Bank of America 2012 Annual Report Download - page 134

132 Bank of America 2012
Table VII Allowance for Credit Losses
(Dollars in millions) 2012 2011 2010 2009 2008
Allowance for loan and lease losses, January 1 (1) $ 33,783 $ 41,885 $ 47,988 $ 23,071 $ 11,588
Loans and leases charged off
Residential mortgage (3,211)(4,195) (3,779) (4,436) (964)
Home equity (4,566)(4,990) (7,059) (7,205) (3,597)
Discontinued real estate (72) (106) (77) (104) (19)
U.S. credit card (5,360)(8,114) (13,818) (6,753) (4,469)
Non-U.S. credit card (835) (1,691) (2,424) (1,332) (639)
Direct/Indirect consumer (1,258)(2,190) (4,303) (6,406) (3,777)
Other consumer (274) (252) (320) (491) (461)
Total consumer charge-offs (15,576) (21,538) (31,780) (26,727) (13,926)
U.S. commercial (2) (1,309)(1,690) (3,190) (5,237) (2,567)
Commercial real estate (719) (1,298) (2,185) (2,744) (895)
Commercial lease financing (32) (61) (96) (217) (79)
Non-U.S. commercial (36) (155) (139) (558) (199)
Total commercial charge-offs (2,096)(3,204) (5,610) (8,756) (3,740)
Total loans and leases charged off (17,672) (24,742) (37,390) (35,483) (17,666)
Recoveries of loans and leases previously charged off
Residential mortgage 158 363 109 86 39
Home equity 329 517 278 155 101
Discontinued real estate 914933
U.S. credit card 728 838 791 206 308
Non-U.S. credit card 254 522 217 93 88
Direct/Indirect consumer 495 714 967 943 663
Other consumer 42 50 59 63 62
Total consumer recoveries 2,015 3,018 2,430 1,549 1,264
U.S. commercial (3) 368 500 391 161 118
Commercial real estate 335 351 168 42 8
Commercial lease financing 38 37 39 22 19
Non-U.S. commercial 83 28 21 26
Total commercial recoveries 749 891 626 246 171
Total recoveries of loans and leases previously charged off 2,764 3,909 3,056 1,795 1,435
Net charge-offs (14,908) (20,833) (34,334) (33,688) (16,231)
Provision for loan and lease losses 8,310 13,629 28,195 48,366 26,922
Write-offs of home equity PCI loans (2,820)————
Other (4) (186) (898) 36 (549) 792
Allowance for loan and lease losses, December 31 24,179 33,783 41,885 37,200 23,071
Reserve for unfunded lending commitments, January 1 714 1,188 1,487 421 518
Provision for unfunded lending commitments (141) (219) 240 204 (97)
Other (5) (60) (255) (539) 862 —
Reserve for unfunded lending commitments, December 31 513 714 1,188 1,487 421
Allowance for credit losses, December 31 $ 24,692 $ 34,497 $ 43,073 $ 38,687 $ 23,492
(1) The 2010 balance includes $10.8 billion of allowance for loan and lease losses related to the adoption of consolidation guidance that was effective January 1, 2010.
(2) Includes U.S. small business commercial charge-offs of $799 million, $1.1 billion, $2.0 billion, $3.0 billion and $2.0 billion in 2012, 2011, 2010, 2009 and 2008, respectively.
(3) Includes U.S. small business commercial recoveries of $100 million, $106 million, $107 million, $65 million and $39 million in 2012, 2011, 2010, 2009 and 2008, respectively.
(4) The 2012 and 2011 amounts primarily represent the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments. In addition, the 2011 amount
includes a $449 million reduction in the allowance for loan and lease losses related to Canadian consumer card loans that were transferred to LHFS. The 2009 amount includes a $750 million
reduction in the allowance for loan and lease losses related to credit card loans of $8.5 billion which were exchanged for $7.8 billion in held-to-maturity debt securities that were issued by the
Corporation’s U.S. Credit Card Securitization Trust and retained by the Corporation. The 2008 amount includes the $1.2 billion addition to the Countrywide allowance for loan losses as of July 1,
2008.
(5) The 2012, 2011 and 2010 amounts primarily represent accretion of the Merrill Lynch purchase accounting adjustment and the impact of funding previously unfunded positions. The 2009 amount
includes the remaining balance of the acquired Merrill Lynch reserve excluding those commitments accounted for under the fair value option, net of accretion, and the impact of funding previously
unfunded positions.