Bank of America Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Outstanding Loans and Leases (Tables)

Outstanding Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2016

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 June 30, 2016 and December 31, 2015. The classes of financing receivables are residential mortgage and home equity within the Consumer Real Estate portfolio segment; U.S. credit card, non-U.S. credit card, direct/indirect consumer and other consumer within the Credit Card and Other Consumer portfolio segment; and U.S. commercial, commercial real estate, commercial lease financing, non-U.S. commercial and U.S. small business commercial within the Commercial portfolio segment.



	June 30, 2016
(Dollars in millions)	30-59 Days Past Due ⁽¹⁾			60-89 Days Past Due ⁽¹⁾			90 Days or More Past Due ⁽²⁾			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due ⁽³⁾			Purchased Credit - impaired ⁽⁴⁾			Loans Accounted for Under the Fair Value Option			Total Outstandings
Consumer real estate
Core portfolio
Residential mortgage	$	1,093		$	329		$	1,314		$	2,736		$	143,364								$	146,100
Home equity	190			104			474			768			51,709									52,477
Non-core portfolio
Residential mortgage ⁽⁵⁾	1,452			804			6,444			8,700			20,036			$	11,107					39,843
Home equity	278			147			936			1,361			13,628			4,121						19,110
Credit card and other consumer
U.S. credit card	416			279			693			1,388			86,715									88,103
Non-U.S. credit card	34			26			69			129			9,251									9,380
Direct/Indirect consumer ⁽⁶⁾	197			65			26			288			92,458									92,746
Other consumer ⁽⁷⁾	20			4			3			27			2,257									2,284
Total consumer	3,680			1,758			9,959			15,397			419,418			15,228						450,043
Consumer loans accounted for under the fair value option ⁽⁸⁾																			$	1,844		1,844
Total consumer loans and leases	3,680			1,758			9,959			15,397			419,418			15,228			1,844			451,887
Commercial
U.S. commercial	290			102			263			655			262,812									263,467
Commercial real estate ⁽⁹⁾	27			9			53			89			57,523									57,612
Commercial lease financing	28			32			31			91			21,112									21,203
Non-U.S. commercial	52			4			1			57			88,991									89,048
U.S. small business commercial	50			38			78			166			12,954									13,120
Total commercial	447			185			426			1,058			443,392									444,450
Commercial loans accounted for under the fair value option ⁽⁸⁾																			6,816			6,816
Total commercial loans and leases	447			185			426			1,058			443,392						6,816			451,266
Total loans and leases ⁽¹⁰⁾	$	4,127		$	1,943		$	10,385		$	16,455		$	862,810		$	15,228		$	8,660		$	903,153
Percentage of outstandings	0.46		%	0.22		%	1.14		%	1.82		%	95.53		%	1.69		%	0.96		%	100.00		%


⁽¹⁾	Consumer real estate loans 30-59 days past due includes fully-insured loans of $1.1 billion and nonperforming loans of $284 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $691 million and nonperforming loans of $245 million.


⁽²⁾	Consumer real estate includes fully-insured loans of $5.7 billion.


⁽³⁾	Consumer real estate includes $2.7 billion and direct/indirect consumer includes $26 million of nonperforming loans.


⁽⁴⁾	Purchased credit-impaired (PCI) loan amounts are shown gross of the valuation allowance.


⁽⁵⁾	Total outstandings includes pay option loans of $2.1 billion. The Corporation no longer originates this product.


⁽⁶⁾	Total outstandings includes auto and specialty lending loans of $47.0 billion, unsecured consumer lending loans of $696 million, U.S. securities-based lending loans of $40.1 billion, non-U.S. consumer loans of $3.4 billion, student loans of $531 million and other consumer loans of $1.1 billion.


⁽⁷⁾	Total outstandings includes consumer finance loans of $512 million, consumer leases of $1.6 billion and consumer overdrafts of $191 million.


⁽⁸⁾	Consumer loans accounted for under the fair value option were residential mortgage loans of $1.5 billion and home equity loans of $354 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.7 billion and non-U.S. commercial loans of $4.1 billion. For additional information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.


⁽⁹⁾	Total outstandings includes U.S. commercial real estate loans of $54.3 billion and non-U.S. commercial real estate loans of $3.3 billion.


⁽¹⁰⁾	The Corporation pledged $148.0 billion of loans to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Banks. This amount is not included in the parenthetical disclosure of loans and leases pledged as collateral on the Consolidated Balance Sheet as there were no related outstanding borrowings.



	December 31, 2015
(Dollars in millions)	30-59 Days Past Due ⁽¹⁾			60-89 Days Past Due ⁽¹⁾			90 Days or More Past Due ⁽²⁾			Total Past Due 30 Days or More			Total Current or Less Than 30 Days Past Due ⁽³⁾			Purchased Credit - impaired ⁽⁴⁾			Loans Accounted for Under the Fair Value Option			Total Outstandings
Consumer real estate
Core portfolio
Residential mortgage	$	1,214		$	368		$	1,414		$	2,996		$	138,799								$	141,795
Home equity	200			93			579			872			54,045									54,917
Non-core portfolio
Residential mortgage ⁽⁵⁾	2,045			1,167			8,439			11,651			22,399			$	12,066					46,116
Home equity	335			174			1,170			1,679			14,733			4,619						21,031
Credit card and other consumer
U.S. credit card	454			332			789			1,575			88,027									89,602
Non-U.S. credit card	39			31			76			146			9,829									9,975
Direct/Indirect consumer⁽⁶⁾	227			62			42			331			88,464									88,795
Other consumer ⁽⁷⁾	18			3			4			25			2,042									2,067
Total consumer	4,532			2,230			12,513			19,275			418,338			16,685						454,298
Consumer loans accounted for under the fair value option ⁽⁸⁾																			$	1,871		1,871
Total consumer loans and leases	4,532			2,230			12,513			19,275			418,338			16,685			1,871			456,169
Commercial
U.S. commercial	444			148			332			924			251,847									252,771
Commercial real estate ⁽⁹⁾	36			11			82			129			57,070									57,199
Commercial lease financing	150			29			20			199			21,153									21,352
Non-U.S. commercial	6			1			1			8			91,541									91,549
U.S. small business commercial	83			41			72			196			12,680									12,876
Total commercial	719			230			507			1,456			434,291									435,747
Commercial loans accounted for under the fair value option ⁽⁸⁾																			5,067			5,067
Total commercial loans and leases	719			230			507			1,456			434,291						5,067			440,814
Total loans and leases ⁽¹⁰⁾	$	5,251		$	2,460		$	13,020		$	20,731		$	852,629		$	16,685		$	6,938		$	896,983
Percentage of outstandings	0.59		%	0.27		%	1.45		%	2.31		%	95.06		%	1.86		%	0.77		%	100.00		%


⁽¹⁾	Consumer real estate loans 30-59 days past due includes fully-insured loans of $1.7 billion and nonperforming loans of $379 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $1.0 billion and nonperforming loans of $297 million.


⁽²⁾	Consumer real estate includes fully-insured loans of $7.2 billion.


⁽³⁾	Consumer real estate includes $3.0 billion and direct/indirect consumer includes $21 million of nonperforming loans.


⁽⁴⁾	PCI loan amounts are shown gross of the valuation allowance.


⁽⁵⁾	Total outstandings includes pay option loans of $2.3 billion. The Corporation no longer originates this product.


⁽⁶⁾	Total outstandings includes auto and specialty lending loans of $42.6 billion, unsecured consumer lending loans of $886 million, U.S. securities-based lending loans of $39.8 billion, non-U.S. consumer loans of $3.9 billion, student loans of $564 million and other consumer loans of $1.0 billion.


⁽⁷⁾	Total outstandings includes consumer finance loans of $564 million, consumer leases of $1.4 billion and consumer overdrafts of $146 million.


⁽⁸⁾	Consumer loans accounted for under the fair value option were residential mortgage loans of $1.6 billion and home equity loans of $250 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.3 billion and non-U.S. commercial loans of $2.8 billion. For additional information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.


⁽⁹⁾	Total outstandings includes U.S. commercial real estate loans of $53.6 billion and non-U.S. commercial real estate loans of $3.5 billion.


⁽¹⁰⁾	The Corporation pledged $149.4 billion of loans to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Banks. This amount is not included in the parenthetical disclosure of loans and leases pledged as collateral on the Consolidated Balance Sheet as there were no related outstanding borrowings.

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 June 30, 2016 and December 31, 2015. 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 to the Consolidated Financial Statements of the Corporation's 2015 Annual Report on Form 10-K.



Credit Quality
	Nonperforming Loans and Leases				Accruing Past Due 90 Days or More
(Dollars in millions)	June 30 2016		December 31 2015		June 30 2016		December 31 2015
Consumer real estate
Core portfolio
Residential mortgage ⁽¹⁾	$	1,492	$	1,825	$	455	$	382
Home equity	937		974		—		—
Non-core portfolio
Residential mortgage ⁽¹⁾	2,100		2,978		5,204		6,768
Home equity	2,148		2,363		—		—
Credit card and other consumer
U.S. credit card	n/a		n/a		693		789
Non-U.S. credit card	n/a		n/a		69		76
Direct/Indirect consumer	27		24		26		39
Other consumer	1		1		2		3
Total consumer	6,705		8,165		6,449		8,057
Commercial
U.S. commercial	1,349		867		55		113
Commercial real estate	84		93		6		3
Commercial lease financing	13		12		29		15
Non-U.S. commercial	144		158		1		1
U.S. small business commercial	69		82		61		61
Total commercial	1,659		1,212		152		193
Total loans and leases	$	8,364	$	9,377	$	6,601	$	8,250

⁽¹⁾

Residential mortgage loans in the core and non-core portfolios accruing past due 90 days or more are fully-insured loans. At June 30, 2016 and December 31, 2015, residential mortgage includes $3.3 billion and $4.3 billion of loans on which interest has been curtailed by the Federal Housing Administration (FHA), and therefore are no longer accruing interest, although principal is still insured, and $2.4 billion and $2.9 billion of loans on which interest is still accruing.

n/a = not applicable

Financing Receivable Credit Quality Indicators

The following tables present certain credit quality indicators for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at June 30, 2016 and December 31, 2015.



Consumer Real Estate – Credit Quality Indicators ⁽¹⁾
	June 30, 2016
(Dollars in millions)	Core Portfolio Residential Mortgage ⁽²⁾		Non-core Residential Mortgage ⁽²⁾		Residential Mortgage PCI ⁽³⁾		Core Portfolio Home Equity ⁽²⁾		Non-core Home Equity ⁽²⁾		Home Equity PCI
Refreshed LTV ⁽⁴⁾
Less than or equal to 90 percent	$	117,311	$	14,990	$	8,087	$	49,186	$	8,178	$	1,821
Greater than 90 percent but less than or equal to 100 percent	4,036		1,859		1,215		1,629		1,925		741
Greater than 100 percent	2,394		2,767		1,805		1,662		4,886		1,559
Fully-insured loans ⁽⁵⁾	22,359		9,120		—		—		—		—
Total consumer real estate	$	146,100	$	28,736	$	11,107	$	52,477	$	14,989	$	4,121
Refreshed FICO score
Less than 620	$	2,789	$	3,716	$	3,177	$	1,276	$	3,040	$	617
Greater than or equal to 620 and less than 680	5,278		3,164		2,437		3,044		3,501		735
Greater than or equal to 680 and less than 740	22,372		4,932		3,103		11,042		3,332		1,210
Greater than or equal to 740	93,302		7,804		2,390		37,115		5,116		1,559
Fully-insured loans ⁽⁵⁾	22,359		9,120		—		—		—		—
Total consumer real estate	$	146,100	$	28,736	$	11,107	$	52,477	$	14,989	$	4,121


⁽¹⁾	Excludes $1.8 billion of loans accounted for under the fair value option.


⁽²⁾	Excludes PCI loans.


⁽³⁾	Includes $1.8 billion of pay option loans. The Corporation no longer originates this product.


⁽⁴⁾	Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.


⁽⁵⁾	Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.



Credit Card and Other Consumer – Credit Quality Indicators
	June 30, 2016
(Dollars in millions)	U.S. Credit Card		Non-U.S. Credit Card		Direct/Indirect Consumer		Other Consumer ⁽¹⁾
Refreshed FICO score
Less than 620	$	3,940	$	—	$	1,315	$	200
Greater than or equal to 620 and less than 680	11,562		—		1,855		213
Greater than or equal to 680 and less than 740	33,592		—		11,818		364
Greater than or equal to 740	39,009		—		32,730		1,312
Other internal credit metrics ^{(2, 3, 4)}	—		9,380		45,028		195
Total credit card and other consumer	$	88,103	$	9,380	$	92,746	$	2,284


⁽¹⁾	At June 30, 2016, 22 percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.


⁽²⁾	Other internal credit metrics may include delinquency status, geography or other factors.


⁽³⁾	Direct/indirect consumer includes $43.4 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $534 million of loans the Corporation no longer originates, primarily student loans.


⁽⁴⁾	Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At June 30, 2016, 98 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and one percent was 90 days or more past due.



Commercial – Credit Quality Indicators (1)
	June 30, 2016
(Dollars in millions)	U.S. Commercial		Commercial Real Estate		Commercial Lease Financing		Non-U.S. Commercial		U.S. Small Business Commercial ⁽²⁾
Risk ratings
Pass rated	$	252,353	$	57,170	$	20,371	$	85,609	$	488
Reservable criticized	11,114		442		832		3,439		83
Refreshed FICO score ⁽³⁾
Less than 620									184
Greater than or equal to 620 and less than 680									561
Greater than or equal to 680 and less than 740									1,736
Greater than or equal to 740									3,328
Other internal credit metrics ^{(3, 4)}									6,740
Total commercial	$	263,467	$	57,612	$	21,203	$	89,048	$	13,120


⁽¹⁾	Excludes $6.8 billion of loans accounted for under the fair value option.


⁽²⁾	U.S. small business commercial includes $669 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At June 30, 2016, 99 percent of the balances where internal credit metrics are used was current or less than 30 days past due.


⁽³⁾	Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.


⁽⁴⁾	Other internal credit metrics may include delinquency status, application scores, geography or other factors.



Consumer Real Estate – Credit Quality Indicators ⁽¹⁾
	December 31, 2015
(Dollars in millions)	Core Portfolio Residential Mortgage ⁽²⁾		Non-core Residential Mortgage ⁽²⁾		Residential Mortgage PCI ⁽³⁾		Core Portfolio Home Equity ⁽²⁾		Non-core Home Equity ⁽²⁾		Home Equity PCI
Refreshed LTV ⁽⁴⁾
Less than or equal to 90 percent	$	110,023	$	16,481	$	8,655	$	51,262	$	8,347	$	2,003
Greater than 90 percent but less than or equal to 100 percent	4,038		2,224		1,403		1,858		2,190		852
Greater than 100 percent	2,638		3,364		2,008		1,797		5,875		1,764
Fully-insured loans ⁽⁵⁾	25,096		11,981		—		—		—		—
Total consumer real estate	$	141,795	$	34,050	$	12,066	$	54,917	$	16,412	$	4,619
Refreshed FICO score
Less than 620	$	3,129	$	4,749	$	3,798	$	1,322	$	3,490	$	729
Greater than or equal to 620 and less than 680	5,472		3,762		2,586		3,295		3,862		825
Greater than or equal to 680 and less than 740	22,486		5,138		3,187		12,180		3,451		1,356
Greater than or equal to 740	85,612		8,420		2,495		38,120		5,609		1,709
Fully-insured loans ⁽⁵⁾	25,096		11,981		—		—		—		—
Total consumer real estate	$	141,795	$	34,050	$	12,066	$	54,917	$	16,412	$	4,619


⁽¹⁾	Excludes $1.9 billion of loans accounted for under the fair value option.


⁽²⁾	Excludes PCI loans.


⁽³⁾	Includes $2.0 billion of pay option loans. The Corporation no longer originates this product.


⁽⁴⁾	Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance.


⁽⁵⁾	Credit quality indicators are not reported for fully-insured loans as principal repayment is insured.



Credit Card and Other Consumer – Credit Quality Indicators
	December 31, 2015
(Dollars in millions)	U.S. Credit Card		Non-U.S. Credit Card		Direct/Indirect Consumer		Other Consumer ⁽¹⁾
Refreshed FICO score
Less than 620	$	4,196	$	—	$	1,244	$	217
Greater than or equal to 620 and less than 680	11,857		—		1,698		214
Greater than or equal to 680 and less than 740	34,270		—		10,955		337
Greater than or equal to 740	39,279		—		29,581		1,149
Other internal credit metrics ^{(2, 3, 4)}	—		9,975		45,317		150
Total credit card and other consumer	$	89,602	$	9,975	$	88,795	$	2,067


⁽¹⁾	At December 31, 2015, 27 percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited.


⁽²⁾	Other internal credit metrics may include delinquency status, geography or other factors.


⁽³⁾	Direct/indirect consumer includes $43.7 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $567 million of loans the Corporation no longer originates, primarily student loans.


⁽⁴⁾	Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2015, 98 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and one percent was 90 days or more past due.



Commercial – Credit Quality Indicators ⁽¹⁾
	December 31, 2015
(Dollars in millions)	U.S. Commercial		Commercial Real Estate		Commercial Lease Financing		Non-U.S. Commercial		U.S. Small Business Commercial ⁽²⁾
Risk ratings
Pass rated	$	243,922	$	56,688	$	20,644	$	87,905	$	571
Reservable criticized	8,849		511		708		3,644		96
Refreshed FICO score ⁽³⁾
Less than 620									184
Greater than or equal to 620 and less than 680									543
Greater than or equal to 680 and less than 740									1,627
Greater than or equal to 740									3,027
Other internal credit metrics ^{(3, 4)}									6,828
Total commercial	$	252,771	$	57,199	$	21,352	$	91,549	$	12,876


⁽¹⁾	Excludes $5.1 billion of loans accounted for under the fair value option.


⁽²⁾	U.S. small business commercial includes $670 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2015, 98 percent of the balances where internal credit metrics are used was current or less than 30 days past due.


⁽³⁾	Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio.


⁽⁴⁾	Other internal credit metrics may include delinquency status, application scores, geography or other factors.

Financing Receivable, Modifications [Line Items]

Accretable Yield Activity

The table below shows activity for the accretable yield on PCI loans, which include the Countrywide Financial Corporation (Countrywide) portfolio and loans repurchased in connection with the 2013 settlement with FNMA. The amount of accretable yield is affected by changes in credit outlooks, including metrics such as default rates and loss severities, prepayment speeds, which can change the amount and period of time over which interest payments are expected to be received, and the interest rates on variable rate loans. The reclassifications from nonaccretable difference in the three and six months ended June 30, 2016 were primarily due to an increase in the expected principal and interest cash flows due to lower default estimates.



Rollforward of Accretable Yield
(Dollars in millions)	Three Months Ended June 30, 2016			Six Months Ended June 30, 2016
Accretable yield, beginning of period	$	4,250		$	4,569
Accretion	(185		)	(377		)
Disposals/transfers	(124		)	(235		)
Reclassifications from nonaccretable difference	101			85
Accretable yield, June 30, 2016	$	4,042		$	4,042

Consumer Real Estate

Financing Receivable, Impaired [Line Items]

Impaired Financing Receivables

The table below provides the unpaid principal balance, carrying value and related allowance at June 30, 2016 and December 31, 2015, and the average carrying value and interest income recognized for the three and six months ended June 30, 2016 and 2015 for impaired loans in the Corporation's Consumer Real Estate portfolio segment. Certain impaired consumer real estate loans do not have a related allowance as the current valuation of these impaired loans exceeded the carrying value, which is net of previously recorded charge-offs.



Impaired Loans – Consumer Real Estate
					June 30, 2016						December 31, 2015
(Dollars in millions)					Unpaid Principal Balance		Carrying Value		Related Allowance		Unpaid Principal Balance		Carrying Value		Related Allowance
With no recorded allowance
Residential mortgage					$	12,619	$	9,929	$	—	$	14,888	$	11,901	$	—
Home equity					3,691		1,921		—		3,545		1,775		—
With an allowance recorded
Residential mortgage					$	5,281	$	5,157	$	296	$	6,624	$	6,471	$	399
Home equity					939		835		146		1,047		911		235
Total
Residential mortgage					$	17,900	$	15,086	$	296	$	21,512	$	18,372	$	399
Home equity					4,630		2,756		146		4,592		2,686		235

	Three Months Ended June 30								Six Months Ended June 30
	2016				2015				2016				2015
	Average Carrying Value		Interest Income Recognized ⁽¹⁾		Average Carrying Value		Interest Income Recognized ⁽¹⁾		Average Carrying Value		Interest Income Recognized ⁽¹⁾		Average Carrying Value		Interest Income Recognized ⁽¹⁾
With no recorded allowance
Residential mortgage	$	10,345	$	100	$	14,401	$	105	$	10,925	$	194	$	14,897	$	213
Home equity	1,870		17		1,805		20		1,843		30		1,748		45
With an allowance recorded
Residential mortgage	$	5,387	$	46	$	7,706	$	61	$	5,737	$	97	$	7,646	$	125
Home equity	873		5		744		5		882		11		729		12
Total
Residential mortgage	$	15,732	$	146	$	22,107	$	166	$	16,662	$	291	$	22,543	$	338
Home equity	2,743		22		2,549		25		2,725		41		2,477		57


⁽¹⁾	Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.

Financing Receivable, Modifications [Line Items]

Troubled Debt Restructurings on Financing Receivables

The table below presents the June 30, 2016 and 2015 carrying value for consumer real estate loans that were modified in a TDR during the three and six months ended June 30, 2016 and 2015 by type of modification.



Consumer Real Estate – Modification Programs
	TDRs Entered into During the Three Months Ended June 30, 2016
(Dollars in millions)	Residential Mortgage		Home Equity		Total Carrying Value
Modifications under government programs
Contractual interest rate reduction	$	23	$	12	$	35
Principal and/or interest forbearance	—		4		4
Other modifications ⁽¹⁾	8		—		8
Total modifications under government programs	31		16		47
Modifications under proprietary programs
Contractual interest rate reduction	14		2		16
Capitalization of past due amounts	5		—		5
Principal and/or interest forbearance	2		1		3
Other modifications ⁽¹⁾	9		17		26
Total modifications under proprietary programs	30		20		50
Trial modifications	300		145		445
Loans discharged in Chapter 7 bankruptcy ⁽²⁾	44		19		63
Total modifications	$	405	$	200	$	605

	TDRs Entered into During the Three Months Ended June 30, 2015
Modifications under government programs
Contractual interest rate reduction	$	95	$	3	$	98
Principal and/or interest forbearance	—		2		2
Other modifications ⁽¹⁾	11		—		11
Total modifications under government programs	106		5		111
Modifications under proprietary programs
Contractual interest rate reduction	38		1		39
Capitalization of past due amounts	19		1		20
Principal and/or interest forbearance	18		1		19
Other modifications ⁽¹⁾	14		1		15
Total modifications under proprietary programs	89		4		93
Trial modifications	997		230		1,227
Loans discharged in Chapter 7 bankruptcy ⁽²⁾	102		46		148
Total modifications	$	1,294	$	285	$	1,579


⁽¹⁾	Includes other modifications such as term or payment extensions and repayment plans.


⁽²⁾	Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.



Consumer Real Estate – Modification Programs
	TDRs Entered into During the Six Months Ended June 30, 2016
(Dollars in millions)	Residential Mortgage		Home Equity		Total Carrying Value
Modifications under government programs
Contractual interest rate reduction	$	66	$	18	$	84
Principal and/or interest forbearance	—		6		6
Other modifications ⁽¹⁾	19		1		20
Total modifications under government programs	85		25		110
Modifications under proprietary programs
Contractual interest rate reduction	32		28		60
Capitalization of past due amounts	14		3		17
Principal and/or interest forbearance	6		16		22
Other modifications⁽¹⁾	11		20		31
Total modifications under proprietary programs	63		67		130
Trial modifications	540		230		770
Loans discharged in Chapter 7 bankruptcy ⁽²⁾	97		39		136
Total modifications	$	785	$	361	$	1,146

	TDRs Entered into During the Six Months Ended June 30, 2015
Modifications under government programs
Contractual interest rate reduction	$	266	$	15	$	281
Principal and/or interest forbearance	2		5		7
Other modifications ⁽¹⁾	23		1		24
Total modifications under government programs	291		21		312
Modifications under proprietary programs
Contractual interest rate reduction	113		6		119
Capitalization of past due amounts	50		3		53
Principal and/or interest forbearance	75		9		84
Other modifications ⁽¹⁾	18		26		44
Total modifications under proprietary programs	256		44		300
Trial modifications	1,734		298		2,032
Loans discharged in Chapter 7 bankruptcy ⁽²⁾	198		84		282
Total modifications	$	2,479	$	447	$	2,926


⁽¹⁾	Includes other modifications such as term or payment extensions and repayment plans.


⁽²⁾	Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.

The table below presents the June 30, 2016 and 2015 unpaid principal balance, carrying value, and average pre- and post-modification interest rates on consumer real estate loans that were modified in TDRs during the three and six months ended June 30, 2016 and 2015, and net charge-offs recorded during the period in which the modification occurred. The following Consumer Real Estate portfolio segment tables include loans that were initially classified as TDRs during the period and also loans that had previously been classified as TDRs and were modified again during the period.



Consumer Real Estate – TDRs Entered into During the Three Months Ended June 30, 2016 and 2015 ⁽¹⁾
	June 30, 2016								Three Months Ended June 30, 2016
(Dollars in millions)	Unpaid Principal Balance		Carrying Value		Pre-Modification Interest Rate		Post-Modification Interest Rate ⁽²⁾		Net Charge-offs ⁽³⁾
Residential mortgage	$	437	$	405	4.68	%	4.42	%	$	3
Home equity	250		200		3.81		3.27		16
Total	$	687	$	605	4.36		4.00		$	19

	June 30, 2015								Three Months Ended June 30, 2015
Residential mortgage	$	1,409	$	1,294	4.87	%	4.71	%	$	25
Home equity	348		285		3.49		3.36		19
Total	$	1,757	$	1,579	4.60		4.44		$	44

Consumer Real Estate – TDRs Entered into During the Six Months Ended June 30, 2016 and 2015 ⁽¹⁾
	June 30, 2016								Six Months Ended June 30, 2016
Residential mortgage	$	854	$	785	4.72	%	4.45	%	$	5
Home equity	460		361		3.63		3.10		26
Total	$	1,314	$	1,146	4.34		3.98		$	31

	June 30, 2015								Six Months Ended June 30, 2015
Residential mortgage	$	2,760	$	2,479	4.98	%	4.64	%	$	42
Home equity	579		447		3.72		3.36		30
Total	$	3,339	$	2,926	4.76		4.42		$	72


⁽¹⁾	During the three and six months ended June 30, 2016, the Corporation forgave principal of $1 million and $11 million related to residential mortgage loans in connection with TDRs compared to $102 million and $261 million for the same periods in 2015.


⁽²⁾	The post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period.


⁽³⁾	Net charge-offs include amounts recorded on loans modified during the period that are no longer held by the Corporation at June 30, 2016 and 2015 due to sales and other dispositions.

The table below presents the carrying value of consumer real estate loans that entered into payment default during the three and six months ended June 30, 2016 and 2015 that were modified in a TDR during the 12 months preceding payment default. A payment default for consumer real estate TDRs is recognized when a borrower has missed three monthly payments (not necessarily consecutively) since modification. Payment defaults on a trial modification where the borrower has not yet met the terms of the agreement are included in the table below if the borrower is 90 days or more past due three months after the offer to modify is made.



Consumer Real Estate – TDRs Entering Payment Default That Were Modified During the Preceding 12 Months
	Three Months Ended June 30, 2016
(Dollars in millions)	Residential Mortgage		Home Equity		Total Carrying Value
Modifications under government programs	$	85	$	1	$	86
Modifications under proprietary programs	35		5		40
Loans discharged in Chapter 7 bankruptcy ⁽¹⁾	31		6		37
Trial modifications	184		29		213
Total modifications	$	335	$	41	$	376

	Three Months Ended June 30, 2015
Modifications under government programs	$	99	$	1	$	100
Modifications under proprietary programs	38		6		44
Loans discharged in Chapter 7 bankruptcy ⁽¹⁾	61		10		71
Trial modifications ⁽²⁾	468		27		495
Total modifications	$	666	$	44	$	710

	Six Months Ended June 30, 2016
Modifications under government programs	$	178	$	1	$	179
Modifications under proprietary programs	78		27		105
Loans discharged in Chapter 7 bankruptcy ⁽¹⁾	71		11		82
Trial modifications	421		66		487
Total modifications	$	748	$	105	$	853

	Six Months Ended June 30, 2015
Modifications under government programs	$	206	$	2	$	208
Modifications under proprietary programs	78		18		96
Loans discharged in Chapter 7 bankruptcy ⁽¹⁾	132		20		152
Trial modifications ⁽²⁾	2,236		51		2,287
Total modifications	$	2,652	$	91	$	2,743


⁽¹⁾	Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.


⁽²⁾	Includes $116 million and $1.5 billion for the three and six months ended June 30, 2015 of trial modification offers made in connection with the August 2014 U.S. Department of Justice settlement to which the customer did not respond.

Credit card and other consumer

Financing Receivable, Impaired [Line Items]

Impaired Financing Receivables



Impaired Loans – Credit Card and Other Consumer – Renegotiated TDRs
					June 30, 2016						December 31, 2015
(Dollars in millions)					Unpaid Principal Balance		Carrying Value ⁽¹⁾		Related Allowance		Unpaid Principal Balance		Carrying Value ⁽¹⁾		Related Allowance
With no recorded allowance
Direct/Indirect consumer					$	49	$	21	$	—	$	50	$	21	$	—
With an allowance recorded
U.S. credit card					$	526	$	535	$	126	$	598	$	611	$	176
Non-U.S. credit card					91		107		62		109		126		70
Direct/Indirect consumer					7		9		1		17		21		4
Total
U.S. credit card					$	526	$	535	$	126	$	598	$	611	$	176
Non-U.S. credit card					91		107		62		109		126		70
Direct/Indirect consumer					56		30		1		67		42		4

	Three Months Ended June 30								Six Months Ended June 30
	2016				2015				2016				2015
	Average Carrying Value		Interest Income Recognized ⁽²⁾		Average Carrying Value		Interest Income Recognized ⁽²⁾		Average Carrying Value		Interest Income Recognized ⁽²⁾		Average Carrying Value		Interest Income Recognized ⁽²⁾
With no recorded allowance
Direct/Indirect consumer	$	21	$	—	$	24	$	—	$	21	$	—	$	24	$	—
With an allowance recorded
U.S. credit card	$	568	$	8	$	776	$	11	$	587	$	17	$	812	$	24
Non-U.S. credit card	116		1		150		1		119		2		154		2
Direct/Indirect consumer	11		—		57		1		15		—		69		2
Total
U.S. credit card	$	568	$	8	$	776	$	11	$	587	$	17	$	812	$	24
Non-U.S. credit card	116		1		150		1		119		2		154		2
Direct/Indirect consumer	32		—		81		1		36		—		93		2


⁽¹⁾	Includes accrued interest and fees.


⁽²⁾	Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.

Financing Receivable, Modifications [Line Items]

Troubled Debt Restructurings on Financing Receivables

The table below provides information on the Corporation's primary modification programs for the renegotiated TDR portfolio at June 30, 2016 and December 31, 2015.



Credit Card and Other Consumer – Renegotiated TDRs by Program Type
	Internal Programs				External Programs				Other ⁽¹⁾				Total				Percent of Balances Current or Less Than 30 Days Past Due
(Dollars in millions)	June 30 2016		December 31 2015		June 30 2016		December 31 2015		June 30 2016		December 31 2015		June 30 2016		December 31 2015		June 30 2016		December 31 2015
U.S. credit card	$	258	$	313	$	275	$	296	$	2	$	2	$	535	$	611	89.76	%	88.74	%
Non-U.S. credit card	15		21		8		10		84		95		107		126		43.86		44.25
Direct/Indirect consumer	5		11		3		7		22		24		30		42		93.10		89.12
Total renegotiated TDRs	$	278	$	345	$	286	$	313	$	108	$	121	$	672	$	779	82.54		81.55


⁽¹⁾	Other TDRs for non-U.S. credit card include modifications of accounts that are ineligible for a fixed payment plan.

The table below provides information on the Corporation's primary modification programs for the renegotiated TDR portfolio for loans that were modified in TDRs during the three and six months ended June 30, 2016 and 2015.



Credit Card and Other Consumer – Renegotiated TDRs Entered into During the Period by Program Type
	Three Months Ended June 30, 2016
(Dollars in millions)	Internal Programs		External Programs		Other ⁽¹⁾		Total
U.S. credit card	$	26	$	21	$	—	$	47
Non-U.S. credit card	1		1		34		36
Direct/Indirect consumer	—		—		4		4
Total renegotiated TDRs	$	27	$	22	$	38	$	87

	Three Months Ended June 30, 2015
U.S. credit card	$	43	$	23	$	—	$	66
Non-U.S. credit card	1		1		40		42
Direct/Indirect consumer	1		—		4		5
Total renegotiated TDRs	$	45	$	24	$	44	$	113

	Six Months Ended June 30, 2016
U.S. credit card	$	50	$	43	$	—	$	93
Non-U.S. credit card	1		2		59		62
Direct/Indirect consumer	—		—		7		7
Total renegotiated TDRs	$	51	$	45	$	66	$	162

	Six Months Ended June 30, 2015
U.S. credit card	$	88	$	45	$	—	$	133
Non-U.S. credit card	2		3		74		79
Direct/Indirect consumer	1		—		6		7
Total renegotiated TDRs	$	91	$	48	$	80	$	219

⁽¹⁾ Other TDRs for non-U.S. credit card include modifications of accounts that are ineligible for a fixed payment plan.

The table below provides information on the Corporation's renegotiated TDR portfolio including the June 30, 2016 and 2015 unpaid principal balance, carrying value and average pre- and post-modification interest rates of loans that were modified in TDRs during the three and six months ended June 30, 2016 and 2015, and net charge-offs recorded during the period in which the modification occurred.



Credit Card and Other Consumer – Renegotiated TDRs Entered into During the Three Months Ended June 30, 2016 and 2015
	June 30, 2016								Three Months Ended June 30, 2016
(Dollars in millions)	Unpaid Principal Balance		Carrying Value ⁽¹⁾		Pre-Modification Interest Rate		Post-Modification Interest Rate		Net Charge-offs
U.S. credit card	$	44	$	47	17.57	%	5.41	%	$	3
Non-U.S. credit card	30		36		24.01		0.35		7
Direct/Indirect consumer	7		4		4.52		4.34		3
Total	$	81	$	87	19.54		3.30		$	13

	June 30, 2015								Three Months Ended June 30, 2015
U.S. credit card	$	61	$	66	16.96	%	4.90	%	$	6
Non-U.S. credit card	36		42		24.19		0.34		10
Direct/Indirect consumer	7		5		6.03		5.05		2
Total	$	104	$	113	19.19		3.22		$	18

Credit Card and Other Consumer – Renegotiated TDRs Entered into During the Six Months Ended June 30, 2016 and 2015
	June 30, 2016								Six Months Ended June 30, 2016
U.S. credit card	$	87	$	93	17.47	%	5.47	%	$	4
Non-U.S. credit card	53		62		23.80		0.37		8
Direct/Indirect consumer	12		7		4.50		4.29		5
Total	$	152	$	162	19.30		3.47		$	17

	June 30, 2015								Six Months Ended June 30, 2015
U.S. credit card	$	123	$	133	16.98	%	5.01	%	$	8
Non-U.S. credit card	67		79		24.08		0.33		12
Direct/Indirect consumer	12		7		6.59		5.41		5
Total	$	202	$	219	19.17		3.35		$	25


⁽¹⁾	Includes accrued interest and fees.

Commercial

Financing Receivable, Impaired [Line Items]

Impaired Financing Receivables

The table below provides the unpaid principal balance, carrying value and related allowance at June 30, 2016 and December 31, 2015, and the average carrying value and interest income recognized for the three and six months ended June 30, 2016 and 2015 for impaired loans in the Corporation's Commercial loan portfolio segment. Certain impaired commercial loans do not have a related allowance as the valuation of these impaired loans exceeded the carrying value, which is net of previously recorded charge-offs.



Impaired Loans – Commercial

					June 30, 2016						December 31, 2015
(Dollars in millions)					Unpaid Principal Balance		Carrying Value		Related Allowance		Unpaid Principal Balance		Carrying Value		Related Allowance
With no recorded allowance
U.S. commercial					$	779	$	771	$	—	$	566	$	541	$	—
Commercial real estate					53		53		—		82		77		—
Non-U.S. commercial					29		29		—		4		4		—
With an allowance recorded
U.S. commercial					$	2,147	$	1,731	$	167	$	1,350	$	1,157	$	115
Commercial real estate					289		102		11		328		107		11
Commercial lease financing					5		3		—		—		—		—
Non-U.S. commercial					493		329		31		531		381		56
U.S. small business commercial ⁽¹⁾					96		84		29		105		101		35
Total
U.S. commercial					$	2,926	$	2,502	$	167	$	1,916	$	1,698	$	115
Commercial real estate					342		155		11		410		184		11
Commercial lease financing					5		3		—		—		—		—
Non-U.S. commercial					522		358		31		535		385		56
U.S. small business commercial ⁽¹⁾					96		84		29		105		101		35

	Three Months Ended June 30								Six Months Ended June 30
	2016				2015				2016				2015
	Average Carrying Value		Interest Income Recognized ⁽²⁾		Average Carrying Value		Interest Income Recognized ⁽²⁾		Average Carrying Value		Interest Income Recognized ⁽²⁾		Average Carrying Value		Interest Income Recognized ⁽²⁾
With no recorded allowance
U.S. commercial	$	656	$	3	$	710	$	5	$	619	$	5	$	669	$	8
Commercial real estate	65		—		83		—		71		—		77		1
Non-U.S. commercial	17		—		34		1		11		—		19		1
With an allowance recorded
U.S. commercial	$	1,646	$	16	$	904	$	12	$	1,544	$	30	$	862	$	25
Commercial real estate	96		1		232		2		100		2		282		5
Commercial lease financing	1		—		—		—		1		—		—		—
Non-U.S. commercial	349		3		118		—		359		6		92		1
U.S. small business commercial ⁽¹⁾	92		—		108		—		97		—		114		—
Total
U.S. commercial	$	2,302	$	19	$	1,614	$	17	$	2,163	$	35	$	1,531	$	33
Commercial real estate	161		1		315		2		171		2		359		6
Commercial lease financing	1		—		—		—		1		—		—		—
Non-U.S. commercial	366		3		152		1		370		6		111		2
U.S. small business commercial ⁽¹⁾	92		—		108		—		97		—		114		—


⁽¹⁾	Includes U.S. small business commercial renegotiated TDR loans and related allowance.


⁽²⁾	Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible.

Financing Receivable, Modifications [Line Items]

Troubled Debt Restructurings on Financing Receivables

The table below presents the June 30, 2016 and 2015 unpaid principal balance and carrying value of commercial loans that were modified as TDRs during the three and six months ended June 30, 2016 and 2015, and net charge-offs that were recorded during the period in which the modification occurred. The table below includes loans that were initially classified as TDRs during the period and also loans that had previously been classified as TDRs and were modified again during the period.



Commercial – TDRs Entered into During the Three Months Ended June 30, 2016 and 2015
	June 30, 2016				Three Months Ended June 30, 2016
(Dollars in millions)	Unpaid Principal Balance		Carrying Value		Net Charge-offs
U.S. commercial	$	873	$	849	$	24
Commercial real estate	12		12		—
Commercial leasing	5		2		2
Non-U.S. commercial	115		99		12
U.S. small business commercial ⁽¹⁾	2		2		—
Total	$	1,007	$	964	$	38

	June 30, 2015				Three Months Ended June 30, 2015
U.S. commercial	$	602	$	583	$	3
Commercial real estate	4		4		—
Non-U.S. commercial	59		59		—
U.S. small business commercial ⁽¹⁾	1		1		—
Total	$	666	$	647	$	3

Commercial – TDRs Entered into During the Six Months Ended June 30, 2016 and 2015
	June 30, 2016				Six Months Ended June 30, 2016
U.S. commercial	$	1,341	$	1,299	$	29
Commercial real estate	22		22		1
Commercial leasing	5		2		2
Non-U.S. commercial	287		207		48
U.S. small business commercial ⁽¹⁾	3		3		—
Total	$	1,658	$	1,533	$	80

	June 30, 2015				Six Months Ended June 30, 2015
U.S. commercial	$	794	$	773	$	6
Commercial real estate	28		28		—
Non-U.S. commercial	66		66		—
U.S. small business commercial ⁽¹⁾	3		4		—
Total	$	891	$	871	$	6


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