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Outstanding Loans and Leases and Allowance for Credit Losses (Tables)
6 Months Ended
Jun. 30, 2021
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 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 equity141 70 343 554 29,915 30,469 
Credit card and other consumer
Credit card266 177 533 976 74,623 75,599 
Direct/Indirect consumer (2)
125 45 17 187 96,716 96,903 
Other consumer    172 172 
Total consumer1,662 622 2,442 4,726 412,741 417,467 
Consumer loans accounted for under the fair value option (3)
     $654 654 
Total consumer loans and leases1,662 622 2,442 4,726 412,741 654 418,121 
Commercial
U.S. commercial224 564 349 1,137 289,983 291,120 
Non-U.S. commercial87 24 107 218 97,932 98,150 
Commercial real estate (4)
107 32 192 331 59,275 59,606 
Commercial lease financing87 27 53 167 15,601 15,768 
U.S. small business commercial (5)
56 29 71 156 29,711 29,867 
Total commercial561 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 leases561 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 equity154 78 345 577 33,734 34,311 
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 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 Cardn/an/a533 903 
Direct/indirect consumer50 71 15 33 
Total consumer3,044 2,725 1,235 1,698 
U.S. commercial1,060 1,243 172 228 
Non-U.S. commercial275 418 19 10 
Commercial real estate404 404  
Commercial lease financing81 87 24 25 
U.S. small business commercial43 75 69 115 
Total commercial1,863 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
20212020201920182017Prior
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 LoansRevolving 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 YearCredit Card
(Dollars in millions)Total Direct/
Indirect as of June 30,
 2021
Revolving Loans20212020201920182017PriorTotal 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 6802,031 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 74036,196 101 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
20212020201920182017PriorRevolving 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 criticized13,616 294 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 criticized3,433 285 395 644 397 331 367 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 criticized8,825 162 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 criticized733 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 criticized696 49 145 131 98 264 
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
20202019201820172016Prior
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 740178,209 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 (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 74036,064 120 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, 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 $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 BalanceCarrying
Value
Pre-Modification Interest Rate
Post-Modification Interest Rate (1)
Unpaid Principal BalanceCarrying
Value
Pre-Modification Interest Rate
Post-Modification Interest Rate (1)
(Dollars in millions)Three Months Ended June 30, 2021Six Months Ended June 30, 2021
Residential mortgage$522 $466 3.53 %3.51 %$744 $667 3.51 %3.49 %
Home equity62 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, 2020Six Months Ended June 30, 2020
Residential mortgage$120 $103 4.22 %4.19 %$219 $185 4.10 %4.01 %
Home equity22 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 30Six Months Ended June 30
(Dollars in millions)2021202020212020
Modifications under government programs $1 $— $3 $
Modifications under proprietary programs 479 20 665 59 
Loans discharged in Chapter 7 bankruptcy (1)
12 21 22 32 
Trial modifications21 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 30Six Months Ended June 30
(Dollars in millions)2021202020212020
Modifications under government programs$1 $$2 $
Modifications under proprietary programs33 45 19 
Loans discharged in Chapter 7 bankruptcy (1)
2 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 RatePost-Modification Interest RateUnpaid Principal Balance
Carrying
Value
(1)
Pre-Modification Interest RatePost-Modification Interest Rate
(Dollars in millions)Three Months Ended June 30, 2021Six Months Ended June 30, 2021
Credit card$62 $68 18.44 %4.24 %$137 $147 18.48 %4.53 %
Direct/Indirect consumer6 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, 2020Six Months Ended June 30, 2020
Credit card$57 $61 18.08 %5.15 %$144 $152 18.02 %5.24 %
Direct/Indirect consumer14 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)
2021202020212020
Internal programs$57 $43 $121 $109 
External programs
13 18 29 43 
Other
2 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
CommercialTotal
(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 off60 256 150 466 
Net charge-offs30 (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 1124  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 off61 217 35 313 
Net charge-offs34 (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 1149 — 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 off114 501 214 829 
Net charge-offs69 (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 1137  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 off108 454 67 629 
Net charge-offs46 (1,652)(662)(2,268)
Provision for loan and lease losses342 4,344 4,614 9,300 
Other— (6)(1)
Allowance for loan and lease losses, June 30
833 10,122 8,434 19,389 
Reserve for unfunded lending commitments, January 1119 — 1,004 1,123 
Provision for unfunded lending commitments22 — 556 578 
Other— — 
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