Annual report pursuant to Section 13 and 15(d)

Outstanding Loans and Leases (Tables)

v3.3.1.900
Outstanding Loans and Leases (Tables)
12 Months Ended
Dec. 31, 2015
Loans and Leases Receivable Disclosure [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 December 31, 2015 and 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
(Dollars in millions)
30-59 Days Past Due (1)
 
60-89 Days Past Due (1)
 
90 Days or
More
Past Due (2)
 
Total Past
Due 30 Days
or More
 
Total Current or Less Than 30 Days Past Due (3)
 
Purchased
Credit-impaired
(4)
 
Loans Accounted for Under the Fair Value Option
 
Total
Outstandings
Consumer real estate
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

Core portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
1,603

 
$
645

 
$
3,834

 
$
6,082

 
$
139,763

 
 
 
 
 
$
145,845

Home equity
225

 
104

 
719

 
1,048

 
47,216

 
 
 
 
 
48,264

Legacy Assets & Servicing portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage (5)
1,656

 
890

 
6,019

 
8,565

 
21,435

 
$
12,066

 
 
 
42,066

Home equity
310

 
163

 
1,030

 
1,503

 
21,562

 
4,619

 
 
 
27,684

Credit card and other consumer
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. credit card
454

 
332

 
789

 
1,575

 
88,027

 
 
 
 
 
89,602

Non-U.S. credit card
39

 
31

 
76

 
146

 
9,829

 
 
 
 
 
9,975

Direct/Indirect consumer (6)
227

 
62

 
42

 
331

 
88,464

 
 
 
 
 
88,795

Other consumer (7)
18

 
3

 
4

 
25

 
2,042

 
 
 
 
 
2,067

Total consumer
4,532

 
2,230

 
12,513

 
19,275

 
418,338

 
16,685

 
 
 
454,298

Consumer loans accounted for under the fair value option (8)
 

 
 

 
 

 
 

 
 

 
 

 
$
1,871

 
1,871

Total consumer loans and leases
4,532

 
2,230

 
12,513

 
19,275

 
418,338

 
16,685

 
1,871

 
456,169

Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
444

 
148

 
332

 
924

 
251,847

 
 
 
 
 
252,771

Commercial real estate (9)
36

 
11

 
82

 
129

 
57,070

 
 
 
 
 
57,199

Commercial lease financing
169

 
32

 
22

 
223

 
27,147

 
 
 
 
 
27,370

Non-U.S. commercial
6

 
1

 
1

 
8

 
91,541

 
 
 
 
 
91,549

U.S. small business commercial
83

 
41

 
72

 
196

 
12,680

 
 
 
 
 
12,876

Total commercial
738

 
233

 
509

 
1,480

 
440,285

 
 
 
 
 
441,765

Commercial loans accounted for under the fair value option (8)
 

 
 

 
 

 
 

 
 

 
 

 
5,067

 
5,067

Total commercial loans and leases
738

 
233

 
509

 
1,480

 
440,285

 
 
 
5,067

 
446,832

Total loans and leases
$
5,270

 
$
2,463

 
$
13,022

 
$
20,755

 
$
858,623

 
$
16,685

 
$
6,938

 
$
903,001

Percentage of outstandings
0.59
%
 
0.27
%
 
1.44
%
 
2.30
%
 
95.08
%
 
1.85
%
 
0.77
%
 
100.00
%
(1) 
Consumer real estate loans 30-59 days past due includes fully-insured loans of $1.7 billion and nonperforming loans of $379 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $1.0 billion and nonperforming loans of $297 million.
(2) 
Consumer real estate includes fully-insured loans of $7.2 billion.
(3) 
Consumer real estate includes $3.0 billion and direct/indirect consumer includes $21 million of nonperforming loans.
(4) 
PCI loan amounts are shown gross of the valuation allowance.
(5) 
Total outstandings includes pay option loans of $2.3 billion. The Corporation no longer originates this product.
(6) 
Total outstandings includes auto and specialty lending loans of $42.6 billion, unsecured consumer lending loans of $886 million, U.S. securities-based lending loans of $39.8 billion, non-U.S. consumer loans of $3.9 billion, student loans of $564 million and other consumer loans of $1.0 billion.
(7) 
Total outstandings includes consumer finance loans of $564 million, consumer leases of $1.4 billion and consumer overdrafts of $146 million.
(8) 
Consumer loans accounted for under the fair value option were residential mortgage loans of $1.6 billion and home equity loans of $250 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.3 billion and non-U.S. commercial loans of $2.8 billion. For additional information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option.
(9) 
Total outstandings includes U.S. commercial real estate loans of $53.6 billion and non-U.S. commercial real estate loans of $3.5 billion.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
(Dollars in millions)
30-59 Days
Past Due
(1)
 
60-89 Days Past Due (1)
 
90 Days or
More
Past Due
(2)
 
Total Past
Due 30 Days
or More
 
Total
Current or
Less Than
30 Days
Past Due (3)
 
Purchased
Credit-impaired
(4)
 
Loans
Accounted
for Under
the Fair
Value Option
 
Total Outstandings
Consumer real estate
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

Core portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
1,847

 
$
700

 
$
5,561

 
$
8,108

 
$
154,112

 
 
 
 

 
$
162,220

Home equity
218

 
105

 
744

 
1,067

 
50,820

 
 
 
 

 
51,887

Legacy Assets & Servicing portfolio
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Residential mortgage (5)
2,008

 
1,060

 
10,513

 
13,581

 
25,244

 
$
15,152

 
 

 
53,977

Home equity
374

 
174

 
1,166

 
1,714

 
26,507

 
5,617

 
 

 
33,838

Credit card and other consumer
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. credit card
494

 
341

 
866

 
1,701

 
90,178

 
 
 
 

 
91,879

Non-U.S. credit card
49

 
39

 
95

 
183

 
10,282

 
 
 
 

 
10,465

Direct/Indirect consumer (6)
245

 
71

 
65

 
381

 
80,000

 
 
 
 

 
80,381

Other consumer (7)
11

 
2

 
2

 
15

 
1,831

 
 
 
 

 
1,846

Total consumer
5,246

 
2,492

 
19,012

 
26,750

 
438,974

 
20,769

 
 

486,493

Consumer loans accounted for under the fair value option (8)
 
 
 
 
 
 
 
 
 
 
 
 
$
2,077


2,077

Total consumer loans and leases
5,246

 
2,492

 
19,012

 
26,750

 
438,974

 
20,769

 
2,077

 
488,570

Commercial
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S. commercial
320

 
151

 
318

 
789

 
219,504

 
 
 
 

 
220,293

Commercial real estate (9)
138

 
16

 
288

 
442

 
47,240

 
 
 
 

 
47,682

Commercial lease financing
121

 
41

 
42

 
204

 
24,662

 
 
 
 

 
24,866

Non-U.S. commercial
5

 
4

 

 
9

 
80,074

 
 
 
 

 
80,083

U.S. small business commercial
88

 
45

 
94

 
227

 
13,066

 
 
 
 

 
13,293

Total commercial
672

 
257

 
742

 
1,671

 
384,546

 
 
 
 

 
386,217

Commercial loans accounted for under the fair value option (8)
 
 
 
 
 
 
 
 
 
 
 
 
6,604

 
6,604

Total commercial loans and leases
672

 
257

 
742

 
1,671

 
384,546

 
 
 
6,604

 
392,821

Total loans and leases
$
5,918

 
$
2,749

 
$
19,754

 
$
28,421

 
$
823,520

 
$
20,769

 
$
8,681

 
$
881,391

Percentage of outstandings
0.67
%
 
0.31
%
 
2.24
%
 
3.22
%
 
93.44
%
 
2.36
%
 
0.98
%
 
100.00
%

(1) 
Consumer real estate loans 30-59 days past due includes fully-insured loans of $2.1 billion and nonperforming loans of $392 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $1.1 billion and nonperforming loans of $332 million.
(2) 
Consumer real estate includes fully-insured loans of $11.4 billion.
(3) 
Consumer real estate includes $3.6 billion and direct/indirect consumer includes $27 million of nonperforming loans.
(4) 
PCI loan amounts are shown gross of the valuation allowance.
(5) 
Total outstandings includes pay option loans of $3.2 billion. The Corporation no longer originates this product.
(6) 
Total outstandings includes auto and specialty lending loans of $37.7 billion, unsecured consumer lending loans of $1.5 billion, U.S. securities-based lending loans of $35.8 billion, non-U.S. consumer loans of $4.0 billion, student loans of $632 million and other consumer loans of $761 million.
(7) 
Total outstandings includes consumer finance loans of $676 million, consumer leases of $1.0 billion and consumer overdrafts of $162 million.
(8) 
Consumer loans accounted for under the fair value option were residential mortgage loans of $1.9 billion and home equity loans of $196 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $1.9 billion and non-U.S. commercial loans of $4.7 billion. For additional information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option.
(9) 
Total outstandings includes U.S. commercial real estate loans of $45.2 billion and non-U.S. commercial real estate loans of $2.5 billion.
Schedule of Financing Receivables, Non Accrual Status
The table below presents the Corporation’s nonperforming loans and leases including nonperforming TDRs, and loans accruing past due 90 days or more at December 31, 2015 and 2014. 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
 
 
 
 
 
 
 
 
 
 
 
December 31
 
Nonperforming Loans and Leases
 
Accruing Past Due
90 Days or More
(Dollars in millions)
2015
 
2014
 
2015
 
2014
Consumer real estate
 

 
 

 
 

 
 

Core portfolio
 
 
 
 
 
 
 
Residential mortgage (1)
$
1,845

 
$
2,398

 
$
2,645

 
$
3,942

Home equity
1,354

 
1,496

 

 

Legacy Assets & Servicing portfolio
 

 
 

 
 

 
 
Residential mortgage (1)
2,958

 
4,491

 
4,505

 
7,465

Home equity
1,983

 
2,405

 

 

Credit card and other consumer
 

 
 

 
 
 
 
U.S. credit card
n/a

 
n/a

 
789

 
866

Non-U.S. credit card
n/a

 
n/a

 
76

 
95

Direct/Indirect consumer
24

 
28

 
39

 
64

Other consumer
1

 
1

 
3

 
1

Total consumer
8,165

 
10,819

 
8,057

 
12,433

Commercial
 

 
 

 
 

 
 

U.S. commercial
867

 
701

 
113

 
110

Commercial real estate
93

 
321

 
3

 
3

Commercial lease financing
12

 
3

 
17

 
41

Non-U.S. commercial
158

 
1

 
1

 

U.S. small business commercial
82

 
87

 
61

 
67

Total commercial
1,212

 
1,113

 
195

 
221

Total loans and leases
$
9,377

 
$
11,932

 
$
8,252

 
$
12,654

(1) 
Residential mortgage loans in the Core and Legacy Assets & Servicing portfolios accruing past due 90 days or more are fully-insured loans. At December 31, 2015 and 2014, residential mortgage includes $4.3 billion and $7.3 billion of loans on which interest has been curtailed by the FHA, and therefore are no longer accruing interest, although principal is still insured, and $2.9 billion and $4.1 billion of loans on which interest is still accruing.
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, at December 31, 2015 and 2014.
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Real Estate – Credit Quality Indicators (1)
 
 
 
December 31, 2015
(Dollars in millions)
Core Portfolio Residential
Mortgage (2)
 
Legacy Assets & Servicing Residential
Mortgage
(2)
 
Residential Mortgage PCI (3)
 
Core Portfolio Home Equity (2)
 
Legacy Assets & Servicing Home Equity (2)
 
Home
Equity PCI
Refreshed LTV (4)
 

 
 

 
 

 
 

 
 
 
 
Less than or equal to 90 percent
$
109,869

 
$
16,646

 
$
8,655

 
$
44,006

 
$
15,666

 
$
2,003

Greater than 90 percent but less than or equal to 100 percent
4,251

 
2,007

 
1,403

 
1,652

 
2,382

 
852

Greater than 100 percent
2,783

 
3,212

 
2,008

 
2,606

 
5,017

 
1,764

Fully-insured loans (5)
28,942

 
8,135

 

 

 

 

Total consumer real estate
$
145,845

 
$
30,000

 
$
12,066

 
$
48,264

 
$
23,065

 
$
4,619

Refreshed FICO score
 
 
 
 
 
 
 
 
 
 
 
Less than 620
$
3,465

 
$
4,408

 
$
3,798

 
$
1,898

 
$
2,785

 
$
729

Greater than or equal to 620 and less than 680
5,792

 
3,438

 
2,586

 
3,242

 
3,817

 
825

Greater than or equal to 680 and less than 740
22,017

 
5,605

 
3,187

 
9,203

 
6,527

 
1,356

Greater than or equal to 740
85,629

 
8,414

 
2,495

 
33,921

 
9,936

 
1,709

Fully-insured loans (5)
28,942

 
8,135

 

 

 

 

Total consumer real estate
$
145,845

 
$
30,000

 
$
12,066

 
$
48,264

 
$
23,065

 
$
4,619

(1) 
Excludes $1.9 billion of loans accounted for under the fair value option.
(2) 
Excludes PCI loans.
(3) 
Includes $2.0 billion of pay option loans. The Corporation no longer originates this product.
(4) 
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
(5) 
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.
 
 
 
 
 
 
 
 
Credit Card and Other Consumer – Credit Quality Indicators
 
 
 
December 31, 2015
(Dollars in millions)
U.S. Credit
Card
 
Non-U.S.
Credit Card
 
Direct/Indirect
Consumer
 
Other
Consumer (1)
Refreshed FICO score
 

 
 

 
 

 
 

Less than 620
$
4,196

 
$

 
$
1,244

 
$
217

Greater than or equal to 620 and less than 680
11,857

 

 
1,698

 
214

Greater than or equal to 680 and less than 740
34,270

 

 
10,955

 
337

Greater than or equal to 740
39,279

 

 
29,581

 
1,149

Other internal credit metrics (2, 3, 4)

 
9,975

 
45,317

 
150

Total credit card and other consumer
$
89,602

 
$
9,975

 
$
88,795

 
$
2,067

(1) 
Twenty-seven percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.
(2) 
Other internal credit metrics may include delinquency status, geography or other factors.
(3) 
Direct/indirect consumer includes $43.7 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $567 million of loans the Corporation no longer originates, primarily student loans.
(4) 
Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2015, 98 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and one percent was 90 days or more past due.
 
 
 
 
 
 
 
 
 
 
Commercial – Credit Quality Indicators (1)
 
 
 
December 31, 2015
(Dollars in millions)
U.S.
Commercial
 
Commercial
Real Estate
 
Commercial
Lease
Financing
 
Non-U.S.
Commercial
 
U.S. Small
Business
Commercial (2)
Risk ratings
 

 
 

 
 

 
 

 
 

Pass rated
$
243,922

 
$
56,688

 
$
26,050

 
$
87,905

 
$
571

Reservable criticized
8,849

 
511

 
1,320

 
3,644

 
96

Refreshed FICO score (3)
 
 
 
 
 
 
 
 
 

Less than 620
 

 
 

 
 

 
 

 
184

Greater than or equal to 620 and less than 680
 
 
 
 
 
 
 
 
543

Greater than or equal to 680 and less than 740
 
 
 
 
 
 
 
 
1,627

Greater than or equal to 740
 
 
 
 
 
 
 
 
3,027

Other internal credit metrics (3, 4)
 
 
 
 
 
 
 
 
6,828

Total commercial
$
252,771

 
$
57,199

 
$
27,370

 
$
91,549

 
$
12,876

(1) 
Excludes $5.1 billion of loans accounted for under the fair value option.
(2) 
U.S. small business commercial includes $670 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2015, 98 percent of the balances where internal credit metrics are used was current or less than 30 days past due.
(3) 
Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
(4) 
Other internal credit metrics may include delinquency status, application scores, geography or other factors.
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Real Estate – Credit Quality Indicators (1)
 
 
 
December 31, 2014
(Dollars in millions)
Core Portfolio Residential
Mortgage (2)
 
Legacy Assets & Servicing Residential
Mortgage
(2)
 
Residential Mortgage PCI (3)
 
Core Portfolio Home Equity (2)
 
Legacy Assets & Servicing Home Equity (2)
 
Home
Equity PCI
Refreshed LTV (4)
 

 
 

 
 

 
 

 
 
 
 
Less than or equal to 90 percent
$
100,255

 
$
18,499

 
$
9,972

 
$
45,414

 
$
17,453

 
$
2,046

Greater than 90 percent but less than or equal to 100 percent
4,958

 
3,081

 
2,005

 
2,442

 
3,272

 
1,048

Greater than 100 percent
4,017

 
5,265

 
3,175

 
4,031

 
7,496

 
2,523

Fully-insured loans (5)
52,990

 
11,980

 

 

 

 

Total consumer real estate
$
162,220

 
$
38,825

 
$
15,152

 
$
51,887

 
$
28,221

 
$
5,617

Refreshed FICO score
 

 
 

 
 

 
 

 
 

 
 

Less than 620
$
4,184

 
$
6,313

 
$
6,109

 
$
2,169

 
$
3,470

 
$
864

Greater than or equal to 620 and less than 680
6,272

 
4,032

 
3,014

 
3,683

 
4,529

 
995

Greater than or equal to 680 and less than 740
21,946

 
6,463

 
3,310

 
10,231

 
7,905

 
1,651

Greater than or equal to 740
76,828

 
10,037

 
2,719

 
35,804

 
12,317

 
2,107

Fully-insured loans (5)
52,990

 
11,980

 

 

 

 

Total consumer real estate
$
162,220

 
$
38,825

 
$
15,152

 
$
51,887

 
$
28,221

 
$
5,617

(1) 
Excludes $2.1 billion of loans accounted for under the fair value option.
(2) 
Excludes PCI loans.
(3) 
Includes $2.8 billion of pay option loans. The Corporation no longer originates this product.
(4) 
Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.
(5) 
Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.
 
 
 
 
 
 
 
 
Credit Card and Other Consumer – Credit Quality Indicators
 
 
 
December 31, 2014
(Dollars in millions)
U.S. Credit
Card
 
Non-U.S.
Credit Card
 
Direct/Indirect
Consumer
 
Other
Consumer (1)
Refreshed FICO score
 

 
 

 
 

 
 

Less than 620
$
4,467

 
$

 
$
1,296

 
$
266

Greater than or equal to 620 and less than 680
12,177

 

 
1,892

 
227

Greater than or equal to 680 and less than 740
34,986

 

 
10,749

 
307

Greater than or equal to 740
40,249

 

 
25,279

 
881

Other internal credit metrics (2, 3, 4)

 
10,465

 
41,165

 
165

Total credit card and other consumer
$
91,879

 
$
10,465

 
$
80,381

 
$
1,846

(1) 
Thirty-seven percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.
(2) 
Other internal credit metrics may include delinquency status, geography or other factors.
(3) 
Direct/indirect consumer includes $39.7 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $632 million of loans the Corporation no longer originates, primarily student loans.
(4) 
Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2014, 98 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and one percent was 90 days or more past due.
 
 
 
 
 
 
 
 
 
 
Commercial – Credit Quality Indicators (1)
 
 
 
December 31, 2014
(Dollars in millions)
U.S.
Commercial
 
Commercial
Real Estate
 
Commercial
Lease
Financing
 
Non-U.S.
Commercial
 
U.S. Small
Business
Commercial (2)
Risk ratings
 

 
 

 
 

 
 

 
 

Pass rated
$
213,839

 
$
46,632

 
$
23,832

 
$
79,367

 
$
751

Reservable criticized
6,454

 
1,050

 
1,034

 
716

 
182

Refreshed FICO score (3)
 
 
 
 
 
 
 
 
 
Less than 620
 
 
 
 
 
 
 
 
184

Greater than or equal to 620 and less than 680
 
 
 
 
 
 
 
 
529

Greater than or equal to 680 and less than 740
 
 
 
 
 
 
 
 
1,591

Greater than or equal to 740
 
 
 
 
 
 
 
 
2,910

Other internal credit metrics (3, 4)
 
 
 
 
 
 
 
 
7,146

Total commercial
$
220,293

 
$
47,682

 
$
24,866

 
$
80,083

 
$
13,293

(1) 
Excludes $6.6 billion of loans accounted for under the fair value option.
(2) 
U.S. small business commercial includes $762 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2014, 98 percent of the balances where internal credit metrics are used was current or less than 30 days past due.
(3) 
Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.
(4) 
Other internal credit metrics may include delinquency status, application scores, geography or other factors.
Financing Receivable, Modifications [Line Items]  
Accretable Yield Activity
The following table shows activity for the accretable yield on PCI loans, which include the Countrywide Financial Corporation (Countrywide) portfolio and loans repurchased in connection with the 2013 settlement with FNMA. The amount of accretable yield is affected by changes in credit outlooks, including metrics such as default rates and loss severities, prepayment speeds, which can change the amount and period of time over which interest payments are expected to be received, and the interest rates on variable rate loans. The reclassifications from nonaccretable difference during 2015 and 2014 were primarily due to lower expected loss rates and a decrease in the forecasted prepayment speeds. Changes in the prepayment assumption affect the expected remaining life of the portfolio which results in a change to the amount of future interest cash flows.
 
 

Rollforward of Accretable Yield
 
 
 
(Dollars in millions)
 

Accretable yield, January 1, 2014
$
6,694

Accretion
(1,061
)
Disposals/transfers
(506
)
Reclassifications from nonaccretable difference
481

Accretable yield, December 31, 2014
5,608

Accretion
(861
)
Disposals/transfers
(465
)
Reclassifications from nonaccretable difference
287

Accretable yield, December 31, 2015
$
4,569

Consumer real estate  
Financing Receivable, Impaired [Line Items]  
Impaired Financing Receivables
The table below provides the unpaid principal balance, carrying value and related allowance at December 31, 2015 and 2014, and the average carrying value and interest income recognized for 2015, 2014 and 2013 for impaired loans in the Corporation’s Consumer Real Estate portfolio segment, and includes primarily loans managed by Legacy Assets & Servicing (LAS). Certain impaired consumer real estate loans do not have a related allowance as the current valuation of these impaired loans exceeded the carrying value, which is net of previously recorded charge-offs.
 
 
 
 
 
 
 
 
 
 
 
 
Impaired Loans – Consumer Real Estate
 
 
 
 
 
 
 
 
 
December 31, 2015
 
December 31, 2014
(Dollars in millions)
Unpaid
Principal
Balance
 
Carrying
Value
 
Related
Allowance
 
Unpaid
Principal
Balance
 
Carrying
Value
 
Related
Allowance
With no recorded allowance
 

 
 

 
 

 
 

 
 

 
 
Residential mortgage
$
14,888

 
$
11,901

 
$

 
$
19,710

 
$
15,605

 
$

Home equity
3,545

 
1,775

 

 
3,540

 
1,630

 

With an allowance recorded
 
 
 
 
 

 
 
 
 
 
 
Residential mortgage
$
6,624

 
$
6,471

 
$
399

 
$
7,861

 
$
7,665

 
$
531

Home equity
1,047

 
911

 
235

 
852

 
728

 
196

Total
 

 
 

 
 

 
 
 
 
 
 
Residential mortgage
$
21,512

 
$
18,372

 
$
399

 
$
27,571

 
$
23,270

 
$
531

Home equity
4,592

 
2,686

 
235

 
4,392

 
2,358

 
196

 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
2014
 
2013
 
Average
Carrying
Value
 
Interest
Income
Recognized
(1)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(1)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(1)
With no recorded allowance
 

 
 

 
 
 
 
 
 
 
 
Residential mortgage
$
13,867

 
$
403

 
$
15,065

 
$
490

 
$
16,625

 
$
621

Home equity
1,777

 
89

 
1,486

 
87

 
1,245

 
76

With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
$
7,290

 
$
236

 
$
10,826

 
$
411

 
$
13,926

 
$
616

Home equity
785

 
24

 
743

 
25

 
912

 
41

Total
 

 
 

 
 
 
 
 
 
 
 
Residential mortgage
$
21,157

 
$
639

 
$
25,891

 
$
901

 
$
30,551

 
$
1,237

Home equity
2,562

 
113

 
2,229

 
112

 
2,157

 
117

(1) 
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
Financing Receivable, Modifications [Line Items]  
Troubled Debt Restructurings on Financing Receivables
The table below presents the December 31, 2015, 2014 and 2013 carrying value for consumer real estate loans that were modified in a TDR during 2015, 2014 and 2013, by type of modification.
 
 
 
 
 
 
Consumer Real Estate – Modification Programs
 
 
 
TDRs Entered into During 2015
(Dollars in millions)
Residential Mortgage
 
Home
Equity
 
Total Carrying Value
Modifications under government programs
 
 
 
 
 
Contractual interest rate reduction
$
408

 
$
23

 
$
431

Principal and/or interest forbearance
4

 
7

 
11

Other modifications (1)
46

 

 
46

Total modifications under government programs
458

 
30

 
488

Modifications under proprietary programs
 
 
 
 
 
Contractual interest rate reduction
191

 
28

 
219

Capitalization of past due amounts
69

 
10

 
79

Principal and/or interest forbearance
124

 
44

 
168

Other modifications (1)
34

 
95

 
129

Total modifications under proprietary programs
418

 
177

 
595

Trial modifications
1,516

 
452

 
1,968

Loans discharged in Chapter 7 bankruptcy (2)
263

 
116

 
379

Total modifications
$
2,655

 
$
775

 
$
3,430

 
 
 
 
 
 
 
TDRs Entered into During 2014
Modifications under government programs
 
 
 
 
 
Contractual interest rate reduction
$
643

 
$
56

 
$
699

Principal and/or interest forbearance
16

 
18

 
34

Other modifications (1)
98

 
1

 
99

Total modifications under government programs
757

 
75

 
832

Modifications under proprietary programs
 
 
 
 
 
Contractual interest rate reduction
244

 
22

 
266

Capitalization of past due amounts
71

 
2

 
73

Principal and/or interest forbearance
66

 
75

 
141

Other modifications (1)
40

 
47

 
87

Total modifications under proprietary programs
421

 
146

 
567

Trial modifications
3,421

 
182

 
3,603

Loans discharged in Chapter 7 bankruptcy (2)
521

 
189

 
710

Total modifications
$
5,120

 
$
592

 
$
5,712

 
 
 
 
 
 
 
TDRs Entered into During 2013
Modifications under government programs
 
 
 
 
 
Contractual interest rate reduction
$
1,815

 
$
48

 
$
1,863

Principal and/or interest forbearance
35

 
24

 
59

Other modifications (1)
100

 

 
100

Total modifications under government programs
1,950

 
72

 
2,022

Modifications under proprietary programs
 
 
 
 
 
Contractual interest rate reduction
2,799

 
40

 
2,839

Capitalization of past due amounts
132

 
2

 
134

Principal and/or interest forbearance
469

 
17

 
486

Other modifications (1)
105

 
25

 
130

Total modifications under proprietary programs
3,505

 
84

 
3,589

Trial modifications
3,410

 
87

 
3,497

Loans discharged in Chapter 7 bankruptcy (2)
1,151

 
278

 
1,429

Total modifications
$
10,016

 
$
521

 
$
10,537

(1) 
Includes other modifications such as term or payment extensions and repayment plans.
(2) 
Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
The table below presents the carrying value of consumer real estate loans that entered into payment default during 2015, 2014 and 2013 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. Payment defaults on a trial modification where the borrower has not yet met the terms of the agreement are included in the table below if the borrower is 90 days or more past due three months after the offer to modify is made.
 
 
 
 
 
 
Consumer Real Estate – TDRs Entering Payment Default That Were Modified During the Preceding 12 Months
 
 
 
2015
(Dollars in millions)
 Residential Mortgage
 
Home
Equity
 
Total Carrying Value (1)
Modifications under government programs
$
452

 
$
5

 
$
457

Modifications under proprietary programs
263

 
24

 
287

Loans discharged in Chapter 7 bankruptcy (2)
238

 
47

 
285

Trial modifications (3)
2,997

 
181

 
3,178

Total modifications
$
3,950

 
$
257

 
$
4,207

 
 
 
 
 
 
 
2014
Modifications under government programs
$
696

 
$
4

 
$
700

Modifications under proprietary programs
714

 
12

 
726

Loans discharged in Chapter 7 bankruptcy (2)
481

 
70

 
551

Trial modifications
2,231

 
56

 
2,287

Total modifications
$
4,122

 
$
142

 
$
4,264

 
 
 
 
 
 
 
2013
Modifications under government programs
$
454

 
$
2

 
$
456

Modifications under proprietary programs
1,117

 
4

 
1,121

Loans discharged in Chapter 7 bankruptcy (2)
964

 
30

 
994

Trial modifications
4,376

 
14

 
4,390

Total modifications
$
6,911

 
$
50

 
$
6,961

(1) 
Includes loans with a carrying value of $1.8 billion, $2.0 billion and $2.4 billion that entered into payment default during 2015, 2014 and 2013, respectively, but were no longer held by the Corporation as of December 31, 2015, 2014 and 2013 due to sales and other dispositions.
(2) 
Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
(3) 
Includes $1.7 billion of trial modification offers made in connection with the 2014 settlement with the U.S. Department of Justice to which the customer has not responded for 2015.
The table below presents the December 31, 2015, 2014 and 2013 unpaid principal balance, carrying value, and average pre- and post-modification interest rates on consumer real estate loans that were modified in TDRs during 2015, 2014 and 2013, and net charge-offs recorded during the period in which the modification occurred. 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. These TDRs are primarily managed by LAS.
 
 
 
 
 
 
 
 
 
 
Consumer Real Estate – TDRs Entered into During 2015, 2014 and 2013 (1)
 
 
 
December 31, 2015
 
2015
(Dollars in millions)
Unpaid Principal Balance
 
Carrying
Value
 
Pre-Modification Interest Rate
 
Post-Modification Interest Rate (2)
 
Net
Charge-offs (3)
Residential mortgage
$
2,986

 
$
2,655

 
4.98
%
 
4.43
%
 
$
97

Home equity
1,019

 
775

 
3.54

 
3.17

 
84

Total
$
4,005

 
$
3,430

 
4.61

 
4.11

 
$
181

 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
2014
Residential mortgage
$
5,940

 
$
5,120

 
5.28
%
 
4.93
%
 
$
72

Home equity
863

 
592

 
4.00

 
3.33

 
99

Total
$
6,803

 
$
5,712

 
5.12

 
4.73

 
$
171

 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
2013
Residential mortgage
$
11,233

 
$
10,016

 
5.30
%
 
4.27
%
 
$
235

Home equity
878

 
521

 
5.29

 
3.92

 
192

Total
$
12,111

 
$
10,537

 
5.30

 
4.24

 
$
427

(1) 
During 2015, 2014 and 2013, the Corporation forgave principal of $396 million, $53 million and $467 million, respectively, related to residential mortgage loans in connection with TDRs.
(2) 
The post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period.
(3) 
Net charge-offs include amounts recorded on loans modified during the period that are no longer held by the Corporation at December 31, 2015, 2014 and 2013 due to sales and other dispositions.
Credit card and other consumer  
Financing Receivable, Impaired [Line Items]  
Impaired Financing Receivables
The table below provides the unpaid principal balance, carrying value and related allowance at December 31, 2015 and 2014, and the average carrying value and interest income recognized for 2015, 2014 and 2013 on the Corporation’s renegotiated TDR portfolio in the Credit Card and Other Consumer portfolio segment.
 
 
 
 
 
 
 
 
 
 
 
 
Impaired Loans – Credit Card and Other Consumer – Renegotiated TDRs
 
 
 
 
 
 
 
 
 
December 31, 2015
 
December 31, 2014
(Dollars in millions)
Unpaid
Principal
Balance
 
Carrying
Value (1)
 
Related
Allowance
 
Unpaid
Principal
Balance
 
Carrying
Value (1)
 
Related
Allowance
With no recorded allowance
 

 
 

 
 

 
 
 
 
 
 
Direct/Indirect consumer
$
50

 
$
21

 
$

 
$
59

 
$
25

 
$

With an allowance recorded
 

 
 

 
 

 
 

 
 

 
 
U.S. credit card
$
598

 
$
611

 
$
176

 
$
804

 
$
856

 
$
207

Non-U.S. credit card
109

 
126

 
70

 
132

 
168

 
108

Direct/Indirect consumer
17

 
21

 
4

 
76

 
92

 
24

Total
 

 
 

 
 

 
 
 
 
 
 
U.S. credit card
$
598

 
$
611

 
$
176

 
$
804

 
$
856

 
$
207

Non-U.S. credit card
109

 
126

 
70

 
132

 
168

 
108

Direct/Indirect consumer
67

 
42

 
4

 
135

 
117

 
24

 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
2014
 
2013
 
Average
Carrying
Value
 
Interest
Income
Recognized
(2)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(2)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(2)
With no recorded allowance
 
 
 
 
 
 
 
 
 
 
 
Direct/Indirect consumer
$
22

 
$

 
$
27

 
$

 
$
42

 
$

Other consumer

 

 
33

 
2

 
34

 
2

With an allowance recorded
 

 
 

 
 
 
 
 
 
 
 
U.S. credit card
$
749

 
$
43

 
$
1,148

 
$
71

 
$
2,144

 
$
134

Non-U.S. credit card
145

 
4

 
210

 
6

 
266

 
7

Direct/Indirect consumer
51

 
3

 
180

 
9

 
456

 
24

Other consumer

 

 
23

 
1

 
28

 
2

Total
 

 
 

 
 
 
 
 
 
 
 
U.S. credit card
$
749

 
$
43

 
$
1,148

 
$
71

 
$
2,144

 
$
134

Non-U.S. credit card
145

 
4

 
210

 
6

 
266

 
7

Direct/Indirect consumer
73

 
3

 
207

 
9

 
498

 
24

Other consumer

 

 
56

 
3

 
62

 
4

(1) 
Includes accrued interest and fees.
(2) 
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
Financing Receivable, Modifications [Line Items]  
Troubled Debt Restructurings on Financing Receivables
The table below provides information on the Corporation’s renegotiated TDR portfolio including the December 31, 2015, 2014 and 2013 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during 2015, 2014 and 2013, and net charge-offs recorded during the period in which the modification occurred.
 
 
 
 
 
 
 
 
 
 
Credit Card and Other Consumer – Renegotiated TDRs Entered into During 2015, 2014 and 2013
 
 
 
December 31, 2015
 
2015
(Dollars in millions)
Unpaid Principal Balance
 
Carrying Value (1)
 
Pre-Modification Interest Rate
 
Post-Modification Interest Rate
 
Net
Charge-offs
U.S. credit card
$
205

 
$
218

 
17.07
%
 
5.08
%
 
$
26

Non-U.S. credit card
74

 
86

 
24.05

 
0.53

 
63

Direct/Indirect consumer
19

 
12

 
5.95

 
5.19

 
9

Total
$
298

 
$
316

 
18.58

 
3.84

 
$
98

 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
2014
U.S. credit card
$
276

 
$
301

 
16.64
%
 
5.15
%
 
$
37

Non-U.S. credit card
91

 
106

 
24.90

 
0.68

 
91

Direct/Indirect consumer
27

 
19

 
8.66

 
4.90

 
14

Total
$
394

 
$
426

 
18.32

 
4.03

 
$
142

 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
 
2013
U.S. credit card
$
299

 
$
329

 
16.84
%
 
5.84
%
 
$
30

Non-U.S. credit card
134

 
147

 
25.90

 
0.95

 
138

Direct/Indirect consumer
47

 
38

 
11.53

 
4.74

 
15

Other consumer
8

 
8

 
9.28

 
5.25

 

Total
$
488

 
$
522

 
18.89

 
4.37

 
$
183

(1) 
Includes accrued interest and fees.
The table below provides information on the Corporation’s primary modification programs for the renegotiated TDR portfolio at December 31, 2015 and 2014.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit Card and Other Consumer – Renegotiated TDRs by Program Type
 
 
 
 
 
 
 
 
 
 
 
December 31
 
Internal Programs
 
External Programs
 
Other (1)
 
Total
 
Percent of Balances Current or Less Than 30 Days Past Due
(Dollars in millions)
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
U.S. credit card
$
313

 
$
450

 
$
296

 
$
397

 
$
2

 
$
9

 
$
611

 
$
856

 
88.74
%
 
84.99
%
Non-U.S. credit card
21

 
41

 
10

 
16

 
95

 
111

 
126

 
168

 
44.25

 
47.56

Direct/Indirect consumer
11

 
50

 
7

 
34

 
24

 
33

 
42

 
117

 
89.12

 
85.21

Total renegotiated TDRs
$
345

 
$
541

 
$
313

 
$
447

 
$
121

 
$
153

 
$
779

 
$
1,141

 
81.55

 
79.51

(1) 
Other TDRs for non-U.S. credit card include modifications of accounts that are ineligible for a fixed payment plan.
The table below provides information on the Corporation’s primary modification programs for the renegotiated TDR portfolio for loans that were modified in TDRs during 2015, 2014 and 2013.
 
 
 
 
 
 
 
 
Credit Card and Other Consumer – Renegotiated TDRs Entered into During the Period by Program Type
 
 
 
2015
(Dollars in millions)
Internal Programs
 
External Programs
 
Other (1)
 
Total
U.S. credit card
$
134

 
$
84

 
$

 
$
218

Non-U.S. credit card
3

 
4

 
79

 
86

Direct/Indirect consumer
1

 

 
11

 
12

Total renegotiated TDRs
$
138

 
$
88

 
$
90

 
$
316

 
 
 
 
 
 
 
 
 
2014
U.S. credit card
$
196

 
$
105

 
$

 
$
301

Non-U.S. credit card
6

 
6

 
94

 
106

Direct/Indirect consumer
4

 
2

 
13

 
19

Total renegotiated TDRs
$
206

 
$
113

 
$
107

 
$
426

 
 
 
 
 
 
 
 
 
2013
U.S. credit card
$
192

 
$
137

 
$

 
$
329

Non-U.S. credit card
16

 
9

 
122

 
147

Direct/Indirect consumer
15

 
8

 
15

 
38

Other consumer
8

 

 

 
8

Total renegotiated TDRs
$
231

 
$
154

 
$
137

 
$
522

(1) 
Other TDRs for non-U.S. credit card include modifications of accounts that are ineligible for a fixed payment plan.
Commercial Portfolio Segment  
Financing Receivable, Impaired [Line Items]  
Impaired Financing Receivables
The table below provides the unpaid principal balance, carrying value and related allowance at December 31, 2015 and 2014, and the average carrying value and interest income recognized for 2015, 2014 and 2013 for impaired loans in the Corporation’s Commercial loan portfolio segment. Certain impaired commercial loans do not have a related allowance as the valuation of these impaired loans exceeded the carrying value, which is net of previously recorded charge-offs.
 
 
 
 
 
 
 
 
 
 
 
 
Impaired Loans – Commercial
 
 
 
 
 
 
 
 
 
December 31, 2015
 
December 31, 2014
(Dollars in millions)
Unpaid
Principal
Balance
 
Carrying
Value
 
Related
Allowance
 
Unpaid
Principal
Balance
 
Carrying
Value
 
Related
Allowance
With no recorded allowance
 

 
 

 
 

 
 

 
 

 
 
U.S. commercial
$
566

 
$
541

 
$

 
$
668

 
$
650

 
$

Commercial real estate
82

 
77

 

 
60

 
48

 

Non-U.S. commercial
4

 
4

 

 

 

 

With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 

U.S. commercial
$
1,350

 
$
1,157

 
$
115

 
$
1,139

 
$
839

 
$
75

Commercial real estate
328

 
107

 
11

 
678

 
495

 
48

Non-U.S. commercial
531

 
381

 
56

 
47

 
44

 
1

U.S. small business commercial (1)
105

 
101

 
35

 
133

 
122

 
35

Total
 

 
 

 
 

 
 
 
 
 
 
U.S. commercial
$
1,916

 
$
1,698

 
$
115

 
$
1,807

 
$
1,489

 
$
75

Commercial real estate
410

 
184

 
11

 
738

 
543

 
48

Non-U.S. commercial
535

 
385

 
56

 
47

 
44

 
1

U.S. small business commercial (1)
105

 
101

 
35

 
133

 
122

 
35

 
 
 
 
 
 
 
 
 
 
 
 
 
2015
 
2014
 
2013
 
Average
Carrying
Value
 
Interest
Income
Recognized
(2)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(2)
 
Average
Carrying
Value
 
Interest
Income
Recognized
(2)
With no recorded allowance
 

 
 

 
 
 
 
 
 
 
 
U.S. commercial
$
688

 
$
14

 
$
546

 
$
12

 
$
442

 
$
6

Commercial real estate
75

 
1

 
166

 
3

 
269

 
3

Non-U.S. commercial
29

 
1

 
15

 

 
28

 

With an allowance recorded
 
 
 
 
 
 
 
 
 
 
 
U.S. commercial
$
953

 
$
48

 
$
1,198

 
$
51

 
$
1,553

 
$
47

Commercial real estate
216

 
7

 
632

 
16

 
1,148

 
28

Non-U.S. commercial
125

 
7

 
52

 
3

 
109

 
5

U.S. small business commercial (1)
109

 
1

 
151

 
3

 
236

 
6

Total
 

 
 

 
 
 
 
 
 
 
 
U.S. commercial
$
1,641

 
$
62

 
$
1,744

 
$
63

 
$
1,995

 
$
53

Commercial real estate
291

 
8

 
798

 
19

 
1,417

 
31

Non-U.S. commercial
154

 
8

 
67

 
3

 
137

 
5

U.S. small business commercial (1)
109

 
1

 
151

 
3

 
236

 
6

(1) 
Includes U.S. small business commercial renegotiated TDR loans and related allowance.
(2) 
Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.
Financing Receivable, Modifications [Line Items]  
Troubled Debt Restructurings on Financing Receivables
The table below presents the December 31, 2015, 2014 and 2013 unpaid principal balance and carrying value of commercial loans that were modified as TDRs during 2015, 2014 and 2013, and net charge-offs that were recorded during the period in which the modification occurred. The table below includes 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.
 
 
 
 
 
 
Commercial – TDRs Entered into During 2015, 2014 and 2013
 
 
 
December 31, 2015
 
2015
(Dollars in millions)
Unpaid Principal Balance
 
Carrying Value
 
Net Charge-offs
U.S. commercial
$
853

 
$
779

 
$
28

Commercial real estate
42

 
42

 

Non-U.S. commercial
329

 
326

 

U.S. small business commercial (1)
14

 
11

 
3

Total
$
1,238

 
$
1,158

 
$
31

 
 
 
 
 
 
 
December 31, 2014
 
2014
U.S. commercial
$
818

 
$
785

 
$
49

Commercial real estate
346

 
346

 
8

Non-U.S. commercial
44

 
43

 

U.S. small business commercial (1)
3

 
3

 

Total
$
1,211

 
$
1,177

 
$
57

 
 
 
 
 
 
 
December 31, 2013
 
2013
U.S. commercial
$
926

 
$
910

 
$
33

Commercial real estate
483

 
425

 
3

Non-U.S. commercial
61

 
44

 
7

U.S. small business commercial (1)
8

 
9

 
1

Total
$
1,478

 
$
1,388

 
$
44

(1) 
U.S. small business commercial TDRs are comprised of renegotiated small business card loans.