Quarterly report pursuant to Section 13 or 15(d)

Outstanding Loans and Leases (Tables)

v3.7.0.1
Outstanding Loans and Leases (Tables)
6 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
Schedule of Loans and Leases Outstanding
The following tables present total outstanding loans and leases and an aging analysis for the Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at June 30, 2017 and December 31, 2016.
During the second quarter of 2017, the Corporation completed the sale of its non-U.S. consumer credit card business. This business, which at December 31, 2016 included $9.2 billion of non-U.S. credit card loans and the related allowance for loan and lease losses of $243 million, was presented in assets of business held for sale on the Consolidated Balance Sheet. In this Note, all applicable amounts for December 31, 2016 include these balances, unless otherwise noted. For additional information, see Note 1 – Summary of Significant Accounting Principles.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2017
(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
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

Core portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
995

 
$
264

 
$
1,029

 
$
2,288

 
$
163,921

 
 
 
 
 
$
166,209

Home equity
202

 
105

 
427

 
734

 
45,908

 
 
 
 
 
46,642

Non-core portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage (5)
1,073

 
519

 
4,113

 
5,705

 
16,258

 
$
9,274

 
 
 
31,237

Home equity
234

 
120

 
677

 
1,031

 
11,099

 
3,170

 
 
 
15,300

Credit card and other consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. credit card
465

 
313

 
772

 
1,550

 
89,226

 
 
 
 
 
90,776

Direct/Indirect consumer (6)
238

 
69

 
33

 
340

 
93,153

 
 
 
 
 
93,493

Other consumer (7)
20

 
5

 
6

 
31

 
2,627

 
 
 
 
 
2,658

Total consumer
3,227

 
1,395

 
7,057

 
11,679

 
422,192

 
12,444

 
 
 
446,315

Consumer loans accounted for under the fair value option (8)
 

 
 

 
 

 
 

 
 

 
 

 
$
1,035

 
1,035

Total consumer loans and leases
3,227

 
1,395

 
7,057

 
11,679

 
422,192

 
12,444

 
1,035

 
447,350

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
350

 
446

 
361

 
1,157

 
276,518

 
 
 
 
 
277,675

Commercial real estate (9)
24

 
10

 
50

 
84

 
59,093

 
 
 
 
 
59,177

Commercial lease financing
54

 
72

 
27

 
153

 
21,675

 
 
 
 
 
21,828

Non-U.S. commercial
121

 
74

 

 
195

 
90,591

 
 
 
 
 
90,786

U.S. small business commercial
52

 
34

 
80

 
166

 
13,394

 
 
 
 
 
13,560

Total commercial
601

 
636

 
518

 
1,755

 
461,271

 
 
 
 
 
463,026

Commercial loans accounted for under the fair value option (8)
 

 
 

 
 

 
 

 
 

 
 

 
6,290

 
6,290

Total commercial loans and leases
601

 
636

 
518

 
1,755

 
461,271

 
 
 
6,290

 
469,316

Total loans and leases (10)
$
3,828

 
$
2,031

 
$
7,575

 
$
13,434

 
$
883,463

 
$
12,444

 
$
7,325

 
$
916,666

Percentage of outstandings
0.42
%
 
0.22
%
 
0.83
%
 
1.47
%
 
96.38
%
 
1.35
%
 
0.80
%
 
100.00
%
(1) 
Consumer real estate loans 30-59 days past due includes fully-insured loans of $837 million and nonperforming loans of $250 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $435 million and nonperforming loans of $203 million.
(2) 
Consumer real estate includes fully-insured loans of $3.7 billion.
(3) 
Consumer real estate includes $2.3 billion and direct/indirect consumer includes $18 million of nonperforming loans.
(4) 
Purchased credit-impaired (PCI) loan amounts are shown gross of the valuation allowance.
(5) 
Total outstandings includes pay option loans of $1.6 billion. The Corporation no longer originates this product.
(6) 
Total outstandings includes auto and specialty lending loans of $49.1 billion, unsecured consumer lending loans of $509 million, U.S. securities-based lending loans of $39.8 billion, non-U.S. consumer loans of $2.9 billion, student loans of $463 million and other consumer loans of $657 million.
(7) 
Total outstandings includes consumer finance loans of $420 million, consumer leases of $2.1 billion and consumer overdrafts of $155 million.
(8) 
Consumer loans accounted for under the fair value option were residential mortgage loans of $666 million and home equity loans of $369 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $3.2 billion and non-U.S. commercial loans of $3.1 billion. For additional information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.
(9) 
Total outstandings includes U.S. commercial real estate loans of $55.6 billion and non-U.S. commercial real estate loans of $3.6 billion.
(10) 
The Corporation pledged $152.8 billion of loans to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank (FHLB). This amount is not included in the parenthetical disclosure of loans and leases pledged as collateral on the Consolidated Balance Sheet as there were no related outstanding borrowings.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
(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
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

Core portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
1,340

 
$
425

 
$
1,213

 
$
2,978

 
$
153,519

 


 
 

 
$
156,497

Home equity
239

 
105

 
451

 
795

 
48,578

 


 
 

 
49,373

Non-core portfolio
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage (5)
1,338

 
674

 
5,343

 
7,355

 
17,818

 
$
10,127

 
 

 
35,300

Home equity
260

 
136

 
832

 
1,228

 
12,231

 
3,611

 
 

 
17,070

Credit card and other consumer
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. credit card
472

 
341

 
782

 
1,595

 
90,683

 
 
 
 

 
92,278

Non-U.S. credit card
37

 
27

 
66

 
130

 
9,084

 
 
 
 

 
9,214

Direct/Indirect consumer (6)
272

 
79

 
34

 
385

 
93,704

 
 
 
 

 
94,089

Other consumer (7)
26

 
8

 
6

 
40

 
2,459

 
 
 
 

 
2,499

Total consumer
3,984

 
1,795

 
8,727

 
14,506

 
428,076

 
13,738

 
 

456,320

Consumer loans accounted for under the fair value option (8)
 
 
 
 
 
 
 
 
 
 
 
 
$
1,051


1,051

Total consumer loans and leases
3,984

 
1,795

 
8,727

 
14,506

 
428,076

 
13,738

 
1,051

 
457,371

Commercial
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. commercial
952

 
263

 
400

 
1,615

 
268,757

 
 
 
 

 
270,372

Commercial real estate (9)
20

 
10

 
56

 
86

 
57,269

 
 
 
 

 
57,355

Commercial lease financing
167

 
21

 
27

 
215

 
22,160

 
 
 
 

 
22,375

Non-U.S. commercial
348

 
4

 
5

 
357

 
89,040

 
 
 
 

 
89,397

U.S. small business commercial
96

 
49

 
84

 
229

 
12,764

 
 
 
 

 
12,993

Total commercial
1,583

 
347

 
572

 
2,502

 
449,990

 
 
 
 

 
452,492

Commercial loans accounted for under the fair value option (8)
 
 
 
 
 
 
 
 
 
 
 
 
6,034

 
6,034

Total commercial loans and leases
1,583

 
347

 
572

 
2,502

 
449,990

 
 
 
6,034

 
458,526

Total consumer and commercial loans and leases (10) 
$
5,567

 
$
2,142

 
$
9,299

 
$
17,008

 
$
878,066

 
$
13,738

 
$
7,085

 
$
915,897

Less: Loans of business held for sale (10)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(9,214
)
Total loans and leases (11)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
906,683

Percentage of outstandings (10)
0.61
%
 
0.23
%
 
1.02
%
 
1.86
%
 
95.87
%
 
1.50
%
 
0.77
%
 
100.00
%

(1) 
Consumer real estate loans 30-59 days past due includes fully-insured loans of $1.1 billion and nonperforming loans of $266 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $547 million and nonperforming loans of $216 million.
(2) 
Consumer real estate includes fully-insured loans of $4.8 billion.
(3) 
Consumer real estate includes $2.5 billion and direct/indirect consumer includes $27 million of nonperforming loans.
(4) 
PCI loan amounts are shown gross of the valuation allowance.
(5) 
Total outstandings includes pay option loans of $1.8 billion. The Corporation no longer originates this product.
(6) 
Total outstandings includes auto and specialty lending loans of $48.9 billion, unsecured consumer lending loans of $585 million, U.S. securities-based lending loans of $40.1 billion, non-U.S. consumer loans of $3.0 billion, student loans of $497 million and other consumer loans of $1.1 billion.
(7) 
Total outstandings includes consumer finance loans of $465 million, consumer leases of $1.9 billion and consumer overdrafts of $157 million.
(8) 
Consumer loans accounted for under the fair value option were residential mortgage loans of $710 million and home equity loans of $341 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.9 billion and non-U.S. commercial loans of $3.1 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.
(9) 
Total outstandings includes U.S. commercial real estate loans of $54.3 billion and non-U.S. commercial real estate loans of $3.1 billion.
(10) 
Includes non-U.S. credit card loans, which are included in assets of business held for sale on the Consolidated Balance Sheet.
(11) 
The Corporation pledged $143.1 billion of loans to secure potential borrowing capacity with the Federal Reserve Bank and FHLB. This amount is not included in the parenthetical disclosure of loans and leases pledged as collateral on the Consolidated Balance Sheet as there were no related outstanding borrowings.
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 June 30, 2017 and December 31, 2016. 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 2016 Annual Report on Form 10-K.
 
 
 
 
 
 
 
 
Credit Quality
 
 
 
 
 
 
 
 
 
 
 
Nonperforming Loans and Leases
 
Accruing Past Due
90 Days or More
(Dollars in millions)
June 30
2017
 
December 31
2016
 
June 30
2017
 
December 31
2016
Consumer real estate
 

 
 

 
 

 
 

Core portfolio
 
 
 
 
 
 
 
Residential mortgage (1)
$
1,051

 
$
1,274

 
$
398

 
$
486

Home equity
970

 
969

 

 

Non-core portfolio
 

 
 

 
 

 
 
Residential mortgage (1)
1,528

 
1,782

 
3,301

 
4,307

Home equity
1,711

 
1,949

 

 

Credit card and other consumer
 

 
 

 
 
 
 
U.S. credit card
n/a

 
n/a

 
772

 
782

Non-U.S. credit card
n/a

 
n/a

 

 
66

Direct/Indirect consumer
19

 
28

 
32

 
34

Other consumer
3

 
2

 
3

 
4

Total consumer
5,282

 
6,004

 
4,506

 
5,679

Commercial
 

 
 

 
 

 
 

U.S. commercial
1,039

 
1,256

 
74

 
106

Commercial real estate
123

 
72

 

 
7

Commercial lease financing
28

 
36

 
22

 
19

Non-U.S. commercial
269

 
279

 

 
5

U.S. small business commercial
61

 
60

 
68

 
71

Total commercial
1,520

 
1,703

 
164

 
208

Total loans and leases
$
6,802

 
$
7,707

 
$
4,670

 
$
5,887

(1) 
Residential mortgage loans in the core and non-core portfolios accruing past due 90 days or more are fully-insured loans. At June 30, 2017 and December 31, 2016, residential mortgage includes $2.4 billion and $3.0 billion of loans on which interest has been curtailed by the Federal Housing Administration (FHA), and therefore are no longer accruing interest, although principal is still insured, and $1.3 billion and $1.8 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 June 30, 2017 and December 31, 2016.
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Real Estate – Credit Quality Indicators (1)
 
June 30, 2017
(Dollars in millions)
Core Residential
Mortgage (2)
 
Non-core Residential
Mortgage
(2)
 
Residential Mortgage PCI (3)
 
Core Home Equity (2)
 
Non-core Home Equity (2)
 
Home
Equity PCI
Refreshed LTV (4)
 

 
 

 
 

 
 

 
 
 
 
Less than or equal to 90 percent
$
140,898

 
$
13,168

 
$
7,436

 
$
44,878

 
$
8,128

 
$
1,810

Greater than 90 percent but less than or equal to 100 percent
3,640

 
1,185

 
839

 
808

 
1,392

 
525

Greater than 100 percent
1,671

 
1,545

 
999

 
956

 
2,610

 
835

Fully-insured loans (5)
20,000

 
6,065

 

 

 

 

Total consumer real estate
$
166,209

 
$
21,963

 
$
9,274

 
$
46,642

 
$
12,130

 
$
3,170

Refreshed FICO score
 
 
 
 
 
 
 
 
 
 
 
Less than 620
$
2,329

 
$
2,773

 
$
2,361

 
$
1,210

 
$
2,410

 
$
500

Greater than or equal to 620 and less than 680
4,894

 
2,438

 
1,998

 
2,582

 
2,739

 
547

Greater than or equal to 680 and less than 740
23,308

 
4,106

 
2,756

 
9,026

 
2,964

 
926

Greater than or equal to 740
115,678

 
6,581

 
2,159

 
33,824

 
4,017

 
1,197

Fully-insured loans (5)
20,000

 
6,065

 

 

 

 

Total consumer real estate
$
166,209

 
$
21,963

 
$
9,274

 
$
46,642

 
$
12,130

 
$
3,170

(1) 
Excludes $1.0 billion of loans accounted for under the fair value option.
(2) 
Excludes PCI loans.
(3) 
Includes $1.4 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
 
June 30, 2017
(Dollars in millions)
U.S. Credit
Card
 
Direct/Indirect
Consumer
 
Other
Consumer (1)
Refreshed FICO score
 

 
 

 
 

Less than 620
$
4,349

 
$
1,550

 
$
169

Greater than or equal to 620 and less than 680
11,993

 
2,038

 
217

Greater than or equal to 680 and less than 740
34,147

 
12,257

 
425

Greater than or equal to 740
40,287

 
33,764

 
1,688

Other internal credit metrics (2, 3)

 
43,884

 
159

Total credit card and other consumer
$
90,776

 
$
93,493

 
$
2,658

(1) 
At June 30, 2017, 16 percent of the other consumer portfolio was 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 $42.8 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $464 million of loans the Corporation no longer originates, primarily student loans.
 
 
 
 
 
 
 
 
 
 
Commercial – Credit Quality Indicators (1)
 
June 30, 2017
(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
$
268,793

 
$
58,538

 
$
21,103

 
$
87,639

 
$
376

Reservable criticized
8,882

 
639

 
725

 
3,147

 
57

Refreshed FICO score (3)
 
 
 
 
 
 
 
 
 

Less than 620
 

 
 

 
 

 
 

 
221

Greater than or equal to 620 and less than 680
 
 
 
 
 
 
 
 
623

Greater than or equal to 680 and less than 740
 
 
 
 
 
 
 
 
1,863

Greater than or equal to 740
 
 
 
 
 
 
 
 
3,593

Other internal credit metrics (3, 4)
 
 
 
 
 
 
 
 
6,827

Total commercial
$
277,675

 
$
59,177

 
$
21,828

 
$
90,786

 
$
13,560

(1) 
Excludes $6.3 billion of loans accounted for under the fair value option.
(2) 
U.S. small business commercial includes $806 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 June 30, 2017, 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, 2016
(Dollars in millions)
Core Residential
Mortgage (2)
 
Non-core Residential
Mortgage
(2)
 
Residential Mortgage PCI (3)
 
Core Home Equity (2)
 
Non-core Home Equity (2)
 
Home
Equity PCI
Refreshed LTV (4)
 

 
 

 
 

 
 

 
 
 
 
Less than or equal to 90 percent
$
129,737

 
$
14,280

 
$
7,811

 
$
47,171

 
$
8,480

 
$
1,942

Greater than 90 percent but less than or equal to 100 percent
3,634

 
1,446

 
1,021

 
1,006

 
1,668

 
630

Greater than 100 percent
1,872

 
1,972

 
1,295

 
1,196

 
3,311

 
1,039

Fully-insured loans (5)
21,254

 
7,475

 

 

 

 

Total consumer real estate
$
156,497

 
$
25,173

 
$
10,127

 
$
49,373

 
$
13,459

 
$
3,611

Refreshed FICO score
 

 
 

 
 

 
 

 
 

 
 

Less than 620
$
2,479

 
$
3,198

 
$
2,741

 
$
1,254

 
$
2,692

 
$
559

Greater than or equal to 620 and less than 680
5,094

 
2,807

 
2,241

 
2,853

 
3,094

 
636

Greater than or equal to 680 and less than 740
22,629

 
4,512

 
2,916

 
10,069

 
3,176

 
1,069

Greater than or equal to 740
105,041

 
7,181

 
2,229

 
35,197

 
4,497

 
1,347

Fully-insured loans (5)
21,254

 
7,475

 

 

 

 

Total consumer real estate
$
156,497

 
$
25,173

 
$
10,127

 
$
49,373

 
$
13,459

 
$
3,611

(1) 
Excludes $1.1 billion of loans accounted for under the fair value option.
(2) 
Excludes PCI loans.
(3) 
Includes $1.6 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, 2016
(Dollars in millions)
U.S. Credit
Card
 
Non-U.S.
Credit Card
 
Direct/Indirect
Consumer
 
Other
Consumer (1)
Refreshed FICO score
 

 
 

 
 

 
 

Less than 620
$
4,431

 
$

 
$
1,478

 
$
187

Greater than or equal to 620 and less than 680
12,364

 

 
2,070

 
222

Greater than or equal to 680 and less than 740
34,828

 

 
12,491

 
404

Greater than or equal to 740
40,655

 

 
33,420

 
1,525

Other internal credit metrics (2, 3, 4)

 
9,214

 
44,630

 
161

Total credit card and other consumer
$
92,278

 
$
9,214

 
$
94,089

 
$
2,499

(1) 
At December 31, 2016, 19 percent of the other consumer portfolio was 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 $43.1 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $499 million of loans the Corporation no longer originates, primarily student loans.
(4) 
Non-U.S. credit card represents the U.K. credit card portfolio which was evaluated using internal credit metrics, including delinquency status. At December 31, 2016, 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, 2016
(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
$
261,214

 
$
56,957

 
$
21,565

 
$
85,689

 
$
453

Reservable criticized
9,158

 
398

 
810

 
3,708

 
71

Refreshed FICO score (3)
 
 
 
 
 
 
 
 
 
Less than 620
 
 
 
 
 
 
 
 
200

Greater than or equal to 620 and less than 680
 
 
 
 
 
 
 
 
591

Greater than or equal to 680 and less than 740
 
 
 
 
 
 
 
 
1,741

Greater than or equal to 740
 
 
 
 
 
 
 
 
3,264

Other internal credit metrics (3, 4)
 
 
 
 
 
 
 
 
6,673

Total commercial
$
270,372

 
$
57,355

 
$
22,375

 
$
89,397

 
$
12,993

(1) 
Excludes $6.0 billion of loans accounted for under the fair value option.
(2) 
U.S. small business commercial includes $755 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, 2016, 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 include the Countrywide Financial Corporation (Countrywide) portfolio and loans repurchased in connection with the 2013 settlement with FNMA. 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 in the three and six months ended June 30, 2017 were primarily due to an increase in the expected principal and interest cash flows due to lower default estimates.
 
 

 
 
Rollforward of Accretable Yield
 
 
 
 
 
 
(Dollars in millions)
Three Months Ended June 30, 2017
 
Six Months Ended June 30, 2017
Accretable yield, beginning of period
$
3,550

 
$
3,805

Accretion
(155
)
 
(318
)
Disposals/transfers
(148
)
 
(239
)
Reclassifications from nonaccretable difference
41

 
40

Accretable yield, June 30, 2017
$
3,288

 
$
3,288

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 June 30, 2017 and December 31, 2016, and the average carrying value and interest income recognized for the three and six months ended June 30, 2017 and 2016 for impaired loans in the Corporation’s Consumer Real Estate portfolio segment. 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2017
 
December 31, 2016
(Dollars in millions)
 
 
 
 
Unpaid
Principal
Balance
 
Carrying
Value
 
Related
Allowance
 
Unpaid
Principal
Balance
 
Carrying
Value
 
Related
Allowance
With no recorded allowance
 
 
 
 
 

 
 

 
 

 
 

 
 

 
 
Residential mortgage
 
 
 
 
$
9,966

 
$
7,696

 
$

 
$
11,151

 
$
8,695

 
$

Home equity
 
 
 
 
3,692

 
1,987

 

 
3,704

 
1,953

 

With an allowance recorded
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
Residential mortgage
 
 
 
 
$
3,525

 
$
3,424

 
$
211

 
$
4,041

 
$
3,936

 
$
219

Home equity
 
 
 
 
978

 
886

 
170

 
910

 
824

 
137

Total
 
 
 
 
 

 
 

 
 

 
 
 
 
 
 
Residential mortgage
 
 
 
 
$
13,491

 
$
11,120

 
$
211

 
$
15,192

 
$
12,631

 
$
219

Home equity
 
 
 
 
4,670

 
2,873

 
170

 
4,614

 
2,777

 
137

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30
 
Six Months Ended June 30
 
2017
 
2016
 
2017
 
2016
 
Average
Carrying
Value
 
Interest
Income
Recognized
(1)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(1)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(1)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(1)
With no recorded allowance
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
7,886

 
$
81

 
$
10,345

 
$
100

 
$
8,192

 
$
160

 
$
10,925

 
$
194

Home equity
1,999

 
28

 
1,870

 
17

 
2,000

 
55

 
1,843

 
30

With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
3,647

 
$
33

 
$
5,387

 
$
46

 
$
3,723

 
$
68

 
$
5,737

 
$
97

Home equity
868

 
7

 
873

 
5

 
842

 
12

 
882

 
11

Total
 

 
 

 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
11,533

 
$
114

 
$
15,732

 
$
146

 
$
11,915

 
$
228

 
$
16,662

 
$
291

Home equity
2,867

 
35

 
2,743

 
22

 
2,842

 
67

 
2,725

 
41

(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 June 30, 2017 and 2016 carrying value for consumer real estate loans that were modified in a TDR during the three and six months ended June 30, 2017 and 2016 by type of modification.
 
 
 
 
 
 
 
 
Consumer Real Estate – Modification Programs
 
 
 
 
 
 
 
 
 
 
 
TDRs Entered into During the Three Months Ended June 30
 
2017
 
2016
(Dollars in millions)
Residential Mortgage
 
Home
Equity
 
Residential Mortgage
 
Home
Equity
Modifications under government programs
 
 
 
 
 
 
 
Contractual interest rate reduction
$
9

 
$
2

 
$
23

 
$
12

Principal and/or interest forbearance

 
1

 

 
4

Other modifications (1)
3

 

 
8

 

Total modifications under government programs
12

 
3

 
31

 
16

Modifications under proprietary programs
 
 
 
 
 
 
 
Contractual interest rate reduction
19

 
1

 
14

 
2

Capitalization of past due amounts
9

 

 
5

 

Principal and/or interest forbearance
3

 

 
2

 
1

Other modifications (1)
3

 
13

 
9

 
17

Total modifications under proprietary programs
34

 
14

 
30

 
20

Trial modifications
222

 
165

 
300

 
145

Loans discharged in Chapter 7 bankruptcy (2)
45

 
19

 
44

 
19

Total modifications
$
313

 
$
201

 
$
405

 
$
200

 
 
 
 
 
 
 
 
 
TDRs Entered into During the Six Months Ended June 30
 
2017
 
2016
Modifications under government programs
 
 
 
 
 
 
 
Contractual interest rate reduction
$
33

 
$
5

 
$
66

 
$
18

Principal and/or interest forbearance
1

 
2

 

 
6

Other modifications (1)
8

 

 
19

 
1

Total modifications under government programs
42

 
7

 
85

 
25

Modifications under proprietary programs
 
 
 
 
 
 
 
Contractual interest rate reduction
39

 
33

 
32

 
28

Capitalization of past due amounts
16

 
5

 
14

 
3

Principal and/or interest forbearance
5

 
4

 
6

 
16

Other modifications (1)
4

 
40

 
11

 
20

Total modifications under proprietary programs
64

 
82

 
63

 
67

Trial modifications
382

 
240

 
540

 
230

Loans discharged in Chapter 7 bankruptcy (2)
93

 
36

 
97

 
39

Total modifications
$
581

 
$
365

 
$
785

 
$
361

(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 and six months ended June 30, 2017 and 2016 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.