2004 Annual Report: Financial Review: Statements and Notes: Note 6 Outstanding Loans and Leases

Note 6

Outstanding Loans and Leases

Outstanding loans and leases at December 31, 2004 and 2003 were:

	December 31, 2004		December 31, 2003		FleetBoston April 1, 2004
	December 31				FleetBoston April 1, 2004
(Dollars in millions)	2004		2003
Consumer
Residential mortgage	$178,103		$140,513		$ 34,571
Credit card	51,726		34,814		6,848
Home equity lines	50,126		23,859		13,799
Direct/Indirect consumer	40,513		33,415		6,113
Other consumer (1)	7,439		7,558		1,272
Total consumer	327,907		240,159		62,603
Commercial
Commercial - domestic	122,095		91,491		31,796
Commercial real estate (2)	32,319		19,367		9,982
Commercial lease financing	21,115		9,692		10,720
Commercial - foreign	18,401		10,754		9,160
Total commercial	193,930		131,304		61,658
Total	$521,837		$371,463		$124,261
(1) Includes consumer finance, foreign consumer and consumer lease financing of $3,395, $3,563 and $481 at December 31, 2004, respectively, and $3,905, $1,969 and $1,684 at December 31, 2003, respectively. (2) Includes domestic and foreign commercial real estate loans of $31,879 and $440 at December 31, 2004, respectively, and $19,043 and $324 at December 31, 2003, respectively.

The Corporation sold whole mortgage loans and recognized gains (losses) in Other Income on the Consolidated Statement of Income of $(2), $772 and $500, for 2004, 2003 and 2002, respectively.

The following table presents the gross recorded investment in specific loans, without consideration to the specific component of the Allowance for Loan and Lease Losses, that were considered individually impaired in accordance with SFAS 114 at December 31, 2004 and 2003. SFAS 114 impairment includes performing troubled debt restructurings, and excludes all commercial leases.

	December 31, 2004		December 31, 2003		FleetBoston April 1, 2004
	December 31				FleetBoston April 1, 2004
(Dollars in millions)	2004		2003
Commercial - domestic	$  868		$1,404		$349
Commercial real estate	87		153		85
Commercial - foreign	273		581		480
Total impaired loans	$1,228		$2,138		$914

The average recorded investment in certain impaired loans for 2004, 2003 and 2002 was approximately $1.6 billion, $3.0 billion and $3.9 billion, respectively. At December 31, 2004 and 2003, the recorded investment in impaired loans requiring an Allowance for Loan and Lease Losses based on individual analysis per SFAS 114 guidelines was $926 million and $2.0 billion, and the related Allowance for Loan and Lease Losses was $202 million and $391 million, respectively. For 2004, 2003 and 2002, Interest Income recognized on impaired loans totaled $21 million, $105 million and $156 million, respectively, all of which was recognized on a cash basis.

At December 31, 2004 and 2003, nonperforming loans and leases, including impaired loans and nonaccrual consumer loans, totaled $2.2 billion and $2.9 billion, respectively. Nonperforming securities, which are primarily related to international securities held in the AFS securities portfolio, were obtained through troubled debt restructurings, largely acquired through FleetBoston, and amounted to $140 million at December 31, 2004. In addition, included in Other Assets were nonperforming loans held-for-sale and leveraged lease partnership interests of $151 million and $202 million at December 31, 2004 and 2003, respectively.

Foreclosed properties amounted to $102 million and $148 million at December 31, 2004 and 2003, respectively, and are included in Other Assets on the Consolidated Balance Sheet. The cost of carrying foreclosed properties in 2004, 2003 and 2002 amounted to $3 million, $3 million and $7 million, respectively.