XML 44 R29.htm IDEA: XBRL DOCUMENT v3.21.2
Outstanding Loans and Leases and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 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 September 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)September 30, 2021
Consumer real estate      
Residential mortgage$1,010 $276 $1,504 $2,790 $214,150 $216,940 
Home equity132 69 366 567 28,433 29,000 
Credit card and other consumer
Credit card286 198 450 934 75,935 76,869 
Direct/Indirect consumer (2)
119 31 16 166 99,679 99,845 
Other consumer— — — — 202 202 
Total consumer1,547 574 2,336 4,457 418,399 422,856 
Consumer loans accounted for under the fair value option (3)
     $616 616 
Total consumer loans and leases1,547 574 2,336 4,457 418,399 616 423,472 
Commercial
U.S. commercial640 234 238 1,112 294,815 295,927 
Non-U.S. commercial77 48 130 255 102,595 102,850 
Commercial real estate (4)
138 — 208 346 60,377 60,723 
Commercial lease financing32 33 15 80 14,964 15,044 
U.S. small business commercial (5)
70 43 66 179 22,591 22,770 
Total commercial957 358 657 1,972 495,342 497,314 
Commercial loans accounted for under the fair value option (3)
     6,950 6,950 
Total commercial loans and leases957 358 657 1,972 495,342 6,950 504,264 
Total loans and leases (6)
$2,504 $932 $2,993 $6,429 $913,741 $7,566 $927,736 
Percentage of outstandings 0.27 %0.10 %0.32 %0.69 %98.49 %0.82 %100.00 %
(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $185 million and nonperforming loans of $116 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $97 million and nonperforming loans of $102 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $648 million. Consumer real estate loans current or less than 30 days past due includes $1.5 billion and direct/indirect consumer includes $29 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 $47.2 billion, U.S. securities-based lending loans of $48.7 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 $241 million and home equity loans of $375 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $4.5 billion and non-U.S. commercial loans of $2.4 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 $56.6 billion and non-U.S. commercial real estate loans of $4.1 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 $150.2 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 September 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)September 30
2021		December 31
2020		September 30
2021		December 31
2020
Residential mortgage (2)
$2,296 $2,005 $648 $762 
With no related allowance (3)
1,984 1,378 — — 
Home equity (2)
676 649 — — 
With no related allowance (3)
419 347 — — 
Credit Cardn/an/a450 903 
Direct/indirect consumer45 71 8 33 
Total consumer3,017 2,725 1,106 1,698 
U.S. commercial909 1,243 84 228 
Non-U.S. commercial272 418 60 10 
Commercial real estate414 404 5 6 
Commercial lease financing70 87 11 25 
U.S. small business commercial32 75 64 115 
Total commercial1,697 2,227 224 384 
Total nonperforming loans$4,714 $4,952 $1,330 $2,082 
Percentage of outstanding loans and leases
0.51 %0.54 %0.14 %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 September 30, 2021 and December 31, 2020 residential mortgage includes $466 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 $182 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 September 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
September 30,
 2021		20212020201920182017Prior
Total Residential Mortgage
Refreshed LTV
   
Less than or equal to 90 percent$201,127 $66,702 $48,549 $26,414 $8,448 $12,487 $38,527 
Greater than 90 percent but less than or equal to 100 percent
2,388 1,327 704 169 31 24 133 
Greater than 100 percent
801 451 155 57 16 14 108 
Fully-insured loans
12,624 2,945 3,698 1,370 253 259 4,099 
Total Residential Mortgage$216,940 $71,425 $53,106 $28,010 $8,748 $12,784 $42,867 
Total Residential Mortgage
Refreshed FICO score
Less than 620$2,499 $517 $480 $151 $123 $124 $1,104 
Greater than or equal to 620 and less than 680
4,932 1,057 1,162 525 318 310 1,560 
Greater than or equal to 680 and less than 740
23,689 6,536 5,973 2,935 1,225 1,563 5,457 
Greater than or equal to 740
173,196 60,370 41,793 23,029 6,829 10,528 30,647 
Fully-insured loans
12,624 2,945 3,698 1,370 253 259 4,099 
Total Residential Mortgage$216,940 $71,425 $53,106 $28,010 $8,748 $12,784 $42,867 
Home Equity - Credit Quality Indicators
Total
Home Equity Loans and Reverse Mortgages (1)
Revolving LoansRevolving Loans Converted to Term Loans
(Dollars in millions)September 30, 2021
Total Home Equity
Refreshed LTV
   
Less than or equal to 90 percent$28,529 $1,789 $19,526 $7,214 
Greater than 90 percent but less than or equal to 100 percent
192 83 47 62 
Greater than 100 percent
279 105 70 104 
Total Home Equity$29,000 $1,977 $19,643 $7,380 
Total Home Equity
Refreshed FICO score
Less than 620$930 $240 $214 $476 
Greater than or equal to 620 and less than 680
1,483 230 497 756 
Greater than or equal to 680 and less than 740
4,807 487 2,509 1,811 
Greater than or equal to 740
21,780 1,020 16,423 4,337 
Total Home Equity$29,000 $1,977 $19,643 $7,380 
(1)Includes reverse mortgages of $1.3 billion and home equity loans of $646 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 September 30,
 2021		Revolving Loans20212020201920182017PriorTotal Credit Card as of September 30,
 2021		Revolving Loans
Revolving Loans Converted to Term Loans (1)
Refreshed FICO score  
Less than 620$677 $14 $117 $110 $139 $95 $122 $80 $2,846 $2,686 $160 
Greater than or equal to 620 and less than 6802,194 15 890 464 355 173 165 132 8,665 8,460 205 
Greater than or equal to 680 and less than 740
8,083 63 3,544 1,869 1,290 565 390 362 26,939 26,740 199 
Greater than or equal to 74036,456 97 12,248 9,572 7,425 3,284 1,940 1,890 38,419 38,370 49 
Other internal credit
   metrics (2,3)
52,435 51,699 283 67 91 84 61 150 — — — 
Total credit card and other
   consumer		$99,845 $51,888 $17,082 $12,082 $9,300 $4,201 $2,678 $2,614 $76,869 $76,256 $613 
(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 $51.7 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 September 30, 2021.
Commercial – Credit Quality Indicators By Vintage (1, 2)
Term Loans
Amortized Cost Basis by Origination Year
(Dollars in millions)Total as of
September 30,
 2021		20212020201920182017PriorRevolving Loans
U.S. Commercial
Risk ratings    
Pass rated$284,704 $39,184 $24,933 $25,500 $11,900 $11,207 $23,764 $148,216 
Reservable criticized11,223 461 1,082 1,491 1,730 583 1,191 4,685 
Total U.S. Commercial
$295,927 $39,645 $26,015 $26,991 $13,630 $11,790 $24,955 $152,901 
Non-U.S. Commercial
Risk ratings
Pass rated$100,057 $17,768 $10,213 $7,795 $4,775 $3,633 $3,000 $52,873 
Reservable criticized2,793 188 341 616 378 200 285 785 
Total Non-U.S. Commercial
$102,850 $17,956 $10,554 $8,411 $5,153 $3,833 $3,285 $53,658 
Commercial Real Estate
Risk ratings
Pass rated$52,861 $8,993 $7,653 $12,445 $7,021 $3,742 $7,669 $5,338 
Reservable criticized7,862 209 993 1,972 1,856 996 1,339 497 
Total Commercial Real Estate
$60,723 $9,202 $8,646 $14,417 $8,877 $4,738 $9,008 $5,835 
Commercial Lease Financing
Risk ratings
Pass rated$14,640 $1,515 $2,641 $2,921 $2,203 $2,020 $3,340 $— 
Reservable criticized404 27 11 96 71 52 147 — 
Total Commercial Lease Financing
$15,044 $1,542 $2,652 $3,017 $2,274 $2,072 $3,487 $— 
U.S. Small Business Commercial (3)
Risk ratings
Pass rated$15,149 $6,414 $4,524 $1,101 $800 $665 $1,504 $141 
Reservable criticized546 7 32 111 99 78 216 3 
Total U.S. Small Business Commercial
$15,695 $6,421 $4,556 $1,212 $899 $743 $1,720 $144 
 Total$490,239 $74,766 $52,423 $54,048 $30,833 $23,176 $42,455 $212,538 
(1) Excludes $7.0 billion of loans accounted for under the fair value option at September 30, 2021.
(2)     Includes $18 million of loans that converted from revolving to term loans.
(3)     Excludes U.S. Small Business Card loans of $7.1 billion. Refreshed FICO scores for this portfolio are $188 million for less than 620; $572 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 $4.5 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 September 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 nine months ended September 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 Nine Months Ended September 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 September 30, 2021Nine Months Ended September 30, 2021
Residential mortgage$451 $399 3.52 %3.49 %$832 $742 3.49 %3.44 %
Home equity61 45 3.51 3.51 97 73 3.56 3.58 
Total $512 $444 3.52 3.49 $929 $815 3.50 3.46 
Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
Residential mortgage$103 $88 4.06 %3.99 %$294 $244 4.07 %3.90 %
Home equity12 10 4.25 4.08 56 45 3.85 3.73 
Total $115 $98 4.08 4.00 $350 $289 4.03 3.87 
(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 September 30, 2021 and 2020 carrying value for consumer real estate loans that were modified in a TDR during the three and nine months ended September 30, 2021 and 2020, by type of modification.
Consumer Real Estate – Modification Programs
TDRs Entered into During the
Three Months Ended September 30Nine Months Ended September 30
(Dollars in millions)2021202020212020
Modifications under government programs $— $— $4 $8 
Modifications under proprietary programs 417 50 740 136 
Loans discharged in Chapter 7 bankruptcy (1)
9 15 29 44 
Trial modifications18 33 42 101 
Total modifications$444 $98 $815 $289 
(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 nine months ended September 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 September 30Nine Months Ended September 30
(Dollars in millions)2021202020212020
Modifications under government programs$1 $6 $3 $14 
Modifications under proprietary programs35 8 80 27 
Loans discharged in Chapter 7 bankruptcy (1)
1 4 6 15 
Trial modifications (2)
3 15 15 45 
Total modifications$40 $33 $104 $101 
(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 September 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 nine months ended September 30, 2021 and 2020.
Credit Card and Other Consumer – TDRs Entered into During the Three and Nine Months Ended September 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 September 30, 2021Nine Months Ended September 30, 2021
Credit card$66 $71 18.48 %3.71 %$189 $200 18.47 %4.26 %
Direct/Indirect consumer4 2 5.20 5.20 13 8 5.53 5.53 
Total $70 $73 18.06 3.76 $202 $208 17.99 4.31 
Three Months Ended September 30, 2020Nine Months Ended September 30, 2020
Credit card$71 $77 18.19 %6.86 %$203 $214 18.06 %5.82 %
Direct/Indirect consumer35 29 6.02 6.02 50 37 5.87 5.87 
Total $106 $106 14.85 6.63 $253 $251 16.29 5.83 
(1)Includes accrued interest and fees.
The table below presents the September 30, 2021 and 2020 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during the three and nine months ended September 30, 2021 and 2020, by program type.
Credit Card and Other Consumer – TDRs by Program Type
TDRs Entered into During the
Three Months Ended September 30		TDRs Entered into During the
Nine Months Ended September 30
(Dollars in millions)
2021202020212020
Internal programs$60 $80 $166 $178 
External programs
11 19 37 59 
Other
2 7 5 14 
Total$73 $106 $208 $251 
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 September 30, 2021
Allowance for loan and lease losses, July 1$597 $6,835 $6,663 $14,095 
Loans and leases charged off(15)(626)(165)(806)
Recoveries of loans and leases previously charged off56 256 31 343 
Net charge-offs41 (370)(134)(463)
Provision for loan and lease losses(85)175 (565)(475)
Other 2 (1)(3)(2)
Allowance for loan and lease losses, September 30
555 6,639 5,961 13,155 
Reserve for unfunded lending commitments, July 1107 — 1,580 1,687 
Provision for unfunded lending commitments(9)— (140)(149)
Reserve for unfunded lending commitments, September 30
98 — 1,440 1,538 
Allowance for credit losses, September 30
$653 $6,639 $7,401 $14,693 
Three Months Ended September 30, 2020
Allowance for loan and lease losses, July 1$833 $10,122 $8,434 $19,389 
Loans and leases charged off(13)(810)(470)(1,293)
Recoveries of loans and leases previously charged off39 220 62 321 
Net charge-offs26 (590)(408)(972)
Provision for loan and lease losses(6)304 882 1,180 
Other2 — (3)(1)
Allowance for loan and lease losses, September 30
855 9,836 8,905 19,596 
Reserve for unfunded lending commitments, July 1141 — 1,561 1,702 
Provision for unfunded lending commitments(3)— 212 209 
Other— — (1)(1)
Reserve for unfunded lending commitments, September 30
138 — 1,772 1,910 
Allowance for credit losses, September 30
$993 $9,836 $10,677 $21,506 
(Dollars in millions)Nine Months Ended September 30, 2021
Allowance for loan and lease losses, January 1$858 $9,213 $8,731 $18,802 
Loans and leases charged off(60)(2,402)(591)(3,053)
Recoveries of loans and leases previously charged off170 757 245 1,172 
Net charge-offs110 (1,645)(346)(1,881)
Provision for loan and lease losses(414)(929)(2,423)(3,766)
Other1 — (1)— 
Allowance for loan and lease losses, September 30
555 6,639 5,961 13,155 
Reserve for unfunded lending commitments, January 1137 — 1,741 1,878 
Provision for unfunded lending commitments(39)— (300)(339)
Other— — (1)(1)
Reserve for unfunded lending commitments, September 30
98 — 1,440 1,538 
Allowance for credit losses, September 30
$653 $6,639 $7,401 $14,693 
Nine Months Ended September 30, 2020
Allowance for loan and lease losses, January 1$440 $7,430 $4,488 $12,358 
Loans and leases charged off(75)(2,916)(1,199)(4,190)
Recoveries of loans and leases previously charged off147 674 129 950 
Net charge-offs72 (2,242)(1,070)(3,240)
Provision for loan and lease losses336 4,648 5,496 10,480 
Other7 — (9)(2)
Allowance for loan and lease losses, September 30
855 9,836 8,905 19,596 
Reserve for unfunded lending commitments, January 1119 — 1,004 1,123 
Provision for unfunded lending commitments19 — 768 787 
Reserve for unfunded lending commitments, September 30
138 — 1,772 1,910 
Allowance for credit losses, September 30
$993 $9,836 $10,677 $21,506