Bank of America 2013 Annual Report Download - page 77

Bank of America 2013 75
Table 27 presents consumer nonperforming loans and accruing
consumer loans past due 90 days or more. Nonperforming loans
do not include past due consumer credit card loans, other
unsecured loans and in general, consumer non-real estate-secured
loans (loans discharged in Chapter 7 bankruptcy are included) 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 from our
repurchases of delinquent FHA loans pursuant to our servicing
agreements with GNMA. Additionally, nonperforming loans and
accruing balances past due 90 days or more do not include the
PCI loan portfolio or loans accounted for under the fair value option
even though the customer may be contractually past due.
Table 27 Consumer Credit Quality
December 31
Nonperforming
Accruing Past Due
90 Days or More
(Dollars in millions) 2013 2012 2013 2012
Residential mortgage (1) $ 11,712 $ 15,055 $16,961 $ 22,157
Home equity 4,075 4,282 ——
U.S. credit card n/a n/a 1,053 1,437
Non-U.S. credit card n/a n/a 131 212
Direct/Indirect consumer 35 92 408 545
Other consumer 18 222
Total (2) $ 15,840 $ 19,431 $18,555 $ 24,353
Consumer loans and leases as a percentage of outstanding consumer loans and leases (2) 2.99%3.52% 3.50%4.41%
Consumer loans and leases as a percentage of outstanding loans and leases, excluding PCI and fully-
insured loan portfolios (2) 3.80 4.46 0.38 0.50
(1) Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At December 31, 2013 and 2012, residential mortgage included $13.0 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 $4.0 billion and $4.4 billion of loans on which interest was still
accruing.
(2) Balances exclude consumer loans accounted for under the fair value option. At December 31, 2013 and 2012, $445 million and $391 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 28 presents net charge-offs and related ratios for consumer loans and leases.
Table 28 Consumer Net Charge-offs and Related Ratios
Net Charge-offs (1) Net Charge-off Ratios (1, 2)
(Dollars in millions) 2013 2012 2013 2012
Residential mortgage $ 1,084 $ 3,111 0.42%1.18%
Home equity 1,803 4,242 1.80 3.62
U.S. credit card 3,376 4,632 3.74 4.88
Non-U.S. credit card 399 581 3.68 4.29
Direct/Indirect consumer 345 763 0.42 0.90
Other consumer 234 232 12.96 9.85
Total $ 7,241 $ 13,561 1.34 2.36
(1) Net charge-offs exclude write-offs in the PCI loan portfolio of $1.2 billion in home equity and $1.1 billion in residential mortgage in 2013 compared to $2.8 billion in home equity 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 81.
(2) Net charge-off ratios are calculated as net charge-offs divided by average outstanding loans and leases excluding loans accounted for under the fair value option.
Net charge-off ratios, excluding the PCI and fully-insured loan
portfolios, were 0.74 percent and 2.04 percent for residential
mortgage, 1.94 percent and 3.99 percent for home equity and
1.71 percent and 2.99 percent for the total consumer portfolio
for 2013 and 2012. These are the only product classifications
that include PCI and fully-insured loans for these periods.
Net charge-offs exclude write-offs in the PCI loan portfolio of
$1.2 billion in home equity and $1.1 billion in residential mortgage
for 2013, and $2.8 billion in home equity for 2012. These write-
offs decreased the PCI valuation allowance included as part of the
allowance for loan and lease losses. Net charge-off ratios including
the PCI write-offs were 3.05 percent for home equity and 0.85
percent for residential mortgage in 2013, and 6.02 percent for
home equity in 2012. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-
impaired Loan Portfolio on page 81.