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

6 Months Ended

Jun. 30, 2021

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 June 30, 2021 and December 31, 2020.



	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)	June 30, 2021
Consumer real estate






Residential mortgage	$	1,130		$	330		$	1,549		$	3,009		$	211,315					$	214,324
Home equity	141			70			343			554			29,915						30,469
Credit card and other consumer
Credit card	266			177			533			976			74,623						75,599

Direct/Indirect consumer (2)	125			45			17			187			96,716						96,903
Other consumer	—			—			—			—			172						172
Total consumer	1,662			622			2,442			4,726			412,741						417,467
Consumer loans accounted for under the fair value option (3)																$	654		654
Total consumer loans and leases	1,662			622			2,442			4,726			412,741			654			418,121
Commercial

U.S. commercial	224			564			349			1,137			289,983						291,120
Non-U.S. commercial	87			24			107			218			97,932						98,150
Commercial real estate (4)	107			32			192			331			59,275						59,606
Commercial lease financing	87			27			53			167			15,601						15,768
U.S. small business commercial (5)	56			29			71			156			29,711						29,867
Total commercial	561			676			772			2,009			492,502						494,511
Commercial loans accounted for under the fair value option (3)																6,296			6,296
Total commercial loans and leases	561			676			772			2,009			492,502			6,296			500,807
Total loans and leases (6)	$	2,223		$	1,298		$	3,214		$	6,735		$	905,243		$	6,950		$	918,928
Percentage of outstandings	0.24		%	0.14		%	0.35		%	0.73		%	98.51		%	0.76		%	100.00		%

(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $213 million and nonperforming loans of $157 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $97 million and nonperforming loans of $129 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $687 million. Consumer real estate loans current or less than 30 days past due includes $1.5 billion and direct/indirect consumer includes $48 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 to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

(2)Total outstandings primarily includes auto and specialty lending loans and leases of $46.4 billion, U.S. securities-based lending loans of $46.4 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 $257 million and home equity loans of $397 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $4.4 billion and non-U.S. commercial loans of $1.9 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 $55.8 billion and non-U.S. commercial real estate loans of $3.8 billion.

(5)Includes Paycheck Protection Program loans.

(6)Total outstandings includes loans and leases pledged as collateral of $12.8 billion. The Corporation also pledged $153.0 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, 2020
Consumer real estate






Residential mortgage	$	1,430		$	297		$	1,699		$	3,426		$	220,129					$	223,555
Home equity	154			78			345			577			33,734						34,311
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 to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

(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 14 – Fair Value Measurements and Note 15 – 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 Paycheck Protection Program 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.

Schedule of Financing Receivables, Non Accrual Status

The following table presents the Corporation’s nonperforming loans and leases including nonperforming troubled debt restructurings (TDRs), and loans accruing past due 90 days or more at June 30, 2021 and December 31, 2020. 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 2020 Annual Report on Form 10-K.



Credit Quality


	Nonperforming Loans and Leases						Accruing Past Due 90 Days or More (1)

(Dollars in millions)	June 30 2021			December 31 2020			June 30 2021			December 31 2020
Residential mortgage (2)	$	2,343		$	2,005		$	687		$	762
With no related allowance (3)	2,019			1,378			—			—
Home equity (2)	651			649			—			—
With no related allowance (3)	423			347			—			—
Credit Card	n/a			n/a			533			903
Direct/indirect consumer	50			71			15			33

Total consumer	3,044			2,725			1,235			1,698
U.S. commercial	1,060			1,243			172			228
Non-U.S. commercial	275			418			19			10
Commercial real estate	404			404			—			6
Commercial lease financing	81			87			24			25
U.S. small business commercial	43			75			69			115
Total commercial	1,863			2,227			284			384
Total nonperforming loans	$	4,907		$	4,952		$	1,519		$	2,082
Percentage of outstanding loans and leases	0.54		%	0.54		%	0.17		%	0.23		%

(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 to the Consolidated Financial Statements of the Corporation’s 2020 Annual Report on Form 10-K.

(2)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At June 30, 2021 and December 31, 2020 residential mortgage includes $501 million and $537 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 $186 million and $225 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 June 30, 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 June 30, 2021		2021		2020		2019		2018		2017		Prior
Total Residential Mortgage
Refreshed LTV
Less than or equal to 90 percent	$	198,103	$	44,858	$	55,361	$	30,311	$	9,583	$	14,423	$	43,567
Greater than 90 percent but less than or equal to 100 percent	2,790		1,021		1,238		275		46		33		177
Greater than 100 percent	912		385		260		84		22		17		144
Fully-insured loans	12,519		2,134		3,913		1,512		279		280		4,401
Total Residential Mortgage	$	214,324	$	48,398	$	60,772	$	32,182	$	9,930	$	14,753	$	48,289

Total Residential Mortgage
Refreshed FICO score
Less than 620	$	2,539	$	438	$	507	$	152	$	121	$	137	$	1,184
Greater than or equal to 620 and less than 680	5,002		791		1,277		565		338		333		1,698
Greater than or equal to 680 and less than 740	23,440		4,246		6,688		3,267		1,398		1,763		6,078
Greater than or equal to 740	170,824		40,789		48,387		26,686		7,794		12,240		34,928
Fully-insured loans	12,519		2,134		3,913		1,512		279		280		4,401
Total Residential Mortgage	$	214,324	$	48,398	$	60,772	$	32,182	$	9,930	$	14,753	$	48,289



Home Equity - Credit Quality Indicators

	Total		Home Equity Loans and Reverse Mortgages (1)		Revolving Loans		Revolving Loans Converted to Term Loans
(Dollars in millions)	June 30, 2021
Total Home Equity
Refreshed LTV
Less than or equal to 90 percent	$	29,884	$	1,857	$	20,266	$	7,761
Greater than 90 percent but less than or equal to 100 percent	236		98		62		76
Greater than 100 percent	349		125		86		138
Total Home Equity	$	30,469	$	2,080	$	20,414	$	7,975

Total Home Equity
Refreshed FICO score
Less than 620	$	974	$	246	$	217	$	511
Greater than or equal to 620 and less than 680	1,574		243		509		822
Greater than or equal to 680 and less than 740	5,027		517		2,559		1,951
Greater than or equal to 740	22,894		1,074		17,129		4,691
Total Home Equity	$	30,469	$	2,080	$	20,414	$	7,975

(1)Includes reverse mortgages of $1.4 billion and home equity loans of $717 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 June 30, 2021		Revolving Loans		2021		2020		2019		2018		2017		Prior		Total Credit Card as of June 30, 2021		Revolving Loans		Revolving Loans Converted to Term Loans (1)
Refreshed FICO score
Less than 620	$	704	$	15	$	54	$	107	$	152	$	115	$	149	$	112	$	2,859	$	2,692	$	167
Greater than or equal to 620 and less than 680	2,031		16		528		502		402		212		201		170		8,293		8,087		206
Greater than or equal to 680 and less than 740	7,646		67		2,315		2,145		1,484		693		483		459		26,228		26,024		204
Greater than or equal to 740	36,196		101		8,352		10,544		8,439		4,046		2,384		2,330		38,219		38,170		49
Other internal credit metrics (2,3)	50,326		49,307		519		79		96		83		65		177		—		—		—
Total credit card and other consumer	$	96,903	$	49,506	$	11,768	$	13,377	$	10,573	$	5,149	$	3,282	$	3,248	$	75,599	$	74,973	$	626

(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 $49.3 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 June 30, 2021.



Commercial – Credit Quality Indicators By Vintage (1, 2)
			Term Loans
			Amortized Cost Basis by Origination Year

(Dollars in millions)	Total as of June 30, 2021		2021		2020		2019		2018		2017		Prior		Revolving Loans
U.S. Commercial
Risk ratings
Pass rated	$	277,504	$	25,307	$	25,782	$	28,019	$	13,523	$	12,219	$	27,464	$	145,190
Reservable criticized	13,616		294		1,342		1,696		2,192		661		1,485		5,946
Total U.S. Commercial	$	291,120	$	25,601	$	27,124	$	29,715	$	15,715	$	12,880	$	28,949	$	151,136

Non-U.S. Commercial
Risk ratings
Pass rated	$	94,717	$	11,442	$	11,854	$	8,529	$	5,739	$	3,445	$	3,071	$	50,637
Reservable criticized	3,433		285		395		644		397		331		367		1,014
Total Non-U.S. Commercial	$	98,150	$	11,727	$	12,249	$	9,173	$	6,136	$	3,776	$	3,438	$	51,651

Commercial Real Estate
Risk ratings
Pass rated	$	50,781	$	4,669	$	7,940	$	13,339	$	7,356	$	4,183	$	8,528	$	4,766
Reservable criticized	8,825		162		1,025		2,403		2,030		1,179		1,481		545
Total Commercial Real Estate	$	59,606	$	4,831	$	8,965	$	15,742	$	9,386	$	5,362	$	10,009	$	5,311

Commercial Lease Financing
Risk ratings
Pass rated	$	15,035	$	1,090	$	2,793	$	2,896	$	2,396	$	2,194	$	3,666	$	—
Reservable criticized	733		122		71		155		106		72		207		—
Total Commercial Lease Financing	$	15,768	$	1,212	$	2,864	$	3,051	$	2,502	$	2,266	$	3,873	$	—

U.S. Small Business Commercial (3)
Risk ratings
Pass rated	$	22,235	$	9,756	$	8,245	$	1,124	$	816	$	702	$	1,438	$	154
Reservable criticized	696		4		49		145		131		98		264		5
Total U.S. Small Business Commercial	$	22,931	$	9,760	$	8,294	$	1,269	$	947	$	800	$	1,702	$	159
Total	$	487,575	$	53,131	$	59,496	$	58,950	$	34,686	$	25,084	$	47,971	$	208,257

(1) Excludes $6.3 billion of loans accounted for under the fair value option at June 30, 2021.

(2) Includes $40 million of loans that converted from revolving to term loans.

(3) Excludes U.S. Small Business Card loans of $6.9 billion. Refreshed FICO scores for this portfolio are $193 million for less than 620; $555 million for greater than or equal to 620 and less than 680; $1.8 billion for greater than or equal to 680 and less than 740; and $4.4 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, 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 (1)
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 (2, 3)	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)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 $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.



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	$	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 June 30, 2021 and 2020 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 and six months ended June 30, 2021 and 2020. 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 and Six Months Ended June 30, 2021 and 2020

	Unpaid Principal Balance		Carrying Value		Pre-Modification Interest Rate		Post-Modification Interest Rate (1)		Unpaid Principal Balance		Carrying Value		Pre-Modification Interest Rate		Post-Modification Interest Rate (1)
(Dollars in millions)	Three Months Ended June 30, 2021								Six Months Ended June 30, 2021

Residential mortgage	$	522	$	466	3.53	%	3.51	%	$	744	$	667	3.51	%	3.49	%
Home equity	62		47		3.58		3.61		83		63		3.55		3.58
Total	$	584	$	513	3.53		3.52		$	827	$	730	3.52		3.50

	Three Months Ended June 30, 2020								Six Months Ended June 30, 2020

Residential mortgage	$	120	$	103	4.22	%	4.19	%	$	219	$	185	4.10	%	4.01	%
Home equity	22		18		3.68		3.65		45		38		3.99		3.92
Total	$	142	$	121	4.14		4.11		$	264	$	223	4.08		3.99

(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 June 30, 2021 and 2020 carrying value for consumer real estate loans that were modified in a TDR during the three and six months ended June 30, 2021 and 2020, by type of modification.



Consumer Real Estate – Modification Programs

	TDRs Entered into During the
	Three Months Ended June 30				Six Months Ended June 30
(Dollars in millions)	2021		2020		2021		2020
Modifications under government programs	$	1	$	—	$	3	$	3




Modifications under proprietary programs	479		20		665		59





Loans discharged in Chapter 7 bankruptcy (1)	12		21		22		32
Trial modifications	21		80		40		129
Total modifications	$	513	$	121	$	730	$	223

(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 and six months ended June 30, 2021 and 2020 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 June 30				Six Months Ended June 30
(Dollars in millions)	2021		2020		2021		2020
Modifications under government programs	$	1	$	2	$	2	$	8
Modifications under proprietary programs	33		5		45		19
Loans discharged in Chapter 7 bankruptcy (1)	2		4		5		11
Trial modifications (2)	6		12		12		30
Total modifications	$	42	$	23	$	64	$	68

(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.

The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the June 30, 2021 and 2020 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during the three and six months ended June 30, 2021 and 2020.



Credit Card and Other Consumer – TDRs Entered into During the Three and Six Months Ended June 30, 2021 and 2020

	Unpaid Principal Balance		Carrying Value (1)		Pre-Modification Interest Rate		Post-Modification Interest Rate		Unpaid Principal Balance		Carrying Value (1)		Pre-Modification Interest Rate		Post-Modification Interest Rate
(Dollars in millions)	Three Months Ended June 30, 2021								Six Months Ended June 30, 2021

Credit card	$	62	$	68	18.44	%	4.24	%	$	137	$	147	18.48	%	4.53	%

Direct/Indirect consumer	6		4		5.64		5.64		11		7		5.62		5.62

Total	$	68	$	72	17.75		4.31		$	148	$	154	17.87		4.58

	Three Months Ended June 30, 2020								Six Months Ended June 30, 2020
Credit card	$	57	$	61	18.08	%	5.15	%	$	144	$	152	18.02	%	5.24	%

Direct/Indirect consumer	14		8		5.26		5.26		23		12		5.31		5.31

Total	$	71	$	69	16.61		5.16		$	167	$	164	17.07		5.25

(1)Includes accrued interest and fees.

The table below presents the June 30, 2021 and 2020 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during the three and six months ended June 30, 2021 and 2020, by program type.



Credit Card and Other Consumer – TDRs by Program Type




	TDRs Entered into During the Three Months Ended June 30				TDRs Entered into During the Six Months Ended June 30
(Dollars in millions)	2021		2020		2021		2020
Internal programs	$	57	$	43	$	121	$	109
External programs	13		18		29		43
Other	2		8		4		12
Total	$	72	$	69	$	154	$	164

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 following table.



	Consumer Real Estate		Credit Card and Other Consumer		Commercial		Total
(Dollars in millions)	Three Months Ended June 30, 2021
Allowance for loan and lease losses, April 1	$	689	$	7,946	$	7,533	$	16,168
Loans and leases charged off	(30)		(799)		(232)		(1,061)
Recoveries of loans and leases previously charged off	60		256		150		466
Net charge-offs	30		(543)		(82)		(595)

Provision for loan and lease losses	(122)		(568)		(790)		(1,480)
Other	—		—		2		2
Allowance for loan and lease losses, June 30	597		6,835		6,663		14,095
Reserve for unfunded lending commitments, April 1	124		—		1,705		1,829
Provision for unfunded lending commitments	(17)		—		(124)		(141)
Other	—		—		(1)		(1)
Reserve for unfunded lending commitments, June 30	107		—		1,580		1,687
Allowance for credit losses, June 30	$	704	$	6,835	$	8,243	$	15,782

	Three Months Ended June 30, 2020
Allowance for loan and lease losses, April 1	$	808	$	8,258	$	6,700	$	15,766
Loans and leases charged off	(27)		(985)		(447)		(1,459)
Recoveries of loans and leases previously charged off	61		217		35		313
Net charge-offs	34		(768)		(412)		(1,146)

Provision for loan and lease losses	(9)		2,632		2,152		4,775
Other	—		—		(6)		(6)
Allowance for loan and lease losses, June 30	833		10,122		8,434		19,389


Reserve for unfunded lending commitments, April 1	149		—		1,211		1,360
Provision for unfunded lending commitments	(8)		—		350		342

Reserve for unfunded lending commitments, June 30	141		—		1,561		1,702
Allowance for credit losses, June 30	$	974	$	10,122	$	9,995	$	21,091

(Dollars in millions)	Six Months Ended June 30, 2021
Allowance for loan and lease losses, January 1	$	858	$	9,213	$	8,731	$	18,802
Loans and leases charged off	(45)		(1,776)		(426)		(2,247)
Recoveries of loans and leases previously charged off	114		501		214		829
Net charge-offs	69		(1,275)		(212)		(1,418)
Provision for loan and lease losses	(329)		(1,104)		(1,858)		(3,291)
Other	(1)		1		2		2
Allowance for loan and lease losses, June 30	597		6,835		6,663		14,095
Reserve for unfunded lending commitments, January 1	137		—		1,741		1,878
Provision for unfunded lending commitments	(30)		—		(160)		(190)
Other	—		—		(1)		(1)
Reserve for unfunded lending commitments, June 30	107		—		1,580		1,687
Allowance for credit losses, June 30	$	704	$	6,835	$	8,243	$	15,782

	Six Months Ended June 30, 2020
Allowance for loan and lease losses, January 1	$	440	$	7,430	$	4,488	$	12,358
Loans and leases charged off	(62)		(2,106)		(729)		(2,897)
Recoveries of loans and leases previously charged off	108		454		67		629
Net charge-offs	46		(1,652)		(662)		(2,268)
Provision for loan and lease losses	342		4,344		4,614		9,300
Other	5		—		(6)		(1)
Allowance for loan and lease losses, June 30	833		10,122		8,434		19,389
Reserve for unfunded lending commitments, January 1	119		—		1,004		1,123
Provision for unfunded lending commitments	22		—		556		578
Other	—		—		1		1
Reserve for unfunded lending commitments, June 30	141		—		1,561		1,702
Allowance for credit losses, June 30	$	974	$	10,122	$	9,995	$	21,091