$
|
718
|
|
|
$
|
914
|
|
Multi-family rental
|
51
|
|
|
109
|
|
|
349
|
|
|
375
|
|
||||
Shopping centers/retail
|
148
|
|
|
230
|
|
|
350
|
|
|
464
|
|
||||
Industrial/warehouse
|
103
|
|
|
160
|
|
|
226
|
|
|
324
|
|
||||
Hotels/motels
|
26
|
|
|
45
|
|
|
163
|
|
|
202
|
|
||||
Multi-use
|
95
|
|
|
123
|
|
|
267
|
|
|
309
|
|
||||
Land and land development
|
271
|
|
|
321
|
|
|
298
|
|
|
359
|
|
||||
Other
|
65
|
|
|
87
|
|
|
233
|
|
|
301
|
|
||||
Total non-residential
|
1,037
|
|
|
1,370
|
|
|
2,604
|
|
|
3,248
|
|
||||
Residential
|
308
|
|
|
393
|
|
|
444
|
|
|
534
|
|
||||
Total commercial real estate
|
$
|
1,345
|
|
|
$
|
1,763
|
|
|
$
|
3,048
|
|
|
$
|
3,782
|
|
(1)
|
Includes commercial foreclosed properties of
$206 million
and
$250 million
at
March 31, 2013
and
December 31, 2012
.
|
(2)
|
Includes loans, SBLCs and bankers' acceptances and excludes loans accounted for under the fair value option.
|
Table 46
|
|||||||||||||
Commercial Real Estate Net Charge-offs and Related Ratios
|
|||||||||||||
|
Three Months Ended March 31
|
||||||||||||
|
Net Charge-offs
|
|
Net Charge-off Ratios
(1)
|
||||||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||
Non-residential
|
|
|
|
|
|
|
|
||||||
Office
|
$
|
28
|
|
|
$
|
60
|
|
|
1.18
|
%
|
|
3.23
|
%
|
Multi-family rental
|
1
|
|
|
4
|
|
|
0.09
|
|
|
0.28
|
|
||
Shopping centers/retail
|
10
|
|
|
8
|
|
|
0.69
|
|
|
0.56
|
|
||
Industrial/warehouse
|
10
|
|
|
15
|
|
|
1.09
|
|
|
1.56
|
|
||
Hotels/motels
|
5
|
|
|
1
|
|
|
0.69
|
|
|
0.15
|
|
||
Multi-use
|
3
|
|
|
10
|
|
|
0.64
|
|
|
1.37
|
|
||
Land and land development
|
12
|
|
|
6
|
|
|
4.48
|
|
|
1.47
|
|
||
Other
|
2
|
|
|
8
|
|
|
0.02
|
|
|
0.48
|
|
||
Total non-residential
|
71
|
|
|
112
|
|
|
0.76
|
|
|
1.22
|
|
||
Residential
|
22
|
|
|
20
|
|
|
5.69
|
|
|
3.52
|
|
||
Total commercial real estate
|
$
|
93
|
|
|
$
|
132
|
|
|
0.96
|
|
|
1.36
|
|
(1)
|
Net charge-off ratios are calculated as annualized net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.
|
Table 47
|
|||||||
Nonperforming Commercial Loans, Leases and Foreclosed Properties Activity
(1, 2)
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Nonperforming loans and leases, January 1
|
$
|
3,224
|
|
|
$
|
6,337
|
|
Additions to nonperforming loans and leases:
|
|
|
|
||||
New nonperforming loans and leases
|
350
|
|
|
599
|
|
||
Advances
|
6
|
|
|
24
|
|
||
Reductions to nonperforming loans and leases:
|
|
|
|
||||
Paydowns
|
(328
|
)
|
|
(573
|
)
|
||
Sales
|
(147
|
)
|
|
(137
|
)
|
||
Returns to performing status
(3)
|
(167
|
)
|
|
(145
|
)
|
||
Charge-offs
|
(177
|
)
|
|
(291
|
)
|
||
Transfers to foreclosed properties
(4)
|
(21
|
)
|
|
(63
|
)
|
||
Transfers to loans held-for-sale
|
(6
|
)
|
|
—
|
|
||
Total net reductions to nonperforming loans and leases
|
(490
|
)
|
|
(586
|
)
|
||
Total nonperforming loans and leases, March 31
|
2,734
|
|
|
5,751
|
|
||
Foreclosed properties, January 1
|
250
|
|
|
612
|
|
||
Additions to foreclosed properties:
|
|
|
|
||||
New foreclosed properties
(4)
|
12
|
|
|
44
|
|
||
Reductions in foreclosed properties:
|
|
|
|
||||
Sales
|
(44
|
)
|
|
(123
|
)
|
||
Write-downs
|
(12
|
)
|
|
(23
|
)
|
||
Total net reductions to foreclosed properties
|
(44
|
)
|
|
(102
|
)
|
||
Total foreclosed properties, March 31
|
206
|
|
|
510
|
|
||
Nonperforming commercial loans, leases and foreclosed properties, March 31
|
$
|
2,940
|
|
|
$
|
6,261
|
|
Nonperforming commercial loans and leases as a percentage of outstanding commercial loans and leases
(5)
|
0.76
|
%
|
|
1.88
|
%
|
||
Nonperforming commercial loans, leases and foreclosed properties as a percentage of outstanding commercial loans, leases and foreclosed properties
(5)
|
0.82
|
|
|
2.04
|
|
(1)
|
Balances do not include nonperforming LHFS of $379 million and $847 million at
March 31, 2013
and
2012
.
|
(2)
|
Includes U.S. small business commercial activity. Small business card loans are excluded as they are not classified as nonperforming.
|
(3)
|
Commercial loans and leases may be returned to performing status when all principal and interest is current and full repayment of the remaining contractual principal and interest is expected or when the loan otherwise becomes well-secured and is in the process of collection. TDRs are generally classified as performing after a sustained period of demonstrated payment performance.
|
(4)
|
New foreclosed properties represents transfers of nonperforming loans to foreclosed properties net of charge-offs recorded during the first 90 days after transfer of a loan to foreclosed properties.
|
(5)
|
Outstanding commercial loans exclude loans accounted for under the fair value option.
|
Table 48
|
|||||||||||||||||||||||
Commercial Troubled Debt Restructurings
|
|||||||||||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
(Dollars in millions)
|
Total
|
|
Non-performing
|
|
Performing
|
|
Total
|
|
Non-performing
|
|
Performing
|
||||||||||||
U.S. commercial
|
$
|
1,319
|
|
|
$
|
562
|
|
|
$
|
757
|
|
|
$
|
1,328
|
|
|
$
|
565
|
|
|
$
|
763
|
|
Commercial real estate
|
1,294
|
|
|
656
|
|
|
638
|
|
|
1,391
|
|
|
740
|
|
|
651
|
|
||||||
Non-U.S. commercial
|
97
|
|
|
15
|
|
|
82
|
|
|
100
|
|
|
15
|
|
|
85
|
|
||||||
U.S. small business commercial
|
167
|
|
|
—
|
|
|
167
|
|
|
202
|
|
|
—
|
|
|
202
|
|
||||||
Total commercial troubled debt restructurings
|
$
|
2,877
|
|
|
$
|
1,233
|
|
|
$
|
1,644
|
|
|
$
|
3,021
|
|
|
$
|
1,320
|
|
|
$
|
1,701
|
|
Industry Concentrations
|
Table 49
|
|||||||||||||||
Commercial Credit Exposure by Industry
(1)
|
|||||||||||||||
|
Commercial
Utilized
|
|
Total Commercial
Committed
|
||||||||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
||||||||
Diversified financials
|
$
|
70,405
|
|
|
$
|
66,201
|
|
|
$
|
105,591
|
|
|
$
|
99,673
|
|
Real estate
(2)
|
47,513
|
|
|
47,479
|
|
|
65,855
|
|
|
65,639
|
|
||||
Retailing
|
29,337
|
|
|
28,065
|
|
|
49,757
|
|
|
47,719
|
|
||||
Capital goods
|
24,995
|
|
|
25,071
|
|
|
48,444
|
|
|
49,196
|
|
||||
Government and public education
|
39,671
|
|
|
41,449
|
|
|
48,022
|
|
|
50,285
|
|
||||
Healthcare equipment and services
|
29,107
|
|
|
29,396
|
|
|
45,556
|
|
|
45,488
|
|
||||
Banking
|
37,895
|
|
|
40,245
|
|
|
43,383
|
|
|
45,238
|
|
||||
Materials
|
22,243
|
|
|
21,809
|
|
|
42,264
|
|
|
40,493
|
|
||||
Energy
|
21,167
|
|
|
17,684
|
|
|
40,853
|
|
|
38,464
|
|
||||
Consumer services
|
22,193
|
|
|
23,093
|
|
|
35,195
|
|
|
36,367
|
|
||||
Food, beverage and tobacco
|
14,909
|
|
|
14,738
|
|
|
32,936
|
|
|
37,344
|
|
||||
Commercial services and supplies
|
18,345
|
|
|
19,020
|
|
|
29,861
|
|
|
30,257
|
|
||||
Utilities
|
8,900
|
|
|
8,410
|
|
|
23,104
|
|
|
23,432
|
|
||||
Transportation
|
15,606
|
|
|
13,791
|
|
|
21,968
|
|
|
20,255
|
|
||||
Media
|
12,907
|
|
|
13,091
|
|
|
21,835
|
|
|
21,705
|
|
||||
Individuals and trusts
|
14,107
|
|
|
13,916
|
|
|
18,166
|
|
|
17,801
|
|
||||
Insurance, including monolines
|
6,800
|
|
|
8,519
|
|
|
12,503
|
|
|
14,145
|
|
||||
Software and services
|
5,571
|
|
|
5,549
|
|
|
11,740
|
|
|
12,125
|
|
||||
Pharmaceuticals and biotechnology
|
4,439
|
|
|
3,854
|
|
|
11,191
|
|
|
11,409
|
|
||||
Technology hardware and equipment
|
4,735
|
|
|
5,118
|
|
|
10,761
|
|
|
11,108
|
|
||||
Telecommunication services
|
3,689
|
|
|
4,029
|
|
|
10,191
|
|
|
10,297
|
|
||||
Consumer durables and apparel
|
5,198
|
|
|
4,246
|
|
|
9,362
|
|
|
8,438
|
|
||||
Religious and social organizations
|
6,235
|
|
|
6,850
|
|
|
8,435
|
|
|
9,107
|
|
||||
Automobiles and components
|
3,349
|
|
|
3,312
|
|
|
7,702
|
|
|
7,675
|
|
||||
Food and staples retailing
|
4,004
|
|
|
3,528
|
|
|
7,334
|
|
|
6,838
|
|
||||
Other
|
6,961
|
|
|
3,264
|
|
|
9,946
|
|
|
6,507
|
|
||||
Total commercial credit exposure by industry
|
$
|
480,281
|
|
|
$
|
471,727
|
|
|
$
|
771,955
|
|
|
$
|
767,005
|
|
Net credit default protection purchased on total commitments
(3)
|
|
|
|
|
$
|
(12,444
|
)
|
|
$
|
(14,657
|
)
|
(1)
|
Includes U.S. small business commercial exposure.
|
(2)
|
Industries are viewed from a variety of perspectives to best isolate the perceived risks. For purposes of this table, the real estate industry is defined based on the borrowers' or counterparties' primary business activity using operating cash flows and primary source of repayment as key factors.
|
(3)
|
Represents net notional credit protection purchased. See
Commercial Portfolio Credit Risk Management – Risk Mitigation
on page
101
for additional information.
|
Table 50
|
|
|
|
||||
Derivative Credit Exposures
|
|
|
|
||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
Notional amount of monoline exposure
|
$
|
12,923
|
|
|
$
|
13,547
|
|
|
|
|
|
||||
Mark-to-market
|
$
|
536
|
|
|
$
|
898
|
|
Counterparty credit valuation adjustment
|
(64
|
)
|
|
(118
|
)
|
||
Net mark-to-market
|
$
|
472
|
|
|
$
|
780
|
|
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
|
2013
|
|
2012
|
||||
Gains from credit valuation changes
|
$
|
26
|
|
|
$
|
104
|
|
Risk Mitigation
|
Table 51
|
|||||||
Credit Derivative Value-at-Risk
|
|||||||
|
Three Months Ended
March 31 |
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Average
|
$
|
25
|
|
|
$
|
67
|
|
Credit exposure average
|
51
|
|
|
92
|
|
||
Combined average
(1)
|
31
|
|
|
26
|
|
(1)
|
Reflects the diversification effect between net credit default protection hedging our credit exposure and the related credit exposure.
|
Table 52
|
|||||
Net Credit Default Protection by Maturity
|
|||||
|
March 31
2013 |
|
December 31
2012 |
||
Less than or equal to one year
|
26
|
%
|
|
21
|
%
|
Greater than one year and less than or equal to five years
|
71
|
|
|
75
|
|
Greater than five years
|
3
|
|
|
4
|
|
Total net credit default protection
|
100
|
%
|
|
100
|
%
|
Table 53
|
|||||||||||||
Net Credit Default Protection by Credit Exposure Debt Rating
|
|||||||||||||
(Dollars in millions)
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||
Ratings
(1, 2)
|
Net
Notional
(3)
|
|
Percent of
Total
|
|
Net
Notional
(3)
|
|
Percent of
Total
|
||||||
AAA
|
$
|
(120
|
)
|
|
1.0
|
%
|
|
$
|
(120
|
)
|
|
0.8
|
%
|
AA
|
(412
|
)
|
|
3.3
|
|
|
(474
|
)
|
|
3.2
|
|
||
A
|
(4,951
|
)
|
|
39.8
|
|
|
(5,861
|
)
|
|
40.0
|
|
||
BBB
|
(5,133
|
)
|
|
41.2
|
|
|
(6,067
|
)
|
|
41.4
|
|
||
BB
|
(1,075
|
)
|
|
8.6
|
|
|
(1,101
|
)
|
|
7.5
|
|
||
B
|
(699
|
)
|
|
5.6
|
|
|
(937
|
)
|
|
6.4
|
|
||
CCC and below
|
(216
|
)
|
|
1.7
|
|
|
(247
|
)
|
|
1.7
|
|
||
NR
(4)
|
162
|
|
|
(1.2
|
)
|
|
150
|
|
|
(1.0
|
)
|
||
Total net credit default protection
|
$
|
(12,444
|
)
|
|
100.0
|
%
|
|
$
|
(14,657
|
)
|
|
100.0
|
%
|
(1)
|
Ratings are refreshed on a quarterly basis.
|
(2)
|
Ratings of BBB- or higher are considered to meet the definition of investment grade.
|
(3)
|
Represents net credit default protection (purchased) sold.
|
(4)
|
"NR" is comprised of names that have not been rated.
|
Table 54
|
|||||||||||||||
Credit Derivatives
|
|||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||
(Dollars in millions)
|
Contract/
Notional
|
|
Credit Risk
|
|
Contract/
Notional
|
|
Credit Risk
|
||||||||
Purchased credit derivatives:
|
|
|
|
|
|
|
|
||||||||
Credit default swaps
|
$
|
1,610,724
|
|
|
$
|
8,204
|
|
|
$
|
1,559,472
|
|
|
$
|
8,987
|
|
Total return swaps/other
|
44,441
|
|
|
466
|
|
|
43,489
|
|
|
402
|
|
||||
Total purchased credit derivatives
|
$
|
1,655,165
|
|
|
$
|
8,670
|
|
|
$
|
1,602,961
|
|
|
$
|
9,389
|
|
Written credit derivatives:
|
|
|
|
|
|
|
|
|
|||||||
Credit default swaps
|
$
|
1,581,333
|
|
|
n/a
|
|
|
$
|
1,531,504
|
|
|
n/a
|
|
||
Total return swaps/other
|
73,902
|
|
|
n/a
|
|
|
68,811
|
|
|
n/a
|
|
||||
Total written credit derivatives
|
$
|
1,655,235
|
|
|
n/a
|
|
|
$
|
1,600,315
|
|
|
n/a
|
|
Counterparty Credit Risk Valuation Adjustments
|
Table 55
|
|||||||||||||||||||||||
Credit Valuation Gains and Losses
|
|||||||||||||||||||||||
|
Three Months Ended March 31
|
||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||
(Dollars in millions)
|
Gross
|
|
Hedge
|
|
Net
|
|
Gross
|
|
|
Hedge
|
|
|
Net
|
||||||||||
Credit valuation gains (losses)
|
$
|
(131
|
)
|
|
$
|
(164
|
)
|
|
$
|
(295
|
)
|
|
$
|
512
|
|
|
$
|
(362
|
)
|
|
$
|
150
|
|
Non-U.S. Portfolio
|
Table 56
|
|||||||||||||||||||||||||||||||
Top 20 Non-U.S. Countries Exposure
|
|||||||||||||||||||||||||||||||
(Dollars in millions)
|
Funded Loans and Loan Equivalents
|
|
Unfunded Loan Commitments
|
|
Net Counterparty Exposure
|
|
Securities/
Other
Investments
|
|
Country Exposure at March 31
2013 |
|
Hedges and Credit Default Protection
|
|
Net Country Exposure at March 31
2013 |
|
Increase (Decrease) from December 31
2012 |
||||||||||||||||
United Kingdom
|
$
|
26,266
|
|
|
$
|
10,666
|
|
|
$
|
5,173
|
|
|
$
|
7,539
|
|
|
$
|
49,644
|
|
|
$
|
(3,129
|
)
|
|
$
|
46,515
|
|
|
$
|
(677
|
)
|
Canada
|
6,132
|
|
|
6,538
|
|
|
2,652
|
|
|
5,340
|
|
|
20,662
|
|
|
(1,411
|
)
|
|
19,251
|
|
|
275
|
|
||||||||
France
|
3,233
|
|
|
6,101
|
|
|
1,358
|
|
|
5,898
|
|
|
16,590
|
|
|
(2,650
|
)
|
|
13,940
|
|
|
(2,351
|
)
|
||||||||
Brazil
|
8,739
|
|
|
460
|
|
|
248
|
|
|
4,135
|
|
|
13,582
|
|
|
(187
|
)
|
|
13,395
|
|
|
892
|
|
||||||||
India
|
8,235
|
|
|
636
|
|
|
267
|
|
|
3,685
|
|
|
12,823
|
|
|
(223
|
)
|
|
12,600
|
|
|
(1,118
|
)
|
||||||||
Germany
|
6,919
|
|
|
5,377
|
|
|
2,860
|
|
|
1,750
|
|
|
16,906
|
|
|
(5,220
|
)
|
|
11,686
|
|
|
666
|
|
||||||||
China
|
8,069
|
|
|
282
|
|
|
662
|
|
|
2,529
|
|
|
11,542
|
|
|
(1,003
|
)
|
|
10,539
|
|
|
1,352
|
|
||||||||
Australia
|
4,781
|
|
|
3,310
|
|
|
665
|
|
|
2,172
|
|
|
10,928
|
|
|
(839
|
)
|
|
10,089
|
|
|
360
|
|
||||||||
Netherlands
|
4,067
|
|
|
2,277
|
|
|
572
|
|
|
2,330
|
|
|
9,246
|
|
|
(1,173
|
)
|
|
8,073
|
|
|
(2,609
|
)
|
||||||||
South Korea
|
4,983
|
|
|
577
|
|
|
486
|
|
|
2,503
|
|
|
8,549
|
|
|
(1,090
|
)
|
|
7,459
|
|
|
310
|
|
||||||||
Japan
|
4,396
|
|
|
466
|
|
|
820
|
|
|
2,944
|
|
|
8,626
|
|
|
(1,818
|
)
|
|
6,808
|
|
|
(17,031
|
)
|
||||||||
Russian Federation
|
5,861
|
|
|
288
|
|
|
58
|
|
|
771
|
|
|
6,978
|
|
|
(614
|
)
|
|
6,364
|
|
|
1,452
|
|
||||||||
Hong Kong
|
4,636
|
|
|
612
|
|
|
150
|
|
|
1,026
|
|
|
6,424
|
|
|
(112
|
)
|
|
6,312
|
|
|
869
|
|
||||||||
Switzerland
|
2,330
|
|
|
3,336
|
|
|
352
|
|
|
638
|
|
|
6,656
|
|
|
(747
|
)
|
|
5,909
|
|
|
89
|
|
||||||||
Singapore
|
2,823
|
|
|
253
|
|
|
280
|
|
|
2,435
|
|
|
5,791
|
|
|
(154
|
)
|
|
5,637
|
|
|
(4,537
|
)
|
||||||||
Italy
|
3,386
|
|
|
2,640
|
|
|
1,944
|
|
|
321
|
|
|
8,291
|
|
|
(4,332
|
)
|
|
3,959
|
|
|
(879
|
)
|
||||||||
Mexico
|
2,392
|
|
|
711
|
|
|
208
|
|
|
930
|
|
|
4,241
|
|
|
(418
|
)
|
|
3,823
|
|
|
164
|
|
||||||||
Taiwan
|
2,128
|
|
|
43
|
|
|
146
|
|
|
1,355
|
|
|
3,672
|
|
|
(15
|
)
|
|
3,657
|
|
|
435
|
|
||||||||
Turkey
|
1,900
|
|
|
107
|
|
|
149
|
|
|
531
|
|
|
2,687
|
|
|
(16
|
)
|
|
2,671
|
|
|
531
|
|
||||||||
Spain
|
2,534
|
|
|
956
|
|
|
177
|
|
|
299
|
|
|
3,966
|
|
|
(1,311
|
)
|
|
2,655
|
|
|
1
|
|
||||||||
Total top 20 non-U.S. countries exposure
|
$
|
113,810
|
|
|
$
|
45,636
|
|
|
$
|
19,227
|
|
|
$
|
49,131
|
|
|
$
|
227,804
|
|
|
$
|
(26,462
|
)
|
|
$
|
201,342
|
|
|
$
|
(21,806
|
)
|
Table 57
|
|||||||||||||||||||||||||||||||
Select European Countries
|
|||||||||||||||||||||||||||||||
(Dollars in millions)
|
Funded Loans and Loan Equivalents
|
|
Unfunded Loan Commitments
|
|
Net Counterparty Exposure
(1)
|
|
Securities/ Other Investments
(2)
|
|
Country Exposure at March 31
2013 |
|
Hedges and Credit Default Protection
(3)
|
|
Net Country Exposure at March 31
2013 |
|
Increase (Decrease) from
December 31, 2012
|
||||||||||||||||
Greece
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sovereign
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
5
|
|
Financial institutions
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
7
|
|
|
(9
|
)
|
|
(2
|
)
|
|
3
|
|
||||||||
Corporates
|
64
|
|
|
117
|
|
|
13
|
|
|
6
|
|
|
200
|
|
|
(5
|
)
|
|
195
|
|
|
(114
|
)
|
||||||||
Total Greece
|
$
|
64
|
|
|
$
|
117
|
|
|
$
|
13
|
|
|
$
|
20
|
|
|
$
|
214
|
|
|
$
|
(14
|
)
|
|
$
|
200
|
|
|
$
|
(106
|
)
|
Ireland
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sovereign
|
$
|
17
|
|
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
62
|
|
|
$
|
105
|
|
|
$
|
(10
|
)
|
|
$
|
95
|
|
|
$
|
37
|
|
Financial institutions
|
357
|
|
|
30
|
|
|
255
|
|
|
38
|
|
|
680
|
|
|
(34
|
)
|
|
646
|
|
|
54
|
|
||||||||
Corporates
|
597
|
|
|
257
|
|
|
28
|
|
|
50
|
|
|
932
|
|
|
(2
|
)
|
|
930
|
|
|
1
|
|
||||||||
Total Ireland
|
$
|
971
|
|
|
$
|
287
|
|
|
$
|
309
|
|
|
$
|
150
|
|
|
$
|
1,717
|
|
|
$
|
(46
|
)
|
|
$
|
1,671
|
|
|
$
|
92
|
|
Italy
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sovereign
|
$
|
21
|
|
|
$
|
—
|
|
|
$
|
1,638
|
|
|
$
|
10
|
|
|
$
|
1,669
|
|
|
$
|
(2,265
|
)
|
|
$
|
(596
|
)
|
|
$
|
(626
|
)
|
Financial institutions
|
1,861
|
|
|
89
|
|
|
198
|
|
|
28
|
|
|
2,176
|
|
|
(778
|
)
|
|
1,398
|
|
|
321
|
|
||||||||
Corporates
|
1,504
|
|
|
2,551
|
|
|
108
|
|
|
283
|
|
|
4,446
|
|
|
(1,289
|
)
|
|
3,157
|
|
|
(574
|
)
|
||||||||
Total Italy
|
$
|
3,386
|
|
|
$
|
2,640
|
|
|
$
|
1,944
|
|
|
$
|
321
|
|
|
$
|
8,291
|
|
|
$
|
(4,332
|
)
|
|
$
|
3,959
|
|
|
$
|
(879
|
)
|
Portugal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sovereign
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
26
|
|
|
$
|
35
|
|
|
$
|
61
|
|
|
$
|
(44
|
)
|
|
$
|
17
|
|
|
$
|
54
|
|
Financial institutions
|
6
|
|
|
—
|
|
|
5
|
|
|
32
|
|
|
43
|
|
|
(18
|
)
|
|
25
|
|
|
(13
|
)
|
||||||||
Corporates
|
142
|
|
|
89
|
|
|
6
|
|
|
13
|
|
|
250
|
|
|
(149
|
)
|
|
101
|
|
|
16
|
|
||||||||
Total Portugal
|
$
|
148
|
|
|
$
|
89
|
|
|
$
|
37
|
|
|
$
|
80
|
|
|
$
|
354
|
|
|
$
|
(211
|
)
|
|
$
|
143
|
|
|
$
|
57
|
|
Spain
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sovereign
|
$
|
34
|
|
|
$
|
—
|
|
|
$
|
54
|
|
|
$
|
1
|
|
|
$
|
89
|
|
|
$
|
(277
|
)
|
|
$
|
(188
|
)
|
|
$
|
(415
|
)
|
Financial institutions
|
808
|
|
|
6
|
|
|
68
|
|
|
110
|
|
|
992
|
|
|
(148
|
)
|
|
844
|
|
|
686
|
|
||||||||
Corporates
|
1,692
|
|
|
950
|
|
|
55
|
|
|
188
|
|
|
2,885
|
|
|
(886
|
)
|
|
1,999
|
|
|
(270
|
)
|
||||||||
Total Spain
|
$
|
2,534
|
|
|
$
|
956
|
|
|
$
|
177
|
|
|
$
|
299
|
|
|
$
|
3,966
|
|
|
$
|
(1,311
|
)
|
|
$
|
2,655
|
|
|
$
|
1
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Sovereign
|
$
|
72
|
|
|
$
|
—
|
|
|
$
|
1,744
|
|
|
$
|
115
|
|
|
$
|
1,931
|
|
|
$
|
(2,596
|
)
|
|
$
|
(665
|
)
|
|
$
|
(945
|
)
|
Financial institutions
|
3,032
|
|
|
125
|
|
|
526
|
|
|
215
|
|
|
3,898
|
|
|
(987
|
)
|
|
2,911
|
|
|
1,051
|
|
||||||||
Corporates
|
3,999
|
|
|
3,964
|
|
|
210
|
|
|
540
|
|
|
8,713
|
|
|
(2,331
|
)
|
|
6,382
|
|
|
(941
|
)
|
||||||||
Total select European exposure
|
$
|
7,103
|
|
|
$
|
4,089
|
|
|
$
|
2,480
|
|
|
$
|
870
|
|
|
$
|
14,542
|
|
|
$
|
(5,914
|
)
|
|
$
|
8,628
|
|
|
$
|
(835
|
)
|
(1)
|
Net counterparty exposure includes the fair value of derivatives, including the counterparty risk associated with CDS, and secured financing transactions. Derivative exposures are presented net of
$2.9 billion
in collateral, predominantly in cash, pledged under legally enforceable netting agreements. Secured financing transaction exposures are presented net of eligible cash or securities pledged as collateral. The notional amount of reverse repurchase transactions was
$3.1 billion
.
|
(2)
|
Long securities exposures are netted on a single-name basis to, but not below, zero by short exposures of
$7.7 billion
and net CDS purchased of
$1.5 billion
, consisting of
$1.5 billion
of net single-name CDS purchased and
$13 million
of net indexed and tranched CDS sold.
|
(3)
|
Represents credit default protection purchased, net of credit default protection sold, which is used to mitigate the Corporation's risk to country exposures as listed, including
$3.6 billion
, consisting of
$3.2 billion
in net single-name CDS purchased and
$397 million
in net indexed and tranched CDS purchased, to hedge loans and securities,
$2.2 billion
in additional credit default protection purchased to hedge derivative assets and
$148 million
in other short exposures.
|
Table 58
|
|||||||||||||||
Single-Name CDS with Reference Assets in Greece, Ireland, Italy, Portugal and Spain
(1)
|
|||||||||||||||
|
March 31, 2013
|
||||||||||||||
|
Notional
|
|
Fair Value
|
||||||||||||
(Dollars in billions)
|
Purchased
|
|
Sold
|
|
Purchased
|
|
Sold
|
||||||||
Greece
|
|
|
|
|
|
|
|
||||||||
Aggregate
|
$
|
1.7
|
|
|
$
|
1.7
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
After netting
(2)
|
0.4
|
|
|
0.4
|
|
|
0.1
|
|
|
0.1
|
|
||||
Ireland
|
|
|
|
|
|
|
|
||||||||
Aggregate
|
2.9
|
|
|
2.7
|
|
|
0.1
|
|
|
0.1
|
|
||||
After netting
(2)
|
1.4
|
|
|
1.1
|
|
|
0.1
|
|
|
0.1
|
|
||||
Italy
|
|
|
|
|
|
|
|
||||||||
Aggregate
|
49.8
|
|
|
44.5
|
|
|
3.9
|
|
|
3.1
|
|
||||
After netting
(2)
|
11.2
|
|
|
5.9
|
|
|
1.4
|
|
|
0.6
|
|
||||
Portugal
|
|
|
|
|
|
|
|
||||||||
Aggregate
|
8.0
|
|
|
8.1
|
|
|
0.3
|
|
|
0.3
|
|
||||
After netting
(2)
|
1.2
|
|
|
1.3
|
|
|
0.1
|
|
|
0.1
|
|
||||
Spain
|
|
|
|
|
|
|
|
||||||||
Aggregate
|
22.5
|
|
|
22.2
|
|
|
0.9
|
|
|
0.9
|
|
||||
After netting
(2)
|
3.7
|
|
|
3.4
|
|
|
0.2
|
|
|
0.2
|
|
(1)
|
The majority of our CDS contracts on reference assets in Greece, Ireland, Italy, Portugal and Spain are primarily with non-Eurozone counterparties.
|
(2)
|
Amounts listed are after consideration of legally enforceable counterparty master netting agreements.
|
Provision for Credit Losses
|
Allowance for Credit Losses
|
|
Allowance for Loan and Lease Losses
|
Table 59
|
|
|
|
||||
Allowance for Credit Losses
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Allowance for loan and lease losses, January 1
|
$
|
24,179
|
|
|
$
|
33,783
|
|
Loans and leases charged off
|
|
|
|
||||
Residential mortgage
|
(425
|
)
|
|
(976
|
)
|
||
Home equity
|
(768
|
)
|
|
(1,031
|
)
|
||
U.S. credit card
|
(1,120
|
)
|
|
(1,535
|
)
|
||
Non-U.S. credit card
|
(145
|
)
|
|
(261
|
)
|
||
Direct/Indirect consumer
|
(225
|
)
|
|
(378
|
)
|
||
Other consumer
|
(63
|
)
|
|
(68
|
)
|
||
Total consumer charge-offs
|
(2,746
|
)
|
|
(4,249
|
)
|
||
U.S. commercial
(1)
|
(207
|
)
|
|
(325
|
)
|
||
Commercial real estate
|
(106
|
)
|
|
(204
|
)
|
||
Commercial lease financing
|
(1
|
)
|
|
(1
|
)
|
||
Non-U.S. commercial
|
(2
|
)
|
|
(1
|
)
|
||
Total commercial charge-offs
|
(316
|
)
|
|
(531
|
)
|
||
Total loans and leases charged off
|
(3,062
|
)
|
|
(4,780
|
)
|
||
Recoveries of loans and leases previously charged off
|
|
|
|
||||
Residential mortgage
|
42
|
|
|
62
|
|
||
Home equity
|
84
|
|
|
74
|
|
||
U.S. credit card
|
173
|
|
|
204
|
|
||
Non-U.S. credit card
|
33
|
|
|
58
|
|
||
Direct/Indirect consumer
|
101
|
|
|
152
|
|
||
Other consumer
|
11
|
|
|
12
|
|
||
Total consumer recoveries
|
444
|
|
|
562
|
|
||
U.S. commercial
(2)
|
60
|
|
|
74
|
|
||
Commercial real estate
|
13
|
|
|
72
|
|
||
Commercial lease financing
|
11
|
|
|
10
|
|
||
Non-U.S. commercial
|
17
|
|
|
6
|
|
||
Total commercial recoveries
|
101
|
|
|
162
|
|
||
Total recoveries of loans and leases previously charged off
|
545
|
|
|
724
|
|
||
Net charge-offs
|
(2,517
|
)
|
|
(4,056
|
)
|
||
Provision for loan and lease losses
|
1,731
|
|
|
2,457
|
|
||
Write-offs of PCI loans
|
(839
|
)
|
|
—
|
|
||
Other
(3)
|
(113
|
)
|
|
27
|
|
||
Allowance for loan and lease losses, March 31
|
22,441
|
|
|
32,211
|
|
||
Reserve for unfunded lending commitments, January 1
|
513
|
|
|
714
|
|
||
Provision for unfunded lending commitments
|
(18
|
)
|
|
(39
|
)
|
||
Other
(4)
|
(9
|
)
|
|
(24
|
)
|
||
Reserve for unfunded lending commitments, March 31
|
486
|
|
|
651
|
|
||
Allowance for credit losses, March 31
|
$
|
22,927
|
|
|
$
|
32,862
|
|
(1)
|
Includes U.S. small business commercial charge-offs of
$128 million
and
$208 million
for the
three months ended March 31, 2013
and
2012
.
|
(2)
|
Includes U.S. small business commercial recoveries of
$26 million
and
$23 million
for the
three months ended March 31, 2013
and
2012
.
|
(3)
|
Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments.
|
(4)
|
Primarily represents accretion of the Merrill Lynch purchase accounting adjustment.
|
Table 59
|
|
|
|
||||
Allowance for Credit Losses (continued)
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Loan and allowance ratios:
|
|
|
|
||||
Loans and leases outstanding at March 31
(5)
|
$
|
902,772
|
|
|
$
|
893,102
|
|
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at March 31
(5)
|
2.49
|
%
|
|
3.61
|
%
|
||
Consumer allowance for loan and lease losses as a percentage of total consumer loans outstanding
at March 31
(6)
|
3.55
|
|
|
4.88
|
|
||
Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at March 31
(7)
|
0.87
|
|
|
1.17
|
|
||
Average loans and leases outstanding
(5)
|
$
|
897,116
|
|
|
$
|
904,613
|
|
Annualized net charge-offs as a percentage of average loans and leases outstanding
(5, 8)
|
1.14
|
%
|
|
1.80
|
%
|
||
Annualized net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding
(5, 9)
|
1.52
|
|
|
1.80
|
|
||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at March 31
(5, 10)
|
102
|
|
|
126
|
|
||
Ratio of the allowance for loan and lease losses at March 31 to annualized net charge-offs
(8)
|
2.20
|
|
|
1.97
|
|
||
Ratio of the allowance for loan and lease losses at March 31 to annualized net charge-offs and PCI write-offs
(9)
|
1.65
|
|
|
1.97
|
|
||
Amounts included in allowance for loan and lease losses that are excluded from nonperforming loans and leases at March 31
(11)
|
$
|
10,690
|
|
|
$
|
17,006
|
|
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding amounts included in the allowance for loan and lease losses that are excluded from nonperforming loans and leases at March 31
(11)
|
53
|
%
|
|
60
|
%
|
||
Loan and allowance ratios excluding PCI loans and the related valuation allowance:
(12)
|
|
|
|
||||
Allowance for loan and lease losses as a percentage of total loans and leases outstanding at March 31
(5)
|
2.06
|
%
|
|
2.70
|
%
|
||
Consumer allowance for loan and lease losses as a percentage of total consumer loans outstanding
at March 31
(6)
|
2.88
|
|
|
3.54
|
|
||
Annualized net charge-offs as a percentage of average loans and leases outstanding
(5)
|
1.18
|
|
|
1.87
|
|
||
Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at March 31
(5, 10)
|
82
|
|
|
91
|
|
||
Ratio of the allowance for loan and lease losses at March 31 to annualized net charge-offs
|
1.76
|
|
|
1.43
|
|
(5)
|
Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option. Loans accounted for under the fair value option were
$8.8 billion
and
$9.2 billion
at
March 31, 2013
and
2012
. Average loans accounted for under the fair value option were
$9.1 billion
for both the
three months ended March 31, 2013
and
2012
.
|
(6)
|
Excludes consumer loans accounted for under the fair value option of
$1.0 billion
and $2.2 billion at
March 31, 2013 and 2012
.
|
(7)
|
Excludes commercial loans accounted for under the fair value option of
$7.8 billion
and $7.0 billion at
March 31, 2013 and 2012
.
|
(8)
|
Net charge-offs exclude
$839 million
of write-offs in the PCI loan portfolio for the
three months ended March 31, 2013
. These write-offs decreased the PCI valuation allowance included as part of the allowance for loan and lease losses. For information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio
on page
83
.
|
(9)
|
There were no write-offs of PCI loans in the
three months ended March 31, 2012
.
|
(10)
|
For more information on our definition of nonperforming loans, see pages
89
and
98
.
|
(11)
|
Primarily includes amounts allocated to U.S. credit card and unsecured consumer lending portfolios in
CBB
, PCI loans and the non-U.S. credit card portfolio in
All Other
.
|
(12)
|
For more information on the PCI loan portfolio and the valuation allowance for PCI loans, see
Note 5 – Outstanding Loans and Leases
and
Note 6 – Allowance for Credit Losses
to the Consolidated Financial Statements
.
|
Table 60
|
|||||||||||||||||||
Allocation of the Allowance for Credit Losses by Product Type
|
|||||||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||
(Dollars in millions)
|
Amount
|
|
Percent of
Total |
|
Percent of
Loans and Leases Outstanding (1) |
|
Amount
|
|
Percent of
Total |
|
Percent of
Loans and Leases Outstanding (1) |
||||||||
Allowance for loan and lease losses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Residential mortgage
|
$
|
6,731
|
|
|
29.99
|
%
|
|
2.62
|
%
|
|
$
|
7,088
|
|
|
29.31
|
%
|
|
2.80
|
%
|
Home equity
|
6,707
|
|
|
29.89
|
|
|
6.50
|
|
|
7,845
|
|
|
32.45
|
|
|
7.26
|
|
||
U.S. credit card
|
4,506
|
|
|
20.08
|
|
|
5.00
|
|
|
4,718
|
|
|
19.51
|
|
|
4.97
|
|
||
Non-U.S. credit card
|
572
|
|
|
2.55
|
|
|
5.38
|
|
|
600
|
|
|
2.48
|
|
|
5.13
|
|
||
Direct/Indirect consumer
|
690
|
|
|
3.08
|
|
|
0.85
|
|
|
718
|
|
|
2.97
|
|
|
0.86
|
|
||
Other consumer
|
106
|
|
|
0.47
|
|
|
6.24
|
|
|
104
|
|
|
0.43
|
|
|
6.40
|
|
||
Total consumer
|
19,312
|
|
|
86.06
|
|
|
3.55
|
|
|
21,073
|
|
|
87.15
|
|
|
3.81
|
|
||
U.S. commercial
(2)
|
1,866
|
|
|
8.31
|
|
|
0.87
|
|
|
1,885
|
|
|
7.80
|
|
|
0.90
|
|
||
Commercial real estate
|
815
|
|
|
3.63
|
|
|
2.09
|
|
|
846
|
|
|
3.50
|
|
|
2.19
|
|
||
Commercial lease financing
|
85
|
|
|
0.38
|
|
|
0.36
|
|
|
78
|
|
|
0.32
|
|
|
0.33
|
|
||
Non-U.S. commercial
|
363
|
|
|
1.62
|
|
|
0.44
|
|
|
297
|
|
|
1.23
|
|
|
0.40
|
|
||
Total commercial
(3)
|
3,129
|
|
|
13.94
|
|
|
0.87
|
|
|
3,106
|
|
|
12.85
|
|
|
0.90
|
|
||
Allowance for loan and lease losses
|
22,441
|
|
|
100.00
|
%
|
|
2.49
|
|
|
24,179
|
|
|
100.00
|
%
|
|
2.69
|
|
||
Reserve for unfunded lending commitments
|
486
|
|
|
|
|
|
|
513
|
|
|
|
|
|
||||||
Allowance for credit losses
(4)
|
$
|
22,927
|
|
|
|
|
|
|
$
|
24,692
|
|
|
|
|
|
(1)
|
Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans accounted for under the fair value option. Consumer loans accounted for under the fair value option included residential mortgage loans of
$1.0 billion
at both
March 31, 2013
and
December 31, 2012
. Commercial loans accounted for under the fair value option included U.S. commercial loans of
$2.1 billion
and
$2.3 billion
and non-U.S. commercial loans of
$5.7 billion
and
$5.7 billion
at
March 31, 2013
and
December 31, 2012
.
|
Reserve for Unfunded Lending Commitments
|
Market Risk Management
|
Trading Risk Management
|
Table 61
|
||||||||||||||||||||||||||||||||||||||
Market Risk VaR for Trading Activities
|
||||||||||||||||||||||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
|
|
Three Months Ended
|
|||||||||||||||||||||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
|
March 31, 2012
|
|||||||||||||||||||||||||||||||||
(Dollars in millions)
|
Period End
|
Average
|
High
(1)
|
Low
(1)
|
|
Period End
|
Average
|
High
(1)
|
Low
(1)
|
|
Period End
|
Average
|
High
(1)
|
Low
(1)
|
||||||||||||||||||||||||
Foreign exchange
|
$
|
22
|
|
$
|
24
|
|
$
|
38
|
|
$
|
15
|
|
|
$
|
26
|
|
$
|
22
|
|
$
|
29
|
|
$
|
17
|
|
|
$
|
20
|
|
$
|
19
|
|
$
|
24
|
|
$
|
12
|
|
Interest rate
|
44
|
|
45
|
|
66
|
|
32
|
|
|
49
|
|
50
|
|
66
|
|
38
|
|
|
42
|
|
50
|
|
75
|
|
33
|
|
||||||||||||
Credit
|
61
|
|
59
|
|
72
|
|
48
|
|
|
73
|
|
68
|
|
81
|
|
54
|
|
|
40
|
|
50
|
|
67
|
|
36
|
|
||||||||||||
Real estate/mortgage
|
32
|
|
36
|
|
43
|
|
31
|
|
|
37
|
|
35
|
|
39
|
|
30
|
|
|
33
|
|
37
|
|
45
|
|
31
|
|
||||||||||||
Equities
|
36
|
|
33
|
|
49
|
|
20
|
|
|
27
|
|
24
|
|
36
|
|
17
|
|
|
37
|
|
41
|
|
55
|
|
29
|
|
||||||||||||
Commodities
|
15
|
|
13
|
|
15
|
|
11
|
|
|
13
|
|
15
|
|
18
|
|
12
|
|
|
10
|
|
13
|
|
17
|
|
8
|
|
||||||||||||
Portfolio diversification
|
(125
|
)
|
(130
|
)
|
—
|
|
—
|
|
|
(103
|
)
|
(114
|
)
|
—
|
|
—
|
|
|
(118
|
)
|
(126
|
)
|
—
|
|
—
|
|
||||||||||||
Total market-based trading portfolio
|
$
|
85
|
|
$
|
80
|
|
$
|
103
|
|
$
|
59
|
|
|
$
|
122
|
|
$
|
100
|
|
$
|
128
|
|
$
|
76
|
|
|
$
|
64
|
|
$
|
84
|
|
$
|
115
|
|
$
|
50
|
|
(1)
|
The high and low for the total portfolio may have occurred on different trading days than the high and low for the individual components. Therefore the amount of portfolio diversification, which is the difference between the total portfolio and the sum of the individual components, is not relevant.
|
Table 62
|
||||||||||||||
Average Market Risk VaR for Trading Activities – Additional VaR Statistics
|
||||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||
|
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||
(Dollars in millions)
|
|
99 percent
|
95 percent
|
|
99 percent
|
95 percent
|
||||||||
Foreign exchange
|
|
$
|
24
|
|
$
|
15
|
|
|
$
|
22
|
|
$
|
11
|
|
Interest rate
|
|
45
|
|
28
|
|
|
50
|
|
27
|
|
||||
Credit
|
|
59
|
|
28
|
|
|
68
|
|
31
|
|
||||
Real estate/mortgage
|
|
36
|
|
21
|
|
|
35
|
|
19
|
|
||||
Equities
|
|
33
|
|
19
|
|
|
24
|
|
16
|
|
||||
Commodities
|
|
13
|
|
7
|
|
|
15
|
|
8
|
|
||||
Portfolio diversification
|
|
(130
|
)
|
(80
|
)
|
|
(114
|
)
|
(64
|
)
|
||||
Total market-based trading portfolio
|
|
$
|
80
|
|
$
|
38
|
|
|
$
|
100
|
|
$
|
48
|
|
Backtesting
|
Total Trading Revenue
|
Trading Portfolio Stress Testing
|
Interest Rate Risk Management for Nontrading Activities
|
Table 63
|
|||||||||||||||||
Forward Rates
|
|||||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||
|
Federal Funds
|
|
Three-month
LIBOR |
|
10-Year Swap
|
|
Federal Funds
|
|
Three-month
LIBOR |
|
10-Year Swap
|
||||||
Spot rates
|
0.25
|
%
|
|
0.28
|
%
|
|
2.01
|
%
|
|
0.25
|
%
|
|
0.31
|
%
|
|
1.84
|
%
|
12-month forward rates
|
0.25
|
|
|
0.42
|
|
|
2.35
|
|
|
0.25
|
|
|
0.37
|
|
|
2.10
|
|
Table 64
|
|
|
|
|
|
|
|
||||||
Estimated Net Interest Income Excluding Trading-related Net Interest Income
|
|||||||||||||
(Dollars in millions)
Curve Change
|
Short Rate (bps)
|
|
Long Rate (bps)
|
|
March 31
2013 |
|
December 31
2012 |
||||||
Parallel shifts
|
|
|
|
|
|
|
|
||||||
+100 bps instantaneous shift
|
+100
|
|
|
+100
|
|
|
$
|
3,722
|
|
|
$
|
4,232
|
|
-50 bps instantaneous shift
|
-50
|
|
|
-50
|
|
|
(2,076
|
)
|
|
(2,250
|
)
|
||
Flatteners
|
|
|
|
|
|
|
|
||||||
Short end instantaneous change
|
+100
|
|
|
—
|
|
|
2,120
|
|
|
2,159
|
|
||
Long end instantaneous change
|
—
|
|
|
-50
|
|
|
(1,330
|
)
|
|
(1,597
|
)
|
||
Steepeners
|
|
|
|
|
|
|
|
||||||
Short end instantaneous change
|
-50
|
|
|
—
|
|
|
(750
|
)
|
|
(655
|
)
|
||
Long end instantaneous change
|
—
|
|
|
+100
|
|
|
1,630
|
|
|
2,091
|
|
Securities
|
Residential Mortgage Portfolio
|
Interest Rate and Foreign Exchange Derivative Contracts
|
Table 65
|
||||||||||||||||||||||||||||||||||
Asset and Liability Management Interest Rate and Foreign Exchange Contracts
|
||||||||||||||||||||||||||||||||||
|
|
|
|
|
March 31, 2013
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
Expected Maturity
|
|
|
|||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years)
|
Fair
Value
|
|
Total
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
Thereafter
|
|
Average
Estimated
Duration
|
|||||||||||||||||
Receive-fixed interest rate swaps
(1, 2)
|
$
|
9,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.53
|
|
|||||||
Notional amount
|
|
|
|
$
|
100,784
|
|
|
$
|
4,081
|
|
|
$
|
7,604
|
|
|
$
|
11,785
|
|
|
$
|
12,342
|
|
|
$
|
19,693
|
|
|
$
|
45,279
|
|
|
|
|
|
Weighted-average fixed-rate
|
|
|
|
3.69
|
%
|
|
3.83
|
%
|
|
3.79
|
%
|
|
3.56
|
%
|
|
3.70
|
%
|
|
3.89
|
%
|
|
3.61
|
%
|
|
|
|
||||||||
Pay-fixed interest rate swaps
(1, 2)
|
(2,827
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11.98
|
|
||||||||
Notional amount
|
|
|
|
$
|
30,970
|
|
|
$
|
18
|
|
|
$
|
3,604
|
|
|
$
|
520
|
|
|
$
|
1,025
|
|
|
$
|
1,527
|
|
|
$
|
24,276
|
|
|
|
|
|
Weighted-average fixed-rate
|
|
|
|
2.60
|
%
|
|
6.91
|
%
|
|
0.60
|
%
|
|
2.30
|
%
|
|
1.65
|
%
|
|
1.84
|
%
|
|
2.99
|
%
|
|
|
|
||||||||
Same-currency basis swaps
(3)
|
30
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notional amount
|
|
|
|
$
|
216,436
|
|
|
$
|
71,260
|
|
|
$
|
54,068
|
|
|
$
|
25,708
|
|
|
$
|
21,846
|
|
|
$
|
14,107
|
|
|
$
|
29,447
|
|
|
|
|
|
Foreign exchange basis swaps
(2, 4, 5)
|
(1,531
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notional amount
|
|
|
|
189,877
|
|
|
23,184
|
|
|
39,151
|
|
|
30,291
|
|
|
19,836
|
|
|
22,194
|
|
|
55,221
|
|
|
|
|
||||||||
Option products
(6)
|
22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notional amount
(7)
|
|
|
|
5,646
|
|
|
5,639
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
|
|
||||||||
Foreign exchange contracts
(2, 5, 8)
|
4,874
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notional amount
(7)
|
|
|
|
2,072
|
|
|
(20,328
|
)
|
|
8,016
|
|
|
1,267
|
|
|
580
|
|
|
6,930
|
|
|
5,607
|
|
|
|
|
||||||||
Futures and forward rate contracts
|
(64
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Notional amount
(7)
|
|
|
|
(29,170
|
)
|
|
(25,991
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,179
|
)
|
|
|
|
||||||||
Net ALM contracts
|
$
|
10,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
December 31, 2012
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
Expected Maturity
|
|
|
|||||||||||||||||||||||||||
(Dollars in millions, average estimated duration in years)
|
Fair
Value
|
|
Total
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
Thereafter
|
|
Average
Estimated
Duration
|
|||||||||||||||||
Receive-fixed interest rate swaps
(1, 2)
|
$
|
10,491
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.30
|
|
||||||||||||||
Notional amount
|
|
|
$
|
85,899
|
|
|
$
|
7,175
|
|
|
$
|
7,604
|
|
|
$
|
11,785
|
|
|
$
|
11,362
|
|
|
$
|
19,693
|
|
|
$
|
28,280
|
|
|
|
|||
Weighted-average fixed-rate
|
|
|
4.12
|
%
|
|
4.06
|
%
|
|
3.79
|
%
|
|
3.56
|
%
|
|
3.98
|
%
|
|
3.89
|
%
|
|
4.67
|
%
|
|
|
||||||||||
Pay-fixed interest rate swaps
(1, 2)
|
(4,903
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15.47
|
|
|||||||||||||||
Notional amount
|
|
|
$
|
26,548
|
|
|
$
|
27
|
|
|
$
|
3,989
|
|
|
$
|
520
|
|
|
$
|
1,025
|
|
|
$
|
1,527
|
|
|
$
|
19,460
|
|
|
|
|||
Weighted-average fixed-rate
|
|
|
3.09
|
%
|
|
6.91
|
%
|
|
0.79
|
%
|
|
2.30
|
%
|
|
1.65
|
%
|
|
1.84
|
%
|
|
3.75
|
%
|
|
|
||||||||||
Same-currency basis swaps
(3)
|
45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Notional amount
|
|
|
$
|
213,458
|
|
|
$
|
82,716
|
|
|
$
|
54,534
|
|
|
$
|
19,995
|
|
|
$
|
20,361
|
|
|
$
|
13,542
|
|
|
$
|
22,310
|
|
|
|
|||
Foreign exchange basis swaps
(2, 4, 5)
|
431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Notional amount
|
|
|
191,925
|
|
|
32,590
|
|
|
44,732
|
|
|
27,569
|
|
|
15,965
|
|
|
20,134
|
|
|
50,935
|
|
|
|
||||||||||
Option products
(6)
|
(147
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Notional amount
(7)
|
|
|
4,218
|
|
|
4,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
218
|
|
|
|
||||||||||
Foreign exchange contracts
(2, 5, 8)
|
5,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Notional amount
(7)
|
|
|
(1,200
|
)
|
|
(23,438
|
)
|
|
8,615
|
|
|
1,303
|
|
|
582
|
|
|
6,183
|
|
|
5,555
|
|
|
|
||||||||||
Futures and forward rate contracts
|
24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Notional amount
(7)
|
|
|
(11,595
|
)
|
|
(11,595
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
||||||||||
Net ALM contracts
|
$
|
11,577
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
At
March 31, 2013
, the receive-fixed interest rate swap notional amounts that represent forward starting swaps and which will not be effective until their respective contractual start dates totaled
$4.5 billion
compared to none at
December 31, 2012
. The forward starting pay-fixed swap positions at
March 31, 2013
and
December 31, 2012
were
$3.5 billion
and
$520 million
.
|
(2)
|
Does not include basis adjustments on either fixed-rate debt issued by the Corporation or AFS debt securities, which are hedged using derivatives designated as fair value hedging instruments, that substantially offset the fair values of these derivatives.
|
(3)
|
At
March 31, 2013
and
December 31, 2012
, the notional amount of same-currency basis swaps was comprised of
$216.4 billion
and
$213.5 billion
in both foreign currency and U.S. dollar-denominated basis swaps in which both sides of the swap are in the same currency.
|
(4)
|
Foreign exchange basis swaps consisted of cross-currency variable interest rate swaps used separately or in conjunction with receive-fixed interest rate swaps.
|
(5)
|
Does not include foreign currency translation adjustments on certain non-U.S. debt issued by the Corporation that substantially offset the fair values of these derivatives.
|
(6)
|
The notional amount of option products of
$5.6 billion
at
March 31, 2013
was comprised of
$4.0 billion
in MBS options,
$1.1 billion
in foreign exchange options,
$500 million
in swaptions and
$17 million
in purchased caps/floors. Option products of
$4.2 billion
at
December 31, 2012
were comprised of
$4.2 billion
in swaptions and
$18 million
in purchased caps/floors.
|
(7)
|
Reflects the net of long and short positions.
|
(8)
|
The notional amount of foreign exchange contracts of
$2.1 billion
at
March 31, 2013
was comprised of
$39.1 billion
in foreign currency-denominated and cross-currency receive-fixed swaps,
$(7.1) billion
in foreign currency-denominated pay-fixed swaps and
$(29.9) billion
in net foreign currency forward rate contracts. Foreign exchange contracts of
$(1.2) billion
at
December 31, 2012
were comprised of
$41.9 billion
in foreign currency-denominated and cross-currency receive-fixed swaps,
$(10.5) billion
in foreign currency-denominated pay-fixed swaps and
$(32.6) billion
in net foreign currency forward rate contracts.
|
Mortgage Banking Risk Management
|
Compliance Risk Management
|
Operational Risk Management
|
Complex Accounting Estimates
|
Level 3 Assets and Liabilities
|
Table 66
|
|||||||||||||||||||
Level 3 Asset and Liability Summary
|
|||||||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||
(Dollars in millions)
|
Level 3
Fair Value
|
|
As a %
of Total Level 3
Assets
|
|
As a %
of Total
Assets
|
|
Level 3
Fair Value
|
|
As a %
of Total Level 3
Assets
|
|
As a %
of Total
Assets
|
||||||||
Trading account assets
|
$
|
9,001
|
|
|
25.44
|
%
|
|
0.41
|
%
|
|
$
|
9,559
|
|
|
26.13
|
%
|
|
0.43
|
%
|
Derivative assets
|
8,011
|
|
|
22.64
|
|
|
0.37
|
|
|
8,073
|
|
|
22.06
|
|
|
0.37
|
|
||
AFS debt securities
|
5,193
|
|
|
14.68
|
|
|
0.24
|
|
|
5,091
|
|
|
13.91
|
|
|
0.23
|
|
||
All other Level 3 assets at fair value
|
13,173
|
|
|
37.24
|
|
|
0.61
|
|
|
13,865
|
|
|
37.90
|
|
|
0.63
|
|
||
Total Level 3 assets at fair value
(1)
|
$
|
35,378
|
|
|
100.00
|
%
|
|
1.63
|
%
|
|
$
|
36,588
|
|
|
100.00
|
%
|
|
1.66
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Level 3
Fair Value
|
|
As a %
of Total Level 3
Liabilities
|
|
As a %
of Total
Liabilities
|
|
Level 3
Fair Value
|
|
As a %
of Total Level 3
Liabilities
|
|
As a %
of Total
Liabilities
|
||||||||
Derivative liabilities
|
$
|
6,948
|
|
|
70.78
|
%
|
|
0.36
|
%
|
|
$
|
6,605
|
|
|
73.51
|
%
|
|
0.33
|
%
|
Long-term debt
|
2,355
|
|
|
23.99
|
|
|
0.12
|
|
|
2,301
|
|
|
25.61
|
|
|
0.12
|
|
||
All other Level 3 liabilities at fair value
|
513
|
|
|
5.23
|
|
|
0.03
|
|
|
79
|
|
|
0.88
|
|
|
0.01
|
|
||
Total Level 3 liabilities at fair value
(1)
|
$
|
9,816
|
|
|
100.00
|
%
|
|
0.51
|
%
|
|
$
|
8,985
|
|
|
100.00
|
%
|
|
0.46
|
%
|
(1)
|
Level 3 total assets and liabilities are shown before the impact of counterparty netting related to our derivative positions.
|
Representations and Warranties
|
Glossary
|
Acronyms
|
||
|
|
|
ABS
|
|
Asset-backed securities
|
AFS
|
|
Available-for-sale
|
ALM
|
|
Asset and liability management
|
ALMRC
|
|
Asset Liability and Market Risk Committee
|
ARM
|
|
Adjustable-rate mortgage
|
BHC
|
|
Bank holding company
|
CCAR
|
|
Comprehensive Capital Analysis and Review
|
CDO
|
|
Collateralized debt obligation
|
CLO
|
|
Collateralized loan obligation
|
CMBS
|
|
Commercial mortgage-backed securities
|
CRA
|
|
Community Reinvestment Act
|
CRC
|
|
Credit Risk Committee
|
EAD
|
|
Exposure at default
|
EU
|
|
European Union
|
FDIC
|
|
Federal Deposit Insurance Corporation
|
FHA
|
|
Federal Housing Administration
|
FHLMC
|
|
Freddie Mac
|
FICC
|
|
Fixed income, currencies and commodities
|
FICO
|
|
Fair Isaac Corporation (credit score)
|
FNMA
|
|
Fannie Mae
|
FTE
|
|
Fully taxable-equivalent
|
GAAP
|
|
Accounting principles generally accepted in the United States of America
|
GNMA
|
|
Government National Mortgage Association
|
GMRC
|
|
Global Markets Risk Committee
|
GSE
|
|
Government-sponsored enterprise
|
HELOC
|
|
Home equity lines of credit
|
HFI
|
|
Held-for-investment
|
HUD
|
|
U.S. Department of Housing and Urban Development
|
LCR
|
|
Liquidity coverage ratio
|
LGD
|
|
Loss given default
|
LHFS
|
|
Loans held-for-sale
|
LIBOR
|
|
London InterBank Offered Rate
|
MBS
|
|
Mortgage-backed securities
|
MD&A
|
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
MI
|
|
Mortgage insurance
|
MSA
|
|
Metropolitan statistical area
|
NSFR
|
|
Net stable funding ratio
|
OCC
|
|
Office of the Comptroller of the Currency
|
OCI
|
|
Other comprehensive income
|
OTC
|
|
Over-the-counter
|
OTTI
|
|
Other-than-temporary impairment
|
PPI
|
|
Payment protection insurance
|
RMBS
|
|
Residential mortgage-backed securities
|
SBLCs
|
|
Standby letters of credit
|
SEC
|
|
Securities and Exchange Commission
|
VA
|
|
U.S. Department of Veterans Affairs
|
VIE
|
|
Variable interest entity
|
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
Item 4. CONTROLS AND PROCEDURES
|
|
Evaluation of Disclosure Controls and Procedures
|
Changes in Internal Controls
|
Part I. FINANCIAL INFORMATION
|
|
|
|
||||
Item 1. FINANCIAL STATEMENTS
|
|
|
|
||||
Bank of America Corporation and Subsidiaries
|
|
|
|
||||
Consolidated Statement of Income
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions, except per share information)
|
2013
|
|
2012
|
||||
Interest income
|
|
|
|
||||
Loans and leases
|
$
|
9,178
|
|
|
$
|
10,173
|
|
Debt securities
|
2,549
|
|
|
2,746
|
|
||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
315
|
|
|
460
|
|
||
Trading account assets
|
1,337
|
|
|
1,352
|
|
||
Other interest income
|
722
|
|
|
730
|
|
||
Total interest income
|
14,101
|
|
|
15,461
|
|
||
|
|
|
|
||||
Interest expense
|
|
|
|
||||
Deposits
|
382
|
|
|
549
|
|
||
Short-term borrowings
|
749
|
|
|
881
|
|
||
Trading account liabilities
|
472
|
|
|
477
|
|
||
Long-term debt
|
1,834
|
|
|
2,708
|
|
||
Total interest expense
|
3,437
|
|
|
4,615
|
|
||
Net interest income
|
10,664
|
|
|
10,846
|
|
||
|
|
|
|
||||
Noninterest income
|
|
|
|
||||
Card income
|
1,410
|
|
|
1,457
|
|
||
Service charges
|
1,799
|
|
|
1,912
|
|
||
Investment and brokerage services
|
3,027
|
|
|
2,876
|
|
||
Investment banking income
|
1,535
|
|
|
1,217
|
|
||
Equity investment income
|
563
|
|
|
765
|
|
||
Trading account profits
|
2,989
|
|
|
2,075
|
|
||
Mortgage banking income
|
1,263
|
|
|
1,612
|
|
||
Gains on sales of debt securities
|
68
|
|
|
752
|
|
||
Other loss
|
(112
|
)
|
|
(1,194
|
)
|
||
Other-than-temporary impairment losses on available-for-sale debt securities:
|
|
|
|
||||
Total other-than-temporary impairment losses
|
(14
|
)
|
|
(51
|
)
|
||
Less: Portion of other-than-temporary impairment losses recognized in other comprehensive income
|
5
|
|
|
11
|
|
||
Net impairment losses recognized in earnings on available-for-sale debt securities
|
(9
|
)
|
|
(40
|
)
|
||
Total noninterest income
|
12,533
|
|
|
11,432
|
|
||
Total revenue, net of interest expense
|
23,197
|
|
|
22,278
|
|
||
|
|
|
|
||||
Provision for credit losses
|
1,713
|
|
|
2,418
|
|
||
|
|
|
|
||||
Noninterest expense
|
|
|
|
||||
Personnel
|
9,891
|
|
|
10,188
|
|
||
Occupancy
|
1,154
|
|
|
1,142
|
|
||
Equipment
|
550
|
|
|
611
|
|
||
Marketing
|
429
|
|
|
465
|
|
||
Professional fees
|
649
|
|
|
783
|
|
||
Amortization of intangibles
|
276
|
|
|
319
|
|
||
Data processing
|
812
|
|
|
856
|
|
||
Telecommunications
|
409
|
|
|
400
|
|
||
Other general operating
|
5,330
|
|
|
4,377
|
|
||
Total noninterest expense
|
19,500
|
|
|
19,141
|
|
||
Income before income taxes
|
1,984
|
|
|
719
|
|
||
Income tax expense
|
501
|
|
|
66
|
|
||
Net income
|
$
|
1,483
|
|
|
$
|
653
|
|
Preferred stock dividends
|
373
|
|
|
325
|
|
||
Net income applicable to common shareholders
|
$
|
1,110
|
|
|
$
|
328
|
|
|
|
|
|
||||
Per common share information
|
|
|
|
||||
Earnings
|
$
|
0.10
|
|
|
$
|
0.03
|
|
Diluted earnings
|
0.10
|
|
|
0.03
|
|
||
Dividends paid
|
0.01
|
|
|
0.01
|
|
||
Average common shares issued and outstanding (in thousands)
|
10,798,975
|
|
|
10,651,367
|
|
||
Average diluted common shares issued and outstanding (in thousands)
|
11,154,778
|
|
|
10,761,917
|
|
Bank of America Corporation and Subsidiaries
Consolidated Statement of Comprehensive Income
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Net income
|
$
|
1,483
|
|
|
$
|
653
|
|
Other comprehensive income, net-of-tax:
|
|
|
|
||||
Net change in available-for-sale debt and marketable equity securities
|
(906
|
)
|
|
(924
|
)
|
||
Net change in derivatives
|
172
|
|
|
382
|
|
||
Employee benefit plan adjustments
|
85
|
|
|
952
|
|
||
Net change in foreign currency translation adjustments
|
(42
|
)
|
|
31
|
|
||
Other comprehensive income (loss)
|
(691
|
)
|
|
441
|
|
||
Comprehensive income
|
$
|
792
|
|
|
$
|
1,094
|
|
Bank of America Corporation and Subsidiaries
Consolidated Balance Sheet (continued)
|
|||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
Liabilities
|
|
|
|
||||
Deposits in U.S. offices:
|
|
|
|
||||
Noninterest-bearing
|
$
|
357,623
|
|
|
$
|
372,546
|
|
Interest-bearing (includes
$2,130
and $2,262 measured at fair value)
|
661,930
|
|
|
654,332
|
|
||
Deposits in non-U.S. offices:
|
|
|
|
||||
Noninterest-bearing
|
7,177
|
|
|
7,573
|
|
||
Interest-bearing
|
68,453
|
|
|
70,810
|
|
||
Total deposits
|
1,095,183
|
|
|
1,105,261
|
|
||
Federal funds purchased and securities loaned or sold under agreements to repurchase (includes
$47,842
and $42,639 measured at fair value)
|
248,149
|
|
|
293,259
|
|
||
Trading account liabilities
|
90,547
|
|
|
73,587
|
|
||
Derivative liabilities
|
47,825
|
|
|
46,016
|
|
||
Short-term borrowings (includes
$3,168
and $4,074 measured at fair value)
|
42,148
|
|
|
30,731
|
|
||
Accrued expenses and other liabilities (includes
$14,285
and $16,594 measured at fair value and
$486
and $513 of reserve for unfunded lending commitments)
|
134,033
|
|
|
148,579
|
|
||
Long-term debt (includes
$52,361
and $49,161 measured at fair value)
|
279,641
|
|
|
275,585
|
|
||
Total liabilities
|
1,937,526
|
|
|
1,973,018
|
|
||
Commitments and contingencies (
Note 7 – Securitizations and Other Variable Interest Entities, Note 8 – Representations
and Warranties Obligations and Corporate Guarantees
and
Note 11 – Commitments and Contingencies)
|
|
|
|
|
|
||
|
|
|
|
||||
Shareholders' equity
|
|
|
|
||||
Preferred stock, $0.01 par value; authorized –
100,000,000
shares; issued and outstanding –
3,685,410
shares
|
18,780
|
|
|
18,768
|
|
||
Common stock and additional paid-in capital, $0.01 par value; authorized –
12,800,000,000
shares; issued and outstanding –
10,822,379,936
and 10,778,263,628 shares
|
158,157
|
|
|
158,142
|
|
||
Retained earnings
|
63,844
|
|
|
62,843
|
|
||
Accumulated other comprehensive income (loss)
|
(3,488
|
)
|
|
(2,797
|
)
|
||
Total shareholders' equity
|
237,293
|
|
|
236,956
|
|
||
Total liabilities and shareholders' equity
|
$
|
2,174,819
|
|
|
$
|
2,209,974
|
|
|
|
|
|
||||
Liabilities of consolidated variable interest entities included in total liabilities above
|
|
|
|
||||
Short-term borrowings (includes
$784
and $872 of non-recourse liabilities)
|
$
|
2,539
|
|
|
$
|
3,731
|
|
Long-term debt (includes
$26,647
and $29,476 of non-recourse debt)
|
31,461
|
|
|
34,256
|
|
||
All other liabilities (includes
$140
and $149 of non-recourse liabilities)
|
345
|
|
|
360
|
|
||
Total liabilities of consolidated variable interest entities
|
$
|
34,345
|
|
|
$
|
38,347
|
|
Bank of America Corporation and Subsidiaries
Consolidated Statement of Changes in Shareholders' Equity
|
|
||||||||||||||||
|
Preferred
Stock |
Common Stock and Additional Paid-in Capital
|
Retained
Earnings |
Accumulated
Other Comprehensive Income (Loss) |
Total
Shareholders' Equity |
||||||||||||
(Dollars in millions, shares in thousands)
|
Shares
|
Amount
|
|||||||||||||||
Balance, December 31, 2011
|
$
|
18,397
|
|
10,535,938
|
|
$
|
156,621
|
|
$
|
60,520
|
|
$
|
(5,437
|
)
|
$
|
230,101
|
|
Net income
|
|
|
|
653
|
|
|
653
|
|
|||||||||
Net change in available-for-sale debt and marketable equity securities
|
|
|
|
|
(924
|
)
|
(924
|
)
|
|||||||||
Net change in derivatives
|
|
|
|
|
382
|
|
382
|
|
|||||||||
Employee benefit plan adjustments
|
|
|
|
|
952
|
|
952
|
|
|||||||||
Net change in foreign currency translation adjustments
|
|
|
|
|
31
|
|
31
|
|
|||||||||
Dividends paid:
|
|
|
|
|
|
|
|||||||||||
Common
|
|
|
|
(114
|
)
|
|
(114
|
)
|
|||||||||
Preferred
|
|
|
|
(369
|
)
|
|
(369
|
)
|
|||||||||
Issuance of preferred stock
|
687
|
|
|
|
|
|
|
687
|
|
||||||||
Common stock issued in connection with exchanges of preferred stock and trust preferred securities
|
(296
|
)
|
49,867
|
|
412
|
|
44
|
|
|
160
|
|
||||||
Common stock issued under employee plans and related tax effects
|
|
189,799
|
|
940
|
|
|
|
940
|
|
||||||||
Balance, March 31, 2012
|
$
|
18,788
|
|
10,775,604
|
|
$
|
157,973
|
|
$
|
60,734
|
|
$
|
(4,996
|
)
|
$
|
232,499
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2012
|
$
|
18,768
|
|
10,778,264
|
|
$
|
158,142
|
|
$
|
62,843
|
|
$
|
(2,797
|
)
|
$
|
236,956
|
|
Net income
|
|
|
|
1,483
|
|
|
1,483
|
|
|||||||||
Net change in available-for-sale debt and marketable equity securities
|
|
|
|
|
(906
|
)
|
(906
|
)
|
|||||||||
Net change in derivatives
|
|
|
|
|
172
|
|
172
|
|
|||||||||
Employee benefit plan adjustments
|
|
|
|
|
85
|
|
85
|
|
|||||||||
Net change in foreign currency translation adjustments
|
|
|
|
|
(42
|
)
|
(42
|
)
|
|||||||||
Dividends paid:
|
|
|
|
|
|
|
|||||||||||
Common
|
|
|
|
(109
|
)
|
|
(109
|
)
|
|||||||||
Preferred
|
|
|
|
(373
|
)
|
|
(373
|
)
|
|||||||||
Net issuance of preferred stock
|
12
|
|
|
|
|
|
|
|
12
|
|
|||||||
Common stock issued under employee plans and related tax effects
|
|
44,116
|
|
15
|
|
|
|
15
|
|
||||||||
Balance, March 31, 2013
|
$
|
18,780
|
|
10,822,380
|
|
$
|
158,157
|
|
$
|
63,844
|
|
$
|
(3,488
|
)
|
$
|
237,293
|
|
Bank of America Corporation and Subsidiaries
Consolidated Statement of Cash Flows
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Operating activities
|
|
|
|
||||
Net income
|
$
|
1,483
|
|
|
$
|
653
|
|
Reconciliation of net income to net cash provided by (used in) operating activities:
|
|
|
|
||||
Provision for credit losses
|
1,713
|
|
|
2,418
|
|
||
Gains on sales of debt securities
|
(68
|
)
|
|
(752
|
)
|
||
Fair value adjustments on structured liabilities
|
90
|
|
|
3,314
|
|
||
Depreciation and premises improvements amortization
|
411
|
|
|
468
|
|
||
Amortization of intangibles
|
276
|
|
|
319
|
|
||
Net amortization of premium/discount on debt securities
|
340
|
|
|
161
|
|
||
Deferred income taxes
|
(146
|
)
|
|
(195
|
)
|
||
Originations and purchases of loans held-for-sale
|
(20,060
|
)
|
|
(10,516
|
)
|
||
Proceeds from sales, securitizations and paydowns of loans held-for-sale
|
21,266
|
|
|
10,044
|
|
||
Net (increase) decrease in trading and derivative instruments
|
22,642
|
|
|
(27,168
|
)
|
||
Net (increase) decrease in other assets
|
11,028
|
|
|
(10,709
|
)
|
||
Net increase (decrease) in accrued expenses and other liabilities
|
(14,528
|
)
|
|
12,150
|
|
||
Other operating activities, net
|
2,021
|
|
|
4,210
|
|
||
Net cash provided by (used in) operating activities
|
26,468
|
|
|
(15,603
|
)
|
||
Investing activities
|
|
|
|
||||
Net decrease in time deposits placed and other short-term investments
|
5,954
|
|
|
5,525
|
|
||
Net increase in federal funds sold and securities borrowed or purchased under agreements to resell
|
(699
|
)
|
|
(14,601
|
)
|
||
Proceeds from sales of debt securities carried at fair value
|
15,375
|
|
|
26,594
|
|
||
Proceeds from paydowns and maturities of debt securities carried at fair value
|
21,455
|
|
|
15,804
|
|
||
Purchases of debt securities carried at fair value
|
(33,577
|
)
|
|
(66,902
|
)
|
||
Proceeds from paydowns and maturities of held-to-maturity debt securities
|
2,567
|
|
|
972
|
|
||
Purchases of held-to-maturity debt securities
|
(2,713
|
)
|
|
—
|
|
||
Proceeds from sales of loans and leases
|
751
|
|
|
487
|
|
||
Purchases of loans and leases
|
(9,089
|
)
|
|
(499
|
)
|
||
Other changes in loans and leases, net
|
719
|
|
|
20,537
|
|
||
Net sales of premises and equipment
|
55
|
|
|
65
|
|
||
Proceeds from sales of foreclosed properties
|
262
|
|
|
772
|
|
||
Proceeds from sales of investments
|
674
|
|
|
—
|
|
||
Other investing activities, net
|
(64
|
)
|
|
(160
|
)
|
||
Net cash provided by (used in) investing activities
|
1,670
|
|
|
(11,406
|
)
|
||
Financing activities
|
|
|
|
||||
Net increase (decrease) in deposits
|
(10,078
|
)
|
|
8,270
|
|
||
Net increase (decrease) in federal funds purchased and securities loaned or sold under agreements to repurchase
|
(45,110
|
)
|
|
43,627
|
|
||
Net increase in short-term borrowings
|
11,467
|
|
|
3,506
|
|
||
Proceeds from issuance of long-term debt
|
20,194
|
|
|
10,275
|
|
||
Retirement of long-term debt
|
(12,556
|
)
|
|
(30,770
|
)
|
||
Proceeds from issuance of preferred stock
|
12
|
|
|
687
|
|
||
Cash dividends paid
|
(482
|
)
|
|
(483
|
)
|
||
Excess tax benefits on share-based payments
|
12
|
|
|
10
|
|
||
Other financing activities, net
|
(11
|
)
|
|
17
|
|
||
Net cash provided by (used in) financing activities
|
(36,552
|
)
|
|
35,139
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(1,358
|
)
|
|
560
|
|
||
Net increase (decrease) in cash and cash equivalents
|
(9,772
|
)
|
|
8,690
|
|
||
Cash and cash equivalents at January 1
|
110,752
|
|
|
120,102
|
|
||
Cash and cash equivalents at March 31
|
$
|
100,980
|
|
|
$
|
128,792
|
|
NOTE 1 – Summary of Significant Accounting Principles
|
Principles of Consolidation and Basis of Presentation
|
New Accounting Pronouncements
|
Accounting Policies
|
INDEX
|
Page
|
Note 3 – Derivatives
|
|
Note 4 – Securities
|
|
Note 5 – Outstanding Loans and Leases
|
|
Note 7 – Securitizations and Other Variable Interest Entities
|
|
Note 8 – Representations and Warranties Obligations and Corporate Guarantees
|
|
Note 11 – Commitments and Contingencies
|
|
Note 15 – Pension, Postretirement and Certain Compensation Plans
|
|
Note 16 – Fair Value Measurements
|
|
Note 19 – Mortgage Servicing Rights
|
NOTE 2 – Trading Account Assets and Liabilities
|
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
Trading account assets
|
|
|
|
||||
U.S. government and agency securities
(1)
|
$
|
72,878
|
|
|
$
|
86,974
|
|
Corporate securities, trading loans and other
|
39,183
|
|
|
37,900
|
|
||
Equity securities
|
45,863
|
|
|
43,315
|
|
||
Non-U.S. sovereign debt
|
48,634
|
|
|
42,746
|
|
||
Mortgage trading loans and asset-backed securities
|
16,470
|
|
|
16,840
|
|
||
Total trading account assets
|
$
|
223,028
|
|
|
$
|
227,775
|
|
Trading account liabilities
|
|
|
|
||||
U.S. government and agency securities
|
$
|
25,764
|
|
|
$
|
23,430
|
|
Equity securities
|
24,749
|
|
|
22,492
|
|
||
Non-U.S. sovereign debt
|
29,377
|
|
|
20,244
|
|
||
Corporate securities and other
|
10,657
|
|
|
7,421
|
|
||
Total trading account liabilities
|
$
|
90,547
|
|
|
$
|
73,587
|
|
(1)
|
Includes
$25.5 billion
and
$30.6 billion
of government-sponsored enterprise obligations at
March 31, 2013
and
December 31, 2012
.
|
NOTE 3 – Derivatives
|
|
Derivative Balances
|
|
March 31, 2013
|
||||||||||||||||||||||||||
|
|
|
Gross Derivative Assets
|
|
Gross Derivative Liabilities
|
||||||||||||||||||||||
(Dollars in billions)
|
Contract/
Notional
(1)
|
|
Trading Derivatives and Other Risk Management Derivatives
|
|
Qualifying
Accounting
Hedges
|
|
Total
|
|
Trading Derivatives and Other Risk Management Derivatives
|
|
Qualifying
Accounting
Hedges
|
|
Total
|
||||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
$
|
33,883.6
|
|
|
$
|
920.0
|
|
|
$
|
12.6
|
|
|
$
|
932.6
|
|
|
$
|
910.1
|
|
|
$
|
2.8
|
|
|
$
|
912.9
|
|
Futures and forwards
|
12,220.8
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|
2.1
|
|
|
—
|
|
|
2.1
|
|
|||||||
Written options
|
2,224.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
93.8
|
|
|
—
|
|
|
93.8
|
|
|||||||
Purchased options
|
2,147.3
|
|
|
94.7
|
|
|
—
|
|
|
94.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
2,349.4
|
|
|
42.2
|
|
|
1.2
|
|
|
43.4
|
|
|
46.6
|
|
|
2.3
|
|
|
48.9
|
|
|||||||
Spot, futures and forwards
|
2,747.7
|
|
|
29.3
|
|
|
0.9
|
|
|
30.2
|
|
|
29.6
|
|
|
0.5
|
|
|
30.1
|
|
|||||||
Written options
|
526.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.6
|
|
|
—
|
|
|
9.6
|
|
|||||||
Purchased options
|
476.0
|
|
|
8.8
|
|
|
—
|
|
|
8.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Equity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
137.0
|
|
|
2.3
|
|
|
—
|
|
|
2.3
|
|
|
2.3
|
|
|
—
|
|
|
2.3
|
|
|||||||
Futures and forwards
|
68.6
|
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|
1.2
|
|
|
—
|
|
|
1.2
|
|
|||||||
Written options
|
335.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23.7
|
|
|
—
|
|
|
23.7
|
|
|||||||
Purchased options
|
314.0
|
|
|
22.9
|
|
|
—
|
|
|
22.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commodity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
73.6
|
|
|
3.0
|
|
|
—
|
|
|
3.0
|
|
|
4.2
|
|
|
—
|
|
|
4.2
|
|
|||||||
Futures and forwards
|
555.8
|
|
|
5.5
|
|
|
—
|
|
|
5.5
|
|
|
3.5
|
|
|
—
|
|
|
3.5
|
|
|||||||
Written options
|
206.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.3
|
|
|
—
|
|
|
7.3
|
|
|||||||
Purchased options
|
213.8
|
|
|
7.2
|
|
|
—
|
|
|
7.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Credit derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Purchased credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Credit default swaps
|
1,610.7
|
|
|
32.7
|
|
|
—
|
|
|
32.7
|
|
|
22.8
|
|
|
—
|
|
|
22.8
|
|
|||||||
Total return swaps/other
|
44.4
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
|
2.9
|
|
|
—
|
|
|
2.9
|
|
|||||||
Written credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Credit default swaps
|
1,581.3
|
|
|
23.7
|
|
|
—
|
|
|
23.7
|
|
|
29.7
|
|
|
—
|
|
|
29.7
|
|
|||||||
Total return swaps/other
|
73.9
|
|
|
2.2
|
|
|
—
|
|
|
2.2
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||||||
Gross derivative assets/liabilities
|
|
|
$
|
1,200.0
|
|
|
$
|
14.7
|
|
|
$
|
1,214.7
|
|
|
$
|
1,189.8
|
|
|
$
|
5.6
|
|
|
$
|
1,195.4
|
|
||
Less: Legally enforceable master netting agreements
|
|
|
|
(1,104.8
|
)
|
|
|
|
|
|
(1,104.8
|
)
|
|||||||||||||||
Less: Cash collateral received/paid
|
|
|
|
|
|
|
(57.7
|
)
|
|
|
|
|
|
(42.8
|
)
|
||||||||||||
Total derivative assets/liabilities
|
|
|
|
|
|
$
|
52.2
|
|
|
|
|
|
|
$
|
47.8
|
|
(1)
|
Represents the total contract/notional amount of derivative assets and liabilities outstanding.
|
|
December 31, 2012
|
||||||||||||||||||||||||||
|
|
|
Gross Derivative Assets
|
|
Gross Derivative Liabilities
|
||||||||||||||||||||||
(Dollars in billions)
|
Contract/
Notional
(1)
|
|
Trading Derivatives and Other Risk Management Derivatives
|
|
Qualifying
Accounting
Hedges
|
|
Total
|
|
Trading Derivatives and Other Risk Management Derivatives
|
|
Qualifying
Accounting
Hedges
|
|
Total
|
||||||||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
$
|
34,667.4
|
|
|
$
|
1,075.4
|
|
|
$
|
13.8
|
|
|
$
|
1,089.2
|
|
|
$
|
1,062.6
|
|
|
$
|
4.7
|
|
|
$
|
1,067.3
|
|
Futures and forwards
|
11,950.5
|
|
|
2.8
|
|
|
—
|
|
|
2.8
|
|
|
2.7
|
|
|
—
|
|
|
2.7
|
|
|||||||
Written options
|
2,343.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
106.0
|
|
|
—
|
|
|
106.0
|
|
|||||||
Purchased options
|
2,162.6
|
|
|
105.5
|
|
|
—
|
|
|
105.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
2,489.0
|
|
|
47.4
|
|
|
1.4
|
|
|
48.8
|
|
|
53.2
|
|
|
1.8
|
|
|
55.0
|
|
|||||||
Spot, futures and forwards
|
3,023.0
|
|
|
31.5
|
|
|
0.4
|
|
|
31.9
|
|
|
30.5
|
|
|
0.8
|
|
|
31.3
|
|
|||||||
Written options
|
363.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.3
|
|
|
—
|
|
|
7.3
|
|
|||||||
Purchased options
|
321.8
|
|
|
6.5
|
|
|
—
|
|
|
6.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Equity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
127.1
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|||||||
Futures and forwards
|
58.4
|
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|
1.0
|
|
|
—
|
|
|
1.0
|
|
|||||||
Written options
|
295.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20.2
|
|
|
—
|
|
|
20.2
|
|
|||||||
Purchased options
|
271.0
|
|
|
20.4
|
|
|
—
|
|
|
20.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Commodity contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Swaps
|
60.5
|
|
|
2.5
|
|
|
0.1
|
|
|
2.6
|
|
|
4.0
|
|
|
—
|
|
|
4.0
|
|
|||||||
Futures and forwards
|
498.9
|
|
|
4.8
|
|
|
—
|
|
|
4.8
|
|
|
2.7
|
|
|
—
|
|
|
2.7
|
|
|||||||
Written options
|
166.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.4
|
|
|
—
|
|
|
7.4
|
|
|||||||
Purchased options
|
168.2
|
|
|
7.1
|
|
|
—
|
|
|
7.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Credit derivatives
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Purchased credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Credit default swaps
|
1,559.5
|
|
|
35.6
|
|
|
—
|
|
|
35.6
|
|
|
22.1
|
|
|
—
|
|
|
22.1
|
|
|||||||
Total return swaps/other
|
43.5
|
|
|
2.5
|
|
|
—
|
|
|
2.5
|
|
|
2.9
|
|
|
—
|
|
|
2.9
|
|
|||||||
Written credit derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Credit default swaps
|
1,531.5
|
|
|
23.0
|
|
|
—
|
|
|
23.0
|
|
|
32.6
|
|
|
—
|
|
|
32.6
|
|
|||||||
Total return swaps/other
|
68.8
|
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
|||||||
Gross derivative assets/liabilities
|
|
|
$
|
1,367.8
|
|
|
$
|
15.7
|
|
|
$
|
1,383.5
|
|
|
$
|
1,357.5
|
|
|
$
|
7.3
|
|
|
$
|
1,364.8
|
|
||
Less: Legally enforceable master netting agreements
|
|
|
|
(1,271.9
|
)
|
|
|
|
|
|
(1,271.9
|
)
|
|||||||||||||||
Less: Cash collateral received/paid
|
|
|
|
|
|
|
(58.1
|
)
|
|
|
|
|
|
(46.9
|
)
|
||||||||||||
Total derivative assets/liabilities
|
|
|
|
|
|
$
|
53.5
|
|
|
|
|
|
|
$
|
46.0
|
|
(1)
|
Represents the total contract/notional amount of derivative assets and liabilities outstanding.
|
Offsetting of Derivatives
|
Offsetting of Derivatives
|
|
|
|
|
|
|
|
||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||
(Dollars in billions)
|
Derivative
Assets
|
|
Derivative
Liabilities
|
|
Derivative
Assets
|
|
Derivative
Liabilities
|
||||||||
Interest rate contracts
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
$
|
584.8
|
|
|
$
|
556.4
|
|
|
$
|
646.7
|
|
|
$
|
623.4
|
|
Over-the-counter cleared
|
442.9
|
|
|
449.5
|
|
|
539.5
|
|
|
545.1
|
|
||||
Foreign exchange contracts
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
79.5
|
|
|
83.7
|
|
|
84.1
|
|
|
88.7
|
|
||||
Equity contracts
|
|
|
|
|
|
|
|
|
|
||||||
Over-the-counter
|
16.9
|
|
|
14.6
|
|
|
15.2
|
|
|
13.3
|
|
||||
Exchange-traded
|
5.5
|
|
|
6.2
|
|
|
4.8
|
|
|
4.7
|
|
||||
Commodity contracts
|
|
|
|
|
|
|
|
||||||||
Over-the-counter
|
8.2
|
|
|
8.7
|
|
|
6.9
|
|
|
7.9
|
|
||||
Exchange-traded
|
3.3
|
|
|
3.2
|
|
|
3.4
|
|
|
3.2
|
|
||||
Credit derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||
Over-the-counter
|
54.8
|
|
|
50.6
|
|
|
56.0
|
|
|
53.9
|
|
||||
Over-the-counter cleared
|
4.4
|
|
|
4.4
|
|
|
3.8
|
|
|
3.4
|
|
||||
Total gross derivative assets/liabilities, before netting
|
$
|
1,200.3
|
|
|
$
|
1,177.3
|
|
|
$
|
1,360.4
|
|
|
$
|
1,343.6
|
|
Less: Legally enforceable master netting
|
(1,104.8
|
)
|
|
(1,104.8
|
)
|
|
(1,271.9
|
)
|
|
(1,271.9
|
)
|
||||
Less: Cash collateral received/paid
|
(57.7
|
)
|
|
(42.8
|
)
|
|
(58.1
|
)
|
|
(46.9
|
)
|
||||
Derivative assets/liabilities, after netting
|
37.8
|
|
|
29.7
|
|
|
30.4
|
|
|
24.8
|
|
||||
Other gross derivative assets/liabilities
|
14.4
|
|
|
18.1
|
|
|
23.1
|
|
|
21.2
|
|
||||
Total derivative assets/liabilities
|
52.2
|
|
|
47.8
|
|
|
53.5
|
|
|
46.0
|
|
||||
Less: Financial instruments collateral
(1)
|
(11.4
|
)
|
|
(12.8
|
)
|
|
(11.5
|
)
|
|
(14.6
|
)
|
||||
Total net derivative assets/liabilities
|
$
|
40.8
|
|
|
$
|
35.0
|
|
|
$
|
42.0
|
|
|
$
|
31.4
|
|
(1)
|
These amounts are limited to the derivative asset/liability balance, and accordingly, do not include excess collateral received/pledged.
|
ALM and Risk Management Derivatives
|
Derivatives Designated as Accounting Hedges
|
Derivatives Designated as Fair Value Hedges
|
|||||||||||
Gains (Losses)
|
Three Months Ended March 31, 2013
|
||||||||||
(Dollars in millions)
|
Derivative
|
|
Hedged
Item
|
|
Hedge
Ineffectiveness
|
||||||
Interest rate risk on long-term debt
(1)
|
$
|
(953
|
)
|
|
$
|
771
|
|
|
$
|
(182
|
)
|
Interest rate and foreign currency risk on long-term debt
(1)
|
(1,538
|
)
|
|
1,456
|
|
|
(82
|
)
|
|||
Interest rate risk on available-for-sale securities
(2)
|
850
|
|
|
(846
|
)
|
|
4
|
|
|||
Price risk on commodity inventory
(3)
|
(3
|
)
|
|
3
|
|
|
—
|
|
|||
Total
|
$
|
(1,644
|
)
|
|
$
|
1,384
|
|
|
$
|
(260
|
)
|
|
|
|
|
|
|
||||||
|
Three Months Ended March 31, 2012
|
||||||||||
Interest rate risk on long-term debt
(1)
|
$
|
(1,001
|
)
|
|
$
|
764
|
|
|
$
|
(237
|
)
|
Interest rate and foreign currency risk on long-term debt
(1)
|
155
|
|
|
(173
|
)
|
|
(18
|
)
|
|||
Interest rate risk on available-for-sale securities
(2)
|
2,948
|
|
|
(2,801
|
)
|
|
147
|
|
|||
Price risk on commodity inventory
(3)
|
23
|
|
|
(23
|
)
|
|
—
|
|
|||
Total
|
$
|
2,125
|
|
|
$
|
(2,233
|
)
|
|
$
|
(108
|
)
|
(1)
|
Amounts are recorded in interest expense on long-term debt and in other loss.
|
(2)
|
Amounts are recorded in interest income on debt securities.
|
(3)
|
Amounts relating to commodity inventory are recorded in trading account profits.
|
(1)
|
Amounts related to derivatives designated as cash flow hedges represent hedge ineffectiveness and amounts related to net investment hedges represent amounts excluded from effectiveness testing.
|
Other Risk Management Derivatives
|
Other Risk Management Derivatives
|
|||||||
Gains (Losses)
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Price risk on mortgage banking production income
(1, 2)
|
$
|
422
|
|
|
$
|
589
|
|
Market-related risk on mortgage banking servicing income
(1)
|
(136
|
)
|
|
(203
|
)
|
||
Credit risk on loans
(3)
|
3
|
|
|
(57
|
)
|
||
Interest rate and foreign currency risk on ALM activities
(4)
|
(605
|
)
|
|
464
|
|
||
Price risk on restricted stock awards
(5)
|
116
|
|
|
473
|
|
||
Other
|
(4
|
)
|
|
6
|
|
||
Total
|
$
|
(204
|
)
|
|
$
|
1,272
|
|
(1)
|
Net gains on these derivatives are recorded in mortgage banking income.
|
(2)
|
Includes net gains on interest rate lock commitments related to the origination of mortgage loans that are held-for-sale, which are considered derivative instruments, of
$407 million
and
$547 million
for the
three months ended March 31, 2013 and 2012
.
|
(3)
|
Net gains (losses) on these derivatives are recorded in other loss.
|
(4)
|
The majority of the balance is related to the revaluation of derivatives used to mitigate risk related to foreign currency-denominated debt which is recorded in other loss. The offsetting revaluation of the foreign currency-denominated debt, while not included in the table above, is also recorded in other loss.
|
(5)
|
Gains (losses) on these derivatives are recorded in personnel expense.
|
Sales and Trading Revenue
|
Sales and Trading Revenue
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended March 31, 2013
|
||||||||||||||
(Dollars in millions)
|
Trading
Account
Profits
|
|
Net Interest Income
|
|
Other
(1)
|
|
Total
|
||||||||
Interest rate risk
|
$
|
677
|
|
|
$
|
292
|
|
|
$
|
13
|
|
|
$
|
982
|
|
Foreign exchange risk
|
370
|
|
|
—
|
|
|
(8
|
)
|
|
362
|
|
||||
Equity risk
|
608
|
|
|
15
|
|
|
536
|
|
|
1,159
|
|
||||
Credit risk
|
1,038
|
|
|
717
|
|
|
(369
|
)
|
|
1,386
|
|
||||
Other risk
|
196
|
|
|
(48
|
)
|
|
12
|
|
|
160
|
|
||||
Total sales and trading revenue
|
$
|
2,889
|
|
|
$
|
976
|
|
|
$
|
184
|
|
|
$
|
4,049
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended March 31, 2012
|
||||||||||||||
Interest rate risk
|
$
|
59
|
|
|
$
|
271
|
|
|
$
|
(10
|
)
|
|
$
|
320
|
|
Foreign exchange risk
|
232
|
|
|
2
|
|
|
2
|
|
|
236
|
|
||||
Equity risk
|
375
|
|
|
7
|
|
|
529
|
|
|
911
|
|
||||
Credit risk
|
1,142
|
|
|
543
|
|
|
371
|
|
|
2,056
|
|
||||
Other risk
|
229
|
|
|
(74
|
)
|
|
27
|
|
|
182
|
|
||||
Total sales and trading revenue
|
$
|
2,037
|
|
|
$
|
749
|
|
|
$
|
919
|
|
|
$
|
3,705
|
|
(1)
|
Represents amounts in investment and brokerage services and other loss that are recorded in
Global Markets
and included in the definition of sales and trading revenue. Includes investment and brokerage services revenue of
$528 million
and
$514 million
for the
three months ended March 31, 2013 and 2012
, primarily included in equity risk.
|
Credit Derivatives
|
Credit Derivative Instruments
|
|
|
|||||||||||||||||
|
March 31, 2013
|
||||||||||||||||||
|
Carrying Value
|
||||||||||||||||||
(Dollars in millions)
|
Less than
One Year
|
|
One to
Three Years
|
|
Three to
Five Years
|
|
Over Five
Years
|
|
Total
|
||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
62
|
|
|
$
|
873
|
|
|
$
|
5,504
|
|
|
$
|
3,140
|
|
|
$
|
9,579
|
|
Non-investment grade
|
856
|
|
|
3,652
|
|
|
5,493
|
|
|
10,110
|
|
|
20,111
|
|
|||||
Total
|
918
|
|
|
4,525
|
|
|
10,997
|
|
|
13,250
|
|
|
29,690
|
|
|||||
Total return swaps/other:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
38
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38
|
|
|||||
Non-investment grade
|
192
|
|
|
77
|
|
|
63
|
|
|
14
|
|
|
346
|
|
|||||
Total
|
230
|
|
|
77
|
|
|
63
|
|
|
14
|
|
|
384
|
|
|||||
Total credit derivatives
|
$
|
1,148
|
|
|
$
|
4,602
|
|
|
$
|
11,060
|
|
|
$
|
13,264
|
|
|
$
|
30,074
|
|
Credit-related notes:
(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
4
|
|
|
$
|
21
|
|
|
$
|
275
|
|
|
$
|
4,309
|
|
|
$
|
4,609
|
|
Non-investment grade
|
108
|
|
|
172
|
|
|
647
|
|
|
1,371
|
|
|
2,298
|
|
|||||
Total credit-related notes
|
$
|
112
|
|
|
$
|
193
|
|
|
$
|
922
|
|
|
$
|
5,680
|
|
|
$
|
6,907
|
|
|
Maximum Payout/Notional
|
||||||||||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
264,038
|
|
|
$
|
336,442
|
|
|
$
|
537,624
|
|
|
$
|
111,327
|
|
|
$
|
1,249,431
|
|
Non-investment grade
|
76,785
|
|
|
97,597
|
|
|
111,607
|
|
|
45,913
|
|
|
331,902
|
|
|||||
Total
|
340,823
|
|
|
434,039
|
|
|
649,231
|
|
|
157,240
|
|
|
1,581,333
|
|
|||||
Total return swaps/other:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
24,359
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,359
|
|
|||||
Non-investment grade
|
34,503
|
|
|
8,137
|
|
|
5,406
|
|
|
1,497
|
|
|
49,543
|
|
|||||
Total
|
58,862
|
|
|
8,137
|
|
|
5,406
|
|
|
1,497
|
|
|
73,902
|
|
|||||
Total credit derivatives
|
$
|
399,685
|
|
|
$
|
442,176
|
|
|
$
|
654,637
|
|
|
$
|
158,737
|
|
|
$
|
1,655,235
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2012
|
||||||||||||||||||
|
Carrying Value
|
||||||||||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
52
|
|
|
$
|
757
|
|
|
$
|
5,595
|
|
|
$
|
2,903
|
|
|
$
|
9,307
|
|
Non-investment grade
|
923
|
|
|
4,403
|
|
|
7,030
|
|
|
10,959
|
|
|
23,315
|
|
|||||
Total
|
975
|
|
|
5,160
|
|
|
12,625
|
|
|
13,862
|
|
|
32,622
|
|
|||||
Total return swaps/other:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
39
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||
Non-investment grade
|
57
|
|
|
104
|
|
|
39
|
|
|
37
|
|
|
237
|
|
|||||
Total
|
96
|
|
|
104
|
|
|
39
|
|
|
37
|
|
|
276
|
|
|||||
Total credit derivatives
|
$
|
1,071
|
|
|
$
|
5,264
|
|
|
$
|
12,664
|
|
|
$
|
13,899
|
|
|
$
|
32,898
|
|
Credit-related notes:
(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
4
|
|
|
$
|
12
|
|
|
$
|
441
|
|
|
$
|
3,849
|
|
|
$
|
4,306
|
|
Non-investment grade
|
116
|
|
|
161
|
|
|
314
|
|
|
1,425
|
|
|
2,016
|
|
|||||
Total credit-related notes
|
$
|
120
|
|
|
$
|
173
|
|
|
$
|
755
|
|
|
$
|
5,274
|
|
|
$
|
6,322
|
|
|
Maximum Payout/Notional
|
||||||||||||||||||
Credit default swaps:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
$
|
260,177
|
|
|
$
|
349,125
|
|
|
$
|
500,038
|
|
|
$
|
90,453
|
|
|
$
|
1,199,793
|
|
Non-investment grade
|
79,861
|
|
|
99,043
|
|
|
110,248
|
|
|
42,559
|
|
|
331,711
|
|
|||||
Total
|
340,038
|
|
|
448,168
|
|
|
610,286
|
|
|
133,012
|
|
|
1,531,504
|
|
|||||
Total return swaps/other:
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment grade
|
43,536
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
43,551
|
|
|||||
Non-investment grade
|
5,566
|
|
|
11,028
|
|
|
7,631
|
|
|
1,035
|
|
|
25,260
|
|
|||||
Total
|
49,102
|
|
|
11,043
|
|
|
7,631
|
|
|
1,035
|
|
|
68,811
|
|
|||||
Total credit derivatives
|
$
|
389,140
|
|
|
$
|
459,211
|
|
|
$
|
617,917
|
|
|
$
|
134,047
|
|
|
$
|
1,600,315
|
|
(1)
|
For credit-related notes, maximum payout/notional is the same as carrying value.
|
Credit-related Contingent Features and Collateral
|
Valuation Adjustments on Derivatives
|
(1)
|
At
March 31, 2013
and
December 31, 2012
, the cumulative CVA reduced the derivative assets balance by
$2.5 billion
and
$2.4 billion
.
|
(2)
|
At
March 31, 2013
and
December 31, 2012
, the cumulative DVA reduced the derivative liabilities balance by
$1.2 billion
and
$807 million
.
|
NOTE 4 – Securities
|
(1)
|
At
March 31, 2013
, the underlying collateral type includes approximately
91 percent
prime,
six percent
Alt-A and
three percent
subprime.
|
(2)
|
Classified in other assets on the Consolidated Balance Sheet.
|
(1)
|
At
December 31, 2012
, the underlying collateral type includes approximately
91 percent
prime,
six percent
Alt-A and
three percent
subprime.
|
(2)
|
Classified in other assets on the Consolidated Balance Sheet.
|
Other Debt Securities Carried at Fair Value
|
|
|
|
||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
U.S. Treasury and agency securities
|
$
|
3,861
|
|
|
$
|
491
|
|
Mortgage-backed securities:
|
|
|
|
||||
Agency
|
29,178
|
|
|
13,073
|
|
||
Agency-collateralized mortgage obligations
|
958
|
|
|
929
|
|
||
Non-agency commercial
|
103
|
|
|
—
|
|
||
Non-U.S. securities
(1)
|
9,182
|
|
|
9,451
|
|
||
Total
|
$
|
43,282
|
|
|
$
|
23,944
|
|
(1)
|
These securities are used to satisfy certain international regulatory liquidity requirements.
|
Net Impairment Losses Recognized in Earnings
|
|||||||||||
|
Three Months Ended March 31, 2013
|
||||||||||
(Dollars in millions)
|
Non-agency
Residential MBS |
|
Non-agency
Commercial MBS |
|
Total
|
||||||
Total OTTI losses (unrealized and realized)
|
$
|
(14
|
)
|
|
$
|
—
|
|
|
$
|
(14
|
)
|
Unrealized OTTI losses recognized in accumulated OCI
|
5
|
|
|
—
|
|
|
5
|
|
|||
Net impairment losses recognized in earnings
|
$
|
(9
|
)
|
|
$
|
—
|
|
|
$
|
(9
|
)
|
|
|
|
|
|
|
||||||
|
Three Months Ended March 31, 2012
|
||||||||||
Total OTTI losses (unrealized and realized)
|
$
|
(49
|
)
|
|
$
|
(2
|
)
|
|
$
|
(51
|
)
|
Unrealized OTTI losses recognized in accumulated OCI
|
11
|
|
|
—
|
|
|
11
|
|
|||
Net impairment losses recognized in earnings
|
$
|
(38
|
)
|
|
$
|
(2
|
)
|
|
$
|
(40
|
)
|
Rollforward of Credit Losses Recognized
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Balance, beginning of period
|
$
|
243
|
|
|
$
|
310
|
|
Additions for credit losses recognized on AFS debt securities that had no previous impairment losses
|
4
|
|
|
2
|
|
||
Additions for credit losses recognized on AFS debt securities that had previously incurred impairment losses
|
5
|
|
|
38
|
|
||
Reductions for AFS debt securities sold or intended to be sold
|
(8
|
)
|
|
(84
|
)
|
||
Balance, March 31
|
$
|
244
|
|
|
$
|
266
|
|
(1)
|
Represents the range of inputs/assumptions based upon the underlying collateral.
|
(2)
|
The value of a variable below which the indicated percentile of observations will fall.
|
(1)
|
Includes other-than-temporarily impaired AFS debt securities on which an OTTI loss remains in accumulated OCI.
|
(2)
|
At
March 31, 2013
, the amortized cost of approximately
2,600
AFS debt securities exceeded their fair value by
$1.1 billion
.
|
(1)
|
Includes other-than-temporarily impaired AFS debt securities on which an OTTI loss remains in accumulated OCI.
|
(2)
|
At
December 31, 2012
, the amortized cost of approximately
2,600
AFS debt securities exceeded their fair value by
$660 million
.
|
(1)
|
Average yield is computed using the effective yield of each security at the end of the period, weighted based on the amortized cost of each security. The effective yield considers the contractual coupon, amortization of premiums and accretion of discounts, and excludes the effect of related hedging derivatives.
|
(2)
|
Substantially all U.S. agency MBS.
|
Gains and Losses on Sales of AFS Debt Securities
|
|||||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Gross gains
|
$
|
69
|
|
|
$
|
1,173
|
|
Gross losses
|
(1
|
)
|
|
(421
|
)
|
||
Net gains on sales of AFS debt securities
|
$
|
68
|
|
|
$
|
752
|
|
Income tax expense attributable to realized net gains on sales of AFS debt securities
|
$
|
25
|
|
|
$
|
278
|
|
Certain Corporate and Strategic Investments
|
NOTE 5 – Outstanding Loans and Leases
|
|
March 31, 2013
|
|||||||||||||||||||||||
(Dollars in millions)
|
30-59 Days
Past Due (1) |
60-89 Days
Past Due (1) |
90 Days or
More Past Due (2) |
Total
Past Due
30 Days
or More |
Total Current
or Less Than 30 Days Past Due (3) |
Purchased
Credit - impaired (4) |
Loans
Accounted for Under the Fair Value Option |
Total
Outstandings |
||||||||||||||||
Home loans
|
|
|
|
|
|
|
|
|
||||||||||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
(5)
|
$
|
2,160
|
|
$
|
666
|
|
$
|
6,611
|
|
$
|
9,437
|
|
$
|
160,996
|
|
|
|
$
|
170,433
|
|
||||
Home equity
|
256
|
|
137
|
|
606
|
|
999
|
|
57,959
|
|
|
|
58,958
|
|
||||||||||
Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
(6)
|
2,827
|
|
1,410
|
|
24,912
|
|
29,149
|
|
35,338
|
|
$
|
22,004
|
|
|
86,491
|
|
||||||||
Home equity
|
538
|
|
295
|
|
1,351
|
|
2,184
|
|
34,416
|
|
7,660
|
|
|
44,260
|
|
|||||||||
Credit card and other consumer
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. credit card
|
663
|
|
487
|
|
1,360
|
|
2,510
|
|
87,537
|
|
|
|
90,047
|
|
||||||||||
Non-U.S. credit card
|
89
|
|
67
|
|
181
|
|
337
|
|
10,283
|
|
|
|
10,620
|
|
||||||||||
Direct/Indirect consumer
(7)
|
473
|
|
198
|
|
520
|
|
1,191
|
|
80,327
|
|
|
|
81,518
|
|
||||||||||
Other consumer
(8)
|
42
|
|
16
|
|
2
|
|
60
|
|
1,636
|
|
|
|
1,696
|
|
||||||||||
Total consumer loans
|
7,048
|
|
3,276
|
|
35,543
|
|
45,867
|
|
468,492
|
|
29,664
|
|
|
544,023
|
|
|||||||||
Consumer loans accounted for under the fair value option
(9)
|
|
|
|
|
|
|
$
|
1,041
|
|
1,041
|
|
|||||||||||||
Total consumer
|
7,048
|
|
3,276
|
|
35,543
|
|
45,867
|
|
468,492
|
|
29,664
|
|
1,041
|
|
545,064
|
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. commercial
|
406
|
|
101
|
|
522
|
|
1,029
|
|
200,331
|
|
|
|
201,360
|
|
||||||||||
Commercial real estate
(10)
|
154
|
|
74
|
|
768
|
|
996
|
|
38,064
|
|
|
|
39,060
|
|
||||||||||
Commercial lease financing
|
182
|
|
9
|
|
16
|
|
207
|
|
23,260
|
|
|
|
23,467
|
|
||||||||||
Non-U.S. commercial
|
14
|
|
1
|
|
—
|
|
15
|
|
82,445
|
|
|
|
82,460
|
|
||||||||||
U.S. small business commercial
|
94
|
|
69
|
|
166
|
|
329
|
|
12,073
|
|
|
|
12,402
|
|
||||||||||
Total commercial loans
|
850
|
|
254
|
|
1,472
|
|
2,576
|
|
356,173
|
|
|
|
358,749
|
|
||||||||||
Commercial loans accounted for under the fair value option
(9)
|
|
|
|
|
|
|
7,779
|
|
7,779
|
|
||||||||||||||
Total commercial
|
850
|
|
254
|
|
1,472
|
|
2,576
|
|
356,173
|
|
|
7,779
|
|
366,528
|
|
|||||||||
Total loans and leases
|
$
|
7,898
|
|
$
|
3,530
|
|
$
|
37,015
|
|
$
|
48,443
|
|
$
|
824,665
|
|
$
|
29,664
|
|
$
|
8,820
|
|
$
|
911,592
|
|
Percentage of outstandings
|
0.87
|
%
|
0.39
|
%
|
4.06
|
%
|
5.32
|
%
|
90.46
|
%
|
3.25
|
%
|
0.97
|
%
|
|
(1)
|
Home loans 30-59 days past due includes fully-insured loans of
$2.2 billion
and nonperforming loans of
$735 million
. Home loans 60-89 days past due includes fully-insured loans of
$961 million
and nonperforming loans of
$503 million
.
|
(2)
|
Home loans includes fully-insured loans of
$21.6 billion
.
|
(3)
|
Home loans includes
$6.4 billion
and direct/indirect consumer includes
$52 million
of nonperforming loans.
|
(4)
|
PCI loan amounts are shown gross of the valuation allowance.
|
(5)
|
Total outstandings includes non-U.S. residential mortgage loans of
$86 million
.
|
(6)
|
Total outstandings includes pay option loans of
$6.5 billion
and subprime loans of
$533 million
. The Corporation no longer originates these products.
|
(7)
|
Total outstandings includes dealer financial services loans of
$36.1 billion
, consumer lending loans of
$4.1 billion
, U.S. securities-based lending margin loans of
$28.2 billion
, student loans of
$4.6 billion
, non-U.S. consumer loans of
$7.4 billion
and other consumer loans of
$1.1 billion
.
|
(8)
|
Total outstandings includes consumer finance loans of
$1.4 billion
, other non-U.S. consumer loans of
$5 million
and consumer overdrafts of
$115 million
.
|
(9)
|
Consumer loans accounted for under the fair value option were residential mortgage loans of
$1.0 billion
. Commercial loans accounted for under the fair value option were U.S. commercial loans of
$2.1 billion
and non-U.S. commercial loans of
$5.7 billion
. For addition information, see
Note 16 – Fair Value Measurements
and
Note 17 – Fair Value Option
.
|
(10)
|
Total outstandings includes U.S. commercial real estate loans of
$37.6 billion
and non-U.S. commercial real estate loans of
$1.4 billion
.
|
|
December 31, 2012
|
|||||||||||||||||||||||
(Dollars in millions)
|
30-59 Days
Past Due (1) |
60-89 Days
Past Due (1) |
90 Days or
More Past Due (2) |
Total
Past Due
30 Days
or More |
Total Current
or Less Than 30 Days Past Due (3) |
Purchased
Credit - impaired (4) |
Loans
Accounted for Under the Fair Value Option |
Total
Outstandings |
||||||||||||||||
Home loans
|
|
|
|
|
|
|
|
|
||||||||||||||||
Core portfolio
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
(5)
|
$
|
2,274
|
|
$
|
806
|
|
$
|
6,227
|
|
$
|
9,307
|
|
$
|
160,809
|
|
|
|
$
|
170,116
|
|
||||
Home equity
|
273
|
|
146
|
|
591
|
|
1,010
|
|
59,841
|
|
|
|
60,851
|
|
||||||||||
Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
|
|
||||||||||||||||
Residential mortgage
(6)
|
2,939
|
|
1,715
|
|
26,728
|
|
31,382
|
|
34,004
|
|
$
|
17,571
|
|
|
82,957
|
|
||||||||
Home equity
|
607
|
|
356
|
|
1,444
|
|
2,407
|
|
36,191
|
|
8,547
|
|
|
47,145
|
|
|||||||||
Credit card and other consumer
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. credit card
|
729
|
|
582
|
|
1,437
|
|
2,748
|
|
92,087
|
|
|
|
94,835
|
|
||||||||||
Non-U.S. credit card
|
106
|
|
85
|
|
212
|
|
403
|
|
11,294
|
|
|
|
11,697
|
|
||||||||||
Direct/Indirect consumer
(7)
|
569
|
|
239
|
|
573
|
|
1,381
|
|
81,824
|
|
|
|
83,205
|
|
||||||||||
Other consumer
(8)
|
48
|
|
19
|
|
4
|
|
71
|
|
1,557
|
|
|
|
1,628
|
|
||||||||||
Total consumer loans
|
7,545
|
|
3,948
|
|
37,216
|
|
48,709
|
|
477,607
|
|
26,118
|
|
|
552,434
|
|
|||||||||
Consumer loans accounted for under the fair value option
(9)
|
|
|
|
|
|
|
$
|
1,005
|
|
1,005
|
|
|||||||||||||
Total consumer
|
7,545
|
|
3,948
|
|
37,216
|
|
48,709
|
|
477,607
|
|
26,118
|
|
1,005
|
|
553,439
|
|
||||||||
Commercial
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. commercial
|
323
|
|
133
|
|
639
|
|
1,095
|
|
196,031
|
|
|
|
197,126
|
|
||||||||||
Commercial real estate
(10)
|
79
|
|
144
|
|
983
|
|
1,206
|
|
37,431
|
|
|
|
38,637
|
|
||||||||||
Commercial lease financing
|
84
|
|
79
|
|
30
|
|
193
|
|
23,650
|
|
|
|
23,843
|
|
||||||||||
Non-U.S. commercial
|
2
|
|
—
|
|
—
|
|
2
|
|
74,182
|
|
|
|
74,184
|
|
||||||||||
U.S. small business commercial
|
101
|
|
75
|
|
168
|
|
344
|
|
12,249
|
|
|
|
12,593
|
|
||||||||||
Total commercial loans
|
589
|
|
431
|
|
1,820
|
|
2,840
|
|
343,543
|
|
|
|
346,383
|
|
||||||||||
Commercial loans accounted for under the fair value option
(9)
|
|
|
|
|
|
|
7,997
|
|
7,997
|
|
||||||||||||||
Total commercial
|
589
|
|
431
|
|
1,820
|
|
2,840
|
|
343,543
|
|
|
7,997
|
|
354,380
|
|
|||||||||
Total loans and leases
|
$
|
8,134
|
|
$
|
4,379
|
|
$
|
39,036
|
|
$
|
51,549
|
|
$
|
821,150
|
|
$
|
26,118
|
|
$
|
9,002
|
|
$
|
907,819
|
|
Percentage of outstandings
|
0.90
|
%
|
0.48
|
%
|
4.30
|
%
|
5.68
|
%
|
90.45
|
%
|
2.88
|
%
|
0.99
|
%
|
|
(1)
|
Home loans 30-59 days past due includes fully-insured loans of
$2.3 billion
and nonperforming loans of
$702 million
. Home loans 60-89 days past due includes fully-insured loans of
$1.3 billion
and nonperforming loans of
$558 million
.
|
(2)
|
Home loans includes fully-insured loans of
$22.2 billion
.
|
(3)
|
Home loans includes
$5.5 billion
and direct/indirect consumer includes
$63 million
of nonperforming loans.
|
(4)
|
PCI loan amounts are shown gross of the valuation allowance.
|
(5)
|
Total outstandings includes non-U.S. residential mortgage loans of
$93 million
.
|
(6)
|
Total outstandings includes pay option loans of
$6.7 billion
and subprime loans of
$509 million
. The Corporation no longer originates these products.
|
(7)
|
Total outstandings includes dealer financial services loans of
$35.9 billion
, consumer lending loans of
$4.7 billion
, U.S. securities-based lending margin loans of
$28.3 billion
, student loans of
$4.8 billion
, non-U.S. consumer loans of
$8.3 billion
and other consumer loans of
$1.2 billion
.
|
(8)
|
Total outstandings includes consumer finance loans of
$1.4 billion
, other non-U.S. consumer loans of
$5 million
and consumer overdrafts of
$177 million
.
|
(9)
|
Consumer loans accounted for under the fair value option were residential mortgage loans of
$1.0 billion
. Commercial loans accounted for under the fair value option were U.S. commercial loans of
$2.3 billion
and non-U.S. commercial loans of
$5.7 billion
. For additional information, see
Note 16 – Fair Value Measurements
and
Note 17 – Fair Value Option
.
|
(10)
|
Total outstandings includes U.S. commercial real estate loans of
$37.2 billion
and non-U.S. commercial real estate loans of
$1.5 billion
.
|
Nonperforming Loans and Leases
|
Credit Quality
|
|
|
|
|
|
|
|
||||||||
|
Nonperforming Loans and Leases
(1)
|
|
Accruing Past Due 90 Days or More
|
||||||||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
||||||||
Home loans
|
|
|
|
|
|
|
|
||||||||
Core portfolio
|
|
|
|
|
|
|
|
||||||||
Residential mortgage
(2)
|
$
|
3,407
|
|
|
$
|
3,190
|
|
|
$
|
4,391
|
|
|
$
|
3,984
|
|
Home equity
|
1,302
|
|
|
1,265
|
|
|
—
|
|
|
—
|
|
||||
Legacy Assets & Servicing portfolio
|
|
|
|
|
|
|
|
||||||||
Residential mortgage
(2)
|
11,595
|
|
|
11,866
|
|
|
17,226
|
|
|
18,173
|
|
||||
Home equity
|
2,893
|
|
|
3,016
|
|
|
—
|
|
|
—
|
|
||||
Credit card and other consumer
|
|
|
|
|
|
|
|
||||||||
U.S. credit card
|
n/a
|
|
|
n/a
|
|
|
1,360
|
|
|
1,437
|
|
||||
Non-U.S. credit card
|
n/a
|
|
|
n/a
|
|
|
181
|
|
|
212
|
|
||||
Direct/Indirect consumer
|
84
|
|
|
92
|
|
|
494
|
|
|
545
|
|
||||
Other consumer
|
1
|
|
|
2
|
|
|
1
|
|
|
2
|
|
||||
Total consumer
|
19,282
|
|
|
19,431
|
|
|
23,653
|
|
|
24,353
|
|
||||
Commercial
|
|
|
|
|
|
|
|
||||||||
U.S. commercial
|
1,354
|
|
|
1,484
|
|
|
23
|
|
|
65
|
|
||||
Commercial real estate
|
1,139
|
|
|
1,513
|
|
|
11
|
|
|
29
|
|
||||
Commercial lease financing
|
19
|
|
|
44
|
|
|
10
|
|
|
15
|
|
||||
Non-U.S. commercial
|
112
|
|
|
68
|
|
|
—
|
|
|
—
|
|
||||
U.S. small business commercial
|
110
|
|
|
115
|
|
|
116
|
|
|
120
|
|
||||
Total commercial
|
2,734
|
|
|
3,224
|
|
|
160
|
|
|
229
|
|
||||
Total loans and leases
|
$
|
22,016
|
|
|
$
|
22,655
|
|
|
$
|
23,813
|
|
|
$
|
24,582
|
|
(1)
|
Nonperforming loan balances do not include nonaccruing TDRs removed from the PCI loan portfolio prior to January 1, 2010 of
$512 million
and
$521 million
at
March 31, 2013
and
December 31, 2012
.
|
(2)
|
Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At
March 31, 2013
and
December 31, 2012
, residential mortgage includes
$17.0 billion
and
$17.8 billion
of loans on which interest has been curtailed by the FHA, and therefore are no longer accruing interest, although principal is still insured, and
$4.6 billion
and
$4.4 billion
of loans on which interest is still accruing.
|
Credit Quality Indicators
|
Home Loans – Credit Quality Indicators
(1)
|
|
|
|
|
|
|
||||||||||||
|
March 31, 2013
|
|||||||||||||||||
(Dollars in millions)
|
Core Portfolio Residential Mortgage
(2)
|
Legacy Assets & Servicing Residential Mortgage
(2)
|
Residential
Mortgage PCI (3) |
Core Portfolio Home Equity
(2)
|
Legacy Assets & Servicing Home Equity
(2)
|
Home
Equity PCI
|
||||||||||||
Refreshed LTV
(4)
|
|
|
|
|
|
|
||||||||||||
Less than 90 percent
|
$
|
84,300
|
|
$
|
22,125
|
|
$
|
11,877
|
|
$
|
44,202
|
|
$
|
15,541
|
|
$
|
1,980
|
|
Greater than 90 percent but less than 100 percent
|
8,368
|
|
5,013
|
|
3,142
|
|
5,606
|
|
4,357
|
|
736
|
|
||||||
Greater than 100 percent
|
10,182
|
|
13,979
|
|
6,985
|
|
9,150
|
|
16,702
|
|
4,944
|
|
||||||
Fully-insured loans
(5)
|
67,583
|
|
23,370
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total home loans
|
$
|
170,433
|
|
$
|
64,487
|
|
$
|
22,004
|
|
$
|
58,958
|
|
$
|
36,600
|
|
$
|
7,660
|
|
|
|
|
|
|
|
|
||||||||||||
Refreshed FICO score
|
|
|
|
|
|
|
||||||||||||
Less than 620
|
$
|
6,350
|
|
$
|
13,567
|
|
$
|
12,421
|
|
$
|
2,555
|
|
$
|
5,035
|
|
$
|
1,388
|
|
Greater than or equal to 620 and less than 680
|
8,620
|
|
6,526
|
|
3,490
|
|
4,416
|
|
5,600
|
|
1,342
|
|
||||||
Greater than or equal to 680 and less than 740
|
24,639
|
|
8,587
|
|
3,192
|
|
12,360
|
|
9,978
|
|
2,181
|
|
||||||
Greater than or equal to 740
|
63,241
|
|
12,437
|
|
2,901
|
|
39,627
|
|
15,987
|
|
2,749
|
|
||||||
Fully-insured loans
(5)
|
67,583
|
|
23,370
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total home loans
|
$
|
170,433
|
|
$
|
64,487
|
|
$
|
22,004
|
|
$
|
58,958
|
|
$
|
36,600
|
|
$
|
7,660
|
|
(1)
|
Excludes loans accounted for under the fair value option of
$1.0 billion
.
|
(2)
|
Excludes PCI loans.
|
(3)
|
Includes
$5.9 billion
of pay option loans and
$340 million
of subprime loans. The Corporation no longer originates these products.
|
(4)
|
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
|
(5)
|
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.
|
(1)
|
80 percent
of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.
|
(2)
|
Other internal credit metrics may include delinquency status, geography or other factors.
|
(3)
|
Direct/indirect consumer includes
$35.6 billion
of securities-based lending which is overcollateralized and therefore has minimal credit risk and
$4.6 billion
of loans the Corporation no longer originates.
|
(4)
|
Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At
March 31, 2013
,
97 percent
of this portfolio was current or less than 30 days past due,
one percent
was 30-89 days past due and
two percent
was 90 days or more past due.
|
Commercial – Credit Quality Indicators
(1)
|
|||||||||||||||||||
|
March 31, 2013
|
||||||||||||||||||
(Dollars in millions)
|
U.S.
Commercial |
|
Commercial
Real Estate
|
|
Commercial
Lease Financing |
|
Non-U.S.
Commercial |
|
U.S. Small
Business Commercial (2) |
||||||||||
Risk ratings
|
|
|
|
|
|
|
|
|
|
||||||||||
Pass rated
|
$
|
193,755
|
|
|
$
|
36,116
|
|
|
$
|
22,510
|
|
|
$
|
81,089
|
|
|
$
|
1,516
|
|
Reservable criticized
|
7,605
|
|
|
2,944
|
|
|
957
|
|
|
1,371
|
|
|
542
|
|
|||||
Refreshed FICO score
(3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Less than 620
|
|
|
|
|
|
|
|
|
375
|
|
|||||||||
Greater than or equal to 620 and less than 680
|
|
|
|
|
|
|
|
|
569
|
|
|||||||||
Greater than or equal to 680 and less than 740
|
|
|
|
|
|
|
|
|
1,553
|
|
|||||||||
Greater than or equal to 740
|
|
|
|
|
|
|
|
|
2,504
|
|
|||||||||
Other internal credit metrics
(3, 4)
|
|
|
|
|
|
|
|
|
5,343
|
|
|||||||||
Total commercial
|
$
|
201,360
|
|
|
$
|
39,060
|
|
|
$
|
23,467
|
|
|
$
|
82,460
|
|
|
$
|
12,402
|
|
(1)
|
Excludes loans accounted for under the fair value option of
$7.8 billion
.
|
(2)
|
U.S. small business commercial includes
$361 million
of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At
March 31, 2013
,
99 percent
of the balances where internal credit metrics are used were current or less than 30 days past due.
|
(3)
|
Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
|
(4)
|
Other internal credit metrics may include delinquency status, application scores, geography or other factors.
|
Home Loans – Credit Quality Indicators
(1)
|
|
|
|
|
|
|
||||||||||||
|
December 31, 2012
|
|||||||||||||||||
(Dollars in millions)
|
Core Portfolio
Residential Mortgage (2) |
Legacy Assets & Servicing
Residential Mortgage (2) |
Residential
Mortgage PCI (3) |
Core Portfolio Home Equity
(2)
|
Legacy Assets & Servicing Home
Equity (2) |
Home
Equity PCI
|
||||||||||||
Refreshed LTV
(4)
|
|
|
|
|
|
|
||||||||||||
Less than 90 percent
|
$
|
80,585
|
|
$
|
20,622
|
|
$
|
8,604
|
|
$
|
44,971
|
|
$
|
15,907
|
|
$
|
2,050
|
|
Greater than 90 percent but less than 100 percent
|
8,891
|
|
5,103
|
|
2,384
|
|
5,825
|
|
4,507
|
|
788
|
|
||||||
Greater than 100 percent
|
12,984
|
|
16,463
|
|
6,583
|
|
10,055
|
|
18,184
|
|
5,709
|
|
||||||
Fully-insured loans
(5)
|
67,656
|
|
23,198
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total home loans
|
$
|
170,116
|
|
$
|
65,386
|
|
$
|
17,571
|
|
$
|
60,851
|
|
$
|
38,598
|
|
$
|
8,547
|
|
|
|
|
|
|
|
|
||||||||||||
Refreshed FICO score
|
|
|
|
|
|
|
||||||||||||
Less than 620
|
$
|
6,366
|
|
$
|
14,325
|
|
$
|
8,711
|
|
$
|
2,586
|
|
$
|
5,408
|
|
$
|
1,930
|
|
Greater than or equal to 620 and less than 680
|
8,561
|
|
6,165
|
|
2,740
|
|
4,500
|
|
5,885
|
|
1,500
|
|
||||||
Greater than or equal to 680 and less than 740
|
25,141
|
|
8,618
|
|
2,995
|
|
12,625
|
|
10,387
|
|
2,278
|
|
||||||
Greater than or equal to 740
|
62,392
|
|
13,080
|
|
3,125
|
|
41,140
|
|
16,918
|
|
2,839
|
|
||||||
Fully-insured loans
(5)
|
67,656
|
|
23,198
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||
Total home loans
|
$
|
170,116
|
|
$
|
65,386
|
|
$
|
17,571
|
|
$
|
60,851
|
|
$
|
38,598
|
|
$
|
8,547
|
|
(1)
|
Excludes loans accounted for under the fair value option of
$1.0 billion
.
|
(2)
|
Excludes PCI loans.
|
(3)
|
Includes
$6.1 billion
of pay option loans and
$348 million
of subprime loans. The Corporation no longer originates these products.
|
(4)
|
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
|
(5)
|
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.
|
(1)
|
87 percent
of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.
|
(2)
|
Other internal credit metrics may include delinquency status, geography or other factors.
|
(3)
|
Direct/indirect consumer includes
$36.5 billion
of securities-based lending which is overcollateralized and therefore has minimal credit risk and
$4.8 billion
of loans the Corporation no longer originates.
|
(4)
|
Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At
December 31, 2012
,
97 percent
of this portfolio was current or less than 30 days past due,
one percent
was 30-89 days past due and
two percent
was 90 days or more past due.
|
Commercial – Credit Quality Indicators
(1)
|
|||||||||||||||||||
|
December 31, 2012
|
||||||||||||||||||
(Dollars in millions)
|
U.S.
Commercial |
|
Commercial Real Estate
|
|
Commercial
Lease Financing |
|
Non-U.S.
Commercial |
|
U.S. Small
Business Commercial (2) |
||||||||||
Risk ratings
|
|
|
|
|
|
|
|
|
|
||||||||||
Pass rated
|
$
|
189,602
|
|
|
$
|
34,968
|
|
|
$
|
22,874
|
|
|
$
|
72,688
|
|
|
$
|
1,690
|
|
Reservable criticized
|
7,524
|
|
|
3,669
|
|
|
969
|
|
|
1,496
|
|
|
573
|
|
|||||
Refreshed FICO score
(3)
|
|
|
|
|
|
|
|
|
|
||||||||||
Less than 620
|
|
|
|
|
|
|
|
|
400
|
|
|||||||||
Greater than or equal to 620 and less than 680
|
|
|
|
|
|
|
|
|
580
|
|
|||||||||
Greater than or equal to 680 and less than 740
|
|
|
|
|
|
|
|
|
1,553
|
|
|||||||||
Greater than or equal to 740
|
|
|
|
|
|
|
|
|
2,496
|
|
|||||||||
Other internal credit metrics
(3, 4)
|
|
|
|
|
|
|
|
|
5,301
|
|
|||||||||
Total commercial
|
$
|
197,126
|
|
|
$
|
38,637
|
|
|
$
|
23,843
|
|
|
$
|
74,184
|
|
|
$
|
12,593
|
|
(1)
|
Excludes loans accounted for under the fair value option of
$8.0 billion
.
|
(2)
|
U.S. small business commercial includes
$366 million
of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At
December 31, 2012
,
98 percent
of the balances where internal credit metrics are used were current or less than 30 days past due.
|
(3)
|
Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
|
(4)
|
Other internal credit metrics may include delinquency status, application scores, geography or other factors.
|
Impaired Loans and Troubled Debt Restructurings
|
Impaired Loans – Home Loans
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
Three Months Ended March 31
|
||||||||||||||||||||||||
|
March 31, 2013
|
|
2013
|
|
2012
|
||||||||||||||||||||||
(Dollars in millions)
|
Unpaid
Principal Balance |
|
Carrying
Value |
|
Related
Allowance |
|
Average
Carrying Value |
|
Interest
Income Recognized (1) |
|
Average
Carrying Value |
|
Interest
Income Recognized (1) |
||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
$
|
22,130
|
|
|
$
|
16,821
|
|
|
n/a
|
|
|
$
|
15,894
|
|
|
$
|
144
|
|
|
$
|
8,704
|
|
|
$
|
75
|
|
|
Home equity
|
2,796
|
|
|
1,164
|
|
|
n/a
|
|
|
1,134
|
|
|
17
|
|
|
506
|
|
|
9
|
|
|||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
$
|
15,698
|
|
|
$
|
14,641
|
|
|
$
|
1,425
|
|
|
$
|
13,900
|
|
|
$
|
154
|
|
|
$
|
11,174
|
|
|
$
|
100
|
|
Home equity
|
1,168
|
|
|
955
|
|
|
370
|
|
|
988
|
|
|
11
|
|
|
1,255
|
|
|
9
|
|
|||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
$
|
37,828
|
|
|
$
|
31,462
|
|
|
$
|
1,425
|
|
|
$
|
29,794
|
|
|
$
|
298
|
|
|
$
|
19,878
|
|
|
$
|
175
|
|
Home equity
|
3,964
|
|
|
2,119
|
|
|
370
|
|
|
2,122
|
|
|
28
|
|
|
1,761
|
|
|
18
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
December 31, 2012
|
|
|
|
|
|
|
|
|
||||||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
$
|
20,226
|
|
|
$
|
14,967
|
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|||||||||
Home equity
|
2,624
|
|
|
1,103
|
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|||||||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
$
|
14,223
|
|
|
$
|
13,158
|
|
|
$
|
1,252
|
|
|
|
|
|
|
|
|
|
||||||||
Home equity
|
1,256
|
|
|
1,022
|
|
|
448
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Residential mortgage
|
$
|
34,449
|
|
|
$
|
28,125
|
|
|
$
|
1,252
|
|
|
|
|
|
|
|
|
|
||||||||
Home equity
|
3,880
|
|
|
2,125
|
|
|
448
|
|
|
|
|
|
|
|
|
|
(1)
|
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
|
(1)
|
TDRs entered into during the
three months ended March 31, 2013
include residential mortgage modifications with principal forgiveness of
$219 million
. For the
three months ended March 31, 2012
, the principal forgiveness amount was not significant.
|
Home Loans – Modification Programs
|
|||||||||||
|
TDRs Entered into During the
Three Months Ended March 31, 2013
|
||||||||||
(Dollars in millions)
|
Residential Mortgage
|
|
Home
Equity
|
|
Total Carrying Value
|
||||||
Modifications under government programs
|
|
|
|
|
|
||||||
Contractual interest rate reduction
|
$
|
626
|
|
|
$
|
12
|
|
|
$
|
638
|
|
Principal and/or interest forbearance
|
4
|
|
|
9
|
|
|
13
|
|
|||
Other modifications
(1)
|
46
|
|
|
—
|
|
|
46
|
|
|||
Total modifications under government programs
|
676
|
|
|
21
|
|
|
697
|
|
|||
|
|
|
|
|
|
||||||
Modifications under proprietary programs
|
|
|
|
|
|
||||||
Contractual interest rate reduction
|
1,326
|
|
|
24
|
|
|
1,350
|
|
|||
Capitalization of past due amounts
|
27
|
|
|
—
|
|
|
27
|
|
|||
Principal and/or interest forbearance
|
81
|
|
|
3
|
|
|
84
|
|
|||
Other modifications
(1)
|
28
|
|
|
—
|
|
|
28
|
|
|||
Total modifications under proprietary programs
|
1,462
|
|
|
27
|
|
|
1,489
|
|
|||
Trial modifications
|
2,103
|
|
|
31
|
|
|
2,134
|
|
|||
Loans discharged in Chapter 7 bankruptcy
(2)
|
602
|
|
|
75
|
|
|
677
|
|
|||
Total modifications
|
$
|
4,843
|
|
|
$
|
154
|
|
|
$
|
4,997
|
|
|
|
|
|
|
|
||||||
|
TDRs Entered into During the
Three Months Ended March 31, 2012
|
||||||||||
Modifications under government programs
|
|
|
|
|
|
||||||
Contractual interest rate reduction
|
$
|
39
|
|
|
$
|
31
|
|
|
$
|
70
|
|
Principal and/or interest forbearance
|
1
|
|
|
10
|
|
|
11
|
|
|||
Other modifications
(1)
|
16
|
|
|
—
|
|
|
16
|
|
|||
Total modifications under government programs
|
56
|
|
|
41
|
|
|
97
|
|
|||
|
|
|
|
|
|
||||||
Modifications under proprietary programs
|
|
|
|
|
|
||||||
Contractual interest rate reduction
|
376
|
|
|
16
|
|
|
392
|
|
|||
Capitalization of past due amounts
|
12
|
|
|
—
|
|
|
12
|
|
|||
Principal and/or interest forbearance
|
93
|
|
|
7
|
|
|
100
|
|
|||
Other modifications
(1)
|
53
|
|
|
2
|
|
|
55
|
|
|||
Total modifications under proprietary programs
|
534
|
|
|
25
|
|
|
559
|
|
|||
Trial modifications
|
792
|
|
|
44
|
|
|
836
|
|
|||
Total modifications
|
$
|
1,382
|
|
|
$
|
110
|
|
|
$
|
1,492
|
|
(1)
|
Includes other modifications such as term or payment extensions and repayment plans.
|
(2)
|
Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs in accordance with regulatory guidance issued in the third quarter of 2012. For the
three months ended March 31, 2013
, residential mortgage loans of
$371 million
, or
55 percent
of loans discharged in Chapter 7 bankruptcy were current or less than 60 days past due.
|
|
|
|
|
|
|
(1)
|
Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs in accordance with regulatory guidance issued in the third quarter of 2012.
|
(1)
|
Includes accrued interest and fees.
|
(2)
|
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
|
Credit Card and Other Consumer – Renegotiated TDRs by Program Type
|
||||||||||||||||||||||||||||||||
|
Internal Programs
|
|
External Programs
|
|
Other
|
|
Total
|
|
Percent of Balances Current or
Less Than 30 Days Past Due |
|||||||||||||||||||||||
(Dollars in millions)
|
March 31
2013 |
December 31
2012 |
|
March 31
2013 |
December 31
2012 |
|
March 31
2013 |
December 31
2012 |
|
March 31
2013 |
December 31
2012 |
|
March 31
2013 |
December 31
2012 |
||||||||||||||||||
U.S. credit card
|
$
|
1,541
|
|
$
|
1,887
|
|
|
$
|
848
|
|
$
|
953
|
|
|
$
|
27
|
|
$
|
31
|
|
|
$
|
2,416
|
|
$
|
2,871
|
|
|
82.03
|
%
|
81.48
|
%
|
Non-U.S. credit card
|
87
|
|
99
|
|
|
33
|
|
38
|
|
|
161
|
|
179
|
|
|
281
|
|
316
|
|
|
45.57
|
|
43.71
|
|
||||||||
Direct/Indirect consumer
|
332
|
|
405
|
|
|
190
|
|
225
|
|
|
53
|
|
64
|
|
|
575
|
|
694
|
|
|
84.07
|
|
83.11
|
|
||||||||
Total renegotiated TDRs
|
$
|
1,960
|
|
$
|
2,391
|
|
|
$
|
1,071
|
|
$
|
1,216
|
|
|
$
|
241
|
|
$
|
274
|
|
|
$
|
3,272
|
|
$
|
3,881
|
|
|
79.26
|
|
78.69
|
|
(1)
|
Includes accrued interest and fees.
|
Impaired Loans – Commercial
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
|
Three Months Ended March 31
|
||||||||||||||||||||||||
|
March 31, 2013
|
|
2013
|
|
2012
|
||||||||||||||||||||||
(Dollars in millions)
|
Unpaid
Principal Balance |
|
Carrying
Value |
|
Related
Allowance |
|
Average
Carrying Value |
|
Interest
Income Recognized (1) |
|
Average
Carrying Value |
|
Interest
Income Recognized (1) |
||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
$
|
1,080
|
|
|
$
|
1,004
|
|
|
n/a
|
|
|
$
|
1,057
|
|
|
$
|
6
|
|
|
$
|
1,035
|
|
|
$
|
8
|
|
|
Commercial real estate
|
833
|
|
|
760
|
|
|
n/a
|
|
|
831
|
|
|
4
|
|
|
1,973
|
|
|
4
|
|
|||||||
Non-U.S. commercial
|
136
|
|
|
136
|
|
|
n/a
|
|
|
128
|
|
|
2
|
|
|
114
|
|
|
—
|
|
|||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
$
|
1,608
|
|
|
$
|
1,107
|
|
|
$
|
158
|
|
|
$
|
1,116
|
|
|
$
|
8
|
|
|
$
|
1,920
|
|
|
$
|
11
|
|
Commercial real estate
|
1,534
|
|
|
1,017
|
|
|
152
|
|
|
1,137
|
|
|
5
|
|
|
2,256
|
|
|
6
|
|
|||||||
Non-U.S. commercial
|
252
|
|
|
58
|
|
|
18
|
|
|
26
|
|
|
1
|
|
|
45
|
|
|
—
|
|
|||||||
U.S. small business commercial
(2)
|
290
|
|
|
277
|
|
|
80
|
|
|
288
|
|
|
2
|
|
|
472
|
|
|
4
|
|
|||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
$
|
2,688
|
|
|
$
|
2,111
|
|
|
$
|
158
|
|
|
$
|
2,173
|
|
|
$
|
14
|
|
|
$
|
2,955
|
|
|
$
|
19
|
|
Commercial real estate
|
2,367
|
|
|
1,777
|
|
|
152
|
|
|
1,968
|
|
|
9
|
|
|
4,229
|
|
|
10
|
|
|||||||
Non-U.S. commercial
|
388
|
|
|
194
|
|
|
18
|
|
|
154
|
|
|
3
|
|
|
159
|
|
|
—
|
|
|||||||
U.S. small business commercial
(2)
|
290
|
|
|
277
|
|
|
80
|
|
|
288
|
|
|
2
|
|
|
472
|
|
|
4
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
|
December 31, 2012
|
|
|
|
|
|
|
|
|
||||||||||||||||||
With no recorded allowance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
$
|
1,220
|
|
|
$
|
1,109
|
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial real estate
|
1,003
|
|
|
902
|
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. commercial
|
240
|
|
|
120
|
|
|
n/a
|
|
|
|
|
|
|
|
|
|
|||||||||||
With an allowance recorded
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
$
|
1,782
|
|
|
$
|
1,138
|
|
|
$
|
159
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
2,287
|
|
|
1,262
|
|
|
201
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. commercial
|
280
|
|
|
33
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. small business commercial
(2)
|
361
|
|
|
317
|
|
|
97
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
U.S. commercial
|
$
|
3,002
|
|
|
$
|
2,247
|
|
|
$
|
159
|
|
|
|
|
|
|
|
|
|
||||||||
Commercial real estate
|
3,290
|
|
|
2,164
|
|
|
201
|
|
|
|
|
|
|
|
|
|
|||||||||||
Non-U.S. commercial
|
520
|
|
|
153
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|||||||||||
U.S. small business commercial
(2)
|
361
|
|
|
317
|
|
|
97
|
|
|
|
|
|
|
|
|
|
(1)
|
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
|
(2)
|
Includes U.S. small business commercial renegotiated TDR loans and related allowance.
|
(1)
|
U.S. small business commercial TDRs are comprised of renegotiated small business card loans.
|
Purchased Credit-impaired Loans
|
Purchased Loans at Acquisition Date
|
|||
(Dollars in millions)
|
|
||
Contractually required payments including interest
|
$
|
8,274
|
|
Less: Nonaccretable difference
|
2,159
|
|
|
Cash flows expected to be collected
(1)
|
6,115
|
|
|
Less: Accretable yield
|
1,125
|
|
|
Fair value of loans acquired
|
$
|
4,990
|
|
(1)
|
Represents undiscounted expected principal and interest cash flows at acquisition.
|
Rollforward of Accretable Yield
|
|||
(Dollars in millions)
|
|
||
Accretable yield, January 1, 2012
|
$
|
4,990
|
|
Accretion
|
(1,034
|
)
|
|
Disposals/transfers
|
(109
|
)
|
|
Reclassifications from nonaccretable difference
|
797
|
|
|
Accretable yield, December 31, 2012
|
4,644
|
|
|
Accretion
|
(298
|
)
|
|
Loans purchased
|
1,125
|
|
|
Disposals/transfers
|
(103
|
)
|
|
Reclassifications from nonaccretable difference
|
661
|
|
|
Accretable yield, March 31, 2013
|
$
|
6,029
|
|
Loans Held-for-sale
|
NOTE 6 – Allowance for Credit Losses
|
|
Three Months Ended March 31, 2013
|
||||||||||||||
(Dollars in millions)
|
Home Loans
|
|
Credit Card
and Other Consumer |
|
Commercial
|
|
Total
|
||||||||
Allowance for loan and lease losses, January 1
|
$
|
14,933
|
|
|
$
|
6,140
|
|
|
$
|
3,106
|
|
|
$
|
24,179
|
|
Loans and leases charged off
|
(1,193
|
)
|
|
(1,553
|
)
|
|
(316
|
)
|
|
(3,062
|
)
|
||||
Recoveries of loans and leases previously charged off
|
126
|
|
|
318
|
|
|
101
|
|
|
545
|
|
||||
Net charge-offs
|
(1,067
|
)
|
|
(1,235
|
)
|
|
(215
|
)
|
|
(2,517
|
)
|
||||
Provision for loan and lease losses
|
484
|
|
|
1,007
|
|
|
240
|
|
|
1,731
|
|
||||
Write-offs of PCI loans
|
(839
|
)
|
|
—
|
|
|
—
|
|
|
(839
|
)
|
||||
Other
(1)
|
(73
|
)
|
|
(38
|
)
|
|
(2
|
)
|
|
(113
|
)
|
||||
Allowance for loan and lease losses, March 31
|
13,438
|
|
|
5,874
|
|
|
3,129
|
|
|
22,441
|
|
||||
Reserve for unfunded lending commitments, January 1
|
—
|
|
|
—
|
|
|
513
|
|
|
513
|
|
||||
Provision for unfunded lending commitments
|
—
|
|
|
—
|
|
|
(18
|
)
|
|
(18
|
)
|
||||
Other
(2)
|
—
|
|
|
—
|
|
|
(9
|
)
|
|
(9
|
)
|
||||
Reserve for unfunded lending commitments, March 31
|
—
|
|
|
—
|
|
|
486
|
|
|
486
|
|
||||
Allowance for credit losses, March 31
|
$
|
13,438
|
|
|
$
|
5,874
|
|
|
$
|
3,615
|
|
|
$
|
22,927
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended March 31, 2012
|
||||||||||||||
Allowance for loan and lease losses, January 1
|
$
|
21,079
|
|
|
$
|
8,569
|
|
|
$
|
4,135
|
|
|
$
|
33,783
|
|
Loans and leases charged off
|
(2,007
|
)
|
|
(2,242
|
)
|
|
(531
|
)
|
|
(4,780
|
)
|
||||
Recoveries of loans and leases previously charged off
|
136
|
|
|
426
|
|
|
162
|
|
|
724
|
|
||||
Net charge-offs
|
(1,871
|
)
|
|
(1,816
|
)
|
|
(369
|
)
|
|
(4,056
|
)
|
||||
Provision for loan and lease losses
|
1,765
|
|
|
879
|
|
|
(187
|
)
|
|
2,457
|
|
||||
Other
(1)
|
—
|
|
|
32
|
|
|
(5
|
)
|
|
27
|
|
||||
Allowance for loan and lease losses, March 31
|
20,973
|
|
|
7,664
|
|
|
3,574
|
|
|
32,211
|
|
||||
Reserve for unfunded lending commitments, January 1
|
—
|
|
|
—
|
|
|
714
|
|
|
714
|
|
||||
Provision for unfunded lending commitments
|
—
|
|
|
—
|
|
|
(39
|
)
|
|
(39
|
)
|
||||
Other
(2)
|
—
|
|
|
—
|
|
|
(24
|
)
|
|
(24
|
)
|
||||
Reserve for unfunded lending commitments, March 31
|
—
|
|
|
—
|
|
|
651
|
|
|
651
|
|
||||
Allowance for credit losses, March 31
|
$
|
20,973
|
|
|
$
|
7,664
|
|
|
$
|
4,225
|
|
|
$
|
32,862
|
|
(1)
|
Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments.
|
(2)
|
Primarily represents accretion of the Merrill Lynch purchase accounting adjustment.
|
Allowance and Carrying Value by Portfolio Segment
|
|
|
|
|
|
|
|
||||||||
|
March 31, 2013
|
||||||||||||||
(Dollars in millions)
|
Home Loans
|
|
Credit Card
and Other Consumer |
|
Commercial
|
|
Total
|
||||||||
Impaired loans and troubled debt restructurings
(1)
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
(2)
|
$
|
1,795
|
|
|
$
|
903
|
|
|
$
|
408
|
|
|
$
|
3,106
|
|
Carrying value
(3)
|
33,581
|
|
|
3,272
|
|
|
4,359
|
|
|
41,212
|
|
||||
Allowance as a percentage of carrying value
|
5.35
|
%
|
|
27.60
|
%
|
|
9.36
|
%
|
|
7.54
|
%
|
||||
Loans collectively evaluated for impairment
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
|
$
|
7,153
|
|
|
$
|
4,971
|
|
|
$
|
2,721
|
|
|
$
|
14,845
|
|
Carrying value
(3, 4)
|
296,897
|
|
|
180,609
|
|
|
354,390
|
|
|
831,896
|
|
||||
Allowance as a percentage of carrying value
(4)
|
2.41
|
%
|
|
2.75
|
%
|
|
0.77
|
%
|
|
1.78
|
%
|
||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Valuation allowance
|
$
|
4,490
|
|
|
n/a
|
|
|
n/a
|
|
|
$
|
4,490
|
|
||
Carrying value gross of valuation allowance
|
29,664
|
|
|
n/a
|
|
|
n/a
|
|
|
29,664
|
|
||||
Valuation allowance as a percentage of carrying value
|
15.14
|
%
|
|
n/a
|
|
|
n/a
|
|
|
15.14
|
%
|
||||
Total
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
|
$
|
13,438
|
|
|
$
|
5,874
|
|
|
$
|
3,129
|
|
|
$
|
22,441
|
|
Carrying value
(3, 4)
|
360,142
|
|
|
183,881
|
|
|
358,749
|
|
|
902,772
|
|
||||
Allowance as a percentage of carrying value
(4)
|
3.73
|
%
|
|
3.19
|
%
|
|
0.87
|
%
|
|
2.49
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
|
December 31, 2012
|
||||||||||||||
Impaired loans and troubled debt restructurings
(1)
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
(2)
|
$
|
1,700
|
|
|
$
|
1,127
|
|
|
$
|
475
|
|
|
$
|
3,302
|
|
Carrying value
(3)
|
30,250
|
|
|
3,881
|
|
|
4,881
|
|
|
39,012
|
|
||||
Allowance as a percentage of carrying value
|
5.62
|
%
|
|
29.04
|
%
|
|
9.74
|
%
|
|
8.46
|
%
|
||||
Loans collectively evaluated for impairment
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
|
$
|
7,697
|
|
|
$
|
5,013
|
|
|
$
|
2,631
|
|
|
$
|
15,341
|
|
Carrying value
(3, 4)
|
304,701
|
|
|
187,484
|
|
|
341,502
|
|
|
833,687
|
|
||||
Allowance as a percentage of carrying value
(4)
|
2.53
|
%
|
|
2.67
|
%
|
|
0.77
|
%
|
|
1.84
|
%
|
||||
Purchased credit-impaired loans
|
|
|
|
|
|
|
|
||||||||
Valuation allowance
|
$
|
5,536
|
|
|
n/a
|
|
|
n/a
|
|
|
$
|
5,536
|
|
||
Carrying value gross of valuation allowance
|
26,118
|
|
|
n/a
|
|
|
n/a
|
|
|
26,118
|
|
||||
Valuation allowance as a percentage of carrying value
|
21.20
|
%
|
|
n/a
|
|
|
n/a
|
|
|
21.20
|
%
|
||||
Total
|
|
|
|
|
|
|
|
||||||||
Allowance for loan and lease losses
|
$
|
14,933
|
|
|
$
|
6,140
|
|
|
$
|
3,106
|
|
|
$
|
24,179
|
|
Carrying value
(3, 4)
|
361,069
|
|
|
191,365
|
|
|
346,383
|
|
|
898,817
|
|
||||
Allowance as a percentage of carrying value
(4)
|
4.14
|
%
|
|
3.21
|
%
|
|
0.90
|
%
|
|
2.69
|
%
|
(1)
|
Impaired loans include nonperforming commercial loans and all TDRs, including both commercial and consumer TDRs. Impaired loans exclude nonperforming consumer loans unless they are TDRs, and all consumer and commercial loans accounted for under the fair value option.
|
(2)
|
Commercial impaired allowance for loan and lease losses includes
$80 million
and
$97 million
of renegotiated TDR loans related to U.S. small business commercial at
March 31, 2013
and
December 31, 2012
.
|
(3)
|
Amounts are presented gross of the allowance for loan and lease losses.
|
(4)
|
Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of
$8.8 billion
and
$9.0 billion
at
March 31, 2013
and
December 31, 2012
.
|
NOTE 7 – Securitizations and Other Variable Interest Entities
|
Mortgage-related Securitizations
|
First-lien Mortgage Securitizations
|
|
|
|||||||||||
|
Three Months Ended March 31
|
||||||||||||
|
Residential
Mortgage - Agency
|
|
Commercial Mortgage
|
||||||||||
(Dollars in millions)
|
2013
|
2012
|
|
2013
|
2012
|
||||||||
Cash proceeds from new securitizations
(1)
|
$
|
12,013
|
|
$
|
6,338
|
|
|
$
|
—
|
|
$
|
325
|
|
Gain (loss) on securitizations
(2)
|
29
|
|
(17
|
)
|
|
—
|
|
—
|
|
(1)
|
The Corporation sells residential mortgage loans to GSEs in the normal course of business and receives MBS in exchange which may then be sold into the market to third-party investors for cash proceeds.
|
(2)
|
Substantially all of the first-lien residential mortgage loans securitized are initially classified as LHFS and accounted for under the fair value option. As such, gains are recognized on these LHFS prior to securitization. The Corporation recognized
$613 million
and
$319 million
of gains, net of hedges, on loans securitized during the
three months ended March 31, 2013
and
2012
.
|
First-lien Mortgage VIEs
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
|
Residential Mortgage
|
|
|
|||||||||||||||||||||||||||||||
|
|
|
|
Non-agency
|
|
|
||||||||||||||||||||||||||||
|
Agency
|
|
Prime
|
|
Subprime
|
|
Alt-A
|
|
Commercial Mortgage
|
|||||||||||||||||||||||||
(Dollars in millions)
|
March 31
2013 |
December 31
2012 |
|
March 31
2013 |
December 31
2012 |
|
March 31
2013 |
December 31
2012 |
|
March 31
2013 |
December 31
2012 |
|
March 31
2013 |
December 31
2012 |
||||||||||||||||||||
Unconsolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Maximum loss exposure
(1)
|
$
|
26,834
|
|
$
|
28,591
|
|
|
$
|
1,926
|
|
$
|
2,038
|
|
|
$
|
434
|
|
$
|
410
|
|
|
$
|
366
|
|
$
|
367
|
|
|
$
|
682
|
|
$
|
702
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Senior securities held
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Trading account assets
|
$
|
968
|
|
$
|
619
|
|
|
$
|
12
|
|
$
|
16
|
|
|
$
|
36
|
|
$
|
14
|
|
|
$
|
1
|
|
$
|
—
|
|
|
$
|
5
|
|
$
|
12
|
|
Debt securities carried at fair value
|
25,192
|
|
26,421
|
|
|
1,302
|
|
1,388
|
|
|
218
|
|
210
|
|
|
131
|
|
128
|
|
|
575
|
|
581
|
|
||||||||||
Subordinate securities held
(2)
:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Trading account assets
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
9
|
|
3
|
|
|
—
|
|
—
|
|
|
16
|
|
13
|
|
||||||||||
Debt securities carried at fair value
|
—
|
|
—
|
|
|
21
|
|
21
|
|
|
8
|
|
9
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Residual interests held
|
—
|
|
—
|
|
|
16
|
|
18
|
|
|
4
|
|
9
|
|
|
—
|
|
—
|
|
|
39
|
|
40
|
|
||||||||||
All other assets
(3)
|
674
|
|
1,551
|
|
|
59
|
|
64
|
|
|
1
|
|
1
|
|
|
234
|
|
239
|
|
|
—
|
|
—
|
|
||||||||||
Total retained positions
|
$
|
26,834
|
|
$
|
28,591
|
|
|
$
|
1,410
|
|
$
|
1,507
|
|
|
$
|
276
|
|
$
|
246
|
|
|
$
|
366
|
|
$
|
367
|
|
|
$
|
635
|
|
$
|
646
|
|
Principal balance outstanding
(4)
|
$
|
667,970
|
|
$
|
797,315
|
|
|
$
|
42,945
|
|
$
|
45,819
|
|
|
$
|
50,898
|
|
$
|
53,822
|
|
|
$
|
67,679
|
|
$
|
71,990
|
|
|
$
|
60,302
|
|
$
|
56,733
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Maximum loss exposure
(1)
|
$
|
45,453
|
|
$
|
46,959
|
|
|
$
|
107
|
|
$
|
104
|
|
|
$
|
391
|
|
$
|
390
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
1,369
|
|
$
|
—
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Loans and leases
|
$
|
44,539
|
|
$
|
45,991
|
|
|
$
|
282
|
|
$
|
283
|
|
|
$
|
759
|
|
$
|
722
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
Allowance for loan and lease losses
|
(4
|
)
|
(4
|
)
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Loans held-for-sale
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
762
|
|
914
|
|
|
—
|
|
—
|
|
|
1,369
|
|
—
|
|
||||||||||
All other assets
|
918
|
|
972
|
|
|
5
|
|
10
|
|
|
86
|
|
91
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Total assets
|
$
|
45,453
|
|
$
|
46,959
|
|
|
$
|
287
|
|
$
|
293
|
|
|
$
|
1,607
|
|
$
|
1,727
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
1,369
|
|
$
|
—
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Short-term borrowings
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
767
|
|
$
|
741
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
Long-term debt
|
—
|
|
—
|
|
|
203
|
|
212
|
|
|
793
|
|
941
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||||
Total liabilities
|
$
|
—
|
|
$
|
—
|
|
|
$
|
203
|
|
$
|
212
|
|
|
$
|
1,560
|
|
$
|
1,682
|
|
|
$
|
—
|
|
$
|
—
|
|
|
$
|
—
|
|
$
|
—
|
|
(1)
|
Maximum loss exposure excludes the liability for representations and warranties obligations and corporate guarantees and also excludes servicing advances and MSRs. For more information, see
Note 8 – Representations and Warranties Obligations and Corporate Guarantees
and
Note 19 – Mortgage Servicing Rights
.
|
(2)
|
As a holder of these securities, the Corporation receives scheduled principal and interest payments. During the
three months ended March 31, 2013 and 2012
, there were no OTTI losses recorded on those securities classified as AFS debt securities.
|
(3)
|
Not included in the table above are all other assets of
$8.2 billion
and
$12.1 billion
, representing the unpaid principal balance of mortgage loans eligible for repurchase from unconsolidated residential mortgage securitization vehicles, principally guaranteed by GNMA, and all other liabilities of
$8.2 billion
and
$12.1 billion
, representing the principal amount that would be payable to the securitization vehicles if the Corporation were to exercise the repurchase option, at
March 31, 2013
and
December 31, 2012
.
|
(4)
|
Principal balance outstanding includes loans the Corporation transferred with which the Corporation has continuing involvement, which may include servicing the loans.
|
Home Equity Loan VIEs
|
|
|
|
|
|||||||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
(Dollars in millions)
|
Consolidated
VIEs |
|
Unconsolidated
VIEs |
|
Total
|
|
Consolidated
VIEs |
|
Unconsolidated
VIEs |
|
Total
|
||||||||||||
Maximum loss exposure
(1)
|
$
|
1,449
|
|
|
$
|
7,004
|
|
|
$
|
8,453
|
|
|
$
|
2,004
|
|
|
$
|
6,707
|
|
|
$
|
8,711
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading account assets
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
8
|
|
|
$
|
—
|
|
|
$
|
8
|
|
|
$
|
8
|
|
Debt securities carried at fair value
|
—
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
14
|
|
|
14
|
|
||||||
Loans and leases
|
1,566
|
|
|
—
|
|
|
1,566
|
|
|
2,197
|
|
|
—
|
|
|
2,197
|
|
||||||
Allowance for loan and lease losses
|
(117
|
)
|
|
—
|
|
|
(117
|
)
|
|
(193
|
)
|
|
—
|
|
|
(193
|
)
|
||||||
Total
|
$
|
1,449
|
|
|
$
|
23
|
|
|
$
|
1,472
|
|
|
$
|
2,004
|
|
|
$
|
22
|
|
|
$
|
2,026
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt
|
$
|
1,649
|
|
|
$
|
—
|
|
|
$
|
1,649
|
|
|
$
|
2,331
|
|
|
$
|
—
|
|
|
$
|
2,331
|
|
All other liabilities
|
85
|
|
|
—
|
|
|
85
|
|
|
92
|
|
|
—
|
|
|
92
|
|
||||||
Total
|
$
|
1,734
|
|
|
$
|
—
|
|
|
$
|
1,734
|
|
|
$
|
2,423
|
|
|
$
|
—
|
|
|
$
|
2,423
|
|
Principal balance outstanding
|
$
|
1,566
|
|
|
$
|
10,932
|
|
|
$
|
12,498
|
|
|
$
|
2,197
|
|
|
$
|
12,644
|
|
|
$
|
14,841
|
|
(1)
|
For unconsolidated VIEs, the maximum loss exposure includes outstanding trust certificates issued by trusts in rapid amortization, net of recorded reserves, and excludes the liability for representations and warranties obligations and corporate guarantees.
|
Credit Card Securitizations
|
Credit Card VIEs
|
|
|
|
||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
Consolidated VIEs
|
|
|
|
||||
Maximum loss exposure
|
$
|
40,931
|
|
|
$
|
42,487
|
|
On-balance sheet assets
|
|
|
|
||||
Derivative assets
|
$
|
187
|
|
|
$
|
323
|
|
Loans and leases
(1)
|
62,365
|
|
|
66,427
|
|
||
Allowance for loan and lease losses
|
(3,183
|
)
|
|
(3,445
|
)
|
||
All other assets
(2)
|
1,872
|
|
|
1,567
|
|
||
Total
|
$
|
61,241
|
|
|
$
|
64,872
|
|
On-balance sheet liabilities
|
|
|
|
||||
Derivative liabilities
|
$
|
20
|
|
|
$
|
—
|
|
Long-term debt
|
20,222
|
|
|
22,291
|
|
||
All other liabilities
|
68
|
|
|
94
|
|
||
Total
|
$
|
20,310
|
|
|
$
|
22,385
|
|
(1)
|
At
March 31, 2013
and
December 31, 2012
, loans and leases included
$31.8 billion
and
$33.5 billion
of seller's interest and
$73 million
and
$124 million
of discount receivables.
|
(2)
|
At
March 31, 2013
and
December 31, 2012
, all other assets included restricted cash and short-term investment accounts and unbilled accrued interest and fees.
|
Other Asset-backed Securitizations
|
Other Asset-backed VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Resecuritization Trusts
|
|
Municipal Bond Trusts
|
|
Automobile and Other
Securitization Trusts |
||||||||||||||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
|
March 31
2013 |
|
December 31
2012 |
||||||||||||
Unconsolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Maximum loss exposure
|
$
|
18,487
|
|
|
$
|
20,715
|
|
|
$
|
3,193
|
|
|
$
|
3,341
|
|
|
$
|
85
|
|
|
$
|
122
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Senior securities held
(1, 2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading account assets
|
$
|
1,197
|
|
|
$
|
1,281
|
|
|
$
|
178
|
|
|
$
|
12
|
|
|
$
|
3
|
|
|
$
|
37
|
|
Debt securities carried at fair value
|
17,210
|
|
|
19,343
|
|
|
541
|
|
|
540
|
|
|
71
|
|
|
74
|
|
||||||
Subordinate securities held
(1, 2)
:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt securities carried at fair value
|
74
|
|
|
75
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Residual interests held
(3)
|
6
|
|
|
16
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
All other assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11
|
|
|
11
|
|
||||||
Total retained positions
|
$
|
18,487
|
|
|
$
|
20,715
|
|
|
$
|
719
|
|
|
$
|
552
|
|
|
$
|
85
|
|
|
$
|
122
|
|
Total assets of VIEs
(4)
|
$
|
39,300
|
|
|
$
|
42,818
|
|
|
$
|
4,870
|
|
|
$
|
4,980
|
|
|
$
|
1,676
|
|
|
$
|
1,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Maximum loss exposure
|
$
|
1,249
|
|
|
$
|
126
|
|
|
$
|
1,881
|
|
|
$
|
2,505
|
|
|
$
|
525
|
|
|
$
|
1,255
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading account assets
|
$
|
2,278
|
|
|
$
|
220
|
|
|
$
|
1,881
|
|
|
$
|
2,505
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Loans and leases
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,475
|
|
|
2,523
|
|
||||||
Allowance for loan and lease losses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(2
|
)
|
||||||
All other assets
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
149
|
|
|
250
|
|
||||||
Total assets
|
$
|
2,278
|
|
|
$
|
220
|
|
|
$
|
1,881
|
|
|
$
|
2,505
|
|
|
$
|
1,623
|
|
|
$
|
2,771
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Short-term borrowings
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,755
|
|
|
$
|
2,859
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Long-term debt
|
1,029
|
|
|
94
|
|
|
—
|
|
|
—
|
|
|
1,096
|
|
|
1,513
|
|
||||||
All other liabilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
83
|
|
|
82
|
|
||||||
Total liabilities
|
$
|
1,029
|
|
|
$
|
94
|
|
|
$
|
1,755
|
|
|
$
|
2,859
|
|
|
$
|
1,179
|
|
|
$
|
1,595
|
|
(1)
|
As a holder of these securities, the Corporation receives scheduled principal and interest payments. During the
three months ended March 31, 2013 and 2012
, there were no OTTI losses recorded on those securities classified as AFS debt securities.
|
(2)
|
The retained senior and subordinate securities were valued using quoted market prices or observable market inputs (Level 2 of the fair value hierarchy).
|
(3)
|
The retained residual interests are carried at fair value which was derived using model valuations (Level 2 of the fair value hierarchy).
|
(4)
|
Total assets include loans the Corporation transferred with which the Corporation has continuing involvement, which may include servicing the loan.
|
Collateralized Debt Obligation Vehicles
|
CDO Vehicle VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
(Dollars in millions)
|
Consolidated
|
|
Unconsolidated
|
|
Total
|
|
Consolidated
|
|
Unconsolidated
|
|
Total
|
||||||||||||
Maximum loss exposure
|
$
|
2,325
|
|
|
$
|
1,302
|
|
|
$
|
3,627
|
|
|
$
|
2,201
|
|
|
$
|
1,376
|
|
|
$
|
3,577
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading account assets
|
$
|
2,325
|
|
|
$
|
307
|
|
|
$
|
2,632
|
|
|
$
|
2,191
|
|
|
$
|
258
|
|
|
$
|
2,449
|
|
Derivative assets
|
—
|
|
|
233
|
|
|
233
|
|
|
10
|
|
|
301
|
|
|
311
|
|
||||||
All other assets
|
—
|
|
|
71
|
|
|
71
|
|
|
—
|
|
|
76
|
|
|
76
|
|
||||||
Total
|
$
|
2,325
|
|
|
$
|
611
|
|
|
$
|
2,936
|
|
|
$
|
2,201
|
|
|
$
|
635
|
|
|
$
|
2,836
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities
|
$
|
—
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
9
|
|
Long-term debt
|
2,861
|
|
|
2
|
|
|
2,863
|
|
|
2,806
|
|
|
2
|
|
|
2,808
|
|
||||||
Total
|
$
|
2,861
|
|
|
$
|
8
|
|
|
$
|
2,869
|
|
|
$
|
2,806
|
|
|
$
|
11
|
|
|
$
|
2,817
|
|
Total assets of VIEs
|
$
|
2,325
|
|
|
$
|
26,108
|
|
|
$
|
28,433
|
|
|
$
|
2,201
|
|
|
$
|
26,985
|
|
|
$
|
29,186
|
|
Customer Vehicles
|
Customer Vehicle VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
(Dollars in millions)
|
Consolidated
|
|
Unconsolidated
|
|
Total
|
|
Consolidated
|
|
Unconsolidated
|
|
Total
|
||||||||||||
Maximum loss exposure
|
$
|
3,442
|
|
|
$
|
1,296
|
|
|
$
|
4,738
|
|
|
$
|
2,994
|
|
|
$
|
1,401
|
|
|
$
|
4,395
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading account assets
|
$
|
2,520
|
|
|
$
|
61
|
|
|
$
|
2,581
|
|
|
$
|
2,882
|
|
|
$
|
98
|
|
|
$
|
2,980
|
|
Derivative assets
|
—
|
|
|
423
|
|
|
423
|
|
|
—
|
|
|
516
|
|
|
516
|
|
||||||
Loans and leases
|
784
|
|
|
—
|
|
|
784
|
|
|
523
|
|
|
—
|
|
|
523
|
|
||||||
Loans held-for-sale
|
1,003
|
|
|
—
|
|
|
1,003
|
|
|
950
|
|
|
—
|
|
|
950
|
|
||||||
All other assets
|
710
|
|
|
—
|
|
|
710
|
|
|
763
|
|
|
—
|
|
|
763
|
|
||||||
Total
|
$
|
5,017
|
|
|
$
|
484
|
|
|
$
|
5,501
|
|
|
$
|
5,118
|
|
|
$
|
614
|
|
|
$
|
5,732
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities
|
$
|
24
|
|
|
$
|
7
|
|
|
$
|
31
|
|
|
$
|
26
|
|
|
$
|
7
|
|
|
$
|
33
|
|
Short-term borrowings
|
17
|
|
|
—
|
|
|
17
|
|
|
131
|
|
|
—
|
|
|
131
|
|
||||||
Long-term debt
|
2,729
|
|
|
—
|
|
|
2,729
|
|
|
3,179
|
|
|
—
|
|
|
3,179
|
|
||||||
All other liabilities
|
2
|
|
|
383
|
|
|
385
|
|
|
3
|
|
|
382
|
|
|
385
|
|
||||||
Total
|
$
|
2,772
|
|
|
$
|
390
|
|
|
$
|
3,162
|
|
|
$
|
3,339
|
|
|
$
|
389
|
|
|
$
|
3,728
|
|
Total assets of VIEs
|
$
|
5,017
|
|
|
$
|
4,034
|
|
|
$
|
9,051
|
|
|
$
|
5,118
|
|
|
$
|
4,055
|
|
|
$
|
9,173
|
|
Other Variable Interest Entities
|
Other VIEs
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
(Dollars in millions)
|
Consolidated
|
|
Unconsolidated
|
|
Total
|
|
Consolidated
|
|
Unconsolidated
|
|
Total
|
||||||||||||
Maximum loss exposure
|
$
|
5,508
|
|
|
$
|
6,629
|
|
|
$
|
12,137
|
|
|
$
|
5,608
|
|
|
$
|
6,492
|
|
|
$
|
12,100
|
|
On-balance sheet assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trading account assets
|
$
|
109
|
|
|
$
|
—
|
|
|
$
|
109
|
|
|
$
|
108
|
|
|
$
|
—
|
|
|
$
|
108
|
|
Derivative assets
|
—
|
|
|
507
|
|
|
507
|
|
|
—
|
|
|
460
|
|
|
460
|
|
||||||
Debt securities carried at fair value
|
—
|
|
|
36
|
|
|
36
|
|
|
—
|
|
|
39
|
|
|
39
|
|
||||||
Loans and leases
|
4,466
|
|
|
53
|
|
|
4,519
|
|
|
4,561
|
|
|
67
|
|
|
4,628
|
|
||||||
Allowance for loan and lease losses
|
(5
|
)
|
|
—
|
|
|
(5
|
)
|
|
(14
|
)
|
|
—
|
|
|
(14
|
)
|
||||||
Loans held-for-sale
|
95
|
|
|
73
|
|
|
168
|
|
|
105
|
|
|
157
|
|
|
262
|
|
||||||
All other assets
|
988
|
|
|
5,959
|
|
|
6,947
|
|
|
1,001
|
|
|
5,768
|
|
|
6,769
|
|
||||||
Total
|
$
|
5,653
|
|
|
$
|
6,628
|
|
|
$
|
12,281
|
|
|
$
|
5,761
|
|
|
$
|
6,491
|
|
|
$
|
12,252
|
|
On-balance sheet liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Derivative liabilities
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
9
|
|
Long-term debt
|
879
|
|
|
—
|
|
|
879
|
|
|
889
|
|
|
—
|
|
|
889
|
|
||||||
All other liabilities
|
63
|
|
|
1,930
|
|
|
1,993
|
|
|
63
|
|
|
1,683
|
|
|
1,746
|
|
||||||
Total
|
$
|
942
|
|
|
$
|
1,930
|
|
|
$
|
2,872
|
|
|
$
|
952
|
|
|
$
|
1,692
|
|
|
$
|
2,644
|
|
Total assets of VIEs
|
$
|
5,653
|
|
|
$
|
8,599
|
|
|
$
|
14,252
|
|
|
$
|
5,761
|
|
|
$
|
8,660
|
|
|
$
|
14,421
|
|
NOTE 8 – Representations and Warranties Obligations and Corporate Guarantees
|
|
Background
|
Settlement Actions
|
Unresolved Repurchase Claims
|
Unresolved Repurchase Claims by Counterparty and Product Type
(1, 2)
|
|
|
|
||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
By counterparty
|
|
|
|
||||
GSEs
|
$
|
1,138
|
|
|
$
|
13,530
|
|
Monolines
(3)
|
2,488
|
|
|
2,449
|
|
||
Whole-loan investors, private-label securitization trustees, third-party securitization sponsors and other
|
13,509
|
|
|
12,299
|
|
||
Total unresolved repurchase claims by counterparty
|
$
|
17,135
|
|
|
$
|
28,278
|
|
By product type
|
|
|
|
||||
Prime loans
|
$
|
1,359
|
|
|
$
|
8,793
|
|
Alt-A
|
1,034
|
|
|
5,428
|
|
||
Home equity
|
2,467
|
|
|
2,394
|
|
||
Pay option
|
5,594
|
|
|
5,884
|
|
||
Subprime
|
4,533
|
|
|
3,687
|
|
||
Other
|
2,148
|
|
|
2,092
|
|
||
Total unresolved repurchase claims by product type
|
$
|
17,135
|
|
|
$
|
28,278
|
|
(1)
|
Excludes certain MI rescission notices. However, at
March 31, 2013
and
December 31, 2012
, included
$427 million
and
$2.3 billion
of repurchase requests received from the GSEs that have resulted solely from MI rescission notices. For additional information, see
Mortgage Insurance Rescission Notices
in this Note.
|
(2)
|
At both
March 31, 2013
and
December 31, 2012
, unresolved repurchase claims did not include repurchase demands of
$1.6 billion
where the Corporation believes the claimants have not satisfied the contractual thresholds as noted on page
189
.
|
(3)
|
As a result of the MBIA Settlement,
$945 million
of monoline repurchase claims outstanding at
March 31, 2013
were resolved in May 2013.
|
Loan Repurchases and Indemnification Payments
|
|||||||||||||||||||||||
|
Three Months Ended March 31
|
||||||||||||||||||||||
|
2013
|
|
2012
|
||||||||||||||||||||
(Dollars in millions)
|
Unpaid
Principal
Balance
|
|
Cash Paid
for
Repurchases
|
|
Loss
|
|
Unpaid
Principal
Balance
|
|
Cash Paid
for
Repurchases
|
|
Loss
|
||||||||||||
First-lien
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Repurchases
|
$
|
421
|
|
|
$
|
437
|
|
|
$
|
56
|
|
|
$
|
250
|
|
|
$
|
284
|
|
|
$
|
129
|
|
Indemnification payments
|
135
|
|
|
62
|
|
|
62
|
|
|
267
|
|
|
124
|
|
|
124
|
|
||||||
Total first-lien
|
556
|
|
|
499
|
|
|
118
|
|
|
517
|
|
|
408
|
|
|
253
|
|
||||||
Home equity
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Repurchases
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
4
|
|
|
—
|
|
||||||
Indemnification payments
|
8
|
|
|
9
|
|
|
9
|
|
|
11
|
|
|
11
|
|
|
11
|
|
||||||
Total home equity
|
8
|
|
|
9
|
|
|
9
|
|
|
15
|
|
|
15
|
|
|
11
|
|
||||||
Total first-lien and home equity
|
$
|
564
|
|
|
$
|
508
|
|
|
$
|
127
|
|
|
$
|
532
|
|
|
$
|
423
|
|
|
$
|
264
|
|
Liability for Representations and Warranties and Corporate Guarantees
|
Representations and Warranties and Corporate Guarantees
|
|
|
|
||||
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Liability for representations and warranties and corporate guarantees, January 1
|
$
|
19,021
|
|
|
$
|
15,858
|
|
Additions for new sales
|
10
|
|
|
5
|
|
||
Net reductions
|
(5,205
|
)
|
|
(399
|
)
|
||
Provision
|
250
|
|
|
282
|
|
||
Liability for representations and warranties and corporate guarantees, March 31
|
$
|
14,076
|
|
|
$
|
15,746
|
|
Estimated Range of Possible Loss
|
Government-sponsored Enterprises Experience
|
Monoline Insurers Experience
|
Whole Loan Sales and Private-label Securitizations Experience
|
NOTE 9 – Goodwill and Intangible Assets
|
|
Goodwill
|
Goodwill
|
|||||||
(Dollars in millions)
|
March 31
2013 |
|
December 31
2012 |
||||
Consumer & Business Banking
|
$
|
29,986
|
|
|
$
|
29,986
|
|
Global Banking
|
24,335
|
|
|
24,335
|
|
||
Global Markets
|
4,918
|
|
|
4,918
|
|
||
Global Wealth & Investment Management
|
9,698
|
|
|
9,698
|
|
||
All Other
|
993
|
|
|
1,039
|
|
||
Total goodwill
|
$
|
69,930
|
|
|
$
|
69,976
|
|
Intangible Assets
|
Intangible Assets
(1)
|
|||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||
(Dollars in millions)
|
Gross
Carrying Value
|
|
Accumulated
Amortization
|
|
Gross
Carrying Value
|
|
Accumulated
Amortization
|
||||||||
Purchased credit card relationships
|
$
|
6,117
|
|
|
$
|
4,539
|
|
|
$
|
6,184
|
|
|
$
|
4,494
|
|
Core deposit intangibles
|
3,592
|
|
|
2,909
|
|
|
3,592
|
|
|
2,858
|
|
||||
Customer relationships
|
4,012
|
|
|
1,976
|
|
|
4,025
|
|
|
1,884
|
|
||||
Affinity relationships
|
1,561
|
|
|
1,106
|
|
|
1,572
|
|
|
1,087
|
|
||||
Other intangibles
|
2,046
|
|
|
419
|
|
|
2,139
|
|
|
505
|
|
||||
Total intangible assets
|
$
|
17,328
|
|
|
$
|
10,949
|
|
|
$
|
17,512
|
|
|
$
|
10,828
|
|
(1)
|
Excludes fully amortized intangible assets.
|
NOTE 10 – Federal Funds Sold or Purchased, Securities Financing Agreements and Short-term Borrowings
|
|
Three Months Ended March 31
|
|||||||||||||
|
Amount
|
|
Rate
|
|||||||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||
Average during period
|
|
|
|
|
|
|
|
|||||||
Federal funds sold
|
$
|
2
|
|
|
$
|
107
|
|
|
0.60
|
%
|
|
0.73
|
%
|
|
Securities borrowed or purchased under agreements to resell
|
237,461
|
|
|
232,954
|
|
|
0.54
|
|
|
0.79
|
|
|||
Total
|
$
|
237,463
|
|
|
$
|
233,061
|
|
|
0.54
|
|
|
0.79
|
|
|
|
|
|
|
|
|
|
|
|||||||
Federal funds purchased
|
$
|
192
|
|
|
$
|
261
|
|
|
0.05
|
%
|
|
0.05
|
%
|
|
Securities loaned or sold under agreements to repurchase
|
300,746
|
|
|
256,144
|
|
|
0.72
|
|
|
1.10
|
|
|||
Short-term borrowings
|
36,706
|
|
|
36,651
|
|
|
2.36
|
|
|
1.99
|
|
|||
Total
|
$
|
337,644
|
|
|
$
|
293,056
|
|
|
0.90
|
|
|
1.21
|
|
|
|
|
|
|
|
|
|
|
|||||||
Maximum month-end balance during period
|
|
|
|
|
|
|
|
|||||||
Federal funds sold
|
$
|
—
|
|
|
$
|
102
|
|
|
|
|
|
|||
Securities borrowed or purchased under agreements to resell
|
249,791
|
|
|
248,267
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||||
Federal funds purchased
|
176
|
|
|
331
|
|
|
|
|
|
|||||
Securities loaned or sold under agreements to repurchase
|
319,608
|
|
|
276,403
|
|
|
|
|
|
|||||
Short-term borrowings
|
42,148
|
|
|
39,499
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||||
|
March 31, 2013
|
|
December 31, 2012
|
|||||||||||
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|||||||
Period-end balance
|
|
|
|
|
|
|
|
|||||||
Federal funds sold
|
$
|
—
|
|
|
—
|
%
|
|
$
|
600
|
|
|
0.54
|
%
|
|
Securities borrowed or purchased under agreements to resell
|
220,623
|
|
|
0.53
|
|
|
219,324
|
|
|
0.92
|
|
|||
Total
|
$
|
220,623
|
|
|
0.53
|
|
|
$
|
219,924
|
|
|
0.92
|
|
|
|
|
|
|
|
|
|
|
|||||||
Federal funds purchased
|
$
|
161
|
|
|
0.05
|
%
|
|
$
|
1,151
|
|
|
0.17
|
%
|
|
Securities loaned or sold under agreements to repurchase
|
247,988
|
|
|
0.77
|
|
|
292,108
|
|
|
1.11
|
|
|||
Short-term borrowings
|
42,148
|
|
|
2.59
|
|
|
30,731
|
|
|
3.08
|
|
|||
Total
|
$
|
290,297
|
|
|
1.00
|
|
|
$
|
323,990
|
|
|
1.29
|
|
Offsetting of Securities Financing Agreements
|
NOTE 11 – Commitments and Contingencies
|
Credit Extension Commitments
|
Credit Extension Commitments
|
|
|
|||||||||||||||||
|
March 31, 2013
|
||||||||||||||||||
(Dollars in millions)
|
Expire in
One Year
or Less
|
|
Expire After
One Year Through
Three Years |
|
Expire After Three Years Through
Five Years |
|
Expire After Five Years
|
|
Total
|
||||||||||
Notional amount of credit extension commitments
|
|
|
|
|
|
|
|
|
|
||||||||||
Loan commitments
|
$
|
93,870
|
|
|
$
|
83,884
|
|
|
$
|
129,988
|
|
|
$
|
20,187
|
|
|
$
|
327,929
|
|
Home equity lines of credit
|
2,164
|
|
|
14,949
|
|
|
23,904
|
|
|
18,978
|
|
|
59,995
|
|
|||||
Standby letters of credit and financial guarantees
(1)
|
23,756
|
|
|
10,857
|
|
|
3,079
|
|
|
4,248
|
|
|
41,940
|
|
|||||
Letters of credit
|
1,911
|
|
|
78
|
|
|
2
|
|
|
717
|
|
|
2,708
|
|
|||||
Legally binding commitments
|
121,701
|
|
|
109,768
|
|
|
156,973
|
|
|
44,130
|
|
|
432,572
|
|
|||||
Credit card lines
(2)
|
403,687
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
403,687
|
|
|||||
Total credit extension commitments
|
$
|
525,388
|
|
|
$
|
109,768
|
|
|
$
|
156,973
|
|
|
$
|
44,130
|
|
|
$
|
836,259
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
December 31, 2012
|
||||||||||||||||||
Notional amount of credit extension commitments
|
|
|
|
|
|
|
|
|
|
||||||||||
Loan commitments
|
$
|
103,791
|
|
|
$
|
83,885
|
|
|
$
|
130,805
|
|
|
$
|
19,942
|
|
|
$
|
338,423
|
|
Home equity lines of credit
|
2,134
|
|
|
13,584
|
|
|
23,344
|
|
|
21,856
|
|
|
60,918
|
|
|||||
Standby letters of credit and financial guarantees
(1)
|
24,593
|
|
|
11,387
|
|
|
3,094
|
|
|
4,751
|
|
|
43,825
|
|
|||||
Letters of credit
|
2,003
|
|
|
70
|
|
|
10
|
|
|
546
|
|
|
2,629
|
|
|||||
Legally binding commitments
|
132,521
|
|
|
108,926
|
|
|
157,253
|
|
|
47,095
|
|
|
445,795
|
|
|||||
Credit card lines
(2)
|
414,044
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
414,044
|
|
|||||
Total credit extension commitments
|
$
|
546,565
|
|
|
$
|
108,926
|
|
|
$
|
157,253
|
|
|
$
|
47,095
|
|
|
$
|
859,839
|
|
(1)
|
The notional amounts of SBLCs and financial guarantees classified as investment grade and non-investment grade based on the credit quality of the underlying reference name within the instrument were
$30.2 billion
and
$11.2 billion
at
March 31, 2013
, and
$31.5 billion
and
$11.6 billion
at
December 31, 2012
. Amounts include consumer SBLCs of
$562 million
and
$669 million
at
March 31, 2013
and
December 31, 2012
.
|
(2)
|
Includes business card unused lines of credit.
|
Other Commitments
|
Other Guarantees
|
Litigation and Regulatory Matters
|
NOTE 12 – Shareholders' Equity
|
|
Common Stock
|
Declaration Date
|
Record Date
|
Payment Date
|
Dividend Per Share
|
||||
April 30, 2013
|
June 7, 2013
|
June 28, 2013
|
|
$
|
0.01
|
|
|
January 23, 2013
|
March 1, 2013
|
March 22, 2013
|
|
0.01
|
|
|
Preferred Stock
|
NOTE 13 – Accumulated Other Comprehensive Income (Loss)
|
(Dollars in millions)
|
Available-for-sale Debt Securities
|
|
Available-for-sale
Marketable
Equity Securities
|
|
Derivatives
|
|
Employee
Benefit Plans
|
|
Foreign
Currency
(1)
|
|
Total
|
||||||||||||
Balance, December 31, 2011
|
$
|
3,100
|
|
|
$
|
3
|
|
|
$
|
(3,785
|
)
|
|
$
|
(4,391
|
)
|
|
$
|
(364
|
)
|
|
$
|
(5,437
|
)
|
Net change
|
(938
|
)
|
|
14
|
|
|
382
|
|
|
952
|
|
|
31
|
|
|
441
|
|
||||||
Balance, March 31, 2012
|
$
|
2,162
|
|
|
$
|
17
|
|
|
$
|
(3,403
|
)
|
|
$
|
(3,439
|
)
|
|
$
|
(333
|
)
|
|
$
|
(4,996
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance, December 31, 2012
|
$
|
4,443
|
|
|
$
|
462
|
|
|
$
|
(2,869
|
)
|
|
$
|
(4,456
|
)
|
|
$
|
(377
|
)
|
|
$
|
(2,797
|
)
|
Net change
|
(946
|
)
|
|
40
|
|
|
172
|
|
|
85
|
|
|
(42
|
)
|
|
(691
|
)
|
||||||
Balance, March 31, 2013
|
$
|
3,497
|
|
|
$
|
502
|
|
|
$
|
(2,697
|
)
|
|
$
|
(4,371
|
)
|
|
$
|
(419
|
)
|
|
$
|
(3,488
|
)
|
(1)
|
Net change in fair value represents the impact of changes in spot foreign exchange rates on the Corporation's net investment in non-U.S. operations and related hedges.
|
Reclassifications Out of Accumulated OCI
|
|||||||||||
(Dollars in millions)
|
Three Months Ended March 31
|
||||||||||
|
2013
|
|
2012
|
||||||||
Accumulated OCI Components
|
Reclassifications Out of Accumulated OCI
|
|
Income Statement Line Item
|
|
Reclassifications Out of
Accumulated OCI
|
|
Income Statement Line Item
|
||||
|
|
|
|||||||||
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
||||
|
$
|
68
|
|
|
Gains on sales of debt securities
|
|
$
|
752
|
|
|
Gains on sales of debt securities
|
|
(9
|
)
|
|
Other-than-temporary impairment
|
|
(40
|
)
|
|
Other-than-temporary impairment
|
||
|
59
|
|
|
Income before income taxes
|
|
712
|
|
|
Income before income taxes
|
||
|
22
|
|
|
Income tax expense
|
|
263
|
|
|
Income tax expense
|
||
|
37
|
|
|
Net income
|
|
449
|
|
|
Net income
|
||
Derivatives:
|
|
|
|
|
|
|
|
||||
Commodity contracts
|
—
|
|
|
Trading account profits
|
|
(5
|
)
|
|
Trading account profits
|
||
Equity compensation contracts
|
40
|
|
|
Personnel
|
|
(37
|
)
|
|
Personnel
|
||
Interest rate contracts
|
(275
|
)
|
|
Net interest income
|
|
(152
|
)
|
|
Net interest income
|
||
|
(235
|
)
|
|
Loss before income taxes
|
|
(194
|
)
|
|
Loss before income taxes
|
||
|
(87
|
)
|
|
Income tax benefit
|
|
(72
|
)
|
|
Income tax benefit
|
||
|
(148
|
)
|
|
Net loss
|
|
(122
|
)
|
|
Net loss
|
||
Employee benefit plans:
|
|
|
|
|
|
|
|
||||
Prior service costs
|
(1
|
)
|
|
Personnel
|
|
(4
|
)
|
|
Personnel
|
||
Transition obligation
|
—
|
|
|
Personnel
|
|
(8
|
)
|
|
Personnel
|
||
Actuarial losses
|
(73
|
)
|
|
Personnel
|
|
(119
|
)
|
|
Personnel
|
||
Settlements and curtailments
|
—
|
|
|
Personnel
|
|
(61
|
)
|
|
Personnel
|
||
|
(74
|
)
|
|
Loss before income taxes
|
|
(192
|
)
|
|
Loss before income taxes
|
||
|
(21
|
)
|
|
Income tax benefit
|
|
(71
|
)
|
|
Income tax benefit
|
||
|
(53
|
)
|
|
Net loss
|
|
(121
|
)
|
|
Net loss
|
||
Foreign currency:
|
|
|
|
|
|
|
|
||||
Insignificant items
|
(34
|
)
|
|
Other loss
|
|
—
|
|
|
Other income
|
||
|
(34
|
)
|
|
Loss before income taxes
|
|
—
|
|
|
Income before income taxes
|
||
|
(35
|
)
|
|
Income tax benefit
|
|
—
|
|
|
Income tax expense
|
||
|
1
|
|
|
Net income
|
|
—
|
|
|
Net income
|
||
Total reclassification adjustments
|
$
|
(163
|
)
|
|
|
|
$
|
206
|
|
|
|
NOTE 14 – Earnings Per Common Share
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions, except per share information; shares in thousands)
|
2013
|
|
2012
|
||||
Earnings per common share
|
|
|
|
||||
Net income
|
$
|
1,483
|
|
|
$
|
653
|
|
Preferred stock dividends
|
(373
|
)
|
|
(325
|
)
|
||
Net income applicable to common shareholders
|
1,110
|
|
|
328
|
|
||
Dividends and undistributed earnings allocated to participating securities
|
—
|
|
|
(1
|
)
|
||
Net income allocated to common shareholders
|
$
|
1,110
|
|
|
$
|
327
|
|
Average common shares issued and outstanding
|
10,798,975
|
|
|
10,651,367
|
|
||
Earnings per common share
|
$
|
0.10
|
|
|
$
|
0.03
|
|
|
|
|
|
||||
Diluted earnings per common share
|
|
|
|
||||
Net income applicable to common shareholders
|
$
|
1,110
|
|
|
$
|
328
|
|
Dividends and undistributed earnings allocated to participating securities
|
—
|
|
|
(1
|
)
|
||
Net income allocated to common shareholders
|
$
|
1,110
|
|
|
$
|
327
|
|
Average common shares issued and outstanding
|
10,798,975
|
|
|
10,651,367
|
|
||
Dilutive potential common shares
(1)
|
355,803
|
|
|
110,550
|
|
||
Total diluted average common shares issued and outstanding
|
11,154,778
|
|
|
10,761,917
|
|
||
Diluted earnings per common share
|
$
|
0.10
|
|
|
$
|
0.03
|
|
(1)
|
Includes incremental shares from restricted stock units, restricted stock, stock options and warrants.
|
NOTE 15 – Pension, Postretirement and Certain Compensation Plans
|
|
Pension and Postretirement Plans
|
Components of Net Periodic Benefit Cost
|
|||||||||||||||
|
Three Months Ended March 31, 2013
|
||||||||||||||
(Dollars in millions)
|
Qualified Pension Plans
|
|
Non-U.S. Pension Plans
|
|
Nonqualified and Other Pension Plans
(1)
|
|
Postretirement
Health and Life
Plans
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Interest cost
|
151
|
|
|
25
|
|
|
30
|
|
|
13
|
|
||||
Expected return on plan assets
|
(253
|
)
|
|
(32
|
)
|
|
(27
|
)
|
|
(1
|
)
|
||||
Amortization of prior service cost
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
||||
Amortization of net actuarial loss (gain)
|
71
|
|
|
1
|
|
|
6
|
|
|
(5
|
)
|
||||
Recognized loss (gain) due to settlements and curtailments
|
17
|
|
|
(7
|
)
|
|
—
|
|
|
—
|
|
||||
Net periodic benefit cost (income)
|
$
|
(14
|
)
|
|
$
|
(4
|
)
|
|
$
|
9
|
|
|
$
|
12
|
|
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended March 31, 2012
|
||||||||||||||
Service cost
|
$
|
114
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
4
|
|
Interest cost
|
172
|
|
|
24
|
|
|
35
|
|
|
18
|
|
||||
Expected return on plan assets
|
(309
|
)
|
|
(34
|
)
|
|
(38
|
)
|
|
(2
|
)
|
||||
Amortization of transition obligation
|
—
|
|
|
—
|
|
|
—
|
|
|
8
|
|
||||
Amortization of prior service cost (credits)
|
5
|
|
|
—
|
|
|
(2
|
)
|
|
1
|
|
||||
Amortization of net actuarial loss (gain)
|
123
|
|
|
(2
|
)
|
|
3
|
|
|
(5
|
)
|
||||
Recognized loss due to settlements and curtailments
|
58
|
|
|
—
|
|
|
3
|
|
|
—
|
|
||||
Net periodic benefit cost (income)
|
$
|
163
|
|
|
$
|
(2
|
)
|
|
$
|
1
|
|
|
$
|
24
|
|
(1)
|
Includes nonqualified pension plans and the terminated Merrill Lynch U.S. pension plan.
|
Certain Compensation Plans
|
NOTE 16 – Fair Value Measurements
|
Valuation Processes and Techniques
|
Recurring Fair Value
|
|
March 31, 2013
|
||||||||||||||||||
|
Fair Value Measurements
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
Level 1
(1)
|
|
Level 2
(1)
|
|
Level 3
|
|
Netting
Adjustments
(2)
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
—
|
|
|
$
|
94,673
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
94,673
|
|
Trading account assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency securities
|
47,957
|
|
|
24,921
|
|
|
—
|
|
|
—
|
|
|
72,878
|
|
|||||
Corporate securities, trading loans and other
|
1,702
|
|
|
33,874
|
|
|
3,607
|
|
|
—
|
|
|
39,183
|
|
|||||
Equity securities
|
31,398
|
|
|
13,968
|
|
|
497
|
|
|
—
|
|
|
45,863
|
|
|||||
Non-U.S. sovereign debt
|
33,681
|
|
|
14,536
|
|
|
417
|
|
|
—
|
|
|
48,634
|
|
|||||
Mortgage trading loans and ABS
|
—
|
|
|
11,990
|
|
|
4,480
|
|
|
—
|
|
|
16,470
|
|
|||||
Total trading account assets
|
114,738
|
|
|
99,289
|
|
|
9,001
|
|
|
—
|
|
|
223,028
|
|
|||||
Derivative assets
(3)
|
5,078
|
|
|
1,201,709
|
|
|
8,011
|
|
|
(1,162,551
|
)
|
|
52,247
|
|
|||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities and agency securities
|
14,639
|
|
|
2,800
|
|
|
—
|
|
|
—
|
|
|
17,439
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
—
|
|
|
174,268
|
|
|
—
|
|
|
—
|
|
|
174,268
|
|
|||||
Agency-collateralized mortgage obligations
|
—
|
|
|
34,761
|
|
|
—
|
|
|
—
|
|
|
34,761
|
|
|||||
Non-agency residential
|
—
|
|
|
8,877
|
|
|
—
|
|
|
—
|
|
|
8,877
|
|
|||||
Non-agency commercial
|
—
|
|
|
3,824
|
|
|
10
|
|
|
—
|
|
|
3,834
|
|
|||||
Non-U.S. securities
|
2,699
|
|
|
2,950
|
|
|
1
|
|
|
—
|
|
|
5,650
|
|
|||||
Corporate/Agency bonds
|
—
|
|
|
1,289
|
|
|
96
|
|
|
—
|
|
|
1,385
|
|
|||||
Other taxable securities
|
20
|
|
|
6,989
|
|
|
4,045
|
|
|
—
|
|
|
11,054
|
|
|||||
Tax-exempt securities
|
—
|
|
|
3,541
|
|
|
1,041
|
|
|
—
|
|
|
4,582
|
|
|||||
Total AFS debt securities
|
17,358
|
|
|
239,299
|
|
|
5,193
|
|
|
—
|
|
|
261,850
|
|
|||||
Other debt securities carried at fair value:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities and agency securities
|
3,861
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,861
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
—
|
|
|
29,178
|
|
|
—
|
|
|
—
|
|
|
29,178
|
|
|||||
Agency-collateralized mortgage obligations
|
—
|
|
|
958
|
|
|
—
|
|
|
—
|
|
|
958
|
|
|||||
Non-agency commercial
|
—
|
|
|
103
|
|
|
—
|
|
|
—
|
|
|
103
|
|
|||||
Non-U.S. securities
|
8,872
|
|
|
310
|
|
|
—
|
|
|
—
|
|
|
9,182
|
|
|||||
Total other debt securities carried at fair value
|
12,733
|
|
|
30,549
|
|
|
—
|
|
|
—
|
|
|
43,282
|
|
|||||
Loans and leases
|
—
|
|
|
6,457
|
|
|
2,363
|
|
|
—
|
|
|
8,820
|
|
|||||
Mortgage servicing rights
|
—
|
|
|
—
|
|
|
5,776
|
|
|
—
|
|
|
5,776
|
|
|||||
Loans held-for-sale
|
—
|
|
|
11,482
|
|
|
2,405
|
|
|
—
|
|
|
13,887
|
|
|||||
Other assets
|
15,578
|
|
|
5,036
|
|
|
2,629
|
|
|
—
|
|
|
23,243
|
|
|||||
Total assets
|
$
|
165,485
|
|
|
$
|
1,688,494
|
|
|
$
|
35,378
|
|
|
$
|
(1,162,551
|
)
|
|
$
|
726,806
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits in U.S. offices
|
$
|
—
|
|
|
$
|
2,130
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,130
|
|
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
—
|
|
|
47,842
|
|
|
—
|
|
|
—
|
|
|
47,842
|
|
|||||
Trading account liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency securities
|
25,292
|
|
|
472
|
|
|
—
|
|
|
—
|
|
|
25,764
|
|
|||||
Equity securities
|
21,786
|
|
|
2,963
|
|
|
—
|
|
|
—
|
|
|
24,749
|
|
|||||
Non-U.S. sovereign debt
|
27,945
|
|
|
1,432
|
|
|
—
|
|
|
—
|
|
|
29,377
|
|
|||||
Corporate securities and other
|
574
|
|
|
10,025
|
|
|
58
|
|
|
—
|
|
|
10,657
|
|
|||||
Total trading account liabilities
|
75,597
|
|
|
14,892
|
|
|
58
|
|
|
—
|
|
|
90,547
|
|
|||||
Derivative liabilities
(3)
|
3,888
|
|
|
1,184,636
|
|
|
6,948
|
|
|
(1,147,647
|
)
|
|
47,825
|
|
|||||
Short-term borrowings
|
—
|
|
|
3,168
|
|
|
—
|
|
|
—
|
|
|
3,168
|
|
|||||
Accrued expenses and other liabilities
|
12,016
|
|
|
1,814
|
|
|
455
|
|
|
—
|
|
|
14,285
|
|
|||||
Long-term debt
|
—
|
|
|
50,006
|
|
|
2,355
|
|
|
—
|
|
|
52,361
|
|
|||||
Total liabilities
|
$
|
91,501
|
|
|
$
|
1,304,488
|
|
|
$
|
9,816
|
|
|
$
|
(1,147,647
|
)
|
|
$
|
258,158
|
|
(1)
|
During the
three months ended March 31, 2013
,
$500 million
of assets were transferred from Level 1 to Level 2 primarily due to a restriction that became effective for a private equity investment.
|
(2)
|
Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.
|
(3)
|
For further disaggregation of derivative assets and liabilities, see
Note 3 – Derivatives
.
|
|
December 31, 2012
|
||||||||||||||||||
|
Fair Value Measurements
|
|
|
|
|
||||||||||||||
(Dollars in millions)
|
Level 1
(1)
|
|
Level 2
(1)
|
|
Level 3
|
|
Netting
Adjustments
(2)
|
|
Assets/Liabilities
at Fair Value
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Federal funds sold and securities borrowed or purchased under agreements to resell
|
$
|
—
|
|
|
$
|
98,670
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
98,670
|
|
Trading account assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency securities
|
57,655
|
|
|
29,319
|
|
|
—
|
|
|
—
|
|
|
86,974
|
|
|||||
Corporate securities, trading loans and other
|
1,292
|
|
|
32,882
|
|
|
3,726
|
|
|
—
|
|
|
37,900
|
|
|||||
Equity securities
|
28,144
|
|
|
14,626
|
|
|
545
|
|
|
—
|
|
|
43,315
|
|
|||||
Non-U.S. sovereign debt
|
29,254
|
|
|
13,139
|
|
|
353
|
|
|
—
|
|
|
42,746
|
|
|||||
Mortgage trading loans and ABS
|
—
|
|
|
11,905
|
|
|
4,935
|
|
|
—
|
|
|
16,840
|
|
|||||
Total trading account assets
|
116,345
|
|
|
101,871
|
|
|
9,559
|
|
|
—
|
|
|
227,775
|
|
|||||
Derivative assets
(3)
|
2,997
|
|
|
1,372,398
|
|
|
8,073
|
|
|
(1,329,971
|
)
|
|
53,497
|
|
|||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities and agency securities
|
21,514
|
|
|
2,958
|
|
|
—
|
|
|
—
|
|
|
24,472
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
—
|
|
|
188,149
|
|
|
—
|
|
|
—
|
|
|
188,149
|
|
|||||
Agency-collateralized mortgage obligations
|
—
|
|
|
37,538
|
|
|
—
|
|
|
—
|
|
|
37,538
|
|
|||||
Non-agency residential
|
—
|
|
|
9,494
|
|
|
—
|
|
|
—
|
|
|
9,494
|
|
|||||
Non-agency commercial
|
—
|
|
|
3,914
|
|
|
10
|
|
|
—
|
|
|
3,924
|
|
|||||
Non-U.S. securities
|
2,637
|
|
|
2,981
|
|
|
—
|
|
|
—
|
|
|
5,618
|
|
|||||
Corporate/Agency bonds
|
—
|
|
|
1,358
|
|
|
92
|
|
|
—
|
|
|
1,450
|
|
|||||
Other taxable securities
|
20
|
|
|
8,180
|
|
|
3,928
|
|
|
—
|
|
|
12,128
|
|
|||||
Tax-exempt securities
|
—
|
|
|
3,072
|
|
|
1,061
|
|
|
—
|
|
|
4,133
|
|
|||||
Total AFS debt securities
|
24,171
|
|
|
257,644
|
|
|
5,091
|
|
|
—
|
|
|
286,906
|
|
|||||
Other debt securities carried at fair value:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury securities and agency securities
|
491
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
491
|
|
|||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Agency
|
—
|
|
|
13,073
|
|
|
—
|
|
|
—
|
|
|
13,073
|
|
|||||
Agency-collateralized mortgage obligations
|
—
|
|
|
929
|
|
|
—
|
|
|
—
|
|
|
929
|
|
|||||
Non-U.S. securities
|
9,151
|
|
|
300
|
|
|
—
|
|
|
—
|
|
|
9,451
|
|
|||||
Total other debt securities carried at fair value
|
9,642
|
|
|
14,302
|
|
|
—
|
|
|
—
|
|
|
23,944
|
|
|||||
Loans and leases
|
—
|
|
|
6,715
|
|
|
2,287
|
|
|
—
|
|
|
9,002
|
|
|||||
Mortgage servicing rights
|
—
|
|
|
—
|
|
|
5,716
|
|
|
—
|
|
|
5,716
|
|
|||||
Loans held-for-sale
|
—
|
|
|
8,926
|
|
|
2,733
|
|
|
—
|
|
|
11,659
|
|
|||||
Other assets
|
18,535
|
|
|
4,826
|
|
|
3,129
|
|
|
—
|
|
|
26,490
|
|
|||||
Total assets
|
$
|
171,690
|
|
|
$
|
1,865,352
|
|
|
$
|
36,588
|
|
|
$
|
(1,329,971
|
)
|
|
$
|
743,659
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing deposits in U.S. offices
|
$
|
—
|
|
|
$
|
2,262
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,262
|
|
Federal funds purchased and securities loaned or sold under agreements to repurchase
|
—
|
|
|
42,639
|
|
|
—
|
|
|
—
|
|
|
42,639
|
|
|||||
Trading account liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency securities
|
22,351
|
|
|
1,079
|
|
|
—
|
|
|
—
|
|
|
23,430
|
|
|||||
Equity securities
|
19,852
|
|
|
2,640
|
|
|
—
|
|
|
—
|
|
|
22,492
|
|
|||||
Non-U.S. sovereign debt
|
18,875
|
|
|
1,369
|
|
|
—
|
|
|
—
|
|
|
20,244
|
|
|||||
Corporate securities and other
|
487
|
|
|
6,870
|
|
|
64
|
|
|
—
|
|
|
7,421
|
|
|||||
Total trading account liabilities
|
61,565
|
|
|
11,958
|
|
|
64
|
|
|
—
|
|
|
73,587
|
|
|||||
Derivative liabilities
(3)
|
2,859
|
|
|
1,355,309
|
|
|
6,605
|
|
|
(1,318,757
|
)
|
|
46,016
|
|
|||||
Short-term borrowings
|
—
|
|
|
4,074
|
|
|
—
|
|
|
—
|
|
|
4,074
|
|
|||||
Accrued expenses and other liabilities
|
15,457
|
|
|
1,122
|
|
|
15
|
|
|
—
|
|
|
16,594
|
|
|||||
Long-term debt
|
—
|
|
|
46,860
|
|
|
2,301
|
|
|
—
|
|
|
49,161
|
|
|||||
Total liabilities
|
$
|
79,881
|
|
|
$
|
1,464,224
|
|
|
$
|
8,985
|
|
|
$
|
(1,318,757
|
)
|
|
$
|
234,333
|
|
(1)
|
During
2012
,
$2.0 billion
and
$350 million
of assets and liabilities were transferred from Level 1 to Level 2, and
$785 million
and
$40 million
of assets and liabilities were transferred from Level 2 to Level 1. Of the asset transfers from Level 1 to Level 2,
$940 million
was due to a restriction that became effective for a private equity investment during 2012, while
$535 million
of the transfers from Level 2 to Level 1 was due to the lapse of this restriction during 2012. The remaining transfers were the result of additional information associated with certain equities, derivative contracts and private equity investments.
|
(2)
|
Amounts represent the impact of legally enforceable master netting agreements and also cash collateral held or placed with the same counterparties.
|
(3)
|
For further disaggregation of derivative assets and liabilities, see
Note 3 – Derivatives
.
|
Level 3 – Fair Value Measurements
(1)
|
||||||||||||||||||||||||||||||
|
Three Months Ended March 31, 2013
|
|||||||||||||||||||||||||||||
|
|
|
|
Gross
|
|
|
|
|||||||||||||||||||||||
(Dollars in millions)
|
Balance
January 1
2013
|
Gains
(Losses) in
Earnings
|
Gains
(Losses) in
OCI
|
Purchases
|
Sales
|
Issuances
|
Settlements
|
Gross
Transfers
into
Level 3
|
Gross
Transfers
out of
Level 3
|
Balance March 31
2013 |
||||||||||||||||||||
Trading account assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Corporate securities, trading loans and other
|
$
|
3,726
|
|
$
|
88
|
|
$
|
—
|
|
$
|
805
|
|
$
|
(966
|
)
|
$
|
—
|
|
$
|
(140
|
)
|
$
|
218
|
|
$
|
(124
|
)
|
$
|
3,607
|
|
Equity securities
|
545
|
|
42
|
|
—
|
|
29
|
|
(109
|
)
|
—
|
|
—
|
|
8
|
|
(18
|
)
|
497
|
|
||||||||||
Non-U.S. sovereign debt
|
353
|
|
51
|
|
—
|
|
15
|
|
(1
|
)
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
417
|
|
||||||||||
Mortgage trading loans and ABS
|
4,935
|
|
162
|
|
—
|
|
653
|
|
(643
|
)
|
—
|
|
(631
|
)
|
5
|
|
(1
|
)
|
4,480
|
|
||||||||||
Total trading account assets
|
9,559
|
|
343
|
|
—
|
|
1,502
|
|
(1,719
|
)
|
—
|
|
(771
|
)
|
231
|
|
(144
|
)
|
9,001
|
|
||||||||||
Net derivative assets
(2)
|
1,468
|
|
293
|
|
—
|
|
179
|
|
(466
|
)
|
—
|
|
(660
|
)
|
52
|
|
197
|
|
1,063
|
|
||||||||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Non-agency commercial MBS
|
10
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
10
|
|
||||||||||
Non-U.S. securities
|
—
|
|
—
|
|
—
|
|
1
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1
|
|
||||||||||
Corporate/Agency bonds
|
92
|
|
—
|
|
4
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
96
|
|
||||||||||
Other taxable securities
|
3,928
|
|
—
|
|
2
|
|
243
|
|
—
|
|
—
|
|
(128
|
)
|
—
|
|
—
|
|
4,045
|
|
||||||||||
Tax-exempt securities
|
1,061
|
|
1
|
|
3
|
|
—
|
|
—
|
|
—
|
|
(24
|
)
|
—
|
|
—
|
|
1,041
|
|
||||||||||
Total AFS debt securities
|
5,091
|
|
1
|
|
9
|
|
244
|
|
—
|
|
—
|
|
(152
|
)
|
—
|
|
—
|
|
5,193
|
|
||||||||||
Loans and leases
(3, 4)
|
2,287
|
|
51
|
|
—
|
|
71
|
|
—
|
|
5
|
|
(41
|
)
|
—
|
|
(10
|
)
|
2,363
|
|
||||||||||
Mortgage servicing rights
(4)
|
5,716
|
|
434
|
|
—
|
|
—
|
|
(183
|
)
|
123
|
|
(314
|
)
|
—
|
|
—
|
|
5,776
|
|
||||||||||
Loans held-for-sale
(3)
|
2,733
|
|
(39
|
)
|
—
|
|
—
|
|
(210
|
)
|
—
|
|
(101
|
)
|
22
|
|
—
|
|
2,405
|
|
||||||||||
Other assets
(5)
|
3,129
|
|
(448
|
)
|
—
|
|
17
|
|
(27
|
)
|
—
|
|
(42
|
)
|
—
|
|
—
|
|
2,629
|
|
||||||||||
Trading account liabilities – Corporate securities and other
|
(64
|
)
|
—
|
|
—
|
|
7
|
|
(14
|
)
|
—
|
|
—
|
|
(8
|
)
|
21
|
|
(58
|
)
|
||||||||||
Accrued expenses and other liabilities
(3)
|
(15
|
)
|
29
|
|
—
|
|
—
|
|
—
|
|
(586
|
)
|
116
|
|
—
|
|
1
|
|
(455
|
)
|
||||||||||
Long-term debt
(3)
|
(2,301
|
)
|
11
|
|
—
|
|
89
|
|
(4
|
)
|
(36
|
)
|
60
|
|
(381
|
)
|
207
|
|
(2,355
|
)
|
(1)
|
Assets (liabilities). For assets, increase / (decrease) to Level 3 and for liabilities, (increase) / decrease to Level 3.
|
(2)
|
Net derivatives include derivative assets of
$8.0 billion
and derivative liabilities of
$6.9 billion
.
|
(3)
|
Amounts represent instruments that are accounted for under the fair value option.
|
(4)
|
Issuances represent loan originations and mortgage servicing rights retained following securitizations or whole loan sales.
|
(5)
|
Other assets is primarily comprised of net monoline exposure to a single counterparty and private equity investments.
|
Level 3 – Fair Value Measurements
(1)
|
||||||||||||||||||||||||||||||
|
Three Months Ended March 31, 2012
|
|||||||||||||||||||||||||||||
|
|
|
|
Gross
|
|
|
|
|||||||||||||||||||||||
(Dollars in millions)
|
Balance
January 1
2012
|
Gains
(Losses) in
Earnings
|
Gains
(Losses) in
OCI
|
Purchases
|
Sales
|
Issuances
|
Settlements
|
Gross
Transfers
into
Level 3
|
Gross
Transfers
out of
Level 3
|
Balance March 31
2012 |
||||||||||||||||||||
Trading account assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Corporate securities, trading loans and other
|
$
|
6,880
|
|
$
|
93
|
|
$
|
—
|
|
$
|
675
|
|
$
|
(1,065
|
)
|
$
|
—
|
|
$
|
(189
|
)
|
$
|
59
|
|
$
|
(452
|
)
|
$
|
6,001
|
|
Equity securities
|
544
|
|
15
|
|
—
|
|
79
|
|
(109
|
)
|
—
|
|
(10
|
)
|
8
|
|
(2
|
)
|
525
|
|
||||||||||
Non-U.S. sovereign debt
|
342
|
|
24
|
|
—
|
|
273
|
|
(81
|
)
|
—
|
|
—
|
|
—
|
|
(12
|
)
|
546
|
|
||||||||||
Mortgage trading loans and ABS
|
3,689
|
|
99
|
|
—
|
|
184
|
|
(455
|
)
|
—
|
|
(89
|
)
|
742
|
|
(158
|
)
|
4,012
|
|
||||||||||
Total trading account assets
|
11,455
|
|
231
|
|
—
|
|
1,211
|
|
(1,710
|
)
|
—
|
|
(288
|
)
|
809
|
|
(624
|
)
|
11,084
|
|
||||||||||
Net derivative assets
(2)
|
5,866
|
|
(837
|
)
|
—
|
|
359
|
|
(321
|
)
|
—
|
|
(634
|
)
|
106
|
|
(352
|
)
|
4,187
|
|
||||||||||
AFS debt securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Mortgage-backed securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Agency
|
37
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
—
|
|
—
|
|
33
|
|
||||||||||
Non-agency residential
|
860
|
|
(69
|
)
|
19
|
|
—
|
|
(293
|
)
|
—
|
|
—
|
|
—
|
|
(488
|
)
|
29
|
|
||||||||||
Non-agency commercial
|
40
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(2
|
)
|
—
|
|
—
|
|
38
|
|
||||||||||
Corporate/Agency bonds
|
162
|
|
(2
|
)
|
—
|
|
(2
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
(27
|
)
|
131
|
|
||||||||||
Other taxable securities
|
4,265
|
|
7
|
|
17
|
|
362
|
|
—
|
|
—
|
|
(418
|
)
|
—
|
|
(58
|
)
|
4,175
|
|
||||||||||
Tax-exempt securities
|
2,648
|
|
26
|
|
18
|
|
—
|
|
(35
|
)
|
—
|
|
(762
|
)
|
—
|
|
—
|
|
1,895
|
|
||||||||||
Total AFS debt securities
|
8,012
|
|
(38
|
)
|
54
|
|
360
|
|
(328
|
)
|
—
|
|
(1,186
|
)
|
—
|
|
(573
|
)
|
6,301
|
|
||||||||||
Loans and leases
(3, 4)
|
2,744
|
|
164
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(117
|
)
|
—
|
|
(9
|
)
|
2,782
|
|
||||||||||
Mortgage servicing rights
(4)
|
7,378
|
|
655
|
|
—
|
|
—
|
|
—
|
|
77
|
|
(521
|
)
|
—
|
|
—
|
|
7,589
|
|
||||||||||
Loans held-for-sale
(3)
|
3,387
|
|
169
|
|
—
|
|
4
|
|
—
|
|
—
|
|
(97
|
)
|
31
|
|
(632
|
)
|
2,862
|
|
||||||||||
Other assets
(5)
|
4,235
|
|
(32
|
)
|
—
|
|
43
|
|
(581
|
)
|
—
|
|
(167
|
)
|
—
|
|
(11
|
)
|
3,487
|
|
||||||||||
Trading account liabilities – Corporate securities and other
|
(114
|
)
|
—
|
|
—
|
|
48
|
|
(27
|
)
|
—
|
|
—
|
|
(65
|
)
|
34
|
|
(124
|
)
|
||||||||||
Accrued expenses and other liabilities
(3)
|
(14
|
)
|
3
|
|
—
|
|
5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3
|
|
(3
|
)
|
||||||||||
Long-term debt
(3)
|
(2,943
|
)
|
(241
|
)
|
—
|
|
76
|
|
(33
|
)
|
(65
|
)
|
433
|
|
(532
|
)
|
805
|
|
(2,500
|
)
|
(1)
|
Assets (liabilities). For assets, increase / (decrease) to Level 3 and for liabilities, (increase) / decrease to Level 3.
|
(2)
|
Net derivatives include derivative assets of
$11.3 billion
and derivative liabilities of
$7.1 billion
.
|
(3)
|
Amounts represent instruments that are accounted for under the fair value option.
|
(4)
|
Issuances represent loan originations and mortgage servicing rights retained following securitizations or whole loan sales.
|
(5)
|
Other assets is primarily comprised of net monoline exposure to a single counterparty and private equity investments.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Mortgage banking income does not reflect the impact of Level 1 and Level 2 hedges on MSRs.
|
(2)
|
Amounts represent instruments that are accounted for under the fair value option.
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Mortgage banking income does not reflect the impact of Level 1 and Level 2 hedges on MSRs.
|
(2)
|
Amounts represent instruments that are accounted for under the fair value option.
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page
214
: Trading account assets – Corporate securities, trading loans and other of
$3.6 billion
, Trading account assets – Mortgage trading loans and ABS of
$4.5 billion
, AFS debt securities – Other taxable securities of
$4.0 billion
, AFS debt securities – Tax-exempt securities of
$1.0 billion
, Loans and leases of
$2.4 billion
, LHFS of
$2.4 billion
and Other assets of
$1.5 billion
.
|
(2)
|
Includes models such as Monte Carlo simulation and Black-Scholes.
|
(3)
|
Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates.
|
Quantitative Information about Level 3 Fair Value Measurements for Loans, Securities and Structured Liabilities at December 31, 2012
|
|
|||||||
(Dollars in millions)
|
|
|
Inputs
|
|||||
Financial Instrument
|
Fair Value
|
Valuation Technique
|
Significant Unobservable
Inputs
|
Ranges of Inputs
|
Weighted Average
|
|||
Loans and Securities
(1)
|
|
|
|
|
|
|||
Instruments backed by residential real estate assets
|
$
|
4,478
|
|
Discounted cash flow, Market comparables
|
Yield
|
2% to 25%
|
6
|
%
|
Trading account assets – Mortgage trading loans and ABS
|
459
|
|
Prepayment speed
|
1% to 30% CPR
|
10
|
%
|
||
Loans and leases
|
1,286
|
|
Default rate
|
0% to 44% CDR
|
6
|
%
|
||
Loans held-for-sale
|
2,733
|
|
Loss severity
|
6% to 85%
|
43
|
%
|
||
Instruments backed by commercial real estate assets
|
$
|
1,910
|
|
Discounted cash flow
|
Yield
|
5%
|
n/a
|
|
Other assets
|
1,910
|
|
Loss severity
|
51% to 100%
|
88
|
%
|
||
Commercial loans, debt securities and other
|
$
|
10,778
|
|
Discounted cash flow, Market comparables
|
Yield
|
0% to 25%
|
4
|
%
|
Trading account assets – Corporate securities, trading loans and other
|
2,289
|
|
Enterprise value/EBITDA multiple
|
2x to 11x
|
5x
|
|
||
Trading account assets – Mortgage trading loans and ABS
|
4,476
|
|
Prepayment speed
|
5% to 30%
|
20
|
%
|
||
AFS debt securities – Other taxable securities
|
3,012
|
|
Default rate
|
1% to 5%
|
4
|
%
|
||
Loans and leases
|
1,001
|
|
Loss severity
|
25% to 40%
|
35
|
%
|
||
Auction rate securities
|
$
|
3,414
|
|
Discounted cash flow, Market comparables
|
Discount rate
|
4% to 5%
|
4
|
%
|
Trading account assets – Corporate securities, trading loans and other
|
1,437
|
|
Projected tender price/Re-financing level
|
50% to 100%
|
92
|
%
|
||
AFS debt securities – Other taxable securities
|
916
|
|
|
|
||||
AFS debt securities – Tax-exempt securities
|
1,061
|
|
|
|
|
|||
Structured liabilities
|
|
|
|
|
|
|||
Long-term debt
(2)
|
$
|
(2,301
|
)
|
Industry standard derivative pricing
(3)
|
Equity correlation
|
30% to 97%
|
n/m
|
|
|
|
Long-dated volatilities
|
20% to 70%
|
n/m
|
|
|||
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements for Net Derivative Assets at December 31, 2012
|
||||||
(Dollars in millions)
|
|
|
Inputs
|
|||
Financial Instrument
|
Fair Value
|
Valuation Technique
|
Significant Unobservable
Inputs
|
Ranges of Inputs
|
||
Net derivatives assets
|
|
|
|
|
||
Credit derivatives
|
$
|
2,327
|
|
Discounted cash flow, Stochastic recovery correlation model
|
Yield
|
2% to 25%
|
|
|
Credit spreads
|
58 bps to 615 bps
|
|||
|
|
Upfront points
|
25 points to 99 points
|
|||
|
|
Spread to index
|
-2,080 bps to 1,972 bps
|
|||
|
|
Credit correlation
|
19% to 75%
|
|||
|
|
Prepayment speed
|
3% to 30% CPR
|
|||
|
|
Default rate
|
0% to 8% CDR
|
|||
|
|
Loss severity
|
25% to 42%
|
|||
Equity derivatives
|
$
|
(1,295
|
)
|
Industry standard derivative pricing
(3)
|
Equity correlation
|
30% to 97%
|
|
|
Long-dated volatilities
|
20% to 70%
|
|||
|
|
|
|
|||
Commodity derivatives
|
$
|
(5
|
)
|
Discounted cash flow
|
Natural gas forward price
|
$3/MMBtu to $12/MMBtu
|
Interest rate derivatives
|
$
|
441
|
|
Industry standard derivative pricing
(4)
|
Correlation (IR/IR)
|
15% to 99%
|
|
|
Correlation (FX/IR)
|
-65% to 50%
|
|||
|
|
Long-dated inflation rates
|
2% to 3%
|
|||
|
|
Long-dated inflation volatilities
|
0% to 1%
|
|||
|
|
Long-dated volatilities (FX)
|
5% to 36%
|
|||
|
|
Long-dated swap rates
|
8% to 10%
|
|||
Total net derivative assets
|
$
|
1,468
|
|
|
|
|
(1)
|
The categories are aggregated based upon product type which differs from financial statement classification. The following is a reconciliation to the line items in the table on page
215
: Trading account assets – Corporate securities, trading loans and other of
$3.7 billion
, Trading account assets – Mortgage trading loans and ABS of
$4.9 billion
, AFS debt securities – Other taxable securities of
$3.9 billion
, AFS debt securities – Tax-exempt securities of
$1.1 billion
, Loans and leases of
$2.3 billion
, LHFS of
$2.7 billion
and Other assets of
$1.9 billion
.
|
(2)
|
For additional information on the ranges of inputs for equity correlation and long-dated volatilities, see the qualitative equity derivatives discussion on page
220
.
|
(3)
|
Includes models such as Monte Carlo simulation and Black-Scholes.
|
(4)
|
Includes models such as Monte Carlo simulation, Black-Scholes and other methods that model the joint dynamics of interest, inflation and foreign exchange rates.
|
Nonrecurring Fair Value
|
(1)
|
Losses represent charge-offs on real estate-secured loans.
|
(2)
|
Amounts are included in other assets on the Consolidated Balance Sheet and represent fair value and related losses on foreclosed properties that were written down subsequent to their initial classification as foreclosed properties.
|
NOTE 17 – Fair Value Option
|
Fair Value Option Elections
|
|||||||||||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||
(Dollars in millions)
|
Fair Value
Carrying
Amount
|
|
Contractual
Principal
Outstanding
|
|
Fair Value
Carrying
Amount
Less Unpaid
Principal
|
|
Fair Value
Carrying
Amount
|
|
Contractual
Principal
Outstanding
|
|
Fair Value
Carrying
Amount
Less Unpaid
Principal
|
||||||||||||
Loans reported as trading account assets
(1)
|
$
|
2,182
|
|
|
$
|
3,490
|
|
|
$
|
(1,308
|
)
|
|
$
|
1,663
|
|
|
$
|
2,879
|
|
|
$
|
(1,216
|
)
|
Trading inventory – other
|
2,451
|
|
|
n/a
|
|
|
n/a
|
|
|
2,170
|
|
|
n/a
|
|
|
n/a
|
|
||||||
Consumer and commercial loans
|
8,820
|
|
|
9,184
|
|
|
(364
|
)
|
|
9,002
|
|
|
9,576
|
|
|
(574
|
)
|
||||||
Loans held-for-sale
|
13,887
|
|
|
14,575
|
|
|
(688
|
)
|
|
11,659
|
|
|
12,676
|
|
|
(1,017
|
)
|
||||||
Securities financing agreements
|
142,515
|
|
|
142,059
|
|
|
456
|
|
|
141,309
|
|
|
140,791
|
|
|
518
|
|
||||||
Other assets
|
449
|
|
|
270
|
|
|
179
|
|
|
453
|
|
|
270
|
|
|
183
|
|
||||||
Long-term deposits
|
2,130
|
|
|
1,931
|
|
|
199
|
|
|
2,262
|
|
|
2,046
|
|
|
216
|
|
||||||
Asset-backed secured financings
|
767
|
|
|
1,152
|
|
|
(385
|
)
|
|
741
|
|
|
1,176
|
|
|
(435
|
)
|
||||||
Unfunded loan commitments
|
468
|
|
|
n/a
|
|
|
n/a
|
|
|
528
|
|
|
n/a
|
|
|
n/a
|
|
||||||
Short-term borrowings
|
2,401
|
|
|
2,401
|
|
|
—
|
|
|
3,333
|
|
|
3,333
|
|
|
—
|
|
||||||
Accrued expenses and other liabilities
|
443
|
|
|
443
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Long-term debt
(2)
|
52,361
|
|
|
52,535
|
|
|
(174
|
)
|
|
49,161
|
|
|
50,792
|
|
|
(1,631
|
)
|
(1)
|
A significant portion of the loans reported as trading account assets are distressed loans which trade and were purchased at a deep discount to par, and the remainder are loans with a fair value near contractual principal outstanding.
|
(2)
|
The majority of the difference between the fair value carrying amount and contractual principal outstanding at
March 31, 2013
and
December 31, 2012
relates to the impact of the Corporation's credit spreads as well as the fair value of the embedded derivative, where applicable.
|
(1)
|
Includes the value of IRLCs on loans funded, including those already sold.
|
(2)
|
The majority of the net gains (losses) in trading account profits (losses) relate to the embedded derivative in structured liabilities and are offset by gains (losses) on derivatives and securities that hedge these liabilities. The net gains (losses) in other income (loss) relate to the impact on structured liabilities of changes in the Corporation's credit spread.
|
|
|
|
|
|
|
|
|
NOTE 18 – Fair Value of Financial Instruments
|
Fair Value of Financial Instruments
|
|||||||||||||||||||||||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||||||||||||||||||||||
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||||||||||||||
(Dollars in millions)
|
Carrying
Value
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Carrying
Value
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Loans
|
$
|
865,769
|
|
|
$
|
103,505
|
|
|
$
|
782,266
|
|
|
$
|
885,771
|
|
|
$
|
859,875
|
|
|
$
|
105,119
|
|
|
$
|
772,761
|
|
|
$
|
877,880
|
|
Loans held-for-sale
|
19,278
|
|
|
15,655
|
|
|
3,620
|
|
|
19,275
|
|
|
19,413
|
|
|
15,087
|
|
|
4,321
|
|
|
19,408
|
|
||||||||
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Deposits
|
1,095,183
|
|
|
1,095,688
|
|
|
—
|
|
|
1,095,688
|
|
|
1,105,261
|
|
|
1,105,669
|
|
|
—
|
|
|
1,105,669
|
|
||||||||
Long-term debt
|
279,641
|
|
|
287,367
|
|
|
2,355
|
|
|
289,722
|
|
|
275,585
|
|
|
281,173
|
|
|
2,301
|
|
|
283,474
|
|
NOTE 19 – Mortgage Servicing Rights
|
Rollforward of Mortgage Servicing Rights
|
|
|
|
||||
|
Three Months Ended
March 31 |
||||||
(Dollars in millions)
|
2013
|
|
2012
|
||||
Balance, January 1
|
$
|
5,716
|
|
|
$
|
7,378
|
|
Additions
|
123
|
|
|
77
|
|
||
Sales
|
(183
|
)
|
|
—
|
|
||
Impact of customer payments
(1)
|
(314
|
)
|
|
(521
|
)
|
||
Impact of changes in interest rates and other market factors
(2)
|
332
|
|
|
925
|
|
||
Model and other cash flow assumption changes:
(3)
|
|
|
|
||||
Projected cash flows, primarily due to increases in costs to service loans
|
(134
|
)
|
|
(273
|
)
|
||
Impact of changes in the Home Price Index
|
(79
|
)
|
|
15
|
|
||
Impact of changes to the prepayment model
|
175
|
|
|
—
|
|
||
Other model changes
|
140
|
|
|
(12
|
)
|
||
Balance, March 31
|
$
|
5,776
|
|
|
$
|
7,589
|
|
Mortgage loans serviced for investors (in billions)
|
$
|
949
|
|
|
$
|
1,313
|
|
(1)
|
Represents the change in the market value of the MSR asset due to the impact of customer payments received during the period.
|
(2)
|
These amounts reflect the changes in modeled MSR fair value primarily due to observed changes in interest rates, volatility, spreads and the shape of the forward swap curve, as well as changes in OAS and prepayment rates.
|
(3)
|
These amounts reflect periodic adjustments to the valuation model as well as changes in certain cash flow assumptions such as cost to service and ancillary income per loan. For the
three months ended March 31, 2013 and 2012
, included in other model changes is the effect to the MSR cash flow assumptions caused by changes in spreads between primary and secondary markets.
|
Significant Economic Assumptions
|
|||||||||||
|
March 31, 2013
|
|
December 31, 2012
|
||||||||
|
Fixed
|
|
Adjustable
|
|
Fixed
|
|
Adjustable
|
||||
Weighted-average OAS
|
3.98
|
%
|
|
6.65
|
%
|
|
4.00
|
%
|
|
6.63
|
%
|
Weighted-average life, in years
|
4.05
|
|
|
2.10
|
|
|
3.65
|
|
|
2.10
|
|
Sensitivity Impacts
|
|||||||||||||
|
March 31, 2013
|
||||||||||||
|
Change in Weighted-average Lives
|
|
|
||||||||||
(Dollars in millions)
|
Fixed
|
|
Adjustable
|
|
Change in
Fair Value
|
||||||||
Prepayment rates
|
|
|
|
|
|
|
|
|
|
||||
Impact of 10% decrease
|
0.31
|
|
|
years
|
|
0.21
|
|
|
years
|
|
$
|
462
|
|
Impact of 20% decrease
|
0.67
|
|
|
|
|
0.45
|
|
|
|
|
984
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impact of 10% increase
|
(0.28
|
)
|
|
|
|
(0.18
|
)
|
|
|
|
(412
|
)
|
|
Impact of 20% increase
|
(0.52
|
)
|
|
|
|
(0.34
|
)
|
|
|
|
(781
|
)
|
|
OAS level
|
|
|
|
|
|
|
|
|
|
||||
Impact of 100 bps decrease
|
|
|
|
|
|
|
|
|
$
|
277
|
|
||
Impact of 200 bps decrease
|
|
|
|
|
|
|
|
|
578
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||
Impact of 100 bps increase
|
|
|
|
|
|
|
|
|
(255
|
)
|
|||
Impact of 200 bps increase
|
|
|
|
|
|
|
|
|
(490
|
)
|
NOTE 20 – Business Segment Information
|
Basis of Presentation
|
Business Segments
|
|
|
|
|
|||||||||||||||||||
At and for the Three Months Ended March 31
|
|
|
|
|
|||||||||||||||||||
|
Total Corporation
(1)
|
|
Consumer & Business Banking
|
|
Consumer Real Estate Services
|
||||||||||||||||||
(Dollars in millions)
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
Net interest income (FTE basis)
|
$
|
10,875
|
|
|
$
|
11,053
|
|
|
$
|
4,820
|
|
|
$
|
5,070
|
|
|
$
|
743
|
|
|
$
|
768
|
|
Noninterest income
|
12,533
|
|
|
11,432
|
|
|
2,394
|
|
|
2,352
|
|
|
1,569
|
|
|
1,896
|
|
||||||
Total revenue, net of interest expense (FTE basis)
|
23,408
|
|
|
22,485
|
|
|
7,214
|
|
|
7,422
|
|
|
2,312
|
|
|
2,664
|
|
||||||
Provision for credit losses
|
1,713
|
|
|
2,418
|
|
|
906
|
|
|
877
|
|
|
335
|
|
|
507
|
|
||||||
Amortization of intangibles
|
276
|
|
|
319
|
|
|
127
|
|
|
158
|
|
|
—
|
|
|
—
|
|
||||||
Other noninterest expense
|
19,224
|
|
|
18,822
|
|
|
3,981
|
|
|
4,105
|
|
|
5,407
|
|
|
3,884
|
|
||||||
Income (loss) before income taxes
|
2,195
|
|
|
926
|
|
|
2,200
|
|
|
2,282
|
|
|
(3,430
|
)
|
|
(1,727
|
)
|
||||||
Income tax expense (benefit) (FTE basis)
|
712
|
|
|
273
|
|
|
818
|
|
|
837
|
|
|
(1,273
|
)
|
|
(589
|
)
|
||||||
Net income (loss)
|
$
|
1,483
|
|
|
$
|
653
|
|
|
$
|
1,382
|
|
|
$
|
1,445
|
|
|
$
|
(2,157
|
)
|
|
$
|
(1,138
|
)
|
Period-end total assets
|
$
|
2,174,819
|
|
|
$
|
2,181,449
|
|
|
$
|
589,410
|
|
|
$
|
541,578
|
|
|
$
|
129,116
|
|
|
$
|
157,027
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
Global Banking
|
|
Global Markets
|
||||||||||||||||||
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
Net interest income (FTE basis)
|
|
|
|
|
$
|
2,351
|
|
|
$
|
2,296
|
|
|
$
|
1,111
|
|
|
$
|
910
|
|
||||
Noninterest income
|
|
|
|
|
1,874
|
|
|
1,940
|
|
|
3,761
|
|
|
3,501
|
|
||||||||
Total revenue, net of interest expense (FTE basis)
|
|
|
|
|
4,225
|
|
|
4,236
|
|
|
4,872
|
|
|
4,411
|
|
||||||||
Provision for credit losses
|
|
|
|
|
195
|
|
|
(245
|
)
|
|
5
|
|
|
(13
|
)
|
||||||||
Amortization of intangibles
|
|
|
|
|
16
|
|
|
20
|
|
|
16
|
|
|
15
|
|
||||||||
Other noninterest expense
|
|
|
|
|
1,884
|
|
|
1,977
|
|
|
3,060
|
|
|
3,224
|
|
||||||||
Income before income taxes
|
|
|
|
|
2,130
|
|
|
2,484
|
|
|
1,791
|
|
|
1,185
|
|
||||||||
Income tax expense (FTE basis)
|
|
|
|
|
792
|
|
|
911
|
|
|
622
|
|
|
357
|
|
||||||||
Net income
|
|
|
|
|
$
|
1,338
|
|
|
$
|
1,573
|
|
|
$
|
1,169
|
|
|
$
|
828
|
|
||||
Period-end total assets
|
|
|
|
|
$
|
340,281
|
|
|
$
|
314,681
|
|
|
$
|
625,434
|
|
|
$
|
563,130
|
|
||||
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
Global Wealth &
Investment Management |
|
All Other
|
||||||||||||||||||
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||
Net interest income (FTE basis)
|
|
|
|
|
$
|
1,596
|
|
|
$
|
1,531
|
|
|
$
|
254
|
|
|
$
|
478
|
|
||||
Noninterest income (loss)
|
|
|
|
|
2,825
|
|
|
2,616
|
|
|
110
|
|
|
(873
|
)
|
||||||||
Total revenue, net of interest expense (FTE basis)
|
|
|
|
|
4,421
|
|
|
4,147
|
|
|
364
|
|
|
(395
|
)
|
||||||||
Provision for credit losses
|
|
|
|
|
22
|
|
|
46
|
|
|
250
|
|
|
1,246
|
|
||||||||
Amortization of intangibles
|
|
|
|
|
99
|
|
|
105
|
|
|
18
|
|
|
21
|
|
||||||||
Other noninterest expense
|
|
|
|
|
3,154
|
|
|
3,127
|
|
|
1,738
|
|
|
2,505
|
|
||||||||
Income (loss) before income taxes
|
|
|
|
|
1,146
|
|
|
869
|
|
|
(1,642
|
)
|
|
(4,167
|
)
|
||||||||
Income tax expense (benefit) (FTE basis)
|
|
|
|
|
426
|
|
|
319
|
|
|
(673
|
)
|
|
(1,562
|
)
|
||||||||
Net income (loss)
|
|
|
|
|
$
|
720
|
|
|
$
|
550
|
|
|
$
|
(969
|
)
|
|
$
|
(2,605
|
)
|
||||
Period-end total assets
|
|
|
|
|
$
|
268,263
|
|
|
$
|
263,500
|
|
|
$
|
222,315
|
|
|
$
|
341,533
|
|
(1)
|
There were no material intersegment revenues.
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Segment Reconciliations
|
|
|
||||||
|
|
Three Months Ended March 31
|
||||||
(Dollars in millions)
|
|
2013
|
|
2012
|
||||
Segments' total revenue, net of interest expense (FTE basis)
|
|
$
|
23,044
|
|
|
$
|
22,880
|
|
Adjustments:
|
|
|
|
|
||||
ALM activities
(1)
|
|
(316
|
)
|
|
(1,170
|
)
|
||
Equity investment income
|
|
520
|
|
|
429
|
|
||
Liquidating businesses
|
|
529
|
|
|
569
|
|
||
FTE basis adjustment
|
|
(211
|
)
|
|
(207
|
)
|
||
Other
|
|
(369
|
)
|
|
(223
|
)
|
||
Consolidated revenue, net of interest expense
|
|
$
|
23,197
|
|
|
$
|
22,278
|
|
|
|
|
|
|
||||
Segments' net income
|
|
$
|
2,452
|
|
|
$
|
3,258
|
|
Adjustments, net-of-taxes:
|
|
|
|
|
||||
ALM activities
|
|
(512
|
)
|
|
(1,823
|
)
|
||
Equity investment income
|
|
328
|
|
|
270
|
|
||
Liquidating businesses
|
|
2
|
|
|
44
|
|
||
Other
|
|
(787
|
)
|
|
(1,096
|
)
|
||
Consolidated net income
|
|
$
|
1,483
|
|
|
$
|
653
|
|
|
|
|
|
|
||||
|
|
March 31
|
||||||
|
|
2013
|
|
2012
|
||||
Segments' total assets
|
|
$
|
1,952,504
|
|
|
$
|
1,839,916
|
|
Adjustments:
|
|
|
|
|
||||
ALM activities, including securities portfolio
|
|
693,498
|
|
|
641,385
|
|
||
Equity investments
|
|
4,858
|
|
|
6,182
|
|
||
Liquidating businesses
|
|
29,496
|
|
|
35,954
|
|
||
Elimination of segment asset allocations to match liabilities
|
|
(552,838
|
)
|
|
(496,391
|
)
|
||
Other
|
|
47,301
|
|
|
154,403
|
|
||
Consolidated total assets
|
|
$
|
2,174,819
|
|
|
$
|
2,181,449
|
|
(1)
|
Includes negative fair value adjustments on structured liabilities of
$90 million
and
$3.3 billion
for the
three months ended March 31, 2013 and 2012
.
|
Part II. OTHER INFORMATION
|
Item 1. Legal Proceedings
|
Item 1A. Risk Factors
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
|
|
|
|
|
|
|
Remaining Buyback Authority
|
|||||||||
(Dollars in millions, except per
share information; shares in thousands)
|
Common Shares
Repurchased
|
|
Weighted-Average
Per Share Price
|
|
Shares Purchased as
Part of Publicly
Announced Programs
|
|
Amounts
|
|
Shares
|
|||||||
January 1 - 31, 2013
|
924
|
|
|
$
|
11.57
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
February 1 - 28, 2013
|
26,561
|
|
|
12.13
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
March 1 - 31, 2013
|
1,725
|
|
|
11.99
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Three Months Ended March 31, 2013
|
29,210
|
|
|
12.11
|
|
|
|
|
|
|
|
Item 6. Exhibits
|
||
|
|
|
Exhibit 3(a)
|
|
Amended and Restated Certificate of Incorporation of registrant, as in effect on the date hereof, incorporated by reference to Exhibit 3(a) of registrant's Quarterly Report on Form10-Q (File No. 1-6523) for the quarterly period ended September 30, 2011 filed on November 3, 2011
|
|
|
|
Exhibit 3(b)
|
|
Amended and Restated Bylaws of registrant, as in effect on the date hereof, incorporated by reference to Exhibit 3(b) of registrant's 2010 Annual Report on Form 10-K (File No. 1-6523) filed on February 25, 2011
|
|
|
|
Exhibit 10(a)
|
|
Form of Restricted Stock Units Award Agreement (February 2013 and subsequent grants), including grants to named executive officers
(1)
*, awarded under the Bank of America Corporation Key Associate Stock Plan, as amended and restated effective April 28, 2010
|
|
|
|
Exhibit 10(b)
|
|
Form of Performance Restricted Stock Units Award Agreement (February 2013 and subsequent grants), including grants to named executive officers
(1)
*, awarded under the Bank of America Corporation Key Associate Stock Plan, as amended and restated effective April 28, 2010
|
|
|
|
Exhibit 11
|
|
Earnings Per Share Computation – included in
Note 14 – Earnings Per Common Share
to the Consolidated Financial Statements
(1)
|
|
|
|
Exhibit 12
|
|
Ratio of Earnings to Fixed Charges
(1)
Ratio of Earnings to Fixed Charges and Preferred Dividends
(1)
|
|
|
|
Exhibit 31(a)
|
|
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 31(b)
|
|
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 32(a)
|
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 32(b)
|
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 101.INS
|
|
XBRL Instance Document
(1)
|
|
|
|
Exhibit 101.SCH
|
|
XBRL Taxonomy Extension Schema Document
(1)
|
|
|
|
Exhibit 101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
(1)
|
|
|
|
Exhibit 101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
(1)
|
|
|
|
Exhibit 101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
(1)
|
|
|
|
Exhibit 101.DEF
|
|
XBRL Taxonomy Extension Definitions Linkbase Document
(1)
|
(1)
|
Filed herewith
|
*
|
Exhibit is a management contract or a compensatory plan or arrangement
|
|
|
Bank of America Corporation
Registrant
|
|
||
|
|
|
|
|
|
Date:
|
May 7, 2013
|
|
/s/ Neil A. Cotty
|
|
|
|
|
|
Neil A. Cotty
Chief Accounting Officer
|
|
Exhibit
|
|
Description
|
|
|
|
Exhibit 3(a)
|
|
Amended and Restated Certificate of Incorporation of registrant, as in effect on the date hereof, incorporated by reference to Exhibit 3(a) of registrant's Quarterly Report on Form10-Q (File No. 1-6523) for the quarterly period ended September 30, 2011 filed on November 3, 2011
|
|
|
|
Exhibit 3(b)
|
|
Amended and Restated Bylaws of registrant, as in effect on the date hereof, incorporated by reference to Exhibit 3(b) of registrant's 2010 Annual Report on Form 10-K (File No. 1-6523) filed on February 25, 2011
|
|
|
|
Exhibit 10(a)
|
|
Form of Restricted Stock Units Award Agreement (February 2013 and subsequent grants), including grants to named executive officers
(1)
*, awarded under the Bank of America Corporation Key Associate Stock Plan, as amended and restated effective April 28, 2010
|
|
|
|
Exhibit 10(b)
|
|
Form of Performance Restricted Stock Units Award Agreement (February 2013 and subsequent grants), including grants to named executive officers
(1)
*, awarded under the Bank of America Corporation Key Associate Stock Plan, as amended and restated effective April 28, 2010
|
|
|
|
Exhibit 11
|
|
Earnings Per Share Computation – included in
Note 14 – Earnings Per Common Share
to the Consolidated Financial Statements
(1)
|
|
|
|
Exhibit 12
|
|
Ratio of Earnings to Fixed Charges
(1)
Ratio of Earnings to Fixed Charges and Preferred Dividends
(1)
|
|
|
|
Exhibit 31(a)
|
|
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 31(b)
|
|
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 32(a)
|
|
Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 32(b)
|
|
Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(1)
|
|
|
|
Exhibit 101.INS
|
|
XBRL Instance Document
(1)
|
|
|
|
Exhibit 101.SCH
|
|
XBRL Taxonomy Extension Schema Document
(1)
|
|
|
|
Exhibit 101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
(1)
|
|
|
|
Exhibit 101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
(1)
|
|
|
|
Exhibit 101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
(1)
|
|
|
|
Exhibit 101.DEF
|
|
XBRL Taxonomy Extension Definitions Linkbase Document
(1)
|
(1)
|
Filed herewith
|
*
|
Exhibit is a management contract or a compensatory plan or arrangement
|
1.
|
Review the Award Agreement to ensure you understand its provisions. With each award you receive, provisions of your Award Agreement may change so it is important to review your Award Agreement.
|
2.
|
Print the Award Agreement and file it with your important papers.
|
3.
|
Accept your Award Agreement through the online acceptance process.*
|
4.
|
Designate your beneficiary on the Benefits OnLine
®
Beneficiary tab.
|
5.
|
More detailed information about competitive businesses can be found on Flagscape
®
under Benefits & Pay/Pay & Timekeeping/Stock and Long-Term Cash, to the extent that the competition restriction is applicable to you, as described in this Award Agreement.
|
Granted To :
|
Grant Date :
|
Grant Type :
|
Grant Code :
|
Number Granted :
|
Payment Date*
|
Number of Restricted Stock Units
That Become Earned and Payable
|
First anniversary of Grant Date
|
One-third (1/3) of Award
|
Second anniversary of Grant Date
|
One-third (1/3) of Award
|
Third anniversary of Grant Date
|
One-third (1/3) of Award
|
*Payment will be made as soon as administratively practicable, generally within 30 days after the payment date.
|
Brian T. Moynihan
|
Chief Executive Officer and President
|
1.
|
Review the Award Agreement to ensure you understand its provisions. With each award you receive, provisions of your Award Agreement may change so it is important to review your Award Agreement.
|
2.
|
Print the Award Agreement and file it with your important papers.
|
3.
|
Accept your Award Agreement through the online acceptance process.*
|
4.
|
Designate your beneficiary on the Benefits OnLine
®
Beneficiary tab.
|
5.
|
More detailed information about competitive businesses can be found on Flagscape
®
under Benefits & Pay/Pay & Timekeeping/Stock and Long-Term Cash, to the extent that the competition restriction is applicable to you, as described in this Award Agreement.
|
Granted To :
|
Grant Date :
|
Grant Type :
|
Grant Code :
|
Number Granted :
|
3-year Average ROA
(50% Weighting)
|
3-year Average Growth in TBV
(50% Weighting)
|
||
ROA
|
% Earned Based on Goal Achievement
|
TBV
|
% Earned Based on Goal Achievement
|
Less than 50 bps
|
0%
|
Less than 5.25%
|
0%
|
50 bps
|
33-1/3%
|
5.25%
|
33-1/3%
|
65 bps
|
66-2/3%
|
7%
|
66-2/3%
|
80 bps
|
100%
|
8.5%
|
100%
|
Brian T. Moynihan
|
Chief Executive Officer and President
|
Bank of America Corporation and Subsidiaries
|
|
|
|
|
|
|
|
|
Exhibit 12
|
|
|||||||||||||
Ratio of Earnings to Fixed Charges
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Dividends
|
|||||||||||||||||||||||
|
|
|
Year Ended December 31
|
||||||||||||||||||||
(Dollars in millions)
|
Three Months Ended March 31, 2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||||
Excluding Interest on Deposits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes
|
$
|
1,984
|
|
|
$
|
3,072
|
|
|
$
|
(230
|
)
|
|
$
|
(1,323
|
)
|
|
$
|
4,360
|
|
|
$
|
4,428
|
|
Equity in undistributed earnings (loss) of unconsolidated subsidiaries
|
(46
|
)
|
|
212
|
|
|
596
|
|
|
1,210
|
|
|
(1,833
|
)
|
|
(144
|
)
|
||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
3,055
|
|
|
14,754
|
|
|
18,618
|
|
|
19,977
|
|
|
23,000
|
|
|
25,074
|
|
||||||
1/3 of net rent expense
(1)
|
280
|
|
|
1,092
|
|
|
1,072
|
|
|
1,099
|
|
|
1,110
|
|
|
791
|
|
||||||
Total fixed charges
|
3,335
|
|
|
15,846
|
|
|
19,690
|
|
|
21,076
|
|
|
24,110
|
|
|
25,865
|
|
||||||
Preferred dividend requirements
(2)
|
499
|
|
|
1,080
|
|
|
n/m
|
|
|
802
|
|
|
5,921
|
|
|
1,461
|
|
||||||
Fixed charges and preferred dividends
|
3,834
|
|
|
16,926
|
|
|
19,690
|
|
|
21,878
|
|
|
30,031
|
|
|
27,326
|
|
||||||
Earnings
|
$
|
5,273
|
|
|
$
|
19,130
|
|
|
$
|
20,056
|
|
|
$
|
20,963
|
|
|
$
|
26,637
|
|
|
$
|
30,149
|
|
Ratio of earnings to fixed charges
(3)
|
1.58
|
|
|
1.21
|
|
|
1.02
|
|
|
0.99
|
|
|
1.10
|
|
|
1.17
|
|
||||||
Ratio of earnings to fixed charges and preferred dividends
(3, 4)
|
1.38
|
|
|
1.13
|
|
|
1.02
|
|
|
0.96
|
|
|
0.89
|
|
|
1.10
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
Year Ended December 31
|
||||||||||||||||||||
(Dollars in millions)
|
Three Months Ended March 31, 2013
|
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
||||||||||||
Including Interest on Deposits
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes
|
$
|
1,984
|
|
|
$
|
3,072
|
|
|
$
|
(230
|
)
|
|
$
|
(1,323
|
)
|
|
$
|
4,360
|
|
|
$
|
4,428
|
|
Equity in undistributed earnings (loss) of unconsolidated subsidiaries
|
(46
|
)
|
|
212
|
|
|
596
|
|
|
1,210
|
|
|
(1,833
|
)
|
|
(144
|
)
|
||||||
Fixed charges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest expense
|
3,437
|
|
|
16,744
|
|
|
21,620
|
|
|
23,974
|
|
|
30,807
|
|
|
40,324
|
|
||||||
1/3 of net rent expense
(1)
|
280
|
|
|
1,092
|
|
|
1,072
|
|
|
1,099
|
|
|
1,110
|
|
|
791
|
|
||||||
Total fixed charges
|
3,717
|
|
|
17,836
|
|
|
22,692
|
|
|
25,073
|
|
|
31,917
|
|
|
41,115
|
|
||||||
Preferred dividend requirements
(2)
|
499
|
|
|
1,080
|
|
|
n/m
|
|
|
802
|
|
|
5,921
|
|
|
1,461
|
|
||||||
Fixed charges and preferred dividends
|
4,216
|
|
|
18,916
|
|
|
22,692
|
|
|
25,875
|
|
|
37,838
|
|
|
42,576
|
|
||||||
Earnings
|
$
|
5,655
|
|
|
$
|
21,120
|
|
|
$
|
23,058
|
|
|
$
|
24,960
|
|
|
$
|
34,444
|
|
|
$
|
45,399
|
|
Ratio of earnings to fixed charges
|
1.52
|
|
|
1.18
|
|
|
1.02
|
|
|
1.00
|
|
|
1.08
|
|
|
1.10
|
|
||||||
Ratio of earnings to fixed charges and preferred dividends
(3, 4)
|
1.34
|
|
|
1.12
|
|
|
1.02
|
|
|
0.96
|
|
|
0.91
|
|
|
1.07
|
|
(1)
|
Represents an appropriate interest factor.
|
(2)
|
Reflects the impact of $8.8 billion of mortgage banking losses and $3.2 billion of goodwill impairment charges during 2011 which resulted in a negative preferred dividend requirement.
|
(3)
|
The earnings for 2010 were inadequate to cover fixed charges and the ratio of earnings to fixed charges and preferred dividends. The earnings deficiency is a result of $12.4 billion of goodwill impairment charges during 2010. The coverage deficiency for fixed charges was $113 million and the coverage deficiency for fixed charges and preferred dividends was $915 million.
|
(4)
|
The earnings for 2009 were inadequate to cover fixed charges and preferred dividends. The earnings deficiency is a result of accelerated accretion of $4.0 billion recorded as a result of the repurchase of TARP Preferred Stock. The coverage deficiency for fixed charges and preferred dividends was $3.4 billion.
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Bank of America Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 7, 2013
|
/s/ Brian T. Moynihan
Brian T. Moynihan
Chief Executive
Officer and President
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Bank of America Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
May 7, 2013
|
/s/ Bruce R. Thompson
Bruce R. Thompson
Chief Financial Officer
|
1.
|
I am the Chief Executive Officer of Bank of America Corporation (the registrant).
|
2.
|
I hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
|
•
|
the Quarterly Report on Form 10-Q of the registrant for the quarter ended
March 31, 2013
(the periodic report) containing financial statements fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
•
|
the information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented.
|
Date:
|
May 7, 2013
|
/s/ Brian T. Moynihan
Brian T. Moynihan
Chief Executive
Officer and President
|
1.
|
I am the Chief Financial Officer of Bank of America Corporation (the registrant).
|
2.
|
I hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:
|
•
|
the Quarterly Report on Form 10-Q of the registrant for the quarter ended
March 31, 2013
(the periodic report) containing financial statements fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
•
|
the information contained in the periodic report fairly presents, in all material respects, the financial condition and results of operations of the registrant as of, and for, the periods presented.
|
Date:
|
May 7, 2013
|
/s/ Bruce R. Thompson
Bruce R. Thompson
Chief Financial Officer
|