Outstanding Loans and Leases and Allowance for Credit Losses (Tables)

v3.22.2.2

Outstanding Loans and Leases and Allowance for Credit Losses (Tables)	9 Months Ended
	Sep. 30, 2022
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 September 30, 2022 and December 31, 2021. 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) September 30, 2022 Consumer real estate             Residential mortgage $ 905  $ 235  $ 1,014  $ 2,154  $ 226,908  $ 229,062  Home equity 79  27  232  338  26,507  26,845  Credit card and other consumer Credit card 393  262  547  1,202  86,094  87,296  Direct/Indirect consumer (2) 199  53  33  285  106,874  107,159  Other consumer —  —  —  —  171  171  Total consumer 1,576  577  1,826  3,979  446,554  450,533  Consumer loans accounted for under the fair value option (3)           $ 355  355  Total consumer loans and leases 1,576  577  1,826  3,979  446,554  355  450,888  Commercial U.S. commercial 519  327  447  1,293  354,077  355,370  Non-U.S. commercial 48  67  228  343  122,692  123,035  Commercial real estate (4) 299  36  74  409  67,543  67,952  Commercial lease financing 28  7  20  55  12,901  12,956  U.S. small business commercial (5) 196  143  253  592  17,177  17,769  Total commercial 1,090  580  1,022  2,692  574,390  577,082  Commercial loans accounted for under the fair value option (3)           4,496  4,496  Total commercial loans and leases 1,090  580  1,022  2,692  574,390  4,496  581,578  Total loans and leases (6) $ 2,666  $ 1,157  $ 2,848  $ 6,671  $ 1,020,944  $ 4,851  $ 1,032,466  Percentage of outstandings 0.26  % 0.11  % 0.28  % 0.65  % 98.88  % 0.47  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $173 million and nonperforming loans of $101 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $72 million and nonperforming loans of $98 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $427 million. Consumer real estate loans current or less than 30 days past due includes $1.7 billion, and direct/indirect consumer includes $29 million of nonperforming loans. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $50.7 billion, U.S. securities-based lending loans of $52.6 billion and non-U.S. consumer loans of $2.9 billion. (3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $74 million and home equity loans of $281 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.4 billion and non-U.S. commercial loans of $2.1 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 $63.9 billion and non-U.S. commercial real estate loans of $4.0 billion. (5)Includes Paycheck Protection Program loans. (6)Total outstandings includes loans and leases pledged as collateral of $13.3 billion. The Corporation also pledged $163.6 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, 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. (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 14 – Fair Value Measurements and Note 15 – 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.
Schedule of Financing Receivables, Non Accrual Status	The following table presents the Corporation’s nonperforming loans and leases, including nonperforming TDRs, and loans accruing past due 90 days or more at September 30, 2022 and December 31, 2021. Nonperforming loans held-for-sale (LHFS) are excluded from nonperforming loans and leases as they are recorded at either fair value or the lower of cost or fair value. For more information on the criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2021 Annual Report on Form 10-K. Credit Quality Nonperforming Loans and Leases Accruing Past Due 90 Days or More (Dollars in millions) September 30 2022 December 31 2021 September 30 2022 December 31 2021 Residential mortgage (1) $ 2,187  $ 2,284  $ 427  $ 634  With no related allowance (2) 1,942  1,950  —  —  Home equity (1) 532  630  —  —  With no related allowance (2) 394  414  —  —  Credit Card                      n/a               n/a 547  487  Direct/indirect consumer 41  75  27  11  Total consumer 2,760  2,989  1,001  1,132  U.S. commercial 640  825  300  171  Non-U.S. commercial 274  268  22  19  Commercial real estate 282  382  34  40  Commercial lease financing 11  80  12  8  U.S. small business commercial 16  23  252  87  Total commercial 1,223  1,578  620  325  Total nonperforming loans $ 3,983  $ 4,567  $ 1,621  $ 1,457  Percentage of outstanding loans and leases 0.39  % 0.47  % 0.16  % 0.15  % (1)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At September 30, 2022 and December 31, 2021 residential mortgage includes $321 million and $444 million of loans on which interest had been curtailed by the Federal Housing Administration (FHA), and therefore were no longer accruing interest, although principal was still insured, and $106 million and $190 million of loans on which interest was still accruing. (2)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
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 September 30, 2022, 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 September 30,  2022 2022 2021 2020 2019 2018 Prior Residential Mortgage Refreshed LTV       Less than or equal to 90 percent $ 215,122  $ 35,371  $ 82,564  $ 37,941  $ 19,347  $ 5,900  $ 33,999  Greater than 90 percent but less than or equal to 100 percent 1,446  803  513  87  15  9  19  Greater than 100 percent 562  331  119  39  18  10  45  Fully-insured loans 11,932  511  3,737  3,173  977  165  3,369  Total Residential Mortgage $ 229,062  $ 37,016  $ 86,933  $ 41,240  $ 20,357  $ 6,084  $ 37,432  Residential Mortgage Refreshed FICO score Less than 620 $ 2,054  $ 317  $ 489  $ 343  $ 108  $ 86  $ 711  Greater than or equal to 620 and less than 680 4,933  903  1,356  836  371  240  1,227  Greater than or equal to 680 and less than 740 24,594  4,303  8,441  4,372  2,159  812  4,507  Greater than or equal to 740 185,549  30,982  72,910  32,516  16,742  4,781  27,618  Fully-insured loans 11,932  511  3,737  3,173  977  165  3,369  Total Residential Mortgage $ 229,062  $ 37,016  $ 86,933  $ 41,240  $ 20,357  $ 6,084  $ 37,432  Home Equity - Credit Quality Indicators Total Home Equity Loans and Reverse Mortgages (1) Revolving Loans Revolving Loans Converted to Term Loans (Dollars in millions) September 30, 2022 Home Equity Refreshed LTV       Less than or equal to 90 percent $ 26,662  $ 1,406  $ 19,805  $ 5,451  Greater than 90 percent but less than or equal to 100 percent 68  25  24  19  Greater than 100 percent 115  41  37  37  Total Home Equity $ 26,845  $ 1,472  $ 19,866  $ 5,507  Home Equity Refreshed FICO score Less than 620 $ 689  $ 177  $ 175  $ 337  Greater than or equal to 620 and less than 680 1,210  167  475  568  Greater than or equal to 680 and less than 740 4,228  355  2,550  1,323  Greater than or equal to 740 20,718  773  16,666  3,279  Total Home Equity $ 26,845  $ 1,472  $ 19,866  $ 5,507  (1)Includes reverse mortgages of $1.2 billion and home equity loans of $450 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 September 30, 2022 Revolving Loans 2022 2021 2020 2019 2018 Prior Total Credit Card as of September 30, 2022 Revolving Loans Revolving Loans Converted to Term Loans (1) Refreshed FICO score     Less than 620 $ 730  $ 12  $ 140  $ 262  $ 108  $ 90  $ 48  $ 70  $ 3,442  $ 3,277  $ 165  Greater than or equal to 620 and less than 680 2,381  12  832  867  293  177  81  119  10,134  9,950  184  Greater than or equal to 680 and less than 740 8,723  53  3,290  3,036  1,116  619  254  355  30,181  30,012  169  Greater than or equal to 740 38,988  86  12,944  12,425  6,354  3,675  1,505  1,999  43,539  43,496  43  Other internal credit    metrics (2,3) 56,337  55,534  168  292  79  56  39  169  —  —  —  Total credit card and other    consumer $ 107,159  $ 55,697  $ 17,374  $ 16,882  $ 7,950  $ 4,617  $ 1,927  $ 2,712  $ 87,296  $ 86,735  $ 561  (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 $55.5 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 September 30, 2022. Commercial – Credit Quality Indicators By Vintage (1) Term Loans Amortized Cost Basis by Origination Year (Dollars in millions) Total as of September 30, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans U.S. Commercial Risk ratings         Pass rated $ 346,130  $ 51,059  $ 42,706  $ 19,446  $ 17,967  $ 9,431  $ 31,503  $ 174,018  Reservable criticized 9,240  176  636  665  831  1,320  918  4,694  Total U.S. Commercial $ 355,370  $ 51,235  $ 43,342  $ 20,111  $ 18,798  $ 10,751  $ 32,421  $ 178,712  Non-U.S. Commercial Risk ratings Pass rated $ 120,431  $ 19,045  $ 21,046  $ 5,827  $ 4,393  $ 2,964  $ 5,185  $ 61,971  Reservable criticized 2,604  60  387  241  315  194  483  924  Total Non-U.S. Commercial $ 123,035  $ 19,105  $ 21,433  $ 6,068  $ 4,708  $ 3,158  $ 5,668  $ 62,895  Commercial Real Estate Risk ratings Pass rated $ 63,433  $ 11,573  $ 13,619  $ 6,313  $ 9,474  $ 5,080  $ 9,066  $ 8,308  Reservable criticized 4,519  9  366  567  1,513  888  1,065  111  Total Commercial Real Estate $ 67,952  $ 11,582  $ 13,985  $ 6,880  $ 10,987  $ 5,968  $ 10,131  $ 8,419  Commercial Lease Financing Risk ratings Pass rated $ 12,720  $ 1,583  $ 2,699  $ 2,076  $ 2,048  $ 1,404  $ 2,910  $ —  Reservable criticized 236  5  23  14  76  47  71  —  Total Commercial Lease Financing $ 12,956  $ 1,588  $ 2,722  $ 2,090  $ 2,124  $ 1,451  $ 2,981  $ —  U.S. Small Business Commercial (2) Risk ratings Pass rated $ 8,910  $ 1,323  $ 2,174  $ 1,688  $ 907  $ 657  $ 2,030  $ 131  Reservable criticized 313  3  21  41  75  53  117  3  Total U.S. Small Business Commercial $ 9,223  $ 1,326  $ 2,195  $ 1,729  $ 982  $ 710  $ 2,147  $ 134   Total $ 568,536  $ 84,836  $ 83,677  $ 36,878  $ 37,599  $ 22,038  $ 53,348  $ 250,160  (1) Excludes $4.5 billion of loans accounted for under the fair value option at September 30, 2022. (2)     Excludes U.S. Small Business Card loans of $8.5 billion. Refreshed FICO scores for this portfolio are $244 million for less than 620; $786 million for greater than or equal to 620 and less than 680; $2.3 billion for greater than or equal to 680 and less than 740; and $5.2 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, 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 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  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 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  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) 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 (2) 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) 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.
Troubled Debt Restructurings on Financing Receivables	The table below presents the September 30, 2022 and 2021 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 nine months ended September 30, 2022 and 2021. 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 Nine Months Ended September 30, 2022 and 2021 Unpaid Principal Balance Carrying Value Pre-Modification Interest Rate Post-Modification Interest Rate (1) Unpaid Principal Balance Carrying Value Pre-Modification Interest Rate Post-Modification Interest Rate (1) (Dollars in millions) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Residential mortgage $ 420  $ 379  3.35  % 3.34  % $ 1,036  $ 929  3.50  % 3.36  % Home equity 99  86  4.58  4.83  216  176  4.20  4.31  Total $ 519  $ 465  3.58  3.62  $ 1,252  $ 1,105  3.62  3.52  Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Residential mortgage $ 451  $ 399  3.52  % 3.49  % $ 832  $ 742  3.49  % 3.44  % Home equity 61  45  3.51  3.51  97  73  3.56  3.58  Total $ 512  $ 444  3.52  3.49  $ 929  $ 815  3.50  3.46  (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 September 30, 2022 and 2021 carrying value for consumer real estate loans that were modified in a TDR during the three and nine months ended September 30, 2022 and 2021, by type of modification. Consumer Real Estate – Modification Programs TDRs Entered into During the Three Months Ended September 30 Nine Months Ended September 30 (Dollars in millions) 2022 2021 2022 2021 Modifications under government programs $ —  $ —  $ —  $ 4  Modifications under proprietary programs 420  417  999  740  Loans discharged in Chapter 7 bankruptcy (1) 4  9  12  29  Trial modifications 41  18  94  42  Total modifications $ 465  $ 444  $ 1,105  $ 815  (1)Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. The following table presents the carrying value of consumer real estate loans that entered into payment default during the three and nine months ended September 30, 2022 and 2021 that were modified in a TDR during the 12 months preceding payment default. A payment default for consumer real estate TDRs is recognized when a borrower has missed three monthly payments (not necessarily consecutively) since modification. Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months Three Months Ended September 30 Nine Months Ended September 30 (Dollars in millions) 2022 2021 2022 2021 Modifications under government programs $ —  $ 1  $ —  $ 3  Modifications under proprietary programs 63  35  135  80  Loans discharged in Chapter 7 bankruptcy (1) 1  1  2  6  Trial modifications (2) 8  3  19  15  Total modifications $ 72  $ 40  $ 156  $ 104  (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. The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the September 30, 2022 and 2021 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during the three and nine months ended September 30, 2022 and 2021. Credit Card and Other Consumer – TDRs Entered into During the Three and Nine Months Ended September 30, 2022 and 2021   Unpaid Principal Balance Carrying Value (1) Pre-Modification Interest Rate Post-Modification Interest Rate Unpaid Principal Balance Carrying Value (1) Pre-Modification Interest Rate Post-Modification Interest Rate (Dollars in millions) Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Credit card $ 86  $ 90  21.17  % 3.80  % $ 198  $ 206  21.02  % 3.82  % Direct/Indirect consumer 2  2  5.65  5.65  5  4  5.48  5.48  Total $ 88  $ 92  20.87  3.83  $ 203  $ 210  20.69  3.86  Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 Credit card $ 66  $ 71  18.48  % 3.71  % $ 189  $ 200  18.47  % 4.26  % Direct/Indirect consumer 4  2  5.20  5.20  13  8  5.53  5.53  Total $ 70  $ 73  18.06  3.76  $ 202  $ 208  17.99  4.31  (1)Includes accrued interest and fees. The table below presents the September 30, 2022 and 2021 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during the three and nine months ended September 30, 2022 and 2021 by program type. Credit Card and Other Consumer – TDRs by Program Type (1) TDRs Entered into During the Three Months Ended September 30 TDRs Entered into During the Nine Months Ended September 30 (Dollars in millions) 2022 2021 2022 2021 Internal programs $ 77  $ 60  $ 174  $ 166  External programs 13  11  32  37  Other 2  2  4  5  Total $ 92  $ 73  $ 210  $ 208  (1) Includes accrued interest and fees.
Changes in the Allowance for Credit Losses	The changes in the allowance for credit losses, including net charge-offs and provision for loan and lease losses, are detailed in the table below. Consumer Real Estate Credit Card and  Other Consumer Commercial Total (Dollars in millions) Three Months Ended September 30, 2022 Allowance for loan and lease losses, July 1 $ 396  $ 6,216  $ 5,361  $ 11,973  Loans and leases charged off (13) (696) (100) (809) Recoveries of loans and leases previously charged off 34  216  39  289  Net charge-offs 21  (480) (61) (520) Provision for loan and lease losses (37) 760  122  845  Other 4  —  —  4  Allowance for loan and lease losses, September 30 384  6,496  5,422  12,302  Reserve for unfunded lending commitments, July 1 79  —  1,382  1,461  Provision for unfunded lending commitments (1) —  54  53  Other —  —  1  1  Reserve for unfunded lending commitments, September 30 78  —  1,437  1,515  Allowance for credit losses, September 30 $ 462  $ 6,496  $ 6,859  $ 13,817  Three Months Ended September 30, 2021 Allowance for loan and lease losses, July 1 $ 597  $ 6,835  $ 6,663  $ 14,095  Loans and leases charged off (15) (626) (165) (806) Recoveries of loans and leases previously charged off 56  256  31  343  Net charge-offs 41  (370) (134) (463) Provision for loan and lease losses (85) 175  (565) (475) Other 2  (1) (3) (2) Allowance for loan and lease losses, September 30 555  6,639  5,961  13,155  Reserve for unfunded lending commitments, July 1 107  —  1,580  1,687  Provision for unfunded lending commitments (9) —  (140) (149) Reserve for unfunded lending commitments, September 30 98  —  1,440  1,538  Allowance for credit losses, September 30 $ 653  $ 6,639  $ 7,401  $ 14,693  (Dollars in millions) Nine Months Ended September 30, 2022 Allowance for loan and lease losses, January 1 $ 557  $ 6,476  $ 5,354  $ 12,387  Loans and leases charged off (196) (2,007) (284) (2,487) Recoveries of loans and leases previously charged off 195  684  125  1,004  Net charge-offs (1) (1,323) (159) (1,483) Provision for loan and lease losses (179) 1,344  229  1,394  Other 7  (1) (2) 4  Allowance for loan and lease losses, September 30 384  6,496  5,422  12,302  Reserve for unfunded lending commitments, January 1 96  —  1,360  1,456  Provision for unfunded lending commitments (18) —  75  57  Other —  —  2  2  Reserve for unfunded lending commitments, September 30 78  —  1,437  1,515  Allowance for credit losses, September 30 $ 462  $ 6,496  $ 6,859  $ 13,817  Nine Months Ended September 30, 2021 Allowance for loan and lease losses, January 1 $ 858  $ 9,213  $ 8,731  $ 18,802  Loans and leases charged off (60) (2,402) (591) (3,053) Recoveries of loans and leases previously charged off 170  757  245  1,172  Net charge-offs 110  (1,645) (346) (1,881) Provision for loan and lease losses (414) (929) (2,423) (3,766) Other 1  —  (1) —  Allowance for loan and lease losses, September 30 555  6,639  5,961  13,155  Reserve for unfunded lending commitments, January 1 137  —  1,741  1,878  Provision for unfunded lending commitments (39) —  (300) (339) Other —  —  (1) (1) Reserve for unfunded lending commitments, September 30 98  —  1,440  1,538  Allowance for credit losses, September 30 $ 653  $ 6,639  $ 7,401  $ 14,693