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Outstanding Loans and Leases and Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2020

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 Option			Total 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 equity	126			61			269			456			29,872						30,328
Non-core portfolio
Residential mortgage	273			122			913			1,308			6,974						8,282
Home equity	28			17			76			121			3,862						3,983
Credit card and other consumer
Credit card	445			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 consumer	2,238			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 leases	2,238			783			2,984			6,005			422,056			735			428,796
Commercial

U.S. commercial	561			214			512			1,287			287,441						288,728
Non-U.S. commercial	61			44			11			116			90,344						90,460
Commercial real estate (4)	128			113			226			467			59,897						60,364
Commercial lease financing	86			20			57			163			16,935						17,098
U.S. small business commercial (5)	84			56			123			263			36,206						36,469
Total commercial	920			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 leases	920			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 equity	135			70			198			403			34,823						35,226
Non-core portfolio
Residential mortgage	458			209			1,263			1,930			8,469						10,399
Home equity	34			16			72			122			4,860						4,982
Credit card and other consumer
Credit card	564			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 consumer	2,866			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 leases	2,866			1,070			3,175			7,111			458,064			594			465,769
Commercial

U.S. commercial	788			279			371			1,438			305,610						307,048
Non-U.S. commercial	35			23			8			66			104,900						104,966
Commercial real estate (4)	144			19			119			282			62,407						62,689
Commercial lease financing	100			56			39			195			19,685						19,880
U.S. small business commercial	119			56			107			282			15,051						15,333
Total commercial	1,186			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)	2020			2019			2020			2019
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 Card	n/a			n/a			903			1,042
Direct/indirect consumer	71			47			33			33

Total consumer	2,725			2,053			1,698			2,163
U.S. commercial	1,243			1,094			228			106
Non-U.S. commercial	418			43			10			8
Commercial real estate	404			280			6			19
Commercial lease financing	87			32			25			20
U.S. small business commercial	75			50			115			97
Total commercial	2,227			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, 2020		2020		2019		2018		2017		2016		Prior
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 Loans		Revolving 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 Year												Credit Card
(Dollars in millions)	Total Direct/Indirect as of December 31, 2020		Revolving Loans		2020		2019		2018		2017		2016		Prior		Total Credit Card as of December 31, 2020		Revolving 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 740	36,064		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, 2020		2020		2019		2018		2017		2016		Prior		Revolving 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 criticized	19,916		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 criticized	4,546		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 criticized	10,104		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 criticized	714		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 criticized	1,148		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 Balance		Carrying 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 equity		87		69		3.67		3.61
Total		$	819	$	715	3.66		3.59

	December 31, 2019
Residential mortgage		$	464	$	377	4.19	%	4.13	%
Home equity		141		101		5.04		4.31
Total		$	605	$	478	4.39		4.17

	December 31, 2018
Residential mortgage		$	774	$	641	4.33	%	4.21	%
Home equity		489		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)	2020		2019		2018
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 modifications	79		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)	2020		2019		2018
Modifications under government programs	$	16	$	26	$	39
Modifications under proprietary programs	51		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 Rate		Post-Modification Interest Rate

(Dollars in millions)	December 31, 2020
Credit card		$	269	$	277	18.16	%	5.63	%

Direct/Indirect consumer		52		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 consumer		40		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 consumer		42		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)	2020		2019		2018
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		Commercial		Total































(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 off	201		891		206		1,298
Net charge-offs	103		(2,755)		(1,469)		(4,121)
Provision for loan and lease losses	307		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 1	119		—		1,004		1,123
Provision for unfunded lending commitments	18		—		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 off	927		911		160		1,998
Net charge-offs	405		(3,391)		(662)		(3,648)
Provision for loan and lease losses	(680)		3,512		742		3,574
Other (1)	(107)		1		(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 off	664		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 31	928		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.