Quarterly report pursuant to Section 13 or 15(d)

Outstanding Loans and Leases (Tables)

v2.4.1.9
Outstanding Loans and Leases (Tables)
3 Months Ended
Mar. 31, 2015
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of Loans and Leases Outstanding
The following tables present total outstanding loans and leases and an aging analysis for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at March 31, 2015 and December 31, 2014.

 
March 31, 2015
(Dollars in millions)
30-59 Days
Past Due
(1)
60-89 Days
Past Due
(1)
90 Days or
More
 Past Due (2)
Total Past
Due 30 Days or More
Total Current or Less Than 30 Days Past Due (3)
Purchased
Credit -
impaired
(4)
Loans Accounted for Under the Fair Value Option
Total
Outstandings
Consumer real estate (5)
 
 
 
 
 
 
 
 
Core portfolio
 
 
 
 
 
 
 
 
Residential mortgage
$
1,727

$
695

$
5,000

$
7,422

$
149,466

 
 
$
156,888

Home equity
225

119

754

1,098

49,931

 
 
51,029

Legacy Assets & Servicing portfolio
 
 
 
 
 
 
 
 
Residential mortgage (6)
1,764

919

8,697

11,380

25,472

$
14,185

 
51,037

Home equity
346

174

1,169

1,689

25,499

5,354

 
32,542

Credit card and other consumer
 
 
 
 
 
 
 
 
U.S. credit card
468

318

795

1,581

85,707

 
 
87,288

Non-U.S. credit card
46

34

88

168

9,492

 
 
9,660

Direct/Indirect consumer (7)
198

53

53

304

81,837

 
 
82,141

Other consumer (8)
10

2

1

13

1,829

 
 
1,842

Total consumer
4,784

2,314

16,557

23,655

429,233

19,539

 
472,427

Consumer loans accounted for under the fair value option (9)
 
 
 
 
 
 
$
2,055

2,055

Total consumer loans and leases
4,784

2,314

16,557

23,655

429,233

19,539

2,055

474,482

Commercial
 
 
 
 
 
 
 
 
U.S. commercial
272

132

269

673

224,408

 
 
225,081

Commercial real estate (10)
42

1

137

180

49,266

 
 
49,446

Commercial lease financing
240

37

14

291

24,177

 
 
24,468

Non-U.S. commercial
3

3


6

84,836

 
 
84,842

U.S. small business commercial
82

38

84

204

13,022

 
 
13,226

Total commercial
639

211

504

1,354

395,709

 
 
397,063

Commercial loans accounted for under the fair value option (9)
 
 
 
 
 
 
6,411

6,411

Total commercial loans and leases
639

211

504

1,354

395,709

 
6,411

403,474

Total loans and leases
$
5,423

$
2,525

$
17,061

$
25,009

$
824,942

$
19,539

$
8,466

$
877,956

Percentage of outstandings
0.62
%
0.29
%
1.94
%
2.85
%
93.96
%
2.23
%
0.96
%
100.00
%
(1) 
Consumer real estate loans 30-59 days past due includes fully-insured loans of $1.8 billion and nonperforming loans of $392 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $1.0 billion and nonperforming loans of $370 million.
(2) 
Consumer real estate includes fully-insured loans of $9.9 billion.
(3) 
Consumer real estate includes $3.8 billion and direct/indirect consumer includes $27 million of nonperforming loans.
(4) 
PCI loan amounts are shown gross of the valuation allowance.
(5) 
Formerly referred to as the Home Loans portfolio segment.
(6) 
Total outstandings includes pay option loans of $2.9 billion. The Corporation no longer originates this product.
(7) 
Total outstandings includes auto and specialty lending loans of $38.9 billion, unsecured consumer lending loans of $1.3 billion, U.S. securities-based lending loans of $36.6 billion, non-U.S. consumer loans of $4.0 billion, student loans of $611 million and other consumer loans of $743 million.
(8) 
Total outstandings includes consumer finance loans of $646 million, consumer leases of $1.1 billion and consumer overdrafts of $120 million.
(9) 
Consumer loans accounted for under the fair value option were residential mortgage loans of $1.9 billion and home equity loans of $205 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.0 billion and non-U.S. commercial loans of $4.5 billion. For additional information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.
(10) 
Total outstandings includes U.S. commercial real estate loans of $46.7 billion and non-U.S. commercial real estate loans of $2.8 billion.
 
December 31, 2014
(Dollars in millions)
30-59 Days
Past Due
(1)
60-89 Days
Past Due
(1)
90 Days or
More
 Past Due (2)
Total Past
Due 30 Days or More
Total Current or Less Than 30 Days Past Due (3)
Purchased
Credit -
impaired
(4)
Loans
Accounted
for Under
 the Fair
Value Option
Total
Outstandings
Consumer real estate (5)
 
 
 
 
 
 
 
 
Core portfolio
 
 
 
 
 
 
 
 
Residential mortgage
$
1,847

$
700

$
5,561

$
8,108

$
154,112

 
 
$
162,220

Home equity
218

105

744

1,067

50,820

 
 
51,887

Legacy Assets & Servicing portfolio
 
 
 
 
 
 
 
 
Residential mortgage (6)
2,008

1,060

10,513

13,581

25,244

$
15,152

 
53,977

Home equity
374

174

1,166

1,714

26,507

5,617

 
33,838

Credit card and other consumer
 
 
 
 
 
 
 
 
U.S. credit card
494

341

866

1,701

90,178

 
 
91,879

Non-U.S. credit card
49

39

95

183

10,282

 
 
10,465

Direct/Indirect consumer (7)
245

71

65

381

80,000

 
 
80,381

Other consumer (8)
11

2

2

15

1,831

 
 
1,846

Total consumer
5,246

2,492

19,012

26,750

438,974

20,769

 
486,493

Consumer loans accounted for under the fair value option (9)
 
 
 
 
 
 
$
2,077

2,077

Total consumer loans and leases
5,246

2,492

19,012

26,750

438,974

20,769

2,077

488,570

Commercial
 
 
 
 
 
 
 
 
U.S. commercial
320

151

318

789

219,504

 
 
220,293

Commercial real estate (10)
138

16

288

442

47,240

 
 
47,682

Commercial lease financing
121

41

42

204

24,662

 
 
24,866

Non-U.S. commercial
5

4


9

80,074

 
 
80,083

U.S. small business commercial
88

45

94

227

13,066

 
 
13,293

Total commercial
672

257

742

1,671

384,546

 
 
386,217

Commercial loans accounted for under the fair value option (9)
 
 
 
 
 
 
6,604

6,604

Total commercial loans and leases
672

257

742

1,671

384,546

 
6,604

392,821

Total loans and leases
$
5,918

$
2,749

$
19,754

$
28,421

$
823,520

$
20,769

$
8,681

$
881,391

Percentage of outstandings
0.67
%
0.31
%
2.24
%
3.22
%
93.44
%
2.36
%
0.98
%
100.00
%
(1) 
Consumer real estate loans 30-59 days past due includes fully-insured loans of $2.1 billion and nonperforming loans of $392 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $1.1 billion and nonperforming loans of $332 million.
(2) 
Consumer real estate includes fully-insured loans of $11.4 billion.
(3) 
Consumer real estate includes $3.6 billion and direct/indirect consumer includes $27 million of nonperforming loans.
(4) 
PCI loan amounts are shown gross of the valuation allowance.
(5) 
Formerly referred to as the Home Loans portfolio segment.
(6) 
Total outstandings includes pay option loans of $3.2 billion. The Corporation no longer originates this product.
(7) 
Total outstandings includes auto and specialty lending loans of $37.7 billion, unsecured consumer lending loans of $1.5 billion, U.S. securities-based lending loans of $35.8 billion, non-U.S. consumer loans of $4.0 billion, student loans of $632 million and other consumer loans of $761 million.
(8) 
Total outstandings includes consumer finance loans of $676 million, consumer leases of $1.0 billion and consumer overdrafts of $162 million.
(9) 
Consumer loans accounted for under the fair value option were residential mortgage loans of $1.9 billion and home equity loans of $196 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $1.9 billion and non-U.S. commercial loans of $4.7 billion. For additional information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.
(10) 
Total outstandings includes U.S. commercial real estate loans of $45.2 billion and non-U.S. commercial real estate loans of $2.5 billion.

Schedule of Financing Receivables, Non Accrual Status
The table below presents the Corporation's nonperforming loans and leases including nonperforming TDRs, and loans accruing past due 90 days or more at March 31, 2015 and December 31, 2014. Nonperforming loans held-for-sale (LHFS) are excluded from nonperforming loans and leases as they are recorded at either fair value or the lower of cost or fair value. For more information on the criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation's 2014 Annual Report on Form 10-K.

Credit Quality
 
 
 
 
 
 
 
 
Nonperforming Loans and Leases (1)
 
Accruing Past Due 90 Days or More
(Dollars in millions)
March 31
2015
 
December 31
2014
 
March 31
2015
 
December 31
2014
Consumer real estate
 
 
 
 
 
 
 
Core portfolio
 
 
 
 
 
 
 
Residential mortgage (2)
$
2,278

 
$
2,398

 
$
3,573

 
$
3,942

Home equity
1,473

 
1,496

 

 

Legacy Assets & Servicing portfolio
 
 
 
 
 
 
 
Residential mortgage (2)
4,143

 
4,491

 
6,339

 
7,465

Home equity
2,286

 
2,405

 

 

Credit card and other consumer
 
 
 
 
 
 
 
U.S. credit card
n/a

 
n/a

 
795

 
866

Non-U.S. credit card
n/a

 
n/a

 
88

 
95

Direct/Indirect consumer
28

 
28

 
51

 
64

Other consumer
1

 
1

 
1

 
1

Total consumer
10,209

 
10,819

 
10,847

 
12,433

Commercial
 
 
 
 
 
 
 
U.S. commercial
680

 
701

 
22

 
110

Commercial real estate
132

 
321

 
25

 
3

Commercial lease financing
16

 
3

 
9

 
41

Non-U.S. commercial
79

 
1

 

 

U.S. small business commercial
89

 
87

 
65

 
67

Total commercial
996

 
1,113

 
121

 
221

Total loans and leases
$
11,205

 
$
11,932

 
$
10,968

 
$
12,654

(1) 
Nonperforming loan balances do not include nonaccruing TDRs removed from the PCI loan portfolio prior to January 1, 2010 of $86 million and $102 million at March 31, 2015 and December 31, 2014.
(2) 
Residential mortgage loans in the Core and Legacy Assets & Servicing portfolios accruing past due 90 days or more are fully-insured loans. At March 31, 2015 and December 31, 2014, residential mortgage includes $6.2 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 $3.7 billion and $4.1 billion of loans on which interest is still accruing.
n/a = not applicable
Financing Receivable Credit Quality Indicators
The following tables present certain credit quality indicators for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at March 31, 2015 and December 31, 2014.

Consumer Real Estate – Credit Quality Indicators (1)
 
 
 
 
 
 
 
March 31, 2015
(Dollars in millions)
Core Portfolio Residential Mortgage (2)
Legacy Assets & Servicing Residential Mortgage (2)
Residential
Mortgage PCI
(3)
Core Portfolio Home Equity (2)
Legacy Assets & Servicing Home Equity (2)
Home
Equity PCI
Refreshed LTV (4)
 
 
 
 
 
 
Less than or equal to 90 percent
$
101,243

$
17,772

$
9,050

$
44,705

$
16,671

$
1,868

Greater than 90 percent but less than or equal to 100 percent
5,004

2,938

1,925

2,347

3,124

960

Greater than 100 percent
4,177

5,095

3,210

3,977

7,393

2,526

Fully-insured loans (5)
46,464

11,047





Total consumer real estate
$
156,888

$
36,852

$
14,185

$
51,029

$
27,188

$
5,354

 
 
 
 
 
 
 
Refreshed FICO score
 
 
 
 
 
 
Less than 620
$
4,122

$
5,988

$
5,350

$
2,158

$
3,352

$
812

Greater than or equal to 620 and less than 680
6,142

3,906

2,905

3,613

4,434

953

Greater than or equal to 680 and less than 740
22,002

6,231

3,288

10,067

7,614

1,578

Greater than or equal to 740
78,158

9,680

2,642

35,191

11,788

2,011

Fully-insured loans (5)
46,464

11,047





Total consumer real estate
$
156,888

$
36,852

$
14,185

$
51,029

$
27,188

$
5,354

(1) 
Excludes $2.1 billion of loans accounted for under the fair value option.
(2) 
Excludes PCI loans.
(3) 
Includes $2.5 billion of pay option loans. The Corporation no longer originates this product.
(4) 
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
(5) 
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.

Credit Card and Other Consumer – Credit Quality Indicators
 
March 31, 2015
(Dollars in millions)
U.S. Credit
Card
 
Non-U.S.
Credit Card
 
Direct/Indirect
Consumer
 
Other
Consumer
(1)
Refreshed FICO score
 
 
 
 
 
 
 
Less than 620
$
4,347

 
$

 
$
1,355

 
$
255

Greater than or equal to 620 and less than 680
12,325

 

 
1,878

 
222

Greater than or equal to 680 and less than 740
33,958

 

 
10,821

 
310

Greater than or equal to 740
36,658

 

 
26,161

 
932

Other internal credit metrics (2, 3, 4)

 
9,660

 
41,926

 
123

Total credit card and other consumer
$
87,288

 
$
9,660

 
$
82,141

 
$
1,842

(1) 
Thirty-five percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.
(2) 
Other internal credit metrics may include delinquency status, geography or other factors.
(3) 
Direct/indirect consumer includes $40.5 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $611 million of loans the Corporation no longer originates.
(4) 
Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At March 31, 2015, 98 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and one percent was 90 days or more past due.

Commercial – Credit Quality Indicators (1)
 
March 31, 2015
(Dollars in millions)
U.S.
Commercial
 
Commercial
Real Estate
 
Commercial
Lease
Financing
 
Non-U.S.
Commercial
 
U.S. Small
Business
Commercial
(2)
Risk ratings
 
 
 
 
 
 
 
 
 
Pass rated
$
217,773

 
$
48,616

 
$
23,401

 
$
83,976

 
$
675

Reservable criticized
7,308

 
830

 
1,067

 
866

 
155

Refreshed FICO score (3)
 
 
 
 
 
 
 
 
 
Less than 620
 
 
 
 
 
 
 
 
188

Greater than or equal to 620 and less than 680
 
 
 
 
 
 
 
 
537

Greater than or equal to 680 and less than 740
 
 
 
 
 
 
 
 
1,621

Greater than or equal to 740
 
 
 
 
 
 
 
 
2,981

Other internal credit metrics (3, 4)
 
 
 
 
 
 
 
 
7,069

Total commercial
$
225,081

 
$
49,446

 
$
24,468

 
$
84,842

 
$
13,226

(1) 
Excludes $6.4 billion of loans accounted for under the fair value option.
(2) 
U.S. small business commercial includes $720 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At March 31, 2015, 99 percent of the balances where internal credit metrics are used was current or less than 30 days past due.
(3) 
Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
(4) 
Other internal credit metrics may include delinquency status, application scores, geography or other factors.
Consumer Real Estate – Credit Quality Indicators (1)
 
 
 
 
 
 
 
December 31, 2014
(Dollars in millions)
Core Portfolio
Residential
Mortgage
(2)
Legacy Assets & Servicing
Residential Mortgage
(2)
Residential
Mortgage PCI
(3)
Core Portfolio Home Equity (2)
Legacy Assets & Servicing Home
Equity
(2)
Home
Equity PCI
Refreshed LTV (4)
 
 
 
 
 
 
Less than or equal to 90 percent
$
100,255

$
18,499

$
9,972

$
45,414

$
17,453

$
2,046

Greater than 90 percent but less than or equal to 100 percent
4,958

3,081

2,005

2,442

3,272

1,048

Greater than 100 percent
4,017

5,265

3,175

4,031

7,496

2,523

Fully-insured loans (5)
52,990

11,980





Total consumer real estate
$
162,220

$
38,825

$
15,152

$
51,887

$
28,221

$
5,617

 
 
 
 
 
 
 
Refreshed FICO score
 
 
 
 
 
 
Less than 620
$
4,184

$
6,313

$
6,109

$
2,169

$
3,470

$
864

Greater than or equal to 620 and less than 680
6,272

4,032

3,014

3,683

4,529

995

Greater than or equal to 680 and less than 740
21,946

6,463

3,310

10,231

7,905

1,651

Greater than or equal to 740
76,828

10,037

2,719

35,804

12,317

2,107

Fully-insured loans (5)
52,990

11,980





Total consumer real estate
$
162,220

$
38,825

$
15,152

$
51,887

$
28,221

$
5,617

(1) 
Excludes $2.1 billion of loans accounted for under the fair value option.
(2) 
Excludes PCI loans.
(3) 
Includes $2.8 billion of pay option loans. The Corporation no longer originates this product.
(4) 
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
(5) 
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.

Credit Card and Other Consumer – Credit Quality Indicators
 
December 31, 2014
(Dollars in millions)
U.S. Credit
Card
 
Non-U.S.
Credit Card
 
Direct/Indirect
Consumer
 
Other
Consumer
(1)
Refreshed FICO score
 
 
 
 
 
 
 
Less than 620
$
4,467

 
$

 
$
1,296

 
$
266

Greater than or equal to 620 and less than 680
12,177

 

 
1,892

 
227

Greater than or equal to 680 and less than 740
34,986

 

 
10,749

 
307

Greater than or equal to 740
40,249

 

 
25,279

 
881

Other internal credit metrics (2, 3, 4)

 
10,465

 
41,165

 
165

Total credit card and other consumer
$
91,879

 
$
10,465

 
$
80,381

 
$
1,846


(1) 
Thirty-seven percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.
(2) 
Other internal credit metrics may include delinquency status, geography or other factors.
(3) 
Direct/indirect consumer includes $39.7 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $632 million of loans the Corporation no longer originates.
(4) 
Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2014, 98 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and one percent was 90 days or more past due.

Commercial – Credit Quality Indicators (1)
 
December 31, 2014
(Dollars in millions)
U.S.
Commercial
 
Commercial
Real Estate
 
Commercial
Lease
Financing
 
Non-U.S.
Commercial
 
U.S. Small
Business
Commercial
(2)
Risk ratings
 
 
 
 
 
 
 
 
 
Pass rated
$
213,839

 
$
46,632

 
$
23,832

 
$
79,367

 
$
751

Reservable criticized
6,454

 
1,050

 
1,034

 
716

 
182

Refreshed FICO score (3)
 
 
 
 
 
 
 
 
 
Less than 620
 
 
 
 
 
 
 
 
184

Greater than or equal to 620 and less than 680
 
 
 
 
 
 
 
 
529

Greater than or equal to 680 and less than 740
 
 
 
 
 
 
 
 
1,591

Greater than or equal to 740
 
 
 
 
 
 
 
 
2,910

Other internal credit metrics (3, 4)
 
 
 
 
 
 
 
 
7,146

Total commercial
$
220,293

 
$
47,682

 
$
24,866

 
$
80,083

 
$
13,293


(1) 
Excludes $6.6 billion of loans accounted for under the fair value option.
(2) 
U.S. small business commercial includes $762 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2014, 98 percent of the balances where internal credit metrics are used was current or less than 30 days past due.
(3) 
Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
(4) 
Other internal credit metrics may include delinquency status, application scores, geography or other factors.

Financing Receivable, Modifications [Line Items]  
Accretable Yield Activity
The table below shows activity for the accretable yield on PCI loans, which includes the Countrywide Financial Corporation (Countrywide) portfolio and loans repurchased in connection with the settlement with FNMA. For more information on the settlement with FNMA, see Note 7 – Representations and Warranties Obligations and Corporate Guarantees of the Corporation's 2014 Annual Report on Form 10-K. The amount of accretable yield is affected by changes in credit outlooks, including metrics such as default rates and loss severities, prepayment speeds, which can change the amount and period of time over which interest payments are expected to be received, and the interest rates on variable rate loans. The reclassifications from nonaccretable difference during 2014 were due to lower expected loss rates and a decrease in forecasted prepayment speeds. The reclassifications to nonaccretable difference in the three months ended March 31, 2015 were due to an increase in forecasted prepayment speeds as a result of lower interest rates. Changes in the prepayment assumption affect the expected remaining life of the portfolio which results in a change to the amount of future interest cash flows.

Rollforward of Accretable Yield
(Dollars in millions)
 
Accretable yield, January 1, 2014
$
6,694

Accretion
(1,061
)
Disposals/transfers
(506
)
Reclassifications from nonaccretable difference
481

Accretable yield, December 31, 2014
5,608

Accretion
(233
)
Disposals/transfers
(136
)
Reclassifications to nonaccretable difference
(72
)
Accretable yield, March 31, 2015
$
5,167

Consumer Real Estate  
Financing Receivable, Impaired [Line Items]  
Impaired Financing Receivables
The table below provides the unpaid principal balance, carrying value and related allowance at March 31, 2015 and December 31, 2014, and the average carrying value and interest income recognized for the three months ended March 31, 2015 and 2014 for impaired loans in the Corporation's Consumer Real Estate portfolio segment and includes primarily loans managed by LAS. Certain impaired consumer real estate loans do not have a related allowance as the current valuation of these impaired loans exceeded the carrying value, which is net of previously recorded charge-offs.

Impaired Loans – Consumer Real Estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31
 
 
 
March 31, 2015
 
2015
 
2014
(Dollars in millions)
 
 
Unpaid
Principal
Balance
 
Carrying
Value
 
Related
Allowance
 
Average
Carrying
Value
 
Interest
Income
Recognized
(1)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(1)
With no recorded allowance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
$
18,524

 
$
14,662

 
$

 
$
15,393

 
$
108

 
$
16,360

 
$
160

Home equity
 
 
3,636

 
1,705

 

 
1,692

 
25

 
1,401

 
22

With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
$
8,058

 
$
7,892

 
$
537

 
$
7,586

 
$
64

 
$
12,332

 
$
131

Home equity
 
 
861

 
732

 
190

 
714

 
7

 
751

 
8

Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
$
26,582

 
$
22,554

 
$
537

 
$
22,979

 
$
172

 
$
28,692

 
$
291

Home equity
 
 
4,497

 
2,437

 
190

 
2,406

 
32

 
2,152

 
30

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
With no recorded allowance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
$
19,710

 
$
15,605

 
$

 
 
 
 
 
 
 
 
Home equity
 
 
3,540

 
1,630

 

 
 
 
 
 
 
 
 
With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
$
7,861

 
$
7,665

 
$
531

 
 
 
 
 
 
 
 
Home equity
 
 
852

 
728

 
196

 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
 
$
27,571

 
$
23,270

 
$
531

 
 
 
 
 
 
 
 
Home equity
 
 
4,392

 
2,358

 
196

 
 
 
 
 
 
 
 
(1) 
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
Financing Receivable, Modifications [Line Items]  
Troubled Debt Restructurings on Financing Receivables
The table below presents the March 31, 2015 and 2014 carrying value for consumer real estate loans that were modified in a TDR during the three months ended March 31, 2015 and 2014 by type of modification.

Consumer Real Estate – Modification Programs
 
TDRs Entered into During the
Three Months Ended March 31, 2015
(Dollars in millions)
Residential Mortgage
 
Home
Equity
 
Total Carrying Value
Modifications under government programs
 
 
 
 
 
Contractual interest rate reduction
$
76

 
$
11

 
$
87

Principal and/or interest forbearance

 
3

 
3

Other modifications (1)
15

 

 
15

Total modifications under government programs
91

 
14

 
105

Modifications under proprietary programs
 
 
 
 
 
Contractual interest rate reduction
50

 
2

 
52

Capitalization of past due amounts
30

 
2

 
32

Principal and/or interest forbearance
11

 
2

 
13

Other modifications (1)
7

 
25

 
32

Total modifications under proprietary programs
98

 
31

 
129

Trial modifications
1,340

 
96

 
1,436

Loans discharged in Chapter 7 bankruptcy (2)
111

 
43

 
154

Total modifications
$
1,640

 
$
184

 
$
1,824

 
 
 
 
 
 
 
TDRs Entered into During the
Three Months Ended March 31, 2014
Modifications under government programs
 
 
 
 
 
Contractual interest rate reduction
$
213

 
$
24

 
$
237

Principal and/or interest forbearance
1

 
9

 
10

Other modifications (1)
20

 
1

 
21

Total modifications under government programs
234

 
34

 
268

Modifications under proprietary programs
 
 
 
 
 
Contractual interest rate reduction
135

 
4

 
139

Capitalization of past due amounts
21

 
1

 
22

Principal and/or interest forbearance
29

 
3

 
32

Other modifications (1)
25

 

 
25

Total modifications under proprietary programs
210

 
8

 
218

Trial modifications
693

 
38

 
731

Loans discharged in Chapter 7 bankruptcy (2)
198

 
60

 
258

Total modifications
$
1,335

 
$
140

 
$
1,475

(1) 
Includes other modifications such as term or payment extensions and repayment plans.
(2) 
Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
 
 
 
 
 
 

The table below presents the carrying value of consumer real estate loans that entered into payment default during the three months ended March 31, 2015 and 2014 that were modified in a TDR during the 12 months preceding payment default. A payment default for consumer real estate TDRs is recognized when a borrower has missed three monthly payments (not necessarily consecutively) since modification. Payment defaults on a trial modification where the borrower has not yet met the terms of the agreement are included in the table below if the borrower is 90 days or more past due three months after the offer to modify is made.

Consumer Real Estate – TDRs Entering Payment Default That Were Modified During the Preceding 12 Months
 
Three Months Ended March 31, 2015
(Dollars in millions)
 Residential Mortgage
 
Home
Equity
 
Total Carrying Value
Modifications under government programs
$
107

 
$
1

 
$
108

Modifications under proprietary programs
40

 
12

 
52

Loans discharged in Chapter 7 bankruptcy (1)
71

 
10

 
81

Trial modifications (2)
1,768

 
24

 
1,792

Total modifications
$
1,986

 
$
47

 
$
2,033

 
 
 
 
 
 
 
Three Months Ended March 31, 2014
Modifications under government programs
$
158

 
$
1

 
$
159

Modifications under proprietary programs
272

 

 
272

Loans discharged in Chapter 7 bankruptcy (1)
121

 
1

 
122

Trial modifications
775

 
3

 
778

Total modifications
$
1,326

 
$
5

 
$
1,331


(1) 
Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
(2) 
Includes $1.4 billion of trial modification offers made in connection with the August 2014 Department of Justice settlement to which the customer has not responded.

The table below presents the March 31, 2015 and 2014 unpaid principal balance, carrying value, and average pre- and post-modification interest rates on consumer real estate loans that were modified in TDRs during the three months ended March 31, 2015 and 2014, and net charge-offs recorded during the period in which the modification occurred. The following Consumer Real Estate portfolio segment tables include loans that were initially classified as TDRs during the period and also loans that had previously been classified as TDRs and were modified again during the period. These TDRs are primarily managed by LAS.

Consumer Real Estate – TDRs Entered into During the Three Months Ended March 31, 2015 and 2014 (1)
 
March 31, 2015
 
Three Months Ended March 31, 2015
(Dollars in millions)
Unpaid Principal Balance
 
Carrying
 Value
 
Pre-Modification Interest Rate
 
Post-Modification Interest Rate (2)
 
Net Charge-offs (3)
Residential mortgage
$
1,879

 
$
1,640

 
5.04
%
 
4.91
%
 
$
17

Home equity
258

 
184

 
4.08

 
3.55

 
11

Total
$
2,137

 
$
1,824

 
4.93

 
4.74

 
$
28

 
 
 
 
 
 
 
 
 
 
 
March 31, 2014
 
Three Months Ended March 31, 2014
Residential mortgage
$
1,532

 
$
1,335

 
5.09
%
 
4.62
%
 
$
17

Home equity
200

 
140

 
4.50

 
3.58

 
15

Total
$
1,732

 
$
1,475

 
5.02

 
4.50

 
$
32

(1) 
TDRs entered into during the three months ended March 31, 2015 include modifications with principal forgiveness of $159 million related to residential mortgage and $1 million related to home equity. TDRs entered into during the three months ended March 31, 2014 include modifications with principal forgiveness of $17 million related to residential mortgage and $0 related to home equity.
(2) 
The post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period.
(3) 
Net charge-offs include amounts recorded on loans modified during the period that are no longer held by the Corporation at March 31, 2015 and 2014 due to sales and other dispositions.
Credit card and other consumer  
Financing Receivable, Impaired [Line Items]  
Impaired Financing Receivables
The table below provides the unpaid principal balance, carrying value and related allowance at March 31, 2015 and December 31, 2014, and the average carrying value and interest income recognized for the three months ended March 31, 2015 and 2014 on the Corporation's renegotiated TDR portfolio in the Credit Card and Other Consumer portfolio segment.

Impaired Loans – Credit Card and Other Consumer – Renegotiated TDRs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31
 
 
 
 
 
March 31, 2015
 
2015
 
2014
(Dollars in millions)
 
 
 
 
Unpaid
Principal
Balance
 
Carrying
Value
(1)
 
Related
Allowance
 
Average
Carrying
Value
 
Interest
Income
Recognized
(2)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(2)
With no recorded allowance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct/Indirect consumer
 
 
 
 
$
58

 
$
25

 
$

 
$
25

 
$

 
$
30

 
$

Other consumer
 
 
 
 

 

 

 

 

 
34

 
1

With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. credit card
 
 
 
 
$
761

 
$
779

 
$
198

 
$
847

 
$
13

 
$
1,407

 
$
22

Non-U.S. credit card
 
 
 
 
128

 
152

 
99

 
159

 
1

 
236

 
2

Direct/Indirect consumer
 
 
 
 
57

 
64

 
17

 
82

 
1

 
259

 
3

Other consumer
 
 
 
 

 

 

 

 

 
25

 

Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. credit card
 
 
 
 
$
761

 
$
779

 
$
198

 
$
847

 
$
13

 
$
1,407

 
$
22

Non-U.S. credit card
 
 
 
 
128

 
152

 
99

 
159

 
1

 
236

 
2

Direct/Indirect consumer
 
 
 
 
115

 
89

 
17

 
107

 
1

 
289

 
3

Other consumer
 
 
 
 

 

 

 

 

 
59

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
With no recorded allowance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct/Indirect consumer
 
 
 
 
$
59

 
$
25

 
$

 
 
 
 
 
 
 
 
With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. credit card
 
 
 
 
$
804

 
$
856

 
$
207

 
 
 
 
 
 
 
 
Non-U.S. credit card
 
 
 
 
132

 
168

 
108

 
 
 
 
 
 
 
 
Direct/Indirect consumer
 
 
 
 
76

 
92

 
24

 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. credit card
 
 
 
 
$
804

 
$
856

 
$
207

 
 
 
 
 
 
 
 
Non-U.S. credit card
 
 
 
 
132

 
168

 
108

 
 
 
 
 
 
 
 
Direct/Indirect consumer
 
 
 
 
135

 
117

 
24

 
 
 
 
 
 
 
 
(1) 
Includes accrued interest and fees.
(2) 
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
Financing Receivable, Modifications [Line Items]  
Troubled Debt Restructurings on Financing Receivables
The table below provides information on the Corporation's primary modification programs for the renegotiated TDR portfolio for loans that were modified in TDRs during the three months ended March 31, 2015 and 2014.

Credit Card and Other Consumer – Renegotiated TDRs Entered into During the Period by Program Type
 
Three Months Ended March 31, 2015
(Dollars in millions)
Internal Programs
 
External Programs
 
Other (1)
 
Total
U.S. credit card
$
51

 
$
25

 
$

 
$
76

Non-U.S. credit card
1

 
2

 
43

 
46

Direct/Indirect consumer

 

 
5

 
5

Total renegotiated TDRs
$
52

 
$
27

 
$
48

 
$
127

 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2014
U.S. credit card
$
70

 
$
30

 
$

 
$
100

Non-U.S. credit card
3

 
3

 
62

 
68

Direct/Indirect consumer
3

 
1

 
5

 
9

Other consumer
2

 

 

 
2

Total renegotiated TDRs
$
78

 
$
34

 
$
67

 
$
179

(1) Other TDRs for non-U.S. credit card include modifications of accounts that are ineligible for a fixed payment plan.

The table below provides information on the Corporation's renegotiated TDR portfolio including the March 31, 2015 and 2014 unpaid principal balance, carrying value and average pre- and post-modification interest rates of loans that were modified in TDRs during the three months ended March 31, 2015 and 2014, and net charge-offs recorded during the period in which the modification occurred.

Credit Card and Other Consumer – Renegotiated TDRs Entered into During the Three Months Ended March 31, 2015 and 2014
 
March 31, 2015
 
Three Months Ended March 31, 2015
(Dollars in millions)
Unpaid Principal Balance
 
Carrying
Value (1)
 
Pre-Modification Interest Rate
 
Post-Modification Interest Rate
 
Net Charge-offs
U.S. credit card
$
69

 
$
76

 
17.07
%
 
5.09
%
 
$
2

Non-U.S. credit card
39

 
46

 
24.11

 
0.29

 
2

Direct/Indirect consumer
8

 
5

 
6.68

 
5.74

 
3

Total
$
116

 
$
127

 
19.18

 
3.38

 
$
7

 
 
 
 
 
 
 
 
 
 
 
March 31, 2014
 
Three Months Ended March 31, 2014
U.S. credit card
$
90

 
$
100

 
16.68
%
 
5.19
%
 
$
3

Non-U.S. credit card
57

 
68

 
25.78

 
0.51

 
2

Direct/Indirect consumer
12

 
9

 
9.83

 
4.56

 
3

Other consumer
2

 
2

 
8.51

 
4.90

 

Total
$
161

 
$
179

 
19.67

 
3.39

 
$
8

(1) 
Includes accrued interest and fees.
The table below provides information on the Corporation's primary modification programs for the renegotiated TDR portfolio at March 31, 2015 and December 31, 2014.

Credit Card and Other Consumer – Renegotiated TDRs by Program Type
 
Internal Programs
 
External Programs
 
Other (1)
 
Total
 
Percent of Balances Current or
Less Than 30 Days Past Due
(Dollars in millions)
March 31
2015
December 31
2014
 
March 31
2015
December 31
2014
 
March 31
2015
December 31
2014
 
March 31
2015
December 31
2014
 
March 31
2015
December 31
2014
U.S. credit card
$
412

$
450

 
$
364

$
397

 
$
3

$
9

 
$
779

$
856

 
85.86
%
84.99
%
Non-U.S. credit card
33

41

 
14

16

 
105

111

 
152

168

 
47.71

47.56

Direct/Indirect consumer
35

50

 
24

34

 
30

33

 
89

117

 
86.05

85.21

Total renegotiated TDRs
$
480

$
541

 
$
402

$
447

 
$
138

$
153

 
$
1,020

$
1,141

 
80.19

79.51

(1) Other TDRs for non-U.S. credit card include modifications of accounts that are ineligible for a fixed payment plan.
Commercial  
Financing Receivable, Impaired [Line Items]  
Impaired Financing Receivables
The table below provides the unpaid principal balance, carrying value and related allowance at March 31, 2015 and December 31, 2014, and the average carrying value and interest income recognized for the three months ended March 31, 2015 and 2014 for impaired loans in the Corporation's Commercial loan portfolio segment. Certain impaired commercial loans do not have a related allowance as the valuation of these impaired loans exceeded the carrying value, which is net of previously recorded charge-offs.

Impaired Loans – Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31
 
 
 
 
 
March 31, 2015
 
2015
 
2014
(Dollars in millions)
 
 
 
 
Unpaid
Principal
Balance
 
Carrying
Value
 
Related
Allowance
 
Average
Carrying
Value
 
Interest
Income
Recognized
(1)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(1)
With no recorded allowance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
 
 
 
 
$
626

 
$
605

 
$

 
$
628

 
$
3

 
$
519

 
$
2

Commercial real estate
 
 
 
 
110

 
93

 

 
71

 
1

 
220

 
1

Non-U.S. commercial
 
 
 
 
8

 
8

 

 
4

 

 
10

 

With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
 
 
 
 
$
1,061

 
$
827

 
$
76

 
$
818

 
$
13

 
$
1,306

 
$
15

Commercial real estate
 
 
 
 
425

 
230

 
26

 
332

 
3

 
702

 
7

Non-U.S. commercial
 
 
 
 
123

 
114

 
18

 
66

 
1

 
71

 
1

U.S. small business commercial (2)
 
 
 
 
105

 
118

 
35

 
121

 

 
170

 
1

Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
 
 
 
 
$
1,687

 
$
1,432

 
$
76

 
$
1,446

 
$
16

 
$
1,825

 
$
17

Commercial real estate
 
 
 
 
535

 
323

 
26

 
403

 
4

 
922

 
8

Non-U.S. commercial
 
 
 
 
131

 
122

 
18

 
70

 
1

 
81

 
1

U.S. small business commercial (2)
 
 
 
 
105

 
118

 
35

 
121

 

 
170

 
1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
 
 
With no recorded allowance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
 
 
 
 
$
668

 
$
650

 
$

 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
60

 
48

 

 
 
 
 
 
 
 
 
With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
 
 
 
 
$
1,139

 
$
839

 
$
75

 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
678

 
495

 
48

 
 
 
 
 
 
 
 
Non-U.S. commercial
 
 
 
 
47

 
44

 
1

 
 
 
 
 
 
 
 
U.S. small business commercial (2)
 
 
 
 
133

 
122

 
35

 
 
 
 
 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
 
 
 
 
$
1,807

 
$
1,489

 
$
75

 
 
 
 
 
 
 
 
Commercial real estate
 
 
 
 
738

 
543

 
48

 
 
 
 
 
 
 
 
Non-U.S. commercial
 
 
 
 
47

 
44

 
1

 
 
 
 
 
 
 
 
U.S. small business commercial (2)
 
 
 
 
133

 
122

 
35

 
 
 
 
 
 
 
 

(1) 
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
(2) 
Includes U.S. small business commercial renegotiated TDR loans and related allowance.

Financing Receivable, Modifications [Line Items]  
Troubled Debt Restructurings on Financing Receivables
The table below presents the March 31, 2015 and 2014 unpaid principal balance and carrying value of commercial loans that were modified as TDRs during the three months ended March 31, 2015 and 2014, and net charge-offs that were recorded during the period in which the modification occurred. The table below includes loans that were initially classified as TDRs during the period and also loans that had previously been classified as TDRs and were modified again during the period.

Commercial – TDRs Entered into During the Three Months Ended March 31, 2015 and 2014
 
March 31, 2015
 
Three Months Ended March 31, 2015
(Dollars in millions)
Unpaid Principal Balance
 
Carrying
Value
 
Net Charge-offs
U.S. commercial
$
346

 
$
327

 
$
3

Commercial real estate
34

 
33

 

Non-U.S. commercial
8

 
8

 

U.S. small business commercial (1)
2

 
2

 

Total
$
390

 
$
370

 
$
3

 
 
 
 
 
 
 
March 31, 2014
 
Three Months Ended March 31, 2014
U.S. commercial
$
443

 
$
276

 
$
2

Commercial real estate
269

 
269

 

Non-U.S. commercial
58

 
58

 

U.S. small business commercial (1)
2

 
2

 

Total
$
772

 
$
605

 
$
2

(1) 
U.S. small business commercial TDRs are comprised of renegotiated small business card loans.