Outstanding Loans and Leases and Allowance for Credit Losses

v3.20.2

Outstanding Loans and Leases and Allowance for Credit Losses	6 Months Ended
	Jun. 30, 2020
Receivables [Abstract]
Outstanding Loans and Leases and Allowance for Credit Losses	Outstanding Loans and Leases and Allowance for Credit Losses 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, 2020 and December 31, 2019.                               30-59 Days Past Due (1)   60-89 Days Past Due (1)   90 Days or More Past Due (1)   Total Past Due 30 Days or More   Total Current or Less Than 30 Days Past Due (1)   Loans Accounted for Under the Fair Value Option   Total Outstandings (Dollars in millions) June 30, 2020 Consumer real estate                           Core portfolio                           Residential mortgage $ 833   $ 144   $ 637   $ 1,614   $ 228,526       $ 230,140 Home equity 103   66   228   397   33,538       33,935 Non-core portfolio                           Residential mortgage 252   110   1,001   1,363   7,997       9,360 Home equity 23   15   68   106   4,355       4,461 Credit card and other consumer                           Credit card 352   286   782   1,420   82,824       84,244 Direct/Indirect consumer (2) 193   63   30   286   88,342       88,628 Other consumer —   —   —   —   120       120 Total consumer 1,756   684   2,746   5,186   445,702       450,888 Consumer loans accounted for under the fair value option (3)                     $ 684   684 Total consumer loans and leases 1,756   684   2,746   5,186   445,702   684   451,572 Commercial                           U.S. commercial 504   303   596   1,403   312,535       313,938 Non-U.S. commercial 17   43   16   76   103,608       103,684 Commercial real estate (4) (4) 38   2   201   241   63,854       64,095 Commercial lease financing 64   92   60   216   17,984       18,200 U.S. small business commercial (5) 73   66   122   261   38,702       38,963 Total commercial 696   506   995   2,197   536,683       538,880 Commercial loans accounted for under the fair value option (3)                     8,492   8,492 Total commercial loans and leases 696   506   995   2,197   536,683   8,492   547,372 Total loans and leases (6) $ 2,452   $ 1,190   $ 3,741   $ 7,383   $ 982,385   $ 9,176   $ 998,944 Percentage of outstandings 0.25 %   0.12 %   0.37 %   0.74 %   98.34 %   0.92 %   100.00 % (1)  Consumer real estate loans 30-59 days past due includes fully-insured loans of $208 million and nonperforming loans of $95 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $92 million and nonperforming loans of $78 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $1.0 billion. Consumer real estate loans current or less than 30 days past due includes $894 million and direct/indirect consumer includes $40 million of nonperforming loans. For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the COVID-19 pandemic, see Note 1 – Summary of Significant Accounting Principles. (2)  Total outstandings primarily includes auto and specialty lending loans and leases of $48.4 billion, U.S. securities-based lending loans of $36.6 billion and non-U.S. consumer loans of $2.8 billion. (3)  Consumer loans accounted for under the fair value option includes residential mortgage loans of $330 million and home equity loans of $354 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $5.1 billion and non-U.S. commercial loans of $3.4 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option. (4)  Total outstandings includes U.S. commercial real estate loans of $60.6 billion and non-U.S. commercial real estate loans of $3.5 billion. (5)  Includes PPP loans. (6)  Total outstandings includes loans and leases pledged as collateral of $15.7 billion. The Corporation also pledged $194.3 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank.                               30-59 Days Past Due (1)   60-89 Days Past Due (1)   90 Days or More Past Due (1)   Total Past Due 30 Days or More   Total Current or Less Than 30 Days Past Due (1)   Loans Accounted for Under the Fair Value Option   Total Outstandings (Dollars in millions) December 31, 2019 Consumer real estate                           Core portfolio                           Residential mortgage $ 1,378   $ 261   $ 565   $ 2,204   $ 223,566       $ 225,770 Home equity 135   70   198   403   34,823       35,226 Non-core portfolio                           Residential mortgage 458   209   1,263   1,930   8,469       10,399 Home equity 34   16   72   122   4,860       4,982 Credit card and other consumer                           Credit card 564   429   1,042   2,035   95,573       97,608 Direct/Indirect consumer (2) 297   85   35   417   90,581       90,998 Other consumer  —   —   —   —   192       192 Total consumer 2,866   1,070   3,175   7,111   458,064     465,175 Consumer loans accounted for under the fair value option (3)                     $ 594 594 Total consumer loans and leases 2,866   1,070   3,175   7,111   458,064   594   465,769 Commercial                           U.S. commercial 788   279   371   1,438   305,610       307,048 Non-U.S. commercial 35   23   8   66   104,900       104,966 Commercial real estate (4) 144   19   119   282   62,407       62,689 Commercial lease financing 100   56   39   195   19,685       19,880 U.S. small business commercial 119   56   107   282   15,051       15,333 Total commercial 1,186   433   644   2,263   507,653       509,916 Commercial loans accounted for under the fair value option (3)                     7,741   7,741 Total commercial loans and leases 1,186   433   644   2,263   507,653   7,741   517,657 Total loans and leases (5) $ 4,052   $ 1,503   $ 3,819   $ 9,374   $ 965,717   $ 8,335   $ 983,426 Percentage of outstandings 0.41 %   0.15 %   0.39 %   0.95 %   98.20 %   0.85 %   100.00 % (1)  Consumer real estate loans 30-59 days past due includes fully-insured loans of $517 million and nonperforming loans of $139 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $206 million and nonperforming loans of $114 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $1.1 billion. Consumer real estate loans current or less than 30 days past due includes $856 million and direct/indirect consumer includes $45 million of nonperforming loans. (2)  Total outstandings primarily includes auto and specialty lending loans and leases of $50.4 billion, U.S. securities-based lending loans of $36.7 billion and non-U.S. consumer loans of $2.8 billion. (3)  Consumer loans accounted for under the fair value option includes residential mortgage loans of $257 million and home equity loans of $337 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $4.7 billion and non-U.S. commercial loans of $3.1 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option. (4)  Total outstandings includes U.S. commercial real estate loans of $59.0 billion and non-U.S. commercial real estate loans of $3.7 billion. (5)  Total outstandings includes loans and leases pledged as collateral of $25.9 billion. The Corporation also pledged $168.2 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank. 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, Fair Isaac Corporation (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 Fannie Mae and Freddie Mac on loans totaling $8.6 billion and $7.5 billion at June 30, 2020 and December 31, 2019, 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. Nonperforming Loans and Leases Commercial nonperforming loans increased to $2.2 billion at June 30, 2020 from $1.5 billion at December 31, 2019 with broad-based increases across multiple industries. The Corporation did not see meaningful impacts to consumer portfolio delinquencies and nonperforming loans during the six months ended June 30, 2020 due to payment deferrals and government stimulus benefits. 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, 2020 and December 31, 2019. 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 information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the COVID-19 pandemic, see Note 1 – Summary of Significant Accounting Principles. 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 2019 Annual Report on Form 10-K.                 Credit Quality                       Nonperforming Loans and Leases   Accruing Past Due 90 Days or More (1) (Dollars in millions) June 30 2020   December 31 2019   June 30 2020   December 31 2019 Residential mortgage (2) $ 1,552   $ 1,470   $ 854   $ 1,088 With negative allowance (3) 469   —         Home equity (2) 594   536   —   — With negative allowance (3) 117   —         Credit Card n/a   n/a   782   1,042 Direct/indirect consumer 45   47   27   33 Total consumer 2,191   2,053   1,663   2,163 U.S. commercial 1,247   1,094   342   106 Non-U.S. commercial 387   43   9   8 Commercial real estate 474   280   44   19 Commercial lease financing 17   32   46   20 U.S. small business commercial 77   50   111   97 Total commercial 2,202   1,499   552   250 Total nonperforming loans $ 4,393   $ 3,552   $ 2,215   $ 2,413 Percentage of outstanding loans and leases 0.44 %   0.36 %   0.22 %   0.25 % (1)  For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the COVID-19 pandemic, see Note 1 – Summary of Significant Accounting Principles. (2)  Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At June 30, 2020 and December 31, 2019 residential mortgage includes $590 million and $740 million of loans on which interest had been curtailed by the FHA, and therefore were no longer accruing interest, although principal was still insured, and $264 million and $348 million of loans on which interest was still accruing. (3)  At June 30, 2020, Residential Mortgage and Home Equity include negative allowance on nonperforming loans of $155 million and $106 million. n/a = not applicable Included in the June 30, 2020 nonperforming loans are $119 million and $16 million of residential mortgage and home equity loans that prior to the January 1, 2020 adoption of the new credit loss standard were not included in nonperforming loans as they were previously classified as purchased credit-impaired loans and accounted for under a pool basis. 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, see Note 1 – Summary of Significant Accounting Principles. Within the Consumer Real Estate portfolio segment, the primary credit quality indicators are refreshed LTV and refreshed FICO score. Refreshed LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan, refreshed quarterly. Home equity loans are evaluated using CLTV which measures the carrying value of the Corporation’s loan and available line of credit combined with any outstanding senior liens against the property as a percentage of the value of the property securing the loan, refreshed quarterly. FICO score measures the creditworthiness of the borrower based on the financial obligations of the borrower and the borrower’s credit history. FICO scores are typically refreshed quarterly or more frequently. Certain borrowers (e.g., borrowers that have had debts discharged in a bankruptcy proceeding) may not have their FICO scores updated. FICO scores are also a primary credit quality indicator for the Credit Card and Other Consumer portfolio segment and the business card portfolio within U.S. small business commercial. Within the Commercial portfolio segment, loans are evaluated using the internal classifications of pass rated or reservable criticized as the primary credit quality indicators. The term reservable criticized refers to those commercial loans that are internally classified or listed by the Corporation as Special Mention, Substandard or Doubtful, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not considered reservable criticized. In addition to these primary credit quality indicators, the Corporation uses other credit quality indicators for certain types of loans. 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 and year of origination for term loan balances at June 30, 2020, including revolving loans that converted to term loans without an additional credit decision after origination or through a TDR.                             Residential Mortgage – Credit Quality Indicators By Vintage                             (Dollars in millions) Total as of June 30, 2020   2020   2019   2018   2017   2016   Prior Total Residential Mortgage                           Refreshed LTV                            Less than or equal to 90 percent $ 222,670   $ 36,651   $ 56,859   $ 21,030   $ 29,491   $ 30,393   $ 48,246 Greater than 90 percent but less than or equal to 100 percent 3,721   1,075   1,517   420   172   132   405 Greater than 100 percent 1,362   356   376   119   68   51   392 Fully-insured loans 11,747   1,788   2,635   522   425   2,453   3,924 Total Residential Mortgage $ 239,500   $ 39,870 $ 61,387   $ 22,091   $ 30,156   $ 33,029   $ 52,967                             Total Residential Mortgage                           Refreshed FICO score                           Less than 620 $ 3,029   $ 109   $ 277   $ 227   $ 245   $ 257   $ 1,914 Greater than or equal to 620 and less than 680 5,756   403   997   644   616   525   2,571 Greater than or equal to 680 and less than 740 26,826   3,162   6,570   2,926   3,314   2,937   7,917 Greater than or equal to 740 192,142   34,408   50,908   17,772   25,556   26,857   36,641 Fully-insured loans 11,747   1,788   2,635   522   425   2,453   3,924 Total Residential Mortgage $ 239,500   $ 39,870 $ 61,387   $ 22,091   $ 30,156   $ 33,029   $ 52,967                 Home Equity - Credit Quality Indicators                   Total   Home Equity Loans and Reverse Mortgages (1)   Revolving Loans   Revolving Loans Converted to Term Loans (Dollars in millions) June 30, 2020 Total Home Equity               Refreshed LTV                Less than or equal to 90 percent $ 37,252   $ 2,091   $ 25,071   $ 10,090 Greater than 90 percent but less than or equal to 100 percent 497   141   145   211 Greater than 100 percent 647   211   127   309 Total Home Equity $ 38,396   $ 2,443   $ 25,343   $ 10,610                 Total Home Equity               Refreshed FICO score               Less than 620 $ 1,212   $ 256   $ 261   $ 695 Greater than or equal to 620 and less than 680 2,082   298   629   1,155 Greater than or equal to 680 and less than 740 6,606   600   3,336   2,670 Greater than or equal to 740 28,496   1,289   21,117   6,090 Total Home Equity $ 38,396   $ 2,443   $ 25,343   $ 10,610 (1)  Includes reverse mortgages of $1.4 billion and home equity loans of $1.1 billion which are no longer originated.                                             Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage                                               Direct/Indirect               Term Loans by Origination Year   Credit Card (Dollars in millions) Total Direct/Indirect as of June 30, 2020   Revolving Loans   2020   2019   2018   2017   2016   Prior   Total Credit Card as of June 30, 2020   Revolving Loans   Revolving Loans Converted to Term Loans (3) Refreshed FICO score                                           Less than 620 $ 1,197   $ 22   $ 55   $ 220   $ 223   $ 338   $ 234   $ 105   $ 4,300   $ 4,075   $ 225 Greater than or equal to 620 and less than 680 2,409   25   352   735   447   433   268   149   10,511   10,304   207 Greater than or equal to 680 and less than 740 7,719   90   1,519   2,602   1,375   1,078   616   439   30,679   30,505   174 Greater than or equal to 740 37,307   129   6,690   12,879   7,590   5,039   2,668   2,312   38,754   38,713   41 Other internal credit    metrics (1, 2) 39,996   39,351   41   120   119   83   56   226   —   —   — Total credit card and other consumer $ 88,628   $ 39,617   $ 8,657   $ 16,556   $ 9,754   $ 6,971   $ 3,842   $ 3,231   $ 84,244   $ 83,597   $ 647 (1)  Other internal credit metrics may include delinquency status, geography or other factors. (2)  Direct/indirect consumer includes $39.4 billion of securities-based lending which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at June 30, 2020. (3)  Represents troubled debt restructurings that were modified into term loans.                                 Commercial – Credit Quality Indicators By Vintage (1, 2)                   Term Loans           Amortized Cost Basis by Origination Year     (Dollars in millions) Total as of June 30, 2020   2020   2019   2018   2017   2016   Prior   Revolving Loans U.S. Commercial                               Risk ratings                               Pass rated $ 296,434   $ 25,884   $ 42,179   $ 22,334   $ 17,409   $ 9,549   $ 22,068   $ 157,011 Reservable criticized 17,504   531   1,822   1,455   789   547   1,333   11,027 Total U.S. Commercial $ 313,938   $ 26,415 $ 44,001   $ 23,789   $ 18,198   $ 10,096   $ 23,401   $ 168,038                                 Non-U.S. Commercial                               Risk ratings                               Pass rated $ 100,749   $ 10,880   $ 16,038   $ 9,521   $ 6,733   $ 1,717   $ 6,986   $ 48,874 Reservable criticized 2,935   182   423   345   122   60   73   1,730 Total Non-U.S. Commercial $ 103,684   $ 11,062 $ 16,461   $ 9,866   $ 6,855   $ 1,777   $ 7,059   $ 50,604                                 Commercial Real Estate                               Risk ratings                               Pass rated $ 61,690   $ 5,654   $ 17,096   $ 11,800   $ 7,005   $ 4,090   $ 8,750   $ 7,295 Reservable criticized 2,405   1   485   510   539   267   414   189 Total Commercial Real Estate $ 64,095   $ 5,655 $ 17,581   $ 12,310   $ 7,544   $ 4,357   $ 9,164   $ 7,484                                 Commercial Lease Financing                               Risk ratings                               Pass rated $ 17,603   $ 1,860   $ 3,552   $ 3,509   $ 2,996   $ 2,035   $ 3,651   $ — Reservable criticized 597   58   92   148   64   44   191   — Total Commercial Lease Financing $ 18,200   $ 1,918 $ 3,644   $ 3,657   $ 3,060   $ 2,079   $ 3,842   $ —                                 U.S. Small Business Commercial (3)                               Risk ratings                               Pass rated $ 31,169   $ 25,656   $ 1,320   $ 1,001   $ 843   $ 605   $ 1,538   $ 206 Reservable criticized 938   15   87   141   164   120   402   9 Total U.S. Small Business Commercial $ 32,107   $ 25,671 $ 1,407   $ 1,142   $ 1,007   $ 725   $ 1,940   $ 215  Total (1, 2) $ 532,024   $ 70,721 $ 83,094   $ 50,764   $ 36,664   $ 19,034   $ 45,406   $ 226,341 (1) Excludes $8.5 billion and $7.7 billion of loans accounted for under the fair value option at June 30, 2020 and December 31, 2019. (2) Includes $69 million of loans that converted from revolving to term loans. (3) Excludes U.S. Small Business Card loans of $6.9 billion. Refreshed FICO scores for this portfolio are $294 million for less than 620; $674 million for greater than or equal to 620 and less than 680; $1.9 billion for greater than or equal to 680 and less than 740; and $4.0 billion greater than or equal to 740. As a result of the economic impact of COVID-19, commercial asset quality weakened during the three months ended June 30, 2020. Commercial reservable criticized utilized exposure increased to $26.0 billion at June 30, 2020 from $11.5 billion (to 4.51 percent from 2.09 percent of total commercial reservable utilized exposure) at December 31, 2019 with increases spread across multiple industries. Troubled Debt Restructurings The Corporation began entering into loan modifications with borrowers in response to the COVID-19 pandemic, which have not been classified as TDRs, and therefore are not included in the discussion below. For more information on the criteria for classifying loans as TDRs, see Note 1 – Summary of Significant Accounting Principles.  Consumer Real Estate Modifications of consumer real estate loans are classified as TDRs when the borrower is experiencing financial difficulties and a concession has been granted. Concessions may include reductions in interest rates, capitalization of past due amounts, principal and/or interest forbearance, payment extensions, principal and/or interest forgiveness, or combinations thereof. Prior to permanently modifying a loan, the Corporation may enter into trial modifications with certain borrowers under both government and proprietary programs. Trial modifications generally represent a three- to four-month period during which the borrower makes monthly payments under the anticipated modified payment terms. Upon successful completion of the trial period, the Corporation and the borrower enter into a permanent modification. Binding trial modifications are classified as TDRs when the trial offer is made and continue to be classified as TDRs regardless of whether the borrower enters into a permanent modification. Consumer real estate loans of $396 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, 2020, of which $98 million were classified as nonperforming and $75 million were loans fully insured. Consumer real estate TDRs are measured primarily based on the net present value of the estimated cash flows discounted at the loan’s original effective interest rate. If the carrying value of a TDR exceeds this amount, a specific allowance is recorded as a component of the allowance for loan and lease losses. Alternatively, consumer real estate TDRs that are considered to be dependent solely on the collateral for repayment (e.g., due to the lack of income verification) are measured based on the estimated fair value of the collateral and a charge-off is recorded if the carrying value exceeds the fair value of the collateral. Consumer real estate loans that reach 180 days past due prior to modification are charged off to their net realizable value, less costs to sell, before they are modified as TDRs in accordance with established policy. Subsequent declines in the fair value of the collateral after a loan has reached 180 days past due are recorded as charge-offs. Fully-insured loans are protected against principal loss, and therefore, the Corporation does not record an allowance for loan and lease losses on the outstanding principal balance, even after they have been modified in a TDR. At June 30, 2020 and December 31, 2019, 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 $169 million and $229 million at June 30, 2020 and December 31, 2019. The carrying value of consumer real estate loans, including fully-insured loans, for which formal foreclosure proceedings were in process at June 30, 2020 was $1.4 billion. Although the Corporation has paused formal loan foreclosure proceedings and foreclosure sales, during the six months ended June 30, 2020, the Corporation reclassified $154 million of consumer real estate loans completed or which were in process prior to the pause in foreclosures, 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 table below presents the June 30, 2020 and 2019 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, 2020 and 2019. 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, 2020 and 2019 (1)       Unpaid Principal Balance   Carrying Value   Pre-Modification Interest Rate   Post-Modification Interest Rate (2)   Unpaid Principal Balance   Carrying Value   Pre-Modification Interest Rate   Post-Modification Interest Rate (2) (Dollars in millions) Three Months Ended June 30, 2020   Six Months Ended June 30, 2020 Residential mortgage $ 120   $ 103   4.22 %   4.19 %   $ 219   $ 185   4.10 %   4.01 % Home equity 22   18   3.68   3.65   45   38   3.99   3.92 Total $ 142   $ 121   4.14   4.11   $ 264   $ 223   4.08   3.99                                   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 (1)  For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles. (2)  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, 2020 and 2019 carrying value for consumer real estate loans that were modified in a TDR during the three and six months ended June 30, 2020 and 2019, by type of modification.                 Consumer Real Estate – Modification Programs (1)                               TDRs Entered into During the   Three Months Ended June 30   Six Months Ended June 30 (Dollars in millions) 2020   2019   2020   2019 Modifications under government programs $ —   $ 10   $ 3   $ 18 Modifications under proprietary programs 20   22   59   75 Loans discharged in Chapter 7 bankruptcy (2) 21   30   32 569 52 Trial modifications 80   134   129 211 192 Total modifications $ 121   $ 196   $ 223 $ 337 (1)  For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles. (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, 2020 and 2019 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 (1)                   Three Months Ended June 30   Six Months Ended June 30 (Dollars in millions) 2020   2019   2020   2019 Modifications under government programs $ 2   $ 6   $ 8   $ 13 Modifications under proprietary programs 5   20   19   49 Loans discharged in Chapter 7 bankruptcy (2) 4   9   11   18 Trial modifications (3) 12   11   30   27 Total modifications $ 23   $ 46   $ 68   $ 107 (1)  For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles. (2)  Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. (3)  Includes trial modification offers to which the customer did not respond. Credit Card and Other Consumer 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 table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the June 30, 2020 and 2019 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, 2020 and 2019.                                 Credit Card and Other Consumer – TDRs Entered into During the Three and Six Months Ended June 30, 2020 and 2019 (1)                                   Unpaid Principal Balance   Carrying Value (2)   Pre-Modification Interest Rate   Post-Modification Interest Rate   Unpaid Principal Balance   Carrying Value (2)   Pre-Modification Interest Rate   Post-Modification Interest Rate (Dollars in millions) Three Months Ended June 30, 2020   Six Months Ended June 30, 2020 Credit card $ 57   $ 61   18.08 %   5.15 %   $ 144   $ 152   18.02 %   5.24 % Direct/Indirect consumer 14   8   5.26   5.26   23   12   5.31   5.31 Total $ 71   $ 69   16.61   5.16   $ 167   $ 164   17.07   5.25                                   Three Months Ended June 30, 2019   Six Months Ended June 30, 2019 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 (1)  For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles. (2)  Includes accrued interest and fees. The table below presents the June 30, 2020 and 2019 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during the three and six months ended June 30, 2020 and 2019, by program type.                 Credit Card and Other Consumer – TDRs by Program Type (1)               TDRs Entered into During the Three Months Ended June 30   TDRs Entered into During the Six Months Ended June 30 (Dollars in millions) 2020   2019   2020   2019 Internal programs $ 43   $ 71   $ 109   $ 136 External programs 18   31   43   59 Other 8   11   12   15 Total $ 69   $ 113   $ 164   $ 210 (1)  Includes accrued interest and fees. For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles. Credit card and other consumer loans are deemed to be in payment default during the quarter in which a borrower misses the second of two consecutive payments. Payment defaults are one of the factors considered when projecting future cash flows in the calculation of the allowance for loan and lease losses for credit card and other consumer. Based on historical experience, the Corporation estimates that 14 percent of new credit card TDRs and 22 percent of new direct/indirect consumer TDRs may be in payment default within 12 months after modification. Commercial Loans Modifications of loans to commercial borrowers that are experiencing financial difficulty are designed to reduce the Corporation’s loss exposure while providing the borrower with an opportunity to work through financial difficulties, often to avoid foreclosure or bankruptcy. Each modification is unique and reflects the individual circumstances of the borrower. Modifications that result in a TDR may include extensions of maturity at a concessionary (below market) rate of interest, payment forbearances or other actions designed to benefit the borrower while mitigating the Corporation’s risk exposure. Reductions in interest rates are rare. Instead, the interest rates are typically increased, although the increased rate may not represent a market rate of interest. Infrequently, concessions may also include principal forgiveness in connection with foreclosure, short sale or other settlement agreements leading to termination or sale of the loan. At the time of restructuring, the loans are remeasured to reflect the impact, if any, on projected cash flows resulting from the modified terms. If a portion of the loan is deemed to be uncollectible, a charge-off may be recorded at the time of restructuring. Alternatively, a charge-off may have already been recorded in a previous period such that no charge-off is required at the time of modification. For more information on modifications for the U.S. small business commercial portfolio, see Credit Card and Other Consumer in this Note. At June 30, 2020 and December 31, 2019, remaining commitments to lend additional funds to debtors whose terms have been modified in a commercial loan TDR were $500 million and $445 million. The balance of commercial TDRs in payment default was not significant at June 30, 2020 and December 31, 2019. Loans Held-for-sale The Corporation had LHFS of $7.4 billion and $9.2 billion at June 30, 2020 and December 31, 2019. Cash and non-cash proceeds from sales and paydowns of loans originally classified as LHFS were $11.1 billion and $14.4 billion for the six months ended June 30, 2020 and 2019. Cash used for originations and purchases of LHFS totaled approximately $9.2 billion for both the six months ended June 30, 2020 and 2019. Accrued Interest Receivable Accrued interest receivable for loans and leases and loans held-for-sale at June 30, 2020 and December 31, 2019 was $2.4 billion and $2.6 billion and is reported in customer and other receivables on the Consolidated Balance Sheet. Outstanding credit card loan balances include unpaid principal, interest and fees. Credit card loans are not classified as nonperforming but are charged-off no later than the end of the month in which the account becomes 180 days past due, within 60 days after receipt of notification of death or bankruptcy, or upon confirmation of fraud. During the three and six months ended June 30, 2020, the Corporation reversed $141 million and $306 million of interest and fee income against the income statement line item in which it was originally recorded upon charge-off of the principal balance of the loan. For the outstanding residential mortgage, home equity, direct/indirect consumer and commercial loan balances classified as nonperforming during the three and six months ended June 30, 2020, the Corporation reversed $8 million and $18 million of interest and fee income at the time the loans were classified as nonperforming against the income statement line item in which it was originally recorded. For more information on the Corporation's nonperforming loan policies, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K. Allowance for Credit Losses On January 1, 2020, the Corporation adopted the new accounting standard that requires the measurement of the allowance for credit losses to be based on management’s best estimate of lifetime ECL inherent in the Corporation’s relevant financial assets. Upon adoption of the new accounting standard, the Corporation recorded a $3.3 billion, or 32 percent, increase in the allowance for credit losses, which was comprised of a net increase of $2.9 billion in the allowance for loan and lease losses and a $310 million increase in the reserve for unfunded lending commitments. The net increase in the allowance for loan and lease losses was primarily driven by a $3.1 billion increase in credit card as the Corporation now reserves for the life of these receivables. The increase in the reserve for unfunded lending commitments included $119 million in the consumer portfolio for the undrawn portion of HELOCs and $191 million in the commercial portfolio. For more information on the Corporation's credit loss accounting policies including the allowance for credit losses see Note 1 – Summary of Significant Accounting Principles. The allowance for loan and lease losses at June 30, 2020 was $19.4 billion, an increase of $7.0 billion compared to January 1, 2020. The increase in the allowance for loan and lease losses was primarily driven by deterioration in the economic outlook resulting from the impact of COVID-19. The increase in the allowance for loan and lease losses was $393 million in the consumer real estate portfolio, $2.7 billion in the credit card and other consumer portfolio, and $3.9 billion in the commercial portfolio. The reserve for unfunded lending commitments increased $579 million from January 1, 2020 to $1.7 billion at June 30, 2020. The allowance for credit losses is estimated using quantitative methods that consider a variety of factors such as historical loss experience, the current credit quality of the portfolio as well as an economic outlook over the life of the loan. Also included in the allowance for loan and lease losses are qualitative reserves to cover losses that are expected but, in the Corporation's assessment, may not be adequately represented in the quantitative methods or the economic assumptions. In its loss forecasting framework, the Corporation incorporates forward-looking information through the use of macroeconomic scenarios applied over the forecasted life of the assets. The scenarios that are chosen each quarter and the amount of weighting given to each scenario depend on a variety of factors including recent economic events, leading economic indicators, views of internal as well as third-party economists and industry trends. For more information on the Corporation's credit loss accounting policies, including the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principles. The lifetime estimate considers several recessionary scenarios that include deterioration in key macroeconomic variables such as gross domestic product, unemployment rate and home price index over the life of the portfolio. As of January 1, 2020, the Corporation's economic outlook was weighted to include the potential of a recession with some expectation of tail risk similar to the severely adverse scenario used in stress testing. During the three and six months ended June 30, 2020, there was significant deterioration in the macroeconomic conditions in the U.S. and globally related to impact of COVID-19. This has resulted in changes to key macroeconomic variables, including, but not limited to, increases in the unemployment rate and decreases to the forecasted gross domestic product compared to the Corporation's January 1, 2020 outlook. The weakened economic outlook was the primary driver of the Corporation’s increase in the allowance for credit losses. In establishing the allowance for credit losses at June 30, 2020, the Corporation used an economic outlook derived from weighting consensus estimates, a downside scenario that assumed a significantly slower recovery in order to reflect the uncertainty around the pace of recovery in the current crisis, and a tail risk scenario similar to the severely adverse scenario used in stress testing.  The unemployment rate under this economic outlook remained above 10 percent as of the fourth quarter of 2020 with a gradual decline to above seven percent in the fourth quarter of 2021.  Additionally, in this economic outlook, gross domestic product did not return to pre-pandemic levels until the beginning of 2023.  The Corporation factored into its allowance for credit loss estimate the impact to borrowers from additional unemployment benefits that were provided as part of the CARES Act, including a probability-weighted likelihood of an extension of benefits into the fourth quarter of 2020. In addition, the allowance for credit losses at June 30, 2020 included qualitative reserves for certain segments that the Corporation views as higher risk that may not be fully recognized through its quantitative models. These high risk segments include leveraged loans and higher risk industries such as hospitality and energy. The Corporation also holds additional reserves for borrowers who requested deferrals that take into account their credit characteristics and payment behavior subsequent to deferral.  There are still many unknowns including the duration of the impact of COVID-19 on the economy and the results of the current government fiscal and monetary actions including payment deferral programs as well as future government actions. The Corporation will continue to evaluate the allowance for credit losses and the related economic outlook each quarter. Outstanding loans and leases excluding loans accounted for under the fair value option increased $14.7 billion in the six months ended June 30, 2020. Outstanding commercial loans and leases excluding loans accounted for under the fair value option increased $29.0 billion primarily due to $25.1 billion of funded PPP loans and growth in the commercial and industrial portfolio. Outstanding consumer loans and leases excluding loans accounted for under the fair value option decreased $14.3 billion in the six months ended June 30, 2020 primarily driven by a decline in credit card due to reduced consumer spending. The funding of PPP loans did not impact the allowance for credit losses as they are fully guaranteed by the SBA. The decline in consumer loans and leases somewhat offset the increase in the allowance for credit driven by the weaker economic outlook. The table below summarizes the changes in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2020 and 2019.                   Consumer Real Estate   Credit Card and Other Consumer   Commercial   Total (Dollars in millions) Three Months Ended June 30, 2020 Allowance for loan and lease losses, April 1 $ 808   $ 8,258   $ 6,700   $ 15,766 Loans and leases charged off (27 )   (985 )   (447 )   (1,459 ) Recoveries of loans and leases previously charged off 61   217   35   313 Net charge-offs 34   (768 )   (412 )   (1,146 ) Provision for loan and lease losses (9 )   2,632   2,152   4,775 Other (1) —   —   (6 )   (6 ) Allowance for loan and lease losses, June 30 833   10,122   8,434   19,389 Reserve for unfunded lending commitments, April 1 149   —   1,211   1,360 Provision for unfunded lending commitments (8 )   —   350   342 Reserve for unfunded lending commitments, June 30 141 — 1,561 1,702 Allowance for credit losses, June 30 $ 974   $ 10,122   $ 9,995   $ 21,091                   Three Months Ended June 30, 2019 Allowance for loan and lease losses, April 1 $ 822   $ 3,934   $ 4,821   $ 9,577 Loans and leases charged off (153 )   (1,075 )   (233 )   (1,461 ) Recoveries of loans and leases previously charged off 305   232   37   574 Net charge-offs 152   (843 )   (196 )   (887 ) Provision for loan and lease losses (239 )   879   213   853 Other (1) (16 )   —   —   (16 ) Allowance for loan and lease losses, June 30 719   3,970   4,838   9,527 Reserve for unfunded lending commitments, April 1 —   —   802   802 Provision for unfunded lending commitments —   —   4   4 Reserve for unfunded lending commitments, June 30 —   —   806   806 Allowance for credit losses, June 30 $ 719   $ 3,970   $ 5,644   $ 10,333                 (Dollars in millions) Six Months Ended June 30, 2020 Allowance for loan and lease losses, January 1 $ 440   $ 7,430   $ 4,488   $ 12,358 Loans and leases charged off (62 )   (2,106 )   (729 )   (2,897 ) Recoveries of loans and leases previously charged off 108   454   67   629 Net charge-offs 46   (1,652 )   (662 )   (2,268 ) Provision for loan and lease losses 342   4,344   4,614   9,300 Other (1) 5   —   (6 )   (1 ) Allowance for loan and lease losses, June 30 833   10,122   8,434   19,389 Reserve for unfunded lending commitments, January 1 119   —   1,004   1,123 Provision for unfunded lending commitments 22   —   556   578 Other (1) —   —   1   1 Reserve for unfunded lending commitments, June 30 141 — 1,561   1,702 Allowance for credit losses, June 30 $ 974   $ 10,122   $ 9,995   $ 21,091                   Six Months Ended June 30, 2019 Allowance for loan and lease losses, January 1 $ 928   $ 3,874   $ 4,799   $ 9,601 Loans and leases charged off (256 )   (2,132 )   (410 )   (2,798 ) Recoveries of loans and leases previously charged off 413   449   58   920 Net charge-offs 157   (1,683 )   (352 )   (1,878 ) Provision for loan and lease losses (309 )   1,779   391   1,861 Other (1) (57 )   —   —   (57 ) Allowance for loan and lease losses, June 30 719   3,970   4,838   9,527 Reserve for unfunded lending commitments, January 1 —   —   797   797 Provision for unfunded lending commitments —   —   9   9 Reserve for unfunded lending commitments, June 30 —   —   806   806 Allowance for credit losses, June 30 $ 719 $ 3,970 $ 5,644 $ 10,333 (1)  Primarily represents write-offs of purchased credit-impaired loans in 2019, and the net impact of portfolio sales, transfers to held-for-sale and transfers to foreclosed properties. The provision for credit losses, including unfunded lending commitments, increased $4.3 billion to $5.1 billion, and $8.0 billion to $9.9 billion for the three and six months ended June 30, 2020 compared to the same periods in 2019 driven by deterioration in the economic outlook resulting from the impact of COVID-19. At June 30, 2020, the allowance for credit losses for the Corporation’s other relevant assets was insignificant.