Bank of America 2012 Annual Report Download - page 81

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Table 22 presents accruing consumer loans past due 90 days
or more and consumer nonperforming loans. Nonperforming loans
do not include past due consumer credit card loans, other
unsecured loans and in general, consumer non-real estate-secured
loans (excluding those loans discharged in Chapter 7 bankruptcy)
as these loans are typically charged off no later than the end of
the month in which the loan becomes 180 days past due. Real
estate-secured past due consumer loans that are insured by the
FHA or individually insured under long-term stand-by agreements
with FNMA and FHLMC (collectively, the fully-insured loan portfolio)
are reported as accruing as opposed to nonperforming since the
principal repayment is insured. Fully-insured loans included in
accruing past due 90 days or more are primarily related to our
purchases of delinquent FHA loans pursuant to our servicing
agreements. Additionally, nonperforming loans and accruing
balances past due 90 days or more do not include the Countrywide
PCI loan portfolio or loans accounted for under the fair value option
even though the customer may be contractually past due. For
additional information on FHA loans, see Off-Balance Sheet
Arrangements and Contractual Obligations – Other Mortgage-
related Matters on page 57.
Table 22 Consumer Credit Quality
December 31
Accruing Past Due
90 Days or More Nonperforming
(Dollars in millions) 2012 2011 2012 (1) 2011
Residential mortgage (2) $ 22,157 $ 21,164 $14,808 $ 15,970
Home equity ——4,281 2,453
Discontinued real estate ——248 290
U.S. credit card 1,437 2,070 n/a n/a
Non-U.S. credit card 212 342 n/a n/a
Direct/Indirect consumer 545 746 92 40
Other consumer 22215
Total (3) $ 24,353 $ 24,324 $19,431 $ 18,768
Consumer loans as a percentage of outstanding consumer loans (3) 4.41%4.01% 3.52%3.09%
Consumer loans as a percentage of outstanding loans excluding Countrywide PCI and fully-insured loan
portfolios (3) 0.50 0.66 4.46 3.90
(1) Nonperforming loans include the impacts of the National Mortgage Settlement and guidance issued by regulatory agencies. For more information, see Consumer Portfolio Credit Risk Management
on page 76 and Table 21.
(2) Balances accruing past due 90 days or more are fully-insured loans. These balances include $17.8 billion and $17.0 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 $4.4 billion and $4.2 billion of loans on which interest was still accruing at December 31, 2012 and 2011.
(3) Balances exclude consumer loans accounted for under the fair value option. At December 31, 2012 and 2011, $391 million and $713 million of loans accounted for under the fair value option were
past due 90 days or more and not accruing interest.
n/a = not applicable
Table 23 presents net charge-offs and related ratios for consumer loans and leases.
Table 23 Consumer Net Charge-offs and Related Ratios (1)
Net Charge-offs (2) Net Charge-off Ratios (2, 3)
(Dollars in millions) 2012 2011 2012 2011
Residential mortgage $ 3,053 $ 3,832 1.21%1.45%
Home equity 4,237 4,473 3.62 3.42
Discontinued real estate 63 92 0.61 0.75
U.S. credit card 4,632 7,276 4.88 6.90
Non-U.S. credit card 581 1,169 4.29 4.86
Direct/Indirect consumer 763 1,476 0.90 1.64
Other consumer 232 202 9.85 7.32
Total $ 13,561 $ 18,520 2.36 2.94
(1) Net charge-offs and related ratios for 2012 include the impacts of the National Mortgage Settlement and new regulatory guidance on loans discharged in Chapter 7 bankruptcy. For more information,
see Consumer Portfolio Credit Risk Management on page 76 and Table 21.
(2) Net charge-offs exclude $2.8 billion of write-offs in the Countrywide home equity PCI loan portfolio for 2012. 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 Countrywide Purchased Credit-impaired Loan Portfolio on page 86.
(3) Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans excluding loans accounted for under the fair value option.
Net charge-off ratios, excluding the Countrywide PCI and fully-
insured loan portfolios, were 2.02 percent and 2.27 percent for
residential mortgage, 3.98 percent and 3.77 percent for home
equity, 6.10 percent and 7.14 percent for discontinued real estate
and 2.99 percent and 3.62 percent for the total consumer portfolio
for 2012 and 2011. These are the only product classifications
impacted by the Countrywide PCI and fully-insured loan portfolios
for 2012 and 2011.
Net charge-offs exclude $2.8 billion of write-offs in the
Countrywide home equity PCI loan portfolio for 2012. These write-
offs decreased the PCI valuation allowance included as part of the
allowance for loan and lease losses. The net charge-off ratio
including the PCI write-offs for home equity was 6.02 percent in
2012. For information on PCI write-offs, see Countrywide
Purchased Credit-impaired Loan Portfolio on page 86.