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)

3 Months Ended

Mar. 31, 2017

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 March 31, 2017 and December 31, 2016.

In connection with an agreement to sell the Corporation's non-U.S. consumer credit card business, this business, which includes $9.5 billion and $9.2 billion of non-U.S. credit card loans and related allowance for loan and lease losses of $242 million and $243 million, was reclassified to assets of business held for sale on the Consolidated Balance Sheet as of March 31, 2017 and December 31, 2016. In this Note, all applicable amounts include these balances, unless otherwise noted. For additional information, see Note 1 – Summary of Significant Accounting Principles.




	March 31, 2017
(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	$	1,013		$	313		$	1,125		$	2,451		$	157,908								$	160,359
Home equity	220			109			411			740			46,990									47,730
Non-core portfolio
Residential mortgage ⁽⁵⁾	1,077			553			4,683			6,313			17,340			$	9,831					33,484
Home equity	251			126			763			1,140			11,649			3,396						16,185
Credit card and other consumer
U.S. credit card	459			320			801			1,580			86,972									88,552
Non-U.S. credit card	38			28			71			137			9,368									9,505
Direct/Indirect consumer ⁽⁶⁾	218			64			32			314			92,480									92,794
Other consumer ⁽⁷⁾	17			6			5			28			2,511									2,539
Total consumer	3,293			1,519			7,891			12,703			425,218			13,227						451,148
Consumer loans accounted for under the fair value option ⁽⁸⁾																			$	1,032		1,032
Total consumer loans and leases	3,293			1,519			7,891			12,703			425,218			13,227			1,032			452,180
Commercial
U.S. commercial	650			639			363			1,652			273,216									274,868
Commercial real estate ⁽⁹⁾	25			—			48			73			57,776									57,849
Commercial lease financing	157			29			10			196			21,677									21,873
Non-U.S. commercial	189			127			45			361			88,818									89,179
U.S. small business commercial	72			39			78			189			13,113									13,302
Total commercial	1,093			834			544			2,471			454,600									457,071
Commercial loans accounted for under the fair value option ⁽⁸⁾																			6,496			6,496
Total commercial loans and leases	1,093			834			544			2,471			454,600						6,496			463,567
Total consumer and commercial loans and leases⁽¹⁰⁾	$	4,386		$	2,353		$	8,435		$	15,174		$	879,818		$	13,227		$	7,528		$	915,747
Less: Loans of business held for sale⁽¹⁰⁾																						(9,505		)
Total loans and leases ⁽¹¹⁾																						$	906,242
Percentage of outstandings ⁽¹⁰⁾	0.48		%	0.26		%	0.92		%	1.66		%	96.08		%	1.44		%	0.82		%	100.00		%


⁽¹⁾	Consumer real estate loans 30-59 days past due includes fully-insured loans of $845 million and nonperforming loans of $259 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $460 million and nonperforming loans of $210 million.


⁽²⁾	Consumer real estate includes fully-insured loans of $4.2 billion.


⁽³⁾	Consumer real estate includes $2.3 billion and direct/indirect consumer includes $18 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 $1.8 billion. The Corporation no longer originates this product.


⁽⁶⁾	Total outstandings includes auto and specialty lending loans of $48.7 billion, unsecured consumer lending loans of $530 million, U.S. securities-based lending loans of $39.5 billion, non-U.S. consumer loans of $2.9 billion, student loans of $479 million and other consumer loans of $644 million.


⁽⁷⁾	Total outstandings includes consumer finance loans of $441 million, consumer leases of $2.0 billion and consumer overdrafts of $124 million.


⁽⁸⁾	Consumer loans accounted for under the fair value option were residential mortgage loans of $694 million and home equity loans of $338 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $3.5 billion and non-U.S. commercial loans of $3.0 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 $54.7 billion and non-U.S. commercial real estate loans of $3.1 billion.


⁽¹⁰⁾	Includes non-U.S. credit card loans, which are included in assets of business held for sale on the Consolidated Balance Sheet.


⁽¹¹⁾	The Corporation pledged $144.4 billion of loans to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank (FHLB). This amount is not included in the parenthetical disclosure of loans and leases pledged as collateral on the Consolidated Balance Sheet as there were no related outstanding borrowings.




	December 31, 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	$	1,340		$	425		$	1,213		$	2,978		$	153,519								$	156,497
Home equity	239			105			451			795			48,578									49,373
Non-core portfolio
Residential mortgage ⁽⁵⁾	1,338			674			5,343			7,355			17,818			$	10,127					35,300
Home equity	260			136			832			1,228			12,231			3,611						17,070
Credit card and other consumer
U.S. credit card	472			341			782			1,595			90,683									92,278
Non-U.S. credit card	37			27			66			130			9,084									9,214
Direct/Indirect consumer ⁽⁶⁾	272			79			34			385			93,704									94,089
Other consumer ⁽⁷⁾	26			8			6			40			2,459									2,499
Total consumer	3,984			1,795			8,727			14,506			428,076			13,738						456,320
Consumer loans accounted for under the fair value option ⁽⁸⁾																			$	1,051		1,051
Total consumer loans and leases	3,984			1,795			8,727			14,506			428,076			13,738			1,051			457,371
Commercial
U.S. commercial	952			263			400			1,615			268,757									270,372
Commercial real estate ⁽⁹⁾	20			10			56			86			57,269									57,355
Commercial lease financing	167			21			27			215			22,160									22,375
Non-U.S. commercial	348			4			5			357			89,040									89,397
U.S. small business commercial	96			49			84			229			12,764									12,993
Total commercial	1,583			347			572			2,502			449,990									452,492
Commercial loans accounted for under the fair value option ⁽⁸⁾																			6,034			6,034
Total commercial loans and leases	1,583			347			572			2,502			449,990						6,034			458,526
Total consumer and commercial loans and leases⁽¹⁰⁾	$	5,567		$	2,142		$	9,299		$	17,008		$	878,066		$	13,738		$	7,085		$	915,897
Less: Loans of business held for sale⁽¹⁰⁾																						(9,214		)
Total loans and leases ⁽¹¹⁾																						$	906,683
Percentage of outstandings ⁽¹⁰⁾	0.61		%	0.23		%	1.02		%	1.86		%	95.87		%	1.50		%	0.77		%	100.00		%


⁽¹⁾	Consumer real estate loans 30-59 days past due includes fully-insured loans of $1.1 billion and nonperforming loans of $266 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $547 million and nonperforming loans of $216 million.


⁽²⁾	Consumer real estate includes fully-insured loans of $4.8 billion.


⁽³⁾	Consumer real estate includes $2.5 billion and direct/indirect consumer includes $27 million of nonperforming loans.


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


⁽⁵⁾	Total outstandings includes pay option loans of $1.8 billion. The Corporation no longer originates this product.


⁽⁶⁾	Total outstandings includes auto and specialty lending loans of $48.9 billion, unsecured consumer lending loans of $585 million, U.S. securities-based lending loans of $40.1 billion, non-U.S. consumer loans of $3.0 billion, student loans of $497 million and other consumer loans of $1.1 billion.


⁽⁷⁾	Total outstandings includes consumer finance loans of $465 million, consumer leases of $1.9 billion and consumer overdrafts of $157 million.


⁽⁸⁾	Consumer loans accounted for under the fair value option were residential mortgage loans of $710 million and home equity loans of $341 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.9 billion and non-U.S. commercial loans of $3.1 billion. For more 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 $3.1 billion.


⁽¹⁰⁾	Includes non-U.S. credit card loans, which are included in assets of business held for sale on the Consolidated Balance Sheet.


⁽¹¹⁾	The Corporation pledged $143.1 billion of loans to secure potential borrowing capacity with the Federal Reserve Bank and FHLB. This amount is not included in the parenthetical disclosure of loans and leases pledged as collateral on the Consolidated Balance Sheet as there were no related outstanding borrowings.

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 March 31, 2017 and December 31, 2016. Nonperforming loans held-for-sale (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 2016 Annual Report on Form 10-K.




Credit Quality

	Nonperforming Loans and Leases				Accruing Past Due 90 Days or More
(Dollars in millions)	March 31 2017		December 31 2016		March 31 2017		December 31 2016
Consumer real estate
Core portfolio
Residential mortgage ⁽¹⁾	$	1,099	$	1,274	$	443	$	486
Home equity	939		969		—		—
Non-core portfolio
Residential mortgage⁽¹⁾	1,630		1,782		3,783		4,307
Home equity	1,857		1,949		—		—
Credit card and other consumer
U.S. credit card	n/a		n/a		801		782
Non-U.S. credit card	n/a		n/a		71		66
Direct/Indirect consumer	19		28		31		34
Other consumer	2		2		4		4
Total consumer	5,546		6,004		5,133		5,679
Commercial
U.S. commercial	1,246		1,256		112		106
Commercial real estate	74		72		—		7
Commercial lease financing	37		36		9		19
Non-U.S. commercial	311		279		45		5
U.S. small business commercial	60		60		69		71
Total commercial	1,728		1,703		235		208
Total loans and leases	$	7,274	$	7,707	$	5,368	$	5,887

⁽¹⁾

Residential mortgage loans in the core and non-core portfolios accruing past due 90 days or more are fully-insured loans. At March 31, 2017 and December 31, 2016, residential mortgage includes $2.7 billion and $3.0 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 $1.5 billion and $1.8 billion of loans on which interest is still accruing.

n/a = not applicable

Financing Receivable Credit Quality Indicators

The following tables present certain credit quality indicators for the Corporation’s Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at March 31, 2017 and December 31, 2016.




Consumer Real Estate – Credit Quality Indicators ⁽¹⁾
	March 31, 2017
(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	$	134,410	$	13,745	$	7,762	$	45,750	$	8,358	$	1,884
Greater than 90 percent but less than or equal to 100 percent	3,509		1,318		944		912		1,541		582
Greater than 100 percent	1,741		1,728		1,125		1,068		2,890		930
Fully-insured loans ⁽⁵⁾	20,699		6,862		—		—		—		—
Total consumer real estate	$	160,359	$	23,653	$	9,831	$	47,730	$	12,789	$	3,396
Refreshed FICO score
Less than 620	$	2,403	$	2,987	$	2,643	$	1,214	$	2,566	$	533
Greater than or equal to 620 and less than 680	5,039		2,620		2,118		2,738		2,908		597
Greater than or equal to 680 and less than 740	22,530		4,293		2,834		9,495		3,068		998
Greater than or equal to 740	109,688		6,891		2,236		34,283		4,247		1,268
Fully-insured loans ⁽⁵⁾	20,699		6,862		—		—		—		—
Total consumer real estate	$	160,359	$	23,653	$	9,831	$	47,730	$	12,789	$	3,396


⁽¹⁾	Excludes $1.0 billion of loans accounted for under the fair value option.


⁽²⁾	Excludes PCI loans.


⁽³⁾	Includes $1.5 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

	March 31, 2017
(Dollars in millions)	U.S. Credit Card		Non-U.S. Credit Card		Direct/Indirect Consumer		Other Consumer ⁽¹⁾
Refreshed FICO score
Less than 620	$	4,432	$	—	$	1,572	$	182
Greater than or equal to 620 and less than 680	12,033		—		2,112		220
Greater than or equal to 680 and less than 740	33,708		—		12,479		414
Greater than or equal to 740	38,379		—		33,051		1,595
Other internal credit metrics ^{(2, 3, 4)}	—		9,505		43,580		128
Total credit card and other consumer	$	88,552	$	9,505	$	92,794	$	2,539


⁽¹⁾	At March 31, 2017, 17 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 $42.5 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $481 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 March 31, 2017, 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⁾

	March 31, 2017
(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	$	265,602	$	57,464	$	21,045	$	85,761	$	398
Reservable criticized	9,266		385		828		3,418		64
Refreshed FICO score ⁽³⁾
Less than 620									217
Greater than or equal to 620 and less than 680									609
Greater than or equal to 680 and less than 740									1,802
Greater than or equal to 740									3,402
Other internal credit metrics ^{(3, 4)}									6,810
Total commercial	$	274,868	$	57,849	$	21,873	$	89,179	$	13,302


⁽¹⁾	Excludes $6.5 billion of loans accounted for under the fair value option.


⁽²⁾	U.S. small business commercial includes $784 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 March 31, 2017, 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, 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	$	129,737	$	14,280	$	7,811	$	47,171	$	8,480	$	1,942
Greater than 90 percent but less than or equal to 100 percent	3,634		1,446		1,021		1,006		1,668		630
Greater than 100 percent	1,872		1,972		1,295		1,196		3,311		1,039
Fully-insured loans ⁽⁵⁾	21,254		7,475		—		—		—		—
Total consumer real estate	$	156,497	$	25,173	$	10,127	$	49,373	$	13,459	$	3,611
Refreshed FICO score
Less than 620	$	2,479	$	3,198	$	2,741	$	1,254	$	2,692	$	559
Greater than or equal to 620 and less than 680	5,094		2,807		2,241		2,853		3,094		636
Greater than or equal to 680 and less than 740	22,629		4,512		2,916		10,069		3,176		1,069
Greater than or equal to 740	105,041		7,181		2,229		35,197		4,497		1,347
Fully-insured loans ⁽⁵⁾	21,254		7,475		—		—		—		—
Total consumer real estate	$	156,497	$	25,173	$	10,127	$	49,373	$	13,459	$	3,611


⁽¹⁾	Excludes $1.1 billion of loans accounted for under the fair value option.


⁽²⁾	Excludes PCI loans.


⁽³⁾	Includes $1.6 billion of pay option loans. The Corporation no longer originates this product.


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


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




Credit Card and Other Consumer – Credit Quality Indicators

	December 31, 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	$	4,431	$	—	$	1,478	$	187
Greater than or equal to 620 and less than 680	12,364		—		2,070		222
Greater than or equal to 680 and less than 740	34,828		—		12,491		404
Greater than or equal to 740	40,655		—		33,420		1,525
Other internal credit metrics ^{(2, 3, 4)}	—		9,214		44,630		161
Total credit card and other consumer	$	92,278	$	9,214	$	94,089	$	2,499


⁽¹⁾	At December 31, 2016, 19 percent of the other consumer portfolio 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 $43.1 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $499 million of loans the Corporation no longer originates, primarily student loans.


⁽⁴⁾	Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2016, 98 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and one percent was 90 days or more past due.




Commercial – Credit Quality Indicators ⁽¹⁾

	December 31, 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	$	261,214	$	56,957	$	21,565	$	85,689	$	453
Reservable criticized	9,158		398		810		3,708		71
Refreshed FICO score ⁽³⁾
Less than 620									200
Greater than or equal to 620 and less than 680									591
Greater than or equal to 680 and less than 740									1,741
Greater than or equal to 740									3,264
Other internal credit metrics ^{(3, 4)}									6,673
Total commercial	$	270,372	$	57,355	$	22,375	$	89,397	$	12,993


⁽¹⁾	Excludes $6.0 billion of loans accounted for under the fair value option.


⁽²⁾	U.S. small business commercial includes $755 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2016, 98 percent of the balances where internal credit metrics are used was current or less than 30 days past due.


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


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

Financing Receivable, Modifications [Line Items]

Accretable Yield Activity

The table below shows activity for the accretable yield on PCI loans, which include the Countrywide Financial Corporation (Countrywide) portfolio and loans repurchased in connection with the 2013 settlement with FNMA. The amount of accretable yield is affected by changes in credit outlooks, including metrics such as default rates and loss severities, prepayment speeds, which can change the amount and period of time over which interest payments are expected to be received, and the interest rates on variable rate loans.




Rollforward of Accretable Yield

(Dollars in millions)	Three Months Ended March 31, 2017
Accretable yield, January 1, 2017	$	3,805
Accretion	(163		)
Disposals/transfers	(91		)
Reclassifications to nonaccretable difference	(1		)
Accretable yield, March 31, 2017	$	3,550

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 March 31, 2017 and December 31, 2016, and the average carrying value and interest income recognized for the three months ended March 31, 2017 and 2016 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

	March 31, 2017						December 31, 2016
(Dollars in millions)	Unpaid Principal Balance		Carrying Value		Related Allowance		Unpaid Principal Balance		Carrying Value		Related Allowance
With no recorded allowance
Residential mortgage	$	10,367	$	8,024	$	—	$	11,151	$	8,695	$	—
Home equity	3,701		1,962		—		3,704		1,953		—
With an allowance recorded
Residential mortgage	$	3,975	$	3,856	$	241	$	4,041	$	3,936	$	219
Home equity	971		880		169		910		824		137
Total
Residential mortgage	$	14,342	$	11,880	$	241	$	15,192	$	12,631	$	219
Home equity	4,672		2,842		169		4,614		2,777		137

	Three Months Ended March 31
	2017				2016
	Average Carrying Value		Interest Income Recognized ⁽¹⁾		Average Carrying Value		Interest Income Recognized ⁽¹⁾
With no recorded allowance
Residential mortgage	$	8,456	$	79	$	11,418	$	94
Home equity	1,991		27		1,808		13
With an allowance recorded
Residential mortgage	$	3,832	$	35	$	6,072	$	51
Home equity	825		5		898		6
Total
Residential mortgage	$	12,288	$	114	$	17,490	$	145
Home equity	2,816		32		2,706		19


⁽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 March 31, 2017 and 2016 carrying value for consumer real estate loans that were modified in a TDR during the three months ended March 31, 2017 and 2016 by type of modification.




Consumer Real Estate – Modification Programs

	TDRs Entered into During the Three Months Ended March 31
	2017				2016
(Dollars in millions)	Residential Mortgage		Home Equity		Residential Mortgage		Home Equity
Modifications under government programs
Contractual interest rate reduction	$	28	$	4	$	22	$	5
Principal and/or interest forbearance	1		—		—		2
Other modifications ⁽¹⁾	2		—		9		—
Total modifications under government programs	31		4		31		7
Modifications under proprietary programs
Contractual interest rate reduction	13		1		12		1
Capitalization of past due amounts	5		—		7		1
Principal and/or interest forbearance	2		1		3		—
Other modifications⁽¹⁾	1		29		1		1
Total modifications under proprietary programs	21		31		23		3
Trial modifications	237		135		368		149
Loans discharged in Chapter 7 bankruptcy ⁽²⁾	55		19		66		22
Total modifications	$	344	$	189	$	488	$	181


⁽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 March 31, 2017 and 2016 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 months ended March 31, 2017 and 2016, 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 March 31, 2017 and 2016 ⁽¹⁾

	March 31, 2017								Three Months Ended March 31, 2017
(Dollars in millions)	Unpaid Principal Balance		Carrying Value		Pre-Modification Interest Rate		Post-Modification Interest Rate ⁽²⁾		Net Charge-offs ⁽³⁾
Residential mortgage	$	382	$	344	4.68	%	4.44	%	$	2
Home equity	248		189		4.90		3.80		6
Total	$	630	$	533	4.77		4.19		$	8

	March 31, 2016								Three Months Ended March 31, 2016
Residential mortgage	$	526	$	488	4.72	%	4.61	%	$	2
Home equity	231		181		3.50		3.39		10
Total	$	757	$	669	4.35		4.24		$	12


⁽¹⁾	During the three months ended March 31, 2017 and 2016, the Corporation forgave principal of $0 and $10 million related to residential mortgage loans in connection with TDRs.


⁽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 March 31, 2017 and 2016 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 months ended March 31, 2017 and 2016 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 March 31
	2017				2016
(Dollars in millions)	Residential Mortgage		Home Equity		Residential Mortgage		Home Equity
Modifications under government programs	$	25	$	1	$	93	$	—
Modifications under proprietary programs	16		18		43		22
Loans discharged in Chapter 7 bankruptcy ⁽¹⁾	58		4		40		5
Trial modifications ⁽²⁾	195		17		237		37
Total modifications	$	294	$	40	$	413	$	64


⁽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

Financing Receivable, Impaired [Line Items]

Impaired Financing Receivables




Impaired Loans – Credit Card and Other Consumer

	March 31, 2017						December 31, 2016
(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	$	43	$	18	$	—	$	49	$	22	$	—
With an allowance recorded
U.S. credit card	$	464	$	470	$	130	$	479	$	485	$	128
Non-U.S. credit card	90		104		65		88		100		61
Direct/Indirect consumer	2		2		—		3		3		—
Total
U.S. credit card	$	464	$	470	$	130	$	479	$	485	$	128
Non-U.S. credit card	90		104		65		88		100		61
Direct/Indirect consumer	45		20		—		52		25		—

	Three Months Ended March 31
	2017				2016
	Average Carrying Value		Interest Income Recognized ⁽²⁾		Average Carrying Value		Interest Income Recognized ⁽²⁾
With no recorded allowance
Direct/Indirect consumer	$	19	$	—	$	21	$	—
With an allowance recorded
U.S. credit card	$	477	$	6	$	606	$	9
Non-U.S. credit card	102		1		122		1
Direct/Indirect consumer	3		—		18		—
Total
U.S. credit card	$	477	$	6	$	606	$	9
Non-U.S. credit card	102		1		122		1
Direct/Indirect consumer	22		—		39		—


⁽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 Credit Card and Other Consumer TDR portfolio including the March 31, 2017 and 2016 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during three months ended March 31, 2017 and 2016, and net charge-offs recorded during the period in which the modification occurred.




Credit Card and Other Consumer – TDRs Entered into During the Three Months Ended March 31, 2017 and 2016

	March 31, 2017								Three Months Ended March 31, 2017
(Dollars in millions)	Unpaid Principal Balance		Carrying Value ⁽¹⁾		Pre-Modification Interest Rate		Post-Modification Interest Rate		Net Charge-offs
U.S. credit card	$	52	$	55	18.01	%	5.30	%	$	1
Non-U.S. credit card	34		40		23.89		0.34		1
Direct/Indirect consumer	10		6		4.08		4.04		4
Total	$	96	$	101	19.51		3.28		$	6

	March 31, 2016								Three Months Ended March 31, 2016
U.S. credit card	$	46	$	50	17.44	%	5.51	%	$	1
Non-U.S. credit card	32		38		24.23		0.36		1
Direct/Indirect consumer	7		4		4.27		4.08		2
Total	$	85	$	92	19.59		3.34		$	4


⁽¹⁾	Includes accrued interest and fees.

The table below provides information on the Corporation’s primary modification programs for the Credit Card and Other Consumer TDR portfolio at March 31, 2017 and December 31, 2016.




Credit Card and Other Consumer – 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)	March 31 2017		December 31 2016		March 31 2017		December 31 2016		March 31 2017		December 31 2016		March 31 2017		December 31 2016		March 31 2017		December 31 2016
U.S. credit card	$	210	$	220	$	259	$	264	$	1	$	1	$	470	$	485	88.55	%	88.99	%
Non-U.S. credit card	10		11		7		7		87		82		104		100		37.88		38.47
Direct/Indirect consumer	1		2		1		1		18		22		20		25		91.60		90.49
Total TDRs by program type	$	221	$	233	$	267	$	272	$	106	$	105	$	594	$	610	79.80		80.79


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

Commercial Portfolio Segment

Financing Receivable, Impaired [Line Items]

Impaired Financing Receivables

The table below provides the unpaid principal balance, carrying value and related allowance at March 31, 2017 and December 31, 2016, and the average carrying value and interest income recognized for the three months ended March 31, 2017 and 2016 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

	March 31, 2017						December 31, 2016
(Dollars in millions)	Unpaid Principal Balance		Carrying Value		Related Allowance		Unpaid Principal Balance		Carrying Value		Related Allowance
With no recorded allowance
U.S. commercial	$	983	$	937	$	—	$	860	$	827	$	—
Commercial real estate	54		48		—		77		71		—
Non-U.S. commercial	85		85		—		130		130		—
With an allowance recorded
U.S. commercial	$	1,676	$	1,330	$	131	$	2,018	$	1,569	$	132
Commercial real estate	201		65		12		243		96		10
Commercial lease financing	5		2		—		6		4		—
Non-U.S. commercial	568		476		103		545		432		104
U.S. small business commercial ⁽¹⁾	87		73		28		85		73		27
Total
U.S. commercial	$	2,659	$	2,267	$	131	$	2,878	$	2,396	$	132
Commercial real estate	255		113		12		320		167		10
Commercial lease financing	5		2		—		6		4		—
Non-U.S. commercial	653		561		103		675		562		104
U.S. small business commercial ⁽¹⁾	87		73		28		85		73		27

	Three Months Ended March 31
	2017				2016
	Average Carrying Value		Interest Income Recognized ⁽²⁾		Average Carrying Value		Interest Income Recognized ⁽²⁾
With no recorded allowance
U.S. commercial	$	882	$	3	$	583	$	2
Commercial real estate	60		—		77		—
Non-U.S. commercial	108		—		5		—
With an allowance recorded
U.S. commercial	$	1,487	$	9	$	1,439	$	14
Commercial real estate	76		1		104		1
Commercial lease financing	3		—		—		—
Non-U.S. commercial	453		3		368		3
U.S. small business commercial ⁽¹⁾	74		—		102		—
Total
U.S. commercial	$	2,369	$	12	$	2,022	$	16
Commercial real estate	136		1		181		1
Commercial lease financing	3		—		—		—
Non-U.S. commercial	561		3		373		3
U.S. small business commercial ⁽¹⁾	74		—		102		—


⁽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 March 31, 2017 and 2016 unpaid principal balance and carrying value of commercial loans that were modified as TDRs during the three months ended March 31, 2017 and 2016, 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 March 31, 2017 and 2016

	March 31, 2017				Three Months Ended March 31, 2017
(Dollars in millions)	Unpaid Principal Balance		Carrying Value		Net Charge-offs
U.S. commercial	$	468	$	440	$	41
Commercial real estate	15		9		—
Commercial lease financing	—		—		—
Non-U.S. commercial	—		—		—
U.S. small business commercial ⁽¹⁾	2		2		—
Total	$	485	$	451	$	41

	March 31, 2016				Three Months Ended March 31, 2016
U.S. commercial	$	642	$	625	$	5
Commercial real estate	13		12		1
Non-U.S. commercial	199		163		36
U.S. small business commercial ⁽¹⁾	3		4		—
Total	$	857	$	804	$	42


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