Quarterly report pursuant to Section 13 or 15(d)

Outstanding Loans and Leases and Allowance for Credit Losses

v3.22.1
Outstanding Loans and Leases and Allowance for Credit Losses
3 Months Ended
Mar. 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 March 31, 2022 and December 31, 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) March 31, 2022
Consumer real estate            
Residential mortgage $ 860  $ 245  $ 1,414  $ 2,519  $ 223,511  $ 226,030 
Home equity 90  47  333  470  26,466  26,936 
Credit card and other consumer
Credit card 303  208  492  1,003  78,353  79,356 
Direct/Indirect consumer (2)
162  38  19  219  105,535  105,754 
Other consumer         205  205 
Total consumer 1,415  538  2,258  4,211  434,070  438,281 
Consumer loans accounted for under the fair value option (3)
          $ 568  568 
Total consumer loans and leases 1,415  538  2,258  4,211  434,070  568  438,849 
Commercial
U.S. commercial 1,192  205  374  1,771  329,202  330,973 
Non-U.S. commercial 143  42  111  296  121,971  122,267 
Commercial real estate (4)
405  58  283  746  61,787  62,533 
Commercial lease financing 69  7  18  94  13,914  14,008 
U.S. small business commercial (5)
76  58  321  455  17,517  17,972 
Total commercial 1,885  370  1,107  3,362  544,391  547,753 
Commercial loans accounted for under the fair value option (3)
          6,543  6,543 
Total commercial loans and leases 1,885  370  1,107  3,362  544,391  6,543  554,296 
Total loans and leases (6)
$ 3,300  $ 908  $ 3,365  $ 7,573  $ 978,461  $ 7,111  $ 993,145 
Percentage of outstandings 0.33  % 0.09  % 0.34  % 0.76  % 98.52  % 0.72  % 100.00  %
(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $172 million and nonperforming loans of $90 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $72 million and nonperforming loans of $87 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $573 million. Consumer real estate loans current or less than 30 days past due includes $1.7 billion and direct/indirect consumer includes $49 million of nonperforming loans.
(2)Total outstandings primarily includes auto and specialty lending loans and leases of $49.7 billion, U.S. securities-based lending loans of $51.9 billion and non-U.S. consumer loans of $3.2 billion.
(3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $248 million and home equity loans of $320 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $4.0 billion and non-U.S. commercial loans of $2.6 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.
(4)Total outstandings includes U.S. commercial real estate loans of $58.3 billion and non-U.S. commercial real estate loans of $4.3 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 $147.4 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. 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 14 – Fair Value Measurements and Note 15 – 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 $10.3 billion and $10.5 billion at March 31, 2022 and December 31, 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 $1.5 billion at March 31, 2022 from $1.6 billion at December 31, 2021. Consumer nonperforming loans increased to $3.1 billion at March 31, 2022 from $3.0 billion at December 31, 2021
primarily due to loans with expired payment deferrals that were modified in TDRs during the quarter.
The following table presents the Corporation’s nonperforming loans and leases, including nonperforming TDRs, and loans accruing past due 90 days or more at March 31, 2022 and December 31, 2021. 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 2021 Annual Report on Form 10-K.

Credit Quality
Nonperforming Loans
and Leases
Accruing Past Due
90 Days or More
(Dollars in millions) March 31
2022
December 31
2021
March 31
2022
December 31
2021
Residential mortgage (1)
$ 2,422  $ 2,284  $ 574  $ 634 
With no related allowance (2)
1,840  1,950    — 
Home equity (1)
615  630    — 
With no related allowance (2)
375  414    — 
Credit Card                      n/a               n/a 492  487 
Direct/indirect consumer 67  75  11  11 
Total consumer 3,104  2,989  1,077  1,132 
U.S. commercial 818  825  195  171 
Non-U.S. commercial 268  268  49  19 
Commercial real estate 361  382  17  40 
Commercial lease financing 54  80  14 
U.S. small business commercial 20  23  321  87 
Total commercial 1,521  1,578  596  325 
Total nonperforming loans $ 4,625  $ 4,567  $ 1,673  $ 1,457 
Percentage of outstanding loans and leases
0.47  % 0.47  % 0.17  % 0.15  %
(1)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At March 31, 2022 and December 31, 2021 residential mortgage includes $468 million and $444 million of loans on which interest had been curtailed by the Federal Housing Administration (FHA), and therefore were no longer accruing interest, although principal was still insured, and $106 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 to the Consolidated Financial Statements of the Corporation’s 2021 Annual Report on Form 10-K. Within the Consumer Real Estate portfolio segment, the primary credit quality indicators are refreshed loan-to-value (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 combined loan-to-value (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 for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by class of financing receivables and year of origination for term loan balances at March 31, 2022, including revolving loans that converted to term loans without an additional credit decision after origination or through a TDR.
Residential Mortgage – Credit Quality Indicators By Vintage
Term Loans by Origination Year
(Dollars in millions) Total as of
March 31,
 2022
2022 2021 2020 2019 2018 Prior
Residential Mortgage
Refreshed LTV
     
Less than or equal to 90 percent $ 210,901  $ 15,809  $ 85,059  $ 40,815  $ 21,330  $ 6,728  $ 41,160 
Greater than 90 percent but less than or equal to 100 percent
1,920  377  1,107  299  50  15  72 
Greater than 100 percent
798  172  384  123  31  79 
Fully-insured loans
12,411  128  3,906  3,361  1,072  193  3,751 
Total Residential Mortgage $ 226,030  $ 16,486  $ 90,456  $ 44,598  $ 22,483  $ 6,945  $ 45,062 
Residential Mortgage
Refreshed FICO score
Less than 620 $ 2,347  $ 144  $ 555  $ 415  $ 135  $ 99  $ 999 
Greater than or equal to 620 and less than 680
5,252  394  1,470  994  449  285  1,660 
Greater than or equal to 680 and less than 740
24,057  1,595  8,401  4,967  2,415  963  5,716 
Greater than or equal to 740
181,963  14,225  76,124  34,861  18,412  5,405  32,936 
Fully-insured loans
12,411  128  3,906  3,361  1,072  193  3,751 
Total Residential Mortgage $ 226,030  $ 16,486  $ 90,456  $ 44,598  $ 22,483  $ 6,945  $ 45,062 
Home Equity - Credit Quality Indicators
Total
Home Equity Loans and Reverse Mortgages (1)
Revolving Loans Revolving Loans Converted to Term Loans
(Dollars in millions) March 31, 2022
Home Equity
Refreshed LTV
     
Less than or equal to 90 percent $ 26,616  $ 1,635  $ 18,736  $ 6,245 
Greater than 90 percent but less than or equal to 100 percent
125  55  33  37 
Greater than 100 percent
195  81  55  59 
Total Home Equity $ 26,936  $ 1,771  $ 18,824  $ 6,341 
Home Equity
Refreshed FICO score
Less than 620 $ 814  $ 223  $ 190  $ 401 
Greater than or equal to 620 and less than 680
1,350  202  471  677 
Greater than or equal to 680 and less than 740
4,362  441  2,401  1,520 
Greater than or equal to 740
20,410  905  15,762  3,743 
Total Home Equity $ 26,936  $ 1,771  $ 18,824  $ 6,341 
(1)Includes reverse mortgages of $1.2 billion and home equity loans of $531 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 March 31,
 2022
Revolving Loans 2022 2021 2020 2019 2018 Prior Total Credit Card as of March 31,
 2022
Revolving Loans
Revolving Loans Converted to Term Loans (1)
Refreshed FICO score    
Less than 620 $ 697  $ 12  $ 27  $ 222  $ 115  $ 117  $ 67  $ 137  $ 3,006  $ 2,848  $ 158 
Greater than or equal to 620 and less than 680 2,331  13  273  1,077  373  269  121  205  9,070  8,881  189 
Greater than or equal to 680 and less than 740
8,582  56  1,313  3,929  1,443  924  373  544  27,436  27,256  180 
Greater than or equal to 740 38,247  88  5,145  14,606  7,812  5,496  2,195  2,905  39,844  39,799  45 
Other internal credit
   metrics (2,3)
55,897  55,121  83  315  52  75  44  207    —  — 
Total credit card and other
   consumer
$ 105,754  $ 55,290  $ 6,841  $ 20,149  $ 9,795  $ 6,881  $ 2,800  $ 3,998  $ 79,356  $ 78,784  $ 572 
(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 $55.1 billion of securities-based lending which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at March 31, 2022.
Commercial – Credit Quality Indicators By Vintage (1)
Term Loans
Amortized Cost Basis by Origination Year
(Dollars in millions) Total as of
March 31,
 2022
2022 2021 2020 2019 2018 Prior Revolving Loans
U.S. Commercial
Risk ratings        
Pass rated $ 321,428  $ 12,007  $ 52,543  $ 23,219  $ 21,446  $ 10,728  $ 34,128  $ 167,357 
Reservable criticized 9,545  19  658  710  1,150  1,471  1,206  4,331 
Total U.S. Commercial
$ 330,973  $ 12,026  $ 53,201  $ 23,929  $ 22,596  $ 12,199  $ 35,334  $ 171,688 
Non-U.S. Commercial
Risk ratings
Pass rated $ 119,178  $ 5,923  $ 24,744  $ 7,734  $ 6,085  $ 3,821  $ 5,428  $ 65,443 
Reservable criticized 3,089  60  407  528  431  180  718  765 
Total Non-U.S. Commercial
$ 122,267  $ 5,983  $ 25,151  $ 8,262  $ 6,516  $ 4,001  $ 6,146  $ 66,208 
Commercial Real Estate
Risk ratings
Pass rated $ 56,247  $ 3,355  $ 13,667  $ 6,787  $ 10,000  $ 5,456  $ 9,285  $ 7,697 
Reservable criticized 6,286  379  715  2,034  1,465  1,521  165 
Total Commercial Real Estate
$ 62,533  $ 3,362  $ 14,046  $ 7,502  $ 12,034  $ 6,921  $ 10,806  $ 7,862 
Commercial Lease Financing
Risk ratings
Pass rated $ 13,643  $ 464  $ 3,016  $ 2,232  $ 2,220  $ 1,815  $ 3,896  $ — 
Reservable criticized 365  —  28  30  104  59  144  — 
Total Commercial Lease Financing
$ 14,008  $ 464  $ 3,044  $ 2,262  $ 2,324  $ 1,874  $ 4,040  $ — 
U.S. Small Business Commercial (2)
Risk ratings
Pass rated $ 10,008  $ 383  $ 3,089  $ 2,353  $ 994  $ 734  $ 2,316  $ 139 
Reservable criticized 388  —  16  30  94  75  171 
Total U.S. Small Business Commercial
$ 10,396  $ 383  $ 3,105  $ 2,383  $ 1,088  $ 809  $ 2,487  $ 141 
 Total $ 540,177  $ 22,218  $ 98,547  $ 44,338  $ 44,558  $ 25,804  $ 58,813  $ 245,899 
(1) Excludes $6.5 billion of loans accounted for under the fair value option at March 31, 2022.
(2)     Excludes U.S. Small Business Card loans of $7.6 billion. Refreshed FICO scores for this portfolio are $198 million for less than 620; $658 million for greater than or equal to 620 and less than 680; $2.0 billion for greater than or equal to 680 and less than 740; and $4.7 billion greater than or equal to 740.
The following tables present certain credit quality indicators for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by class of financing receivables and year of origination for term loan balances at December 31, 2021, including revolving loans that converted to term loans without an additional credit decision after origination or through a TDR.
Residential Mortgage – Credit Quality Indicators By Vintage
Term Loans by Origination Year
(Dollars in millions) Total as of
 December 31,
 2021
2021 2020 2019 2018 2017 Prior
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 
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 the three months ended March 31, 2022, commercial credit quality showed signs of stabilization as the economy continued to improve. Commercial reservable criticized utilized exposure decreased to $20.7 billion at March 31, 2022 from $22.4 billion (to 3.54 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 $280 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 March 31, 2022, of which $78 million were classified as nonperforming and $49 million were loans fully insured.
At March 31, 2022 and December 31, 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 $118 million and $101 million at March 31, 2022 and December 31, 2021. The carrying value of consumer real estate loans, including fully-insured loans, for which formal foreclosure proceedings were in process at March 31, 2022 and December 31, 2021 was $1.0 billion and $1.1 billion. During the three months ended March 31, 2022 and 2021, the Corporation reclassified $56 million and $10 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 March 31, 2022 and 2021 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of consumer real estate loans that were modified in TDRs during the three months ended March 31, 2022 and 2021. 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, 2022 and 2021
Unpaid Principal Balance Carrying
Value
Pre-Modification Interest Rate
Post-Modification Interest Rate (1)
(Dollars in millions) March 31, 2022
Residential mortgage $ 585  $ 539  3.50  % 3.33  %
Home equity 92  75  3.62  3.63 
Total $ 677  $ 614  3.52  3.37 
March 31, 2021
Residential mortgage $ 519  $ 464  3.50  % 3.48  %
Home equity 62  49  3.43  3.44 
Total $ 581  $ 513  3.49  3.48 
(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 March 31, 2022 and 2021 carrying value for consumer real estate loans that were modified in a TDR during the three months ended March 31, 2022 and 2021, by type of modification.
Consumer Real Estate – Modification Programs
TDRs Entered into During the
Three Months Ended March 31
(Dollars in millions) 2022 2021
Modifications under government programs $   $
Modifications under proprietary programs 552  472 
Loans discharged in Chapter 7 bankruptcy (1)
5  11 
Trial modifications 57  29 
Total modifications $ 614  $ 513 
(1)Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
The table below presents the carrying value of consumer real estate loans that entered into payment default during the three months ended March 31, 2022 and 2021 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
Three Months Ended March 31
(Dollars in millions) 2022 2021
Modifications under government programs $   $
Modifications under proprietary programs 40  12 
Loans discharged in Chapter 7 bankruptcy (1)
1 
Trial modifications (2)
4 
Total modifications $ 45  $ 22 
(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 March 31, 2022 and 2021 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during the three months ended March 31, 2022 and 2021.
Credit Card and Other Consumer – TDRs Entered into During the Three Months Ended March 31, 2022 and 2021
  Unpaid Principal Balance
Carrying
Value
(1)
Pre-Modification Interest Rate Post-Modification Interest Rate
(Dollars in millions) March 31, 2022
Credit card $ 69  $ 73  18.67  % 3.69  %
Direct/Indirect consumer 4  3  5.75  5.75 
Total $ 73  $ 76  18.03  3.77 
March 31, 2021
Credit card $ 82  $ 90  18.55  % 4.97  %
Direct/Indirect consumer 5.64  5.64 
Total $ 90  $ 95  17.85  5.01 
(1)Includes accrued interest and fees.
The table below presents the March 31, 2022 and 2021 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during the three months ended March 31, 2022 and 2021 by program type.
Credit Card and Other Consumer – TDRs by Program Type (1)
TDRs Entered into During the
Three Months Ended March 31
(Dollars in millions)
2022 2021
Internal programs $ 63  $ 74 
External programs
10  17