Outstanding Loans and Leases and Allowance for Credit Losses

v3.22.4

Outstanding Loans and Leases and Allowance for Credit Losses	12 Months Ended
	Dec. 31, 2022
Receivables [Abstract]
Outstanding Loans and Leases and Allowance for Credit Losses	Outstanding Loans and Leases and Allowance for Credit Losses The following tables present total outstanding loans and leases and an aging analysis for the Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at December 31, 2022 and 2021. 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, 2022 Consumer real estate             Residential mortgage $ 1,077  $ 245  $ 945  $ 2,267  $ 227,403  $ 229,670  Home equity 88  32  211  331  26,232  26,563  Credit card and other consumer Credit card 466  322  717  1,505  91,916  93,421  Direct/Indirect consumer (2) 204  59  45  308  105,928  106,236  Other consumer —  —  —  —  156  156  Total consumer 1,835  658  1,918  4,411  451,635  456,046  Consumer loans accounted for under the fair value option (3) $ 339  339  Total consumer loans and leases 1,835  658  1,918  4,411  451,635  339  456,385  Commercial U.S. commercial 827  288  330  1,445  357,036  358,481  Non-U.S. commercial 317  59  144  520  123,959  124,479  Commercial real estate (4) 409  81  77  567  69,199  69,766  Commercial lease financing 49  9  11  69  13,575  13,644  U.S. small business commercial (5) 107  63  356  526  17,034  17,560  Total commercial 1,709  500  918  3,127  580,803  583,930  Commercial loans accounted for under the fair value option (3) 5,432  5,432  Total commercial loans and leases 1,709  500  918  3,127  580,803  5,432  589,362  Total loans and leases (6) $ 3,544  $ 1,158  $ 2,836  $ 7,538  $ 1,032,438  $ 5,771  $ 1,045,747  Percentage of outstandings 0.34  % 0.11  % 0.27  % 0.72  % 98.73  % 0.55  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $184 million and nonperforming loans of $155 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $75 million and nonperforming loans of $88 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $368 million and nonperforming loans of $788 million. Consumer real estate loans current or less than 30 days past due includes $1.6 billion, and direct/indirect consumer includes $27 million of nonperforming loans. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $51.8 billion, U.S. securities-based lending loans of $50.4 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 $71 million and home equity loans of $268 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 $2.5 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 $64.9 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 $18.5 billion. The Corporation also pledged $163.6 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, 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 and nonperforming loans of $1.3 billion. 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. (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. The Corporation has entered into long-term credit protection agreements with FNMA and FHLMC on loans totaling $9.5 billion and $10.5 billion at December 31, 2022 and 2021, providing full credit protection on residential mortgage loans that become severely delinquent. All of these loans are individually insured, and therefore the Corporation does not record an allowance for credit losses related to these loans. Nonperforming Loans and Leases Commercial nonperforming loans decreased to $1.1 billion at December 31, 2022 from $1.6 billion at December 31, 2021, as paydowns and returns to performing status more than offset new downgrades to nonaccrual status. Consumer nonperforming loans decreased to $2.8 billion at December 31, 2022 from $3.0 billion at December 31, 2021 primarily due to decreases from consumer real estate loan sales, partially offset by increases from loans whose prior-period deferrals expired and were modified in TDRs during the first quarter of 2022. 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, 2022 and 2021. 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 December 31 (Dollars in millions) 2022 2021 2022 2021 Residential mortgage (1) $ 2,167  $ 2,284  $ 368  $ 634  With no related allowance (2) 1,973  1,950  —  —  Home equity (1) 510  630  —  —  With no related allowance (2) 393  414  —  —  Credit Card                      n/a                     n/a 717  487  Direct/indirect consumer 77  75  2  11  Total consumer 2,754  2,989  1,087  1,132  U.S. commercial 553  825  190  171  Non-U.S. commercial 212  268  25  19  Commercial real estate 271  382  46  40  Commercial lease financing 4  80  8  8  U.S. small business commercial 14  23  355  87  Total commercial 1,054  1,578  624  325  Total nonperforming loans $ 3,808  $ 4,567  $ 1,711  $ 1,457  Percentage of outstanding loans and leases 0.37  % 0.47  % 0.16  % 0.15  % (1)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At December 31, 2022 and 2021 residential mortgage included $260 million and $444 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 $108 million and $190 million of loans on which interest was still accruing. (2)Primarily relates to loans for which the estimated fair value of the underlying collateral less any costs to sell is greater than the amortized cost of the loans as of the reporting date. n/a = not applicable Credit Quality Indicators The Corporation monitors credit quality within its Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments based on primary credit quality indicators. For more information on the portfolio segments, see Note 1 – Summary of Significant Accounting Principles. Within the Consumer Real Estate portfolio segment, the primary credit quality indicators are refreshed LTV and refreshed Fair Isaac Corporation (FICO) score. Refreshed LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan, refreshed quarterly. Home equity loans are evaluated using CLTV, which measures the carrying value of the Corporation’s loan and available line of credit combined with any outstanding senior liens against the property as a percentage of the value of the property securing the loan, refreshed quarterly. FICO score measures the creditworthiness of the borrower based on the financial obligations of the borrower and the borrower’s credit history. FICO scores are typically refreshed quarterly or more frequently. Certain borrowers (e.g., borrowers that have had debts discharged in a bankruptcy proceeding) may not have their FICO scores updated. FICO scores are also a primary credit quality indicator for the Credit Card and Other Consumer portfolio segment and the business card portfolio within U.S. small business commercial. Within the Commercial portfolio segment, loans are evaluated using the internal classifications of pass rated or reservable criticized as the primary credit quality indicators. The term reservable criticized refers to those commercial loans that are internally classified or listed by the Corporation as Special Mention, Substandard or Doubtful, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not considered reservable criticized. In addition to these primary credit quality indicators, the Corporation uses other credit quality indicators for certain types of loans. The following tables present certain credit quality indicators and gross charge-offs for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by year of origination, except for revolving loans and revolving loans that were modified into term loans, which are shown on an aggregate basis at December 31, 2022. Residential Mortgage – Credit Quality Indicators By Vintage Term Loans by Origination Year (Dollars in millions) Total as of December 31,  2022 2022 2021 2020 2019 2018 Prior Residential Mortgage Refreshed LTV       Less than or equal to 90 percent $ 215,713  $ 39,625  $ 81,437  $ 37,228  $ 18,980  $ 5,734  $ 32,709  Greater than 90 percent but less than or equal to 100 percent 1,615  950  530  93  15  8  19  Greater than 100 percent 648  374  169  43  15  8  39  Fully-insured loans 11,694  580  3,667  3,102  949  156  3,240  Total Residential Mortgage $ 229,670  $ 41,529  $ 85,803  $ 40,466  $ 19,959  $ 5,906  $ 36,007  Residential Mortgage Refreshed FICO score Less than 620 $ 2,156  $ 377  $ 518  $ 373  $ 124  $ 84  $ 680  Greater than or equal to 620 and less than 680 4,978  1,011  1,382  840  329  233  1,183  Greater than or equal to 680 and less than 740 25,444  5,411  8,290  4,369  2,187  830  4,357  Greater than or equal to 740 185,398  34,150  71,946  31,782  16,370  4,603  26,547  Fully-insured loans 11,694  580  3,667  3,102  949  156  3,240  Total Residential Mortgage $ 229,670  $ 41,529  $ 85,803  $ 40,466  $ 19,959  $ 5,906  $ 36,007  Gross charge-offs $ 161  $ —  $ 6  $ 5  $ 6  $ 1  $ 143  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, 2022 Home Equity Refreshed LTV       Less than or equal to 90 percent $ 26,395  $ 1,304  $ 19,960  $ 5,131  Greater than 90 percent but less than or equal to 100 percent 62  20  24  18  Greater than 100 percent 106  37  35  34  Total Home Equity $ 26,563  $ 1,361  $ 20,019  $ 5,183  Home Equity Refreshed FICO score Less than 620 $ 683  $ 166  $ 189  $ 328  Greater than or equal to 620 and less than 680 1,190  152  507  531  Greater than or equal to 680 and less than 740 4,321  312  2,747  1,262  Greater than or equal to 740 20,369  731  16,576  3,062  Total Home Equity $ 26,563  $ 1,361  $ 20,019  $ 5,183  Gross charge-offs $ 45  $ 5  $ 24  $ 16  (1)Includes reverse mortgages of $937 million and home equity loans of $424 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, 2022 Revolving Loans 2022 2021 2020 2019 2018 Prior Total Credit Card as of December 31, 2022 Revolving Loans Revolving Loans Converted to Term Loans (1) Refreshed FICO score     Less than 620 $ 847  $ 12  $ 237  $ 301  $ 113  $ 84  $ 43  $ 57  $ 4,056  $ 3,866  $ 190  Greater than or equal to 620 and less than 680 2,521  12  1,108  816  269  150  69  97  10,994  10,805  189  Greater than or equal to 680 and less than 740 8,895  52  4,091  2,730  992  520  214  296  32,186  32,017  169  Greater than or equal to 740 39,679  83  16,663  11,392  5,630  2,992  1,236  1,683  46,185  46,142  43  Other internal credit    metrics (2,3) 54,294  53,404  259  305  70  57  40  159  —  —  —  Total credit card and other    consumer $ 106,236  $ 53,563  $ 22,358  $ 15,544  $ 7,074  $ 3,803  $ 1,602  $ 2,292  $ 93,421  $ 92,830  $ 591  Gross charge-offs $ 232  $ 7  $ 31  $ 79  $ 34  $ 27  $ 14  $ 40  $ 1,985  $ 1,909  $ 76  (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 $53.4 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, 2022. Commercial – Credit Quality Indicators By Vintage (1) Term Loans Amortized Cost Basis by Origination Year (Dollars in millions) Total as of December 31, 2022 2022 2021 2020 2019 2018 Prior Revolving Loans U.S. Commercial Risk ratings         Pass rated $ 348,447  $ 61,200  $ 39,717  $ 18,609  $ 16,566  $ 8,749  $ 30,282  $ 173,324  Reservable criticized 10,034  278  794  697  884  1,202  856  5,323  Total U.S. Commercial $ 358,481  $ 61,478  $ 40,511  $ 19,306  $ 17,450  $ 9,951  $ 31,138  $ 178,647  Gross charge-offs $ 151  $ 2  $ 24  $ 24  $ 9  $ 6  $ 13  $ 73  Non-U.S. Commercial Risk ratings Pass rated $ 121,890  $ 24,839  $ 19,098  $ 5,183  $ 3,882  $ 2,423  $ 4,697  $ 61,768  Reservable criticized 2,589  45  395  331  325  98  475  920  Total Non-U.S. Commercial $ 124,479  $ 24,884  $ 19,493  $ 5,514  $ 4,207  $ 2,521  $ 5,172  $ 62,688  Gross charge-offs $ 41  $ —  $ 3  $ 1  $ —  $ 37  $ —  $ —  Commercial Real Estate Risk ratings Pass rated $ 64,619  $ 15,290  $ 13,089  $ 5,756  $ 9,013  $ 4,384  $ 8,606  $ 8,481  Reservable criticized 5,147  11  837  545  1,501  1,151  1,017  85  Total Commercial Real Estate $ 69,766  $ 15,301  $ 13,926  $ 6,301  $ 10,514  $ 5,535  $ 9,623  $ 8,566  Gross charge-offs $ 75  $ —  $ —  $ 6  $ —  $ 26  $ 43  $ —  Commercial Lease Financing Risk ratings Pass rated $ 13,404  $ 3,255  $ 2,757  $ 1,955  $ 1,578  $ 1,301  $ 2,558  $ —  Reservable criticized 240  9  35  12  71  50  63  —  Total Commercial Lease Financing $ 13,644  $ 3,264  $ 2,792  $ 1,967  $ 1,649  $ 1,351  $ 2,621  $ —  Gross charge-offs $ 8  $ —  $ 4  $ —  $ 4  $ —  $ —  $ —  U.S. Small Business Commercial (2) Risk ratings Pass rated $ 8,726  $ 1,825  $ 1,953  $ 1,408  $ 864  $ 624  $ 1,925  $ 127  Reservable criticized 329  11  35  48  76  51  105  3  Total U.S. Small Business Commercial $ 9,055  $ 1,836  $ 1,988  $ 1,456  $ 940  $ 675  $ 2,030  $ 130  Gross charge-offs $ 31  $ —  $ 1  $ 11  $ 4  $ 1  $ 6  $ 8  Total $ 575,425  $ 106,763  $ 78,710  $ 34,544  $ 34,760  $ 20,033  $ 50,584  $ 250,031  Total gross charge-offs $ 306  $ 2  $ 32  $ 42  $ 17  $ 70  $ 62  $ 81  (1) Excludes $5.4 billion of loans accounted for under the fair value option at December 31, 2022. (2)     Excludes U.S. Small Business Card loans of $8.5 billion. Refreshed FICO scores for this portfolio are $297 million for less than 620; $859 million for greater than or equal to 620 and less than 680; $2.4 billion for greater than or equal to 680 and less than 740; and $5.0 billion greater than or equal to 740. Excludes U.S. Small Business Card loans gross charge-offs of $172 million. The following tables present certain credit quality indicators for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by year of origination, except for revolving loans and revolving loans that were modified into term loans, which are shown on an aggregate basis at December 31, 2021. 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 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  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 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  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) 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 (2) 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  3  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) 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. During 2022, commercial credit quality showed some signs of stabilization. Commercial reservable criticized utilized exposure decreased to $19.3 billion at December 31, 2022 from $22.4 billion (to 3.12 percent from 3.91 percent of total commercial reservable utilized exposure) at December 31, 2021, which was broad-based across industries. Troubled Debt Restructurings Consumer Real Estate Modifications of consumer real estate loans are classified as TDRs when the borrower is experiencing financial difficulties and a concession has been granted. Concessions may include reductions in interest rates, capitalization of past due amounts, principal and/or interest forbearance, payment extensions, principal and/or interest forgiveness, or combinations thereof. Prior to permanently modifying a loan, the Corporation may enter into trial modifications with certain borrowers under both government and proprietary programs. Trial modifications generally represent a three- to four-month period during which the borrower makes monthly payments under the anticipated modified payment terms. Upon successful completion of the trial period, the Corporation and the borrower enter into a permanent modification. Binding trial modifications are classified as TDRs when the trial offer is made and continue to be classified as TDRs regardless of whether the borrower enters into a permanent modification. Consumer real estate loans of $211 million that have been discharged in Chapter 7 bankruptcy with no change in repayment terms and not reaffirmed by the borrower were included in TDRs at December 31, 2022, of which $53 million were classified as nonperforming and $33 million were loans fully insured. At December 31, 2022 and 2021, remaining commitments to lend additional funds to debtors whose terms have been modified in a consumer real estate TDR were not significant. Consumer real estate foreclosed properties totaled $121 million and $101 million at December 31, 2022 and 2021. The carrying value of consumer real estate loans, including fully-insured loans, for which formal foreclosure proceedings were in process at December 31, 2022 and 2021 was $871 million and $1.1 billion. During 2022 and 2021, the Corporation reclassified $190 million and $64 million of consumer real estate loans to foreclosed properties or, for properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans), to other assets. The reclassifications represent non-cash investing activities and, accordingly, are not reflected in the Consolidated Statement of Cash Flows. The table below presents the December 31, 2022, 2021 and 2020 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of consumer real estate loans that were modified in TDRs during 2022, 2021 and 2020. 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 2022, 2021 and 2020 Unpaid Principal Balance Carrying Value Pre-Modification Interest Rate Post-Modification Interest Rate (1) (Dollars in millions) December 31, 2022 Residential mortgage $ 1,144  $ 1,015  3.52  % 3.40  % Home equity 238  191  4.61  4.65  Total $ 1,382  $ 1,206  3.71  3.62  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  (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, 2022, 2021 and 2020 carrying value for consumer real estate loans that were modified in a TDR during 2022, 2021 and 2020, by type of modification. Consumer Real Estate – Modification Programs TDRs Entered into During (Dollars in millions) 2022 2021 2020 Modifications under government programs $ 2  $ 4  $ 13  Modifications under proprietary programs 1,100  774  570  Loans discharged in Chapter 7 bankruptcy (1) 14  33  53  Trial modifications 90  54  79  Total modifications $ 1,206  $ 865  $ 715  (1)Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. The following table presents the carrying value of consumer real estate loans that entered into payment default during 2022, 2021 and 2020 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) 2022 2021 2020 Modifications under government programs $ —  $ 4  $ 16  Modifications under proprietary programs 189  128  51  Loans discharged in Chapter 7 bankruptcy (1) 2  9  19  Trial modifications (2) 25  19  54  Total modifications $ 216  $ 160  $ 140  (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. Credit Card and Other Consumer The Corporation seeks to assist customers who are experiencing financial difficulty by modifying loans while ensuring compliance with federal and local laws and guidelines. Credit card and other consumer loan modifications generally involve reducing the interest rate on the account, placing the customer on a fixed payment plan not exceeding 60 months and canceling the customer’s available line of credit, all of which are considered TDRs. The Corporation makes loan modifications directly with borrowers for debt held only by the Corporation (internal programs). Additionally, the Corporation makes loan modifications for borrowers working with third-party renegotiation agencies that provide solutions to customers’ entire unsecured debt structures (external programs). The Corporation classifies other secured consumer loans that have been discharged in Chapter 7 bankruptcy as TDRs, which are written down to collateral value and placed on nonaccrual status no later than the time of discharge. The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the December 31, 2022, 2021 and 2020 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during 2022, 2021 and 2020. Credit Card and Other Consumer – TDRs Entered into During 2022, 2021 and 2020   Unpaid Principal Balance Carrying Value (1) Pre-Modification Interest Rate Post-Modification Interest Rate (Dollars in millions) December 31, 2022 Credit card $ 284  $ 293  22.34  % 3.89  % Direct/Indirect consumer 6  5  5.51  5.50  Total $ 290  $ 298  22.06  3.92  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  (1)Includes accrued interest and fees. The table below presents the December 31, 2022, 2021 and 2020 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during 2022, 2021 and 2020 by program type. Credit Card and Other Consumer – TDRs by Program Type at December 31 (1) (Dollars in millions) 2022 2021 2020 Internal programs $ 251  $ 214  $ 225  External programs 44  44  73  Other 3  6  16  Total $ 298  $ 264  $ 314  (1) Includes accrued interest and fees. Credit card and other consumer loans are deemed to be in payment default during the quarter in which a borrower misses the second of two consecutive payments. Payment defaults are one of the factors considered when projecting future cash flows in the calculation of the allowance for loan and lease losses for credit card and other consumer. Based on historical experience, the Corporation estimates that 15 percent of new credit card TDRs and 15 percent of new direct/indirect consumer TDRs may be in payment default within 12 months after modification. Commercial Loans Modifications of loans to commercial borrowers that are experiencing financial difficulty are designed to reduce the Corporation’s loss exposure while providing the borrower with an opportunity to work through financial difficulties, often to avoid foreclosure or bankruptcy. Each modification is unique and reflects the individual circumstances of the borrower. Modifications that result in a TDR may include extensions of maturity at a concessionary (below market) rate of interest, payment forbearances or other actions designed to benefit the borrower while mitigating the Corporation’s risk exposure. Reductions in interest rates are rare. Instead, the interest rates are typically increased, although the increased rate may not represent a market rate of interest. Infrequently, concessions may also include principal forgiveness in connection with foreclosure, short sale or other settlement agreements leading to termination or sale of the loan. At the time of restructuring, the loans are remeasured to reflect the impact, if any, on projected cash flows resulting from the modified terms. If a portion of the loan is deemed to be uncollectible, a charge-off may be recorded at the time of restructuring. Alternatively, a charge-off may have already been recorded in a previous period such that no charge-off is required at the time of modification. During 2022, the carrying value of the Corporation’s commercial loans that were modified as TDRs was $1.9 billion compared to $1.3 billion and $1.2 billion for 2021 and 2020. At December 31, 2022, 2021 and 2020, the Corporation had commitments to lend $358 million, $283 million and $402 million to commercial borrowers whose loans were classified as TDRs. The balance of commercial TDRs in payment default was $105 million, $262 million and $218 million at December 31, 2022, 2021 and 2020. Loans Held-for-sale The Corporation had LHFS of $6.9 billion and $15.6 billion at December 31, 2022 and 2021. Cash and non-cash proceeds from sales and paydowns of loans originally classified as LHFS were $32.0 billion, $43.6 billion and $20.1 billion for 2022, 2021 and 2020, respectively. Cash used for originations and purchases of LHFS totaled $24.9 billion, $37.3 billion and $19.7 billion for 2022, 2021 and 2020, respectively. Also included were non-cash net transfers into LHFS of $1.9 billion during 2022, primarily driven by the transfer of a $1.6 billion affinity card loan portfolio to held for sale that was sold in October 2022, and $808 million during 2021. Accrued Interest Receivable Accrued interest receivable for loans and leases and loans held-for-sale at December 31, 2022 and 2021 was $3.8 billion and $2.2 billion and is reported in customer and other receivables on the Consolidated Balance Sheet. Outstanding credit card loan balances include unpaid principal, interest and fees. Credit card loans are not classified as nonperforming but are charged off no later than the end of the month in which the account becomes 180 days past due, within 60 days after receipt of notification of death or bankruptcy, or upon confirmation of fraud. During 2022 and 2021, the Corporation reversed $332 million and $446 million of interest and fee income against the income statement line item in which it was originally recorded upon charge-off of the principal balance of the loan. For the outstanding residential mortgage, home equity, direct/indirect consumer and commercial loan balances classified as nonperforming during 2022 and 2021, interest and fee income reversed at the time the loans were classified as nonperforming was not significant. For more information on the Corporation's nonperforming loan policies, see Note 1 – Summary of Significant Accounting Principles Allowance for Credit Losses The allowance for credit losses is estimated using quantitative and qualitative methods that consider a variety of factors, such as historical loss experience, the current credit quality of the portfolio and an economic outlook over the life of the loan. Qualitative reserves cover losses that are expected but, in the Corporation's assessment, may not be adequately reflected in the quantitative methods or the economic assumptions. The Corporation incorporates forward-looking information through the use of several macroeconomic scenarios in determining the weighted economic outlook over the forecasted life of the assets. These scenarios include key macroeconomic variables such as gross domestic product, unemployment rate, real estate prices and corporate bond spreads. The scenarios that are chosen each quarter and the weighting given to each scenario depend on a variety of factors including recent economic events, leading economic indicators, internal and third-party economist views, and industry trends. For more information on the Corporation's credit loss accounting policies including the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principles. The December 31, 2022 estimate for allowance for credit losses was based on various economic scenarios, including a baseline scenario derived from consensus estimates, an adverse scenario reflecting an extended moderate recession, a downside scenario reflecting persistent inflation and interest rates above the baseline scenario, a tail risk scenario similar to the severely adverse scenario used in stress testing and an upside scenario that considers the potential for improvement above the baseline scenario. The overall economic outlook is weighted 95 percent towards a recessionary environment in 2023, with continued inflationary pressures leading to lower GDP and higher unemployment rate expectations as compared to the prior year. The weighted economic outlook assumes that the U.S. average unemployment rate will be above five and a half percent by the fourth quarter of 2023 and will slowly decline to five percent by the fourth quarter of 2024. Additionally, in this economic outlook, U.S. gross domestic product is forecasted to contract at 0.4 percent and grow at 1.2 percent year-over-year in the fourth quarters of 2023 and 2024. For comparison, as of December 31, 2021, the weighted economic outlook for the U.S. average unemployment rate was forecasted to be just above five percent by the fourth quarter of 2022 and slowly decline to just under five percent by the fourth quarter of 2023 and U.S. gross domestic product was forecasted at 2.1 percent and 1.9 percent year-over-year in the fourth quarters of 2022 and 2023. The allowance for credit losses at December 31, 2022 was $14.2 billion, an increase of $379 million compared to December 31, 2021. The increase in the allowance for credit losses was primarily driven by loan growth and a dampened macroeconomic outlook, partially offset by a reserve release for reduced pandemic uncertainties. The change in the allowance for credit losses was comprised of a net increase of $295 million in the allowance for loan and lease losses and an increase of $84 million in the reserve for unfunded lending commitments. The increase in the allowance for credit losses was attributed to increases in the credit card and other consumer portfolios of $341 million, and commercial portfolio of $177 million, partially offset by a decrease in the consumer real estate portfolio of $139 million. The provision for credit losses increased $7.1 billion to an expense of $2.5 billion in 2022 compared to a benefit of $4.6 billion in 2021 and an expense of $11.3 billion in 2020. The increase in the provision for credit losses in 2022 was primarily driven by loan growth and a dampened macroeconomic outlook, partially offset by reduced pandemic uncertainties. The benefit in 2021 was primarily due to an improved macroeconomic outlook and credit quality. Outstanding loans and leases excluding loans accounted for under the fair value option increased $68.7 billion in 2022 primarily driven by commercial loans, which increased $47.7 billion, driven by broad-based growth, and consumer loans which increased $21.0 billion, primarily driven by credit card and residential mortgage. 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) 2022 Allowance for loan and lease losses, January 1 $ 557  $ 6,476  $ 5,354  $ 12,387  Loans and leases charged off (206) (2,755) (478) (3,439) Recoveries of loans and leases previously charged off 224  882  161  1,267  Net charge-offs 18  (1,873) (317) (2,172) Provision for loan and lease losses (164) 2,215  409  2,460  Other 9  (1) (1) 7  Allowance for loan and lease losses, December 31 420  6,817  5,445  12,682  Reserve for unfunded lending commitments, January 1 96  —  1,360  1,456  Provision for unfunded lending commitments (3) —  86  83  Other 1  —  —  1  Reserve for unfunded lending commitments, December 31 94  —  1,446  1,540  Allowance for credit losses, December 31 $ 514  $ 6,817  $ 6,891  $ 14,222  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  —  (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