Outstanding Loans and Leases |
Outstanding Loans and Leases
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 September 30, 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) |
September 30, 2018 |
Consumer real estate |
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Core portfolio |
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Residential mortgage |
$ |
1,248 |
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|
$ |
253 |
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|
$ |
814 |
|
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$ |
2,315 |
|
|
$ |
186,975 |
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|
|
|
|
|
$ |
189,290 |
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Home equity |
200 |
|
|
89 |
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|
453 |
|
|
742 |
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|
39,854 |
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|
|
|
|
|
40,596 |
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Non-core portfolio |
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|
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Residential mortgage |
815 |
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|
351 |
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|
2,345 |
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|
3,511 |
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|
10,044 |
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|
$ |
5,341 |
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|
|
|
18,896 |
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Home equity |
162 |
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|
78 |
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|
398 |
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|
638 |
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|
8,190 |
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|
1,811 |
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|
10,639 |
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Credit card and other consumer |
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U.S. credit card |
546 |
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|
387 |
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|
872 |
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|
1,805 |
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|
93,024 |
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|
94,829 |
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Direct/Indirect consumer (5)
|
297 |
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|
84 |
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|
37 |
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|
418 |
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|
90,920 |
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|
91,338 |
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Other consumer (6)
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— |
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— |
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— |
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— |
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|
203 |
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|
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|
203 |
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Total consumer |
3,268 |
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|
1,242 |
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|
4,919 |
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|
9,429 |
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|
429,210 |
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|
7,152 |
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|
|
|
445,791 |
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Consumer loans accounted for under the fair value option (7)
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$ |
755 |
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|
755 |
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Total consumer loans and leases |
3,268 |
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|
1,242 |
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|
4,919 |
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|
9,429 |
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|
429,210 |
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|
7,152 |
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|
755 |
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|
446,546 |
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Commercial |
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U.S. commercial |
433 |
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|
127 |
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|
469 |
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|
1,029 |
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|
284,633 |
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|
285,662 |
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Non-U.S. commercial |
29 |
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— |
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— |
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|
29 |
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|
95,973 |
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|
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|
96,002 |
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Commercial real estate (8)
|
20 |
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|
33 |
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|
10 |
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|
63 |
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|
60,772 |
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|
60,835 |
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Commercial lease financing |
48 |
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|
94 |
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|
41 |
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|
183 |
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|
21,363 |
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21,546 |
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U.S. small business commercial |
68 |
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|
48 |
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|
89 |
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|
205 |
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|
14,029 |
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14,234 |
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Total commercial |
598 |
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|
302 |
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|
609 |
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|
1,509 |
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|
476,770 |
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|
478,279 |
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Commercial loans accounted for under the fair value option (7)
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4,976 |
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|
4,976 |
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Total commercial loans and leases |
598 |
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|
302 |
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|
609 |
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|
1,509 |
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|
476,770 |
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|
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|
4,976 |
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|
483,255 |
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Total loans and leases (9)
|
$ |
3,866 |
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|
$ |
1,544 |
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$ |
5,528 |
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$ |
10,938 |
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$ |
905,980 |
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$ |
7,152 |
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|
$ |
5,731 |
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|
$ |
929,801 |
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Percentage of outstandings |
0.42 |
% |
|
0.17 |
% |
|
0.59 |
% |
|
1.18 |
% |
|
97.44 |
% |
|
0.77 |
% |
|
0.61 |
% |
|
100.00 |
% |
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|
(1) |
Consumer real estate loans 30-59 days past due includes fully-insured loans of $714 million and nonperforming loans of $233 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $309 million and nonperforming loans of $175 million.
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(2) |
Consumer real estate includes fully-insured loans of $2.2 billion.
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(3) |
Consumer real estate includes $2.0 billion and direct/indirect consumer includes $44 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 auto and specialty lending loans and leases of $50.1 billion, unsecured consumer lending loans of $392 million, U.S. securities-based lending loans of $37.4 billion, non-U.S. consumer loans of $2.7 billion and other consumer loans of $756 million.
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(6) |
Substantially all of other consumer is consumer overdrafts. |
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(7) |
Consumer loans accounted for under the fair value option includes residential mortgage loans of $407 million and home equity loans of $348 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $3.6 billion and non-U.S. commercial loans of $1.4 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.
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(8) |
Total outstandings includes U.S. commercial real estate loans of $56.9 billion and non-U.S. commercial real estate loans of $3.9 billion.
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(9) |
Total outstandings includes loans and leases pledged as collateral of $45.6 billion. The Corporation also pledged $158.5 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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|
|
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|
|
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Residential mortgage |
$ |
1,242 |
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|
$ |
321 |
|
|
$ |
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 |
|
|
108 |
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|
473 |
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|
796 |
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|
43,449 |
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|
|
|
|
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|
44,245 |
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Non-core portfolio |
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Residential mortgage |
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 |
|
|
|
|
|
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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|
13,499 |
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Credit card and other consumer |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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U.S. credit card |
542 |
|
|
405 |
|
|
900 |
|
|
1,847 |
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|
94,438 |
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|
|
|
|
|
|
96,285 |
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Direct/Indirect consumer (5)
|
330 |
|
|
104 |
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|
44 |
|
|
478 |
|
|
95,864 |
|
|
|
|
|
|
|
96,342 |
|
Other consumer (6)
|
— |
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|
— |
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|
— |
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|
— |
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|
166 |
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|
166 |
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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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|
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|
454,348 |
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Consumer loans accounted for under the fair value option (7)
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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 |
|
|
6,564 |
|
|
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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|
|
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U.S. commercial |
547 |
|
|
244 |
|
|
425 |
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|
1,216 |
|
|
283,620 |
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|
|
|
|
|
|
284,836 |
|
Non-U.S. commercial |
52 |
|
|
1 |
|
|
3 |
|
|
56 |
|
|
97,736 |
|
|
|
|
|
|
|
97,792 |
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Commercial real estate (8)
|
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 (7)
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|
|
|
|
|
|
|
|
|
|
4,782 |
|
|
4,782 |
|
Total commercial loans and leases |
852 |
|
|
368 |
|
|
571 |
|
|
1,791 |
|
|
474,900 |
|
|
|
|
4,782 |
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|
481,473 |
|
Total loans and leases (9)
|
$ |
4,433 |
|
|
$ |
1,895 |
|
|
$ |
7,135 |
|
|
$ |
13,463 |
|
|
$ |
906,859 |
|
|
$ |
10,717 |
|
|
$ |
5,710 |
|
|
$ |
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 auto and specialty lending loans and leases of $52.4 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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(6) |
Substantially all of other consumer is consumer overdrafts. |
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(7) |
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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(8) |
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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(9) |
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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The Corporation categorizes consumer real estate loans as core and non-core based on loan and customer characteristics such as origination date, product type, LTV, FICO score and delinquency status consistent with its current consumer and mortgage servicing strategy. Generally, loans that were originated after January 1, 2010, qualified under government-sponsored enterprise (GSE) underwriting guidelines, or otherwise met the Corporation’s underwriting guidelines in place in 2015 are characterized as core loans. All other loans are generally characterized as non-core loans and represent run-off portfolios.
The Corporation has entered into long-term credit protection agreements with FNMA and FHLMC on loans totaling $6.1 billion and $6.3 billion at September 30, 2018 and December 31, 2017, providing full credit protection on residential mortgage loans that become severely delinquent. All of these loans are individually insured and therefore the Corporation does not record an allowance for credit losses related to these loans.
During the three and nine months ended September 30, 2018, certain consumer real estate loans, primarily non-core, with carrying values of $3.7 billion and $4.9 billion were sold, resulting in gains of $84 million and $656 million recorded in other income in the Consolidated Statement of Income.
Nonperforming Loans and Leases
The Corporation classifies junior-lien home equity loans as nonperforming when the first-lien loan becomes 90 days past due even if the junior-lien loan is performing. At September 30, 2018 and December 31, 2017, $225 million and $330 million of such junior-lien home equity loans were included in nonperforming loans.
The Corporation classifies consumer real estate loans that have been discharged in Chapter 7 bankruptcy and not reaffirmed by the borrower as troubled debt restructurings (TDRs), irrespective of payment history or delinquency status, even if the repayment terms for the loan have not been otherwise modified. The Corporation continues to have a lien on the underlying collateral. At September 30, 2018, nonperforming loans discharged in Chapter 7 bankruptcy with no change in repayment terms were $220 million of which $113 million were current on their contractual payments, while $90 million were 90 days or more past due. Of the contractually current nonperforming loans, 66 percent were discharged in Chapter 7 bankruptcy over 12 months ago, and 58 percent were discharged 24 months or more ago.
During the three and nine months ended September 30, 2018, the Corporation sold nonperforming and PCI consumer real estate loans with a carrying value of $2.1 billion and $2.7 billion, including $2.0 billion and $2.1 billion of PCI loans, compared to $700 million and $1.2 billion, including $538 million and $742 million of PCI loans, for the same periods in 2017. During the nine months ended September 30, 2018 and 2017, the Corporation transferred consumer nonperforming loans with a net carrying value of $2 million and $198 million to held for sale.
The table below presents the Corporation’s nonperforming loans and leases including nonperforming TDRs, and loans accruing past due 90 days or more at September 30, 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) |
September 30 2018 |
|
December 31 2017 |
|
September 30 2018 |
|
December 31 2017 |
Consumer real estate |
|
|
|
|
|
|
|
|
|
|
|
Core portfolio |
|
|
|
|
|
|
|
Residential mortgage (1)
|
$ |
1,011 |
|
|
$ |
1,087 |
|
|
$ |
308 |
|
|
$ |
417 |
|
Home equity |
1,056 |
|
|
1,079 |
|
|
— |
|
|
— |
|
Non-core portfolio |
|
|
|
|
|
|
|
|
|
|
Residential mortgage (1)
|
1,023 |
|
|
1,389 |
|
|
1,853 |
|
|
2,813 |
|
Home equity |
1,170 |
|
|
1,565 |
|
|
— |
|
|
— |
|
Credit card and other consumer |
|
|
|
|
|
|
|
|
|
U.S. credit card |
n/a |
|
|
n/a |
|
|
872 |
|
|
900 |
|
Direct/Indirect consumer |
46 |
|
|
46 |
|
|
35 |
|
|
40 |
|
Other consumer |
— |
|
|
— |
|
|
— |
|
|
— |
|
Total consumer |
4,306 |
|
|
5,166 |
|
|
3,068 |
|
|
4,170 |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
U.S. commercial |
699 |
|
|
814 |
|
|
114 |
|
|
144 |
|
Non-U.S. commercial |
31 |
|
|
299 |
|
|
— |
|
|
3 |
|
Commercial real estate |
46 |
|
|
112 |
|
|
1 |
|
|
4 |
|
Commercial lease financing |
14 |
|
|
24 |
|
|
33 |
|
|
19 |
|
U.S. small business commercial |
58 |
|
|
55 |
|
|
73 |
|
|
75 |
|
Total commercial |
848 |
|
|
1,304 |
|
|
221 |
|
|
245 |
|
Total loans and leases |
$ |
5,154 |
|
|
$ |
6,470 |
|
|
$ |
3,289 |
|
|
$ |
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 September 30, 2018 and December 31, 2017, residential mortgage includes $1.6 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 $579 million and $1.0 billion of loans on which interest is still accruing.
|
n/a = not applicable
Credit Quality Indicators
The Corporation monitors credit quality within its Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments based on primary credit quality indicators. For more information on the portfolio segments and their related credit quality indicators, see Significant Accounting Principles – Loans and Leases in Note 1 – Summary of Significant Accounting Principles and Credit Quality Indicators in Note 4 – Outstanding Loans and Leases to the Consolidated Financial Statements of the Corporation’s 2017 Annual Report on Form 10-K.
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 September 30, 2018 and December 31, 2017.
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate – Credit Quality Indicators (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Residential
Mortgage (2)
|
|
Non-core Residential Mortgage (2)
|
|
Residential Mortgage
PCI
|
|
Core Home Equity (2)
|
|
Non-core Home
Equity (2)
|
|
Home
Equity PCI
|
(Dollars in millions) |
September 30, 2018 |
Refreshed LTV (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than or equal to 90 percent |
$ |
168,949 |
|
|
$ |
8,594 |
|
|
$ |
4,720 |
|
|
$ |
39,719 |
|
|
$ |
6,862 |
|
|
$ |
1,277 |
|
Greater than 90 percent but less than or equal to 100 percent |
2,483 |
|
|
503 |
|
|
310 |
|
|
409 |
|
|
757 |
|
|
248 |
|
Greater than 100 percent |
923 |
|
|
544 |
|
|
311 |
|
|
468 |
|
|
1,209 |
|
|
286 |
|
Fully-insured loans (4)
|
16,935 |
|
|
3,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer real estate |
$ |
189,290 |
|
|
$ |
13,555 |
|
|
$ |
5,341 |
|
|
$ |
40,596 |
|
|
$ |
8,828 |
|
|
$ |
1,811 |
|
Refreshed FICO score |
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
$ |
2,115 |
|
|
$ |
1,673 |
|
|
$ |
1,185 |
|
|
$ |
1,118 |
|
|
$ |
1,650 |
|
|
$ |
290 |
|
Greater than or equal to 620 and less than 680 |
4,379 |
|
|
1,387 |
|
|
1,010 |
|
|
2,096 |
|
|
1,883 |
|
|
288 |
|
Greater than or equal to 680 and less than 740 |
22,973 |
|
|
2,327 |
|
|
1,574 |
|
|
7,113 |
|
|
2,288 |
|
|
511 |
|
Greater than or equal to 740 |
142,888 |
|
|
4,254 |
|
|
1,572 |
|
|
30,269 |
|
|
3,007 |
|
|
722 |
|
Fully-insured loans (4)
|
16,935 |
|
|
3,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total consumer real estate |
$ |
189,290 |
|
|
$ |
13,555 |
|
|
$ |
5,341 |
|
|
$ |
40,596 |
|
|
$ |
8,828 |
|
|
$ |
1,811 |
|
|
|
(1) |
Excludes $755 million of loans accounted for under the fair value option.
|
|
|
(3) |
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance. |
|
|
(4) |
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) |
September 30, 2018 |
Refreshed FICO score |
|
|
|
|
|
|
|
Less than 620 |
$ |
4,683 |
|
|
$ |
1,752 |
|
|
|
|
Greater than or equal to 620 and less than 680 |
11,974 |
|
|
3,260 |
|
|
|
|
Greater than or equal to 680 and less than 740 |
34,896 |
|
|
9,090 |
|
|
|
|
Greater than or equal to 740 |
43,276 |
|
|
36,351 |
|
|
|
|
Other internal credit metrics (1, 2)
|
|
|
|
40,885 |
|
|
$ |
203 |
|
Total credit card and other consumer |
$ |
94,829 |
|
|
$ |
91,338 |
|
|
$ |
203 |
|
|
|
(1) |
Other internal credit metrics may include delinquency status, geography or other factors. |
|
|
(2) |
Direct/indirect consumer includes $40.1 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) |
September 30, 2018 |
Risk ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass rated |
$ |
277,732 |
|
|
$ |
94,868 |
|
|
$ |
60,271 |
|
|
$ |
21,173 |
|
|
$ |
275 |
|
Reservable criticized |
7,930 |
|
|
1,134 |
|
|
564 |
|
|
373 |
|
|
31 |
|
Refreshed FICO score (3)
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
|
|
|
|
|
|
|
|
|
242 |
|
Greater than or equal to 620 and less than 680 |
|
|
|
|
|
|
|
|
650 |
|
Greater than or equal to 680 and less than 740 |
|
|
|
|
|
|
|
|
1,993 |
|
Greater than or equal to 740 |
|
|
|
|
|
|
|
|
4,181 |
|
Other internal credit metrics (3, 4)
|
|
|
|
|
|
|
|
|
6,862 |
|
Total commercial |
$ |
285,662 |
|
|
$ |
96,002 |
|
|
$ |
60,835 |
|
|
$ |
21,546 |
|
|
$ |
14,234 |
|
|
|
(1) |
Excludes $5.0 billion of loans accounted for under the fair value option.
|
|
|
(2) |
U.S. small business commercial includes $699 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 September 30, 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
|
|
Core Home Equity (2)
|
|
Non-core Home Equity (2)
|
|
Home
Equity PCI
|
(Dollars in millions) |
December 31, 2017 |
Refreshed LTV (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 (4)
|
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 (4)
|
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) |
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance. |
|
|
(4) |
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 |
|
|
$ |
2,005 |
|
|
|
|
Greater than or equal to 620 and less than 680 |
12,422 |
|
|
4,064 |
|
|
|
|
Greater than or equal to 680 and less than 740 |
35,656 |
|
|
10,371 |
|
|
|
|
Greater than or equal to 740 |
43,477 |
|
|
36,445 |
|
|
|
|
Other internal credit metrics (1, 2)
|
|
|
|
43,457 |
|
|
$ |
166 |
|
Total credit card and other consumer |
$ |
96,285 |
|
|
$ |
96,342 |
|
|
$ |
166 |
|
|
|
(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. |
Impaired Loans and Troubled Debt Restructurings
A loan is considered impaired when, based on current information, it is probable that the Corporation will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. For additional information on impaired loans, see Note 1 – Summary of Significant Accounting Principles and Note 4 – Outstanding Loans and Leases to the Consolidated Financial Statements of the Corporation’s 2017 Annual Report on Form 10-K.
Consumer Real Estate
Impaired consumer real estate loans within the Consumer Real Estate portfolio segment consist entirely of TDRs. Excluding PCI loans, most modifications of consumer real estate loans meet the definition of TDRs when a binding offer is extended to a borrower. For more information on impaired consumer real estate loans, see Note 4 – Outstanding Loans and Leases to the Consolidated Financial Statements of the Corporation’s 2017 Annual Report on Form 10-K.
Consumer real estate loans that have been discharged in Chapter 7 bankruptcy with no change in repayment terms and not reaffirmed by the borrower of $951 million were included in TDRs at September 30, 2018, of which $220 million were classified as nonperforming and $362 million were loans fully-insured by the FHA. For more information on loans discharged in Chapter 7 bankruptcy, see Nonperforming Loans and Leases in this Note.
At September 30, 2018 and December 31, 2017, remaining commitments to lend additional funds to debtors whose terms have been modified in a consumer real estate TDR were not significant. Consumer real estate foreclosed properties totaled $265 million and $236 million at September 30, 2018 and December 31, 2017. The carrying value of consumer real estate loans, including fully-insured and PCI loans, for which formal foreclosure proceedings were in process at September 30, 2018 was $2.7 billion. During the three and nine months ended September 30, 2018, the Corporation reclassified $186 million and $505 million of consumer real estate loans to foreclosed properties or, for properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans), to other assets. This compared to reclassifications of $198 million and $624 million for the same periods in 2017. The reclassifications represent non-cash investing activities and, accordingly, are not reflected in the Consolidated Statement of Cash Flows.
The table below provides the unpaid principal balance, carrying value and related allowance at September 30, 2018 and December 31, 2017, and the average carrying value and interest income recognized for the three and nine months ended September 30, 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) |
|
|
|
|
September 30, 2018 |
|
December 31, 2017 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
|
|
$ |
6,016 |
|
|
$ |
4,783 |
|
|
$ |
— |
|
|
$ |
8,856 |
|
|
$ |
6,870 |
|
|
$ |
— |
|
Home equity |
|
|
|
|
3,345 |
|
|
1,828 |
|
|
— |
|
|
3,622 |
|
|
1,956 |
|
|
— |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
|
|
$ |
2,271 |
|
|
$ |
2,215 |
|
|
$ |
134 |
|
|
$ |
2,908 |
|
|
$ |
2,828 |
|
|
$ |
174 |
|
Home equity |
|
|
|
|
910 |
|
|
849 |
|
|
165 |
|
|
972 |
|
|
900 |
|
|
174 |
|
Total (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
|
|
$ |
8,287 |
|
|
$ |
6,998 |
|
|
$ |
134 |
|
|
$ |
11,764 |
|
|
$ |
9,698 |
|
|
$ |
174 |
|
Home equity |
|
|
|
|
4,255 |
|
|
2,677 |
|
|
165 |
|
|
4,594 |
|
|
2,856 |
|
|
174 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Carrying Value |
|
Interest Income Recognized (2)
|
|
Average Carrying Value |
|
Interest Income Recognized (2)
|
|
Average Carrying Value |
|
Interest Income Recognized (2)
|
|
Average Carrying Value |
|
Interest Income Recognized (2)
|
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
5,056 |
|
|
$ |
52 |
|
|
$ |
7,498 |
|
|
$ |
77 |
|
|
$ |
5,685 |
|
|
$ |
167 |
|
|
$ |
7,964 |
|
|
$ |
237 |
|
Home equity |
1,908 |
|
|
27 |
|
|
2,000 |
|
|
27 |
|
|
1,937 |
|
|
79 |
|
|
2,001 |
|
|
82 |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
2,330 |
|
|
$ |
22 |
|
|
$ |
3,254 |
|
|
$ |
29 |
|
|
$ |
2,508 |
|
|
$ |
71 |
|
|
$ |
3,565 |
|
|
$ |
97 |
|
Home equity |
864 |
|
|
7 |
|
|
873 |
|
|
6 |
|
|
879 |
|
|
19 |
|
|
850 |
|
|
18 |
|
Total (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
7,386 |
|
|
$ |
74 |
|
|
$ |
10,752 |
|
|
$ |
106 |
|
|
$ |
8,193 |
|
|
$ |
238 |
|
|
$ |
11,529 |
|
|
$ |
334 |
|
Home equity |
2,772 |
|
|
34 |
|
|
2,873 |
|
|
33 |
|
|
2,816 |
|
|
98 |
|
|
2,851 |
|
|
100 |
|
|
|
(1) |
During the nine months ended September 30, 2018, previously impaired consumer real estate loans with a carrying value of $1.6 billion were sold.
|
|
|
(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. |
The table below presents the September 30, 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 and nine months ended September 30, 2018 and 2017. 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 and Nine Months Ended September 30, 2018 and 2017 |
|
|
|
Unpaid Principal Balance |
|
Carrying
Value
|
|
Pre-Modification Interest Rate |
|
Post-Modification Interest Rate (1)
|
|
Unpaid Principal Balance |
|
Carrying Value |
|
Pre-Modification Interest Rate |
|
Post-Modification Interest Rate (1)
|
(Dollars in millions) |
Three Months Ended September 30, 2018 |
|
Nine Months Ended September 30, 2018 |
Residential mortgage |
$ |
226 |
|
|
$ |
195 |
|
|
4.27 |
% |
|
4.12 |
% |
|
$ |
747 |
|
|
$ |
635 |
|
|
4.22 |
% |
|
4.03 |
% |
Home equity |
120 |
|
|
90 |
|
|
4.67 |
|
|
4.60 |
|
|
482 |
|
|
356 |
|
|
4.42 |
|
|
3.78 |
|
Total (2)
|
$ |
346 |
|
|
$ |
285 |
|
|
4.41 |
|
|
4.29 |
|
|
$ |
1,229 |
|
|
$ |
991 |
|
|
4.30 |
|
|
3.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2017 |
|
Nine Months Ended September 30, 2017 |
Residential mortgage |
$ |
294 |
|
|
$ |
263 |
|
|
4.42 |
% |
|
4.33 |
% |
|
$ |
738 |
|
|
$ |
657 |
|
|
4.49 |
% |
|
4.25 |
% |
Home equity |
212 |
|
|
172 |
|
|
4.01 |
|
|
3.96 |
|
|
630 |
|
|
491 |
|
|
4.16 |
|
|
3.52 |
|
Total (2)
|
$ |
506 |
|
|
$ |
435 |
|
|
4.25 |
|
|
4.17 |
|
|
$ |
1,368 |
|
|
$ |
1,148 |
|
|
4.33 |
|
|
3.90 |
|
|
|
(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, which include amounts recorded on loans modified during the period that are no longer held by the Corporation at September 30, 2018 and 2017 due to sales and other dispositions, were $9 million and $33 million for the three and nine months ended September 30, 2018 compared to $17 million and $37 million for the same periods in 2017.
|
The table below presents the September 30, 2018 and 2017 carrying value for consumer real estate loans that were modified in a TDR during the three and nine months ended September 30, 2018 and 2017, by type of modification.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate – Modification Programs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TDRs Entered into During the |
|
Three Months Ended September 30 |
|
Nine Months Ended September 30 |
(Dollars in millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Modifications under government programs |
|
|
|
|
|
|
|
Contractual interest rate reduction |
$ |
5 |
|
|
$ |
10 |
|
|
$ |
19 |
|
|
$ |
56 |
|
Principal and/or interest forbearance |
— |
|
|
1 |
|
|
— |
|
|
4 |
|
Other modifications (1)
|
7 |
|
|
7 |
|
|
29 |
|
|
22 |
|
Total modifications under government programs |
12 |
|
|
18 |
|
|
48 |
|
|
82 |
|
Modifications under proprietary programs |
|
|
|
|
|
|
|
Contractual interest rate reduction |
7 |
|
|
15 |
|
|
159 |
|
|
178 |
|
Capitalization of past due amounts |
10 |
|
|
12 |
|
|
67 |
|
|
47 |
|
Principal and/or interest forbearance |
2 |
|
|
2 |
|
|
25 |
|
|
28 |
|
Other modifications (1)
|
14 |
|
|
1 |
|
|
195 |
|
|
45 |
|
Total modifications under proprietary programs |
33 |
|
|
30 |
|
|
446 |
|
|
298 |
|
Trial modifications |
201 |
|
|
329 |
|
|
376 |
|
|
605 |
|
Loans discharged in Chapter 7 bankruptcy (2)
|
39 |
|
|
58 |
|
|
121 |
|
|
163 |
|
Total modifications |
$ |
285 |
|
|
$ |
435 |
|
|
$ |
991 |
|
|
$ |
1,148 |
|
|
|
(1) |
Includes other modifications such as term or payment extensions and repayment plans. During the nine months ended September 30, 2018, this included $197 million of modifications that met the definition of a TDR related to the 2017 hurricanes. These modifications had been written down to their net realizable value less costs to sell or were fully insured as of September 30, 2018.
|
|