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Loans
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Loans Loans
Loans consisted of the following:
September 30, 2021December 31, 2020
 (in millions)
Commercial loans:
Real estate, including construction$8,250 $10,464 
Business and corporate banking(1)
12,788 13,479 
Global banking(2)
11,440 13,519 
Other commercial:
Affiliates(3)
2,857 1,100 
Other3,579 3,037 
Total other commercial6,436 4,137 
Total commercial38,914 41,599 
Consumer loans:
Residential mortgages16,093 18,377 
Home equity mortgages369 727 
Credit cards— 1,066 
Other consumer(4)
150 319 
Total consumer(5)
16,612 20,489 
Total loans$55,526 $62,088 
(1)Includes loans funded under the Paycheck Protection Program ("PPP") which totaled $437 million and $1,043 million at September 30, 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 15, "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 $27 million and $32 million at September 30, 2021 and December 31, 2020, respectively. See Note 11, "Fair Value Option," for further details.
(5)The decrease in loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021. See Note 8, "Loans Held for Sale," for additional information.
Net deferred origination costs totaled $36 million and $57 million at September 30, 2021 and December 31, 2020, respectively. At September 30, 2021 and December 31, 2020, we had a net unamortized premium on our loans of $6 million and $9 million, respectively.
Coronavirus ("COVID-19") Loan Forbearance Initiatives We have implemented various loan modification programs to provide borrowers relief from the economic impacts of the COVID-19 pandemic. In 2020, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was signed into law, which provided financial institutions with the option to temporarily suspend certain requirements under U.S. GAAP related to troubled debt restructurings ("TDR Loans") beginning March 1, 2020. This TDR Loan guidance can be applied until the earlier of January 1, 2022 or 60 days following the termination of the presidentially declared national emergency. We elected to adopt the TDR Loan guidance in the CARES Act and are not applying TDR Loan classification to COVID-19 related loan modifications in the form of a long-term payment deferral (for commercial loans all payment modifications, including all payment deferrals) granted to borrowers that were current (less than 30 days past due) as of December 31, 2019 which otherwise may have been reported as TDR Loans.
In 2020, federal banking regulators issued a revised interagency statement on loan modifications and the reporting for financial institutions working with customers affected by the COVID-19 pandemic ("Interagency Statement"). The Interagency Statement confirmed that COVID-19 related short-term loan modifications (e.g., payment deferrals of six months or less) provided to borrowers that were current (less than 30 days past due) at the time the relief was granted are not TDR Loans. Borrowers that do not meet the criteria in the CARES Act or the Interagency Statement are assessed for TDR Loan classification in accordance with our accounting policies.
In addition, under the Interagency Statement, 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 and, if the loan was accruing at the time the relief was granted, the loan will generally not be placed on nonaccrual status as long as the borrower utilizes a payment deferral of six months or less. For consumer mortgage loans, when a borrower utilizes a payment deferral of more than six months, the loan will generally be placed on nonaccrual status and, if the loan does not meet the criteria in the CARES Act, assessed for TDR Loan classification. Any accrued interest recorded on these loans is generally not reversed against income and will remain recorded as accrued interest receivable. We have not modified our commercial loan nonaccrual policies as a result of this guidance.
Aging Analysis of Past Due Loans  The following table summarizes the past due status of our loans at September 30, 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 September 30, 2021
Commercial loans:
Real estate, including construction$56 $5 $61 $8,189 $8,250 
Business and corporate banking
124 1 125 12,663 12,788 
Global banking— 23 23 11,417 11,440 
Other commercial16 — 16 6,420 6,436 
Total commercial196 29 225 38,689 38,914 
Consumer loans:
Residential mortgages
203 264 467 15,626 16,093 
Home equity mortgages5 19 24 345 369 
Credit cards— — — — — 
Other consumer3 3 6 144 150 
Total consumer(2)
211 286 497 16,115 16,612 
Total loans$407 $315 $722 $54,804 $55,526 
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 consumer7 6 13 306 319 
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.
(2)The decrease in past due loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $115 million of consumer loans which were past due 30 days or more.
Nonperforming Loans  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 September 30, 2021
Commercial:
Real estate, including construction$128 $— $35 
Business and corporate banking139 1 73 
Global banking132 — 90 
Total commercial399 1 198 
Consumer:
Residential mortgages(1)(2)(3)
785 — 214 
Home equity mortgages(1)(2)
47 — 26 
Credit cards— — — 
Other consumer— — — 
Total consumer(4)
832 — 240 
Total nonperforming loans$1,231 $1 $438 
At December 31, 2020
Commercial:
Real estate, including construction$44 $— $31 
Business and corporate banking163 — 1 
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— 2 — 
Total consumer1,142 21 275 
Total nonperforming loans$1,686 $21 $400 
(1)At September 30, 2021 and December 31, 2020, nonaccrual consumer mortgage loans include $323 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 September 30, 2021 and December 31, 2020, nonaccrual consumer mortgage loans also included $367 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.
(4)The decrease in nonperforming loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $206 million of nonperforming consumer loans, of which $21 million were accruing loans contractually 90 days or more past due.
The following table provides additional information on our nonaccrual loans:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(in millions)
Interest income that would have been recorded if the nonaccrual loans had been current in accordance with contractual terms during the period$11 $10 $44 $29 
Interest income that was recorded on nonaccrual loans and included in interest income during the period6 2 31 8 
Collateral-Dependent Loans Loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty are considered to be collateral-dependent loans. Collateral can have a significant financial effect in mitigating our exposure to credit risk.
Collateral-dependent residential mortgage loans are carried at the lower of amortized cost or fair value of the collateral less costs to sell, with any excess in the carrying amount of the loan generally charged off at the time foreclosure is initiated or when settlement is reached with the borrower, but not to exceed the end of the month in which the account becomes six months contractually delinquent. Collateral values are based on broker price opinions or appraisals which are updated at least every 180 days less estimated costs to sell. During the quarterly period between updates, real estate price trends are reviewed on a geographic basis and incorporated as necessary. At September 30, 2021 and December 31, 2020, we had collateral-dependent residential mortgage loans totaling $623 million and $817 million, respectively.
For collateral-dependent commercial loans, the allowance for expected credit losses is individually assessed based on the fair value of the collateral. Various types of collateral are used, including real estate, inventory, equipment, accounts receivable, securities and cash, among others. For commercial real estate loans, collateral values are generally based on appraisals which are updated based on management judgment under the specific circumstances on a case-by-case basis. In situations where an appraisal is not used, borrower-specific factors such as operating results, cash flows and debt service ratios are reviewed along with relevant market data of comparable properties in order to create a 10-year cash flow model to be discounted at appropriate rates to present value. The collateral value for securities is based on their quoted market prices or broker quotes. The collateral value for other financial assets is generally based on appraisals or is estimated using a discounted cash flow analysis. Commercial loan balances are charged off at the time all or a portion of the balance is deemed uncollectible. At September 30, 2021 and December 31, 2020, we had collateral-dependent commercial loans totaling $358 million and $456 million, respectively.
Troubled debt restructurings  TDR Loans represent loans for which the original contractual terms have been modified to provide for terms that are less than what we would be willing to accept for new loans with comparable risk because of deterioration in the borrower's financial condition.
Modifications for consumer or commercial loans may include changes to one or more terms of the loan, including, but not limited to, a change in interest rate, extension of the amortization period, reduction in payment amount and partial forgiveness or deferment of principal, accrued interest or other loan covenants. A substantial amount of our modifications involve interest rate reductions on consumer loans, which lower the amount of interest income we are contractually entitled to receive in future periods. Through lowering the interest rate and other loan term changes, we believe we are able to increase the amount of cash flow that will ultimately be collected from the loan, given the borrower's financial condition. Once a consumer loan is classified as a TDR Loan, it continues to be reported as such until it is paid off or charged-off. For commercial loans, if subsequent performance is in accordance with the new terms and the loan is upgraded, it is possible the loan will no longer be reported as a TDR Loan at the earliest one year after the restructuring. During the three and nine months ended September 30, 2021 and 2020, there were no commercial loans that met this criteria and were removed from TDR Loan classification.
As previously discussed, we have implemented various loan modification payment deferral programs to provide borrowers relief from the economic impacts of COVID-19. Substantially all of the loans under these programs are not classified as TDR Loans due to our election to suspend TDR Loan classification under the CARES Act or their short-term nature as discussed under the Interagency Statement. If a borrower is experiencing financial difficulty when the payment relief period ends, they may enter into a modification program to reduce the interest rate and/or extend the term of the loan which would result in the loan being classified as a TDR Loan.
The following table summarizes our TDR Loans at September 30, 2021 and December 31, 2020:
September 30, 2021December 31, 2020
 (in millions)
Commercial loans:
Business and corporate banking$40 $94 
Global banking37 74 
Total commercial(1)(2)
77 168 
Consumer loans:
Residential mortgages(3)(4)
384 582 
Home equity mortgages(3)(4)
17 31 
Credit cards— 5 
Total consumer(5)
401 618 
Total TDR Loans(6)
$478 $786 
(1)Additional commitments to lend to commercial borrowers whose loans have been modified in TDR Loans totaled $13 million and $107 million at September 30, 2021 and December 31, 2020, respectively.
(2)Not included in the table at September 30, 2021 and December 31, 2020 are $352 million and $924 million, respectively, of commercial loans that were exempted from TDR assessment due to our CARES Act election.
(3)At September 30, 2021 and December 31, 2020, the carrying value of consumer mortgage TDR Loans includes $339 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 September 30, 2021 and December 31, 2020 are $404 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)The decrease in TDR Loans at September 30, 2021 includes the impact of our decision to exit our mass market retail banking business as well as our remaining retail credit card portfolio which resulted in the transfer of certain loans to held for sale during the second quarter of 2021, including $159 million of consumer TDR Loans.
(6)At September 30, 2021 and December 31, 2020, the carrying value of TDR Loans includes $317 million and $463 million, respectively, of loans which are classified as nonaccrual.
The following table presents information about loans which were modified during the three and nine months ended September 30, 2021 and 2020 and as a result of this action became classified as TDR Loans:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(in millions)
Commercial loans:
Business and corporate banking$— $41 $26 $45 
Global banking— — 15 44 
Total commercial— 41 41 89 
Consumer loans:
Residential mortgages1 20 33 27 
Home equity mortgages— — 1 2 
Credit cards— 1 1 3 
Total consumer1 21 35 32 
Total$1 $62 $76 $121 
The weighted-average contractual rate reduction for consumer loans which became classified as TDR Loans during the three and nine months ended September 30, 2021 was 3.13 percent and 2.08 percent, respectively, compared with 1.80 percent and 2.14 percent during the three and nine months ended September 30, 2020, respectively. The weighted-average contractual rate reduction for commercial loans was not significant in either the number of loans or rate.
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 and nine months ended September 30, 2021 and 2020:
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
(in millions)
Consumer loans:
Residential mortgages$1 $2 $4 $3 
Total consumer$1 $2 $4 $3 
During the three and nine months ended September 30, 2021 and 2020, there were no commercial TDR Loans which were classified as TDR Loans during the previous 12 months which subsequently became 90 days or greater contractually delinquent.
Commercial Loan Credit Quality Indicators  The following credit quality indicators are utilized to monitor our commercial loan portfolio:
Criticized loans  Criticized loan classifications presented in the table below are determined by the assignment of various criticized facility grades based on the risk rating standards of our regulator. The following facility grades are deemed to be criticized:
Special Mention - generally includes loans that are protected by collateral and/or the credit worthiness of the customer, but are potentially weak based upon economic or market circumstances which, if not checked or corrected, could weaken our credit position at some future date.
Substandard - includes loans that are inadequately protected by the underlying collateral and/or general credit worthiness of the customer. These loans present a distinct possibility that we will sustain some loss if the deficiencies are not corrected.
Doubtful - includes loans that have all the weaknesses exhibited by substandard loans, with the added characteristic that the weaknesses make collection or liquidation in full of the recorded loan highly improbable. However, although the possibility of loss is extremely high, certain factors exist which may strengthen the credit at some future date, and therefore the decision to charge-off the loan is deferred. Loans graded as doubtful are required to be placed in nonaccrual status.
The following table summarizes our criticized commercial loans, including a disaggregation of the loans by year of origination as of September 30, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Sep. 30, 2021
 (in millions)
Real estate, including construction:
Special mention$— $— $352 $361 $110 $225 $— $— $1,048 
Substandard— — 706 312 357 552 21 11 1,959 
Doubtful— — 81 2 11 — — 94 
Total real estate, including construction— — 1,139 675 467 788 21 11 3,101 
Business and corporate banking:
Special mention— 1 94 64 28 206 226 10 629 
Substandard— 19 40 9 3 250 459 8 788 
Doubtful— — — 20 — 30 16 — 66 
Total business and corporate banking— 20 134 93 31 486 701 18 1,483 
Global banking:
Special mention8 39 — — — 39 54 — 140 
Substandard19 — — — — 106 266 — 391 
Doubtful— — — — — — 31 — 31 
Total global banking27 39 — — — 145 351 — 562 
Other commercial:
Special mention— — — — — 8 — — 8 
Substandard— — — — — 70 40 — 110 
Doubtful— — — — — — — — — 
Total other commercial— — — — — 78 40 — 118 
Total commercial:
Special mention8 40 446 425 138 478 280 10 1,825 
Substandard19 19 746 321 360 978 786 19 3,248 
Doubtful— — 81 22 — 41 47 — 191 
Total commercial$27 $59 $1,273 $768 $498 $1,497 $1,113 $29 $5,264 
    
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 
Substandard1 44 25 23 31 181 435 1 741 
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 
Substandard1 230 73 192 31 468 912 1 1,908 
Doubtful— — — — — 123 217 — 340 
Total commercial$18 $607 $231 $395 $126 $1,604 $1,867 $49 $4,897 
Nonperforming  The following table summarizes the nonperforming status of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of September 30, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Sep. 30, 2021
 (in millions)
Real estate, including construction:
Performing loans$7 $635 $2,999 $2,217 $783 $1,416 $49 $16 $8,122 
Nonaccrual loans— — 81 26 — 21 — — 128 
Accruing loans contractually past due 90 days or more— — — — — — — — — 
Total real estate, including construction7 635 3,080 2,243 783 1,437 49 16 8,250 
Business and corporate banking:
Performing loans304 647 527 210 217 4,842 5,645 256 12,648 
Nonaccrual loans— 4 14 30 54 1 36 — 139 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total business and corporate banking304 651 541 240 271 4,843 5,682 256 12,788 
Global banking:
Performing loans403 674 327 217 234 4,630 4,823 — 11,308 
Nonaccrual loans— — — — — 42 90 — 132 
Accruing loans contractually past due 90 days or more— — — — — — — — — 
Total global banking403 674 327 217 234 4,672 4,913 — 11,440 
Other commercial:
Performing loans214 450 420 205 100 1,141 3,906 — 6,436 
Nonaccrual loans— — — — — — — — — 
Accruing loans contractually past due 90 days or more— — — — — — — — — 
Total other commercial214 450 420 205 100 1,141 3,906 — 6,436 
Total commercial:
Performing loans928 2,406 4,273 2,849 1,334 12,029 14,423 272 38,514 
Nonaccrual loans— 4 95 56 54 64 126 — 399 
Accruing loans contractually past due 90 days or more— — — — — — 1 — 1 
Total commercial$928 $2,410 $4,368 $2,905 $1,388 $12,093 $14,550 $272 $38,914 
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 loans1 15 12 60 1 3 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 loans1 15 36 60 1 150 281 — 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 
Credit risk profile  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 September 30, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Sep. 30, 2021
 (in millions)
Real estate, including construction:
Investment grade$6 $318 $563 $809 $129 $238 $15 $— $2,078 
Non-investment grade1 317 2,517 1,434 654 1,199 34 16 6,172 
Total real estate, including construction7 635 3,080 2,243 783 1,437 49 16 8,250 
Business and corporate banking:
Investment grade31 263 196 42 23 2,308 2,524 69 5,456 
Non-investment grade273 388 345 198 248 2,535 3,158 187 7,332 
Total business and corporate banking304 651 541 240 271 4,843 5,682 256 12,788 
Global banking:
Investment grade331 666 298 202 234 3,683 4,112 — 9,526 
Non-investment grade72 8 29 15 — 989 801 — 1,914 
Total global banking403 674 327 217 234 4,672 4,913 — 11,440 
Other commercial:
Investment grade43 368 178 204 76 805 3,739 — 5,413 
Non-investment grade171 82 242 1 24 336 167 — 1,023 
Total other commercial214 450 420 205 100 1,141 3,906 — 6,436 
Total commercial:
Investment grade411 1,615 1,235 1,257 462 7,034 10,390 69 22,473 
Non-investment grade517 795 3,133 1,648 926 5,059 4,160 203 16,441 
Total commercial$928 $2,410 $4,368 $2,905 $1,388 $12,093 $14,550 $272 $38,914 
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 $6 $— $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 grade6 268 98 — 3 105 327 — 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 Loan Credit Quality Indicators  The following credit quality indicators are utilized to monitor our consumer loan portfolio:
Delinquency  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 September 30, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans		Total at Sep. 30, 2021
 (in millions)
Residential mortgages(1)(2)
$— $4 $12 $7 $19 $268 $— $310 
Home equity mortgages(1)(2)
— — — — — 20 — 20 
Credit cards— — — — — — — — 
Other consumer— — — — — 4 — 4 
Total consumer$— $4 $12 $7 $19 $292 $— $334 
20202019201820172016PriorRevolving
Loans		Total at Dec. 31, 2020
 (in millions)
Residential mortgages(1)(2)
$3 $15 $13 $25 $19 $329 $— $404 
Home equity mortgages(1)(2)
— — — — — 25 — 25 
Credit cards— — — — — — 28 28 
Other consumer1 1 — — — 4 2 8 
Total consumer$4 $16 $13 $25 $19 $358 $30 $465 
(1)At September 30, 2021 and December 31, 2020, consumer mortgage loan delinquency includes $252 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 September 30, 2021 and December 31, 2020, consumer mortgage loans include $91 million and $109 million, respectively, of loans that were in the process of foreclosure.
Nonperforming  The following table summarizes the nonperforming status of our consumer loan portfolio, including a disaggregation of the loans by year of origination as of September 30, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans		Total at Sep. 30, 2021
 (in millions)
Residential mortgages:
Performing loans$3,574 $3,527 $1,677 $885 $1,016 $4,629 $— $15,308 
Nonaccrual loans
6 39 74 66 60 540 — 785 
Total residential mortgages3,580 3,566 1,751 951 1,076 5,169 — 16,093 
Home equity mortgages:
Performing loans12 34 28 19 19 210 — 322 
Nonaccrual loans
— — 1 — — 46 — 47 
Total home equity mortgages12 34 29 19 19 256 — 369 
Credit cards:
Performing loans— — — — — — — — 
Accruing loans contractually past due 90 days or more
— — — — — — — — 
Total credit cards— — — — — — — — 
Other consumer:
Performing loans6 13 5 1 1 122 2 150 
Accruing loans contractually past due 90 days or more
— — — — — — — — 
Total other consumer6 13 5 1 1 122 2 150 
Total consumer:
Performing loans3,592 3,574 1,710 905 1,036 4,961 2 15,780 
Nonaccrual loans6 39 75 66 60 586 — 832 
Accruing loans contractually past due 90 days or more
— — — — — — — — 
Total consumer$3,598 $3,613 $1,785 $971 $1,096 $5,547 $2 $16,612 
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
— — 1 1 2 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 — 1 8 128 54 317 
Accruing loans contractually past due 90 days or more
— — — — — — 2 2 
Total other consumer87 39 — 1 8 128 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 $20,489 
Troubled debt restructurings  The following table summarizes TDR Loans in our consumer loan portfolio, including a disaggregation of the loans by year of origination as of September 30, 2021 and December 31, 2020:
20212020201920182017PriorRevolving
Loans		Total at Sep. 30, 2021
 (in millions)
Residential mortgages$— $1 $3 $6 $1 $373 $— $384 
Home equity mortgages— — — — — 17 — 17 
Credit cards— — — — — — — — 
Total consumer$— $1 $3 $6 $1 $390 $— $401 
20202019201820172016PriorRevolving
Loans		Total at Dec. 31, 2020
 (in millions)
Residential mortgages$3 $5 $6 $3 $2 $563 $— $582 
Home equity mortgages— — — — — 31 — 31 
Credit cards— — — — — — 5 5 
Total consumer$3 $5 $6 $3 $2 $594 $5 $618 
Concentration of Credit Risk  At September 30, 2021 and December 31, 2020, our loan portfolios included interest-only residential mortgage and home equity mortgage loans totaling $3,736 million and $3,597 million, respectively. An interest-only residential mortgage loan allows a customer to pay the interest-only portion of the monthly payment for a period of time which results in lower payments during the initial loan period. However, subsequent events affecting a customer's financial position could affect the ability of customers to repay the loan in the future when the principal payments are required which increases the credit risk of this loan type.