XML 42 R29.htm IDEA: XBRL DOCUMENT

Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2022

The composition of the loan portfolio, disaggregated by class and underlying specific portfolio type, was as follows:


	September 30, 2022					December 31, 2021
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	126,930		37.0	%	$	106,912		34.3	%
Lease financing		4,757		1.4			5,111		1.6
Total commercial		131,687		38.4			112,023		35.9
Commercial Real Estate
Commercial mortgages		30,223		8.8			28,757		9.2
Construction and development		10,106		2.9			10,296		3.3
Total commercial real estate		40,329		11.7			39,053		12.5
Residential Mortgages
Residential mortgages		78,006		22.8			67,546		21.6
Home equity loans, first liens		8,268		2.4			8,947		2.9
Total residential mortgages		86,274		25.2			76,493		24.5
Credit Card		24,538		7.2			22,500		7.2
Other Retail
Retail leasing		6,037		1.8			7,256		2.3
Home equity and second mortgages		11,367		3.3			10,446		3.4
Revolving credit		2,721		.8			2,750		.9
Installment		16,417		4.8			16,514		5.3
Automobile		23,236		6.8			24,866		8.0
Student		102		–			127		–
Total other retail		59,880		17.5			61,959		19.9
Total loans	$	342,708		100.0	%	$	312,028		100.0	%

Activity in Allowance for Credit Losses by Portfolio Class

Activity in the allowance for credit losses by portfolio class was as follows:


Three Months Ended September 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans
2022
Balance at beginning of period		$1,896			$ 973			$658			$1,746			$ 982			$6,255
Add
Provision for credit losses		97			(7	)		38			222			12			362
Deduct
Loans charged-off		56			–			2			161			56			275
Less recoveries of loans charged-off		(29	)		(6	)		(7	)		(42	)		(29	)		(113	)
Net loan charge-offs (recoveries)		27			(6	)		(5	)		119			27			162
Balance at end of period		$1,966			$ 972			$701			$1,849			$967			$6,455
2021
Balance at beginning of period		$1,838			$1,409			$478			$1,891			$994			$6,610
Add
Provision for credit losses		(75	)		(104	)		3			(23	)		36			(163	)
Deduct
Loans charged-off		40			14			3			154			55			266
Less recoveries of loans charged-off		(26	)		(1	)		(13	)		(43	)		(36	)		(119	)
Net loan charge-offs (recoveries)		14			13			(10	)		111			19			147
Balance at end of period		$1,749			$1,292			$491			$1,757			$1,011			$6,300


Nine Months Ended September 30 (Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans
2022
Balance at beginning of period		$1,849			$1,123			$565			$1,673			$ 945			$6,155
Add
Provision for credit losses		206			(156	)		116			525			94			785
Deduct
Loans charged-off		164			10			9			481			167			831
Less recoveries of loans charged-off		(75	)		(15	)		(29	)		(132	)		(95	)		(346	)
Net loan charge-offs (recoveries)		89			(5	)		(20	)		349			72			485
Balance at end of period		$1,966			$ 972			$701			$1,849			$967			$6,455
2021
Balance at beginning of period		$2,423			$1,544			$573			$2,355			$1,115			$8,010
Add
Provision for credit losses		(577	)		(246	)		(107	)		(195	)		(35	)		(1,160	)
Deduct
Loans charged-off		184			28			13			536			193			954
Less recoveries of loans charged-off		(87	)		(22	)		(38	)		(133	)		(124	)		(404	)
Net loan charge-offs (recoveries)		97			6			(25	)		403			69			550
Balance at end of period		$1,749			$1,292			$491			$1,757			$1,011			$6,300

Summary of Loans by Portfolio Class, Including Delinquency Status of those that Continue to Accrue Interest and are Nonperforming

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:


	Accruing
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming (b)		Total
September 30, 2022
Commercial	$	131,189		$ 335		$ 41		$122		$131,687
Commercial real estate		40,135		8		19		167		40,329
Residential mortgages (a)		85,887		87		89		211		86,274
Credit card		24,120		237		181		–		24,538
Other retail		59,443		244		63		130		59,880
Total loans	$	340,774		$ 911		$393		$630		$342,708
December 31, 2021
Commercial	$	111,270		$ 530		$ 49		$174		$112,023
Commercial real estate		38,678		80		11		284		39,053
Residential mortgages (a)		75,962		124		181		226		76,493
Credit card		22,142		193		165		–		22,500
Other retail		61,468		275		66		150		61,959
Total loans	$	309,520		$1,202		$472		$834		$312,028

(a)

At September 30, 2022, $638 million of loans 30–89 days past due and $1.9 billion of loans 90 days or more past due purchased and that could be purchased from Government National Mortgage Association (“GNMA”) mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $791 million and $1.5 billion at December 31, 2021, respectively.

(b)

Substantially all nonperforming loans at September 30, 2022 and December 31, 2021, had an associated allowance for credit losses. The Company recognized interest income on nonperforming loans

million for both the three months ended September 30, 2022 and 2021, and $12 million

and $11 million for the nine months ended September 30, 2022 and 2021, respectively.

Summary of Loans by Portfolio Class and Company's Internal Credit Quality Rating

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:


	September 30, 2022										December 31, 2021
			Criticized										Criticized
(Dollars in Millions)	Pass		Special Mention		Classified (a)		Total Criticized		Total		Pass		Special Mention		Classified (a)		Total Criticized		Total
Commercial
Originated in 2022		$ 51,614		$ 166		$ 209		$ 375		$ 51,989		$ –		$ –		$ –		$ –		$ –
Originated in 2021		32,393		179		27		206		32,599		51,155		387		287		674		51,829
Originated in 2020		7,634		35		81		116		7,750		14,091		304		133		437		14,528
Originated in 2019		5,057		67		67		134		5,191		10,159		151		54		205		10,364
Originated in 2018		2,569		5		20		25		2,594		5,122		3		36		39		5,161
Originated prior to 2018		3,571		4		42		46		3,617		4,923		30		81		111		5,034
Revolving (b)		27,263		397		287		684		27,947		24,722		268		117		385		25,107
Total commercial		130,101		853		733		1,586		131,687		110,172		1,143		708		1,851		112,023

Commercial real estate
Originated in 2022		9,925		70		511		581		10,506		–		–		–		–		–
Originated in 2021		11,746		44		256		300		12,046		13,364		6		990		996		14,360
Originated in 2020		5,818		63		119		182		6,000		7,459		198		263		461		7,920
Originated in 2019		4,469		110		182		292		4,761		6,368		251		610		861		7,229
Originated in 2018		2,069		28		135		163		2,232		2,996		29		229		258		3,254
Originated prior to 2018		3,122		23		82		105		3,227		4,473		55		224		279		4,752
Revolving		1,553		–		4		4		1,557		1,494		1		43		44		1,538
Total commercial real estate		38,702		338		1,289		1,627		40,329		36,154		540		2,359		2,899		39,053

Residential mortgages (c)
Originated in 2022		17,964		–		–		–		17,964		–		–		–		–		–
Originated in 2021		29,224		–		2		2		29,226		29,882		–		3		3		29,885
Originated in 2020		14,230		–		5		5		14,235		15,948		1		8		9		15,957
Originated in 2019		5,649		–		18		18		5,667		6,938		–		36		36		6,974
Originated in 2018		2,300		–		18		18		2,318		2,889		–		30		30		2,919
Originated prior to 2018		16,580		–		257		257		16,837		20,415		–		342		342		20,757
Revolving		24		–		3		3		27		1		–		–		–		1
Total residential mortgages		85,971		–		303		303		86,274		76,073		1		419		420		76,493

Credit card (d)		24,358		–		180		180		24,538		22,335		–		165		165		22,500

Other retail
Originated in 2022		10,211		–		3		3		10,214		–		–		–		–		–
Originated in 2021		17,403		–		9		9		17,412		22,455		–		6		6		22,461
Originated in 2020		9,133		–		10		10		9,143		12,071		–		9		9		12,080
Originated in 2019		4,663		–		13		13		4,676		7,223		–		17		17		7,240
Originated in 2018		1,887		–		9		9		1,896		3,285		–		14		14		3,299
Originated prior to 2018		2,315		–		17		17		2,332		3,699		–		24		24		3,723
Revolving		13,610		–		97		97		13,707		12,532		–		112		112		12,644
Revolving converted to term		457		–		43		43		500		472		–		40		40		512
Total other retail		59,679		–		201		201		59,880		61,737		–		222		222		61,959
Total loans		$338,811		$1,191		$2,706		$3,897		$342,708		$306,471		$1,684		$3,873		$5,557		$312,028
Total outstanding commitments		$713,989		$1,947		$4,034		$5,981		$719,970		$662,363		$3,372		$5,684		$9,056		$671,419

Note:

Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended.

(a)	Classified rating on consumer loans primarily based on delinquency status.

(b)	Includes an immaterial amount of revolving converted to term loans.

(c)

At September 30, 2022, $1.9 billion of GNMA loans 90 days or more past due and $982 million of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $1.5 billion and $1.1 billion at December 31, 2021, respectively.

(d)	Predominately all credit card loans are considered revolving loans. Includes an immaterial amount of revolving converted to term loans.

Summary of Loans Modified as TDRs

The following table provides a summary of loans modified as TDRs for the periods presented by portfolio class:


	2022						2021
(Dollars in Millions)	Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance		Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance
Three Months Ended September 30
Commercial		552		$ 34		$ 35		506		$ 46		$ 47
Commercial real estate		24		23		23		14		12		13
Residential mortgages		283		84		85		171		54		54
Credit card		11,632		63		64		6,656		38		38
Other retail		479		14		13		382		9		9
Total loans, excluding loans purchased from GNMA mortgage pools		12,970		218		220		7,729		159		161
Loans purchased from GNMA mortgage pools		421		61		62		802		113		118
Total loans		13,391		$ 279		$282		8,531		$ 272		$ 279

Nine Months Ended September 30
Commercial		1,567		$ 122		$108		1,736		$ 133		$ 120
Commercial real estate		61		45		42		100		136		125
Residential mortgages		1,489		418		417		867		299		298
Credit card		29,667		161		163		17,492		102		103
Other retail		1,963		75		70		2,175		64		58
Total loans, excluding loans purchased from GNMA mortgage pools		34,747		821		800		22,370		734		704
Loans purchased from GNMA mortgage pools		1,164		163		167		1,839		267		276
Total loans		35,911		$ 984		$967		24,209		$1,001		$ 980

Summary of Loans Modified as TDRs in the Past Twelve Months that have Subsequently Defaulted

The following table provides a summary of TDR loans that defaulted (fully or partially

charged-off

or became 90 days or more past due) for the periods presented, that were modified as TDRs within 12 months previous to default:


	2022				2021
(Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Three Months Ended September 30
Commercial		186		$ 15		244		$ 5
Commercial real estate		5		6		4		1
Residential mortgages		67		8		20		2
Credit card		2,117		11		2,069		12
Other retail		73		1		124		2
Total loans, excluding loans purchased from GNMA mortgage pools		2,448		41		2,461		22
Loans purchased from GNMA mortgage pools		113		17		29		5
Total loans		2,561		$ 58		2,490		$ 27

Nine Months Ended September 30
Commercial		575		$ 21		856		$ 29
Commercial real estate		10		8		16		7
Residential mortgages		180		18		47		5
Credit card		5,478		29		5,638		32
Other retail		216		3		595		10
Total loans, excluding loans purchased from GNMA mortgage pools		6,459		79		7,152		83
Loans purchased from GNMA mortgage pools		282		42		102		15
Total loans		6,741		$121		7,254		$ 98