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Troubled Debt Restructurings
Included in our allowance for loan losses was a specific allowance of $357.0 million and $193.6 million that
was established for TDRs at December 31, 2010 and 2009, respectively. The specific allowance for these
individually impaired loans represents the expected loss over the remaining life of the loan, including the
economic concession to the borrower. The following table shows the TDRs and specific valuation allowance by
loan portfolio as well as the percentage of total expected losses as of December 31, 2010 and 2009 (dollars in
millions):
Recorded
Investment in TDRs
Specific Valuation
Allowance
Net Investment in
TDRs
Specific Valuation
Allowance as a % of
TDR Loans
Total
Expected
Losses
December 31, 2010
One- to four-family $ 548.6 $ 84.5 $464.1 15% 28%
Home equity 488.3 272.5 215.8 56% 59%
Total $1,036.9 $357.0 $679.9 34% 42%
December 31, 2009
One- to four-family $ 207.6 $ 26.9 $180.7 13% 21%
Home equity 371.3 166.7 204.6 45% 48%
Total $ 578.9 $193.6 $385.3 33% 38%
The recorded investment in TDRs includes the charge-offs related to certain loans that were written down to
the estimated current property value less costs to sell. These charge-offs were recorded on loans that were
delinquent in excess of 180 days or in bankruptcy prior to the loan modification. The total expected loss on TDRs
includes both the previously recorded charge-offs and the specific valuation allowance.
The following table shows the TDRs by delinquency category as of December 31, 2010 and 2009 (dollars in
millions):
TDRs Current
TDRs 30-89
Days Delinquent
TDRs 90-179
Days Delinquent
TDRs 180+
Days Delinquent
Total Recorded
Investment in
TDRs
December 31, 2010
One- to four-family $420.2 $ 55.5 $21.6 $51.3 $ 548.6
Home equity 388.7 56.7 39.8 3.1 488.3
Total $808.9 $112.2 $61.4 $54.4 $1,036.9
December 31, 2009
One- to four-family $128.5 $ 34.6 $26.5 $18.0 $ 207.6
Home equity 304.1 41.5 25.7 — 371.3
Total $432.6 $ 76.1 $52.2 $18.0 $ 578.9
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