Loans

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Loans

Loans

Loans consisted of the following:

At December 31,	2021		2020
	(in millions)
Commercial loans:
Real estate, including construction	$	8,234	$	10,464
Business and corporate banking(1)	13,958		13,479
Global banking(2)	11,109		13,519
Other commercial:
Affiliates(3)	2,793		1,100
Other	3,702		3,037
Total other commercial	6,495		4,137
Total commercial	39,796		41,599
Consumer loans:
Residential mortgages	15,469		18,377
Home equity mortgages	325		727
Credit cards	204		1,066
Other consumer(4)	70		319
Total consumer(5)	16,068		20,489
Total loans	$	55,864	$	62,088

(1)Includes loans funded under the PPP which totaled $262 million and $1,043 million at December 31, 2021 and 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 24, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.

(4)Included certain student loans that we have elected to designate under the fair value option and are therefore carried at fair value, which totaled $32 million at December 31, 2020. These student loans were transferred to held for sale during the fourth quarter of 2021. See Note 17, "Fair Value Option," for further details.

(5)The decrease in consumer loans at December 31, 2021 includes the impact of transfers of certain loans to held for sale during 2021. See Note 9, "Loans Held for Sale," for additional information.

We have loans outstanding to certain executive officers and directors. The loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons and do not involve more than normal risk of collectibility. The aggregate amount of such loans did not exceed 5 percent of total equity at either December 31, 2021 or 2020.

Net deferred origination costs totaled $40 million and $57 million at December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, we had a net unamortized premium on our loans of $5 million and $9 million, respectively.

COVID-19 Loan Forbearance Initiatives We implemented various loan modification programs to provide borrowers relief from the economic impacts of the COVID-19 pandemic. Substantially all of the loans under these programs were not classified as TDR Loans due to our election to suspend TDR Loan classification under the CARES Act (which expired on January 1, 2022) or their short-term nature as discussed under the Interagency Statement. 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 was not affected during the deferral period and, if the loan was accruing at the time the relief was granted, the loan was generally not placed on

nonaccrual status as long as the borrower utilized a payment deferral of six months or less. For consumer mortgage loans, when a borrower utilized a payment deferral of more than six months, the loan was generally placed on nonaccrual status and, if the loan did not meet the criteria in the CARES Act, assessed for TDR Loan classification. We did not modify our commercial loan nonaccrual policies as a result of this guidance. See Note 2, "Summary of Significant Accounting Policies and New Accounting Pronouncements," for further discussion.

Aging Analysis of Past Due Loans  The following table summarizes the past due status of our loans at December 31, 2021 and 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 was not affected during the deferral period.

	Past Due				Total Past Due 30 Days or More
	30 - 89 Days		90+ Days				Current(1)		Total Loans
	(in millions)
At December 31, 2021
Commercial loans:
Real estate, including construction	$	38	$	—	$	38	$	8,196	$	8,234
Business and corporate banking	112		17		129		13,829		13,958
Global banking	—		27		27		11,082		11,109
Other commercial	47		—		47		6,448		6,495
Total commercial	197		44		241		39,555		39,796
Consumer loans:
Residential mortgages	138		63		201		15,268		15,469
Home equity mortgages	2		1		3		322		325
Credit cards	5		2		7		197		204
Other consumer	1		—		1		69		70
Total consumer(2)	146		66		212		15,856		16,068
Total loans	$	343	$	110	$	453	$	55,411	$	55,864
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 commercial	24		—		24		4,113		4,137
Total commercial	228		79		307		41,292		41,599
Consumer loans:
Residential mortgages	435		311		746		17,631		18,377
Home equity mortgages	11		22		33		694		727
Credit cards	23		19		42		1,024		1,066
Other consumer	7		6		13		306		319
Total consumer	476		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 consumer past due loans at December 31, 2021 includes the impact of transfers of certain loans to held for sale during 2021, which collectively included $419 million of consumer loans which were past due 30 days or more at the time of transfer. See Note 9, "Loans Held for Sale," for additional information.

Contractual Maturities  Contractual maturities of loans outstanding at December 31, 2021 were as follows:

	2022		2023 - 2026		2027 - 2036		Thereafter		Total
	(in millions)
Commercial loans:
Real estate, including construction	$	4,843	$	3,183	$	202	$	6	$	8,234
Business and corporate banking	8,211		5,395		342		10		13,958
Global banking	6,535		4,294		272		8		11,109
Other commercial	3,821		2,511		159		4		6,495
Consumer loans:
Residential mortgages	223		57		667		14,522		15,469
Home equity mortgages(1)	118		157		33		17		325
Credit cards(2)	—		204		—		—		204
Other consumer	65		3		2		—		70
Total	$	23,816	$	15,804	$	1,677	$	14,567	$	55,864

(1)Home equity mortgage maturities reflect estimates based on historical payment patterns.

(2)As credit card receivables do not have stated maturities, the table reflects an average estimate based on historical payment patterns.

As a substantial portion of consumer loans, based on our experience, will be renewed or repaid prior to contractual maturity, the above maturity schedule should not be regarded as a forecast of future cash collections. The following table summarizes loans outstanding at December 31, 2021 due after one year by repricing characteristic:

December 31, 2021	Receivables at Predetermined Interest Rates		Receivables at Floating or Adjustable Rates		Total Loans Due After One Year
	(in millions)
Commercial loans:
Real estate, including construction	$	240	$	3,151	$	3,391
Business and corporate banking	407		5,340		5,747
Global banking	324		4,250		4,574
Other commercial	189		2,485		2,674
Consumer loans:
Residential mortgages	5,181		10,065		15,246
Home equity mortgages	23		184		207
Credit cards	26		178		204
Other consumer	—		5		5
Total	$	6,390	$	25,658	$	32,048

Nonperforming Loans  Nonperforming loans, including nonaccrual loans and accruing loans contractually 90 days or more past due, consisted of the following:

	Nonaccrual Loans		Accruing Loans Contractually Past Due 90 Days or More		Nonaccrual Loans With No Allowance For Credit Losses
	(in millions)
At December 31, 2021
Commercial:
Real estate, including construction	$	140	$	—	$	20
Business and corporate banking	134		1		69
Global banking	105		—		63
Total commercial	379		1		152
Consumer:
Residential mortgages(1)(2)(3)	229		—		55
Home equity mortgages(1)(2)	9		—		4
Credit cards	—		2		—
Other consumer	—		—		—
Total consumer(4)	238		2		59
Total nonperforming loans	$	617	$	3	$	211
At December 31, 2020
Commercial:
Real estate, including construction	$	44	$	—	$	31
Business and corporate banking	163		—		1
Global banking	337		—		93
Total commercial	544		—		125
Consumer:
Residential mortgages(1)(2)(3)	1,079		—		241
Home equity mortgages(1)(2)	63		—		34
Credit cards	—		19		—
Other consumer	—		2		—
Total consumer	1,142		21		275
Total nonperforming loans	$	1,686	$	21	$	400

(1)At December 31, 2021 and 2020, nonaccrual consumer mortgage loans include $86 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 December 31, 2021 and 2020, nonaccrual consumer mortgage loans also included $12 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 consumer nonperforming loans at December 31, 2021 includes the impact of transfers of certain loans to held for sale during 2021, which collectively included $698 million of nonperforming consumer loans at the time of transfer, of which $21 million were accruing loans contractually 90 days or more past due. See Note 9, "Loans Held for Sale," for additional information.

Interest income that was recorded on nonaccrual loans and included in interest income totaled $34 million, $12 million and $15 million during the years ended December 31, 2021, 2020 and 2019, respectively.

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 December 31, 2021 and 2020, we had collateral-dependent residential mortgage loans totaling $214 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 December 31, 2021 and 2020, we had collateral-dependent commercial loans totaling $347 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 2021 and 2020, there were no commercial loans that met this criteria and were removed from TDR Loan classification. During 2019, a $12 million commercial loan met this criteria and was removed from TDR Loan classification.

As previously discussed, we 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 were not classified as TDR Loans due to our election to suspend TDR Loan classification under the CARES Act (which expired on January 1, 2022) 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. We currently have $76 million of loans under COVID-19 related payment deferral programs that will need to be assessed for TDR Loan classification when they exit the program.

The following table summarizes our TDR Loans at December 31, 2021 and 2020:

At December 31,	2021		2020
	(in millions)
Commercial loans:
Business and corporate banking	$	38	$	94
Global banking	25		74
Total commercial(1)(2)	63		168
Consumer loans:
Residential mortgages(3)(4)	125		582
Home equity mortgages(3)(4)	9		31
Credit cards	3		5
Total consumer(5)	137		618
Total TDR Loans(6)	$	200	$	786

(1)Additional commitments to lend to commercial borrowers whose loans have been modified in TDR Loans totaled $13 million and $107 million at December 31, 2021 and 2020, respectively.

(2)Not included in the table at December 31, 2021 and 2020 are $42 million and $924 million, respectively, of commercial loans that were exempted from TDR assessment due to our CARES Act election.

(3)At December 31, 2021 and 2020, the carrying value of consumer mortgage TDR Loans includes $104 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 December 31, 2021 and 2020 are $16 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 consumer TDR Loans at December 31, 2021 includes the impact of transfers of certain loans to held for sale during 2021, which collectively included $416 million of consumer TDR Loans at the time of transfer. See Note 9, "Loans Held for Sale," for additional information.

(6)At December 31, 2021 and 2020, the carrying value of TDR Loans includes $115 million and $463 million, respectively, of loans which are classified as nonaccrual.

The following table presents information about loans which were modified during 2021, 2020 and 2019 and as a result of this action became classified as TDR Loans:

Year Ended December 31,	2021		2020		2019
	(in millions)
Commercial loans:
Business and corporate banking	$	11	$	95	$	—
Global banking	15		44		—
Total commercial	26		139		—
Consumer loans:
Residential mortgages	36		78		8
Home equity mortgages	1		3		1
Credit cards	2		4		3
Total consumer	39		85		12
Total	$	65	$	224	$	12

The weighted-average contractual rate reduction for consumer loans which became classified as TDR Loans during 2021, 2020 and 2019 was 2.08 percent, 1.75 percent and 2.18 percent, 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 years ended December 31, 2021, 2020 and 2019:

Year Ended December 31,	2021		2020		2019
	(in millions)
Consumer loans:
Residential mortgages	$	5	$	5	$	3
Total consumer	$	5	$	5	$	3

During the years ended December 31, 2021, 2020 and 2019, 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 December 31, 2021 and 2020:

	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total at Dec. 31, 2021
	(in millions)
Real estate, including construction:
Special mention	$	—	$	—	$	350	$	487	$	90	$	259	$	—	$	—	$	1,186
Substandard	—		1		272		263		308		461		20		11		1,336
Doubtful	—		—		80		2		—		53		—		—		135
Total real estate, including construction	—		1		702		752		398		773		20		11		2,657
Business and corporate banking:
Special mention	—		1		91		60		26		274		173		—		625
Substandard	—		18		36		9		3		226		424		8		724
Doubtful	—		—		—		20		—		28		16		—		64
Total business and corporate banking	—		19		127		89		29		528		613		8		1,413
Global banking:
Special mention	8		—		—		—		—		8		47		—		63
Substandard	—		—		—		—		—		54		232		—		286
Doubtful	—		—		—		—		—		—		31		—		31
Total global banking	8		—		—		—		—		62		310		—		380
Other commercial:
Special mention	—		—		—		—		—		7		—		—		7
Substandard	—		—		—		—		—		—		40		—		40
Doubtful	—		—		—		—		—		—		—		—		—
Total other commercial	—		—		—		—		—		7		40		—		47
Total commercial:
Special mention	8		1		441		547		116		548		220		—		1,881
Substandard	—		19		308		272		311		741		716		19		2,386
Doubtful	—		—		80		22		—		81		47		—		230
Total commercial	$	8	$	20	$	829	$	841	$	427	$	1,370	$	983	$	19	$	4,497

    

	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total 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 mention	17		71		43		32		10		390		600		48		1,211
Substandard	1		44		25		23		31		181		435		1		741
Doubtful	—		—		—		—		—		41		57		—		98
Total business and corporate banking	18		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 mention	17		377		158		203		95		1,013		738		48		2,649
Substandard	1		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 December 31, 2021 and 2020:

	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total at Dec. 31, 2021
	(in millions)
Real estate, including construction:
Performing loans	$	969	$	651	$	2,436	$	2,076	$	593	$	1,307	$	46	$	16	$	8,094
Nonaccrual loans	—		2		80		40		—		18		—		—		140
Total real estate, including construction	969		653		2,516		2,116		593		1,325		46		16		8,234
Business and corporate banking:
Performing loans	1,630		709		594		190		187		4,756		5,540		217		13,823
Nonaccrual loans	—		4		14		30		51		1		34		—		134
Accruing loans contractually past due 90 days or more	—		—		—		—		—		—		1		—		1
Total business and corporate banking	1,630		713		608		220		238		4,757		5,575		217		13,958
Global banking:
Performing loans	547		540		203		80		243		4,580		4,811		—		11,004
Nonaccrual loans	—		—		—		—		—		40		65		—		105
Total global banking	547		540		203		80		243		4,620		4,876		—		11,109
Other commercial:
Performing loans	589		552		451		174		110		1,045		3,574		—		6,495
Total other commercial	589		552		451		174		110		1,045		3,574		—		6,495
Total commercial:
Performing loans	3,735		2,452		3,684		2,520		1,133		11,688		13,971		233		39,416
Nonaccrual loans	—		6		94		70		51		59		99		—		379
Accruing loans contractually past due 90 days or more	—		—		—		—		—		—		1		—		1
Total commercial	$	3,735	$	2,458	$	3,778	$	2,590	$	1,184	$	11,747	$	14,071	$	233	$	39,796

	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total 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
Total real estate, including construction	545		3,775		2,799		1,368		264		1,614		79		20		10,464
Business and corporate banking:
Performing loans	1,079		606		253		275		151		3,485		7,145		322		13,316
Nonaccrual loans	1		15		12		60		1		3		71		—		163
Total business and corporate banking	1,080		621		265		335		152		3,488		7,216		322		13,479
Global banking:
Performing loans	507		495		190		231		104		6,023		5,632		—		13,182
Nonaccrual loans	—		—		—		—		—		127		210		—		337
Total global banking	507		495		190		231		104		6,150		5,842		—		13,519
Other commercial:
Performing loans	378		431		215		105		119		630		2,259		—		4,137
Total other commercial	378		431		215		105		119		630		2,259		—		4,137
Total commercial:
Performing loans	2,509		5,307		3,433		1,979		638		11,732		15,115		342		41,055
Nonaccrual loans	1		15		36		60		1		150		281		—		544
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 December 31, 2021 and 2020:

	2021		2020		2019		2018		2017		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total at Dec. 31, 2021
	(in millions)
Real estate, including construction:
Investment grade	$	1	$	361	$	491	$	772	$	57	$	248	$	12	$	—	$	1,942
Non-investment grade	968		292		2,025		1,344		536		1,077		34		16		6,292
Total real estate, including construction	969		653		2,516		2,116		593		1,325		46		16		8,234
Business and corporate banking:
Investment grade	881		254		240		52		43		2,122		2,498		55		6,145
Non-investment grade	749		459		368		168		195		2,635		3,077		162		7,813
Total business and corporate banking	1,630		713		608		220		238		4,757		5,575		217		13,958
Global banking:
Investment grade	530		539		189		64		235		3,910		4,240		—		9,707
Non-investment grade	17		1		14		16		8		710		636		—		1,402
Total global banking	547		540		203		80		243		4,620		4,876		—		11,109
Other commercial:
Investment grade	120		442		153		174		69		943		3,527		—		5,428
Non-investment grade	469		110		298		—		41		102		47		—		1,067
Total other commercial	589		552		451		174		110		1,045		3,574		—		6,495
Total commercial:
Investment grade	1,532		1,596		1,073		1,062		404		7,223		10,277		55		23,222
Non-investment grade	2,203		862		2,705		1,528		780		4,524		3,794		178		16,574
Total commercial	$	3,735	$	2,458	$	3,778	$	2,590	$	1,184	$	11,747	$	14,071	$	233	$	39,796

	2020		2019		2018		2017		2016		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total at Dec. 31, 2020
	(in millions)
Real estate, including construction:
Investment grade	$	339	$	1,123	$	817	$	318	$	179	$	640	$	6	$	—	$	3,422
Non-investment grade	206		2,652		1,982		1,050		85		974		73		20		7,042
Total real estate, including construction	545		3,775		2,799		1,368		264		1,614		79		20		10,464
Business and corporate banking:
Investment grade	342		147		37		34		23		1,486		2,499		47		4,615
Non-investment grade	738		474		228		301		129		2,002		4,717		275		8,864
Total business and corporate banking	1,080		621		265		335		152		3,488		7,216		322		13,479
Global banking:
Investment grade	464		477		46		231		30		4,618		4,281		—		10,147
Non-investment grade	43		18		144		—		74		1,532		1,561		—		3,372
Total global banking	507		495		190		231		104		6,150		5,842		—		13,519
Other commercial:
Investment grade	372		163		117		105		116		525		1,932		—		3,330
Non-investment grade	6		268		98		—		3		105		327		—		807
Total other commercial	378		431		215		105		119		630		2,259		—		4,137
Total commercial:
Investment grade	1,517		1,910		1,017		688		348		7,269		8,718		47		21,514
Non-investment grade	993		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 December 31, 2021 and 2020:

	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total at Dec. 31, 2021
	(in millions)
Residential mortgages(1)(2)	$	5	$	2	$	11	$	13	$	8	$	64	$	—	$	103
Home equity mortgages(1)(2)	—		—		—		—		—		1		—		1
Credit cards	—		—		—		—		—		—		3		3
Other consumer	—		—		—		—		—		—		—		—
Total consumer	$	5	$	2	$	11	$	13	$	8	$	65	$	3	$	107

	2020		2019		2018		2017		2016		Prior		Revolving 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 consumer	1		1		—		—		—		4		2		8
Total consumer	$	4	$	16	$	13	$	25	$	19	$	358	$	30	$	465

(1)At December 31, 2021 and 2020, consumer mortgage loan delinquency includes $24 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 December 31, 2021 and 2020, consumer mortgage loans include $87 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 December 31, 2021 and 2020:

	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total at Dec. 31, 2021
	(in millions)
Residential mortgages:
Performing loans	$	4,496	$	3,296	$	1,481	$	851	$	955	$	4,161	$	—	$	15,240
Nonaccrual loans	2		9		15		21		14		168		—		229
Total residential mortgages	4,498		3,305		1,496		872		969		4,329		—		15,469
Home equity mortgages:
Performing loans	15		30		30		18		17		206		—		316
Nonaccrual loans	—		—		—		—		—		9		—		9
Total home equity mortgages	15		30		30		18		17		215		—		325
Credit cards:
Performing loans	—		—		—		—		—		—		202		202
Accruing loans contractually past due 90 days or more	—		—		—		—		—		—		2		2
Total credit cards	—		—		—		—		—		—		204		204
Other consumer:
Performing loans	8		8		5		1		1		45		2		70
Total other consumer	8		8		5		1		1		45		2		70
Total consumer:
Performing loans	4,519		3,334		1,516		870		973		4,412		204		15,828
Nonaccrual loans	2		9		15		21		14		177		—		238
Accruing loans contractually past due 90 days or more	—		—		—		—		—		—		2		2
Total consumer	$	4,521	$	3,343	$	1,531	$	891	$	987	$	4,589	$	206	$	16,068

	2020		2019		2018		2017		2016		Prior		Revolving 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 mortgages	4,529		2,476		1,431		1,658		1,930		6,353		—		18,377
Home equity mortgages:
Performing loans	50		51		33		34		45		451		—		664
Nonaccrual loans	—		—		1		1		2		59		—		63
Total home equity mortgages	50		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 loans	87		39		—		1		8		128		54		317
Accruing loans contractually past due 90 days or more	—		—		—		—		—		—		2		2
Total other consumer	87		39		—		1		8		128		56		319
Total consumer:
Performing loans	4,628		2,459		1,371		1,607		1,905		6,255		1,101		19,326
Nonaccrual loans	38		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 December 31, 2021 and 2020:

	2021		2020		2019		2018		2017		Prior		Revolving Loans		Total at Dec. 31, 2021
	(in millions)
Residential mortgages	$	—	$	1	$	3	$	3	$	—	$	118	$	—	$	125
Home equity mortgages	—		—		—		—		—		9		—		9
Credit cards	—		—		—		—		—		—		3		3
Total consumer	$	—	$	1	$	3	$	3	$	—	$	127	$	3	$	137

	2020		2019		2018		2017		2016		Prior		Revolving 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 December 31, 2021 and 2020, our loan portfolios included interest-only residential mortgage and home equity mortgage loans totaling $3,739 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.