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Loans and asset quality (Tables)
 3 Months Ended
Mar. 31, 2016
Receivables [Abstract]  
Loan Portfolio
The table below provides the details of our loan portfolio and industry concentrations of credit risk at March 31, 2016 and Dec. 31, 2015.

Loans
March 31, 2016

Dec. 31, 2015

(in millions)
Domestic:
 
 
Financial institutions
$
5,586

$
6,640

Commercial
2,130

2,115

Wealth management loans and mortgages
13,882

13,247

Commercial real estate
4,282

3,899

Lease financings
978

1,007

Other residential mortgages
1,062

1,055

Overdrafts
917

911

Other
1,106

1,137

Margin loans
18,674

19,340

Total domestic
48,617

49,351

Foreign:
 
 
Financial institutions
7,317

9,259

Commercial
201

227

Wealth management loans and mortgages
93

100

Commercial real estate
44

46

Lease financings
743

850

Other (primarily overdrafts)
4,502

3,637

Margin loans
144

233

Total foreign
13,044

14,352

Total loans (a)
$
61,661

$
63,703

(a)
Net of unearned income of $592 million at March 31, 2016 and $674 million at Dec. 31, 2015 primarily on domestic and foreign lease financings.
Allowance for Credit Losses Activity
Transactions in the allowance for credit losses are summarized as follows:

Allowance for credit losses activity for the quarter ended March 31, 2016
Wealth management loans and mortgages

Other residential mortgages

 
 
 
 
(in millions)
Commercial

Commercial
real estate

Financial
institutions

Lease
financings

All
Other

 
Foreign

Total

Beginning balance
$
82

$
59

$
31

$
15

$
19

$
34

$
—

 
$
35

$
275

Charge-offs
—

—

—

—

—

—

—

 
—

—

Recoveries
—

—

—

—

—

2

—

 
—

2

Net (charge-offs) recoveries
—

—

—

—

—

2

—

 
—

2

Provision
6

3

1

1

(1
)
(4
)
—

 
4

10

Ending balance
$
88

$
62

$
32

$
16

$
18

$
32

$
—

 
$
39

$
287

Allowance for:
 
 
 
 
 
 
 
 
 
 
Loan losses
$
25

$
40

$
11

$
16

$
15

$
32

$
—

 
$
23

$
162

Lending-related commitments
63

22

21

—

3

—

—

 
16

125

Individually evaluated for impairment:
 
 
 
 
 
 
 
 
 
 
Loan balance
$
—

$
2

$
171

$
5

$
8

$
—

$
—

 
$
—

$
186

Allowance for loan losses
—

1

—

2

1

—

—

 
—

4

Collectively evaluated for impairment:
 
 
 
 
 
 
 
 
 
 
Loan balance
$
2,130

$
3,927

$
5,415

$
973

$
13,874

$
993

$
20,697

(a)
$
13,044

$
61,053

Allowance for loan losses
25

39

11

14

14

32

—

 
23

158

(a)
Includes $917 million of domestic overdrafts, $18,674 million of margin loans and $1,106 million of other loans at March 31, 2016.


Allowance for credit losses activity for the quarter ended Dec. 31, 2015
Wealth management loans and mortgages

Other residential mortgages

 
 
 
 
(in millions)
Commercial

Commercial
real estate

Financial
institutions

Lease
financings

All
Other

 
Foreign

Total

Beginning balance
$
76

$
62

$
28

$
18

$
23

$
35

$
—

 
$
38

$
280

Charge-offs
—

—

(170
)
—

—

—

—

 
—

(170
)
Recoveries
—

—

—

—

—

2

—

 
—

2

Net (charge-offs) recoveries
—

—

(170
)
—

—

2

—

 
—

(168
)
Provision
6

(3
)
173

(3
)
(4
)
(3
)
—

 
(3
)
163

Ending balance
$
82

$
59

$
31

$
15

$
19

$
34

$
—

 
$
35

$
275

Allowance for:
 
 
 
 
 
 
 
 
 
 
Loan losses
$
24

$
37

$
9

$
15

$
15

$
34

$
—


$
23

$
157

Lending-related commitments
58

22

22

—

4

—

—


12

118

Individually evaluated for impairment:
 
 
 
 
 
 
 
 
 
 
Loan balance
$
—

$
1

$
171

$
—

$
8

$
—

$
—


$
—

$
180

Allowance for loan losses
—

1

—

—

1

—

—


—

2

Collectively evaluated for impairment:
 
 
 
 
 
 
 
 
 
 
Loan balance
$
2,115

$
3,496

$
6,469

$
1,007

$
13,239

$
1,035

$
21,388

(a)
$
14,352

$
63,101

Allowance for loan losses
24

36

9

15

14

34

—


23

155

(a)
Includes $911 million of domestic overdrafts, $19,340 million of margin loans and $1,137 million of other loans at Dec. 31, 2015.


Allowance for credit losses activity for the quarter ended March 31, 2015
Wealth management loans and mortgages

Other residential mortgages

All
Other

 
Foreign

Total

(in millions)
Commercial

Commercial
real estate

Financial
institutions

Lease
financings

 
Beginning balance
$
60

$
50

$
31

$
32

$
22

$
41

$
—


$
44

$
280

Charge-offs
—

—

—

—

—

—

—


—

—

Recoveries
—

—

—

—

—

1

—


—

1

Net (charge-offs)
—

—

—

—

—

1

—


—

1

Provision
5

3

2

(1
)
(1
)
(2
)
—


(4
)
2

Ending balance
$
65

$
53

$
33

$
31

$
21

$
40

$
—


$
40

$
283

Allowance for:
 
 
 
 
 
 
 
 
 
 
Loan losses
$
20

$
31

$
19

$
31

$
16

$
40

$
—


$
33

$
190

Lending-related commitments
45

22

14

—

5

—

—


7

93

Individually evaluated for impairment:
 
 
 
 
 
 
 
 
 
 
Loan balance
$
—

$
—

$
—

$
—

$
8

$
—

$
—


$
—

$
8

Allowance for loan losses
—

—

—

—

1

—

—


—

1

Collectively evaluated for impairment:
 
 
 
 
 
 
 
 
 
 
Loan balance
$
1,686

$
2,881

$
5,665

$
1,197

$
11,539

$
1,181

$
22,079

(a)
$
15,950

$
62,178

Allowance for loan losses
20

31

19

31

15

40

—


33

189

(a)
Includes $1,513 million of domestic overdrafts, $19,459 million of margin loans and $1,107 million of other loans at March 31, 2015.
Nonperforming Assets
The table below presents the distribution of our nonperforming assets. 

 
Nonperforming assets
(in millions)
March 31, 2016

Dec. 31, 2015

 
 
Nonperforming loans:
 
 
 
Financial institutions
$
171

$
171

 
Other residential mortgages
99

102

 
Wealth management loans and mortgages
11

11

 
Lease financings
5

—

 
Commercial real estate
2

2

 
Total nonperforming loans
288

286

 
Other assets owned
4

6

 
Total nonperforming assets
$
292

$
292
Lost Interest
The table below presents the amount of lost interest income.

Lost interest
 
 
 
(in millions)
1Q16

4Q15

1Q15

Amount by which interest income recognized on nonperforming loans exceeded reversals
$
—

$
—

$
—

Amount by which interest income would have increased if nonperforming loans at year-end had been performing for the entire period
$
1

$
2

$
2
Information about Impaired Loans
The tables below provide information about our impaired loans. We use the discounted cash flow method as the primary method for valuing impaired loans. 

Impaired loans
Quarter ended
 
March 31, 2016
 
Dec. 31, 2015
 
March 31, 2015
(in millions)
Average
recorded
investment

Interest
income
recognized

 
Average
recorded
investment

Interest
income
recognized

 
Average
recorded
investment

Interest
income
recognized

Impaired loans with an allowance:
 
 
 
 
 
 
 
 
Commercial real estate
$
1

$
—

 
$
1

$
—

 
$
—

$
—

Wealth management loans and mortgages
6

—

 
6

—

 
6

—

Lease financings
2

—

 
—

—

 
—

—

Total impaired loans with an allowance
9

—

 
7

—

 
6

—

Impaired loans without an allowance:
 
 
 
 
 
 
 
 
Commercial real estate
1

—

 
—

—

 
—

—

Financial institutions
171

—

 
1

—

 
—

—

Wealth management loans and mortgages
2

—

 
2

—

 
2

—

Total impaired loans without an allowance (a)
174

—

 
3

—

 
2

—

Total impaired loans
$
183

$
—

 
$
10

$
—

 
$
8

$
—

(a)
When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans.


Impaired loans
March 31, 2016
 
Dec. 31, 2015
(in millions)
Recorded
investment

Unpaid
principal
balance

Related
allowance (a)

 
Recorded
investment

Unpaid
principal
balance

Related
allowance (a)

Impaired loans with an allowance:
 
 
 
 
 
 
 
Commercial real estate
$
1

$
4

$
1

 
$
1

$
3

$
1

Wealth management loans and mortgages
6

6

1

 
6

7

1

Lease financings
5

5

2

 
—

—

—

Total impaired loans with an allowance
12

15

4

 
7

10

2

Impaired loans without an allowance:
 
 
 
 
 
 
 
Commercial real estate
1

1

N/A

 
—

—

N/A

Financial institutions
171

312

N/A

 
171

312

N/A

Wealth management loans and mortgages
2

2

N/A

 
2

2

N/A

Total impaired loans without an allowance (b)
174

315

N/A

 
173

314

N/A

Total impaired loans (c)
$
186

$
330

$
4

 
$
180

$
324

$
2

(a)
The allowance for impaired loans is included in the allowance for loan losses.
(b)
When the discounted cash flows, collateral value or market price equals or exceeds the carrying value of the loan, then the loan does not require an allowance under the accounting standard related to impaired loans.
(c)
Excludes less than $1 million and an aggregate of $2 million of impaired loans in amounts individually less than $1 million at March 31, 2016 and Dec. 31, 2015, respectively. The allowance for loan loss associated with these loans totaled less than $1 million at both March 31, 2016 and Dec. 31, 2015.
Information about Past Due Loans
The table below sets forth information about our past due loans. 

Past due loans and still accruing interest
March 31, 2016
 
Dec. 31, 2015
 
Days past due
Total
past due

 
Days past due
Total
past due

(in millions)
30-59

60-89

>90

30-59

60-89

>90

Commercial real estate
$
44

$
7

$
—

$
51

 
$
57

$
11

$
—

$
68

Financial institutions
1

—

—

1

 
—

—

—

—

Wealth management loans and mortgages
26

—

1

27

 
69

2

1

72

Other residential mortgages
15

4

4

23

 
22

5

4

31

Total past due loans
$
86

$
11

$
5

$
102


$
148

$
18

$
5

$
171

 
Troubled Debt Restructurings
The following table presents TDRs that occurred in the first quarter of 2016, fourth quarter of 2015 and first quarter of 2015.

TDRs
1Q16
 
4Q15
 
1Q15
 
 
Outstanding
recorded investment
 
 
Outstanding
recorded investment
 
 
Outstanding
recorded investment
(dollars in millions)
Number of
contracts

Pre-modification
 
Post-modification
 
 
Number of contracts

Pre-modification
 
Post-modification
 
 
Number of contracts

Pre-modification
 
Post-modification
 
Other residential mortgages
13

 
$
3

 
$
3

 
15

 
$
3

 
$
4

 
19

 
$
4

 
$
4

Wealth management loans and mortgages
2

 
—

 
—

 
4

 
—

 
—

 
—

 
—

 
—

Total TDRs
15

 
$
3

 
$
3

 
19

 
$
3

 
$
4

 
19

 
$
4

 
$
4
Credit Quality Indicators - Commercial Portfolio - Credit Risk Profile by Creditworthiness Category
The following tables set forth information about credit quality indicators.

Commercial loan portfolio

Commercial loan portfolio – Credit risk profile by creditworthiness category
 
Commercial
 
Commercial real estate
 
Financial institutions
(in millions)
March 31,
2016

 
Dec. 31, 2015

 
March 31,
2016

 
Dec. 31, 2015

 
March 31,
2016

 
Dec. 31, 2015

Investment grade
$
2,014

 
$
2,026

 
$
3,276

 
$
2,678

 
$
9,527

 
$
13,965

Non-investment grade
317

 
316

 
1,050

 
1,267

 
3,376

 
1,934

Total
$
2,331

 
$
2,342

 
$
4,326

 
$
3,945

 
$
12,903

 
$
15,899
Credit Quality Indicators - Wealth Management Loans and Mortgages - Credit Risk Profile by Internally Assigned Grade
Wealth management loans and mortgages

Wealth management loans and mortgages – Credit risk
profile by internally assigned grade
(in millions)
March 31,
2016

Dec. 31, 2015

Wealth management loans:
 
 
Investment grade
$
6,813

$
6,529

Non-investment grade
173

171

Wealth management mortgages
6,989

6,647

Total
$
13,975

$
13,347