Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2020

Credit Loss [Abstract]

Summary of Allowance for Credit Losses and Liability for Off-balance Sheet Credit Exposures

The following table summarizes our allowance for credit losses and the liability for off-balance sheet credit exposures:

	March 31, 2020		January 1, 2020		December 31, 2019
	(in millions)
Allowance for credit losses:
Loans	$	931	$	467	$	637
Securities held-to-maturity(1)	2		2		—
Other financial assets measured at amortized cost(2)	5		3		—
Securities available-for-sale(1)	2		3		—
Total allowance for credit losses	$	940	$	475	$	637
Liability for off-balance sheet credit exposures	$	371	$	158	$	104

⁽¹⁾  See Note 4, "Securities," for additional information regarding the allowance for credit losses associated with our security portfolios.

⁽²⁾  Primarily includes accrued interest receivables and customer acceptances.

Summary of Changes in the Allowance for Credit Losses and the Related Loan Balance by Product

The following table summarizes the changes in the allowance for credit losses on loans by product or line of business during the three months ended March 31, 2020 and 2019:

	Commercial Loans												Consumer Loans
	Real Estate, including Construction			Business and Corporate Banking			Global Banking			Other Comm'l			Residential Mortgages			Home Equity Mortgages			Credit Cards			Other Consumer			Total Loans
	(in millions)
Three Months Ended March 31, 2020
Allowance for credit losses – beginning of period	$	153		$	239		$	106		$	9		$	12		$	6		$	105		$	7		$	637
Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses	(112		)	(60		)	51			(5		)	(86		)	7			32			3			(170		)
Allowance for credit losses – beginning of period, adjusted	41			179			157			4			(74		)	13			137			10			467
Provision charged (credited) to income	51			213			110			1			30			3			95			9			512
Charge-offs	—			(12		)	(19		)	—			1			(2		)	(22		)	(2		)	(56		)
Recoveries	—			2			—			—			2			2			2			—			8
Net (charge-offs) recoveries	—			(10		)	(19		)	—			3			—			(20		)	(2		)	(48		)
Allowance for credit losses – end of period	$	92		$	382		$	248		$	5		$	(41	)	$	16		$	212		$	17		$	931
Three Months Ended March 31, 2019
Allowance for credit losses – beginning of period	$	116		$	219		$	108		$	15		$	13		$	7		$	58		$	5		$	541
Provision charged (credited) to income	3			22			14			—			(1		)	1			16			3			58
Charge-offs	—			(2		)	—			—			(4		)	(1		)	(13		)	(1		)	(21		)
Recoveries	—			—			—			—			2			1			2			—			5
Net (charge-offs) recoveries	—			(2		)	—			—			(2		)	—			(11		)	(1		)	(16		)
Allowance for credit losses – end of period	$	119		$	239		$	122		$	15		$	10		$	8		$	63		$	7		$	583

Summary of Changes in the Liability for Off-balance Sheet Credit Exposures

The following table summarizes the changes in the liability for off-balance sheet credit exposures during the three months ended March 31, 2020 and 2019:

Three Months Ended March 31,	2020		2019
	(in millions)
Balance at beginning of period	$	104	$	96
Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses	54		—
Balance at beginning of period, adjusted	158		96
Provision charged (credited) to income	213		(7		)
Balance at end of period	$	371	$	89

Summary of Accrued Interest Receivables

The following table summarizes accrued interest receivables associated with financial assets carried at amortized cost and securities available-for-sale along with the related allowance for credit losses, which are reported net in other assets on the consolidated balance sheet. These accrued interest receivables are excluded from the amortized cost basis disclosures presented elsewhere in these financial statements, including Note 4, "Securities," and Note 5, "Loans."

	March 31, 2020
	(in millions)
Accrued interest receivables:
Loans	$	177
Securities held-to-maturity	32
Other financial assets measured at amortized cost	3
Securities available-for-sale	109
Total accrued interest receivables	321
Allowance for credit losses	3
Accrued interest receivables, net	$	318