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Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 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:
 
June 30, 2020
 
January 1, 2020
 
December 31, 2019
 
(in millions)
Allowance for credit losses:
 
 
 
 
 
Loans
$
1,192

 
$
467

 
$
637

Securities held-to-maturity(1)
2

 
2

 
—

Other financial assets measured at amortized cost(2)
4

 
3

 
—

Securities available-for-sale(1)
3

 
3

 
—

Total allowance for credit losses
$
1,201

 
$
475

 
$
637

 
 
 
 
 
 
Liability for off-balance sheet credit exposures
$
253

 
$
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 and six months ended June 30, 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 June 30, 2020
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
92

 
$
382

 
$
248

 
$
5

 
$
(41
)
 
$
16

 
$
212

 
$
17

 
$
931

Provision charged (credited) to income
28

 
106

 
176

 
(1
)
 
20

 
(1
)
 
3

 
6

 
337

Charge-offs
—

 
(55
)
 
—

 
—

 
(1
)
 
—

 
(26
)
 
(2
)
 
(84
)
Recoveries
—

 
1

 
—

 
1

 
3

 
1

 
1

 
1

 
8

Net (charge-offs) recoveries
—

 
(54
)
 
—

 
1

 
2

 
1

 
(25
)
 
(1
)
 
(76
)
Allowance for credit losses – end of period
$
120

 
$
434

 
$
424

 
$
5

 
$
(19
)
 
$
16

 
$
190

 
$
22

 
$
1,192

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
119

 
$
239

 
$
122

 
$
15

 
$
10

 
$
8

 
$
63

 
$
7

 
$
583

Provision charged (credited) to income
30

 
13

 
(9
)
 
(6
)
 
1

 
(1
)
 
19

 
(1
)
 
46

Charge-offs
—

 
(2
)
 
(3
)
 
—

 
(3
)
 
(1
)
 
(12
)
 
(2
)
 
(23
)
Recoveries
—

 
1

 
—

 
—

 
3

 
1

 
1

 
1

 
7

Net (charge-offs) recoveries
—

 
(1
)
 
(3
)
 
—

 
—

 
—

 
(11
)
 
(1
)
 
(16
)
Allowance for credit losses – end of period
$
149

 
$
251

 
$
110

 
$
9

 
$
11

 
$
7

 
$
71

 
$
5

 
$
613

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 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
79

 
319

 
286

 
—

 
50

 
2

 
98

 
15

 
849

Charge-offs
—

 
(67
)
 
(19
)
 
—

 
—

 
(2
)
 
(48
)
 
(4
)
 
(140
)
Recoveries
—

 
3

 
—

 
1

 
5

 
3

 
3

 
1

 
16

Net (charge-offs) recoveries
—

 
(64
)
 
(19
)
 
1

 
5

 
1

 
(45
)
 
(3
)
 
(124
)
Allowance for credit losses – end of period
$
120

 
$
434

 
$
424

 
$
5

 
$
(19
)
 
$
16

 
$
190

 
$
22

 
$
1,192

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for credit losses – beginning of period
$
116

 
$
219

 
$
108

 
$
15

 
$
13

 
$
7

 
$
58

 
$
5

 
$
541

Provision charged (credited) to income
33

 
35

 
5

 
(6
)
 
—

 
—

 
35

 
2

 
104

Charge-offs
—

 
(4
)
 
(3
)
 
—

 
(7
)
 
(2
)
 
(25
)
 
(3
)
 
(44
)
Recoveries
—

 
1

 
—

 
—

 
5

 
2

 
3

 
1

 
12

Net (charge-offs) recoveries
—

 
(3
)
 
(3
)
 
—

 
(2
)
 
—

 
(22
)
 
(2
)
 
(32
)
Allowance for credit losses – end of period
$
149

 
$
251

 
$
110

 
$
9

 
$
11

 
$
7

 
$
71

 
$
5

 
$
613
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 and six months ended June 30, 2020 and 2019:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
 
(in millions)
Balance at beginning of period
$
371

 
$
89

 
$
104

 
$
96

Cumulative effect adjustment to initially apply new accounting guidance for measuring credit losses
—

 
—

 
54

 
—

Balance at beginning of period, adjusted
371

 
89

 
158

 
96

Provision charged (credited) to income
(118
)
 
1

 
95

 
(6
)
Balance at end of period
$
253

 
$
90

 
$
253

 
$
90
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."
 
June 30, 2020
 
(in millions)
Accrued interest receivables:
 
Loans
$
156

Securities held-to-maturity
29

Other financial assets measured at amortized cost
1

Securities available-for-sale
105

Total accrued interest receivables
291

Allowance for credit losses
3

Accrued interest receivables, net
$
288