Note 6 — Outstanding Loans and Leases
Outstanding loans and leases at December 31, 2006 and 2005 were:
| December 31 | |||||
|---|---|---|---|---|---|
| (Dollars in millions) | 2006 | 2005 | |||
| Consumer | |||||
| Residential mortgage |
$ |
$ |
|||
| Credit card — domestic | 61,195 | 58,548 | |||
| Credit card — foreign | 10,999 | — | |||
| Home equity lines | 74,888 | 62,098 | |||
| Direct/Indirect consumer (1) | 68,224 | 45,490 | |||
| Other consumer (2) | 9,218 | 6,725 | |||
|
Total consumer
|
465,705 | 355,457 | |||
| Commercial | |||||
| Commercial — domestic | 161,982 | 140,533 | |||
| Commercial real estate (3) | 36,258 | 35,766 | |||
| Commercial lease financing | 21,864 | 20,705 | |||
| Commercial — foreign | 20,681 | 21,330 | |||
|
Total commercial
|
240,785 | 218,334 | |||
|
Total
|
$ |
$ |
|||
The following table presents the recorded loan amounts, without consideration for the specific component of the Allowance for Loan and Lease Losses, that were considered individually impaired in accordance with SFAS 114 at December 31, 2006 and 2005. SFAS 114 impairment includes performing troubled debt restructurings and excludes all commercial leases.
| December 31 | ||
|---|---|---|
| (Dollars in millions) | 2006 | 2005 |
| Commercial — domestic |
$ |
$ |
| Commercial real estate | 118 | 49 |
| Commercial — foreign | 13 | 34 |
|
Total impaired loans
|
$ |
$ |
The average recorded investment in certain impaired loans for 2006, 2005 and 2004 was approximately $722 million, $852 million and $1.6 billion, respectively. At December 31, 2006 and 2005, the recorded investment in impaired loans requiring an Allowance for Loan and Lease Losses based on individual analysis per SFAS 114 guidelines was $567 million and $517 million, and the related Allowance for Loan and Lease Losses was $43 million and $55 million. For 2006, 2005 and 2004, Interest Income recognized on impaired loans totaled $36 million, $17 million and $21 million, respectively, all of which was recognized on a cash basis.
At December 31, 2006 and 2005, nonperforming loans and leases, including impaired loans and nonaccrual consumer loans, totaled $1.8 billion and $1.5 billion. In addition, included in Other Assets were nonperforming loans held-for-sale of $80 million and $69 million at December 31, 2006 and 2005.
The Corporation has loan products with varying terms (e.g., interest-only mortgages, option adjustable rate mortgages, etc.) and loans with high loan-to-value ratios. Exposure to any of these loan products does not result in a significant concentration of credit risk. Terms of loan products, collateral coverage, the borrower's credit history, and the amount of these loans that are retained on our balance sheet are included in the Corporation's assessment when establishing its Allowance for Loan and Lease Losses.