Loan Portfolio

12 Months Ended

Dec. 31, 2018

4. Loan Portfolio



December 31,
in millions	2018		2017
Commercial and industrial ^(a)	$	45,753	$	41,859
Commercial real estate:
Commercial mortgage	14,285		14,088
Construction	1,666		1,960
Total commercial real estate loans	15,951		16,048
Commercial lease financing ^(b)	4,606		4,826
Total commercial loans	66,310		62,733
Residential — prime loans:
Real estate — residential mortgage	5,513		5,483
Home equity loans	11,142		12,028
Total residential — prime loans	16,655		17,511
Consumer direct loans	1,809		1,794
Credit cards	1,144		1,106
Consumer indirect loans	3,634		3,261
Total consumer loans	23,242		23,672
Total loans ^(c)	$	89,552	$	86,405


(a)	Loan balances include $132 million and $119 million of commercial credit card balances at December 31, 2018, and December 31, 2017, respectively.


(b)	Commercial lease financing includes receivables of $10 million and $24 million held as collateral for a secured borrowing at December 31, 2018, and December 31, 2017, respectively. Principal reductions are based on the cash payments received from these related receivables. Additional information pertaining to this secured borrowing is included in Note 19 (“Long-Term Debt”).


(c)	Total loans exclude loans in the amount of $1.1 billion at December 31, 2018, and $1.3 billion at December 31, 2017, related to the discontinued operations of the education lending business.

Commercial lease financing receivables primarily are direct financing leases, but also include leveraged leases. The composition of the net investment in direct financing leases is as follows:



December 31,
in millions	2018			2017
Direct financing lease receivables	$	3,658		$	3,727
Unearned income	(345		)	(323		)
Unguaranteed residual value	412			382
Deferred fees and costs	19			19
Net investment in direct financing leases	$	3,744		$	3,805

At December 31, 2018, minimum future lease payments to be received are as follows: 2019 — $1 billion; 2020 — $878 million; 2021 — $609 million; 2022 — $399 million; 2023 —$238 million; and all subsequent years — $416 million. The allowance related to lease financing receivables is $36 million at December 31, 2018.