Outstanding Loans and Leases and Allowance for Credit Losses (Tables)
|
6 Months Ended |
Jun. 30, 2020 |
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 June 30, 2020 and December 31, 2019.
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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 (1)
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Total Past Due 30 Days
or More
|
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Total Current or Less Than 30 Days Past Due (1)
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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)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
684 |
|
|
684 |
|
Total consumer loans and leases |
1,756 |
|
|
684 |
|
|
2,746 |
|
|
5,186 |
|
|
445,702 |
|
|
684 |
|
|
451,572 |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
|
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U.S. commercial |
504 |
|
|
303 |
|
|
596 |
|
|
1,403 |
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|
312,535 |
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|
|
|
313,938 |
|
Non-U.S. commercial |
17 |
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|
43 |
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|
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)
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|
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|
8,492 |
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|
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.
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(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.
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(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.
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(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.
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(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.
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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 (1)
|
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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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Core portfolio |
|
|
|
|
|
|
|
|
|
|
|
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|
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.
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(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.
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(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.
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(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.
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(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.
|
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 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.
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Credit Quality |
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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
|
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 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.
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|
Residential Mortgage – Credit Quality Indicators By Vintage |
|
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|
|
|
|
|
|
|
|
|
(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.
|
Troubled Debt Restructurings on Financing Receivables |
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.
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.
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Credit Card and Other Consumer – TDRs Entered into During the Three and Six Months Ended June 30, 2020
and 2019 (1)
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|
|
|
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 |
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
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.
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|
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.
|
Changes in the Allowance for Credit Losses |
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.
|
|
|
|
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|
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|
|
|
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|
|
|
|
|
|
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 |
|
|
$< | |