Outstanding Loans and Leases and Allowance for Credit Losses

v3.24.1.u1

Outstanding Loans and Leases and Allowance for Credit Losses	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 and December 31, 2023. 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) March 31, 2024 Consumer real estate             Residential mortgage $ 1,049  $ 261  $ 761  $ 2,071  $ 225,364  $ 227,435  Home equity 85  35  145  265  24,920  25,185  Credit card and other consumer Credit card 661  486  1,299  2,446  96,007  98,453  Direct/Indirect consumer (2) 297  91  82  470  102,379  102,849  Other consumer —  —  —  —  115  115  Total consumer 2,092  873  2,287  5,252  448,785  454,037  Consumer loans accounted for under the fair value option (3) $ 235  235  Total consumer loans and leases 2,092  873  2,287  5,252  448,785  235  454,272  Commercial U.S. commercial 553  80  248  881  361,863  362,744  Non-U.S. commercial 29  1  55  85  122,988  123,073  Commercial real estate (4) 403  319  684  1,406  70,246  71,652  Commercial lease financing 50  39  27  116  14,665  14,781  U.S. small business commercial 165  83  201  449  19,482  19,931  Total commercial 1,200  522  1,215  2,937  589,244  592,181  Commercial loans accounted for under the fair value option (3) 2,703  2,703  Total commercial loans and leases 1,200  522  1,215  2,937  589,244  2,703  594,884  Total loans and leases (5) $ 3,292  $ 1,395  $ 3,502  $ 8,189  $ 1,038,029  $ 2,938  $ 1,049,156  Percentage of outstandings 0.32  % 0.13  % 0.33  % 0.78  % 98.94  % 0.28  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $175 million and nonperforming loans of $167 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $72 million and nonperforming loans of $103 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $230 million and nonperforming loans of $676 million. Consumer real estate loans current or less than 30 days past due includes $1.6 billion, and direct/indirect consumer includes $46 million of nonperforming loans. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $54.1 billion, U.S. securities-based lending loans of $45.3 billion and non-U.S. consumer loans of $2.7 billion. (3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $62 million and home equity loans of $173 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $1.7 billion and non-U.S. commercial loans of $965 million. 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 $65.5 billion and non-U.S. commercial real estate loans of $6.2 billion. (5)Total outstandings includes loans and leases pledged as collateral of $32.8 billion. The Corporation also pledged $226.5 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, 2023 Consumer real estate             Residential mortgage $ 1,177  $ 302  $ 829  $ 2,308  $ 226,095  $ 228,403  Home equity 90  38  161  289  25,238  25,527  Credit card and other consumer           Credit card 680  515  1,224  2,419  99,781    102,200  Direct/Indirect consumer (2) 306  99  91  496  102,972    103,468  Other consumer  —  —  —  —  124    124  Total consumer 2,253  954  2,305  5,512  454,210  459,722  Consumer loans accounted for under the fair value option (3) $ 243  243  Total consumer loans and leases 2,253  954  2,305  5,512  454,210  243  459,965  Commercial               U.S. commercial 477  96  225  798  358,133    358,931  Non-U.S. commercial 86  21  64  171  124,410    124,581  Commercial real estate (4) 247  133  505  885  71,993    72,878  Commercial lease financing 44  8  24  76  14,778    14,854  U.S. small business commercial 166  89  184  439  18,758    19,197  Total commercial 1,020  347  1,002  2,369  588,072    590,441  Commercial loans accounted for under the fair value option (3) 3,326  3,326  Total commercial loans and leases 1,020  347  1,002  2,369  588,072  3,326  593,767  Total loans and leases (5) $ 3,273  $ 1,301  $ 3,307  $ 7,881  $ 1,042,282  $ 3,569  $ 1,053,732  Percentage of outstandings 0.31  % 0.12  % 0.31  % 0.75  % 98.91  % 0.34  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $198 million and nonperforming loans of $150 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $77 million and nonperforming loans of $102 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $252 million and nonperforming loans of $738 million. Consumer real estate loans current or less than 30 days past due includes $1.6 billion, and direct/indirect consumer includes $39 million of nonperforming loans. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $53.9 billion, U.S. securities-based lending loans of $46.0 billion and non-U.S. consumer loans of $2.8 billion. (3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $66 million and home equity loans of $177 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.2 billion and non-U.S. commercial loans of $1.2 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 $66.8 billion and non-U.S. commercial real estate loans of $6.1 billion. (5)Total outstandings includes loans and leases pledged as collateral of $33.7 billion. The Corporation also pledged $246.0 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 $8.5 billion and $8.7 billion at March 31, 2024 and December 31, 2023, providing full credit protection on residential mortgage loans that become severely delinquent. All of these loans are individually insured, and therefore the Corporation does not record an allowance for credit losses related to these loans. Nonperforming Loans and Leases Commercial nonperforming loans increased to $3.2 billion at March 31, 2024 from $2.8 billion at December 31, 2023 driven primarily by the commercial real estate office property type. Consumer nonperforming loans remained relatively unchanged at $2.7 billion at March 31, 2024. The following table presents the Corporation’s nonperforming loans and leases and loans accruing past due 90 days or more at March 31, 2024 and December 31, 2023. 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 2023 Annual Report on Form 10-K. Credit Quality Nonperforming Loans and Leases Accruing Past Due 90 Days or More (Dollars in millions) March 31 2024 December 31 2023 March 31 2024 December 31 2023 Residential mortgage (1) $ 2,112  $ 2,114  $ 230  $ 252  With no related allowance (2) 2,052  1,974  —  —  Home equity (1) 438  450  —  —  With no related allowance (2) 404  375  —  —  Credit Card             n/a             n/a 1,299  1,224  Direct/indirect consumer 147  148  2  2  Total consumer 2,697  2,712  1,531  1,478  U.S. commercial 720  636  106  51  Non-U.S. commercial 157  175  11  4  Commercial real estate 2,273  1,927  12  32  Commercial lease financing 16  19  13  7  U.S. small business commercial 20  16  199  184  Total commercial 3,186  2,773  341  278  Total nonperforming loans $ 5,883  $ 5,485  $ 1,872  $ 1,756  Percentage of outstanding loans and leases 0.56  % 0.52  % 0.18  % 0.17  % (1)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At March 31, 2024 and December 31, 2023 residential mortgage included $140 million and $156 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 $90 million and $96 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 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 to the Consolidated Financial Statements of the Corporation’s 2023 Annual Report on Form 10-K. Within the Consumer Real Estate portfolio segment, the primary credit quality indicators are refreshed loan-to-value (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 and gross charge-offs for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by year of origination, except for revolving loans and revolving loans that were modified into term loans, which are shown on an aggregate basis at March 31, 2024. Residential Mortgage – Credit Quality Indicators By Vintage Term Loans by Origination Year (Dollars in millions) Total as of March 31,  2024 2024 2023 2022 2021 2020 Prior Residential Mortgage Refreshed LTV       Less than or equal to 90 percent $ 213,881  $ 3,226  $ 14,662  $ 37,802  $ 75,271  $ 34,487  $ 48,433  Greater than 90 percent but less than or equal to 100 percent 2,089  145  657  913  271  51  52  Greater than 100 percent 821  88  261  310  88  28  46  Fully-insured loans 10,644  62  411  331  3,354  2,771  3,715  Total Residential Mortgage $ 227,435  $ 3,521  $ 15,991  $ 39,356  $ 78,984  $ 37,337  $ 52,246  Residential Mortgage Refreshed FICO score Less than 620 $ 2,437  $ 32  $ 132  $ 480  $ 611  $ 422  $ 760  Greater than or equal to 620 and less than 680 4,619  46  375  911  1,227  725  1,335  Greater than or equal to 680 and less than 740 22,432  314  1,857  4,272  6,605  3,645  5,739  Greater than or equal to 740 187,303  3,067  13,216  33,362  67,187  29,774  40,697  Fully-insured loans 10,644  62  411  331  3,354  2,771  3,715  Total Residential Mortgage $ 227,435  $ 3,521  $ 15,991  $ 39,356  $ 78,984  $ 37,337  $ 52,246  Gross charge-offs for the three months ended March 31, 2024 $ 8  $ —  $ 1  $ 1  $ 1  $ —  $ 5  Home Equity - Credit Quality Indicators Total Home Equity Loans and Reverse Mortgages (1) Revolving Loans Revolving Loans Converted to Term Loans (Dollars in millions) March 31, 2024 Home Equity Refreshed LTV       Less than or equal to 90 percent $ 25,045  $ 1,021  $ 20,252  $ 3,772  Greater than 90 percent but less than or equal to 100 percent 62  14  40  8  Greater than 100 percent 78  32  32  14  Total Home Equity $ 25,185  $ 1,067  $ 20,324  $ 3,794  Home Equity Refreshed FICO score Less than 620 $ 681  $ 121  $ 279  $ 281  Greater than or equal to 620 and less than 680 1,085  115  593  377  Greater than or equal to 680 and less than 740 4,258  228  3,142  888  Greater than or equal to 740 19,161  603  16,310  2,248  Total Home Equity $ 25,185  $ 1,067  $ 20,324  $ 3,794  Gross charge-offs for the three months ended March 31, 2024 $ 3  $ —  $ 1  $ 2  (1)Includes reverse mortgages of $740 million and home equity loans of $327 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 March 31, 2024 Revolving Loans 2024 2023 2022 2021 2020 Prior Total Credit Card as of March 31, 2024 Revolving Loans Revolving Loans Converted to Term Loans (1) Refreshed FICO score     Less than 620 $ 1,339  $ 11  $ 35  $ 371  $ 452  $ 318  $ 76  $ 76  $ 5,549  $ 5,199  $ 350  Greater than or equal to 620 and less than 680 2,441  11  168  894  715  436  106  111  11,304  11,006  298  Greater than or equal to 680 and less than 740 8,284  44  790  3,057  2,281  1,378  386  348  33,522  33,264  258  Greater than or equal to 740 42,130  68  5,144  15,089  10,772  6,601  2,306  2,150  48,078  48,022  56  Other internal credit    metrics (2,3) 48,655  48,035  51  62  174  70  44  219  —  —  —  Total credit card and other    consumer $ 102,849  $ 48,169  $ 6,188  $ 19,473  $ 14,394  $ 8,803  $ 2,918  $ 2,904  $ 98,453  $ 97,491  $ 962  Gross charge-offs for the three    months ended March 31, 2024 $ 102  $ 1  $ 1  $ 35  $ 33  $ 18  $ 4  $ 10  $ 1,045  $ 1,002  $ 43  (1)Represents loans that were modified into term loans. (2)Other internal credit metrics may include delinquency status, geography or other factors. (3)Direct/indirect consumer includes $48.0 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 March 31, 2024. Commercial – Credit Quality Indicators By Vintage (1) Term Loans Amortized Cost Basis by Origination Year (Dollars in millions) Total as of March 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans U.S. Commercial Risk ratings         Pass rated $ 350,445  $ 10,141  $ 39,257  $ 40,246  $ 25,040  $ 12,993  $ 41,671  $ 181,097  Reservable criticized 12,299  8  528  1,315  826  403  1,602  7,617  Total U.S. Commercial $ 362,744  $ 10,149  $ 39,785  $ 41,561  $ 25,866  $ 13,396  $ 43,273  $ 188,714  Gross charge-offs for the three months ended    March 31, 2024 $ 78  $ —  $ 6  $ 19  $ 2  $ 1  $ 5  $ 45  Non-U.S. Commercial Risk ratings Pass rated $ 121,292  $ 4,081  $ 15,918  $ 14,034  $ 13,960  $ 2,228  $ 8,105  $ 62,966  Reservable criticized 1,781  —  84  149  205  74  235  1,034  Total Non-U.S. Commercial $ 123,073  $ 4,081  $ 16,002  $ 14,183  $ 14,165  $ 2,302  $ 8,340  $ 64,000  Gross charge-offs for the three months ended    March 31, 2024 $ 1  $ —  $ —  $ —  $ —  $ —  $ —  $ 1  Commercial Real Estate Risk ratings Pass rated $ 62,850  $ 1,376  $ 4,836  $ 14,821  $ 11,404  $ 3,614  $ 16,355  $ 10,444  Reservable criticized 8,802  —  164  1,006  1,774  764  4,697  397  Total Commercial Real Estate $ 71,652  $ 1,376  $ 5,000  $ 15,827  $ 13,178  $ 4,378  $ 21,052  $ 10,841  Gross charge-offs for the three months ended    March 31, 2024 $ 304  $ —  $ —  $ —  $ —  $ 47  $ 237  $ 20  Commercial Lease Financing Risk ratings Pass rated $ 14,603  $ 859  $ 4,145  $ 2,796  $ 2,225  $ 1,318  $ 3,260  $ —  Reservable criticized 178  —  10  40  26  18  84  —  Total Commercial Lease Financing $ 14,781  $ 859  $ 4,155  $ 2,836  $ 2,251  $ 1,336  $ 3,344  $ —  Gross charge-offs for the three months ended    March 31, 2024 $ 1  $ —  $ —  $ —  $ 1  $ —  $ —  $ —  U.S. Small Business Commercial (2) Risk ratings Pass rated $ 9,227  $ 471  $ 1,878  $ 1,803  $ 1,482  $ 778  $ 2,378  $ 437  Reservable criticized 384  3  11  72  108  34  153  3  Total U.S. Small Business Commercial $ 9,611  $ 474  $ 1,889  $ 1,875  $ 1,590  $ 812  $ 2,531  $ 440  Gross charge-offs for the three months ended    March 31, 2024 $ 7  $ —  $ —  $ —  $ —  $ 3  $ 2  $ 2  Total $ 581,861  $ 16,939  $ 66,831  $ 76,282  $ 57,050  $ 22,224  $ 78,540  $ 263,995  Gross charge-offs for the three months ended    March 31, 2024 $ 391  $ —  $ 6  $ 19  $ 3  $ 51  $ 244  $ 68  (1)Excludes $2.7 billion of loans accounted for under the fair value option at March 31, 2024. (2)Excludes U.S. Small Business Card loans of $10.3 billion. Refreshed FICO scores for this portfolio are $597 million for less than 620; $1.1 billion for greater than or equal to 620 and less than 680; $2.9 billion for greater than or equal to 680 and less than 740; and $5.8 billion greater than or equal to 740. Excludes U.S. Small Business Card loans gross charge-offs of $111 million. 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 year of origination, except for revolving loans and revolving loans that were modified into term loans, which are shown on an aggregate basis at December 31, 2023. Residential Mortgage – Credit Quality Indicators By Vintage Term Loans by Origination Year (Dollars in millions) Total as of  December 31,  2023 2023 2022 2021 2020 2019 Prior Residential Mortgage Refreshed LTV Less than or equal to 90 percent $ 214,661  $ 15,224  $ 38,225  $ 76,229  $ 35,072  $ 17,432  $ 32,479  Greater than 90 percent but less than or equal to 100 percent 1,994  698  911  286  53  25  21  Greater than 100 percent 785  264  342  100  31  14  34  Fully-insured loans 10,963  540  350  3,415  2,834  847  2,977  Total Residential Mortgage $ 228,403  $ 16,726  $ 39,828  $ 80,030  $ 37,990  $ 18,318  $ 35,511  Residential Mortgage Refreshed FICO score Less than 620 $ 2,335  $ 115  $ 471  $ 589  $ 402  $ 136  $ 622  Greater than or equal to 620 and less than 680 4,671  359  919  1,235  777  296  1,085  Greater than or equal to 680 and less than 740 23,357  1,934  4,652  6,988  3,742  1,836  4,205  Greater than or equal to 740 187,077  13,778  33,436  67,803  30,235  15,203  26,622  Fully-insured loans 10,963  540  350  3,415  2,834  847  2,977  Total Residential Mortgage $ 228,403  $ 16,726  $ 39,828  $ 80,030  $ 37,990  $ 18,318  $ 35,511  Gross charge-offs for the year ended December 31, 2023 $ 67  $ —  $ 7  $ 12  $ 6  $ 2  $ 40  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, 2023 Home Equity Refreshed LTV Less than or equal to 90 percent $ 25,378  $ 1,051  $ 20,380  $ 3,947  Greater than 90 percent but less than or equal to 100 percent 61  17  35  9  Greater than 100 percent 88  35  36  17  Total Home Equity $ 25,527  $ 1,103  $ 20,451  $ 3,973  Home Equity Refreshed FICO score Less than 620 $ 654  $ 123  $ 253  $ 278  Greater than or equal to 620 and less than 680 1,107  118  589  400  Greater than or equal to 680 and less than 740 4,340  240  3,156  944  Greater than or equal to 740 19,426  622  16,453  2,351  Total Home Equity $ 25,527  $ 1,103  $ 20,451  $ 3,973  Gross charge-offs for the year ended December 31, 2023 $ 36  $ 4  $ 21  $ 11  (1)Includes reverse mortgages of $763 million and home equity loans of $340 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, 2023 Revolving Loans 2023 2022 2021 2020 2019 Prior Total Credit Card as of December 31, 2023 Revolving Loans Revolving Loans Converted to Term Loans (1) Refreshed FICO score Less than 620 $ 1,246  $ 11  $ 292  $ 428  $ 336  $ 85  $ 55  $ 39  $ 5,338  $ 5,030  $ 308  Greater than or equal to 620 and less than 680 2,506  11  937  799  501  121  73  64  11,623  11,345  278  Greater than or equal to 680 and less than 740 8,629  48  3,451  2,582  1,641  462  244  201  34,777  34,538  239  Greater than or equal to 740 41,656  74  16,761  11,802  7,643  2,707  1,417  1,252  50,462  50,410  52  Other internal credit    metrics (2, 3) 49,431  48,764  106  183  110  53  57  158  —  —  —  Total credit card and other    consumer $ 103,468  $ 48,908  $ 21,547  $ 15,794  $ 10,231  $ 3,428  $ 1,846  $ 1,714  $ 102,200  $ 101,323  $ 877  Gross charge-offs for the year    ended December 31, 2023 $ 233  $ 5  $ 32  $ 95  $ 53  $ 15  $ 10  $ 23  $ 3,133  $ 3,013  $ 120  (1)Represents loans that were modified into term loans. (2)Other internal credit metrics may include delinquency status, geography or other factors. (3)Direct/indirect consumer includes $48.8 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, 2023. Commercial – Credit Quality Indicators By Vintage (1) Term Loans Amortized Cost Basis by Origination Year (Dollars in millions) Total as of December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans U.S. Commercial Risk ratings         Pass rated $ 347,563  $ 41,842  $ 43,290  $ 27,738  $ 13,495  $ 11,772  $ 29,923  $ 179,503  Reservable criticized 11,368  278  1,316  708  363  537  1,342  6,824  Total U.S. Commercial $ 358,931  $ 42,120  $ 44,606  $ 28,446  $ 13,858  $ 12,309  $ 31,265  $ 186,327  Gross charge-offs for the year ended    December 31, 2023 $ 191  $ 5  $ 38  $ 29  $ 4  $ 2  $ 27  $ 86  Non-U.S. Commercial Risk ratings Pass rated $ 122,931  $ 17,053  $ 15,810  $ 15,256  $ 2,405  $ 2,950  $ 5,485  $ 63,972  Reservable criticized 1,650  50  184  294  90  158  74  800  Total Non-U.S. Commercial $ 124,581  $ 17,103  $ 15,994  $ 15,550  $ 2,495  $ 3,108  $ 5,559  $ 64,772  Gross charge-offs for the year ended    December 31, 2023 $ 37  $ —  $ —  $ 8  $ 7  $ 1  $ —  $ 21  Commercial Real Estate Risk ratings Pass rated $ 64,150  $ 4,877  $ 16,147  $ 11,810  $ 4,026  $ 7,286  $ 10,127  $ 9,877  Reservable criticized 8,728  134  749  1,728  782  2,132  2,794  409  Total Commercial Real Estate $ 72,878  $ 5,011  $ 16,896  $ 13,538  $ 4,808  $ 9,418  $ 12,921  $ 10,286  Gross charge-offs for the year ended    December 31, 2023 $ 254  $ 2  $ —  $ 4  $ —  $ 59  $ 189  $ —  Commercial Lease Financing Risk ratings Pass rated $ 14,688  $ 4,188  $ 3,077  $ 2,373  $ 1,349  $ 1,174  $ 2,527  $ —  Reservable criticized 166  9  22  46  16  32  41  —  Total Commercial Lease Financing $ 14,854  $ 4,197  $ 3,099  $ 2,419  $ 1,365  $ 1,206  $ 2,568  $ —  Gross charge-offs for the year ended    December 31, 2023 $ 2  $ —  $ —  $ 1  $ 1  $ —  $ —  $ —  U.S. Small Business Commercial (2) Risk ratings Pass rated $ 9,031  $ 1,886  $ 1,830  $ 1,550  $ 836  $ 721  $ 1,780  $ 428  Reservable criticized 384  6  64  95  40  63  113  3  Total U.S. Small Business Commercial $ 9,415  $ 1,892  $ 1,894  $ 1,645  $ 876  $ 784  $ 1,893  $ 431  Gross charge-offs for the year ended    December 31, 2023 $ 43  $ 1  $ 2  $ 2  $ 19  $ 3  $ 4  $ 12   Total $ 580,659  $ 70,323  $ 82,489  $ 61,598  $ 23,402  $ 26,825  $ 54,206  $ 261,816  Gross charge-offs for the year ended    December 31, 2023 $ 527  $ 8  $ 40  $ 44  $ 31  $ 65  $ 220  $ 119  (1) Excludes $3.3 billion of loans accounted for under the fair value option at December 31, 2023. (2) Excludes U.S. Small Business Card loans of $9.8 billion. Refreshed FICO scores for this portfolio are $530 million for less than 620; $1.1 billion for greater than or equal to 620 and less than 680; $2.7 billion for greater than or equal to 680 and less than 740; and $5.5 billion greater than or equal to 740. Excludes U.S. Small Business Card loans gross charge-offs of $317 million. During the three months ended March 31, 2024, commercial reservable criticized utilized exposure increased to $24.5 billion at March 31, 2024 from $23.3 billion (to 3.93 percent from 3.74 percent of total commercial reservable utilized exposure) at December 31, 2023, primarily driven by U.S. commercial. Loan Modifications to Borrowers in Financial Difficulty As part of its credit risk management, the Corporation may modify a loan agreement with a borrower experiencing financial difficulties through a refinancing or restructuring of the borrower’s loan agreement (modification programs). Effective January 1, 2023, the Corporation adopted the new accounting standard on loan modifications. Accordingly, March 31, 2024 balances presented in payment status tables represent loans that were modified over the last 12 months, and March 31, 2023 balances presented in payment status tables represent loans that were modified during the first quarter of 2023. Consumer Real Estate The following modification programs are offered for consumer real estate loans to borrowers experiencing financial difficulties. These modifications represented outstanding residential mortgage and home equity loans of 0.03 percent and 0.04 percent at March 31, 2024, compared to 0.09 percent and 0.15 percent at March 31, 2023. Forbearance and Other Payment Plans: Forbearance plans generally consist of the Corporation suspending the borrower’s payments for a defined period with those payments then due over a defined period of time or at the conclusion of the forbearance period. The aging status of a loan is generally frozen when it enters into a forbearance plan. At March 31, 2024, the amortized cost of residential mortgage loans that were modified through these plans during the three months ended March 31, 2024 and 2023 was $20 million and $158 million. The amortized cost of home equity loans that were modified through these plans during the same periods was $0 and $30 million. The weighted-average duration of the mortgage and home equity loan modifications was insignificant, ranging from 3 months to 9 months for the three months ended March 31, 2024 and 2023. If a borrower is unable to fulfill their obligations under the forbearance plans, they may be offered a trial offer or permanent modification. Trial Offer and Permanent Modifications: Trial offer for modification plans generally consist of the Corporation offering a borrower modified loan terms that reduce their contractual payments temporarily over a three-to-four-month trial period. At March 31, 2024 and 2023, the amortized cost of residential mortgage loans entering trial offer for modifications during the three months ended March 31, 2024 and 2023 was $53 million and $21 million. The amortized cost of home equity loans entering trial offer for modifications during both periods was $9 million. If the customer successfully makes the modified payments during the trial period and formally accepts the modified terms, the modified loan terms become permanent. Some borrowers may enter into permanent modifications without a trial period. In a permanent modification, the borrower’s payment terms are typically modified in more than one manner but generally include a term extension and an interest rate reduction. At times, the permanent modification may also include principal forgiveness and/or a deferral of past due principal and interest amounts to the end of the loan term. The combinations utilized are based on modifying the terms that give the borrower an improved ability to meet the contractual obligations. At March 31, 2024, the amortized cost of residential mortgage loans that were granted a permanent modification during the three months ended March 31, 2024 and 2023 was $58 million and $47 million. The amortized cost of home equity loans that were granted permanent modification during the same periods was $9 million and $10 million. The term extensions granted for residential mortgage and home equity permanent modifications vary widely and can be up to 30 years, but are mostly in the range of 1 to 20 years. The weighted-average term extension of permanent modifications for residential mortgage was 9.3 years and 7.7 years for the three months ended March 31, 2024 and 2023, while the weighted-average interest rate reduction was 1.28 percent and 1.50 percent. For the same periods, the weighted-average term extension of permanent modifications for home equity loans was 16.0 years and 12.1 years, while the weighted-average interest rate reduction was 2.84 percent and 2.37 percent. Principal forgiveness and payment deferrals were insignificant during the three months ended March 31, 2024 and 2023. For consumer real estate borrowers in financial difficulty that received a forbearance, trial or permanent modification, there were no commitments to lend additional funds at March 31, 2024 and 2023. The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. During the three months ended March 31, 2024 and 2023, modified residential mortgage and home equity loans that defaulted were insignificant. The table below provides aging information as of March 31, 2024 for consumer real estate loans that were modified over the last 12 months and as of March 31, 2023 for consumer real estate loans that were modified during the first quarter of 2023. Consumer Real Estate - Payment Status of Modifications to Borrowers in Financial Difficulty Current 30–89 Days Past Due 90+ Days Past Due Total (Dollars in millions) March 31, 2024 Residential mortgage $ 304  $ 78  $ 94  $ 476  Home equity 51  6  14  71  Total $ 355  $ 84  $ 108  $ 547  March 31, 2023 Residential mortgage $ 126  $ 49  $ 30  $ 205  Home equity 23  7  10  40  Total $ 149  $ 56  $ 40  $ 245  Consumer real estate foreclosed properties totaled $90 million and $83 million at March 31, 2024 and December 31, 2023. The carrying value of consumer real estate loans, including fully-insured loans, for which formal foreclosure proceedings were in process at March 31, 2024 and December 31, 2023, was $627 million and $633 million. During the three months ended March 31, 2024 and 2023, the Corporation reclassified $30 million and $37 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. Credit Card and Other Consumer Credit card and other consumer loans are primarily modified by placing the customer on a fixed payment plan with a significantly reduced fixed interest rate, with terms ranging from 6 months to 72 months. As of March 31, 2024, substantially all payment plans provided to customers had a 60-month term. In certain circumstances, the Corporation will forgive a portion of the outstanding balance if the borrower makes payments up to a set amount. The Corporation makes modifications directly with borrowers for loans held by the Corporation (internal programs) as well as through third-party renegotiation agencies that provide solutions to customers’ entire unsecured debt structures (external programs). The March 31, 2024 amortized cost of credit card and other consumer loans that were modified through these programs during the three months ended March 31, 2024 and 2023 was $231 million and $157 million. These modifications represented 0.11 percent and 0.08 percent of outstanding credit card and other consumer loans at March 31, 2024 and 2023. The financial effect of modifications resulted in a weighted-average interest rate reduction of 19.80 percent and 18.65 percent, and principal forgiveness of $28 million and $11 million during the three months ended March 31, 2024 and 2023. The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. As of March 31, 2024, defaults of modified credit card and other consumer loans over the last 12 months were insignificant. As of March 31, 2023, defaults of modified credit card and other consumer loans during the first quarter of 2023 were insignificant. At March 31, 2024, modified credit card and other consumer loans to borrowers experiencing financial difficulty over the last 12 months totaled $658 million, of which $537 million were current, $62 million were 30-89 days past due, and $59 million were greater than 90 days past due. At March 31, 2023, modified credit card and other consumer loans to borrowers experiencing financial difficulty during the first quarter of 2023 totaled $157 million, of which $109 million were current, $24 million were 30-89 days past due, and $24 million were greater than 90 days past due. Commercial Loans Modifications of loans to commercial borrowers experiencing financial difficulty are designed to reduce the Corporation’s loss exposure while providing borrowers with an opportunity to work through financial difficulties, often to avoid foreclosure or bankruptcy. Each modification is unique, reflects the borrower’s individual circumstances and is designed to benefit the borrower while mitigating the Corporation’s risk exposure. Commercial modifications are primarily term extensions and payment forbearances. Payment forbearances involve the Bank forbearing its contractual right to collect certain payments or payment in full (maturity forbearance) for a defined period of time. Reductions in interest rates and principal forgiveness occur infrequently for commercial borrowers. Principal forgiveness may occur in connection with foreclosure, short sales or other settlement agreements, leading to termination or sale of the loan. The table below provides the ending amortized cost of commercial loans modified during the three months ended March 31, 2024 and 2023. Commercial Loans - Modifications to Borrowers in Financial Difficulty Term Extension Forbearances Interest Rate Reduction Total (Dollars in Millions) March 31, 2024 U.S. commercial $ 370 $ 6 $ — $ 376 Non-U.S. commercial — — — — Commercial real estate 581 479 36 1,096 Total $ 951 $ 485 $ 36 $ 1,472 March 31, 2023 U.S. commercial $ 297 $ 96 $ — $ 393 Non-U.S. commercial 104 — — 104 Commercial real estate 299 — — 299 Total $ 700 $ 96 $ — $ 796 Term extensions granted increased the weighted-average life of the impacted loans by 1.3 years at both the three months ended March 31, 2024 and 2023. The deferral period for loan payments can vary, but are mostly in the range of 8 months to 24 months. The weighted-average interest rate reduction was 0.16 percent and 0 percent during the three months ended March 31, 2024 and 2023. Modifications of loans to troubled borrowers for Commercial Lease Financing and U.S. Small Business Commercial were not significant during the three months ended March 31, 2024 and 2023. The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. As of March 31, 2024, defaults of commercial loans modified during the last 12 months were insignificant. As of March 31, 2023, defaults of commercial loans modified during the first quarter of 2023 were insignificant. The following table provides aging information as of March 31, 2024 for commercial loans that were modified over the last 12 months and as of March 31, 2023 for commercial loans that were modified during the first quarter of 2023. Commercial - Payment Status of Modified Loans to Borrowers in Financial Difficulty Current 30–89 Days Past Due 90+ Days Past Due Total % of Total Class of Financing Receivable (Dollars in millions) March 31, 2024 U.S. Commercial $ 1,046  $ 34  $ 24  $ 1,104 0.30  % Non-U.S. Commercial 149  —  3  152 0.12  Commercial Real Estate 1,569  292  330  2,191 3.06  Total $ 2,764  $ 326  $ 357  $ 3,447 0.62  March 31, 2023 U.S. Commercial $ 355  $ —  $ 38  $ 393 0.11