Outstanding Loans and Leases (Tables)
|
12 Months Ended |
Dec. 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 December 31, 2018 and 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) |
December 31, 2018 |
Consumer real estate |
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|
Core portfolio |
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|
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|
|
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|
|
|
|
|
|
Residential mortgage |
$ |
1,188 |
|
|
$ |
249 |
|
|
$ |
793 |
|
|
$ |
2,230 |
|
|
$ |
191,465 |
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|
|
|
|
|
$ |
193,695 |
|
Home equity |
200 |
|
|
85 |
|
|
387 |
|
|
672 |
|
|
39,338 |
|
|
|
|
|
|
40,010 |
|
Non-core portfolio |
|
|
|
|
|
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Residential mortgage |
624 |
|
|
268 |
|
|
2,012 |
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|
2,904 |
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|
8,158 |
|
|
$ |
3,800 |
|
|
|
|
14,862 |
|
Home equity |
119 |
|
|
60 |
|
|
287 |
|
|
466 |
|
|
6,965 |
|
|
845 |
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|
8,276 |
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Credit card and other consumer |
|
|
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U.S. credit card |
577 |
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|
418 |
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|
994 |
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|
1,989 |
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|
96,349 |
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|
|
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|
98,338 |
|
Direct/Indirect consumer (5)
|
317 |
|
|
90 |
|
|
40 |
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|
447 |
|
|
90,719 |
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|
91,166 |
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Other consumer (6)
|
— |
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|
— |
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— |
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— |
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|
202 |
|
|
|
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|
202 |
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Total consumer |
3,025 |
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|
1,170 |
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|
4,513 |
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|
8,708 |
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|
433,196 |
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|
4,645 |
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|
446,549 |
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Consumer loans accounted for under the fair value option (7)
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$ |
682 |
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|
682 |
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Total consumer loans and leases |
3,025 |
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|
1,170 |
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|
4,513 |
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|
8,708 |
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|
433,196 |
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|
4,645 |
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|
682 |
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|
447,231 |
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Commercial |
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U.S. commercial |
594 |
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|
232 |
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|
573 |
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|
1,399 |
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|
297,878 |
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|
|
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|
299,277 |
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Non-U.S. commercial |
1 |
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|
49 |
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— |
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|
50 |
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|
98,726 |
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|
98,776 |
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Commercial real estate (8)
|
29 |
|
|
16 |
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|
14 |
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|
59 |
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|
60,786 |
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|
60,845 |
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Commercial lease financing |
124 |
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|
114 |
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|
37 |
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|
275 |
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|
22,259 |
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22,534 |
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U.S. small business commercial |
83 |
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|
54 |
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|
96 |
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|
233 |
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|
14,332 |
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|
14,565 |
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Total commercial |
831 |
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|
465 |
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|
720 |
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|
2,016 |
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|
493,981 |
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|
495,997 |
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Commercial loans accounted for under the fair value option (7)
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3,667 |
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|
3,667 |
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Total commercial loans and leases |
831 |
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|
465 |
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|
720 |
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|
2,016 |
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|
493,981 |
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|
3,667 |
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|
499,664 |
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Total loans and leases (9)
|
$ |
3,856 |
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$ |
1,635 |
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$ |
5,233 |
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|
$ |
10,724 |
|
|
$ |
927,177 |
|
|
$ |
4,645 |
|
|
$ |
4,349 |
|
|
$ |
946,895 |
|
Percentage of outstandings |
0.41 |
% |
|
0.17 |
% |
|
0.55 |
% |
|
1.13 |
% |
|
97.92 |
% |
|
0.49 |
% |
|
0.46 |
% |
|
100.00 |
% |
|
|
(1) |
Consumer real estate loans 30-59 days past due includes fully-insured loans of $637 million and nonperforming loans of $217 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $269 million and nonperforming loans of $146 million.
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(2) |
Consumer real estate includes fully-insured loans of $1.9 billion.
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(3) |
Consumer real estate includes $1.8 billion and direct/indirect consumer includes $53 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 $50.1 billion, unsecured consumer lending loans of $383 million, U.S. securities-based lending loans of $37.0 billion, non-U.S. consumer loans of $2.9 billion and other consumer loans of $746 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 $336 million and home equity loans of $346 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.5 billion and non-U.S. commercial loans of $1.1 billion. For additional information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option.
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(8) |
Total outstandings includes U.S. commercial real estate loans of $56.6 billion and non-U.S. commercial real estate loans of $4.2 billion.
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(9) |
Total outstandings includes loans and leases pledged as collateral of $36.7 billion. The Corporation also pledged $166.1 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 |
|
|
$ |
321 |
|
|
$ |
1,040 |
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$ |
2,603 |
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$ |
174,015 |
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|
|
|
|
|
|
$ |
176,618 |
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Home equity |
215 |
|
|
108 |
|
|
473 |
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|
796 |
|
|
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 |
|
|
917 |
|
|
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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U.S. credit card |
542 |
|
|
405 |
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|
900 |
|
|
1,847 |
|
|
94,438 |
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|
|
|
|
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|
96,285 |
|
Direct/Indirect consumer (5)
|
330 |
|
|
104 |
|
|
44 |
|
|
478 |
|
|
95,864 |
|
|
|
|
|
|
|
96,342 |
|
Other consumer (6)
|
— |
|
|
— |
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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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|
|
|
454,348 |
|
Consumer loans accounted for under the fair value option (7)
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|
|
|
|
|
$ |
928 |
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|
928 |
|
Total consumer loans and leases |
3,581 |
|
|
1,527 |
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|
6,564 |
|
|
11,672 |
|
|
431,959 |
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|
10,717 |
|
|
928 |
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|
455,276 |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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U.S. commercial |
547 |
|
|
244 |
|
|
425 |
|
|
1,216 |
|
|
283,620 |
|
|
|
|
|
|
|
284,836 |
|
Non-U.S. commercial |
52 |
|
|
1 |
|
|
3 |
|
|
56 |
|
|
97,736 |
|
|
|
|
|
|
|
97,792 |
|
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 |
|
|
481,473 |
|
Total loans and leases (9)
|
$ |
4,433 |
|
|
$ |
1,895 |
|
|
$ |
7,135 |
|
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$ |
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 |
% |
|
|
(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 additional information, see Note 20 – Fair Value Measurements and Note 21 – 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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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 December 31, 2018 and 2017. Nonperforming 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.
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Credit Quality |
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Nonperforming Loans
and Leases
|
|
Accruing Past Due
90 Days or More
|
|
December 31 |
(Dollars in millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Consumer real estate |
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|
|
|
|
|
|
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Core portfolio |
|
|
|
|
|
|
|
Residential mortgage (1)
|
$ |
1,010 |
|
|
$ |
1,087 |
|
|
$ |
274 |
|
|
$ |
417 |
|
Home equity |
955 |
|
|
1,079 |
|
|
— |
|
|
— |
|
Non-core portfolio |
|
|
|
|
|
|
|
|
|
|
Residential mortgage (1)
|
883 |
|
|
1,389 |
|
|
1,610 |
|
|
2,813 |
|
Home equity |
938 |
|
|
1,565 |
|
|
— |
|
|
— |
|
Credit card and other consumer |
|
|
|
|
|
|
|
|
|
U.S. credit card |
n/a |
|
|
n/a |
|
|
994 |
|
|
900 |
|
Direct/Indirect consumer |
56 |
|
|
46 |
|
|
38 |
|
|
40 |
|
Total consumer |
3,842 |
|
|
5,166 |
|
|
2,916 |
|
|
4,170 |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
U.S. commercial |
794 |
|
|
814 |
|
|
197 |
|
|
144 |
|
Non-U.S. commercial |
80 |
|
|
299 |
|
|
— |
|
|
3 |
|
Commercial real estate |
156 |
|
|
112 |
|
|
4 |
|
|
4 |
|
Commercial lease financing |
18 |
|
|
24 |
|
|
29 |
|
|
19 |
|
U.S. small business commercial |
54 |
|
|
55 |
|
|
84 |
|
|
75 |
|
Total commercial |
1,102 |
|
|
1,304 |
|
|
314 |
|
|
245 |
|
Total loans and leases |
$ |
4,944 |
|
|
$ |
6,470 |
|
|
$ |
3,230 |
|
|
$ |
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 December 31, 2018 and 2017, residential mortgage includes $1.4 billion and $2.2 billion of loans on which interest has been curtailed by the FHA and therefore are no longer accruing interest, although principal is still insured, and $498 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 December 31, 2018 and 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
|
|
Core Home Equity (2)
|
|
Non-core Home
Equity (2)
|
|
Home
Equity PCI
|
(Dollars in millions) |
December 31, 2018 |
Refreshed LTV (3)
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
Less than or equal to 90 percent |
$ |
173,911 |
|
|
$ |
6,861 |
|
|
$ |
3,411 |
|
|
$ |
39,246 |
|
|
$ |
5,870 |
|
|
$ |
608 |
|
Greater than 90 percent but less than or equal to 100 percent |
2,349 |
|
|
340 |
|
|
193 |
|
|
354 |
|
|
603 |
|
|
112 |
|
Greater than 100 percent |
817 |
|
|
349 |
|
|
196 |
|
|
410 |
|
|
958 |
|
|
125 |
|
Fully-insured loans (4)
|
16,618 |
|
|
3,512 |
|
|
|
|
|
|
|
|
|
Total consumer real estate |
$ |
193,695 |
|
|
$ |
11,062 |
|
|
$ |
3,800 |
|
|
$ |
40,010 |
|
|
$ |
7,431 |
|
|
$ |
845 |
|
Refreshed FICO score |
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
$ |
2,125 |
|
|
$ |
1,264 |
|
|
$ |
710 |
|
|
$ |
1,064 |
|
|
$ |
1,325 |
|
|
$ |
178 |
|
Greater than or equal to 620 and less than 680 |
4,538 |
|
|
1,068 |
|
|
651 |
|
|
2,008 |
|
|
1,575 |
|
|
145 |
|
Greater than or equal to 680 and less than 740 |
23,841 |
|
|
1,841 |
|
|
1,201 |
|
|
7,008 |
|
|
1,968 |
|
|
220 |
|
Greater than or equal to 740 |
146,573 |
|
|
3,377 |
|
|
1,238 |
|
|
29,930 |
|
|
2,563 |
|
|
302 |
|
Fully-insured loans (4)
|
16,618 |
|
|
3,512 |
|
|
|
|
|
|
|
|
|
Total consumer real estate |
$ |
193,695 |
|
|
$ |
11,062 |
|
|
$ |
3,800 |
|
|
$ |
40,010 |
|
|
$ |
7,431 |
|
|
$ |
845 |
|
|
|
(1) |
Excludes $682 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, 2018 |
Refreshed FICO score |
|
|
|
|
|
|
|
Less than 620 |
$ |
5,016 |
|
|
$ |
1,719 |
|
|
|
Greater than or equal to 620 and less than 680 |
12,415 |
|
|
3,124 |
|
|
|
Greater than or equal to 680 and less than 740 |
35,781 |
|
|
8,921 |
|
|
|
Greater than or equal to 740 |
45,126 |
|
|
36,709 |
|
|
|
Other internal credit metrics (1, 2)
|
|
|
40,693 |
|
|
$ |
202 |
|
Total credit card and other consumer |
$ |
98,338 |
|
|
$ |
91,166 |
|
|
$ |
202 |
|
|
|
(1) |
Other internal credit metrics may include delinquency status, geography or other factors. |
|
|
(2) |
Direct/indirect consumer includes $39.9 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, 2018 |
Risk ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass rated |
$ |
291,918 |
|
|
$ |
97,916 |
|
|
$ |
59,910 |
|
|
$ |
22,168 |
|
|
$ |
389 |
|
Reservable criticized |
7,359 |
|
|
860 |
|
|
935 |
|
|
366 |
|
|
29 |
|
Refreshed FICO score (3)
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
|
|
|
|
|
|
|
|
|
264 |
|
Greater than or equal to 620 and less than 680 |
|
|
|
|
|
|
|
|
684 |
|
Greater than or equal to 680 and less than 740 |
|
|
|
|
|
|
|
|
2,072 |
|
Greater than or equal to 740 |
|
|
|
|
|
|
|
|
4,254 |
|
Other internal credit metrics (3, 4)
|
|
|
|
|
|
|
|
|
6,873 |
|
Total commercial |
$ |
299,277 |
|
|
$ |
98,776 |
|
|
$ |
60,845 |
|
|
$ |
22,534 |
|
|
$ |
14,565 |
|
|
|
(1) |
Excludes $3.7 billion of loans accounted for under the fair value option.
|
|
|
(2) |
U.S. small business commercial includes $731 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, 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.
|
Financing Receivable, Modifications [Line Items] |
|
Accretable Yield Activity |
The table below shows activity for the accretable yield on PCI loans, which includes the Countrywide Financial Corporation (Countrywide) portfolio and loans repurchased in connection with the 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 during 2018 and 2017 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) |
|
Accretable yield, January 1, 2017 |
$ |
3,805 |
|
Accretion |
(601 |
) |
Disposals/transfers |
(634 |
) |
Reclassifications from nonaccretable difference |
219 |
|
Accretable yield, December 31, 2017 |
2,789 |
|
Accretion |
(457 |
) |
Disposals/transfers |
(1,456 |
) |
Reclassifications from nonaccretable difference |
368 |
|
Accretable yield, December 31, 2018 |
$ |
1,244 |
|
|
Consumer real estate |
|
Financing Receivable, Impaired [Line Items] |
|
Impaired Financing Receivables |
The following table provides the unpaid principal balance, carrying value and related allowance at December 31, 2018 and 2017, and the average carrying value and interest income recognized in 2018, 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Principal
Balance
|
|
Carrying
Value
|
|
Related
Allowance
|
|
Unpaid Principal
Balance
|
|
Carrying
Value
|
|
Related
Allowance
|
(Dollars in millions) |
December 31, 2018 |
|
December 31, 2017 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
5,396 |
|
|
$ |
4,268 |
|
|
$ |
— |
|
|
$ |
8,856 |
|
|
$ |
6,870 |
|
|
$ |
— |
|
Home equity |
2,948 |
|
|
1,599 |
|
|
— |
|
|
3,622 |
|
|
1,956 |
|
|
— |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
1,977 |
|
|
$ |
1,929 |
|
|
$ |
114 |
|
|
$ |
2,908 |
|
|
$ |
2,828 |
|
|
$ |
174 |
|
Home equity |
812 |
|
|
760 |
|
|
144 |
|
|
972 |
|
|
900 |
|
|
174 |
|
Total (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
7,373 |
|
|
$ |
6,197 |
|
|
$ |
114 |
|
|
$ |
11,764 |
|
|
$ |
9,698 |
|
|
$ |
174 |
|
Home equity |
3,760 |
|
|
2,359 |
|
|
144 |
|
|
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)
|
|
2018 |
|
2017 |
|
2016 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
5,424 |
|
|
$ |
207 |
|
|
$ |
7,737 |
|
|
$ |
311 |
|
|
$ |
10,178 |
|
|
$ |
360 |
|
Home equity |
1,894 |
|
|
105 |
|
|
1,997 |
|
|
109 |
|
|
1,906 |
|
|
90 |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
2,409 |
|
|
$ |
91 |
|
|
$ |
3,414 |
|
|
$ |
123 |
|
|
$ |
5,067 |
|
|
$ |
167 |
|
Home equity |
861 |
|
|
25 |
|
|
858 |
|
|
24 |
|
|
852 |
|
|
24 |
|
Total (1)
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
7,833 |
|
|
$ |
298 |
|
|
$ |
11,151 |
|
|
$ |
434 |
|
|
$ |
15,245 |
|
|
$ |
527 |
|
Home equity |
2,755 |
|
|
130 |
|
|
2,855 |
|
|
133 |
|
|
2,758 |
|
|
114 |
|
|
|
(1) |
During 2018, previously impaired consumer real estate loans with a carrying value of $2.3 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.
|
Financing Receivable, Modifications [Line Items] |
|
Troubled Debt Restructurings on Financing Receivables |
The table below presents the December 31, 2018, 2017 and 2016 unpaid principal balance, carrying value, and average pre- and post-modification interest rates on consumer real estate loans that were modified in TDRs during 2018, 2017 and 2016. 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 2018, 2017 and 2016 |
|
|
|
Unpaid Principal Balance |
|
Carrying Value |
|
Pre-Modification Interest Rate |
|
Post-Modification Interest Rate (1)
|
(Dollars in millions) |
December 31, 2018 |
Residential mortgage |
$ |
774 |
|
|
$ |
641 |
|
|
4.33 |
% |
|
4.21 |
% |
Home equity |
489 |
|
|
358 |
|
|
4.46 |
|
|
3.74 |
|
Total |
$ |
1,263 |
|
|
$ |
999 |
|
|
4.38 |
|
|
4.03 |
|
|
|
|
|
|
|
|
|
|
December 31, 2017 |
Residential mortgage |
$ |
824 |
|
|
$ |
712 |
|
|
4.43 |
% |
|
4.16 |
% |
Home equity |
764 |
|
|
590 |
|
|
4.22 |
|
|
3.49 |
|
Total |
$ |
1,588 |
|
|
$ |
1,302 |
|
|
4.33 |
|
|
3.83 |
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
Residential mortgage |
$ |
1,130 |
|
|
$ |
1,017 |
|
|
4.73 |
% |
|
4.16 |
% |
Home equity |
849 |
|
|
649 |
|
|
3.95 |
|
|
2.72 |
|
Total |
$ |
1,979 |
|
|
$ |
1,666 |
|
|
4.40 |
|
|
3.54 |
|
|
|
(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. |
The table below presents the December 31, 2018, 2017 and 2016 carrying value for consumer real estate loans that were modified in a TDR during 2018, 2017 and 2016, by type of modification.
|
|
|
|
|
|
|
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|
|
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|
|
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|
|
|
|
|
Consumer Real Estate – Modification Programs |
|
|
|
|
|
|
|
|
|
|
|
|
TDRs Entered into During |
(Dollars in millions) |
2018 |
|
2017 |
|
2016 |
Modifications under government programs |
|
|
|
|
|
Contractual interest rate reduction |
$ |
19 |
|
|
$ |
59 |
|
|
$ |
151 |
|
Principal and/or interest forbearance |
— |
|
|
4 |
|
|
13 |
|
Other modifications (1)
|
42 |
|
|
22 |
|
|
23 |
|
Total modifications under government programs |
61 |
|
|
85 |
|
|
187 |
|
Modifications under proprietary programs |
|
|
|
|
|
Contractual interest rate reduction |
209 |
|
|
281 |
|
|
235 |
|
Capitalization of past due amounts |
96 |
|
|
63 |
|
|
40 |
|
Principal and/or interest forbearance |
51 |
|
|
38 |
|
|
72 |
|
Other modifications (1)
|
167 |
|
|
55 |
|
|
75 |
|
Total modifications under proprietary programs |
523 |
|
|
437 |
|
|
422 |
|
Trial modifications |
285 |
|
|
569 |
|
|
831 |
|
Loans discharged in Chapter 7 bankruptcy (2)
|
130 |
|
|
211 |
|
|
226 |
|
Total modifications |
$ |
999 |
|
|
$ |
1,302 |
|
|
$ |
1,666 |
|
|
|
(1) |
Includes other modifications such as term or payment extensions and repayment plans. During 2018, this included $198 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 December 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 2018, 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.
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|
|
|
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|
|
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|
|
|
|
|
|
Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months |
|
|
|
|
|
|
(Dollars in millions) |
2018 |
|
2017 |
|
2016 |
Modifications under government programs |
$ |
39 |
|
|
$ |
81 |
|
|
$ |
262 |
|
Modifications under proprietary programs |
158 |
|
|
138 |
|
|
196 |
|
Loans discharged in Chapter 7 bankruptcy (1)
|
64 |
|
|
116 |
|
|
158 |
|
Trial modifications (2)
|
107 |
|
|
391 |
|
|
824 |
|
Total modifications |
$ |
368 |
|
|
$ |
726 |
|
|
$ |
1,440 |
|
|
|
(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 December 31, 2018 and 2017, and the average carrying value for 2018, 2017 and 2016 on TDRs within the Credit Card and Other Consumer portfolio segment.
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|
|
|
Impaired Loans – Credit Card and Other Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Principal
Balance
|
|
Carrying
Value (1)
|
|
Related
Allowance
|
|
Unpaid Principal
Balance
|
|
Carrying
Value (1)
|
|
Related
Allowance
|
|
Average Carrying Value (2)
|
(Dollars in millions) |
December 31, 2018 |
|
December 31, 2017 |
|
2018 |
|
2017 |
|
2016 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct/Indirect consumer |
$ |
72 |
|
|
$ |
33 |
|
|
$ |
— |
|
|
$ |
58 |
|
|
$ |
28 |
|
|
$ |
— |
|
|
$ |
30 |
|
|
$ |
21 |
|
|
$ |
20 |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. credit card |
$ |
522 |
|
|
$ |
533 |
|
|
$ |
154 |
|
|
$ |
454 |
|
|
$ |
461 |
|
|
$ |
125 |
|
|
$ |
491 |
|
|
$ |
464 |
|
|
$ |
556 |
|
Non-U.S. credit card (3)
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
47 |
|
|
111 |
|
Direct/Indirect consumer |
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
1 |
|
|
— |
|
|
1 |
|
|
2 |
|
|
10 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. credit card |
$ |
522 |
|
|
$ |
533 |
|
|
$ |
154 |
|
|
$ |
454 |
|
|
$ |
461 |
|
|
$ |
125 |
|
|
$ |
491 |
|
|
$ |
464 |
|
|
$ |
556 |
|
Non-U.S. credit card (3)
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
n/a |
|
|
47 |
|
|
111 |
|
Direct/Indirect consumer |
72 |
|
|
33 |
|
|
— |
|
|
59 |
|
|
29 |
|
|
— |
|
|
31 |
|
|
23 |
|
|
30 |
|
|
|
(1) |
Includes accrued interest and fees. |
|
|
(2) |
The related interest income recognized, which included 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 was considered collectible, was not significant in 2018, 2017 and 2016.
|
|
|
(3) |
In 2017, the Corporation sold its non-U.S. consumer credit card business. |
n/a = not applicable
|
Financing Receivable, Modifications [Line Items] |
|
Troubled Debt Restructurings on Financing Receivables |
The table below provides information on the Corporation’s primary modification programs for the Credit Card and Other Consumer TDR portfolio at December 31, 2018 and 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Card and Other Consumer – TDRs by Program Type at December 31 |
|
|
|
|
|
|
|
U.S. Credit Card |
|
Direct/Indirect Consumer |
|
Total TDRs by Program Type |
(Dollars in millions) |
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Internal programs |
$ |
259 |
|
|
$ |
203 |
|
|
$ |
— |
|
|
$ |
1 |
|
|
$ |
259 |
|
|
$ |
204 |
|
External programs |
273 |
|
|
257 |
|
|
— |
|
|
— |
|
|
273 |
|
|
257 |
|
Other |
1 |
|
|
1 |
|
|
33 |
|
|
28 |
|
|
34 |
|
|
29 |
|
Total |
$ |
533 |
|
|
$ |
461 |
|
|
$ |
33 |
|
|
$ |
29 |
|
|
$ |
566 |
|
|
$ |
490 |
|
Percent of balances current or less than 30 days past due |
85 |
% |
|
87 |
% |
|
81 |
% |
|
88 |
% |
|
85 |
% |
|
87 |
% |
The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the December 31, 2018, 2017 and 2016 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during 2018, 2017 and 2016.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Card and Other Consumer – TDRs Entered into During 2018, 2017 and 2016 |
|
|
|
|
|
|
|
|
|
Unpaid Principal Balance |
|
Carrying Value (1)
|
|
| |