Outstanding Loans and Leases (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
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 December 31, 2017 and 2016.
In 2017, the Corporation sold its non-U.S. consumer credit card business. This business, which at December 31, 2016 included $9.2 billion of non-U.S. credit card loans and the related allowance for loan and lease losses of $243 million, was presented in assets of business held for sale on the Consolidated Balance Sheet. In this Note, all applicable amounts for December 31, 2016 include these balances, unless otherwise noted. For more information, see Note 1 – Summary of Significant Accounting Principles.
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30-59 Days Past Due (1)
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60-89 Days Past Due (1)
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90 Days or More
Past Due (2)
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Total Past Due 30 Days
or More
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Total Current or Less Than 30 Days Past Due (3)
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Purchased Credit-impaired (4)
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Loans Accounted for Under the Fair Value Option |
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Total
Outstandings
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(Dollars in millions) |
December 31, 2017 |
Consumer real estate |
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Core portfolio |
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Residential mortgage |
$ |
1,242 |
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|
$ |
321 |
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$ |
1,040 |
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$ |
2,603 |
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$ |
174,015 |
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$ |
176,618 |
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Home equity |
215 |
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|
108 |
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|
473 |
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|
796 |
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43,449 |
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44,245 |
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Non-core portfolio |
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Residential mortgage (5)
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1,028 |
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|
468 |
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3,535 |
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5,031 |
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14,161 |
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$ |
8,001 |
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27,193 |
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Home equity |
224 |
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|
121 |
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|
572 |
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|
917 |
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9,866 |
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|
2,716 |
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13,499 |
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Credit card and other consumer |
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U.S. credit card |
542 |
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|
405 |
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|
900 |
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|
1,847 |
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94,438 |
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96,285 |
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Direct/Indirect consumer (6)
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320 |
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|
102 |
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43 |
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|
465 |
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93,365 |
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93,830 |
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Other consumer (7)
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10 |
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2 |
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1 |
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|
13 |
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2,665 |
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2,678 |
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Total consumer |
3,581 |
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|
1,527 |
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6,564 |
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|
11,672 |
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431,959 |
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|
10,717 |
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454,348 |
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Consumer loans accounted for under the fair value option (8)
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$ |
928 |
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|
928 |
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Total consumer loans and leases |
3,581 |
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|
1,527 |
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6,564 |
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11,672 |
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431,959 |
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10,717 |
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928 |
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455,276 |
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Commercial |
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U.S. commercial |
547 |
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244 |
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|
425 |
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1,216 |
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283,620 |
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284,836 |
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Non-U.S. commercial |
52 |
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1 |
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3 |
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|
56 |
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97,736 |
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97,792 |
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Commercial real estate (9)
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48 |
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10 |
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29 |
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|
87 |
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58,211 |
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58,298 |
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Commercial lease financing |
110 |
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68 |
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26 |
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204 |
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21,912 |
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22,116 |
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U.S. small business commercial |
95 |
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45 |
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88 |
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|
228 |
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13,421 |
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13,649 |
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Total commercial |
852 |
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368 |
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571 |
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1,791 |
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|
474,900 |
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|
476,691 |
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Commercial loans accounted for under the fair value option (8)
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4,782 |
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4,782 |
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Total commercial loans and leases |
852 |
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368 |
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|
571 |
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1,791 |
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474,900 |
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4,782 |
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481,473 |
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Total loans and leases (10)
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$ |
4,433 |
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$ |
1,895 |
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$ |
7,135 |
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$ |
13,463 |
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$ |
906,859 |
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$ |
10,717 |
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$ |
5,710 |
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$ |
936,749 |
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Percentage of outstandings |
0.48 |
% |
|
0.20 |
% |
|
0.76 |
% |
|
1.44 |
% |
|
96.81 |
% |
|
1.14 |
% |
|
0.61 |
% |
|
100.00 |
% |
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(1) |
Consumer real estate loans 30-59 days past due includes fully-insured loans of $850 million and nonperforming loans of $253 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $386 million and nonperforming loans of $195 million.
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(2) |
Consumer real estate includes fully-insured loans of $3.2 billion.
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(3) |
Consumer real estate includes $2.3 billion and direct/indirect consumer includes $43 million of nonperforming loans.
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(4) |
PCI loan amounts are shown gross of the valuation allowance. |
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(5) |
Total outstandings includes pay option loans of $1.4 billion. The Corporation no longer originates this product.
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(6) |
Total outstandings includes auto and specialty lending loans of $49.9 billion, unsecured consumer lending loans of $469 million, U.S. securities-based lending loans of $39.8 billion, non-U.S. consumer loans of $3.0 billion and other consumer loans of $684 million.
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(7) |
Total outstandings includes consumer leases of $2.5 billion and consumer overdrafts of $163 million.
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(8) |
Consumer loans accounted for under the fair value option includes residential mortgage loans of $567 million and home equity loans of $361 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.6 billion and non-U.S. commercial loans of $2.2 billion. For more information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option.
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(9) |
Total outstandings includes U.S. commercial real estate loans of $54.8 billion and non-U.S. commercial real estate loans of $3.5 billion.
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(10) |
The Corporation pledged $160.3 billion of loans to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank (FHLB). This amount is not included in the parenthetical disclosure of loans and leases pledged as collateral on the Consolidated Balance Sheet as there were no related outstanding borrowings.
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30-59 Days Past Due (1)
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60-89 Days Past Due (1)
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90 Days or More Past Due (2)
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Total Past Due 30 Days or More |
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Total
Current or
Less Than
30 Days
Past Due (3)
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Purchased Credit-impaired (4)
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Loans
Accounted
for Under
the Fair
Value Option
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Total Outstandings |
(Dollars in millions) |
December 31, 2016 |
Consumer real estate |
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Core portfolio |
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Residential mortgage |
$ |
1,340 |
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$ |
425 |
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$ |
1,213 |
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$ |
2,978 |
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$ |
153,519 |
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$ |
156,497 |
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Home equity |
239 |
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|
105 |
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|
451 |
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|
795 |
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48,578 |
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49,373 |
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Non-core portfolio |
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Residential mortgage (5)
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1,338 |
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|
674 |
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|
5,343 |
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|
7,355 |
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|
17,818 |
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$ |
10,127 |
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|
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|
35,300 |
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Home equity |
260 |
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|
136 |
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|
832 |
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|
1,228 |
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|
12,231 |
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|
3,611 |
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|
17,070 |
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Credit card and other consumer |
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U.S. credit card |
472 |
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|
341 |
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|
782 |
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|
1,595 |
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|
90,683 |
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|
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|
92,278 |
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Non-U.S. credit card |
37 |
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|
27 |
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|
66 |
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|
130 |
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|
9,084 |
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|
9,214 |
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Direct/Indirect consumer (6)
|
272 |
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|
79 |
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|
34 |
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|
385 |
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|
93,704 |
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|
94,089 |
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Other consumer (7)
|
26 |
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|
8 |
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|
6 |
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|
40 |
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|
2,459 |
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|
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|
2,499 |
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Total consumer |
3,984 |
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|
1,795 |
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|
8,727 |
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|
14,506 |
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|
428,076 |
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|
13,738 |
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|
456,320 |
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Consumer loans accounted for under the fair value option (8)
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$ |
1,051 |
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|
1,051 |
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Total consumer loans and leases |
3,984 |
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|
1,795 |
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|
8,727 |
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|
14,506 |
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|
428,076 |
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|
13,738 |
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|
1,051 |
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|
457,371 |
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Commercial |
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|
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U.S. commercial |
952 |
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|
263 |
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|
400 |
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|
1,615 |
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|
268,757 |
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|
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|
270,372 |
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Non-U.S. commercial |
348 |
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|
4 |
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|
5 |
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|
357 |
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|
89,040 |
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|
|
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|
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|
89,397 |
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Commercial real estate (9)
|
20 |
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|
10 |
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|
56 |
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|
86 |
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|
57,269 |
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|
57,355 |
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Commercial lease financing |
167 |
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|
21 |
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|
27 |
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|
215 |
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|
22,160 |
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|
22,375 |
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U.S. small business commercial |
96 |
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|
49 |
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|
84 |
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|
229 |
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|
12,764 |
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|
|
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|
12,993 |
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Total commercial |
1,583 |
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|
347 |
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|
572 |
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|
2,502 |
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|
449,990 |
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|
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|
452,492 |
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Commercial loans accounted for under the fair value option (8)
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|
6,034 |
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|
6,034 |
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Total commercial loans and leases |
1,583 |
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|
347 |
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|
572 |
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|
2,502 |
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|
449,990 |
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|
6,034 |
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|
458,526 |
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Total consumer and commercial loans and leases (10)
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$ |
5,567 |
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$ |
2,142 |
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$ |
9,299 |
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$ |
17,008 |
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$ |
878,066 |
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$ |
13,738 |
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$ |
7,085 |
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$ |
915,897 |
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Less: Loans of business held for sale (10)
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(9,214 |
) |
Total loans and leases (11)
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$ |
906,683 |
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Percentage of outstandings (10)
|
0.61 |
% |
|
0.23 |
% |
|
1.02 |
% |
|
1.86 |
% |
|
95.87 |
% |
|
1.50 |
% |
|
0.77 |
% |
|
100.00 |
% |
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(1) |
Consumer real estate loans 30-59 days past due includes fully-insured loans of $1.1 billion and nonperforming loans of $266 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $547 million and nonperforming loans of $216 million.
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(2) |
Consumer real estate includes fully-insured loans of $4.8 billion.
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(3) |
Consumer real estate includes $2.5 billion and direct/indirect consumer includes $27 million of nonperforming loans.
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(4) |
PCI loan amounts are shown gross of the valuation allowance. |
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(5) |
Total outstandings includes pay option loans of $1.8 billion. The Corporation no longer originates this product.
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(6) |
Total outstandings includes auto and specialty lending loans of $48.9 billion, unsecured consumer lending loans of $585 million, U.S. securities-based lending loans of $40.1 billion, non-U.S. consumer loans of $3.0 billion, student loans of $497 million and other consumer loans of $1.1 billion.
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(7) |
Total outstandings includes consumer finance loans of $465 million, consumer leases of $1.9 billion and consumer overdrafts of $157 million.
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(8) |
Consumer loans accounted for under the fair value option includes residential mortgage loans of $710 million and home equity loans of $341 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.9 billion and non-U.S. commercial loans of $3.1 billion. For more information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option.
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(9) |
Total outstandings includes U.S. commercial real estate loans of $54.3 billion and non-U.S. commercial real estate loans of $3.1 billion.
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(10) |
Includes non-U.S. credit card loans, which were included in assets of business held for sale on the Consolidated Balance Sheet. |
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(11) |
The Corporation pledged $143.1 billion of loans to secure potential borrowing capacity with the Federal Reserve Bank and FHLB. This amount is not included in the parenthetical disclosure of loans and leases pledged as collateral on the Consolidated Balance Sheet as there were no related outstanding borrowings.
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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, 2017 and 2016. 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.
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Credit Quality |
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Nonperforming Loans
and Leases
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|
Accruing Past Due
90 Days or More
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|
December 31 2017 |
(Dollars in millions) |
2017 |
|
2016 |
|
2017 |
|
2016 |
Consumer real estate |
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|
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Core portfolio |
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Residential mortgage (1)
|
$ |
1,087 |
|
|
$ |
1,274 |
|
|
$ |
417 |
|
|
$ |
486 |
|
Home equity |
1,079 |
|
|
969 |
|
|
— |
|
|
— |
|
Non-core portfolio |
|
|
|
|
|
|
|
|
|
|
Residential mortgage (1)
|
1,389 |
|
|
1,782 |
|
|
2,813 |
|
|
4,307 |
|
Home equity |
1,565 |
|
|
1,949 |
|
|
— |
|
|
— |
|
Credit card and other consumer |
|
|
|
|
|
|
|
|
|
U.S. credit card |
n/a |
|
|
n/a |
|
|
900 |
|
|
782 |
|
Non-U.S. credit card |
n/a |
|
|
n/a |
|
|
— |
|
|
66 |
|
Direct/Indirect consumer |
46 |
|
|
28 |
|
|
40 |
|
|
34 |
|
Other consumer |
— |
|
|
2 |
|
|
— |
|
|
4 |
|
Total consumer |
5,166 |
|
|
6,004 |
|
|
4,170 |
|
|
5,679 |
|
Commercial |
|
|
|
|
|
|
|
|
|
|
|
U.S. commercial |
814 |
|
|
1,256 |
|
|
144 |
|
|
106 |
|
Non-U.S. commercial |
299 |
|
|
279 |
|
|
3 |
|
|
5 |
|
Commercial real estate |
112 |
|
|
72 |
|
|
4 |
|
|
7 |
|
Commercial lease financing |
24 |
|
|
36 |
|
|
19 |
|
|
19 |
|
U.S. small business commercial |
55 |
|
|
60 |
|
|
75 |
|
|
71 |
|
Total commercial |
1,304 |
|
|
1,703 |
|
|
245 |
|
|
208 |
|
Total loans and leases |
$ |
6,470 |
|
|
$ |
7,707 |
|
|
$ |
4,415 |
|
|
$ |
5,887 |
|
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|
(1) |
Residential mortgage loans in the core and non-core portfolios accruing past due 90 days or more are fully-insured loans. At December 31, 2017 and 2016, residential mortgage includes $2.2 billion and $3.0 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 $1.0 billion and $1.8 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, 2017 and 2016.
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Consumer Real Estate – Credit Quality Indicators (1)
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|
|
|
|
|
|
|
|
|
|
|
Core Residential
Mortgage (2)
|
|
Non-core Residential Mortgage (2)
|
|
Residential Mortgage PCI (3)
|
|
Core Home Equity (2)
|
|
Non-core Home Equity (2)
|
|
Home
Equity PCI
|
(Dollars in millions) |
December 31, 2017 |
Refreshed LTV (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than or equal to 90 percent |
$ |
153,669 |
|
|
$ |
12,135 |
|
|
$ |
6,872 |
|
|
$ |
43,048 |
|
|
$ |
7,944 |
|
|
$ |
1,781 |
|
Greater than 90 percent but less than or equal to 100 percent |
3,082 |
|
|
850 |
|
|
559 |
|
|
549 |
|
|
1,053 |
|
|
412 |
|
Greater than 100 percent |
1,322 |
|
|
1,011 |
|
|
570 |
|
|
648 |
|
|
1,786 |
|
|
523 |
|
Fully-insured loans (5)
|
18,545 |
|
|
5,196 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total consumer real estate |
$ |
176,618 |
|
|
$ |
19,192 |
|
|
$ |
8,001 |
|
|
$ |
44,245 |
|
|
$ |
10,783 |
|
|
$ |
2,716 |
|
Refreshed FICO score |
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
$ |
2,234 |
|
|
$ |
2,390 |
|
|
$ |
1,941 |
|
|
$ |
1,169 |
|
|
$ |
2,098 |
|
|
$ |
452 |
|
Greater than or equal to 620 and less than 680 |
4,531 |
|
|
2,086 |
|
|
1,657 |
|
|
2,371 |
|
|
2,393 |
|
|
466 |
|
Greater than or equal to 680 and less than 740 |
22,934 |
|
|
3,519 |
|
|
2,396 |
|
|
8,115 |
|
|
2,723 |
|
|
786 |
|
Greater than or equal to 740 |
128,374 |
|
|
6,001 |
|
|
2,007 |
|
|
32,590 |
|
|
3,569 |
|
|
1,012 |
|
Fully-insured loans (5)
|
18,545 |
|
|
5,196 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total consumer real estate |
$ |
176,618 |
|
|
$ |
19,192 |
|
|
$ |
8,001 |
|
|
$ |
44,245 |
|
|
$ |
10,783 |
|
|
$ |
2,716 |
|
|
|
(1) |
Excludes $928 million of loans accounted for under the fair value option.
|
|
|
(3) |
Includes $1.2 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 |
|
|
|
|
|
|
|
U.S. Credit
Card
|
|
Direct/Indirect
Consumer
|
|
Other
Consumer
|
(Dollars in millions) |
December 31, 2017 |
Refreshed FICO score |
|
|
|
|
|
|
|
|
Less than 620 |
$ |
4,730 |
|
|
$ |
1,630 |
|
|
$ |
49 |
|
Greater than or equal to 620 and less than 680 |
12,422 |
|
|
2,000 |
|
|
143 |
|
Greater than or equal to 680 and less than 740 |
35,656 |
|
|
11,906 |
|
|
398 |
|
Greater than or equal to 740 |
43,477 |
|
|
34,838 |
|
|
1,921 |
|
Other internal credit metrics (1, 2)
|
— |
|
|
43,456 |
|
|
167 |
|
Total credit card and other consumer |
$ |
96,285 |
|
|
$ |
93,830 |
|
|
$ |
2,678 |
|
|
|
(1) |
Other internal credit metrics may include delinquency status, geography or other factors. |
|
|
(2) |
Direct/indirect consumer includes $42.8 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial – Credit Quality Indicators (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Commercial
|
|
Non-U.S.
Commercial
|
|
Commercial
Real Estate
|
|
Commercial Lease
Financing
|
|
U.S. Small Business
Commercial (2)
|
(Dollars in millions) |
December 31, 2017 |
Risk ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass rated |
$ |
275,904 |
|
|
$ |
96,199 |
|
|
$ |
57,732 |
|
|
$ |
21,535 |
|
|
$ |
322 |
|
Reservable criticized |
8,932 |
|
|
1,593 |
|
|
566 |
|
|
581 |
|
|
50 |
|
Refreshed FICO score (3)
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
|
|
|
|
|
|
|
|
|
223 |
|
Greater than or equal to 620 and less than 680 |
|
|
|
|
|
|
|
|
625 |
|
Greater than or equal to 680 and less than 740 |
|
|
|
|
|
|
|
|
1,875 |
|
Greater than or equal to 740 |
|
|
|
|
|
|
|
|
3,713 |
|
Other internal credit metrics (3, 4)
|
|
|
|
|
|
|
|
|
6,841 |
|
Total commercial |
$ |
284,836 |
|
|
$ |
97,792 |
|
|
$ |
58,298 |
|
|
$ |
22,116 |
|
|
$ |
13,649 |
|
|
|
(1) |
Excludes $4.8 billion of loans accounted for under the fair value option.
|
|
|
(2) |
U.S. small business commercial includes $709 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, 2017, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Residential
Mortgage (2)
|
|
Non-core Residential Mortgage (2)
|
|
Residential Mortgage PCI (3)
|
|
Core Home Equity (2)
|
|
Non-core Home Equity (2)
|
|
Home
Equity PCI
|
(Dollars in millions) |
December 31, 2016 |
Refreshed LTV (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than or equal to 90 percent |
$ |
129,737 |
|
|
$ |
14,280 |
|
|
$ |
7,811 |
|
|
$ |
47,171 |
|
|
$ |
8,480 |
|
|
$ |
1,942 |
|
Greater than 90 percent but less than or equal to 100 percent |
3,634 |
|
|
1,446 |
|
|
1,021 |
|
|
1,006 |
|
|
1,668 |
|
|
630 |
|
Greater than 100 percent |
1,872 |
|
|
1,972 |
|
|
1,295 |
|
|
1,196 |
|
|
3,311 |
|
|
1,039 |
|
Fully-insured loans (5)
|
21,254 |
|
|
7,475 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total consumer real estate |
$ |
156,497 |
|
|
$ |
25,173 |
|
|
$ |
10,127 |
|
|
$ |
49,373 |
|
|
$ |
13,459 |
|
|
$ |
3,611 |
|
Refreshed FICO score |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
$ |
2,479 |
|
|
$ |
3,198 |
|
|
$ |
2,741 |
|
|
$ |
1,254 |
|
|
$ |
2,692 |
|
|
$ |
559 |
|
Greater than or equal to 620 and less than 680 |
5,094 |
|
|
2,807 |
|
|
2,241 |
|
|
2,853 |
|
|
3,094 |
|
|
636 |
|
Greater than or equal to 680 and less than 740 |
22,629 |
|
|
4,512 |
|
|
2,916 |
|
|
10,069 |
|
|
3,176 |
|
|
1,069 |
|
Greater than or equal to 740 |
105,041 |
|
|
7,181 |
|
|
2,229 |
|
|
35,197 |
|
|
4,497 |
|
|
1,347 |
|
Fully-insured loans (5)
|
21,254 |
|
|
7,475 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Total consumer real estate |
$ |
156,497 |
|
|
$ |
25,173 |
|
|
$ |
10,127 |
|
|
$ |
49,373 |
|
|
$ |
13,459 |
|
|
$ |
3,611 |
|
|
|
(1) |
Excludes $1.1 billion of loans accounted for under the fair value option.
|
|
|
(3) |
Includes $1.6 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 |
|
|
|
|
|
|
|
|
|
U.S. Credit
Card
|
|
Non-U.S.
Credit Card
|
|
Direct/Indirect
Consumer
|
|
Other
Consumer (1)
|
(Dollars in millions) |
December 31, 2016 |
Refreshed FICO score |
|
|
|
|
|
|
|
|
|
|
|
Less than 620 |
$ |
4,431 |
|
|
$ |
— |
|
|
$ |
1,478 |
|
|
$ |
187 |
|
Greater than or equal to 620 and less than 680 |
12,364 |
|
|
— |
|
|
2,070 |
|
|
222 |
|
Greater than or equal to 680 and less than 740 |
34,828 |
|
|
— |
|
|
12,491 |
|
|
404 |
|
Greater than or equal to 740 |
40,655 |
|
|
— |
|
|
33,420 |
|
|
1,525 |
|
Other internal credit metrics (2, 3, 4)
|
— |
|
|
9,214 |
|
|
44,630 |
|
|
161 |
|
Total credit card and other consumer |
$ |
92,278 |
|
|
$ |
9,214 |
|
|
$ |
94,089 |
|
|
$ |
2,499 |
|
|
|
(1) |
At December 31, 2016, 19 percent of the other consumer portfolio was 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 $43.1 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $499 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 was evaluated using internal credit metrics, including delinquency status. At December 31, 2016, 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Commercial
|
|
Non-U.S.
Commercial
|
|
Commercial
Real Estate
|
|
Commercial Lease
Financing
|
|
U.S. Small Business
Commercial (2)
|
(Dollars in millions) |
December 31, 2016 |
Risk ratings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pass rated |
$ |
261,214 |
|
|
$ |
85,689 |
|
|
$ |
56,957 |
|
|
$ |
21,565 |
|
|
$ |
453 |
|
Reservable criticized |
9,158 |
|
|
3,708 |
|
|
398 |
|
|
810 |
|
|
71 |
|
Refreshed FICO score (3)
|
|
|
|
|
|
|
|
|
|
Less than 620 |
|
|
|
|
|
|
|
|
200 |
|
Greater than or equal to 620 and less than 680 |
|
|
|
|
|
|
|
|
591 |
|
Greater than or equal to 680 and less than 740 |
|
|
|
|
|
|
|
|
1,741 |
|
Greater than or equal to 740 |
|
|
|
|
|
|
|
|
3,264 |
|
Other internal credit metrics (3, 4)
|
|
|
|
|
|
|
|
|
6,673 |
|
Total commercial |
$ |
270,372 |
|
|
$ |
89,397 |
|
|
$ |
57,355 |
|
|
$ |
22,375 |
|
|
$ |
12,993 |
|
|
|
(1) |
Excludes $6.0 billion of loans accounted for under the fair value option.
|
|
|
(2) |
U.S. small business commercial includes $755 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, 2016, 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 table below 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 2017 and 2016 were primarily due to an increase in the expected principal and interest cash flows due to lower default estimates and rising interest rate environment.
|
|
|
|
|
|
|
|
|
Rollforward of Accretable Yield |
|
|
|
|
|
(Dollars in millions) |
|
|
Accretable yield, January 1, 2016 |
|
$ |
4,569 |
|
Accretion |
|
(722 |
) |
Disposals/transfers |
|
(486 |
) |
Reclassifications from nonaccretable difference |
|
444 |
|
Accretable yield, December 31, 2016 |
|
3,805 |
|
Accretion |
|
(601 |
) |
Disposals/transfers |
|
(634 |
) |
Reclassifications from nonaccretable difference |
|
219 |
|
Accretable yield, December 31, 2017 |
|
$ |
2,789 |
|
|
Consumer real estate |
|
Financing Receivable, Impaired [Line Items] |
|
Impaired Financing Receivables |
The following table provides the unpaid principal balance, carrying value and related allowance at December 31, 2017 and 2016, and the average carrying value and interest income recognized for 2017, 2016 and 2015 for impaired loans in the Corporation’s Consumer Real Estate portfolio segment. 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unpaid Principal
Balance
|
|
Carrying
Value
|
|
Related
Allowance
|
|
Unpaid Principal
Balance
|
|
Carrying
Value
|
|
Related
Allowance
|
(Dollars in millions) |
December 31, 2017 |
|
December 31, 2016 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
8,856 |
|
|
$ |
6,870 |
|
|
$ |
— |
|
|
$ |
11,151 |
|
|
$ |
8,695 |
|
|
$ |
— |
|
Home equity |
3,622 |
|
|
1,956 |
|
|
— |
|
|
3,704 |
|
|
1,953 |
|
|
— |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
2,908 |
|
|
$ |
2,828 |
|
|
$ |
174 |
|
|
$ |
4,041 |
|
|
$ |
3,936 |
|
|
$ |
219 |
|
Home equity |
972 |
|
|
900 |
|
|
174 |
|
|
910 |
|
|
824 |
|
|
137 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
11,764 |
|
|
$ |
9,698 |
|
|
$ |
174 |
|
|
$ |
15,192 |
|
|
$ |
12,631 |
|
|
$ |
219 |
|
Home equity |
4,594 |
|
|
2,856 |
|
|
174 |
|
|
4,614 |
|
|
2,777 |
|
|
137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Carrying Value |
|
Interest Income Recognized (1)
|
|
Average Carrying Value |
|
Interest Income Recognized (1)
|
|
Average Carrying Value |
|
Interest Income Recognized (1)
|
|
2017 |
|
2016 |
|
2015 |
With no recorded allowance |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
7,737 |
|
|
$ |
311 |
|
|
$ |
10,178 |
|
|
$ |
360 |
|
|
$ |
13,867 |
|
|
$ |
403 |
|
Home equity |
1,997 |
|
|
109 |
|
|
1,906 |
|
|
90 |
|
|
1,777 |
|
|
89 |
|
With an allowance recorded |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
3,414 |
|
|
$ |
123 |
|
|
$ |
5,067 |
|
|
$ |
167 |
|
|
$ |
7,290 |
|
|
$ |
236 |
|
Home equity |
858 |
|
|
24 |
|
|
852 |
|
|
24 |
|
|
785 |
|
|
24 |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage |
$ |
11,151 |
|
|
$ |
434 |
|
|
$ |
15,245 |
|
|
$ |
527 |
|
|
$ |
21,157 |
|
|
$ |
639 |
|
Home equity |
2,855 |
|
|
133 |
|
|
2,758 |
|
|
114 |
|
|
2,562 |
|
|
113 |
|
|
|
(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 carrying value of consumer real estate loans that entered into payment default during 2017, 2016 and 2015 that were modified in a TDR during the 12 months preceding payment default. A payment default for consumer real estate TDRs is recognized when a borrower has missed three monthly payments (not necessarily consecutively) since modification.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months |
|
|
|
|
|
(Dollars in millions) |
2017 |
|
2016 |
|
2015 |
Modifications under government programs |
$ |
81 |
|
|
$ |
262 |
|
|
$ |
457 |
|
Modifications under proprietary programs |
138 |
|
|
196 |
|
|
287 |
|
Loans discharged in Chapter 7 bankruptcy (1)
|
116 |
|
|
158 |
|
|
285 |
|
Trial modifications (2)
|
391 |
|
|
824 |
|
|
3,178 |
|
Total modifications |
$ |
726 |
|
|
$ |
1,440 |
|
|
$ |
4,207 |
|
|
|
(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 presents the December 31, 2017, 2016 and 2015 carrying value for consumer real estate loans that were modified in a TDR during 2017, 2016 and 2015, by type of modification.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate – Modification Programs |
|
|
|
|
|
|
|
|
|
|
|
TDRs Entered into During |
(Dollars in millions) |
2017 |
|
2016 |
|
2015 |
Modifications under government programs |
|
|
|
|
|
Contractual interest rate reduction |
$ |
59 |
|
|
$ |
151 |
|
|
$ |
431 |
|
Principal and/or interest forbearance |
4 |
|
|
13 |
|
|
11 |
|
Other modifications (1)
|
22 |
|
|
23 |
|
|
46 |
|
Total modifications under government programs |
85 |
|
|
187 |
|
|
488 |
|
Modifications under proprietary programs |
|
|
|
|
|
Contractual interest rate reduction |
281 |
|
|
235 |
|
|
219 |
|
Capitalization of past due amounts |
63 |
|
|
40 |
|
|
79 |
|
Principal and/or interest forbearance |
38 |
|
|
72 |
|
|
168 |
|
Other modifications (1)
|
55 |
|
|
75 |
|
|
129 |
|
Total modifications under proprietary programs |
437 |
|
|
422 |
|
|
595 |
|
Trial modifications |
569 |
|
|
831 |
|
|
1,968 |
|
Loans discharged in Chapter 7 bankruptcy (2)
|
211 |
|
|
226 |
|
|
379 |
|
Total modifications |
$ |
1,302 |
|
|
$ |
1,666 |
|
|
$ |
3,430 |
|
|
|
(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 December 31, 2017, 2016 and 2015 unpaid principal balance, carrying value, and average pre- and post-modification interest rates on consumer real estate loans that were modified in TDRs during 2017, 2016 and 2015, 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.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Real Estate – TDRs Entered into During 2017, 2016 and 2015 (1)
|
|
|
|
Unpaid Principal Balance |
|
Carrying
Value
|
|
Pre-Modification Interest Rate |
|
Post-Modification Interest Rate (2)
|
|
Net
Charge-offs (3)
|
(Dollars in millions) |
December 31, 2017 |
|
2017 |
Residential mortgage |
$ |
824 |
|
|
$ |
712 |
|
|
4.43 |
% |
|
4.16 |
% |
|
$ |
6 |
|
Home equity |
764 |
|
|
590 |
|
|
4.22 |
|
|
3.49 |
|
|
42 |
|
Total |
$ |
1,588 |
|
|
$ |
1,302 |
|
|
4.33 |
|
|
3.83 |
|
|
$ |
48 |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2016 |
|
2016 |
Residential mortgage |
$ |
1,130 |
|
|
$ |
1,017 |
|
|
4.73 |
% |
|
4.16 |
% |
|
$ |
11 |
|
Home equity |
849 |
|
|
649 |
|
|
3.95 |
|
|
2.72 |
|
|
61 |
|
Total |
$ |
1,979 |
|
|
$ |
1,666 |
|
|
4.40 |
|
|
3.54 |
|
|
$ |
72 |
|
|
|
|
|
|
|
|
| |