Outstanding Loans and Leases and Allowance for Credit Losses

v3.22.0.1

Outstanding Loans and Leases and Allowance for Credit Losses	12 Months Ended
	Dec. 31, 2021
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 December 31, 2021 and 2020. 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, 2021 Consumer real estate             Residential mortgage $ 1,005  $ 297  $ 1,571  $ 2,873  $ 219,090  $ 221,963  Home equity 123  69  369  561  27,374  27,935  Credit card and other consumer Credit card 298  212  487  997  80,441  81,438  Direct/Indirect consumer (2) 147  52  18  217  103,343  103,560  Other consumer —  —  —  —  190  190  Total consumer 1,573  630  2,445  4,648  430,438  435,086  Consumer loans accounted for under the fair value option (3)           $ 618  618  Total consumer loans and leases 1,573  630  2,445  4,648  430,438  618  435,704  Commercial U.S. commercial 815  308  396  1,519  324,417  325,936  Non-U.S. commercial 148  20  83  251  113,015  113,266  Commercial real estate (4) 115  34  285  434  62,575  63,009  Commercial lease financing 104  28  13  145  14,680  14,825  U.S. small business commercial (5) 129  259  89  477  18,706  19,183  Total commercial 1,311  649  866  2,826  533,393  536,219  Commercial loans accounted for under the fair value option (3)           7,201  7,201  Total commercial loans and leases 1,311  649  866  2,826  533,393  7,201  543,420  Total loans and leases (6) $ 2,884  $ 1,279  $ 3,311  $ 7,474  $ 963,831  $ 7,819  $ 979,124  Percentage of outstandings 0.29  % 0.13  % 0.34  % 0.76  % 98.44  % 0.80  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $164 million and nonperforming loans of $118 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $89 million and nonperforming loans of $100 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $633 million. Consumer real estate loans current or less than 30 days past due includes $1.4 billion and direct/indirect consumer includes $55 million of nonperforming loans. For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $48.5 billion, U.S. securities-based lending loans of $51.1 billion and non-U.S. consumer loans of $3.0 billion. (3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $279 million and home equity loans of $339 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $4.6 billion and non-U.S. commercial loans of $2.6 billion. For more information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option. (4)Total outstandings includes U.S. commercial real estate loans of $58.2 billion and non-U.S. commercial real estate loans of $4.8 billion. (5)Includes Paycheck Protection Program loans. (6)Total outstandings includes loans and leases pledged as collateral of $13.0 billion. The Corporation also pledged $146.6 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, 2020 Consumer real estate             Residential mortgage $ 1,430  $ 297  $ 1,699  $ 3,426  $ 220,129  $ 223,555  Home equity 154  78  345  577  33,734  34,311  Credit card and other consumer           Credit card 445  341  903  1,689  77,019    78,708  Direct/Indirect consumer (2) 209  67  37  313  91,050    91,363  Other consumer  —  —  —  —  124    124  Total consumer 2,238  783  2,984  6,005  422,056  428,061  Consumer loans accounted for under the fair value option (3) $ 735  735  Total consumer loans and leases 2,238  783  2,984  6,005  422,056  735  428,796  Commercial               U.S. commercial 561  214  512  1,287  287,441    288,728  Non-U.S. commercial 61  44  11  116  90,344    90,460  Commercial real estate (4) 128  113  226  467  59,897    60,364  Commercial lease financing 86  20  57  163  16,935    17,098  U.S. small business commercial (5) 84  56  123  263  36,206    36,469  Total commercial 920  447  929  2,296  490,823    493,119  Commercial loans accounted for under the fair value option (3) 5,946  5,946  Total commercial loans and leases 920  447  929  2,296  490,823  5,946  499,065  Total loans and leases (6) $ 3,158  $ 1,230  $ 3,913  $ 8,301  $ 912,879  $ 6,681  $ 927,861  Percentage of outstandings 0.34  % 0.13  % 0.42  % 0.89  % 98.39  % 0.72  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $225 million and nonperforming loans of $126 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $103 million and nonperforming loans of $95 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $762 million. Consumer real estate loans current or less than 30 days past due includes $1.2 billion and direct/indirect consumer includes $66 million of nonperforming loans. For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $46.4 billion, U.S. securities-based lending loans of $41.1 billion and non-U.S. consumer loans of $3.0 billion. (3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $298 million and home equity loans of $437 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.9 billion and non-U.S. commercial loans of $3.0 billion. For more information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option. (4)Total outstandings includes U.S. commercial real estate loans of $57.2 billion and non-U.S. commercial real estate loans of $3.2 billion. (5)Includes Paycheck Protection Program loans. (6)Total outstandings includes loans and leases pledged as collateral of $15.5 billion. The Corporation also pledged $153.1 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 has entered into long-term credit protection agreements with FNMA and FHLMC on loans totaling $10.5 billion and $9.0 billion at December 31, 2021 and 2020, 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 decreased to $1.6 billion at December 31, 2021 from $2.2 billion at December 31, 2020. Consumer nonperforming loans increased to $3.0 billion at December 31, 2021 from $2.7 billion at December 31, 2020 driven by consumer real estate deferral activity. The following table presents the Corporation’s nonperforming loans and leases including nonperforming TDRs, and loans accruing past due 90 days or more at December 31, 2021 and 2020. Nonperforming LHFS are excluded from nonperforming loans and leases as they are recorded at either fair value or the lower of cost or fair value. For more information on the criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles. Credit Quality Nonperforming Loans and Leases Accruing Past Due 90 Days or More (1) December 31 (Dollars in millions) 2021 2020 2021 2020 Residential mortgage (2) $ 2,284  $ 2,005  $ 634  $ 762  With no related allowance (3) 1,950  1,378  —  —  Home equity (2) 630  649  —  —  With no related allowance (3) 414  347  —  —  Credit Card                      n/a               n/a 487  903  Direct/indirect consumer 75  71  11  33  Total consumer 2,989  2,725  1,132  1,698  U.S. commercial 825  1,243  171  228  Non-U.S. commercial 268  418  19  10  Commercial real estate 382  404  40  6  Commercial lease financing 80  87  8  25  U.S. small business commercial 23  75  87  115  Total commercial 1,578  2,227  325  384  Total nonperforming loans $ 4,567  $ 4,952  $ 1,457  $ 2,082  Percentage of outstanding loans and leases 0.47  % 0.54  % 0.15  % 0.23  % (1)For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the 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 December 31, 2021 and 2020 residential mortgage includes $444 million and $537 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 $190 million and $225 million of loans on which interest was still accruing. (3)Primarily relates to loans for which the estimated fair value of the underlying collateral less any costs to sell is greater than the amortized cost of the loans as of the reporting date. 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, 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 Fair Isaac Corporation (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 combined loan-to-value (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 December 31, 2021, 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 Term Loans by Origination Year (Dollars in millions) Total as of December 31,  2021 2021 2020 2019 2018 2017 Prior Total Residential Mortgage Refreshed LTV       Less than or equal to 90 percent $ 206,562  $ 87,051  $ 43,597  $ 23,205  $ 7,392  $ 10,956  $ 34,361  Greater than 90 percent but less than or equal to 100 percent 1,938  1,401  331  81  17  14  94  Greater than 100 percent 759  520  112  29  11  12  75  Fully-insured loans 12,704  3,845  3,486  1,150  216  235  3,772  Total Residential Mortgage $ 221,963  $ 92,817  $ 47,526  $ 24,465  $ 7,636  $ 11,217  $ 38,302  Total Residential Mortgage Refreshed FICO score Less than 620 $ 2,451  $ 636  $ 442  $ 140  $ 120  $ 104  $ 1,009  Greater than or equal to 620 and less than 680 5,199  1,511  1,123  477  294  307  1,487  Greater than or equal to 680 and less than 740 24,532  8,822  5,454  2,785  1,057  1,434  4,980  Greater than or equal to 740 177,077  78,003  37,021  19,913  5,949  9,137  27,054  Fully-insured loans 12,704  3,845  3,486  1,150  216  235  3,772  Total Residential Mortgage $ 221,963  $ 92,817  $ 47,526  $ 24,465  $ 7,636  $ 11,217  $ 38,302  Home Equity - Credit Quality Indicators Total Home Equity Loans and Reverse Mortgages (1) Revolving Loans Revolving Loans Converted to Term Loans (Dollars in millions) December 31, 2021 Total Home Equity Refreshed LTV       Less than or equal to 90 percent $ 27,594  $ 1,773  $ 19,095  $ 6,726  Greater than 90 percent but less than or equal to 100 percent 130  55  34  41  Greater than 100 percent 211  85  54  72  Total Home Equity $ 27,935  $ 1,913  $ 19,183  $ 6,839  Total Home Equity Refreshed FICO score Less than 620 $ 893  $ 244  $ 209  $ 440  Greater than or equal to 620 and less than 680 1,434  222  495  717  Greater than or equal to 680 and less than 740 4,625  468  2,493  1,664  Greater than or equal to 740 20,983  979  15,986  4,018  Total Home Equity $ 27,935  $ 1,913  $ 19,183  $ 6,839  (1)Includes reverse mortgages of $1.3 billion and home equity loans of $582 million 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 December 31,  2021 Revolving Loans 2021 2020 2019 2018 2017 Prior Total Credit Card as of December 31,  2021 Revolving Loans Revolving Loans Converted to Term Loans (1) Refreshed FICO score     Less than 620 $ 685  $ 13  $ 179  $ 115  $ 129  $ 79  $ 101  $ 69  $ 3,017  $ 2,857  $ 160  Greater than or equal to 620 and less than 680 2,313  14  1,170  414  313  148  134  120  9,264  9,064  200  Greater than or equal to 680 and less than 740 8,530  60  4,552  1,659  1,126  466  314  353  28,347  28,155  192  Greater than or equal to 740 37,164  94  15,876  8,642  6,465  2,679  1,573  1,835  40,810  40,762  48  Other internal credit    metrics (2,3) 54,868  54,173  283  53  77  75  63  144  —  —  —  Total credit card and other    consumer $ 103,560  $ 54,354  $ 22,060  $ 10,883  $ 8,110  $ 3,447  $ 2,185  $ 2,521  $ 81,438  $ 80,838  $ 600  (1)Represents TDRs that were modified into term loans. (2)Other internal credit metrics may include delinquency status, geography or other factors. (3)Direct/indirect consumer includes $54.2 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 December 31, 2021. Commercial – Credit Quality Indicators By Vintage (1, 2) Term Loans Amortized Cost Basis by Origination Year (Dollars in millions) Total as of December 31,  2021 2021 2020 2019 2018 2017 Prior Revolving Loans U.S. Commercial Risk ratings         Pass rated $ 315,618  $ 55,862  $ 25,012  $ 23,373  $ 11,439  $ 10,426  $ 23,877  $ 165,629  Reservable criticized 10,318  598  687  1,308  1,615  514  1,072  4,524  Total U.S. Commercial $ 325,936  $ 56,460  $ 25,699  $ 24,681  $ 13,054  $ 10,940  $ 24,949  $ 170,153  Non-U.S. Commercial Risk ratings Pass rated $ 110,787  $ 25,749  $ 8,703  $ 7,133  $ 4,521  $ 3,016  $ 3,062  $ 58,603  Reservable criticized 2,479  223  324  487  275  257  216  697  Total Non-U.S. Commercial $ 113,266  $ 25,972  $ 9,027  $ 7,620  $ 4,796  $ 3,273  $ 3,278  $ 59,300  Commercial Real Estate Risk ratings Pass rated $ 55,511  $ 14,402  $ 7,244  $ 11,237  $ 5,710  $ 3,326  $ 6,831  $ 6,761  Reservable criticized 7,498  277  990  2,237  1,710  596  1,464  224  Total Commercial Real Estate $ 63,009  $ 14,679  $ 8,234  $ 13,474  $ 7,420  $ 3,922  $ 8,295  $ 6,985  Commercial Lease Financing Risk ratings Pass rated $ 14,438  $ 3,280  $ 2,485  $ 2,427  $ 2,030  $ 1,741  $ 2,475  $ —  Reservable criticized 387  25  18  91  67  48  138  —  Total Commercial Lease Financing $ 14,825  $ 3,305  $ 2,503  $ 2,518  $ 2,097  $ 1,789  $ 2,613  $ —  U.S. Small Business Commercial (3) Risk ratings Pass rated $ 11,618  $ 4,257  $ 2,922  $ 1,059  $ 763  $ 623  $ 1,853  $ 141  Reservable criticized 433  12  29  91  87  64  147  3  Total U.S. Small Business Commercial $ 12,051  $ 4,269  $ 2,951  $ 1,150  $ 850  $ 687  $ 2,000  $ 144   Total $ 529,087  $ 104,685  $ 48,414  $ 49,443  $ 28,217  $ 20,611  $ 41,135  $ 236,582  (1) Excludes $7.2 billion of loans accounted for under the fair value option at December 31, 2021. (2)     Includes $16 million of loans that converted from revolving to term loans. (3)     Excludes U.S. Small Business Card loans of $7.1 billion. Refreshed FICO scores for this portfolio are $192 million for less than 620; $618 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 $4.4 billion greater than or equal to 740. 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 December 31, 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 Term Loans by Origination Year (Dollars in millions) Total as of  December 31,  2020 2020 2019 2018 2017 2016 Prior Total Residential Mortgage Refreshed LTV Less than or equal to 90 percent $ 207,389  $ 68,907  $ 43,771  $ 14,658  $ 21,589  $ 22,967  $ 35,497  Greater than 90 percent but less than or equal to 100 percent 3,138  1,970  684  128  70  96  190  Greater than 100 percent 1,210  702  174  47  39  37  211  Fully-insured loans 11,818  3,826  2,014  370  342  1,970  3,296  Total Residential Mortgage $ 223,555  $ 75,405  $ 46,643  $ 15,203  $ 22,040  $ 25,070  $ 39,194  Total Residential Mortgage Refreshed FICO score Less than 620 $ 2,717  $ 823  $ 177  $ 139  $ 170  $ 150  $ 1,258  Greater than or equal to 620 and less than 680 5,462  1,804  666  468  385  368  1,771  Greater than or equal to 680 and less than 740 25,349  8,533  4,679  1,972  2,427  2,307  5,431  Greater than or equal to 740 178,209  60,419  39,107  12,254  18,716  20,275  27,438  Fully-insured loans 11,818  3,826  2,014  370  342  1,970  3,296  Total Residential Mortgage $ 223,555  $ 75,405  $ 46,643  $ 15,203  $ 22,040  $ 25,070  $ 39,194  Home Equity - Credit Quality Indicators Total Home Equity Loans and Reverse Mortgages (1) Revolving Loans Revolving Loans Converted to Term Loans (Dollars in millions) December 31, 2020 Total Home Equity Refreshed LTV Less than or equal to 90 percent $ 33,447  $ 1,919  $ 22,639  $ 8,889  Greater than 90 percent but less than or equal to 100 percent 351  126  94  131  Greater than 100 percent 513  172  118  223  Total Home Equity $ 34,311  $ 2,217  $ 22,851  $ 9,243  Total Home Equity Refreshed FICO score Less than 620 $ 1,082  $ 250  $ 244  $ 588  Greater than or equal to 620 and less than 680 1,798  263  568  967  Greater than or equal to 680 and less than 740 5,762  556  2,905  2,301  Greater than or equal to 740 25,669  1,148  19,134  5,387  Total Home Equity $ 34,311  $ 2,217  $ 22,851  $ 9,243  (1)Includes reverse mortgages of $1.3 billion and home equity loans of $885 million 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 December 31, 2020 Revolving Loans 2020 2019 2018 2017 2016 Prior Total Credit Card as of December 31, 2020 Revolving Loans Revolving Loans Converted to Term Loans (1) Refreshed FICO score Less than 620 $ 959  $ 19  $ 111  $ 200  $ 175  $ 243  $ 148  $ 63  $ 4,018  $ 3,832  $ 186  Greater than or equal to 620 and less than 680 2,143  20  653  559  329  301  176  105  9,419  9,201  218  Greater than or equal to 680 and less than 740 7,431  80  2,848  2,015  1,033  739  400  316  27,585  27,392  193  Greater than or equal to 740 36,064  120  12,540  10,588  5,869  3,495  1,781  1,671  37,686  37,642  44  Other internal credit    metrics (2, 3) 44,766  44,098  74  115  84  67  52  276  —  —  —  Total credit card and other    consumer $ 91,363  $ 44,337  $ 16,226  $ 13,477  $ 7,490  $ 4,845  $ 2,557  $ 2,431  $ 78,708  $ 78,067  $ 641  (1)Represents TDRs that were modified into term loans. (2)Other internal credit metrics may include delinquency status, geography or other factors. (3)Direct/indirect consumer includes $44.1 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 December 31, 2020. Commercial – Credit Quality Indicators By Vintage (1, 2) Term Loans Amortized Cost Basis by Origination Year (Dollars in millions) Total as of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans U.S. Commercial Risk ratings         Pass rated $ 268,812  $ 33,456  $ 33,305  $ 17,363  $ 14,102  $ 7,420  $ 21,784  $ 141,382  Reservable criticized 19,916  2,524  2,542  2,689  854  698  1,402  9,207  Total U.S. Commercial $ 288,728  $ 35,980  $ 35,847  $ 20,052  $ 14,956  $ 8,118  $ 23,186  $ 150,589  Non-U.S. Commercial Risk ratings Pass rated $ 85,914  $ 16,301  $ 11,396  $ 7,451  $ 5,037  $ 1,674  $ 2,194  $ 41,861  Reservable criticized 4,546  914  572  492  436  138  259  1,735  Total Non-U.S. Commercial $ 90,460  $ 17,215  $ 11,968  $ 7,943  $ 5,473  $ 1,812  $ 2,453  $ 43,596  Commercial Real Estate Risk ratings Pass rated $ 50,260  $ 8,429  $ 14,126  $ 8,228  $ 4,599  $ 3,299  $ 6,542  $ 5,037  Reservable criticized 10,104  933  2,558  2,115  1,582  606  1,436  874  Total Commercial Real Estate $ 60,364  $ 9,362  $ 16,684  $ 10,343  $ 6,181  $ 3,905  $ 7,978  $ 5,911  Commercial Lease Financing Risk ratings Pass rated $ 16,384  $ 3,083  $ 3,242  $ 2,956  $ 2,532  $ 1,703  $ 2,868  $ —  Reservable criticized 714  117  117  132  81  88  179  —  Total Commercial Lease Financing $ 17,098  $ 3,200  $ 3,359  $ 3,088  $ 2,613  $ 1,791  $ 3,047  $ —  U.S. Small Business Commercial (3) Risk ratings Pass rated $ 28,786  $ 24,539  $ 1,121  $ 837  $ 735  $ 527  $ 855  $ 172  Reservable criticized 1,148  76  239  210  175  113  322  13  Total U.S. Small Business Commercial $ 29,934  $ 24,615  $ 1,360  $ 1,047  $ 910  $ 640  $ 1,177  $ 185   Total $ 486,584  $ 90,372  $ 69,218  $ 42,473  $ 30,133  $ 16,266  $ 37,841  $ 200,281  (1) Excludes $5.9 billion of loans accounted for under the fair value option at December 31, 2020. (2)     Includes $58 million of loans that converted from revolving to term loans. (3)     Excludes U.S. Small Business Card loans of $6.5 billion. Refreshed FICO scores for this portfolio are $265 million for less than 620; $582 million for greater than or equal to 620 and less than 680; $1.7 billion for greater than or equal to 680 and less than 740; and $3.9 billion greater than or equal to 740. During 2021, commercial credit quality showed signs of stabilization as the economy continued to recover. Commercial reservable criticized utilized exposure decreased to $22.4 billion at December 31, 2021 from $38.7 billion (to 3.91 percent from 7.31 percent of total commercial reservable utilized exposure) at December 31, 2020, which was broad-based across industries. 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 $306 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 December 31, 2021, of which $87 million were classified as nonperforming and $55 million were loans fully insured. At December 31, 2021 and 2020, 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 $101 million and $123 million at December 31, 2021 and 2020. The carrying value of consumer real estate loans, including fully-insured loans, for which formal foreclosure proceedings were in process at December 31, 2021 and 2020 was $1.1 billion and $1.2 billion. During 2021 and 2020, the Corporation reclassified $64 million and $182 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 table below presents the December 31, 2021, 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 2021, 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 2021, 2020 and 2019 Unpaid Principal Balance Carrying Value Pre-Modification Interest Rate Post-Modification Interest Rate (1) (Dollars in millions) December 31, 2021 Residential mortgage $ 891  $ 788  3.48  % 3.38  % Home equity 107  77  3.60  3.59  Total $ 998  $ 865  3.49  3.41  December 31, 2020 Residential mortgage $ 732  $ 646  3.66  % 3.59  % Home equity 87  69  3.67  3.61  Total $ 819  $ 715  3.66  3.59  December 31, 2019 Residential mortgage $ 464  $ 377  4.19  % 4.13  % Home equity 141  101  5.04  4.31  Total $ 605  $ 478  4.39  4.17  (1)The post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period. The table below presents the December 31, 2021, 2020 and 2019 carrying value for consumer real estate loans that were modified in a TDR during 2021, 2020 and 2019, by type of modification. Consumer Real Estate – Modification Programs TDRs Entered into During (Dollars in millions) 2021 2020 2019 Modifications under government programs $ 4  $ 13  $ 35  Modifications under proprietary programs 774  570  174  Loans discharged in Chapter 7 bankruptcy (1) 33  53  68  Trial modifications 54  79  201  Total modifications $ 865  $ 715  $ 478  (1)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 2021, 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 (Dollars in millions) 2021 2020 2019 Modifications under government programs $ 4  $ 16  $ 26  Modifications under proprietary programs 128  51  88  Loans discharged in Chapter 7 bankruptcy (1) 9  19  30  Trial modifications (2) 19  54  57  Total modifications $ 160  $ 140  $ 201  (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 The Corporation seeks to assist customers who 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 December 31, 2021, 2020 and 2019 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during 2021, 2020 and 2019. Credit Card and Other Consumer – TDRs Entered into During 2021, 2020 and 2019   Unpaid Principal Balance Carrying Value (1) Pre-Modification Interest Rate Post-Modification Interest Rate (Dollars in millions) December 31, 2021 Credit card $ 237  $ 248  18.45  % 4.09  % Direct/Indirect consumer 23  16  5.88  5.88  Total $ 260  $ 264  17.68  4.20  December 31, 2020 Credit card $ 269  $ 277  18.16  % 5.63  % Direct/Indirect consumer 52  37  5.83  5.83  Total $ 321  $ 314  16.70  5.65  December 31, 2019 Credit card $ 340  $ 355  19.18  % 5.35  % Direct/Indirect consumer 40  21  5.23  5.21  Total $ 380  $ 376  18.42  5.34  (1)Includes accrued interest and fees. The table below presents the December 31, 2021, 2020 and 2019 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during 2021, 2020 and 2019, by program type. Credit Card and Other Consumer – TDRs by Program Type at December 31 (1) (Dollars in millions) 2021 2020 2019 Internal programs $ 214  $ 225  $ 247  External programs 44  73  108  Other 6  16  21  Total $ 264  $ 314  $ 376  (1) Includes accrued interest and fees. 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 10 percent of new credit card TDRs and 18 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. During 2021, the carrying value of the Corporation’s commercial loans that were modified as TDRs was $1.3 billion compared to $1.2 billion and $1.7 billion for 2020 and 2019. At December 31, 2021, 2020 and 2019, the Corporation had commitments to lend $283 million, $402 million and $445 million to commercial borrowers whose loans were classified as TDRs. The balance of commercial TDRs in payment default was $262 million, $218 million and $207 million at December 31, 2021, 2020 and 2019. Loans Held-for-sale The Corporation had LHFS of $15.6 billion and $9.2 billion at December 31, 2021 and 2020. Cash and non-cash proceeds from sales and paydowns of loans originally classified as LHFS were $43.6 billion, $20.1 billion and $30.6 billion for 2021, 2020 and 2019, respectively. Cash used for originations and purchases of LHFS totaled $37.3 billion, $19.7 billion and $28.9 billion for 2021, 2020 and 2019, respectively. Accrued Interest Receivable Accrued interest receivable for loans and leases and loans held-for-sale at December 31, 2021 and 2020 was $2.2 billion and $2.4 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 2021 and 2020, the Corporation reversed $446 million and $512 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 2021 and 2020, interest and fee income reversed at the time the loans were classified as nonperforming was not significant. For more information on the Corporation's nonperforming loan policies, see Note 1 – Summary of Significant Accounting Principles. 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 on January 1, 2020, 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 credit losses is estimated using quantitative and qualitative methods that consider a variety of factors, such as historical loss experience, the current credit quality of the portfolio and an economic outlook over the life of the loan. Qualitative reserves cover losses that are expected but, in the Corporation's assessment, may not be adequately reflected in the quantitative methods or the economic assumptions. The Corporation incorporates forward-looking information through the use of several macroeconomic scenarios in determining the weighted economic outlook over the forecasted life of the assets. These scenarios include key macroeconomic variables such as gross domestic product, unemployment rate, real estate prices and corporate bond spreads. The scenarios that are chosen each quarter and the weighting given to each scenario depend on a variety of factors including recent economic events, leading economic indicators, internal and third-party economist views, and industry trends. The December 31, 2021 estimate for allowance for credit losses was based on various economic outlooks that included a baseline scenario, which is derived from consensus estimates, a downside scenario that assumed a significantly longer period until full economic recovery, a tail risk scenario similar to the severely adverse scenario used in stress testing, a scenario to account for inflationary risk and higher interest rates and an upside scenario to consider the potential for improvement in the consensus outlooks. The weighted economic outlook assumes that the U.S. average unemployment rate will be just above five percent by the fourth quarter of 2022 and slowly declines to just under five percent by the fourth quarter of 2023. Additionally, in this economic outlook, U.S. gross domestic product is forecasted to grow at 2.1 percent and 1.9 percent year-over-year in the fourth quarters of 2022 and 2023. For comparison, as of December 31, 2020, the weighted macroeconomic outlook for the U.S. average unemployment rate was forecasted at 6.6 percent, 5.5 percent and 5.0 percent in the fourth quarters of 2021, 2022 and 2023, respectively, and the weighted macroeconomic outlook for U.S. GDP was forecasted to grow at 2.5 percent, 2.4 percent and 2.1 percent year-over-year in the fourth quarters of 2021, 2022 and 2023, respectively. The allowance for credit losses considered the impact of enacted government stimulus measures and continued to factor in the uncertainty resulting from the unprecedented nature of the current public health crisis and risks that may prevent a full economic recovery. While there has been improvement across the U.S. economy, the Corporation continues to factor into its allowance for credit losses an estimated impact from higher-risk segments that included leveraged loans and industries such as travel and entertainment, which have been adversely impacted by the effects of the pandemic. The allowance for credit losses at December 31, 2021 was $13.8 billion, a decrease of $6.8 billion compared to December 31, 2020. The decrease in the allowance for credit losses was primarily driven by improvements in the macroeconomic outlook and credit quality. The change in the allowance for credit losses was comprised of a net decrease of $6.4 billion in the allowance for loan and lease losses and a $422 million decrease in the reserve for unfunded lending commitments. The decrease in the allowance for credit losses was attributed to $342 million in the consumer real estate portfolio, $2.7 billion in the credit card and other consumer portfolio, and $3.8 billion in the commercial portfolio. Similarly, the provision for credit losses improved $15.9 billion to a benefit of $4.6 billion in 2021 compared to provision expense of $11.3 billion and $3.6 billion in 2020 and 2019. The benefit in 2021 was primarily driven by improvements in the macroeconomic outlook and credit quality. Outstanding loans and leases excluding loans accounted for under the fair value option increased $50.1 billion in 2021 driven by commercial loans, which increased $60.4 billion, excluding small business, primarily driven by Global Markets. Consumer loans increased $7.0 billion primarily driven by securities-based lending, partially offset by lower consumer real estate due to prepayments in a low rate environment. The changes in the allowance for credit losses, including net charge-offs and provision for loan and lease losses, are detailed in the following table. Consumer Real Estate Credit Card and  Other Consumer Commercial Total (Dollars in millions) 2021 Allowance for loan and lease losses, January 1 $ 858  $ 9,213  $ 8,731  $ 18,802  Loans and leases charged off (78) (3,000) (719) (3,797) Recoveries of loans and leases previously charged off 225  1,006  323  1,554  Net charge-offs 147  (1,994) (396) (2,243) Provision for loan and lease losses (449) (744) (2,980) (4,173) Other 1  1  (1) 1  Allowance for loan and lease losses, December 31 557  6,476  5,354  12,387  Reserve for unfunded lending commitments, January 1 137  —  1,741  1,878  Provision for unfunded lending commitments (41) —  (380) (421) Other —  —  (1) (1) Reserve for unfunded lending commitments, December 31 96  —  1,360  1,456  Allowance for credit losses, December 31 $ 653  $ 6,476  $ 6,714  $ 13,843  2020 Allowance for loan and lease losses, January 1 $ 440  $ 7,430  $ 4,488  $ 12,358  Loans and leases charged off (98) (3,646) (1,675) (5,419) Recoveries of loans and leases previously charged off 201  891  206  1,298  Net charge-offs 103  (2,755) (1,469) (4,121) Provision for loan and lease losses 307  4,538  5,720  10,565  Other 8  —  (8) —  Allowance for loan and lease losses, December 31 858  9,213  8,731  18,802  Reserve for unfunded lending commitments, January 1 119  —  1,004  1,123  Provision for unfunded lending commitments 18  —  737  755  Reserve for unfunded lending commitments, December 31 137  —  1,741  1,878  Allowance for credit losses, December 31 $ 995  $ 9,213  $ 10,472  $ 20,680  2019 Allowance for loan and lease losses, January 1 $ 928  $ 3,874  $ 4,799  $ 9,601  Loans and leases charged off (522) (4,302) (822) (5,646) Recoveries of loans and leases previously charged off 927  911  160  1,998  Net charge-offs 405  (3,391) (662) (3,648) Provision for loan and lease losses (680) 3,512  742  3,574  Other (1) (107) 1  (5) (111) Allowance for loan and lease losses, December 31 546  3,996  4,874  9,416  Reserve for unfunded lending commitments, January 1 —  —  797  797  Provision for unfunded lending commitments —  —  16  16  Reserve for unfunded lending commitments, December 31 —  —  813  813  Allowance for credit losses, December 31 $ 546  $ 3,996  $ 5,687  $ 10,229  (1)Primarily represents write-offs of purchased credit-impaired loans in 2019.