Bank of America 2010 Annual Report Download - page 175

The following tables present impaired loans related to the Corporation’s home loans and commercial loan portfolio segments at December 31, 2010.
Certain impaired home loans and commercial loans do not have a related allowance as the valuation of these impaired loans, determined under current
accounting guidance, exceeded the carrying value.
Impaired Loans – Home Loans
(Dollars in millions)
Unpaid
Principal
Balance
Carrying
Value
Related
Allowance
Average
Carrying
Value
Interest
Income
Recognized
(1)
December 31, 2010 2010
With no recorded allowance
Residential mortgage $ 5,493 $ 4,382 n/a $4,429 $184
Home equity 1,411 437 n/a 493 21
Discontinued real estate 361 218 n/a 219 8
With an allowance recorded
Residential mortgage $ 8,593 $ 7,406 $1,154 $5,226 $196
Home equity 1,521 1,284 676 1,509 23
Discontinued real estate 247 177 41 170 7
Total
Residential mortgage $14,086 $11,788 $1,154 $9,655 $380
Home equity 2,932 1,721 676 2,002 44
Discontinued real estate 608 395 41 389 15
(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 ultimate collectability of
principal is not uncertain. See Note 1 – Summary of Significant Accounting Principles for additional information.
n/a = not applicable
Impaired Loans – Commercial
(Dollars in millions)
Unpaid
Principal
Balance
Carrying
Value
Related
Allowance
Average
Carrying
Value
Interest
Income
Recognized
(1)
December 31, 2010 2010
With no recorded allowance
U.S. commercial $ 968 $ 441 n/a $ 547 $ 3
Commercial real estate 2,655 1,771 n/a 1,736 8
Non-U.S. commercial 46 28 n/a 9 –
U.S. small business commercial
(2)
– – n/a – –
With an allowance recorded
U.S. commercial $3,891 $3,193 $336 $3,389 $36
Commercial real estate 5,682 4,103 208 4,813 29
Non-U.S. commercial 572 217 91 190 –
U.S. small business commercial
(2)
935 892 445 1,028 34
Total
U.S. commercial $4,859 $3,634 $336 $3,936 $39
Commercial real estate 8,337 5,874 208 6,549 37
Non-U.S. commercial 618 245 91 199 –
U.S. small business commercial
(2)
935 892 445 1,028 34
(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 ultimate collectability of
principal is not uncertain. See Note 1 – Summary of Significant Accounting Principles for additional information.
(2)
Includes U.S. small business commercial renegotiated TDR loans and related allowance.
n/a = not applicable
At December 31, 2010 and 2009, remaining commitments to lend ad-
ditional funds to debtors whose terms have been modified in a commercial or
consumer TDR were immaterial.
The Corporation seeks to assist customers that are experiencing financial
difficulty by renegotiating loans within the renegotiated portfolio while ensur-
ing compliance with Federal Financial Institutions Examination Council (FFIEC)
guidelines. Substantially all modifications in the renegotiated portfolio are
considered to be both TDRs and impaired loans. The renegotiated portfolio
may include modifications, both short- and long-term, of interest rates or
payment amounts or a combination thereof. The Corporation makes loan
modifications, primarily utilizing internal renegotiation programs via direct
customer contact, that manage customers’ debt exposures held only by the
Corporation. Additionally, the Corporation makes loan modifications with
consumers who have elected to work with external renegotiation agencies
and these modifications provide solutions to customers’ entire unsecured
debt structures. Under both internal and external programs, customers
receive reduced annual percentage rates with fixed payments that amortize
loan balances over a 60-month period. Under both programs, for credit card
loans, a customer’s charging privileges are revoked.
Bank of America 2010 173