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

v3.20.4

Outstanding Loans and Leases and Allowance for Credit Losses (Tables)	12 Months Ended
	Dec. 31, 2020
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, 2020 and 2019. 30-59 Days Past Due (1) 60-89 Days Past Due (1) 90 Days or More Past Due (1) Total Past Due 30 Days or More Total Current or Less Than 30 Days Past Due (1) Loans Accounted for Under the Fair Value Option Total Outstandings (Dollars in millions) December 31, 2020 Consumer real estate             Core portfolio Residential mortgage $ 1,157  $ 175  $ 786  $ 2,118  $ 213,155  $ 215,273  Home equity 126  61  269  456  29,872  30,328  Non-core portfolio Residential mortgage 273  122  913  1,308  6,974  8,282  Home equity 28  17  76  121  3,862  3,983  Credit card and other consumer Credit card 445  341  903  1,689  77,019  78,708  Direct/Indirect consumer (2) 209  67  37  313  91,050  91,363  Other consumer —  —  —  —  124  124  Total consumer 2,238  783  2,984  6,005  422,056  428,061  Consumer loans accounted for under the fair value option (3)           $ 735  735  Total consumer loans and leases 2,238  783  2,984  6,005  422,056  735  428,796  Commercial U.S. commercial 561  214  512  1,287  287,441  288,728  Non-U.S. commercial 61  44  11  116  90,344  90,460  Commercial real estate (4) 128  113  226  467  59,897  60,364  Commercial lease financing 86  20  57  163  16,935  17,098  U.S. small business commercial (5) 84  56  123  263  36,206  36,469  Total commercial 920  447  929  2,296  490,823  493,119  Commercial loans accounted for under the fair value option (3)           5,946  5,946  Total commercial loans and leases 920  447  929  2,296  490,823  5,946  499,065  Total loans and leases (6) $ 3,158  $ 1,230  $ 3,913  $ 8,301  $ 912,879  $ 6,681  $ 927,861  Percentage of outstandings 0.34  % 0.13  % 0.42  % 0.89  % 98.39  % 0.72  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $225 million and nonperforming loans of $126 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $103 million and nonperforming loans of $95 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $762 million. Consumer real estate loans current or less than 30 days past due includes $1.2 billion and direct/indirect consumer includes $66 million of nonperforming loans. For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $46.4 billion, U.S. securities-based lending loans of $41.1 billion and non-U.S. consumer loans of $3.0 billion. (3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $298 million and home equity loans of $437 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.9 billion and non-U.S. commercial loans of $3.0 billion. For more information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option. (4)Total outstandings includes U.S. commercial real estate loans of $57.2 billion and non-U.S. commercial real estate loans of $3.2 billion. (5)Includes PPP loans. (6)Total outstandings includes loans and leases pledged as collateral of $15.5 billion. The Corporation also pledged $153.1 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank. 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, 2019 Consumer real estate             Core portfolio Residential mortgage $ 1,378  $ 261  $ 565  $ 2,204  $ 223,566    $ 225,770  Home equity 135  70  198  403  34,823    35,226  Non-core portfolio               Residential mortgage 458  209  1,263  1,930  8,469    10,399  Home equity 34  16  72  122  4,860    4,982  Credit card and other consumer               Credit card 564  429  1,042  2,035  95,573    97,608  Direct/Indirect consumer (2) 297  85  35  417  90,581    90,998  Other consumer  —  —  —  —  192    192  Total consumer 2,866  1,070  3,175  7,111  458,064  465,175  Consumer loans accounted for under the fair value option (3) $ 594  594  Total consumer loans and leases 2,866  1,070  3,175  7,111  458,064  594  465,769  Commercial               U.S. commercial 788  279  371  1,438  305,610    307,048  Non-U.S. commercial 35  23  8  66  104,900    104,966  Commercial real estate (4) 144  19  119  282  62,407    62,689  Commercial lease financing 100  56  39  195  19,685    19,880  U.S. small business commercial 119  56  107  282  15,051    15,333  Total commercial 1,186  433  644  2,263  507,653    509,916  Commercial loans accounted for under the fair value option (3) 7,741  7,741  Total commercial loans and leases 1,186  433  644  2,263  507,653  7,741  517,657  Total loans and leases (5) $ 4,052  $ 1,503  $ 3,819  $ 9,374  $ 965,717  $ 8,335  $ 983,426  Percentage of outstandings 0.41  % 0.15  % 0.39  % 0.95  % 98.20  % 0.85  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $517 million and nonperforming loans of $139 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $206 million and nonperforming loans of $114 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $1.1 billion. Consumer real estate loans current or less than 30 days past due includes $856 million and direct/indirect consumer includes $45 million of nonperforming loans. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $50.4 billion, U.S. securities-based lending loans of $36.7 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 $257 million and home equity loans of $337 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $4.7 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. (4)Total outstandings includes U.S. commercial real estate loans of $59.0 billion and non-U.S. commercial real estate loans of $3.7 billion. (5)Total outstandings includes loans and leases pledged as collateral of $25.9 billion. The Corporation also pledged $168.2 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank.
Schedule of Financing Receivables, Non Accrual Status	The 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, 2020 and 2019. 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 information on the Corporation's interest accrual policies, delinquency status for loan modifications related to the pandemic and the criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles. Credit Quality Nonperforming Loans and Leases Accruing Past Due 90 Days or More (1) December 31 (Dollars in millions) 2020 2019 2020 2019 Residential mortgage (2) $ 2,005  $ 1,470  $ 762  $ 1,088  With no related allowance (3) 1,378  n/a —  —  Home equity (2) 649  536  —  —  With no related allowance (3) 347  n/a —  —  Credit Card n/a n/a 903  1,042  Direct/indirect consumer 71  47  33  33  Total consumer 2,725  2,053  1,698  2,163  U.S. commercial 1,243  1,094  228  106  Non-U.S. commercial 418  43  10  8  Commercial real estate 404  280  6  19  Commercial lease financing 87  32  25  20  U.S. small business commercial 75  50  115  97  Total commercial 2,227  1,499  384  250  Total nonperforming loans $ 4,952  $ 3,552  $ 2,082  $ 2,413  Percentage of outstanding loans and leases 0.54  % 0.36  % 0.23  % 0.25  % (1)For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles. (2)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At December 31, 2020 and 2019 residential mortgage includes $537 million and $740 million of loans on which interest had been curtailed by the FHA, and therefore were no longer accruing interest, although principal was still insured, and $225 million and $348 million of loans on which interest was still accruing. (3)Primarily relates to loans for which the estimated fair value of the underlying collateral less any costs to sell is greater than the amortized cost of the loans as of the reporting date. n/a = not applicable
Financing Receivable Credit Quality Indicators	The following tables present certain credit quality indicators for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by class of financing receivables and year of origination for term loan balances at December 31, 2020, including revolving loans that converted to term loans without an additional credit decision after origination or through a TDR. Residential Mortgage – Credit Quality Indicators By Vintage Term Loans by Origination Year (Dollars in millions) Total as of December 31, 2020 2020 2019 2018 2017 2016 Prior Total Residential Mortgage Refreshed LTV       Less than or equal to 90 percent $ 207,389  $ 68,907  $ 43,771  $ 14,658  $ 21,589  $ 22,967  $ 35,497  Greater than 90 percent but less than or equal to 100 percent 3,138  1,970  684  128  70  96  190  Greater than 100 percent 1,210  702  174  47  39  37  211  Fully-insured loans 11,818  3,826  2,014  370  342  1,970  3,296  Total Residential Mortgage $ 223,555  $ 75,405  $ 46,643  $ 15,203  $ 22,040  $ 25,070  $ 39,194  Total Residential Mortgage Refreshed FICO score Less than 620 $ 2,717  $ 823  $ 177  $ 139  $ 170  $ 150  $ 1,258  Greater than or equal to 620 and less than 680 5,462  1,804  666  468  385  368  1,771  Greater than or equal to 680 and less than 740 25,349  8,533  4,679  1,972  2,427  2,307  5,431  Greater than or equal to 740 178,209  60,419  39,107  12,254  18,716  20,275  27,438  Fully-insured loans 11,818  3,826  2,014  370  342  1,970  3,296  Total Residential Mortgage $ 223,555  $ 75,405  $ 46,643  $ 15,203  $ 22,040  $ 25,070  $ 39,194  Home Equity - Credit Quality Indicators Total Home Equity Loans and Reverse Mortgages (1) Revolving Loans Revolving Loans Converted to Term Loans (Dollars in millions) December 31, 2020 Total Home Equity Refreshed LTV       Less than or equal to 90 percent $ 33,447  $ 1,919  $ 22,639  $ 8,889  Greater than 90 percent but less than or equal to 100 percent 351  126  94  131  Greater than 100 percent 513  172  118  223  Total Home Equity $ 34,311  $ 2,217  $ 22,851  $ 9,243  Total Home Equity Refreshed FICO score Less than 620 $ 1,082  $ 250  $ 244  $ 588  Greater than or equal to 620 and less than 680 1,798  263  568  967  Greater than or equal to 680 and less than 740 5,762  556  2,905  2,301  Greater than or equal to 740 25,669  1,148  19,134  5,387  Total Home Equity $ 34,311  $ 2,217  $ 22,851  $ 9,243  (1)Includes reverse mortgages of $1.3 billion and home equity loans of $885 million which are no longer originated. Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage Direct/Indirect Term Loans by Origination Year Credit Card (Dollars in millions) Total Direct/Indirect as of December 31, 2020 Revolving Loans 2020 2019 2018 2017 2016 Prior Total Credit Card as of December 31, 2020 Revolving Loans Revolving Loans Converted to Term Loans (3) Refreshed FICO score     Less than 620 $ 959  $ 19  $ 111  $ 200  $ 175  $ 243  $ 148  $ 63  $ 4,018  $ 3,832  $ 186  Greater than or equal to 620 and less than 680 2,143  20  653  559  329  301  176  105  9,419  9,201  218  Greater than or equal to 680 and less than 740 7,431  80  2,848  2,015  1,033  739  400  316  27,585  27,392  193  Greater than or equal to 740 36,064  120  12,540  10,588  5,869  3,495  1,781  1,671  37,686  37,642  44  Other internal credit    metrics (1, 2) 44,766  44,098  74  115  84  67  52  276  —  —  —  Total credit card and other consumer $ 91,363  $ 44,337  $ 16,226  $ 13,477  $ 7,490  $ 4,845  $ 2,557  $ 2,431  $ 78,708  $ 78,067  $ 641  (1)Other internal credit metrics may include delinquency status, geography or other factors. (2)Direct/indirect consumer includes $44.1 billion of securities-based lending which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at December 31, 2020. (3)Represents TDRs that were modified into term loans. Commercial – Credit Quality Indicators By Vintage (1, 2) Term Loans Amortized Cost Basis by Origination Year (Dollars in millions) Total as of December 31, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans U.S. Commercial Risk ratings         Pass rated $ 268,812  $ 33,456  $ 33,305  $ 17,363  $ 14,102  $ 7,420  $ 21,784  $ 141,382  Reservable criticized 19,916  2,524  2,542  2,689  854  698  1,402  9,207  Total U.S. Commercial $ 288,728  $ 35,980  $ 35,847  $ 20,052  $ 14,956  $ 8,118  $ 23,186  $ 150,589  Non-U.S. Commercial Risk ratings Pass rated $ 85,914  $ 16,301  $ 11,396  $ 7,451  $ 5,037  $ 1,674  $ 2,194  $ 41,861  Reservable criticized 4,546  914  572  492  436  138  259  1,735  Total Non-U.S. Commercial $ 90,460  $ 17,215  $ 11,968  $ 7,943  $ 5,473  $ 1,812  $ 2,453  $ 43,596  Commercial Real Estate Risk ratings Pass rated $ 50,260  $ 8,429  $ 14,126  $ 8,228  $ 4,599  $ 3,299  $ 6,542  $ 5,037  Reservable criticized 10,104  933  2,558  2,115  1,582  606  1,436  874  Total Commercial Real Estate $ 60,364  $ 9,362  $ 16,684  $ 10,343  $ 6,181  $ 3,905  $ 7,978  $ 5,911  Commercial Lease Financing Risk ratings Pass rated $ 16,384  $ 3,083  $ 3,242  $ 2,956  $ 2,532  $ 1,703  $ 2,868  $ —  Reservable criticized 714  117  117  132  81  88  179  —  Total Commercial Lease Financing $ 17,098  $ 3,200  $ 3,359  $ 3,088  $ 2,613  $ 1,791  $ 3,047  $ —  U.S. Small Business Commercial (3) Risk ratings Pass rated $ 28,786  $ 24,539  $ 1,121  $ 837  $ 735  $ 527  $ 855  $ 172  Reservable criticized 1,148  76  239  210  175  113  322  13  Total U.S. Small Business Commercial $ 29,934  $ 24,615  $ 1,360  $ 1,047  $ 910  $ 640  $ 1,177  $ 185   Total (1, 2) $ 486,584  $ 90,372  $ 69,218  $ 42,473  $ 30,133  $ 16,266  $ 37,841  $ 200,281  (1) Excludes $5.9 billion of loans accounted for under the fair value option at December 31, 2020. (2)     Includes $58 million of loans that converted from revolving to term loans. (3)     Excludes U.S. Small Business Card loans of $6.5 billion. Refreshed FICO scores for this portfolio are $265 million for less than 620; $582 million for greater than or equal to 620 and less than 680; $1.7 billion for greater than or equal to 680 and less than 740; and $3.9 billion greater than or equal to 740.
Troubled Debt Restructurings on Financing Receivables	The table below presents the December 31, 2020, 2019 and 2018 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of consumer real estate loans that were modified in TDRs during 2020, 2019 and 2018. 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 2020, 2019 and 2018 (1) Unpaid Principal Balance Carrying Value Pre-Modification Interest Rate Post-Modification Interest Rate (2) (Dollars in millions) December 31, 2020 Residential mortgage $ 732  $ 646  3.66  % 3.59  % Home equity 87  69  3.67  3.61  Total $ 819  $ 715  3.66  3.59  December 31, 2019 Residential mortgage $ 464  $ 377  4.19  % 4.13  % Home equity 141  101  5.04  4.31  Total $ 605  $ 478  4.39  4.17  December 31, 2018 Residential mortgage $ 774  $ 641  4.33  % 4.21  % Home equity 489  358  4.46  3.74  Total $ 1,263  $ 999  4.38  4.03  (1)For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see Note 1 – Summary of Significant Accounting Principles. (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. The table below presents the December 31, 2020, 2019 and 2018 carrying value for consumer real estate loans that were modified in a TDR during 2020, 2019 and 2018, by type of modification. Consumer Real Estate – Modification Programs (1) TDRs Entered into During (Dollars in millions) 2020 2019 2018 Modifications under government programs $ 13  $ 35  $ 61  Modifications under proprietary programs 570  174  523  Loans discharged in Chapter 7 bankruptcy (2) 53  68  130  Trial modifications 79  201  285  Total modifications $ 715  $ 478  $ 999  (1)For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see Note 1 – Summary of Significant Accounting Principles. (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 2020, 2019 and 2018 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 (1) (Dollars in millions) 2020 2019 2018 Modifications under government programs $ 16  $ 26  $ 39  Modifications under proprietary programs 51  88  158  Loans discharged in Chapter 7 bankruptcy (2) 19  30  64  Trial modifications (3) 54  57  107  Total modifications $ 140  $ 201  $ 368  (1)For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see Note 1 – Summary of Significant Accounting Principles. (2)Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. (3)Includes trial modification offers to which the customer did not respond. The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the December 31, 2020, 2019 and 2018 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during 2020, 2019 and 2018. Credit Card and Other Consumer – TDRs Entered into During 2020, 2019 and 2018 (1)   Unpaid Principal Balance Carrying Value (2) Pre-Modification Interest Rate Post-Modification Interest Rate (Dollars in millions) December 31, 2020 Credit card $ 269  $ 277  18.16  % 5.63  % Direct/Indirect consumer 52  37  5.83  5.83  Total $ 321  $ 314  16.70  5.65  December 31, 2019 Credit card $ 340  $ 355  19.18  % 5.35  % Direct/Indirect consumer 40  21  5.23  5.21  Total $ 380  $ 376  18.42  5.34  December 31, 2018 Credit card $ 278  $ 292  19.49  % 5.24  % Direct/Indirect consumer 42  23  5.10  4.95  Total $ 320  $ 315  18.45  5.22  (1)For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see Note 1 – Summary of Significant Accounting Principles. (2)Includes accrued interest and fees. The table below presents the December 31, 2020, 2019 and 2018 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during 2020, 2019 and 2018, by program type. Credit Card and Other Consumer – TDRs by Program Type at December 31 (1) (Dollars in millions) 2020 2019 2018 Internal programs $ 225  $ 247  $ 199  External programs 73  108  93  Other 16  21  23  Total $ 314  $ 376  $ 315  (1)Includes accrued interest and fees. For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.
Changes in the Allowance for Credit Losses	The changes in the allowance for credit losses, including net charge-offs and provision for loan and lease losses, are detailed in the table below. Consumer Real Estate Credit Card and Other Consumer Commercial Total (Dollars in millions) 2020 Allowance for loan and lease losses, January 1 $ 440  $ 7,430  $ 4,488  $ 12,358  Loans and leases charged off (98) (3,646) (1,675) (5,419) Recoveries of loans and leases previously charged off 201  891  206  1,298  Net charge-offs 103  (2,755) (1,469) (4,121) Provision for loan and lease losses 307  4,538  5,720  10,565  Other (1) 8  —  (8) —  Allowance for loan and lease losses, December 31 858  9,213  8,731  18,802  Reserve for unfunded lending commitments, January 1 119  —  1,004  1,123  Provision for unfunded lending commitments 18  —  737  755  Reserve for unfunded lending commitments, December 31 137  —  1,741  1,878  Allowance for credit losses, December 31 $ 995  $ 9,213  $ 10,472  $ 20,680  2019 Allowance for loan and lease losses, January 1 $ 928  $ 3,874  $ 4,799  $ 9,601  Loans and leases charged off (522) (4,302) (822) (5,646) Recoveries of loans and leases previously charged off 927  911  160  1,998  Net charge-offs 405  (3,391) (662) (3,648) Provision for loan and lease losses (680) 3,512  742  3,574  Other (1) (107) 1  (5) (111) Allowance for loan and lease losses, December 31 546  3,996  4,874  9,416  Reserve for unfunded lending commitments, January 1 —  —  797  797  Provision for unfunded lending commitments —  —  16  16  Reserve for unfunded lending commitments, December 31 —  —  813  813  Allowance for credit losses, December 31 $ 546  $ 3,996  $ 5,687  $ 10,229  2018 Allowance for loan and lease losses, January 1 $ 1,720  $ 3,663  $ 5,010  $ 10,393  Loans and leases charged off (690) (4,037) (675) (5,402) Recoveries of loans and leases previously charged off 664  823  152  1,639  Net charge-offs (26) (3,214) (523) (3,763) Provision for loan and lease losses (492) 3,441  313  3,262  Other (1) (274) (16) (1) (291) Allowance for loan and lease losses, December 31 928  3,874  4,799  9,601  Reserve for unfunded lending commitments, January 1 —  —  777  777  Provision for unfunded lending commitments —  —  20  20  Reserve for unfunded lending commitments, December 31 —  —  797  797  Allowance for credit losses, December 31 $ 928  $ 3,874  $ 5,596  $ 10,398  (1)Primarily represents write-offs of purchased credit-impaired loans in 2019, and the net impact of portfolio sales, transfers to held-for-sale and transfers to foreclosed properties.