Outstanding Loans and Leases (Tables)
|
3 Months Ended |
Mar. 31, 2018 |
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 March 31, 2018 and December 31, 2017.
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30-59 Days Past Due (1)
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60-89 Days Past Due (1)
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90 Days or More
Past Due (2)
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Total Past Due 30 Days
or More
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Total Current or Less Than 30 Days Past Due (3)
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Purchased Credit-impaired (4)
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Loans Accounted for Under the Fair Value Option |
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Total
Outstandings
|
(Dollars in millions) |
March 31, 2018 |
Consumer real estate |
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Core portfolio |
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Residential mortgage |
$ |
1,080 |
|
|
$ |
284 |
|
|
$ |
962 |
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$ |
2,326 |
|
|
$ |
177,252 |
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|
|
|
|
|
$ |
179,578 |
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Home equity |
202 |
|
|
119 |
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|
491 |
|
|
812 |
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|
41,756 |
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|
42,568 |
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Non-core portfolio |
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Residential mortgage (5)
|
852 |
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|
406 |
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|
3,106 |
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|
4,364 |
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|
12,580 |
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|
$ |
7,590 |
|
|
|
|
24,534 |
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Home equity |
193 |
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|
114 |
|
|
549 |
|
|
856 |
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|
9,339 |
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|
2,545 |
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|
12,740 |
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Credit card and other consumer |
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U.S. credit card |
515 |
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|
355 |
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|
925 |
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|
1,795 |
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|
91,219 |
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|
93,014 |
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Direct/Indirect consumer (6)
|
253 |
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|
73 |
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|
41 |
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|
367 |
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|
90,846 |
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91,213 |
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Other consumer (7)
|
9 |
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2 |
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|
1 |
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|
12 |
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|
2,848 |
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|
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|
2,860 |
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Total consumer |
3,104 |
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|
1,353 |
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|
6,075 |
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|
10,532 |
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|
425,840 |
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|
10,135 |
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|
446,507 |
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Consumer loans accounted for under the fair value option (8)
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$ |
894 |
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|
894 |
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Total consumer loans and leases |
3,104 |
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|
1,353 |
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|
6,075 |
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|
10,532 |
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|
425,840 |
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|
10,135 |
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|
894 |
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|
447,401 |
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Commercial |
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U.S. commercial |
773 |
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|
173 |
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|
416 |
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|
1,362 |
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|
287,114 |
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|
288,476 |
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Non-U.S. commercial |
36 |
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— |
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— |
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|
36 |
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|
97,329 |
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|
97,365 |
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Commercial real estate (9)
|
159 |
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|
— |
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|
37 |
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|
196 |
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|
59,889 |
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|
60,085 |
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Commercial lease financing |
173 |
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|
29 |
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27 |
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|
229 |
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21,535 |
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21,764 |
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U.S. small business commercial |
79 |
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|
43 |
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|
87 |
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|
209 |
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|
13,683 |
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13,892 |
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Total commercial |
1,220 |
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|
245 |
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|
567 |
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|
2,032 |
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|
479,550 |
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|
481,582 |
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Commercial loans accounted for under the fair value option (8)
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5,095 |
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|
5,095 |
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Total commercial loans and leases |
1,220 |
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|
245 |
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|
567 |
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|
2,032 |
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|
479,550 |
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|
5,095 |
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|
486,677 |
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Total loans and leases (10)
|
$ |
4,324 |
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$ |
1,598 |
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$ |
6,642 |
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|
$ |
12,564 |
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$ |
905,390 |
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$ |
10,135 |
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$ |
5,989 |
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|
$ |
934,078 |
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Percentage of outstandings |
0.47 |
% |
|
0.17 |
% |
|
0.71 |
% |
|
1.35 |
% |
|
96.93 |
% |
|
1.08 |
% |
|
0.64 |
% |
|
100.00 |
% |
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(1) |
Consumer real estate loans 30-59 days past due includes fully-insured loans of $689 million and nonperforming loans of $267 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $341 million and nonperforming loans of $200 million.
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(2) |
Consumer real estate includes fully-insured loans of $2.9 billion.
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(3) |
Consumer real estate includes $2.2 billion and direct/indirect consumer includes $43 million of nonperforming loans.
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(4) |
Purchased credit-impaired (PCI) loan amounts are shown gross of the valuation allowance. |
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(5) |
Total outstandings includes pay option loans of $1.3 billion. The Corporation no longer originates this product.
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(6) |
Total outstandings includes auto and specialty lending loans of $49.1 billion, unsecured consumer lending loans of $428 million, U.S. securities-based lending loans of $38.1 billion, non-U.S. consumer loans of $2.9 billion and other consumer loans of $676 million.
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(7) |
Total outstandings includes consumer leases of $2.7 billion and consumer overdrafts of $129 million.
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(8) |
Consumer loans accounted for under the fair value option includes residential mortgage loans of $523 million and home equity loans of $371 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $3.2 billion and non-U.S. commercial loans of $1.9 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.
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(9) |
Total outstandings includes U.S. commercial real estate loans of $55.6 billion and non-U.S. commercial real estate loans of $4.5 billion.
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(10) |
Total outstandings Includes loans and leases pledged as collateral of $47.8 billion. The Corporation also pledged $151.4 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank (FHLB).
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30-59 Days Past Due (1)
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60-89 Days Past Due (1)
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90 Days or More Past Due (2)
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Total Past Due 30 Days or More |
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Total
Current or
Less Than
30 Days
Past Due (3)
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Purchased Credit-impaired (4)
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Loans
Accounted
for Under
the Fair
Value Option
|
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Total Outstandings |
(Dollars in millions) |
December 31, 2017 |
Consumer real estate |
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Core portfolio |
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Residential mortgage |
$ |
1,242 |
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|
$ |
321 |
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|
$ |
1,040 |
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$ |
2,603 |
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$ |
174,015 |
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|
|
|
|
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$ |
176,618 |
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Home equity |
215 |
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|
108 |
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|
473 |
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|
796 |
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|
43,449 |
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|
44,245 |
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Non-core portfolio |
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Residential mortgage (5)
|
1,028 |
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|
468 |
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|
3,535 |
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|
5,031 |
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|
14,161 |
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|
$ |
8,001 |
|
|
|
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|
27,193 |
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Home equity |
224 |
|
|
121 |
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|
572 |
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|
917 |
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|
9,866 |
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|
2,716 |
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|
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|
13,499 |
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Credit card and other consumer |
|
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|
|
|
|
|
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|
|
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|
|
|
|
|
|
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U.S. credit card |
542 |
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|
405 |
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|
900 |
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|
1,847 |
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|
94,438 |
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|
|
|
|
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|
96,285 |
|
Direct/Indirect consumer (6)
|
320 |
|
|
102 |
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|
43 |
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|
465 |
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|
93,365 |
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|
|
|
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|
93,830 |
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Other consumer (7)
|
10 |
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|
2 |
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|
1 |
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|
13 |
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|
2,665 |
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|
|
|
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|
2,678 |
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Total consumer |
3,581 |
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|
1,527 |
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|
6,564 |
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|
11,672 |
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|
431,959 |
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|
10,717 |
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|
|
|
454,348 |
|
Consumer loans accounted for under the fair value option (8)
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|
|
|
|
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|
$ |
928 |
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|
928 |
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Total consumer loans and leases |
3,581 |
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|
1,527 |
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|
6,564 |
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|
11,672 |
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|
431,959 |
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|
10,717 |
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|
928 |
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|
455,276 |
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Commercial |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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U.S. commercial |
547 |
|
|
244 |
|
|
425 |
|
|
1,216 |
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|
283,620 |
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|
|
|
|
|
|
284,836 |
|
Non-U.S. commercial |
52 |
|
|
1 |
|
|
3 |
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|
56 |
|
|
97,736 |
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|
|
|
|
|
|
97,792 |
|
Commercial real estate (9)
|
48 |
|
|
10 |
|
|
29 |
|
|
87 |
|
|
58,211 |
|
|
|
|
|
|
|
58,298 |
|
Commercial lease financing |
110 |
|
|
68 |
|
|
26 |
|
|
204 |
|
|
21,912 |
|
|
|
|
|
|
|
22,116 |
|
U.S. small business commercial |
95 |
|
|
45 |
|
|
88 |
|
|
228 |
|
|
13,421 |
|
|
|
|
|
|
|
13,649 |
|
Total commercial |
852 |
|
|
368 |
|
|
571 |
|
|
1,791 |
|
|
474,900 |
|
|
|
|
|
|
|
476,691 |
|
Commercial loans accounted for under the fair value option (8)
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|
|
|
|
|
|
|
|
|
|
|
4,782 |
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|
4,782 |
|
Total commercial loans and leases |
852 |
|
|
368 |
|
|
571 |
|
|
1,791 |
|
|
474,900 |
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|
|
|
4,782 |
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|
481,473 |
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Total loans and leases (10)
|
$ |
4,433 |
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$ |
1,895 |
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|
$ |
7,135 |
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$ |
13,463 |
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$ |
906,859 |
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|
$ |
10,717 |
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|
$ |
5,710 |
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|
$ |
936,749 |
|
Percentage of outstandings |
0.48 |
% |
|
0.20 |
% |
|
0.76 |
% |
|
1.44 |
% |
|
96.81 |
% |
|
1.14 |
% |
|
0.61 |
% |
|
100.00 |
% |
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|
(1) |
Consumer real estate loans 30-59 days past due includes fully-insured loans of $850 million and nonperforming loans of $253 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $386 million and nonperforming loans of $195 million.
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(2) |
Consumer real estate includes fully-insured loans of $3.2 billion.
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(3) |
Consumer real estate includes $2.3 billion and direct/indirect consumer includes $43 million of nonperforming loans.
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(4) |
PCI loan amounts are shown gross of the valuation allowance. |
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(5) |
Total outstandings includes pay option loans of $1.4 billion. The Corporation no longer originates this product.
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(6) |
Total outstandings includes auto and specialty lending loans of $49.9 billion, unsecured consumer lending loans of $469 million, U.S. securities-based lending loans of $39.8 billion, non-U.S. consumer loans of $3.0 billion and other consumer loans of $684 million.
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(7) |
Total outstandings includes consumer leases of $2.5 billion and consumer overdrafts of $163 million.
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(8) |
Consumer loans accounted for under the fair value option includes residential mortgage loans of $567 million and home equity loans of $361 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.6 billion and non-U.S. commercial loans of $2.2 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.
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(9) |
Total outstandings includes U.S. commercial real estate loans of $54.8 billion and non-U.S. commercial real estate loans of $3.5 billion.
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(10) |
Total outstandings Includes loans and leases pledged as collateral of $40.1 billion. The Corporation also pledged $160.3 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and FHLB.
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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, 2018 and December 31, 2017. 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 2017 Annual Report on Form 10-K.
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Credit Quality |
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Nonperforming Loans
and Leases
|
|
Accruing Past Due
90 Days or More
|
(Dollars in millions) |
March 31 2018 |
|
December 31 2017 |
|
March 31 2018 |
|
December 31 2017 |
Consumer real estate |
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|
|
|
|
|
|
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Core portfolio |
|
|
|
|
|
|
|
Residential mortgage (1)
|
$ |
1,073 |
|
|
$ |
1,087 |
|
|
$ |
385 |
|
|
$ |
417 |
|
Home equity |
1,118 |
|
|
1,079 |
|
|
— |
|
|
— |
|
Non-core portfolio |
|
|
|
|
|
|
|
|
|
|
Residential mortgage (1)
|
1,189 |
|
|
1,389 |
|
|
2,500 |
|
|
2,813 |
|
Home equity |
1,480 |
|
|
1,565 |
|
|
— |
|
|
— |
|
Credit card and other consumer |
|
|
|
|
|
|
|
|
|
U.S. credit card |
n/a |
|
|
n/a |
|
|
925 |
|
|
900 |
|
Direct/Indirect consumer |
46 |
|
|
46 |
|
|
38 |
|
|
40 |
|
Other consumer |
— |
|
|
— |
|
|
1 |
|
|
— |
|
Total consumer |
4,906 |
|
|
5,166 |
|
|
3,849 |
|
|
4,170 |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
U.S. commercial |
1,059 |
|
|
814 |
|
|
98 |
|
|
144 |
|
Non-U.S. commercial |
255 |
|
|
299 |
|
|
— |
|
|
3 |
|
Commercial real estate |
73 |
|
|
112 |
|
|
13 |
|
|
4 |
|
Commercial lease financing |
27 |
|
|
24 |
|
|
8 |
|
|
19 |
|
U.S. small business commercial |
58 |
|
|
55 |
|
|
76 |
|
|
75 |
|
Total commercial |
1,472 |
|
|
1,304 |
|
|
195 |
|
|
245 |
|
Total loans and leases |
$ |
6,378 |
|
|
$ |
6,470 |
|
|
$ |
4,044 |
|
|
$ |
4,415 |
|
|
|
(1) |
Residential mortgage loans in the core and non-core portfolios accruing past due 90 days or more are fully-insured loans. At March 31, 2018 and December 31, 2017, residential mortgage includes $2.0 billion and $2.2 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 $885 million and $1.0 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, 2018 and December 31, 2017.
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Consumer Real Estate – Credit Quality Indicators (1)
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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
|
(Dollars in millions) |
March 31, 2018 |
Refreshed LTV (4)
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
Less than or equal to 90 percent |
$ |
157,236 |
|
|
$ |
10,484 |
|
|
$ |
6,535 |
|
|
$ |
41,498 |
|
|
$ |
7,629 |
|
|
$ |
1,691 |
|
Greater than 90 percent but less than or equal to 100 percent |
3,046 |
|
|
783 |
|
|
530 |
|
|
488 |
|
|
985 |
|
|
379 |
|
Greater than 100 percent |
1,357 |
|
|
907 |
|
|
525 |
|
|
582 |
|
|
1,581 |
|
|
475 |
|
Fully-insured loans (5)
|
17,939 |
|
|
4,770 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total consumer real estate |
$ |
179,578 |
|
|
$ |
16,944 |
|
|
$ |
7,590 |
|
|
$ |
42,568 |
|
|
$ |
10,195 |
|
|
$ |
2,545 |
|
Refreshed FICO score |
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
$ |
2,183 |
|
|
$ |
2,060 |
|
|
$ |
1,790 |
|
|
$ |
1,165 |
|
|
$ |
1,976 |
|
|
$ |
425 |
|
Greater than or equal to 620 and less than 680 |
4,417 |
|
|
1,771 |
|
|
1,530 |
|
|
2,261 |
|
|
2,243 |
|
|
425 |
|
Greater than or equal to 680 and less than 740 |
22,407 |
|
|
2,988 |
|
|
2,273 |
|
|
7,685 |
|
|
2,592 |
|
|
729 |
|
Greater than or equal to 740 |
132,632 |
|
|
5,355 |
|
|
1,997 |
|
|
31,457 |
|
|
3,384 |
|
|
966 |
|
Fully-insured loans (5)
|
17,939 |
|
|
4,770 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total consumer real estate |
$ |
179,578 |
|
|
$ |
16,944 |
|
|
$ |
7,590 |
|
|
$ |
42,568 |
|
|
$ |
10,195 |
|
|
$ |
2,545 |
|
|
|
(1) |
Excludes $894 million of loans accounted for under the fair value option.
|
|
|
(3) |
Includes $1.1 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 |
|
|
|
|
|
|
|
U.S. Credit
Card
|
|
Direct/Indirect
Consumer
|
|
Other
Consumer
|
(Dollars in millions) |
March 31, 2018 |
Refreshed FICO score |
|
|
|
|
|
|
|
|
Less than 620 |
$ |
4,704 |
|
|
$ |
1,635 |
|
|
$ |
57 |
|
Greater than or equal to 620 and less than 680 |
12,052 |
|
|
1,902 |
|
|
155 |
|
Greater than or equal to 680 and less than 740 |
34,673 |
|
|
11,480 |
|
|
429 |
|
Greater than or equal to 740 |
41,585 |
|
|
34,467 |
|
|
2,088 |
|
Other internal credit metrics (1, 2)
|
— |
|
|
41,729 |
|
|
131 |
|
Total credit card and other consumer |
$ |
93,014 |
|
|
$ |
91,213 |
|
|
$ |
2,860 |
|
|
|
(1) |
Other internal credit metrics may include delinquency status, geography or other factors. |
|
|
(2) |
Direct/indirect consumer includes $41.1 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial – Credit Quality Indicators (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Commercial
|
|
Non-U.S.
Commercial
|
|
Commercial
Real Estate
|
|
Commercial Lease
Financing
|
|
U.S. Small Business
Commercial (2)
|
(Dollars in millions) |
March 31, 2018 |
Risk ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass rated |
$ |
279,492 |
|
|
$ |
95,807 |
|
|
$ |
59,562 |
|
|
$ |
21,275 |
|
|
$ |
314 |
|
Reservable criticized |
8,984 |
|
|
1,558 |
|
|
523 |
|
|
489 |
|
|
42 |
|
Refreshed FICO score (3)
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
|
|
|
|
|
|
|
|
|
238 |
|
Greater than or equal to 620 and less than 680 |
|
|
|
|
|
|
|
|
648 |
|
Greater than or equal to 680 and less than 740 |
|
|
|
|
|
|
|
|
1,926 |
|
Greater than or equal to 740 |
|
|
|
|
|
|
|
|
3,869 |
|
Other internal credit metrics (3, 4)
|
|
|
|
|
|
|
|
|
6,855 |
|
Total commercial |
$ |
288,476 |
|
|
$ |
97,365 |
|
|
$ |
60,085 |
|
|
$ |
21,764 |
|
|
$ |
13,892 |
|
|
|
(1) |
Excludes $5.1 billion of loans accounted for under the fair value option.
|
|
|
(2) |
U.S. small business commercial includes $719 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, 2018, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
(Dollars in millions) |
December 31, 2017 |
Refreshed LTV (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than or equal to 90 percent |
$ |
153,669 |
|
|
$ |
12,135 |
|
|
$ |
6,872 |
|
|
$ |
43,048 |
|
|
$ |
7,944 |
|
|
$ |
1,781 |
|
Greater than 90 percent but less than or equal to 100 percent |
3,082 |
|
|
850 |
|
|
559 |
|
|
549 |
|
|
1,053 |
|
|
412 |
|
Greater than 100 percent |
1,322 |
|
|
1,011 |
|
|
570 |
|
|
648 |
|
|
1,786 |
|
|
523 |
|
Fully-insured loans (5)
|
18,545 |
|
|
5,196 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total consumer real estate |
$ |
176,618 |
|
|
$ |
19,192 |
|
|
$ |
8,001 |
|
|
$ |
44,245 |
|
|
$ |
10,783 |
|
|
$ |
2,716 |
|
Refreshed FICO score |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
$ |
2,234 |
|
|
$ |
2,390 |
|
|
$ |
1,941 |
|
|
$ |
1,169 |
|
|
$ |
2,098 |
|
|
$ |
452 |
|
Greater than or equal to 620 and less than 680 |
4,531 |
|
|
2,086 |
|
|
1,657 |
|
|
2,371 |
|
|
2,393 |
|
|
466 |
|
Greater than or equal to 680 and less than 740 |
22,934 |
|
|
3,519 |
|
|
2,396 |
|
|
8,115 |
|
|
2,723 |
|
|
786 |
|
Greater than or equal to 740 |
128,374 |
|
|
6,001 |
|
|
2,007 |
|
|
32,590 |
|
|
3,569 |
|
|
1,012 |
|
Fully-insured loans (5)
|
18,545 |
|
|
5,196 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total consumer real estate |
$ |
176,618 |
|
|
$ |
19,192 |
|
|
$ |
8,001 |
|
|
$ |
44,245 |
|
|
$ |
10,783 |
|
|
$ |
2,716 |
|
|
|
(1) |
Excludes $928 million of loans accounted for under the fair value option.
|
|
|
(3) |
Includes $1.2 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 |
|
|
|
|
|
|
|
U.S. Credit
Card
|
|
Direct/Indirect
Consumer
|
|
Other
Consumer
|
(Dollars in millions) |
December 31, 2017 |
Refreshed FICO score |
|
|
|
|
|
|
|
|
Less than 620 |
$ |
4,730 |
|
|
$ |
1,630 |
|
|
$ |
49 |
|
Greater than or equal to 620 and less than 680 |
12,422 |
|
|
2,000 |
|
|
143 |
|
Greater than or equal to 680 and less than 740 |
35,656 |
|
|
11,906 |
|
|
398 |
|
Greater than or equal to 740 |
43,477 |
|
|
34,838 |
|
|
1,921 |
|
Other internal credit metrics (1, 2)
|
— |
|
|
43,456 |
|
|
167 |
|
Total credit card and other consumer |
$ |
96,285 |
|
|
$ |
93,830 |
|
|
$ |
2,678 |
|
|
|
(1) |
Other internal credit metrics may include delinquency status, geography or other factors. |
|
|
(2) |
Direct/indirect consumer includes $42.8 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial – Credit Quality Indicators (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Commercial
|
|
Non-U.S.
Commercial
|
|
Commercial
Real Estate
|
|
Commercial Lease
Financing
|
|
U.S. Small Business
Commercial (2)
|
(Dollars in millions) |
December 31, 2017 |
Risk ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass rated |
$ |
275,904 |
|
|
$ |
96,199 |
|
|
$ |
57,732 |
|
|
$ |
21,535 |
|
|
$ |
322 |
|
Reservable criticized |
8,932 |
|
|
1,593 |
|
|
566 |
|
|
581 |
|
|
50 |
|
Refreshed FICO score (3)
|
|
|
|
|
|
|
|
|
|
Less than 620 |
|
|
|
|
|
|
|
|
223 |
|
Greater than or equal to 620 and less than 680 |
|
|
|
|
|
|
|
|
625 |
|
Greater than or equal to 680 and less than 740 |
|
|
|
|
|
|
|
|
1,875 |
|
Greater than or equal to 740 |
|
|
|
|
|
|
|
|
3,713 |
|
Other internal credit metrics (3, 4)
|
|
|
|
|
|
|
|
|
6,841 |
|
Total commercial |
$ |
284,836 |
|
|
$ |
97,792 |
|
|
$ |
58,298 |
|
|
$ |
22,116 |
|
|
$ |
13,649 |
|
|
|
(1) |
Excludes $4.8 billion of loans accounted for under the fair value option.
|
|
|
(2) |
U.S. small business commercial includes $709 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, 2017, 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. The reclassifications from nonaccretable difference in the three months ended March 31, 2018 were primarily due to an increase in the expected principal and interest cash flows due to lower default estimates and the rising interest rate environment.
|
|
|
|
|
|
|
|
|
Rollforward of Accretable Yield |
|
|
|
|
|
(Dollars in millions) |
|
Three Months Ended March 31, 2018 |
Accretable yield, January 1, 2018 |
|
$ |
2,789 |
|
Accretion |
|
(130 |
) |
Disposals/transfers |
|
(107 |
) |
Reclassifications from nonaccretable difference |
|
178 |
|
Accretable yield, March 31, 2018 |
|
$ |
2,730 |
|
|
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, 2018 and December 31, 2017, and the average carrying value and interest income recognized for the three months ended March 31, 2018 and 2017 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Principal
Balance
|
|
Carrying
Value
|
|
Related
Allowance
|
|
Unpaid Principal
Balance
|
|
Carrying
Value
|
|
Related
Allowance
|
(Dollars in millions) |
March 31, 2018 |
|
December 31, 2017 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
6,793 |
|
|
$ |
5,451 |
|
|
$ |
— |
|
|
$ |
8,856 |
|
|
$ |
6,870 |
|
|
$ |
— |
|
Home equity |
3,583 |
|
|
1,943 |
|
|
— |
|
|
3,622 |
|
|
1,956 |
|
|
— |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
2,634 |
|
|
$ |
2,568 |
|
|
$ |
157 |
|
|
$ |
2,908 |
|
|
$ |
2,828 |
|
|
$ |
174 |
|
Home equity |
985 |
|
|
910 |
|
|
181 |
|
|
972 |
|
|
900 |
|
|
174 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage (1)
|
$ |
9,427 |
|
|
$ |
8,019 |
|
|
$ |
157 |
|
|
$ |
11,764 |
|
|
$ |
9,698 |
|
|
$ |
174 |
|
Home equity |
4,568 |
|
|
2,853 |
|
|
181 |
|
|
4,594 |
|
|
2,856 |
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Carrying Value |
|
Interest Income Recognized (2)
|
|
Average Carrying Value |
|
Interest Income Recognized (2)
|
|
|
|
|
|
Three Months Ended March 31 |
|
|
|
2018 |
|
2017 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
|
|
$ |
6,462 |
|
|
$ |
65 |
|
|
$ |
8,456 |
|
|
$ |
79 |
|
Home equity |
|
|
|
|
1,961 |
|
|
27 |
|
|
1,991 |
|
|
27 |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
|
|
$ |
2,705 |
|
|
$ |
25 |
|
|
$ |
3,832 |
|
|
$ |
35 |
|
Home equity |
|
|
|
|
892 |
|
|
6 |
|
|
825 |
|
|
5 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage (1)
|
|
|
|
|
$ |
9,167 |
|
|
$ |
90 |
|
|
$ |
12,288 |
|
|
$ |
114 |
|
Home equity |
|
|
|
|
2,853 |
|
|
33 |
|
|
2,816 |
|
|
32 |
|
|
|
(1) |
During the three months ended March 31, 2018, the Corporation transferred impaired residential mortgage loans with a carrying value of $1.2 billion to held for sale.
|
|
|
(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 presents the March 31, 2018 and 2017 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, 2018 and 2017, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate – TDRs Entered into During the Three Months Ended March 31, 2018 and 2017 |
|
|
|
Unpaid Principal Balance |
|
Carrying
Value
|
|
Pre-Modification Interest Rate |
|
Post-Modification Interest Rate (1)
|
|
Net
Charge-offs (2)
|
(Dollars in millions) |
March 31, 2018 |
|
Three Months Ended March 31, 2018 |
Residential mortgage |
$ |
407 |
|
|
$ |
358 |
|
|
4.39 |
% |
|
4.36 |
% |
|
$ |
3 |
|
Home equity |
207 |
|
|
161 |
|
|
4.37 |
|
|
4.37 |
|
|
6 |
|
Total |
$ |
614 |
|
|
$ |
519 |
|
|
4.39 |
|
|
4.36 |
|
|
$ |
9 |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, 2017 |
|
Three Months Ended March 31, 2017 |
Residential mortgage |
$ |
382 |
|
|
$ |
344 |
|
|
4.68 |
% |
|
4.44 |
% |
|
$ |
2 |
|
Home equity |
248 |
|
|
189 |
|
|
4.90 |
|
|
3.80 |
|
|
6 |
|
Total |
$ |
630 |
|
|
$ |
533 |
|
|
4.77 |
|
|
4.19 |
|
|
$ |
8 |
|
|
|
(1) |
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. |
|
|
(2) |
Net charge-offs include amounts recorded on loans modified during the period that are no longer held by the Corporation at March 31, 2018 and 2017 due to sales and other dispositions.
|
The table below presents the March 31, 2018 and 2017 carrying value for consumer real estate loans that were modified in a TDR during the three months ended March 31, 2018 and 2017, by type of modification.
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate – Modification Programs |
|
|
|
|
|
|
|
TDRs Entered into During the Three Months Ended March 31 |
(Dollars in millions) |
2018 |
|
2017 |
Modifications under government programs |
|
|
|
Contractual interest rate reduction |
$ |
7 |
|
|
$ |
32 |
|
Principal and/or interest forbearance |
— |
|
|
1 |
|
Other modifications (1)
|
6 |
|
|
2 |
|
Total modifications under government programs |
13 |
|
|
35 |
|
Modifications under proprietary programs |
|
|
|
Contractual interest rate reduction |
11 |
|
|
14 |
|
Capitalization of past due amounts |
14 |
|
|
5 |
|
Principal and/or interest forbearance |
6 |
|
|
3 |
|
Other modifications (1)
|
169 |
|
|
30 |
|
Total modifications under proprietary programs |
200 |
|
|
52 |
|
Trial modifications |
242 |
|
|
372 |
|
Loans discharged in Chapter 7 bankruptcy (2)
|
64 |
|
|
74 |
|
Total modifications |
$ |
519 |
|
|
$ |
533 |
|
|
|
(1) |
Includes other modifications such as term or payment extensions and repayment plans. During the three months ended March 31, 2018, this included $168 million of modifications related to the 2017 hurricanes that met the definition of a TDR. These modifications had been written down to their net realizable value less costs to sell or were fully insured as of March 31, 2018.
|
|
|
(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, 2018 and 2017 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months |
|
|
|
|
|
Three Months Ended March 31 |
(Dollars in millions) |
2018 |
|
2017 |
Modifications under government programs |
$ |
13 |
|
|
$ |
26 |
|
Modifications under proprietary programs |
31 |
|
|
34 |
|
Loans discharged in Chapter 7 bankruptcy (1)
|
23 |
|
|
62 |
|
Trial modifications (2)
|
45 |
|
|
212 |
|
Total modifications |
$ |
112 |
|
|
$ |
334 |
|
|
|
(1) |
Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. |
|
|
(2) |
Includes trial modification offers to which the customer did not respond. |
|
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, 2018 and December 31, 2017, and the average carrying value and interest income recognized for the three months ended March 31, 2018 and 2017 on TDRs within the Credit Card and Other Consumer portfolio segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired Loans – Credit Card and Other Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Principal
Balance
|
|
Carrying
Value (1)
|
|
Related
Allowance
|
|
Unpaid Principal
Balance
|
|
Carrying
Value (1)
|
|
Related
Allowance
|
(Dollars in millions) |
|
March 31, 2018 |
|
December 31, 2017 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct/Indirect consumer |
|
$ |
59 |
|
|
$ |
28 |
|
|
$ |
— |
|
|
$ |
58 |
|
|
$ |
28 |
|
|
$ |
— |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. credit card |
|
$ |
465 |
|
|
$ |
472 |
|
|
$ |
128 |
|
|
$ |
454 |
|
|
$ |
461 |
|
|
$ |
125 |
|
Direct/Indirect consumer |
|
1 |
|
|
1 |
|
|
— |
|
|
1 |
|
|
1 |
|
|
— |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. credit card |
|
$ |
465 |
|
|
$ |
472 |
|
|
$ |
128 |
|
|
$ |
454 |
|
|
$ |
461 |
|
|
$ |
125 |
|
Direct/Indirect consumer |
|
60 |
|
|
29 |
|
|
— |
|
|
59 |
|
|
29 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Carrying Value |
|
Interest Income Recognized (2)
|
|
Average Carrying Value |
|
Interest Income Recognized (2)
|
|
|
|
|
|
|
Three Months Ended March 31 |
|
|
|
|
2018 |
| |