Bank of America 2013 Annual Report Download - page 189

Bank of America 2013 187
The table below provides information for impaired loans in the Corporation’s Home Loans portfolio segment at December 31, 2013
and 2012, and for 2013, 2012 and 2011, and includes primarily loans managed by Legacy Assets & Servicing. Certain impaired home
loans do not have a related allowance as the current valuation of these impaired loans exceeded the carrying value, which is net of
previously recorded charge-offs.
Impaired Loans – Home Loans
December 31, 2013 December 31, 2012
(Dollars in millions)
Unpaid
Principal
Balance
Carrying
Value
Related
Allowance
Unpaid
Principal
Balance
Carrying
Value
Related
Allowance
With no recorded allowance
Residential mortgage $ 21,567 $ 16,450 $ — $ 20,226 $ 14,967 $ —
Home equity 3,249 1,385 — 2,624 1,103 —
With an allowance recorded
Residential mortgage 13,341 12,862 991 14,223 13,158 1,252
Home equity 893 761 240 1,256 1,022 448
Total
Residential mortgage $ 34,908 $ 29,312 $ 991 $ 34,449 $ 28,125 $ 1,252
Home equity 4,142 2,146 240 3,880 2,125 448
2013 2012 2011
Average
Carrying
Value
Interest
Income
Recognized (1)
Average
Carrying
Value
Interest
Income
Recognized (1)
Average
Carrying
Value
Interest
Income
Recognized (1)
With no recorded allowance
Residential mortgage $ 16,625 $ 621 $ 10,937 $ 366 $ 6,507 $ 241
Home equity 1,245 76 734 49 442 23
With an allowance recorded
Residential mortgage 13,926 616 11,575 423 9,552 325
Home equity 912 41 1,145 44 1,357 34
Total
Residential mortgage $ 30,551 $ 1,237 $ 22,512 $ 789 $ 16,059 $ 566
Home equity 2,157 117 1,879 93 1,799 57
(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.
The table below presents the December 31, 2013, 2012 and
2011 unpaid principal balance, carrying value, and average pre-
and post-modification interest rates of home loans that were
modified in TDRs during 2013, 2012 and 2011, and net charge-
offs that were recorded during the period in which the modification
occurred. The following Home Loans portfolio segment tables
include loans that were initially classified as TDRs during the period
and also loans that had previously been classified as TDRs and
were modified again during the period. These TDRs are managed
by Legacy Assets & Servicing.
Home Loans – TDRs Entered into During 2013, 2012 and 2011 (1)
December 31, 2013 2013
(Dollars in millions)
Unpaid
Principal
Balance
Carrying
Value
Pre-
Modification
Interest Rate
Post-
Modification
Interest Rate
Net
Charge-offs (2)
Residential mortgage $ 11,233 $ 10,016 5.30%4.27% $ 235
Home equity 878 521 5.29 3.92 192
Total $ 12,111 $ 10,537 5.30 4.24 $ 427
December 31, 2012 2012
Residential mortgage $ 15,088 $ 12,228 5.52% 4.70% $ 523
Home equity 1,721 858 5.22 4.39 716
Total $ 16,809 $ 13,086 5.49 4.66 $ 1,239
December 31, 2011 2011
Residential mortgage $ 11,764 $ 9,991 5.94% 5.16% $ 308
Home equity 1,112 556 6.58 5.25 239
Total $ 12,876 $ 10,547 6.01 5.17 $ 547
(1) TDRs entered into during 2013 include residential mortgage modifications with principal forgiveness of $467 million. TDRs entered into during 2012 include residential mortgage modifications with
principal forgiveness of $778 million and home equity modifications of $9 million. Prior to 2012, the principal forgiveness amount was not significant.
(2) Net charge-offs include amounts recorded on loans modified during the period that are no longer held by the Corporation at December 31, 2013, 2012 and 2011 due to sales and other dispositions.