Loans and Related Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loans Outstanding

Table 5.1 presents total loans outstanding by portfolio segment and class of financing receivable. Outstanding balances include unearned income, net deferred loan fees or costs, and unamortized discounts and premiums. These amounts were less than 1% of our total loans outstanding at both June 30, 2024, and December 31, 2023.

Outstanding balances exclude accrued interest receivable on loans, except for certain revolving loans, such as credit card loans.

See Note 7 (Intangible Assets and Other Assets) for additional information on accrued interest receivable. Amounts considered to be uncollectible are reversed through interest income. During the first half of 2024, we reversed accrued interest receivable of $23 million for our commercial portfolio segment and $202 million for our consumer portfolio segment, compared with $19 million and $118 million, respectively, for the same period a year ago.

Table 5.1: Loans Outstanding

(in millions)	Jun 30, 2024		Dec 31, 2023
Commercial and industrial	$	374,588	380,388
Commercial real estate	145,318		150,616
Lease financing	16,705		16,423
Total commercial	536,611		547,427
Residential mortgage	255,085		260,724
Credit card	53,756		52,230
Auto	44,280		47,762
Other consumer (1)	28,175		28,539
Total consumer	381,296		389,255
Total loans	$	917,907	936,682

(1)Includes $19.8 billion and $18.3 billion at June 30, 2024, and December 31, 2023, respectively, of securities-based loans originated by the Wealth and Investment Management (WIM) operating segment.

Our non-U.S. loans are reported by respective class of financing receivable in the table above. Substantially all of our non-U.S. loan portfolio is commercial loans. Table 5.2 presents

total non-U.S. commercial loans outstanding by class of financing receivable.

Table 5.2: Non-U.S. Commercial Loans Outstanding

(in millions)	Jun 30, 2024		Dec 31, 2023
Commercial and industrial	$	64,261	72,215
Commercial real estate	6,015		6,916
Lease financing	649		697
Total non-U.S. commercial loans	$	70,925	79,828

Loan Purchases, Sales, and Transfers

Table 5.3 presents the proceeds paid or received for purchases and sales of loans and transfers from loans held for investment to mortgages/loans held for sale. The table excludes loans for

which we have elected the fair value option and government insured/guaranteed loans because their loan activity normally does not impact the ACL.

Table 5.3: Loan Purchases, Sales, and Transfers

	2024				2023
(in millions)	Commercial		Consumer	Total	Commercial	Consumer	Total
Quarter ended June 30,
Purchases	$	68	1	69	195	301	496
Sales and net transfers (to)/from LHFS	(476)		(2)	(478)	(568)	(99)	(667)
Six months ended June 30,
Purchases	$	298	2	300	611	304	915
Sales and net transfers (to)/from LHFS	(898)		(68)	(966)	(1,683)	(100)	(1,783)

Unfunded Credit Commitments

The contractual amount of our unfunded credit commitments, including unissued letters of credit, is summarized in Table 5.4. The table is presented net of commitments syndicated to others, including the fronting arrangements described above, and excludes issued letters of credit and discretionary amounts where our approval or consent is required prior to any loan funding or commitment increase.

Table 5.4: Unfunded Credit Commitments

(in millions)	Jun 30, 2024		Dec 31, 2023
Commercial and industrial	$	386,222	388,043
Commercial real estate	16,440		20,851
Total commercial	402,662		408,894
Residential mortgage (1)	27,621		29,754
Credit card	163,618		156,012
Other consumer	8,326		8,847
Total consumer	199,565		194,613
Total unfunded credit commitments	$	602,227	603,507

(1)Includes lines of credit totaling $25.9 billion and $28.6 billion as of June 30, 2024, and December 31, 2023, respectively.

Allowance for Credit Losses for Loans

Table 5.5 presents the ACL for loans, which consists of the allowance for loan losses and the allowance for unfunded credit commitments. The ACL for loans decreased $299 million from

December 31, 2023, reflecting decreases for auto loans, commercial real estate loans, and residential mortgage loans, partially offset by increases for credit card loans.

Table 5.5: Allowance for Credit Losses for Loans

	Quarter ended June 30,				Six months ended June 30,
($ in millions)	2024			2023	2024			2023
Balance, beginning of period	$	14,862		13,705	$	15,088		13,609
Cumulative effect from change in accounting policy (1)	—			—	—			(429)
Balance, beginning of period, adjusted	14,862			13,705	15,088			13,180
Provision for credit losses	1,229			1,839	2,155			2,968
Loan charge-offs:
Commercial and industrial	(229)			(147)	(401)			(248)
Commercial real estate	(279)			(81)	(471)			(108)
Lease financing	(13)			(6)	(24)			(13)
Total commercial	(521)			(234)	(896)			(369)
Residential mortgage	(17)			(32)	(36)			(60)
Credit card	(745)			(480)	(1,409)			(904)
Auto	(156)			(183)	(347)			(400)
Other consumer	(140)			(110)	(287)			(215)
Total consumer	(1,058)			(805)	(2,079)			(1,579)
Total loan charge-offs	(1,579)			(1,039)	(2,975)			(1,948)
Loan recoveries:
Commercial and industrial	41			28	65			86
Commercial real estate	8			2	13			12
Lease financing	4			4	9			8
Total commercial	53			34	87			106
Residential mortgage	36			44	68			83
Credit card	96			84	183			164
Auto	77			94	156			190
Other consumer	16			19	31			37
Total consumer	225			241	438			474
Total loan recoveries	278			275	525			580
Net loan charge-offs	(1,301)			(764)	(2,450)			(1,368)
Other	(1)			6	(4)			6
Balance, end of period	$	14,789		14,786	$	14,789		14,786
Components:
Allowance for loan losses	$	14,360		14,258	$	14,360		14,258
Allowance for unfunded credit commitments	429			528	429			528
Allowance for credit losses	$	14,789		14,786	$	14,789		14,786
Net loan charge-offs (annualized) as a percentage of average total loans	0.57		%	0.32	0.53		%	0.29
Allowance for loan losses as a percentage of total loans	1.56			1.50	1.56			1.50
Allowance for credit losses for loans as a percentage of total loans	1.61			1.56	1.61			1.56

(1)Represents the change in our allowance for credit losses for loans as a result of our adoption of ASU 2022–02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, on January 1, 2023. For additional information, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in our 2023 Form 10-K.

Allowance for Credit Losses for Loans Activity by Portfolio Segment

Table 5.6 summarizes the activity in the ACL by our commercial and consumer portfolio segments. 

Table 5.6: Allowance for Credit Losses for Loans Activity by Portfolio Segment

	2024				2023
(in millions)	Commercial		Consumer	Total	Commercial	Consumer	Total
Quarter ended June 30,
Balance, beginning of period	$	8,317	6,545	14,862	7,224	6,481	13,705
Provision for credit losses	388		841	1,229	1,056	783	1,839
Loan charge-offs	(521)		(1,058)	(1,579)	(234)	(805)	(1,039)
Loan recoveries	53		225	278	34	241	275
Net loan charge-offs	(468)		(833)	(1,301)	(200)	(564)	(764)
Other	(1)		—	(1)	1	5	6
Balance, end of period	$	8,236	6,553	14,789	8,081	6,705	14,786
Six months ended June 30,
Balance, beginning of period	$	8,412	6,676	15,088	6,956	6,653	13,609
Cumulative effect from change in accounting policy (1)	—		—	—	27	(456)	(429)
Balance, beginning of period, adjusted	8,412		6,676	15,088	6,983	6,197	13,180
Provision for credit losses	637		1,518	2,155	1,360	1,608	2,968
Loan charge-offs	(896)		(2,079)	(2,975)	(369)	(1,579)	(1,948)
Loan recoveries	87		438	525	106	474	580
Net loan charge-offs	(809)		(1,641)	(2,450)	(263)	(1,105)	(1,368)
Other	(4)		—	(4)	1	5	6
Balance, end of period	$	8,236	6,553	14,789	8,081	6,705	14,786

(1)Represents the change in our allowance for credit losses for loans as a result of our adoption of ASU 2022–02, Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, on January 1, 2023. For additional information, see Note 1 (Summary of Significant Accounting Policies) to Financial Statements in our 2023 Form 10-K.

Commercial Loan Categories by Risk Categories and Vintage

Table 5.7 provides the outstanding balances of our commercial loan portfolio by risk category and credit quality information by origination year for term loans. Revolving loans may convert to term loans as a result of a contractual provision in the original loan agreement or if modified for a borrower experiencing financial difficulty. At June 30, 2024, we had $501.1 billion and $35.5 billion of pass and criticized commercial loans, respectively. Gross charge-offs by loan class are included in the following table for the six months ended June 30, 2024, and year ended December 31, 2023, which we monitor as part of our credit risk management practices; however, charge-offs are not a primary credit quality indicator for our loan portfolio.

Table 5.7: Commercial Loan Categories by Risk Categories and Vintage

	Term loans by origination year							Revolving loans	Revolving loans converted to term loans	Total
(in millions)	2024		2023	2022	2021	2020	Prior
June 30, 2024
Commercial and industrial
Pass	$	24,277	28,623	30,426	17,983	5,835	14,959	237,257	303	359,663
Criticized	487		936	1,577	1,075	115	700	10,035	—	14,925
Total commercial and industrial	24,764		29,559	32,003	19,058	5,950	15,659	247,292	303	374,588
Gross charge-offs (1)	15		92	11	24	6	5	248	—	401
Commercial real estate
Pass	10,747		14,586	29,091	26,991	9,746	27,848	6,642	209	125,860
Criticized	1,171		2,456	5,380	4,895	1,233	3,920	403	—	19,458
Total commercial real estate	11,918		17,042	34,471	31,886	10,979	31,768	7,045	209	145,318
Gross charge-offs	—		61	59	16	129	206	—	—	471
Lease financing
Pass	1,818		5,703	3,366	1,942	842	1,952	—	—	15,623
Criticized	150		367	260	128	67	110	—	—	1,082
Total lease financing	1,968		6,070	3,626	2,070	909	2,062	—	—	16,705
Gross charge-offs	—		7	7	6	2	2	—	—	24
Total commercial loans	$	38,650	52,671	70,100	53,014	17,838	49,489	254,337	512	536,611
	Term loans by origination year							Revolving loans	Revolving loans converted to term loans	Total
	2023		2022	2021	2020	2019	Prior
December 31, 2023
Commercial and industrial
Pass	$	40,966	38,756	21,702	7,252	10,024	8,342	239,456	348	366,846
Criticized	892		1,594	1,237	160	204	480	8,975	—	13,542
Total commercial and industrial	41,858		40,350	22,939	7,412	10,228	8,822	248,431	348	380,388
Gross charge-offs (1)	102		22	53	11	8	7	307	—	510
Commercial real estate
Pass	18,181		33,557	30,629	12,001	11,532	19,686	6,537	163	132,286
Criticized	2,572		4,091	4,597	1,822	2,748	2,141	359	—	18,330
Total commercial real estate	20,753		37,648	35,226	13,823	14,280	21,827	6,896	163	150,616
Gross charge-offs	20		107	32	134	197	103	—	—	593
Lease financing
Pass	5,593		3,846	2,400	1,182	798	1,518	—	—	15,337
Criticized	345		292	182	98	84	85	—	—	1,086
Total lease financing	5,938		4,138	2,582	1,280	882	1,603	—	—	16,423
Gross charge-offs	3		8	8	5	4	3	—	—	31
Total commercial loans	$	68,549	82,136	60,747	22,515	25,390	32,252	255,327	511	547,427

(1) Includes charge-offs on overdrafts, which are generally charged-off at 60 days past due.

Commercial Loan Categories by Delinquency Status

Table 5.8 provides days past due (DPD) information for commercial loans, which we monitor as part of our credit risk management practices; however, delinquency is not a primary credit quality indicator for commercial loans.

Table 5.8: Commercial Loan Categories by Delinquency Status

	Still accruing				Nonaccrual loans	Total commercial loans
(in millions)	Current-29 DPD		30-89 DPD	90+ DPD
June 30, 2024
Commercial and industrial	$	372,909	879	46	754	374,588
Commercial real estate	140,213		673	111	4,321	145,318
Lease financing	16,400		219	—	86	16,705
Total commercial loans	$	529,522	1,771	157	5,161	536,611
December 31, 2023
Commercial and industrial	$	379,099	584	43	662	380,388
Commercial real estate	145,721		562	145	4,188	150,616
Lease financing	16,177		182	—	64	16,423
Total commercial loans	$	540,997	1,328	188	4,914	547,427

Credit Quality Indicators for Residential Mortgage Loans by Vintage

Table 5.9 provides the outstanding balances of our residential mortgage loans by our primary credit quality indicators.

Table 5.9: Credit Quality Indicators for Residential Mortgage Loans by Vintage

	Term loans by origination year							Revolving loans	Revolving loans converted to term loans
(in millions)	2024		2023	2022	2021	2020	Prior			Total
June 30, 2024
By delinquency status:
Current-29 DPD	$	4,983	12,460	44,767	60,901	34,075	75,554	6,863	6,520	246,123
30-89 DPD	3		10	77	71	30	793	37	144	1,165
90+ DPD	—		—	22	13	8	347	19	182	591
Government insured/guaranteed loans (1)	—		8	13	37	98	7,050	—	—	7,206
Total	$	4,986	12,478	44,879	61,022	34,211	83,744	6,919	6,846	255,085
By updated FICO:
740+	$	4,677	11,609	41,455	57,352	32,199	65,440	5,407	3,985	222,124
700-739	238		587	2,238	2,412	1,236	5,065	736	928	13,440
660-699	44		169	753	814	405	2,353	360	584	5,482
620-659	5		66	206	182	99	1,000	130	293	1,981
<620	12		5	130	109	59	1,304	160	462	2,241
No FICO available	10		34	84	116	115	1,532	126	594	2,611
Government insured/guaranteed loans (1)	—		8	13	37	98	7,050	—	—	7,206
Total	$	4,986	12,478	44,879	61,022	34,211	83,744	6,919	6,846	255,085
By updated LTV:
0-80%	$	4,974	11,635	40,658	60,116	33,837	76,150	6,794	6,715	240,879
80.01-100%	5		764	4,044	762	195	325	78	86	6,259
>100% (2)	—		44	116	59	25	50	17	21	332
No LTV available	7		27	48	48	56	169	30	24	409
Government insured/guaranteed loans (1)	—		8	13	37	98	7,050	—	—	7,206
Total	$	4,986	12,478	44,879	61,022	34,211	83,744	6,919	6,846	255,085
Gross charge-offs	$	—	—	—	1	—	17	—	18	36
	Term loans by origination year							Revolving loans	Revolving loans converted to term loans	Total
(in millions)	2023		2022	2021	2020	2019	Prior
December 31, 2023
By delinquency status:
Current-29 DPD	$	13,192	46,065	62,529	35,124	19,364	60,391	8,044	6,735	251,444
30-89 DPD	6		70	58	28	30	724	41	151	1,108
90+ DPD	—		18	12	8	14	327	24	201	604
Government insured/guaranteed loans (1)	5		15	39	97	112	7,300	—	—	7,568
Total	$	13,203	46,168	62,638	35,257	19,520	68,742	8,109	7,087	260,724
By updated FICO:
740+	$	12,243	42,550	58,827	33,232	18,000	50,938	6,291	4,092	226,173
700-739	679		2,324	2,510	1,219	888	4,478	883	979	13,960
660-699	185		843	861	422	310	2,261	417	601	5,900
620-659	45		227	179	110	66	978	150	322	2,077
<620	11		122	100	64	46	1,245	174	464	2,226
No FICO available	35		87	122	113	98	1,542	194	629	2,820
Government insured/guaranteed loans (1)	5		15	39	97	112	7,300	—	—	7,568
Total	$	13,203	46,168	62,638	35,257	19,520	68,742	8,109	7,087	260,724
By updated LTV:
0-80%	$	12,434	39,624	61,421	34,833	19,123	61,043	7,903	6,923	243,304
80.01-100%	687		6,286	1,065	232	203	207	103	114	8,897
>100% (2)	51		193	57	33	31	38	21	24	448
No LTV available	26		50	56	62	51	154	82	26	507
Government insured/guaranteed loans (1)	5		15	39	97	112	7,300	—	—	7,568
Total	$	13,203	46,168	62,638	35,257	19,520	68,742	8,109	7,087	260,724
Gross charge-offs	$	—	1	—	—	2	63	4	66	136

(1)Government insured or guaranteed loans represent loans whose repayments are predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA). Loans insured/guaranteed by the FHA/VA and 90+ DPD totaled $2.6 billion at both June 30, 2024, and December 31, 2023.

(2)Reflects total loan balances with LTV amounts in excess of 100%. In the event of default, the loss content would generally be limited to only the amount in excess of 100% LTV.

Credit Quality Indicators for Credit Card Loans

Table 5.10 provides the outstanding balances of our credit card loan portfolio by primary credit quality indicators.

The revolving loans converted to term loans in the credit

card loan category represent credit card loans with modified terms that require payment over a specific term.

Table 5.10: Credit Quality Indicators for Credit Card Loans

	June 30, 2024				December 31, 2023
	Revolving loans		Revolving loans converted to term loans		Revolving loans	Revolving loans converted to term loans
(in millions)				Total			Total
By delinquency status:
Current-29 DPD	$	51,884	435	52,319	50,428	350	50,778
30-89 DPD	638		49	687	660	49	709
90+ DPD	719		31	750	717	26	743
Total	$	53,241	515	53,756	51,805	425	52,230
By updated FICO:
740+	$	20,452	25	20,477	19,153	21	19,174
700-739	11,990		63	12,053	11,727	51	11,778
660-699	10,603		102	10,705	10,592	84	10,676
620-659	5,124		93	5,217	5,273	76	5,349
<620	4,873		230	5,103	4,861	192	5,053
No FICO available	199		2	201	199	1	200
Total	$	53,241	515	53,756	51,805	425	52,230
Gross charge-offs	$	1,329	80	1,409	1,909	100	2,009

Credit Quality Indicators for Auto Loans by Vintage

Table 5.11 provides the outstanding balances of our Auto loan portfolio by primary credit quality indicators.

Table 5.11: Credit Quality Indicators for Auto Loans by Vintage

	Term loans by origination year
(in millions)	2024		2023	2022	2021	2020	Prior	Total
June 30, 2024
By delinquency status:
Current-29 DPD	$	6,966	11,364	10,640	9,675	3,101	1,450	43,196
30-89 DPD	8		52	285	426	143	87	1,001
90+ DPD	1		4	26	37	9	6	83
Total	$	6,975	11,420	10,951	10,138	3,253	1,543	44,280
By updated FICO:
740+	$	4,614	7,664	5,492	4,318	1,311	593	23,992
700-739	1,268		1,697	1,559	1,416	487	223	6,650
660-699	772		1,116	1,335	1,278	430	197	5,128
620-659	230		495	875	915	296	140	2,951
<620	91		439	1,664	2,170	706	372	5,442
No FICO available	—		9	26	41	23	18	117
Total	$	6,975	11,420	10,951	10,138	3,253	1,543	44,280
Gross charge-offs	$	1	23	130	148	31	14	347
	Term loans by origination year
(in millions)	2023		2022	2021	2020	2019	Prior	Total
December 31, 2023
By delinquency status:
Current-29 DPD	$	14,022	13,052	12,376	4,335	2,161	448	46,394
30-89 DPD	43		328	545	195	106	40	1,257
90+ DPD	4		34	49	14	7	3	111
Total	$	14,069	13,414	12,970	4,544	2,274	491	47,762
By updated FICO:
740+	$	9,460	6,637	5,487	1,853	963	176	24,576
700-739	2,232		1,969	1,861	701	347	68	7,178
660-699	1,405		1,745	1,729	623	295	61	5,858
620-659	572		1,162	1,228	425	195	46	3,628
<620	388		1,876	2,621	915	452	130	6,382
No FICO available	12		25	44	27	22	10	140
Total	$	14,069	13,414	12,970	4,544	2,274	491	47,762
Gross charge-offs	$	15	265	392	99	52	9	832

Credit Quality Indicators for Other Consumer Loans by Vintage

Table 5.12 provides the outstanding balances of our Other consumer loans portfolio by primary credit quality indicators.

Table 5.12: Credit Quality Indicators for Other Consumer Loans by Vintage

	Term loans by origination year							Revolving loans	Revolving loans converted to term loans
(in millions)	2024		2023	2022	2021	2020	Prior			Total
June 30, 2024
By delinquency status:
Current-29 DPD	$	1,118	2,454	1,580	400	109	99	22,175	105	28,040
30-89 DPD	2		28	25	6	1	2	15	5	84
90+ DPD	—		10	9	3	—	1	14	14	51
Total	$	1,120	2,492	1,614	409	110	102	22,204	124	28,175
By updated FICO:
740+	$	849	1,312	670	175	67	40	1,045	30	4,188
700-739	145		491	293	73	17	15	457	19	1,510
660-699	48		354	269	63	10	12	354	17	1,127
620-659	7		123	121	30	4	6	128	11	430
<620	3		107	133	46	6	9	143	19	466
No FICO available (1)	68		105	128	22	6	20	20,077	28	20,454
Total	$	1,120	2,492	1,614	409	110	102	22,204	124	28,175
Gross charge-offs (2)	$	51	97	74	19	3	4	34	5	287
	Term loans by origination year							Revolving loans	Revolving loans converted to term loans	Total
(in millions)	2023		2022	2021	2020	2019	Prior
December 31, 2023
By delinquency status:
Current-29 DPD	$	3,273	2,132	571	167	93	61	21,988	106	28,391
30-89 DPD	24		32	9	1	1	2	17	6	92
90+ DPD	9		14	3	1	—	1	15	13	56
Total	$	3,306	2,178	583	169	94	64	22,020	125	28,539
By updated FICO:
740+	$	1,911	926	265	85	36	28	1,152	27	4,430
700-739	642		409	107	27	14	10	507	16	1,732
660-699	403		365	93	16	11	8	395	16	1,307
620-659	129		166	45	6	6	5	147	11	515
<620	75		152	49	8	8	6	152	17	467
No FICO available (1)	146		160	24	27	19	7	19,667	38	20,088
Total	$	3,306	2,178	583	169	94	64	22,020	125	28,539
Gross charge-offs (2)	$	178	158	52	9	9	6	62	11	485

(1)Substantially all loans do not require a FICO score and are revolving securities-based loans originated by the WIM operating segment.

(2)Includes charge-offs on overdrafts, which are generally charged-off at 60 days past due.

Nonaccrual Loans

Table 5.13 provides loans on nonaccrual status. Nonaccrual loans may have an ACL or a negative allowance for credit losses from expected recoveries of amounts previously written off.

Table 5.13: Nonaccrual Loans

	Amortized cost					Recognized interest income
	Nonaccrual loans			Nonaccrual loans without related allowance for credit losses (1)		Six months ended June 30,
(in millions)	Jun 30, 2024		Dec 31, 2023	Jun 30, 2024	Dec 31, 2023	2024	2023
Commercial and industrial	$	754	662	48	149	11	12
Commercial real estate	4,321		4,188	116	107	9	14
Lease financing	86		64	15	10	—	—
Total commercial	5,161		4,914	179	266	20	26
Residential mortgage	3,135		3,192	1,986	2,047	91	98
Auto	103		115	—	—	7	10
Other consumer	35		35	—	—	2	2
Total consumer	3,273		3,342	1,986	2,047	100	110
Total nonaccrual loans	$	8,434	8,256	2,165	2,313	120	136

(1)Nonaccrual loans may not have an allowance for credit losses if the loss expectations are zero given the related collateral value.

Loans 90 Days or More Past Due and Still Accruing

Table 5.14 shows loans 90 days or more past due and still accruing by class for loans not government insured/guaranteed.

Table 5.14: Loans 90 Days or More Past Due and Still Accruing

(in millions)	Jun 30, 2024		Dec 31, 2023
Total:	$	3,650	3,751
Less: FHA insured/VA guaranteed (1)	2,608		2,646
Total, not government insured/guaranteed	$	1,042	1,105
By segment and class, not government insured/guaranteed:
Commercial and industrial	$	46	43
Commercial real estate	111		145
Total commercial	157		188
Residential mortgage	24		31
Credit card	750		743
Auto	73		101
Other consumer	38		42
Total consumer	885		917
Total, not government insured/guaranteed	$	1,042	1,105

(1)Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA

Commercial Loan Modifications and Financial Effects

Table 5.15 presents the amortized cost of modified commercial loans and the related financial effects of these modifications.

Table 5.15: Commercial Loan Modifications and Financial Effects

	Quarter ended June 30,				Six months ended June 30,
($ in millions)	2024			2023	2024	2023
Commercial and industrial modifications:
Term extension	$	320		199	402	226
All other modifications and combinations	82			30	94	38
Total commercial and industrial modifications	$	402		229	496	264
Total commercial and industrial modifications as a % of loan class	0.11		%	0.06	0.13	0.07
Financial effects:
Weighted average interest rate reduction (1)	16.20		%	13.86	14.27	12.62
Weighted average payments deferred (months)	7			10	7	9
Weighted average term extension (months)	5			6	9	7
Commercial real estate modifications:
Term extension	$	321		148	414	190
All other modifications and combinations	45			1	46	10
Total commercial real estate modifications	$	366		149	460	200
Total commercial real estate modifications as a % of loan class	0.25		%	0.10	0.32	0.13
Financial effects:
Weighted average interest rate reduction	0.74		%	0.71	0.77	3.47
Weighted average payments deferred (months)	39			34	39	15
Weighted average term extension (months)	38			7	36	10

(1)Includes modifications for small business credit card customers.

Payment Performance of Commercial Loan Modifications

Table 5.16 provides past due information as of June 30, 2024, for commercial loans that received a modification in the

past 12 months and past due information as of June 30, 2023, for commercial loans that received a modification in the first half of 2023. For loan modifications that include a payment deferral, payment performance is not included in the table below until the loan exits the deferral period and payments resume. The table also includes the amount of gross charge-offs that occurred on these modifications during the second quarter and first half of both 2024 and 2023.

Table 5.16: Payment Performance of Commercial Loan Modifications

	By delinquency status					Gross charge-offs
(in millions)	Current-29 DPD		30-89 DPD	90+ DPD	Total	Quarter ended	Six months ended
June 30, 2024
Commercial and industrial	$	617	8	5	630	60	97
Commercial real estate	762		6	50	818	—	—
Total commercial	$	1,379	14	55	1,448	60	97
June 30, 2023
Commercial and industrial	$	235	3	1	239	5	15
Commercial real estate	124		76	—	200	—	—
Total commercial	$	359	79	1	439	5	15

Consumer Loan Modifications and Financial Effects

Table 5.17 presents the amortized cost of modified consumer loans and the related financial effects of these modifications. Modified loans within the Auto and Other consumer loan classes were insignificant for the second quarter and first half of both 2024 and 2023, and accordingly, are excluded from the following tables and disclosures.

Loans in a trial payment period are not included in the following loan modification disclosures until the borrower has successfully completed the trial period and the loan modification is formally executed. Residential mortgage loans in a trial payment period totaled $110 million and $132 million at June 30, 2024 and 2023, respectively.

Table 5.17: Consumer Loan Modifications and Financial Effects

	Quarter ended June 30,				Six months ended June 30,
($ in millions)	2024			2023	2024	2023
Residential mortgage modifications (1):
Payment delay	$	118		213	199	461
Term extension	8			17	19	41
Term extension and payment delay	27			25	53	54
Interest rate reduction, and term extension, and payment delay	13			22	24	53
All other modifications and combinations	8			14	23	33
Total residential mortgage modifications	$	174		291	318	642
Total residential mortgage modifications as a % of loan class	0.07		%	0.11	0.12	0.24
Financial effects:
Weighted average interest rate reduction	1.83		%	1.55	1.81	1.57
Weighted average payments deferred (months) (2)	6			4	6	4
Weighted average term extension (years)	10.8			9.4	10.8	9.8
Credit card modifications:
Interest rate reduction	$	180		126	336	230
Total credit card modifications	$	180		126	336	230
Total credit card modifications as a % of loan class	0.33		%	0.26	0.63	0.48
Financial effects:
Weighted average interest rate reduction	22.14		%	22.17	22.14	21.92

(1)Payment delay modifications may include loan modifications that defer a set amount of principal to the end of the loan term.

(2)Excludes the financial effects of residential mortgage loans with a set amount of principal deferred to the end of the loan term. The weighted average period of principal deferred was 25.4 years and 26.8 years in second quarter 2024 and 2023, respectively, and 25.2 years and 27.0 years for the first half of 2024 and 2023, respectively.

Payment Performance of Consumer Loan Modifications

Table 5.18 provides past due information as of June 30, 2024, for consumer loans that received a modification in the past 12 months and past due information as of June 30, 2023, for consumer loans that received a modification in the first half of 2023. For loan modifications that include a payment deferral, payment performance is not included in the table below until the loan exits the deferral period and payments resume. The table also includes the amount of gross charge-offs that occurred on these modifications during the second quarter and first half of both 2024 and 2023.

Table 5.18: Payment Performance of Consumer Loan Modifications

	By delinquency status					Gross charge-offs
(in millions)	Current-29 DPD		30-89 DPD	90+ DPD	Total	Quarter ended	Six months ended
June 30, 2024
Residential mortgage	$	427	149	160	736	1	3
Credit card (1)	475		72	59	606	57	99
Total consumer	$	902	221	219	1,342	58	102
June 30, 2023
Residential mortgage (2)	$	283	45	139	467	2	3
Credit card (1)	167		36	27	230	16	20
Total consumer	$	450	81	166	697	18	23

(1)Credit card loans that are past due at the time of the modification do not become current until they have three consecutive months of payment performance.

(2)Includes loans that were past due prior to entering a payment delay modification. Delinquency advancement is paused during the deferral period and resumes upon exit.