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Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2024
Credit Loss [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)June 30, 2024December 31, 2023
Domestic(1):
Commercial and financial:
Fund Finance(2)
$13,808 $13,697 
Leveraged loans2,357 2,412 
Overdrafts1,791 1,225 
Collateralized loan obligations in loan form190 150 
Other(3)
2,376 2,512 
Commercial real estate2,858 3,069 
Total domestic$23,380 $23,065 
Foreign(1):
Commercial and financial:
Fund Finance(2)
$5,630 $4,956 
Leveraged loans1,111 1,194 
Overdrafts1,875 1,047 
Collateralized loan obligations in loan form7,380 6,369 
Total foreign15,996 13,566 
Total loans(4)
39,376 36,631 
Allowance for credit losses(136)(135)
Loans, net of allowance$39,240 $36,496 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $10.20 billion private equity capital call finance loans, $6.73 billion loans to real money funds and $1.37 billion loans to business development companies as of June 30, 2024, compared to $9.69 billion private equity capital call finance loans, $6.63 billion loans to real money funds and $1.05 billion loans to business development companies as of December 31, 2023.
(3) Includes $2.12 billion securities finance loans, $250 million loans to municipalities and $2 million other loans as of June 30, 2024 and $2.23 billion securities finance loans, $276 million loans to municipalities and $5 million other loans as of December 31, 2023.
(4) As of June 30, 2024, excluding overdrafts, floating rate loans totaled $32.90 billion and fixed rate loans totaled $2.80 billion. We have entered into interest rate swap agreements to hedge the forecasted cash flows associated with EURIBOR indexed floating-rate loans. See Note 10 to the consolidated financial statements in our 2023 Form 10-K for additional details.
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator
The following tables present our recorded loans to counterparties by risk rating, as noted above, as of the dates indicated:
June 30, 2024Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$32,734 $2,116 $34,850 
Speculative3,529 355 3,884 
Special mention215 62 277 
Substandard32 132 164 
Doubtful— 193 193 
Total(1)(2)
$36,510 $2,858 $39,368 
December 31, 2023Commercial and FinancialCommercial Real EstateTotal Loans 
(In millions)
Investment grade$29,737 $2,287 $32,024 
Speculative3,546 449 3,995 
Special mention242 62 304 
Substandard14 224 238 
Doubtful23 47 70 
Total(1)
$33,562 $3,069 $36,631 
(1) Loans include $3.67 billion and $2.27 billion of overdrafts as of June 30, 2024 and December 31, 2023, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of June 30, 2024, $3.52 billion overdrafts were investment grade and $0.14 billion overdrafts were speculative.
(2) Total does not include $8 million of loans classified as held-for-sale as of June 30, 2024.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of June 30, 2024. For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement.
(In millions)20242023202220212020PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,731 $223 $100 $163 $6 $234 $15,529 $17,986 
Speculative1,199 214 131 473 51 242 79 2,389 
Special mention20 25 — 76 — — — 121 
Substandard3 — — 15 — — — 18 
Doubtful— — — — — — — — 
Total commercial and financing$2,953 $462 $231 $727 $57 $476 $15,608 $20,514 
Commercial real estate:
Risk Rating:
Investment grade$41 $196 $500 $278 $128 $972 $— $2,115 
Speculative— 20 20 69 100 146 — 355 
Special mention— — — — — 62 — 62 
Substandard— — — — — 132 — 132 
Doubtful— — — — — 193 — 193 
Total commercial real estate$41 $216 $520 $347 $228 $1,505 $— $2,857 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$3,243 $1,907 $1,572 $2,493 $— $— $5,534 $14,749 
Speculative400 203 83 309 48 45 52 1,140 
Special mention— — — 94 — — — 94 
Substandard— — — — — 14 — 14 
Total commercial and financing$3,643 $2,110 $1,655 $2,896 $48 $59 $5,586 $15,997 
Total loans(2)
$6,637 $2,788 $2,406 $3,970 $333 $2,040 $21,194 $39,368 
(1) Any reserve associated with accrued interest is not material. As of June 30, 2024, accrued interest receivable of $297 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2) Total does not include $8 million of loans classified as held-for-sale as of June 30, 2024.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2023:
(In millions)20232022202120202019PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,399 $120 $199 $8 $272 $5 $15,476 $17,479 
Speculative615 285 747 149 291 141 81 2,309 
Special mention— 4 164 — 16 — — 184 
Substandard5 — 18 — — — — 23 
Total commercial and financing$2,019 $409 $1,128 $157 $579 $146 $15,557 $19,995 
Commercial real estate:
Risk Rating:
Investment grade$216 $500 $498 $100 $375 $598 $— $2,287 
Speculative— 20 31 50 49 299 — 449 
Special mention— — — — 22 40 — 62 
Substandard— — — — 95 129 — 224 
Doubtful— — — — — 47 — 47 
Total commercial real estate$216 $520 $529 $150 $541 $1,113 $— $3,069 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$2,943 $1,956 $2,518 $— $— $— $4,841 $12,258 
Speculative394 135 481 88 109 18 12 1,237 
Special mention— — 29 29 — — — 58 
Substandard— — — — — 14 — 14 
Total commercial and financing$3,337 $2,091 $3,028 $117 $109 $32 $4,853 $13,567 
Total loans$5,572 $3,020 $4,685 $424 $1,229 $1,291 $20,410 $36,631 
(1) Any reserve associated with accrued interest is not material. As of December 31, 2023, accrued interest receivable of $318 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
Schedule of Activity in the Allowance for Loan Losses
The following tables present the activity in the allowance for credit losses by portfolio and class for the periods indicated:
Three Months Ended June 30, 2024
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsTotal
Allowance for credit losses:
Beginning balance$71 $4 $60 $1 $10 $146 
Charge-offs(11)— — — — (11)
Provision(4)— 16 — (2)10 
Ending balance$56 $4 $76 $1 $8 $145 
(1) Includes $3 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
Six Months Ended June 30, 2024
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsTotal
Allowance for credit losses:
Beginning balance$72 $3 $60 $1 $14 $150 
Charge-offs(17)— (25)— — (42)
Provision1 1 41 — (6)37 
Ending balance$56 $4 $76 $1 $8 $145 
(1) Includes $3 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
Three Months Ended June 30, 2023
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateAvailable-for-sale SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$82 $4 $29 $2 $16 $29 $162 
Charge-offs(8)— — — — — (8)
Provision6 (1)8 (2)(1)(28)(18)
Ending balance$80 $3 $37 $— $15 $1 $136 
(1) Includes $2 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
Six Months Ended June 30, 2023
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateAvailable-for-sale SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$73 $5 $19 $2 $23 $(1)$121 
Charge-offs(11)— — — — — (11)
Provision18 (2)18 (2)(8)2 26 
Ending balance$80 $3 $37 $— $15 $1 $136 
(1) Includes $2 million allowance for credit losses on Fund Finance loans and $1 million on other loans.