Annual report pursuant to Section 13 and 15(d)

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

v3.22.0.1
Outstanding Loans and Leases and Allowance for Credit Losses (Tables)
12 Months Ended
Dec. 31, 2021
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, 2021 and 2020.
30-59 Days
 Past Due (1)
60-89 Days
 Past Due (1)
90 Days or
More
Past Due (1)
Total Past
Due 30 Days
or More
Total
 Current or
 Less Than
 30 Days
 Past Due (1)
Loans
 Accounted
 for Under
 the Fair
 Value
 Option
Total
Outstandings
(Dollars in millions) December 31, 2021
Consumer real estate            
Residential mortgage $ 1,005  $ 297  $ 1,571  $ 2,873  $ 219,090  $ 221,963 
Home equity 123  69  369  561  27,374  27,935 
Credit card and other consumer
Credit card 298  212  487  997  80,441  81,438 
Direct/Indirect consumer (2)
147  52  18  217  103,343  103,560 
Other consumer         190  190 
Total consumer 1,573  630  2,445  4,648  430,438  435,086 
Consumer loans accounted for under the fair value option (3)
          $ 618  618 
Total consumer loans and leases 1,573  630  2,445  4,648  430,438  618  435,704 
Commercial
U.S. commercial 815  308  396  1,519  324,417  325,936 
Non-U.S. commercial 148  20  83  251  113,015  113,266 
Commercial real estate (4)
115  34  285  434  62,575  63,009 
Commercial lease financing 104  28  13  145  14,680  14,825 
U.S. small business commercial (5)
129  259  89  477  18,706  19,183 
Total commercial 1,311  649  866  2,826  533,393  536,219 
Commercial loans accounted for under the fair value option (3)
          7,201  7,201 
Total commercial loans and leases 1,311  649  866  2,826  533,393  7,201  543,420 
Total loans and leases (6)
$ 2,884  $ 1,279  $ 3,311  $ 7,474  $ 963,831  $ 7,819  $ 979,124 
Percentage of outstandings 0.29  % 0.13  % 0.34  % 0.76  % 98.44  % 0.80  % 100.00  %
(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $164 million and nonperforming loans of $118 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $89 million and nonperforming loans of $100 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $633 million. Consumer real estate loans current or less than 30 days past due includes $1.4 billion and direct/indirect consumer includes $55 million of nonperforming loans. 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 $48.5 billion, U.S. securities-based lending loans of $51.1 billion and non-U.S. consumer loans of $3.0 billion.
(3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $279 million and home equity loans of $339 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $4.6 billion and non-U.S. commercial loans of $2.6 billion. For more information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option.
(4)Total outstandings includes U.S. commercial real estate loans of $58.2 billion and non-U.S. commercial real estate loans of $4.8 billion.
(5)Includes Paycheck Protection Program loans.
(6)Total outstandings includes loans and leases pledged as collateral of $13.0 billion. The Corporation also pledged $146.6 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank.
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            
Residential mortgage $ 1,430  $ 297  $ 1,699  $ 3,426  $ 220,129  $ 223,555 
Home equity 154  78  345  577  33,734  34,311 
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 Paycheck Protection Program 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.
Schedule of Financing Receivables, Non Accrual Status The following table presents the Corporation’s nonperforming loans and leases including nonperforming TDRs, and loans accruing past due 90 days or more at December 31, 2021 and 2020. 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
Nonperforming Loans
and Leases
Accruing Past Due
90 Days or More (1)
December 31
(Dollars in millions) 2021 2020 2021 2020
Residential mortgage (2)
$ 2,284  $ 2,005  $ 634  $ 762 
With no related allowance (3)
1,950  1,378    — 
Home equity (2)
630  649    — 
With no related allowance (3)
414  347    — 
Credit Card                      n/a               n/a 487  903 
Direct/indirect consumer 75  71  11  33 
Total consumer 2,989  2,725  1,132  1,698 
U.S. commercial 825  1,243  171  228 
Non-U.S. commercial 268  418  19  10 
Commercial real estate 382  404  40 
Commercial lease financing 80  87  8  25 
U.S. small business commercial 23  75  87  115 
Total commercial 1,578  2,227  325  384 
Total nonperforming loans $ 4,567  $ 4,952  $ 1,457  $ 2,082 
Percentage of outstanding loans and leases
0.47  % 0.54  % 0.15  % 0.23  %
(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, 2021 and 2020 residential mortgage includes $444 million and $537 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 $190 million and $225 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, 2021, including revolving loans that converted to term loans without an additional credit decision after origination or through a TDR.
Residential Mortgage – Credit Quality Indicators By Vintage
Term Loans by Origination Year
(Dollars in millions) Total as of
December 31,
 2021
2021 2020 2019 2018 2017 Prior
Total Residential Mortgage
Refreshed LTV
     
Less than or equal to 90 percent $ 206,562  $ 87,051  $ 43,597  $ 23,205  $ 7,392  $ 10,956  $ 34,361 
Greater than 90 percent but less than or equal to 100 percent
1,938  1,401  331  81  17  14  94 
Greater than 100 percent
759  520  112  29  11  12  75 
Fully-insured loans
12,704  3,845  3,486  1,150  216  235  3,772 
Total Residential Mortgage $ 221,963  $ 92,817  $ 47,526  $ 24,465  $ 7,636  $ 11,217  $ 38,302 
Total Residential Mortgage
Refreshed FICO score
Less than 620 $ 2,451  $ 636  $ 442  $ 140  $ 120  $ 104  $ 1,009 
Greater than or equal to 620 and less than 680
5,199  1,511  1,123  477  294  307  1,487 
Greater than or equal to 680 and less than 740
24,532  8,822  5,454  2,785  1,057  1,434  4,980 
Greater than or equal to 740
177,077  78,003  37,021  19,913  5,949  9,137  27,054 
Fully-insured loans
12,704  3,845  3,486  1,150  216  235  3,772 
Total Residential Mortgage $ 221,963  $ 92,817  $ 47,526  $ 24,465  $ 7,636  $ 11,217  $ 38,302 
Home Equity - Credit Quality Indicators
Total
Home Equity Loans and Reverse Mortgages (1)
Revolving Loans Revolving Loans Converted to Term Loans
(Dollars in millions) December 31, 2021
Total Home Equity
Refreshed LTV
     
Less than or equal to 90 percent $ 27,594  $ 1,773  $ 19,095  $ 6,726 
Greater than 90 percent but less than or equal to 100 percent
130  55  34  41 
Greater than 100 percent
211  85  54  72 
Total Home Equity $ 27,935  $ 1,913  $ 19,183  $ 6,839 
Total Home Equity
Refreshed FICO score
Less than 620 $ 893  $ 244  $ 209  $ 440 
Greater than or equal to 620 and less than 680
1,434  222  495  717 
Greater than or equal to 680 and less than 740
4,625  468  2,493  1,664 
Greater than or equal to 740
20,983  979  15,986  4,018 
Total Home Equity $ 27,935  $ 1,913  $ 19,183  $ 6,839 
(1)Includes reverse mortgages of $1.3 billion and home equity loans of $582 million which are no longer originated.
Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage
Direct/Indirect
Term Loans by Origination Year Credit Card
(Dollars in millions) Total Direct/
Indirect as of December 31,
 2021
Revolving Loans 2021 2020 2019 2018 2017 Prior Total Credit Card as of December 31,
 2021
Revolving Loans
Revolving Loans Converted to Term Loans (1)
Refreshed FICO score    
Less than 620 $ 685  $ 13  $ 179  $ 115  $ 129  $ 79  $ 101  $ 69  $ 3,017  $ 2,857  $ 160 
Greater than or equal to 620 and less than 680 2,313  14  1,170  414  313  148  134  120  9,264  9,064  200 
Greater than or equal to 680 and less than 740
8,530  60  4,552  1,659  1,126  466  314  353  28,347  28,155  192 
Greater than or equal to 740 37,164  94  15,876  8,642  6,465  2,679  1,573  1,835  40,810  40,762  48 
Other internal credit
   metrics (2,3)
54,868  54,173  283  53  77  75  63  144    —  — 
Total credit card and other
   consumer
$ 103,560  $ 54,354  $ 22,060  $ 10,883  $ 8,110  $ 3,447  $ 2,185  $ 2,521  $ 81,438  $ 80,838  $ 600 
(1)Represents TDRs that were modified into term loans.
(2)Other internal credit metrics may include delinquency status, geography or other factors.
(3)Direct/indirect consumer includes $54.2 billion of securities-based lending which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at December 31, 2021.
Commercial – Credit Quality Indicators By Vintage (1, 2)
Term Loans
Amortized Cost Basis by Origination Year
(Dollars in millions) Total as of
December 31,
 2021
2021 2020 2019 2018 2017 Prior Revolving Loans
U.S. Commercial
Risk ratings        
Pass rated $ 315,618  $ 55,862  $ 25,012  $ 23,373  $ 11,439  $ 10,426  $ 23,877  $ 165,629 
Reservable criticized 10,318  598  687  1,308  1,615  514  1,072  4,524 
Total U.S. Commercial
$ 325,936  $ 56,460  $ 25,699  $ 24,681  $ 13,054  $ 10,940  $ 24,949  $ 170,153 
Non-U.S. Commercial
Risk ratings
Pass rated $ 110,787  $ 25,749  $ 8,703  $ 7,133  $ 4,521  $ 3,016  $ 3,062  $ 58,603 
Reservable criticized 2,479  223  324  487  275  257  216  697 
Total Non-U.S. Commercial
$ 113,266  $ 25,972  $ 9,027  $ 7,620  $ 4,796  $ 3,273  $ 3,278  $ 59,300 
Commercial Real Estate
Risk ratings
Pass rated $ 55,511  $ 14,402  $ 7,244  $ 11,237  $ 5,710  $ 3,326  $ 6,831  $ 6,761 
Reservable criticized 7,498  277  990  2,237  1,710  596  1,464  224 
Total Commercial Real Estate
$ 63,009  $ 14,679  $ 8,234  $ 13,474  $ 7,420  $ 3,922  $ 8,295  $ 6,985 
Commercial Lease Financing
Risk ratings
Pass rated $ 14,438  $ 3,280  $ 2,485  $ 2,427  $ 2,030  $ 1,741  $ 2,475  $ — 
Reservable criticized 387  25  18  91  67  48  138  — 
Total Commercial Lease Financing
$ 14,825  $ 3,305  $ 2,503  $ 2,518  $ 2,097  $ 1,789  $ 2,613  $ — 
U.S. Small Business Commercial (3)
Risk ratings
Pass rated $ 11,618  $ 4,257  $ 2,922  $ 1,059  $ 763  $ 623  $ 1,853  $ 141 
Reservable criticized 433  12  29  91  87  64  147 
Total U.S. Small Business Commercial
$ 12,051  $ 4,269  $ 2,951  $ 1,150  $ 850  $ 687  $ 2,000  $ 144 
 Total $ 529,087  $ 104,685  $ 48,414  $ 49,443  $ 28,217  $ 20,611  $ 41,135  $ 236,582 
(1) Excludes $7.2 billion of loans accounted for under the fair value option at December 31, 2021.
(2)     Includes $16 million of loans that converted from revolving to term loans.
(3)     Excludes U.S. Small Business Card loans of $7.1 billion. Refreshed FICO scores for this portfolio are $192 million for less than 620; $618 million for greater than or equal to 620 and less than 680; $1.9 billion for greater than or equal to 680 and less than 740; and $4.4 billion greater than or equal to 740.
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 (1)
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 (2, 3)
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)Represents TDRs that were modified into term loans.
(2)Other internal credit metrics may include delinquency status, geography or other factors.
(3)Direct/indirect consumer includes $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.

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 $ 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, 2021, 2020 and 2019 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of consumer real estate loans that were modified in TDRs during 2021, 2020 and 2019. 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 2021, 2020 and 2019
Unpaid Principal Balance Carrying
Value
Pre-Modification Interest Rate
Post-Modification Interest Rate (1)
(Dollars in millions) December 31, 2021
Residential mortgage $ 891  $ 788  3.48  % 3.38  %
Home equity 107  77  3.60  3.59 
Total $ 998  $ 865  3.49  3.41 
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 
(1)The post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period.
The table below presents the December 31, 2021, 2020 and 2019 carrying value for consumer real estate loans that were modified in a TDR during 2021, 2020 and 2019, by type of modification.
Consumer Real Estate – Modification Programs
TDRs Entered into During
(Dollars in millions) 2021 2020 2019
Modifications under government programs $ 4  $ 13  $ 35 
Modifications under proprietary programs 774  570  174 
Loans discharged in Chapter 7 bankruptcy (1)
33  53  68 
Trial modifications 54  79  201 
Total modifications $ 865  $ 715  $ 478 
(1)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 2021, 2020 and 2019 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) 2021 2020 2019
Modifications under government programs $ 4  $ 16  $ 26 
Modifications under proprietary programs 128  51  88 
Loans discharged in Chapter 7 bankruptcy (1)
9  19  30 
Trial modifications (2)
19  54  57 
Total modifications $ 160  $ 140  $ 201 
(1)Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
(2)Includes trial modification offers to which the customer did not respond.
The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the December 31, 2021, 2020 and 2019 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during 2021, 2020 and 2019.
Credit Card and Other Consumer – TDRs Entered into During 2021, 2020 and 2019
  Unpaid Principal Balance
Carrying
Value
(1)
Pre-Modification Interest Rate Post-Modification Interest Rate
(Dollars in millions) December 31, 2021
Credit card $ 237  $ 248  18.45  % 4.09  %
Direct/Indirect consumer 23  16  5.88  5.88 
Total $ 260  $ 264  17.68  4.20 
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 
(1)Includes accrued interest and fees.
The table below presents the December 31, 2021, 2020 and 2019 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during 2021, 2020 and 2019, by program type.
Credit Card and Other Consumer – TDRs by Program Type at December 31 (1)
(Dollars in millions)
2021 2020 2019
Internal programs $ 214  $ 225  $ 247 
External programs
44  73  108 
Other
6  16  21 
Total $ 264  $ 314  $ 376 
(1) Includes accrued interest and fees.
Changes in the Allowance for Credit Losses The changes in the allowance for credit losses, including net charge-offs and provision for loan and lease losses, are detailed in the following table.
Consumer
Real Estate
Credit Card and
 Other Consumer
Commercial Total
(Dollars in millions) 2021
Allowance for loan and lease losses, January 1 $ 858  $ 9,213  $ 8,731  $ 18,802 
Loans and leases charged off (78) (3,000) (719) (3,797)
Recoveries of loans and leases previously charged off 225  1,006  323  1,554 
Net charge-offs 147  (1,994) (396) (2,243)
Provision for loan and lease losses (449) (744) (2,980) (4,173)
Other 1  1  (1) 1 
Allowance for loan and lease losses, December 31
557  6,476  5,354  12,387 
Reserve for unfunded lending commitments, January 1 137    1,741  1,878 
Provision for unfunded lending commitments (41)   (380) (421)
Other     (1) (1)
Reserve for unfunded lending commitments, December 31
96    1,360  1,456 
Allowance for credit losses, December 31
$ 653  $ 6,476  $ 6,714  $ 13,843 
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 —  (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) (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 
(1)Primarily represents write-offs of purchased credit-impaired loans in 2019.