Bank of America 2015 Annual Report Download - page 67

Bank of America 2015 65
Table 23 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 standby 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.
Consumer Credit Quality
December 31
Nonperforming
Accruing Past Due
90 Days or More
(Dollars in millions) 2015 2014 2015 2014
Residential mortgage (1) $ 4,803 $ 6,889 $ 7,150 $ 11,407
Home equity 3,337 3,901 ——
U.S. credit card n/a n/a 789 866
Non-U.S. credit card n/a n/a 76 95
Direct/Indirect consumer 24 28 39 64
Other consumer 1131
Total (2) $ 8,165 $ 10,819 $ 8,057 $ 12,433
Consumer loans and leases as a percentage of outstanding consumer loans and leases (2) 1.80%2.22% 1.77%2.56%
Consumer loans and leases as a percentage of outstanding loans and leases, excluding PCI and fully-
insured loan portfolios (2) 2.04 2.70 0.23 0.26
(1) Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At December 31, 2015 and 2014, residential mortgage included $4.3 billion and $7.3 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 $2.9 billion and $4.1 billion of loans on which interest was still accruing.
(2) Balances exclude consumer loans accounted for under the fair value option. At December 31, 2015 and 2014, $293 million and $392 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 24 presents net charge-offs and related ratios for consumer loans and leases.
Consumer Net Charge-offs and Related Ratios
Net Charge-offs (1) Net Charge-off Ratios (1, 2)
(Dollars in millions) 2015 2014 2015 2014
Residential mortgage $473 $ (114) 0.24%(0.05)%
Home equity 636 907 0.79 1.01
U.S. credit card 2,314 2,638 2.62 2.96
Non-U.S. credit card 188 242 1.86 2.10
Direct/Indirect consumer 112 169 0.13 0.20
Other consumer 193 229 9.96 11.27
Total $ 3,916 $ 4,071 0.84 0.80
(1) Net charge-offs exclude write-offs in the PCI loan portfolio. For more information on PCI write-offs, see Consumer Portfolio Credit Risk Management – Purchased Credit-impaired Loan Portfolio on
page 71.
(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 0.35 percent and (0.08) percent for residential
mortgage, 0.84 percent and 1.09 percent for home equity and
0.54 percent and 1.00 percent for the total consumer portfolio
for 2015 and 2014, respectively. These are the only product
classifications that include PCI and fully-insured loans.
Net charge-offs, as shown in Tables 24 and 25, exclude write-
offs in the PCI loan portfolio of $634 million and $545 million in
residential mortgage and $174 million and $265 million in home
equity for 2015 and 2014. Net charge-off ratios including the PCI
write-offs were 0.56 percent and 0.18 percent for residential
mortgage and 1.00 percent and 1.31 percent for home equity in
2015 and 2014. For more information on PCI write-offs, see
Consumer Portfolio Credit Risk Management – Purchased Credit-
impaired Loan Portfolio on page 71.