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Loans (Tables)
3 Months Ended
Mar. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Components of Loans
Loans consisted of the following:
March 31, 2021December 31, 2020
 (in millions)
Commercial loans:
Real estate, including construction$10,087 $10,464 
Business and corporate banking(1)
13,125 13,479 
Global banking(2)
13,157 13,519 
Other commercial:
Affiliates(3)
1,652 1,100 
Other3,131 3,037 
Total other commercial4,783 4,137 
Total commercial41,152 41,599 
Consumer loans:
Residential mortgages18,425 18,377 
Home equity mortgages698 727 
Credit cards937 1,066 
Other consumer(4)
314 319 
Total consumer20,374 20,489 
Total loans$61,526 $62,088 
(1)Includes loans funded under the Paycheck Protection Program ("PPP") which totaled $1,294 million and $1,043 million at March 31, 2021 and December 31, 2020, respectively. PPP loans are fully guaranteed by the Small Business Administration, if certain conditions are met.
(2)Represents large multinational firms including globally focused U.S. corporate and financial institutions, U.S. dollar lending to multinational banking clients managed by HSBC on a global basis and complex large business clients supported by Global Banking and Markets relationship managers.
(3)See Note 14, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.
(4)Includes certain student loans that we have elected to designate under the fair value option and are therefore carried at fair value, which totaled $30 million and $32 million at March 31, 2021 and December 31, 2020, respectively. See Note 10, "Fair Value Option," for further details.
Summary of Past Due Status of Loans The following table summarizes the past due status of our loans at March 31, 2021 and December 31, 2020. The aging of past due amounts is determined based on the contractual delinquency status of payments under the loan. An account is generally considered to be contractually delinquent when payments have not been made in accordance with the loan terms. Delinquency status is affected by customer account management policies and practices such as re-age, which results in the re-setting of the contractual delinquency status to current. For COVID-19 related loan modifications in the form of a payment deferral, the borrower’s past due status will not be affected during the deferral period.
 Past DueTotal Past Due 30 Days or More  
30 - 89 Days90+ Days
Current(1)
Total Loans
 (in millions)
At March 31, 2021
Commercial loans:
Real estate, including construction$79 $32 $111 $9,976 $10,087 
Business and corporate banking
42 22 64 13,061 13,125 
Global banking3 138 141 13,016 13,157 
Other commercial32  32 4,751 4,783 
Total commercial156 192 348 40,804 41,152 
Consumer loans:
Residential mortgages
280 333 613 17,812 18,425 
Home equity mortgages8 22 30 668 698 
Credit cards17 28 45 892 937 
Other consumer5 7 12 302 314 
Total consumer310 390 700 19,674 20,374 
Total loans$466 $582 $1,048 $60,478 $61,526 
At December 31, 2020
Commercial loans:
Real estate, including construction$78 $— $78 $10,386 $10,464 
Business and corporate banking
126 19 145 13,334 13,479 
Global banking— 60 60 13,459 13,519 
Other commercial24 — 24 4,113 4,137 
Total commercial228 79 307 41,292 41,599 
Consumer loans:
Residential mortgages
435 311 746 17,631 18,377 
Home equity mortgages11 22 33 694 727 
Credit cards23 19 42 1,024 1,066 
Other consumer13 306 319 
Total consumer476 358 834 19,655 20,489 
Total loans$704 $437 $1,141 $60,947 $62,088 
(1)Loans less than 30 days past due are presented as current.
Summary of Nonaccrual Loans and Accruing Receivables 90 Days or More Delinquent Nonperforming loans, including nonaccrual loans and accruing loans contractually 90 days or more past due, consisted of the following:
Nonaccrual LoansAccruing Loans Contractually Past Due 90 Days or MoreNonaccrual Loans With No Allowance For Credit Losses
 (in millions)
At March 31, 2021
Commercial:
Real estate, including construction$54 $ $39 
Business and corporate banking172  19 
Global banking252  47 
Total commercial478  105 
Consumer:
Residential mortgages(1)(2)(3)
1,101  231 
Home equity mortgages(1)(2)
64  33 
Credit cards 28  
Other consumer 3  
Total consumer1,165 31 264 
Total nonperforming loans$1,643 $31 $369 
At December 31, 2020
Commercial:
Real estate, including construction$44 $— $31 
Business and corporate banking163 — 
Global banking337 — 93 
Total commercial544 — 125 
Consumer:
Residential mortgages(1)(2)(3)
1,079 — 241 
Home equity mortgages(1)(2)
63 — 34 
Credit cards— 19 — 
Other consumer— — 
Total consumer1,142 21 275 
Total nonperforming loans$1,686 $21 $400 
(1)At March 31, 2021 and December 31, 2020, nonaccrual consumer mortgage loans include $371 million and $375 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.
(2)Nonaccrual consumer mortgage loans include all loans which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent. At March 31, 2021 and December 31, 2020, nonaccrual consumer mortgage loans also included $535 million and $590 million, respectively, of loans under COVID-19 related payment deferral programs where the borrowers utilized a payment deferral of more than six months and, as a result, have been placed on nonaccrual status.
(3)Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association. Repayment of these loans is predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our consumer loan portfolio.
Schedule of Additional Information on Nonaccrual Loans
The following table provides additional information on our nonaccrual loans:
Three Months Ended March 31,20212020
(in millions)
Interest income that would have been recorded if the nonaccrual loans had been current in accordance with contractual terms during the period$18 $
Interest income that was recorded on nonaccrual loans and included in interest income during the period15 
Summary of TDR Loans
The following table summarizes our TDR Loans at March 31, 2021 and December 31, 2020:
March 31, 2021December 31, 2020
 (in millions)
Commercial loans:
Business and corporate banking$118 $94 
Global banking44 74 
Total commercial(1)(2)
162 168 
Consumer loans:
Residential mortgages(3)(4)
585 582 
Home equity mortgages(3)(4)
31 31 
Credit cards5 
Total consumer621 618 
Total TDR Loans(5)
$783 $786 
(1)Additional commitments to lend to commercial borrowers whose loans have been modified in TDR Loans totaled $35 million and $107 million at March 31, 2021 and December 31, 2020, respectively.
(2)Not included in the table at March 31, 2021 and December 31, 2020 are $781 million and $924 million, respectively, of commercial loans that were exempted from TDR assessment due to our CARES Act election.
(3)At March 31, 2021 and December 31, 2020, the carrying value of consumer mortgage TDR Loans includes $478 million and $487 million, respectively, of loans that are recorded at the lower of amortized cost or fair value of the collateral less cost to sell.
(4)Not included in the table at March 31, 2021 and December 31, 2020 are $646 million and $736 million, respectively, of consumer mortgage loans under COVID-19 related payment deferral programs where the borrowers were provided with extended payment deferral relief of more than six months that were exempted from TDR assessment due to our CARES Act election.
(5)At March 31, 2021 and December 31, 2020, the carrying value of TDR Loans includes $458 million and $463 million, respectively, of loans which are classified as nonaccrual.
Summary of Receivables which were Modified and as a Result became Classified as TDR Loans
The following table presents information about loans which were modified during the three months ended March 31, 2021 and 2020 and as a result of this action became classified as TDR Loans:
Three Months Ended March 31,20212020
(in millions)
Commercial loans:
Business and corporate banking$26 $— 
Global banking15 12 
Total commercial41 12 
Consumer loans:
Residential mortgages16 
Home equity mortgages 
Credit cards1 
Total consumer17 
Total$58 $18 
Loans Classified as TDR Loans in Previous 12 Months that became 60 Days or Greater Delinquent
The following table presents consumer loans which were classified as TDR Loans during the previous 12 months which subsequently became 60 days or greater contractually delinquent during the three months ended March 31, 2021 and 2020:
Three Months Ended March 31,20212020
(in millions)
Consumer loans:
Residential mortgages$3 $
Total consumer$3 $
Commercial Loans [Member]  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of Criticized Commercial Loans
The following table summarizes our criticized commercial loans, including a disaggregation of the loans by year of origination as of March 31, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Mar. 31, 2021
 (in millions)
Real estate, including construction:
Special mention$ $ $162 $205 $210 $376 $ $ $953 
Substandard  415 168 184   767 
Doubtful         
Total real estate, including construction  577 205 378 560   1,720 
Business and corporate banking:
Special mention 18 21 63 29 463 575 36 1,205 
Substandard 5 33 32 31 224 389 5 719 
Doubtful     47 55  102 
Total business and corporate banking 23 54 95 60 734 1,019 41 2,026 
Global banking:
Special mention     105 70  175 
Substandard     91 332  423 
Doubtful     138 56  194 
Total global banking     334 458  792 
Other commercial:
Special mention    8 50 40  98 
Substandard     70   70 
Doubtful         
Total other commercial    8 120 40  168 
Total commercial:
Special mention 18 183 268 247 994 685 36 2,431 
Substandard 5 448 32 199 569 721 5 1,979 
Doubtful     185 111  296 
Total commercial$ $23 $631 $300 $446 $1,748 $1,517 $41 $4,706 
20202019201820172016PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Dec. 31, 2020
 (in millions)
Real estate, including construction:
Special mention$— $306 $115 $171 $85 $437 $— $— $1,114 
Substandard— 186 — 169 — 86 — — 441 
Doubtful— — — — — — — — — 
Total real estate, including construction— 492 115 340 85 523 — — 1,555 
Business and corporate banking:
Special mention17 71 43 32 10 390 600 48 1,211 
Substandard44 25 23 31 181 435 741 
Doubtful— — — — — 41 57 — 98 
Total business and corporate banking18 115 68 55 41 612 1,092 49 2,050 
Global banking:
Special mention— — — — — 142 98 — 240 
Substandard— — 48 — — 131 477 — 656 
Doubtful— — — — — 82 160 — 242 
Total global banking— — 48 — — 355 735 — 1,138 
Other commercial:
Special mention— — — — — 44 40 — 84 
Substandard— — — — — 70 — — 70 
Doubtful— — — — — — — — — 
Total other commercial— — — — — 114 40 — 154 
Total commercial:
Special mention17 377 158 203 95 1,013 738 48 2,649 
Substandard230 73 192 31 468 912 1,908 
Doubtful— — — — — 123 217 — 340 
Total commercial$18 $607 $231 $395 $126 $1,604 $1,867 $49 $4,897 
Summary of Nonperforming Status The following table summarizes the nonperforming status of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of March 31, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Mar. 31, 2021
 (in millions)
Real estate, including construction:
Performing loans$ $563 $3,663 $2,753 $1,300 $1,681 $56 $17 $10,033 
Nonaccrual loans   32  22   54 
Accruing loans contractually past due 90 days or more         
Total real estate, including construction 563 3,663 2,785 1,300 1,703 56 17 10,087 
Business and corporate banking:
Performing loans46 1,202 622 230 261 4,074 6,213 305 12,953 
Nonaccrual loans 2 15 17 57 2 77 2 172 
Accruing loans contractually past due 90 days or more         
Total business and corporate banking46 1,204 637 247 318 4,076 6,290 307 13,125 
Global banking:
Performing loans117 605 358 199 238 6,193 5,195  12,905 
Nonaccrual loans     125 127  252 
Accruing loans contractually past due 90 days or more         
Total global banking117 605 358 199 238 6,318 5,322  13,157 
Other commercial:
Performing loans44 436 402 215 113 780 2,793  4,783 
Nonaccrual loans         
Accruing loans contractually past due 90 days or more         
Total other commercial44 436 402 215 113 780 2,793  4,783 
Total commercial:
Performing loans207 2,806 5,045 3,397 1,912 12,728 14,257 322 40,674 
Nonaccrual loans 2 15 49 57 149 204 2 478 
Accruing loans contractually past due 90 days or more         
Total commercial$207 $2,808 $5,060 $3,446 $1,969 $12,877 $14,461 $324 $41,152 
20202019201820172016PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Dec. 31, 2020
 (in millions)
Real estate, including construction:
Performing loans$545 $3,775 $2,775 $1,368 $264 $1,594 $79 $20 $10,420 
Nonaccrual loans— — 24 — — 20 — — 44 
Accruing loans contractually past due 90 days or more— — — — — — — — — 
Total real estate, including construction545 3,775 2,799 1,368 264 1,614 79 20 10,464 
Business and corporate banking:
Performing loans1,079 606 253 275 151 3,485 7,145 322 13,316 
Nonaccrual loans15 12 60 71 — 163 
Accruing loans contractually past due 90 days or more— — — — — — — — — 
Total business and corporate banking1,080 621 265 335 152 3,488 7,216 322 13,479 
Global banking:
Performing loans507 495 190 231 104 6,023 5,632 — 13,182 
Nonaccrual loans— — — — — 127 210 — 337 
Accruing loans contractually past due 90 days or more— — — — — — — — — 
Total global banking507 495 190 231 104 6,150 5,842 — 13,519 
Other commercial:
Performing loans378 431 215 105 119 630 2,259 — 4,137 
Nonaccrual loans— — — — — — — — — 
Accruing loans contractually past due 90 days or more— — — — — — — — — 
Total other commercial378 431 215 105 119 630 2,259 — 4,137 
Total commercial:
Performing loans2,509 5,307 3,433 1,979 638 11,732 15,115 342 41,055 
Nonaccrual loans15 36 60 150 281 — 544 
Accruing loans contractually past due 90 days or more— — — — — — — — — 
Total commercial$2,510 $5,322 $3,469 $2,039 $639 $11,882 $15,396 $342 $41,599 
Summary of Credit Quality Indicators Commercial loans are assigned a credit rating based on the estimated probability of default. Investment grade includes loans with credit ratings of at least BBB- or above or the equivalent based on our internal credit rating system. The following table summarizes the credit risk profile of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of March 31, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Mar. 31, 2021
 (in millions)
Real estate, including construction:
Investment grade$ $339 $917 $979 $342 $542 $5 $ $3,124 
Non-investment grade 224 2,746 1,806 958 1,161 51 17 6,963 
Total real estate, including construction 563 3,663 2,785 1,300 1,703 56 17 10,087 
Business and corporate banking:
Investment grade16 340 176 40 30 1,820 2,145 36 4,603 
Non-investment grade30 864 461 207 288 2,256 4,145 271 8,522 
Total business and corporate banking46 1,204 637 247 318 4,076 6,290 307 13,125 
Global banking:
Investment grade117 567 331 52 234 4,146 4,044  9,491 
Non-investment grade 38 27 147 4 2,172 1,278  3,666 
Total global banking117 605 358 199 238 6,318 5,322  13,157 
Other commercial:
Investment grade5 423 145 214 113 659 2,601  4,160 
Non-investment grade39 13 257 1  121 192  623 
Total other commercial44 436 402 215 113 780 2,793  4,783 
Total commercial:
Investment grade138 1,669 1,569 1,285 719 7,167 8,795 36 21,378 
Non-investment grade69 1,139 3,491 2,161 1,250 5,710 5,666 288 19,774 
Total commercial$207 $2,808 $5,060 $3,446 $1,969 $12,877 $14,461 $324 $41,152 
20202019201820172016PriorRevolving
Loans
Revolving Loans Converted to Term LoansTotal at Dec. 31, 2020
 (in millions)
Real estate, including construction:
Investment grade$339 $1,123 $817 $318 $179 $640 $$— $3,422 
Non-investment grade206 2,652 1,982 1,050 85 974 73 20 7,042 
Total real estate, including construction545 3,775 2,799 1,368 264 1,614 79 20 10,464 
Business and corporate banking:
Investment grade342 147 37 34 23 1,486 2,499 47 4,615 
Non-investment grade738 474 228 301 129 2,002 4,717 275 8,864 
Total business and corporate banking1,080 621 265 335 152 3,488 7,216 322 13,479 
Global banking:
Investment grade464 477 46 231 30 4,618 4,281 — 10,147 
Non-investment grade43 18 144 — 74 1,532 1,561 — 3,372 
Total global banking507 495 190 231 104 6,150 5,842 — 13,519 
Other commercial:
Investment grade372 163 117 105 116 525 1,932 — 3,330 
Non-investment grade268 98 — 105 327 — 807 
Total other commercial378 431 215 105 119 630 2,259 — 4,137 
Total commercial:
Investment grade1,517 1,910 1,017 688 348 7,269 8,718 47 21,514 
Non-investment grade993 3,412 2,452 1,351 291 4,613 6,678 295 20,085 
Total commercial$2,510 $5,322 $3,469 $2,039 $639 $11,882 $15,396 $342 $41,599 
Consumer Loans [Member]  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of TDR Loans The following table summarizes TDR Loans in our consumer loan portfolio, including a disaggregation of the loans by year of origination as of March 31, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans
Total at Mar. 31, 2021
 (in millions)
Residential mortgages$ $3 $6 $11 $3 $562 $ $585 
Home equity mortgages     31  31 
Credit cards      5 5 
Total consumer$ $3 $6 $11 $3 $593 $5 $621 
20202019201820172016PriorRevolving
Loans
Total at Dec. 31, 2020
 (in millions)
Residential mortgages$$$$$$563 $— $582 
Home equity mortgages— — — — — 31 — 31 
Credit cards— — — — — — 
Total consumer$$$$$$594 $$618 
Summary of Nonperforming Status The following table summarizes the nonperforming status of our consumer loan portfolio, including a disaggregation of the loans by year of origination as of March 31, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans
Total at Mar. 31, 2021
 (in millions)
Residential mortgages:
Performing loans$1,365 $4,243 $2,145 $1,198 $1,417 $6,956 $ $17,324 
Nonaccrual loans
 46 115 110 94 736  1,101 
Total residential mortgages1,365 4,289 2,260 1,308 1,511 7,692  18,425 
Home equity mortgages:
Performing loans3 51 49 32 33 466  634 
Nonaccrual loans
  1 1 1 61  64 
Total home equity mortgages3 51 50 33 34 527  698 
Credit cards:
Performing loans      909 909 
Accruing loans contractually past due 90 days or more
      28 28 
Total credit cards      937 937 
Other consumer:
Performing loans25 79 32 1 1 124 49 311 
Accruing loans contractually past due 90 days or more
 1 1    1 3 
Total other consumer25 80 33 1 1 124 50 314 
Total consumer:
Performing loans1,393 4,373 2,226 1,231 1,451 7,546 958 19,178 
Nonaccrual loans 46 116 111 95 797  1,165 
Accruing loans contractually past due 90 days or more
 1 1    29 31 
Total consumer$1,393 $4,420 $2,343 $1,342 $1,546 $8,343 $987 $20,374 
20202019201820172016PriorRevolving
Loans
Total at Dec. 31, 2020
 (in millions)
Residential mortgages:
Performing loans$4,491 $2,369 $1,338 $1,572 $1,852 $5,676 $— $17,298 
Nonaccrual loans
38 107 93 86 78 677 — 1,079 
Total residential mortgages4,529 2,476 1,431 1,658 1,930 6,353 — 18,377 
Home equity mortgages:
Performing loans50 51 33 34 45 451 — 664 
Nonaccrual loans
— — 59 — 63 
Total home equity mortgages50 51 34 35 47 510 — 727 
Credit cards:
Performing loans— — — — — — 1,047 1,047 
Accruing loans contractually past due 90 days or more
— — — — — — 19 19 
Total credit cards— — — — — — 1,066 1,066 
Other consumer:
Performing loans87 39 — 128 54 317 
Accruing loans contractually past due 90 days or more
— — — — — — 
Total other consumer87 39 — 128 56 319 
Total consumer:
Performing loans4,628 2,459 1,371 1,607 1,905 6,255 1,101 19,326 
Nonaccrual loans38 107 94 87 80 736 — 1,142 
Accruing loans contractually past due 90 days or more
— — — — — — 21 21 
Total consumer$4,666 $2,566 $1,465 $1,694 $1,985 $6,991 $1,122 $20,489 
Summary of Credit Quality Indicators The following table summarizes dollars of two-months-and-over contractual delinquency for our consumer loan portfolio, including a disaggregation of the loans by year of origination as of March 31, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans
Total at Mar. 31, 2021
 (in millions)
Residential mortgages(1)(2)
$ $7 $19 $21 $28 $325 $ $400 
Home equity mortgages(1)(2)
     25  25 
Credit cards      36 36 
Other consumer 1 1   5 2 9 
Total consumer$ $8 $20 $21 $28 $355 $38 $470 
20202019201820172016PriorRevolving
Loans
Total at Dec. 31, 2020
 (in millions)
Residential mortgages(1)(2)
$$15 $13 $25 $19 $329 $— $404 
Home equity mortgages(1)(2)
— — — — — 25 — 25 
Credit cards— — — — — — 28 28 
Other consumer— — — — 
Total consumer$$16 $13 $25 $19 $354 $30 $465 
(1)At March 31, 2021 and December 31, 2020, consumer mortgage loan delinquency includes $273 million and $281 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.
(2)At March 31, 2021 and December 31, 2020, consumer mortgage loans include $102 million and $109 million, respectively, of loans that were in the process of foreclosure.