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Outstanding Loans and Leases and Allowance for Credit Losses (Tables)
12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
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 December 31, 2020 and 2019.
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 OptionTotal
Outstandings
(Dollars in millions)December 31, 2020
Consumer real estate      
Core portfolio
Residential mortgage
$1,157 $175 $786 $2,118 $213,155 $215,273 
Home equity126 61 269 456 29,872 30,328 
Non-core portfolio
Residential mortgage273 122 913 1,308 6,974 8,282 
Home equity28 17 76 121 3,862 3,983 
Credit card and other consumer
Credit card445 341 903 1,689 77,019 78,708 
Direct/Indirect consumer (2)
209 67 37 313 91,050 91,363 
Other consumer    124 124 
Total consumer2,238 783 2,984 6,005 422,056 428,061 
Consumer loans accounted for under the fair value option (3)
     $735 735 
Total consumer loans and leases2,238 783 2,984 6,005 422,056 735 428,796 
Commercial
U.S. commercial561 214 512 1,287 287,441 288,728 
Non-U.S. commercial61 44 11 116 90,344 90,460 
Commercial real estate (4)
128 113 226 467 59,897 60,364 
Commercial lease financing86 20 57 163 16,935 17,098 
U.S. small business commercial (5)
84 56 123 263 36,206 36,469 
Total commercial920 447 929 2,296 490,823 493,119 
Commercial loans accounted for under the fair value option (3)
     5,946 5,946 
Total commercial loans and leases920 447 929 2,296 490,823 5,946 499,065 
Total loans and leases (6)
$3,158 $1,230 $3,913 $8,301 $912,879 $6,681 $927,861 
Percentage of outstandings 0.34 %0.13 %0.42 %0.89 %98.39 %0.72 %100.00 %
(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $225 million and nonperforming loans of $126 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $103 million and nonperforming loans of $95 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $762 million. Consumer real estate loans current or less than 30 days past due includes $1.2 billion and direct/indirect consumer includes $66 million of nonperforming loans. For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles.
(2)Total outstandings primarily includes auto and specialty lending loans and leases of $46.4 billion, U.S. securities-based lending loans of $41.1 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 $298 million and home equity loans of $437 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.9 billion and non-U.S. commercial loans of $3.0 billion. For more information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option.
(4)Total outstandings includes U.S. commercial real estate loans of $57.2 billion and non-U.S. commercial real estate loans of $3.2 billion.
(5)Includes PPP loans.
(6)Total outstandings includes loans and leases pledged as collateral of $15.5 billion. The Corporation also pledged $153.1 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, 2019
Consumer real estate      
Core portfolio
Residential mortgage$1,378 $261 $565 $2,204 $223,566  $225,770 
Home equity135 70 198 403 34,823  35,226 
Non-core portfolio       
Residential mortgage458 209 1,263 1,930 8,469  10,399 
Home equity34 16 72 122 4,860  4,982 
Credit card and other consumer       
Credit card564 429 1,042 2,035 95,573  97,608 
Direct/Indirect consumer (2)
297 85 35 417 90,581  90,998 
Other consumer — — — — 192  192 
Total consumer2,866 1,070 3,175 7,111 458,064 465,175 
Consumer loans accounted for under the fair value option (3)
$594 594 
Total consumer loans and leases2,866 1,070 3,175 7,111 458,064 594 465,769 
Commercial       
U.S. commercial788 279 371 1,438 305,610  307,048 
Non-U.S. commercial35 23 66 104,900  104,966 
Commercial real estate (4)
144 19 119 282 62,407  62,689 
Commercial lease financing100 56 39 195 19,685  19,880 
U.S. small business commercial119 56 107 282 15,051  15,333 
Total commercial1,186 433 644 2,263 507,653  509,916 
Commercial loans accounted for under the fair value option (3)
7,741 7,741 
Total commercial loans and leases
1,186 433 644 2,263 507,653 7,741 517,657 
Total loans and leases (5)
$4,052 $1,503 $3,819 $9,374 $965,717 $8,335 $983,426 
Percentage of outstandings 0.41 %0.15 %0.39 %0.95 %98.20 %0.85 %100.00 %
(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $517 million and nonperforming loans of $139 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $206 million and nonperforming loans of $114 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $1.1 billion. Consumer real estate loans current or less than 30 days past due includes $856 million and direct/indirect consumer includes $45 million of nonperforming loans.
(2)Total outstandings primarily includes auto and specialty lending loans and leases of $50.4 billion, U.S. securities-based lending loans of $36.7 billion and non-U.S. consumer loans of $2.8 billion.
(3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $257 million and home equity loans of $337 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $4.7 billion and non-U.S. commercial loans of $3.1 billion. For more information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option.
(4)Total outstandings includes U.S. commercial real estate loans of $59.0 billion and non-U.S. commercial real estate loans of $3.7 billion.
(5)Total outstandings includes loans and leases pledged as collateral of $25.9 billion. The Corporation also pledged $168.2 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank.
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 December 31, 2020 and 2019. 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 information on the Corporation's interest accrual policies, delinquency status for loan modifications related to the pandemic and the criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles.
Credit Quality
Nonperforming Loans
and Leases
Accruing Past Due
90 Days or More (1)
December 31
(Dollars in millions)2020201920202019
Residential mortgage (2)
$2,005 $1,470 $762 $1,088 
With no related allowance (3)
1,378 n/a — 
Home equity (2)
649 536  — 
With no related allowance (3)
347 n/a — 
Credit Cardn/an/a903 1,042 
Direct/indirect consumer71 47 33 33 
Total consumer2,725 2,053 1,698 2,163 
U.S. commercial1,243 1,094 228 106 
Non-U.S. commercial418 43 10 
Commercial real estate404 280 6 19 
Commercial lease financing87 32 25 20 
U.S. small business commercial75 50 115 97 
Total commercial2,227 1,499 384 250 
Total nonperforming loans$4,952 $3,552 $2,082 $2,413 
Percentage of outstanding loans and leases
0.54 %0.36 %0.23 %0.25 %
(1)For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the pandemic, see Note 1 – Summary of Significant Accounting Principles.
(2)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At December 31, 2020 and 2019 residential mortgage includes $537 million and $740 million of loans on which interest had been curtailed by the FHA, and therefore were no longer accruing interest, although principal was still insured, and $225 million and $348 million of loans on which interest was still accruing.
(3)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
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 and year of origination for term loan balances at December 31, 2020, 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, 202020202019201820172016Prior
Total Residential Mortgage
Refreshed LTV
   
Less than or equal to 90 percent$207,389 $68,907 $43,771 $14,658 $21,589 $22,967 $35,497 
Greater than 90 percent but less than or equal to 100 percent
3,138 1,970 684 128 70 96 190 
Greater than 100 percent
1,210 702 174 47 39 37 211 
Fully-insured loans
11,818 3,826 2,014 370 342 1,970 3,296 
Total Residential Mortgage$223,555 $75,405 $46,643 $15,203 $22,040 $25,070 $39,194 
Total Residential Mortgage
Refreshed FICO score
Less than 620$2,717 $823 $177 $139 $170 $150 $1,258 
Greater than or equal to 620 and less than 680
5,462 1,804 666 468 385 368 1,771 
Greater than or equal to 680 and less than 740
25,349 8,533 4,679 1,972 2,427 2,307 5,431 
Greater than or equal to 740
178,209 60,419 39,107 12,254 18,716 20,275 27,438 
Fully-insured loans
11,818 3,826 2,014 370 342 1,970 3,296 
Total Residential Mortgage$223,555 $75,405 $46,643 $15,203 $22,040 $25,070 $39,194 
Home Equity - Credit Quality Indicators
Total
Home Equity Loans and Reverse Mortgages (1)
Revolving LoansRevolving Loans Converted to Term Loans
(Dollars in millions)December 31, 2020
Total Home Equity
Refreshed LTV
   
Less than or equal to 90 percent$33,447 $1,919 $22,639 $8,889 
Greater than 90 percent but less than or equal to 100 percent
351 126 94 131 
Greater than 100 percent
513 172 118 223 
Total Home Equity$34,311 $2,217 $22,851 $9,243 
Total Home Equity
Refreshed FICO score
Less than 620$1,082 $250 $244 $588 
Greater than or equal to 620 and less than 680
1,798 263 568 967 
Greater than or equal to 680 and less than 740
5,762 556 2,905 2,301 
Greater than or equal to 740
25,669 1,148 19,134 5,387 
Total Home Equity$34,311 $2,217 $22,851 $9,243 
(1)Includes reverse mortgages of $1.3 billion and home equity loans of $885 million which are no longer originated.
Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage
Direct/Indirect
Term Loans by Origination YearCredit Card
(Dollars in millions)Total Direct/Indirect as of December 31, 2020Revolving Loans20202019201820172016PriorTotal Credit Card as of December 31, 2020Revolving Loans
Revolving Loans Converted to Term Loans (3)
Refreshed FICO score  
Less than 620$959 $19 $111 $200 $175 $243 $148 $63 $4,018 $3,832 $186 
Greater than or equal to 620 and less than 680
2,143 20 653 559 329 301 176 105 9,419 9,201 218 
Greater than or equal to 680 and less than 740
7,431 80 2,848 2,015 1,033 739 400 316 27,585 27,392 193 
Greater than or equal to 74036,064 120 12,540 10,588 5,869 3,495 1,781 1,671 37,686 37,642 44 
Other internal credit
   metrics (1, 2)
44,766 44,098 74 115 84 67 52 276  — — 
Total credit card and other
consumer
$91,363 $44,337 $16,226 $13,477 $7,490 $4,845 $2,557 $2,431 $78,708 $78,067 $641 
(1)Other internal credit metrics may include delinquency status, geography or other factors.
(2)Direct/indirect consumer includes $44.1 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 December 31, 2020.
(3)Represents TDRs that were modified into term loans.
Commercial – Credit Quality Indicators By Vintage (1, 2)
Term Loans
Amortized Cost Basis by Origination Year
(Dollars in millions)Total as of December 31, 202020202019201820172016PriorRevolving Loans
U.S. Commercial
Risk ratings    
Pass rated$268,812 $33,456 $33,305 $17,363 $14,102 $7,420 $21,784 $141,382 
Reservable criticized19,916 2,524 2,542 2,689 854 698 1,402 9,207 
Total U.S. Commercial
$288,728 $35,980 $35,847 $20,052 $14,956 $8,118 $23,186 $150,589 
Non-U.S. Commercial
Risk ratings
Pass rated$85,914 $16,301 $11,396 $7,451 $5,037 $1,674 $2,194 $41,861 
Reservable criticized4,546 914 572 492 436 138 259 1,735 
Total Non-U.S. Commercial
$90,460 $17,215 $11,968 $7,943 $5,473 $1,812 $2,453 $43,596 
Commercial Real Estate
Risk ratings
Pass rated$50,260 $8,429 $14,126 $8,228 $4,599 $3,299 $6,542 $5,037 
Reservable criticized10,104 933 2,558 2,115 1,582 606 1,436 874 
Total Commercial Real Estate
$60,364 $9,362 $16,684 $10,343 $6,181 $3,905 $7,978 $5,911 
Commercial Lease Financing
Risk ratings
Pass rated$16,384 $3,083 $3,242 $2,956 $2,532 $1,703 $2,868 $— 
Reservable criticized714 117 117 132 81 88 179 — 
Total Commercial Lease Financing
$17,098 $3,200 $3,359 $3,088 $2,613 $1,791 $3,047 $— 
U.S. Small Business Commercial (3)
Risk ratings
Pass rated$28,786 $24,539 $1,121 $837 $735 $527 $855 $172 
Reservable criticized1,148 76 239 210 175 113 322 13 
Total U.S. Small Business Commercial
$29,934 $24,615 $1,360 $1,047 $910 $640 $1,177 $185 
 Total (1, 2)
$486,584 $90,372 $69,218 $42,473 $30,133 $16,266 $37,841 $200,281 
(1) Excludes $5.9 billion of loans accounted for under the fair value option at December 31, 2020.
(2)     Includes $58 million of loans that converted from revolving to term loans.
(3)     Excludes U.S. Small Business Card loans of $6.5 billion. Refreshed FICO scores for this portfolio are $265 million for less than 620; $582 million for greater than or equal to 620 and less than 680; $1.7 billion for greater than or equal to 680 and less than 740; and $3.9 billion greater than or equal to 740.
Troubled Debt Restructurings on Financing Receivables The table below presents the December 31, 2020, 2019 and 2018 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of consumer real estate loans that were modified in TDRs during 2020, 2019 and 2018. 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 2020, 2019 and 2018 (1)
Unpaid Principal BalanceCarrying
Value
Pre-Modification Interest Rate
Post-Modification Interest Rate (2)
(Dollars in millions)December 31, 2020
Residential mortgage$732 $646 3.66 %3.59 %
Home equity87 69 3.67 3.61 
Total $819 $715 3.66 3.59 
December 31, 2019
Residential mortgage$464 $377 4.19 %4.13 %
Home equity141 101 5.04 4.31 
Total $605 $478 4.39 4.17 
December 31, 2018
Residential mortgage$774 $641 4.33 %4.21 %
Home equity489 358 4.46 3.74 
Total $1,263 $999 4.38 4.03 
(1)For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.
(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.
The table below presents the December 31, 2020, 2019 and 2018 carrying value for consumer real estate loans that were modified in a TDR during 2020, 2019 and 2018, by type of modification.
Consumer Real Estate – Modification Programs (1)
TDRs Entered into During
(Dollars in millions)202020192018
Modifications under government programs $13 $35 $61 
Modifications under proprietary programs 570 174 523 
Loans discharged in Chapter 7 bankruptcy (2)
53 68 130 
Trial modifications79 201 285 
Total modifications$715 $478 $999 
(1)For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.
(2)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 2020, 2019 and 2018 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 (1)
(Dollars in millions)202020192018
Modifications under government programs$16 $26 $39 
Modifications under proprietary programs51 88 158 
Loans discharged in Chapter 7 bankruptcy (2)
19 30 64 
Trial modifications (3)
54 57 107 
Total modifications$140 $201 $368 
(1)For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.
(2)Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
(3)Includes trial modification offers to which the customer did not respond.
The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the December 31, 2020, 2019 and 2018 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during 2020, 2019 and 2018.
Credit Card and Other Consumer – TDRs Entered into During 2020, 2019 and 2018 (1)
 Unpaid Principal Balance
Carrying
Value
(2)
Pre-Modification Interest RatePost-Modification Interest Rate
(Dollars in millions)December 31, 2020
Credit card$269 $277 18.16 %5.63 %
Direct/Indirect consumer52 37 5.83 5.83 
Total $321 $314 16.70 5.65 
December 31, 2019
Credit card$340 $355 19.18 %5.35 %
Direct/Indirect consumer40 21 5.23 5.21 
Total $380 $376 18.42 5.34 
December 31, 2018
Credit card$278 $292 19.49 %5.24 %
Direct/Indirect consumer42 23 5.10 4.95 
Total $320 $315 18.45 5.22 
(1)For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.
(2)Includes accrued interest and fees.
The table below presents the December 31, 2020, 2019 and 2018 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during 2020, 2019 and 2018, by program type.
Credit Card and Other Consumer – TDRs by Program Type at December 31 (1)
(Dollars in millions)
202020192018
Internal programs$225 $247 $199 
External programs
73 108 93 
Other
16 21 23 
Total$314 $376 $315 
(1)Includes accrued interest and fees. For more information on the Corporation's loan modification programs offered in response to the pandemic, most of which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.
Changes in the Allowance for Credit Losses
The changes in the allowance for credit losses, including net charge-offs and provision for loan and lease losses, are detailed in the table below.
Consumer
Real Estate
Credit Card and
Other Consumer
CommercialTotal
(Dollars in millions)2020
Allowance for loan and lease losses, January 1$440 $7,430 $4,488 $12,358 
Loans and leases charged off(98)(3,646)(1,675)(5,419)
Recoveries of loans and leases previously charged off201 891 206 1,298 
Net charge-offs103 (2,755)(1,469)(4,121)
Provision for loan and lease losses307 4,538 5,720 10,565 
Other (1)
8  (8) 
Allowance for loan and lease losses, December 31
858 9,213 8,731 18,802 
Reserve for unfunded lending commitments, January 1119  1,004 1,123 
Provision for unfunded lending commitments18  737 755 
Reserve for unfunded lending commitments, December 31
137  1,741 1,878 
Allowance for credit losses, December 31
$995 $9,213 $10,472 $20,680 
2019
Allowance for loan and lease losses, January 1$928 $3,874 $4,799 $9,601 
Loans and leases charged off(522)(4,302)(822)(5,646)
Recoveries of loans and leases previously charged off927 911 160 1,998 
Net charge-offs405 (3,391)(662)(3,648)
Provision for loan and lease losses(680)3,512 742 3,574 
Other (1)
(107)(5)(111)
Allowance for loan and lease losses, December 31
546 3,996 4,874 9,416 
Reserve for unfunded lending commitments, January 1— — 797 797 
Provision for unfunded lending commitments— — 16 16 
Reserve for unfunded lending commitments, December 31
— — 813 813 
Allowance for credit losses, December 31
$546 $3,996 $5,687 $10,229 
2018
Allowance for loan and lease losses, January 1$1,720 $3,663 $5,010 $10,393 
Loans and leases charged off(690)(4,037)(675)(5,402)
Recoveries of loans and leases previously charged off664 823 152 1,639 
Net charge-offs (26)(3,214)(523)(3,763)
Provision for loan and lease losses (492)3,441 313 3,262 
Other (1)
(274)(16)(1)(291)
Allowance for loan and lease losses, December 31928 3,874 4,799 9,601 
Reserve for unfunded lending commitments, January 1— — 777 777 
Provision for unfunded lending commitments— — 20 20 
Reserve for unfunded lending commitments, December 31— — 797 797 
Allowance for credit losses, December 31$928 $3,874 $5,596 $10,398 
(1)Primarily represents write-offs of purchased credit-impaired loans in 2019, and the net impact of portfolio sales, transfers to held-for-sale and transfers to foreclosed properties.