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 June 30, 2019 and December 31, 2018.
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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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Loans Accounted for Under the Fair Value Option |
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Total
Outstandings
|
(Dollars in millions) |
June 30, 2019 |
Consumer real estate |
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|
|
|
|
|
|
|
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|
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|
|
|
|
|
Core portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
1,134 |
|
|
$ |
226 |
|
|
$ |
698 |
|
|
$ |
2,058 |
|
|
$ |
205,199 |
|
|
|
|
$ |
207,257 |
|
Home equity |
154 |
|
|
74 |
|
|
340 |
|
|
568 |
|
|
37,009 |
|
|
|
|
37,577 |
|
Non-core portfolio |
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|
|
|
|
|
|
|
|
|
|
|
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Residential mortgage |
573 |
|
|
246 |
|
|
1,628 |
|
|
2,447 |
|
|
10,225 |
|
|
|
|
12,672 |
|
Home equity |
85 |
|
|
43 |
|
|
203 |
|
|
331 |
|
|
6,226 |
|
|
|
|
6,557 |
|
Credit card and other consumer |
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|
|
|
|
|
|
|
|
|
|
|
U.S. credit card |
535 |
|
|
362 |
|
|
941 |
|
|
1,838 |
|
|
92,151 |
|
|
|
|
93,989 |
|
Direct/Indirect consumer (4)
|
278 |
|
|
109 |
|
|
30 |
|
|
417 |
|
|
90,433 |
|
|
|
|
90,850 |
|
Other consumer |
— |
|
|
— |
|
|
— |
|
|
— |
|
|
174 |
|
|
|
|
174 |
|
Total consumer |
2,759 |
|
|
1,060 |
|
|
3,840 |
|
|
7,659 |
|
|
441,417 |
|
|
|
|
449,076 |
|
Consumer loans accounted for under the fair value option (5)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
658 |
|
|
658 |
|
Total consumer loans and leases |
2,759 |
|
|
1,060 |
|
|
3,840 |
|
|
7,659 |
|
|
441,417 |
|
|
658 |
|
|
449,734 |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
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U.S. commercial |
444 |
|
|
278 |
|
|
406 |
|
|
1,128 |
|
|
304,567 |
|
|
|
|
305,695 |
|
Non-U.S. commercial |
24 |
|
|
11 |
|
|
— |
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|
35 |
|
|
104,138 |
|
|
|
|
104,173 |
|
Commercial real estate (6)
|
15 |
|
|
22 |
|
|
15 |
|
|
52 |
|
|
61,607 |
|
|
|
|
61,659 |
|
Commercial lease financing |
29 |
|
|
39 |
|
|
37 |
|
|
105 |
|
|
20,279 |
|
|
|
|
20,384 |
|
U.S. small business commercial |
82 |
|
|
53 |
|
|
97 |
|
|
232 |
|
|
14,718 |
|
|
|
|
14,950 |
|
Total commercial |
594 |
|
|
403 |
|
|
555 |
|
|
1,552 |
|
|
505,309 |
|
|
|
|
506,861 |
|
Commercial loans accounted for under the fair value option (5)
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|
|
|
|
|
|
7,205 |
|
|
7,205 |
|
Total commercial loans and leases |
594 |
|
|
403 |
|
|
555 |
|
|
1,552 |
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|
505,309 |
|
|
7,205 |
|
|
514,066 |
|
Total loans and leases (7)
|
$ |
3,353 |
|
|
$ |
1,463 |
|
|
$ |
4,395 |
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|
$ |
9,211 |
|
|
$ |
946,726 |
|
|
$ |
7,863 |
|
|
$ |
963,800 |
|
Percentage of outstandings |
0.35 |
% |
|
0.15 |
% |
|
0.46 |
% |
|
0.96 |
% |
|
98.23 |
% |
|
0.81 |
% |
|
100.00 |
% |
|
|
(1) |
Consumer real estate loans 30-59 days past due includes fully-insured loans of $578 million and nonperforming loans of $167 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $214 million and nonperforming loans of $121 million.
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(2) |
Consumer real estate includes fully-insured loans of $1.4 billion.
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(3) |
Consumer real estate includes $1.3 billion and direct/indirect consumer includes $50 million of nonperforming loans.
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(4) |
Total outstandings includes auto and specialty lending loans and leases of $50.3 billion, unsecured consumer lending loans of $344 million, U.S. securities-based lending loans of $36.5 billion, non-U.S. consumer loans of $2.9 billion and other consumer loans of $811 million.
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(5) |
Consumer loans accounted for under the fair value option includes residential mortgage loans of $300 million and home equity loans of $358 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $3.9 billion and non-U.S. commercial loans of $3.3 billion. For additional information, see Note 15 – Fair Value Measurements and Note 16 – Fair Value Option.
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(6) |
Total outstandings includes U.S. commercial real estate loans of $57.0 billion and non-U.S. commercial real estate loans of $4.6 billion.
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(7) |
Total outstandings includes loans and leases pledged as collateral of $32.3 billion. The Corporation also pledged $169.5 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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Loans
Accounted
for Under
the Fair
Value Option
|
|
Total Outstandings |
(Dollars in millions) |
December 31, 2018 |
Consumer real estate |
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|
|
|
|
|
|
|
|
|
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|
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Core portfolio |
|
|
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|
|
|
|
|
|
|
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Residential mortgage |
$ |
1,188 |
|
|
$ |
249 |
|
|
$ |
793 |
|
|
$ |
2,230 |
|
|
$ |
191,465 |
|
|
|
|
|
$ |
193,695 |
|
Home equity |
200 |
|
|
85 |
|
|
387 |
|
|
672 |
|
|
39,338 |
|
|
|
|
|
40,010 |
|
Non-core portfolio |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
757 |
|
|
309 |
|
|
2,201 |
|
|
3,267 |
|
|
11,595 |
|
|
|
|
|
14,862 |
|
Home equity |
139 |
|
|
69 |
|
|
339 |
|
|
547 |
|
|
7,729 |
|
|
|
|
|
8,276 |
|
Credit card and other consumer |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. credit card |
577 |
|
|
418 |
|
|
994 |
|
|
1,989 |
|
|
96,349 |
|
|
|
|
|
98,338 |
|
Direct/Indirect consumer (4)
|
317 |
|
|
90 |
|
|
40 |
|
|
447 |
|
|
90,719 |
|
|
|
|
|
91,166 |
|
Other consumer (5)
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
202 |
|
|
|
|
|
202 |
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Total consumer |
3,178 |
|
|
1,220 |
|
|
4,754 |
|
|
9,152 |
|
|
437,397 |
|
|
|
|
446,549 |
|
Consumer loans accounted for under the fair value option (6)
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|
|
|
|
|
|
|
|
|
|
$ |
682 |
|
|
682 |
|
Total consumer loans and leases |
3,178 |
|
|
1,220 |
|
|
4,754 |
|
|
9,152 |
|
|
437,397 |
|
|
682 |
|
|
447,231 |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. commercial |
594 |
|
|
232 |
|
|
573 |
|
|
1,399 |
|
|
297,878 |
|
|
|
|
|
299,277 |
|
Non-U.S. commercial |
1 |
|
|
49 |
|
|
— |
|
|
50 |
|
|
98,726 |
|
|
|
|
|
98,776 |
|
Commercial real estate (7)
|
29 |
|
|
16 |
|
|
14 |
|
|
59 |
|
|
60,786 |
|
|
|
|
|
60,845 |
|
Commercial lease financing |
124 |
|
|
114 |
|
|
37 |
|
|
275 |
|
|
22,259 |
|
|
|
|
|
22,534 |
|
U.S. small business commercial |
83 |
|
|
54 |
|
|
96 |
|
|
233 |
|
|
14,332 |
|
|
|
|
|
14,565 |
|
Total commercial |
831 |
|
|
465 |
|
|
720 |
|
|
2,016 |
|
|
493,981 |
|
|
|
|
|
495,997 |
|
Commercial loans accounted for under the fair value option (6)
|
|
|
|
|
|
|
|
|
|
|
3,667 |
|
|
3,667 |
|
Total commercial loans and leases |
831 |
|
|
465 |
|
|
720 |
|
|
2,016 |
|
|
493,981 |
|
|
3,667 |
|
|
499,664 |
|
Total loans and leases (8)
|
$ |
4,009 |
|
|
$ |
1,685 |
|
|
$ |
5,474 |
|
|
$ |
11,168 |
|
|
$ |
931,378 |
|
|
$ |
4,349 |
|
|
$ |
946,895 |
|
Percentage of outstandings |
0.42 |
% |
|
0.18 |
% |
|
0.58 |
% |
|
1.18 |
% |
|
98.36 |
% |
|
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) |
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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|
(5) |
Substantially all of other consumer is consumer overdrafts. |
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(6) |
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 15 – Fair Value Measurements and Note 16 – Fair Value Option.
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|
(7) |
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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(8) |
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 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 runoff portfolios.
The Corporation has entered into long-term credit protection agreements with FNMA and FHLMC on loans totaling $6.6 billion and $6.1 billion at June 30, 2019 and December 31, 2018, 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 six months ended June 30, 2019, the Corporation sold $891 million and $1.8 billion of consumer real estate loans compared to $1.8 billion and $2.6 billion for the same periods in 2018.
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 June 30, 2019 and December 31, 2018, $139 million and $221 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 loans have not been otherwise modified. The Corporation continues to have a lien on the underlying collateral. At June 30, 2019, nonperforming loans discharged in Chapter 7 bankruptcy with no change in repayment terms were $153 million of which $84 million were current on their contractual payments, while $55 million were 90 days or more past due. Of the contractually current nonperforming loans, 57 percent were discharged in Chapter 7 bankruptcy over 12 months ago, and 47 percent were discharged 24 months or more ago.
The table below presents the Corporation’s nonperforming loans and leases including nonperforming TDRs, and loans accruing past due 90 days or more at June 30, 2019 and December 31, 2018. 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 2018 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) |
June 30 2019 |
|
December 31 2018 |
|
June 30 2019 |
|
December 31 2018 |
Consumer real estate |
|
|
|
|
|
|
|
|
|
|
|
Core portfolio |
|
|
|
|
|
|
|
Residential mortgage (1)
|
$ |
989 |
|
|
$ |
1,010 |
|
|
$ |
196 |
|
|
$ |
274 |
|
Home equity |
727 |
|
|
955 |
|
|
— |
|
|
— |
|
Non-core portfolio |
|
|
|
|
|
|
|
|
|
|
Residential mortgage (1)
|
755 |
|
|
883 |
|
|
1,168 |
|
|
1,610 |
|
Home equity |
476 |
|
|
938 |
|
|
— |
|
|
— |
|
Credit card and other consumer |
|
|
|
|
|
|
|
|
|
U.S. credit card |
n/a |
|
|
n/a |
|
|
941 |
|
|
994 |
|
Direct/Indirect consumer |
80 |
|
|
56 |
|
|
28 |
|
|
38 |
|
Total consumer |
3,027 |
|
|
3,842 |
|
|
2,333 |
|
|
2,916 |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
U.S. commercial |
820 |
|
|
794 |
|
|
132 |
|
|
197 |
|
Non-U.S. commercial |
122 |
|
|
80 |
|
|
— |
|
|
— |
|
Commercial real estate |
112 |
|
|
156 |
|
|
6 |
|
|
4 |
|
Commercial lease financing |
55 |
|
|
18 |
|
|
15 |
|
|
29 |
|
U.S. small business commercial |
51 |
|
|
54 |
|
|
87 |
|
|
84 |
|
Total commercial |
1,160 |
|
|
1,102 |
|
|
240 |
|
|
314 |
|
Total loans and leases |
$ |
4,187 |
|
|
$ |
4,944 |
|
|
$ |
2,573 |
|
|
$ |
3,230 |
|
|
|
(1) |
Residential mortgage loans in the core and non-core portfolios accruing past due 90 days or more are fully-insured loans. At June 30, 2019 and December 31, 2018, residential mortgage includes $1.1 billion and $1.4 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 $345 million and $498 million 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 Note 1 – Summary of Significant Accounting Principles and Note 5 – Outstanding Loans and Leases to the
Consolidated Financial Statements of the Corporation’s 2018 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 June 30, 2019 and December 31, 2018.
|
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|
|
|
|
|
|
Consumer Real Estate – Credit Quality Indicators (1)
|
|
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|
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|
|
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|
|
|
|
|
|
Core Residential Mortgage |
|
Non-core Residential Mortgage |
|
Core
Home Equity
|
|
Non-core Home Equity |
|
Core Residential Mortgage |
|
Non-core Residential Mortgage |
|
Core
Home Equity
|
|
Non-core Home Equity |
(Dollars in millions) |
June 30, 2019 |
|
December 31, 2018 |
Refreshed LTV
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than or equal to 90 percent |
$ |
186,743 |
|
|
$ |
8,952 |
|
|
$ |
36,904 |
|
|
$ |
5,241 |
|
|
$ |
173,911 |
|
|
$ |
10,272 |
|
|
$ |
39,246 |
|
|
$ |
6,478 |
|
Greater than 90 percent but less than or equal to 100 percent |
3,069 |
|
|
435 |
|
|
313 |
|
|
526 |
|
|
2,349 |
|
|
533 |
|
|
354 |
|
|
715 |
|
Greater than 100 percent |
991 |
|
|
431 |
|
|
360 |
|
|
790 |
|
|
817 |
|
|
545 |
|
|
410 |
|
|
1,083 |
|
Fully-insured loans (2)
|
16,454 |
|
|
2,854 |
|
|
|
|
|
|
16,618 |
|
|
3,512 |
|
|
|
|
|
Total consumer real estate |
$ |
207,257 |
|
|
$ |
12,672 |
|
|
$ |
37,577 |
|
|
$ |
6,557 |
|
|
$ |
193,695 |
|
|
$ |
14,862 |
|
|
$ |
40,010 |
|
|
$ |
8,276 |
|
Refreshed FICO score |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
$ |
2,047 |
|
|
$ |
1,560 |
|
|
$ |
951 |
|
|
$ |
988 |
|
|
$ |
2,125 |
|
|
$ |
1,974 |
|
|
$ |
1,064 |
|
|
$ |
1,503 |
|
Greater than or equal to 620 and less than 680 |
4,614 |
|
|
1,395 |
|
|
1,741 |
|
|
1,189 |
|
|
4,538 |
|
|
1,719 |
|
|
2,008 |
|
|
1,720 |
|
Greater than or equal to 680 and less than 740 |
24,810 |
|
|
2,581 |
|
|
6,452 |
|
|
1,791 |
|
|
23,841 |
|
|
3,042 |
|
|
7,008 |
|
|
2,188 |
|
Greater than or equal to 740 |
159,332 |
|
|
4,282 |
|
|
28,433 |
|
|
2,589 |
|
|
146,573 |
|
|
4,615 |
|
|
29,930 |
|
|
2,865 |
|
Fully-insured loans (2)
|
16,454 |
|
|
2,854 |
|
|
|
|
|
|
16,618 |
|
|
3,512 |
|
|
|
|
|
Total consumer real estate |
$ |
207,257 |
|
|
$ |
12,672 |
|
|
$ |
37,577 |
|
|
$ |
6,557 |
|
|
$ |
193,695 |
|
|
$ |
14,862 |
|
|
$ |
40,010 |
|
|
$ |
8,276 |
|
|
|
(1) |
Excludes $658 million and $682 million of loans accounted for under the fair value option at June 30, 2019 and December 31, 2018.
|
|
|
(2) |
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 |
|
U.S. Credit Card |
|
Direct/Indirect Consumer |
|
Other Consumer |
(Dollars in millions) |
June 30, 2019 |
|
December 31, 2018 |
Refreshed FICO score |
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
$ |
4,758 |
|
|
$ |
1,494 |
|
|
|
|
$ |
5,016 |
|
|
$ |
1,719 |
|
|
|
Greater than or equal to 620 and less than 680 |
11,712 |
|
|
2,785 |
|
|
|
|
12,415 |
|
|
3,124 |
|
|
|
Greater than or equal to 680 and less than 740 |
34,073 |
|
|
8,523 |
|
|
|
|
35,781 |
|
|
8,921 |
|
|
|
Greater than or equal to 740 |
43,446 |
|
|
37,813 |
|
|
|
|
45,126 |
|
|
36,709 |
|
|
|
Other internal credit metrics (1, 2)
|
|
|
40,235 |
|
|
$ |
174 |
|
|
|
|
40,693 |
|
|
$ |
202 |
|
Total credit card and other consumer |
$ |
93,989 |
|
|
$ |
90,850 |
|
|
$ |
174 |
|
|
$ |
98,338 |
|
|
$ |
91,166 |
|
|
$ |
202 |
|
|
|
(1) |
Other internal credit metrics may include delinquency status, geography or other factors. |
|
|
(2) |
Direct/indirect consumer includes $39.4 billion and $39.9 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk at June 30, 2019 and December 31, 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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) |
June 30, 2019 |
Risk ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass rated |
$ |
297,656 |
|
|
$ |
103,054 |
|
|
$ |
60,816 |
|
|
$ |
20,011 |
|
|
$ |
240 |
|
Reservable criticized |
8,039 |
|
|
1,119 |
|
|
843 |
|
|
373 |
|
|
24 |
|
Refreshed FICO score |
|
|
|
|
|
|
|
|
|
|
Less than 620 |
|
|
|
|
|
|
|
|
|
279 |
|
Greater than or equal to 620 and less than 680 |
|
|
|
|
|
|
|
|
703 |
|
Greater than or equal to 680 and less than 740 |
|
|
|
|
|
|
|
|
2,167 |
|
Greater than or equal to 740 |
|
|
|
|
|
|
|
|
4,634 |
|
Other internal credit metrics (3)
|
|
|
|
|
|
|
|
|
6,903 |
|
Total commercial |
$ |
305,695 |
|
|
$ |
104,173 |
|
|
$ |
61,659 |
|
|
$ |
20,384 |
|
|
$ |
14,950 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
|
6,873 |
|
Total commercial |
$ |
299,277 |
|
|
$ |
98,776 |
|
|
$ |
60,845 |
|
|
$ |
22,534 |
|
|
$ |
14,565 |
|
|
|
(1) |
Excludes $7.2 billion and $3.7 billion of loans accounted for under the fair value option at June 30, 2019 and December 31, 2018.
|
|
|
(2) |
At June 30, 2019 and December 31, 2018, U.S. small business commercial includes $757 million and $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. Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
|
(3)
Other internal credit metrics may include delinquency status, application scores, geography or other factors. At both June 30, 2019 and December 31, 2018, 99 percent of the balances where internal credit metrics are used were current or less than 30 days past due.
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, see Note 1 – Summary of Significant Accounting Principles and Note 5 – Outstanding Loans and Leases to the Consolidated Financial Statements of the Corporation’s 2018 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. 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 5 – Outstanding Loans and Leases to the Consolidated Financial Statements of the Corporation’s 2018 Annual Report on Form 10-K.
Consumer real estate loans of $758 million that have been discharged in Chapter 7 bankruptcy with no change in repayment terms and not reaffirmed by the borrower were included in TDRs at June 30, 2019, of which $153 million were classified as nonperforming and $310 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 June 30, 2019 and December 31, 2018, 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 $205 million and $244 million at June 30, 2019 and December 31, 2018. The carrying value of consumer real estate loans, including fully-insured loans, for which formal foreclosure proceedings were in process at June 30, 2019 was $2.0 billion. During the three and six months ended June 30, 2019, the Corporation reclassified $135 million and $299 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. The reclassifications represent non-cash investing activities and, accordingly, are not reflected in the Consolidated Statement of Cash Flows.
The following table provides the unpaid principal balance, carrying value and related allowance at June 30, 2019 and December 31, 2018 and the average carrying value and interest
income recognized for the three and six months ended June 30, 2019 and 2018 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) |
|
|
|
|
June 30, 2019 |
|
December 31, 2018 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
|
|
$ |
4,917 |
|
|
$ |
3,884 |
|
|
$ |
— |
|
|
$ |
5,396 |
|
|
$ |
4,268 |
|
|
$ |
— |
|
Home equity |
|
|
|
|
2,111 |
|
|
1,146 |
|
|
— |
|
|
2,948 |
|
|
1,599 |
|
|
— |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
|
|
$ |
1,637 |
|
|
$ |
1,605 |
|
|
$ |
83 |
|
|
$ |
1,977 |
|
|
$ |
1,929 |
|
|
$ |
114 |
|
Home equity |
|
|
|
|
650 |
|
|
617 |
|
|
93 |
|
|
812 |
|
|
760 |
|
|
144 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
|
|
|
|
$ |
6,554 |
|
|
$ |
5,489 |
|
|
$ |
83 |
|
|
$ |
7,373 |
|
|
$ |
6,197 |
|
|
$ |
114 |
|
Home equity |
|
|
|
|
2,761 |
|
|
1,763 |
|
|
93 |
|
|
3,760 |
|
|
2,359 |
|
|
144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Carrying Value |
|
Interest Income Recognized (1)
|
|
Average Carrying Value |
|
Interest Income Recognized (1)
|
|
Average Carrying Value |
|
Interest Income Recognized (1)
|
|
Average Carrying Value |
|
Interest Income Recognized (1)
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
3,949 |
|
|
$ |
40 |
|
|
$ |
5,362 |
|
|
$ |
50 |
|
|
$ |
4,064 |
|
|
$ |
85 |
|
|
$ |
5,978 |
|
|
$ |
115 |
|
Home equity |
1,468 |
|
|
23 |
|
|
1,944 |
|
|
25 |
|
|
1,523 |
|
|
48 |
|
|
1,953 |
|
|
52 |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
1,678 |
|
|
$ |
16 |
|
|
$ |
2,482 |
|
|
$ |
24 |
|
|
$ |
1,766 |
|
|
$ |
34 |
|
|
$ |
2,597 |
|
|
$ |
49 |
|
Home equity |
676 |
|
|
6 |
|
|
891 |
|
|
6 |
|
|
707 |
|
|
12 |
|
|
889 |
|
|
12 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
5,627 |
|
|
$ |
56 |
|
|
$ |
7,844 |
|
|
$ |
74 |
|
|
$ |
5,830 |
|
|
$ |
119 |
|
|
$ |
8,575 |
|
|
$ |
164 |
|
Home equity |
2,144 |
|
|
29 |
|
|
2,835 |
|
|
31 |
|
|
2,230 |
|
|
60 |
|
|
2,842 |
|
|
64 |
|
|
|
(1) |
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible. |
The table below presents the June 30, 2019 and 2018 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of consumer real estate loans that were modified in TDRs during the three and six months ended June 30, 2019 and 2018. 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 Six Months Ended June 30, 2019 and 2018 |
|
|
|
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 June 30, 2019 |
|
Six Months Ended June 30, 2019 |
Residential mortgage |
$ |
154 |
|
|
$ |
125 |
|
|
4.28 |
% |
|
4.39 |
% |
|
$ |
277 |
|
|
$ |
224 |
|
|
4.27 |
% |
|
4.30 |
% |
Home equity |
101 |
|
|
71 |
|
|
5.17 |
|
|
5.16 |
|
|
159 |
|
|
113 |
|
|
5.21 |
|
|
4.88 |
|
Total |
$ |
255 |
|
|
$ |
196 |
|
|
4.63 |
|
|
4.69 |
|
|
$ |
436 |
|
|
$ |
337 |
|
|
4.61 |
|
|
4.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2018 |
|
Six Months Ended June 30, 2018 |
Residential mortgage |
$ |
276 |
|
|
$ |
237 |
|
|
4.24 |
% |
|
3.94 |
% |
|
$ |
628 |
|
|
$ |
542 |
|
|
4.17 |
% |
|
3.93 |
% |
Home equity |
194 |
|
|
152 |
|
|
4.43 |
|
|
4.42 |
|
|
392 |
|
|
297 |
|
|
4.38 |
|
|
4.06 |
|
Total |
$ |
470 |
|
|
$ |
389 |
|
|
4.32 |
|
|
4.14 |
|
|
$ |
1,020 |
|
|
$ |
839 |
|
|
4.25 |
|
|
3.98 |
|
|
|
(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 June 30, 2019 and 2018 carrying value for consumer real estate loans that were modified in a TDR during the three and six months ended June 30, 2019 and 2018, by type of modification.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate – Modification Programs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TDRs Entered into During the |
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
(Dollars in millions) |
2019 |
|
2018 |
|
2019 |
|
2018 |
Modifications under government programs (1)
|
$ |
10 |
|
|
$ |
17 |
|
|
$ |
18 |
|
|
$ |
35 |
|
Modifications under proprietary programs (1)
|
22 |
|
|
92 |
|
|
75 |
|
|
331 |
|
Loans discharged in Chapter 7 bankruptcy (2)
|
30 |
|
|
38 |
|
|
52 |
|
|
94 |
|
Trial modifications |
134 |
|
|
242 |
|
|
192 |
|
|
379 |
|
Total modifications |
$ |
196 |
|
|
$ |
389 |
|
|
$ |
337 |
|
|
$ |
839 |
|
|
|
(1) |
Includes other modifications such as term or payment extensions and repayment plans. During the three and six months ended June 30, 2018, this included $38 million and $196 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 June 30, 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 and six months ended June 30, 2019 and 2018 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 June 30 |
|
Six Months Ended June 30 |
(Dollars in millions) |
2019 |
|
2018 |
|
2019 |
|
2018 |
Modifications under government programs |
$ |
6 |
|
|
$ |
11 |
|
|
$ |
13 |
|
|
$ |
24 |
|
Modifications under proprietary programs |
20 |
|
|
56 |
|
|
49 |
|
|
87 |
|
Loans discharged in Chapter 7 bankruptcy (1)
|
9 |
|
|
16 |
|
|
18 |
|
|
39 |
|
Trial modifications (2)
|
11 |
|
|
22 |
|
|
27 |
|
|
67 |
|
Total modifications |
$ |
46 |
|
|
$ |
105 |
|
|
$ |
107 |
|
|
$ |
217 |
|
|
|
(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
Impaired loans within the Credit Card and Other Consumer portfolio segment consist entirely of loans that have been modified in TDRs. The Corporation seeks to assist customers that are experiencing financial difficulty by modifying loans while ensuring compliance with federal and local laws and guidelines. Credit card and other consumer loan modifications generally involve reducing the interest rate on the account, placing the customer on a fixed payment plan not exceeding 60 months and canceling the customer’s available line of credit, all of which are considered TDRs. The Corporation makes loan modifications directly with borrowers for debt held only by the Corporation (internal programs).
Additionally, the Corporation makes loan modifications for borrowers working with third-party renegotiation agencies that provide solutions to customers’ entire unsecured debt structures (external programs). The Corporation classifies other secured consumer loans that have been discharged in Chapter 7 bankruptcy as TDRs which are written down to collateral value and placed on nonaccrual status no later than the time of discharge.
The following table provides the unpaid principal balance, carrying value and related allowance at June 30, 2019 and December 31, 2018 and the average carrying value for the three and six months ended June 30, 2019 and 2018 for 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) |
|
|
|
|
June 30, 2019 |
|
December 31, 2018 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct/Indirect consumer |
|
|
|
|
$ |
71 |
|
|
$ |
33 |
|
|
$ |
— |
|
|
$ |
72 |
|
|
$ |
33 |
|
|
$ |
— |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. credit card |
|
|
|
|
$ |
580 |
|
|
$ |
594 |
|
|
$ |
174 |
|
|
$ |
522 |
|
|
$ |
533 |
|
|
$ |
154 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. credit card |
|
|
|
|
$ |
580 |
|
|
$ |
594 |
|
|
$ |
174 |
|
|
$ |
522 |
|
|
$ |
533 |
|
|
$ |
154 |
|
Direct/Indirect consumer |
|
|
|
|
71 |
|
|
33 |
|
|
— |
|
|
72 |
|
|
33 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Carrying Value (2)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30 |
|
Six Months Ended June 30 |
|
|
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct/Indirect consumer |
|
|
|
|
|
|
|
|
$ |
33 |
|
|
$ |
29 |
|
|
$ |
33 |
|
|
$ |
29 |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. credit card |
|
|
|
|
|
|
|
|
$ |
582 |
|
|
$ |
480 |
|
|
$ |
565 |
|
|
$ |
473 |
|
Direct/Indirect consumer |
|
|
|
|
|
|
|
|
— |
|
|
1 |
|
|
— |
|
|
1 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. credit card |
|
|
|
|
|
|
|
|
$ |
582 |
|
|
$ |
480 |
|
|
$ |
565 |
|
|
$ |
473 |
|
Direct/Indirect consumer |
|
|
|
|
|
|
|
|
33 |
|
|
30 |
|
|
33 |
|
|
30 |
|
|
|
(1) |
Includes accrued interest and fees. |
|
|
(2) |
The related interest income recognized, which 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 was considered collectible, was not significant for the three and six months ended June 30, 2019 and 2018.
|
The table below provides information on the Corporation’s primary modification programs for the Credit Card and Other Consumer TDR portfolio at June 30, 2019 and December 31, 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Card and Other Consumer – TDRs by Program Type |
|
|
|
|
|
|
|
U.S. Credit Card |
|
Direct/Indirect Consumer |
|
Total TDRs by Program Type |
(Dollars in millions) |
June 30 2019 |
|
December 31 2018 |
|
June 30 2019 |
|
December 31 2018 |
|
June 30 2019 |
|
December 31 2018 |
Internal programs |
$ |
302 |
|
|
$ |
259 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
302 |
|
|
$ |
259 |
|
External programs |
291 |
|
|
273 |
|
|
— |
|
|
— |
|
|
291 |
|
|
273 |
|
Other |
1 |
|
|
1 |
|
|
33 |
|
|
33 |
|
|
34 |
|
|
34 |
|
Total |
$ |
594 |
|
|
$ |
533 |
|
|
$ |
33 |
|
|
$ |
33 |
|
|
$ |
627 |
|
|
$ |
566 |
|
Percent of balances current or less than 30 days past due |
85 |
% |
|
85 |
% |
|
85 |
% |
|
81 |
% |
|
85 |
% |
|
85 |
% |
The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the June 30, 2019 and 2018 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during the three and six months ended June 30, 2019 and 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Card and Other Consumer – TDRs Entered into During the Three and Six Months Ended June 30, 2019 and 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Principal Balance |
|
Carrying Value (1)
|
|
Pre-Modification Interest Rate |
|
Post-Modification Interest Rate |
|
Unpaid Principal Balance |
|
Carrying
Value (1)
|
|
Pre-Modification Interest Rate |
|
Post-Modification Interest Rate |
(Dollars in millions) |
Three Months Ended June 30, 2019 |
|
Six Months Ended June 30, 2019 |
U.S. credit card |
$ |
95 |
|
|
$ |
102 |
|
|
19.84 |
% |
|
5.38 |
% |
|
$ |
184 |
|
|
$ |
195 |
|
|
19.82 |
% |
|
5.32 |
% |
Direct/Indirect consumer |
19 |
|
|
11 |
|
|
5.19 |
|
|
5.16 |
|
|
27 |
|
|
15 |
|
|
5.18 |
|
|
5.16 |
|
Total |
$ |
114 |
|
|
$ |
113 |
|
|
18.45 |
|
|
5.36 |
|
|
$ |
211 |
|
|
$ |
210 |
|
|
18.80 |
|
|
5.30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2018 |
|
Six Months Ended June 30, 2018 |
U.S. credit card |
$ |
72 |
|
|
$ |
78 |
|
|
19.18 |
% |
|
5.29 |
% |
|
$ |
140 |
|
|
$ |
149 |
|
|
19.06 |
% |
|
5.26 |
% |
Direct/Indirect consumer |
19 |
|
|
11 |
|
|
4.43 |
|
|
4.43 |
|
|
28 |
|
|
16 |
|
|
4.73 |
|
|
4.56 |
|
Total |
$ |
91 |
|
|
$ |
89 |
|
|
17.29 |
| |