Loans (Tables)

12 Months Ended

Dec. 31, 2014

Loans and Leases Receivable Disclosure [Line Items]

The Firm’s loan portfolio is divided into three portfolio segments, which are the same segments used by the Firm to determine the allowance for loan losses: Consumer, excluding credit card; Credit card; and Wholesale. Within each portfolio segment, the Firm monitors and assesses the credit risk in the following classes of loans, based on the risk characteristics of each loan class:



Consumer, excluding credit card^(a)	Credit card	Wholesale^(c)
Residential real estate – excluding PCI • Home equity – senior lien • Home equity – junior lien • Prime mortgage, including option ARMs • Subprime mortgage Other consumer loans • Auto^(b) • Business banking^(b) • Student and other Residential real estate – PCI • Home equity • Prime mortgage • Subprime mortgage • Option ARMs	• Credit card loans	• Commercial and industrial • Real estate • Financial institutions • Government agencies • Other^(d)


(a)	Includes loans held in CCB, prime mortgage and home equity loans held in AM and prime mortgage loans held in Corporate.


(b)	Includes certain business banking and auto dealer risk-rated loans that apply the wholesale methodology for determining the allowance for loan losses; these loans are managed by CCB, and therefore, for consistency in presentation, are included with the other consumer loan classes.


(c)	Includes loans held in CIB, CB, AM and Corporate. Excludes prime mortgage and home equity loans held in AM and prime mortgage loans held in Corporate. Classes are internally defined and may not align with regulatory definitions.


(d)	Other primarily includes loans to SPEs and loans to private banking clients. See Note 1 for additional information on SPEs.

Schedule of loans by portfolio segment

The following tables summarize the Firm’s loan balances by portfolio segment.



December 31, 2014	Consumer, excluding credit card			Credit card^(a)			Wholesale			Total
(in millions)	Consumer, excluding credit card			Credit card^(a)			Wholesale			Total
Retained		$	294,979		$	128,027		$	324,502		$	747,508	^(b)
Held-for-sale		395			3,021			3,801			7,217
At fair value		—			—			2,611			2,611
Total		$	295,374		$	131,048		$	330,914		$	757,336

December 31, 2013	Consumer, excluding credit card				Credit card^(a)			Wholesale			Total
(in millions)	Consumer, excluding credit card				Credit card^(a)			Wholesale			Total
Retained		$	288,449		$	127,465		$	308,263		$	724,177	^(b)
Held-for-sale		614			326			11,290			12,230
At fair value		—			—			2,011			2,011
Total		$	289,063		$	127,791		$	321,564		$	738,418


(a)	Includes billed finance charges and fees net of an allowance for uncollectible amounts.


(b)	Loans (other than PCI loans and those for which the fair value option has been elected) are presented net of unearned income, unamortized discounts and premiums, and net deferred loan costs of $1.3 billion and $1.9 billion at December 31, 2014 and 2013, respectively.

Schedule of retained loans purchased, sold and reclassified to held-for-sale

The following tables provide information about the carrying value of retained loans purchased, sold and reclassified to held-for-sale during the periods indicated. These tables exclude loans recorded at fair value. The Firm manages its exposure to credit risk on an ongoing basis. Selling loans is one way that the Firm reduces its credit exposures.



		2014
Year ended December 31, (in millions)	Consumer, excluding credit card				Credit card			Wholesale			Total
Purchases		$	7,434	^(a)(b)		$	—		$	885		$	8,319
Sales		6,655				291			7,381			14,327
Retained loans reclassified to held-for-sale		1,190				3,039			581			4,810



		2013
Year ended December 31, (in millions)	Consumer, excluding credit card				Credit card			Wholesale			Total
Purchases		$	7,616	^(a)(b)		$	328		$	697		$	8,641
Sales		4,845				—			4,232			9,077
Retained loans reclassified to held-for-sale		1,261				309			5,641			7,211



		2012
Year ended December 31, (in millions)	Consumer, excluding credit card				Credit card			Wholesale			Total
Purchases		$	6,601	^(a)(b)		$	—		$	827		$	7,428
Sales		1,852				—			3,423			5,275
Retained loans reclassified to held-for-sale		—				1,043			504			1,547

(a)

Purchases predominantly represent the Firm’s voluntary repurchase of certain delinquent loans from loan pools as permitted by Ginnie Mae guidelines. The Firm typically elects to repurchase these delinquent loans as it continues to service them and/or manage the foreclosure process in accordance with applicable requirements of Ginnie Mae, the Federal Housing Administration (“FHA”), Rural Housing Services (“RHS”) and/or the U.S. Department of Veterans Affairs (“VA”).


(b)	Excluded retained loans purchased from correspondents that were originated in accordance with the Firm’s underwriting standards. Such purchases were $15.1 billion, $5.7 billion and $1.4 billion for the years ended December 31, 2014, 2013 and 2012, respectively.

Schedule of gains/(losses) on loan sales by portfolio segment

The following table provides information about gains and losses, including lower of cost or fair value adjustments, on loan sales by portfolio segment.



Year ended December 31, (in millions)	2014			2013			2012
Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)^(a)
Consumer, excluding credit card	$	341		$	313		$	122
Credit card	(241		)	3			(9		)
Wholesale	101			(76		)	180
Total net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)	$	201		$	240		$	293


(a)	Excludes sales related to loans accounted for at fair value.

Consumer, excluding credit card

Loans and Leases Receivable Disclosure [Line Items]

Schedule of loans by portfolio segment

The table below provides information about retained consumer loans, excluding credit card, by class.



December 31, (in millions)	2014		2013
Residential real estate – excluding PCI
Home equity:
Senior lien	$	16,367	$	17,113
Junior lien	36,375		40,750
Mortgages:
Prime, including option ARMs	104,921		87,162
Subprime	5,056		7,104
Other consumer loans
Auto	54,536		52,757
Business banking	20,058		18,951
Student and other	10,970		11,557
Residential real estate – PCI
Home equity	17,095		18,927
Prime mortgage	10,220		12,038
Subprime mortgage	3,673		4,175
Option ARMs	15,708		17,915
Total retained loans	$	294,979	$	288,449

Consumer, excluding credit card | Residential real estate – excluding PCI

Loans and Leases Receivable Disclosure [Line Items]

Schedule of financing receivable credit quality indicators

The following table provides information by class for residential real estate – excluding retained PCI loans in the consumer, excluding credit card, portfolio segment.

The following factors should be considered in analyzing certain credit statistics applicable to the Firm’s residential real estate – excluding PCI loans portfolio: (i) junior lien home equity loans may be fully charged off when the loan becomes 180 days past due, and the value of the collateral does not support the repayment of the loan, resulting in relatively high charge-off rates for this product class; and (ii) the lengthening of loss-mitigation timelines may result in higher delinquency rates for loans carried at the net realizable value of the collateral that remain on the Firm’s Consolidated balance sheets.



Residential real estate – excluding PCI loans
	Home equity												Mortgages
December 31, (in millions, except ratios)	Senior lien						Junior lien						Prime, including option ARMs						Subprime						Total residential real estate – excluding PCI
	2014			2013			2014			2013			2014			2013			2014			2013			2014			2013
Loan delinquency^(a)
Current	$	15,730		$	16,470		$	35,575		$	39,864		$	93,951		$	76,108		$	4,296		$	5,956		$	149,552		$	138,398
30–149 days past due	275			298			533			662			4,091			3,155			489			646			5,388			4,761
150 or more days past due	362			345			267			224			6,879			7,899			271			502			7,779			8,970
Total retained loans	$	16,367		$	17,113		$	36,375		$	40,750		$	104,921		$	87,162		$	5,056		$	7,104		$	162,719		$	152,129
% of 30+ days past due to total retained loans^(b)	3.89		%	3.76		%	2.20		%	2.17		%	1.42		%	2.32		%	15.03		%	16.16		%	2.27		%	3.09		%
90 or more days past due and still accruing	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—
90 or more days past due and government guaranteed^(c)	—			—			—			—			7,544			7,823			—			—			7,544			7,823
Nonaccrual loans	938			932			1,590			1,876			2,190			2,666			1,036			1,390			5,754			6,864
Current estimated LTV ratios^(d)(e)(f)(g)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	21		$	40		$	467		$	1,101		$	120		$	236		$	10		$	52		$	618		$	1,429
Less than 660	10			22			138			346			103			281			51			197			302			846
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	134			212			3,149			4,645			648			1,210			118			249			4,049			6,316
Less than 660	69			107			923			1,407			340			679			298			597			1,630			2,790
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	633			858			6,481			7,995			3,863			4,749			432			614			11,409			14,216
Less than 660	226			326			1,780			2,128			1,026			1,590			770			1,141			3,802			5,185
Less than 80% and refreshed FICO scores:
Equal to or greater than 660	13,048			13,186			20,030			19,732			81,805			59,634			1,586			1,961			116,469			94,513
Less than 660	2,226			2,362			3,407			3,396			4,906			5,071			1,791			2,293			12,330			13,122
U.S. government-guaranteed	—			—			—			—			12,110			13,712			—			—			12,110			13,712
Total retained loans	$	16,367		$	17,113		$	36,375		$	40,750		$	104,921		$	87,162		$	5,056		$	7,104		$	162,719		$	152,129
Geographic region
California	$	2,232		$	2,397		$	8,144		$	9,240		$	28,133		$	21,876		$	718		$	1,069		$	39,227		$	34,582
New York	2,805			2,732			7,685			8,429			16,550			14,085			677			942			27,717			26,188
Illinois	1,306			1,248			2,605			2,815			6,654			5,216			207			280			10,772			9,559
Florida	861			847			1,923			2,167			5,106			4,598			632			885			8,522			8,497
Texas	1,845			2,044			1,087			1,199			4,935			3,565			177			220			8,044			7,028
New Jersey	654			630			2,233			2,442			3,361			2,679			227			339			6,475			6,090
Arizona	927			1,019			1,595			1,827			1,805			1,385			112			144			4,439			4,375
Washington	506			555			1,216			1,378			2,410			1,951			109			150			4,241			4,034
Michigan	736			799			848			976			1,203			998			121			178			2,908			2,951
Ohio	1,150			1,298			778			907			615			466			112			161			2,655			2,832
All other^(h)	3,345			3,544			8,261			9,370			34,149			30,343			1,964			2,736			47,719			45,993
Total retained loans	$	16,367		$	17,113		$	36,375		$	40,750		$	104,921		$	87,162		$	5,056		$	7,104		$	162,719		$	152,129


(a)	Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $2.6 billion and $4.7 billion; 30–149 days past due included $3.5 billion and $2.4 billion; and 150 or more days past due included $6.0 billion and $6.6 billion at December 31, 2014 and 2013, respectively.


(b)	At December 31, 2014 and 2013, Prime, including option ARMs loans excluded mortgage loans insured by U.S. government agencies of $9.5 billion and $9.0 billion, respectively. These amounts have been excluded from nonaccrual loans based upon the government guarantee.

(c)

These balances, which are 90 days or more past due but insured by U.S. government agencies, are excluded from nonaccrual loans. In predominantly all cases, 100% of the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. These amounts have been excluded from nonaccrual loans based upon the government guarantee. At December 31, 2014 and 2013, these balances included $4.2 billion and $4.7 billion, respectively, of loans that are no longer accruing interest because interest has been curtailed by the U.S. government agencies although, in predominantly all cases, 100% of the principal is still insured. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate.

(d)

Represents the aggregate unpaid principal balance of loans divided by the estimated current property value. Current property values are estimated, at a minimum, quarterly, based on home valuation models using nationally recognized home price index valuation estimates incorporating actual data to the extent available and forecasted data where actual data is not available. These property values do not represent actual appraised loan level collateral values; as such, the resulting ratios are necessarily imprecise and should be viewed as estimates.


(e)	Junior lien represents combined LTV, which considers all available lien positions, as well as unused lines, related to the property. All other products are presented without consideration of subordinate liens on the property.


(f)	Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.


(g)	The prior period prime, including option ARMs have been revised. This revision had no impact on the Firm’s Consolidated balance sheets or its results of operations.


(h)	At December 31, 2014 and 2013, included mortgage loans insured by U.S. government agencies of $12.1 billion and $13.7 billion, respectively.

Schedule of impaired financing receivables

The table below sets forth information about the Firm’s residential real estate impaired loans, excluding PCI loans. These loans are considered to be impaired as they have been modified in a TDR. All impaired loans are evaluated for an asset-specific allowance as described in Note 15.



	Home equity								Mortgages								Total residential real estate – excluding PCI
December 31, (in millions)	Senior lien				Junior lien				Prime, including option ARMs				Subprime				Total residential real estate – excluding PCI
December 31, (in millions)	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013
Impaired loans
With an allowance	$	552	$	567	$	722	$	727	$	4,949	$	5,871	$	2,239	$	2,989	$	8,462	$	10,154
Without an allowance^(a)	549		579		582		592		1,196		1,133		639		709		2,966		3,013
Total impaired loans^(b)(c)	$	1,101	$	1,146	$	1,304	$	1,319	$	6,145	$	7,004	$	2,878	$	3,698	$	11,428	$	13,167
Allowance for loan losses related to impaired loans	$	84	$	94	$	147	$	162	$	127	$	144	$	64	$	94	$	422	$	494
Unpaid principal balance of impaired loans^(d)	1,451		1,515		2,603		2,625		7,813		8,990		4,200		5,461		16,067		18,591
Impaired loans on nonaccrual status^(e)	628		641		632		666		1,559		1,737		931		1,127		3,750		4,171

(a)

Represents collateral-dependent residential mortgage loans that are charged off to the fair value of the underlying collateral less cost to sell. The Firm reports, in accordance with regulatory guidance, residential real estate loans that have been discharged under Chapter 7 bankruptcy and not reaffirmed by the borrower (“Chapter 7 loans”) as collateral-dependent nonaccrual TDRs, regardless of their delinquency status. At December 31, 2014, Chapter 7 residential real estate loans included approximately 19% of senior lien home equity, 12% of junior lien home equity, 25% of prime mortgages, including option ARMs, and 18% of subprime mortgages that were 30 days or more past due.

(b)

At December 31, 2014 and 2013, $4.9 billion and $7.6 billion, respectively, of loans modified subsequent to repurchase from Government National Mortgage Association (“Ginnie Mae”) in accordance with the standards of the appropriate government agency (i.e., FHA, VA, RHS) are not included in the table above. When such loans perform subsequent to modification in accordance with Ginnie Mae guidelines, they are generally sold back into Ginnie Mae loan pools. Modified loans that do not re-perform become subject to foreclosure.


(c)	Predominantly all residential real estate impaired loans, excluding PCI loans, are in the U.S.


(d)	Represents the contractual amount of principal owed at December 31, 2014 and 2013. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs, net deferred loan fees or costs; and unamortized discounts or premiums on purchased loans.


(e)	As of December 31, 2014 and 2013, nonaccrual loans included $2.9 billion and $3.0 billion, respectively, of TDRs for which the borrowers were less than 90 days past due. For additional information about loans modified in a TDR that are on nonaccrual status refer to the Loan accounting framework on pages 238–240 of this Note.

Schedule of impaired financing receivables, average recorded investment

The following table presents average impaired loans and the related interest income reported by the Firm.



Year ended December 31,	Average impaired loans						Interest income on impaired loans^(a)						Interest income on impaired loans on a cash basis^(a)
(in millions)	2014		2013		2012		2014		2013		2012		2014		2013		2012
Home equity
Senior lien	$	1,122	$	1,151	$	610	$	55	$	59	$	27	$	37	$	40	$	12
Junior lien	1,313		1,297		848		82		82		42		53		55		16
Mortgages
Prime, including option ARMs	6,730		7,214		5,989		262		280		238		54		59		28
Subprime	3,444		3,798		3,494		182		200		183		51		55		31
Total residential real estate – excluding PCI	$	12,609	$	13,460	$	10,941	$	581	$	621	$	490	$	195	$	209	$	87


(a)	Generally, interest income on loans modified in TDRs is recognized on a cash basis until such time as the borrower has made a minimum of six payments under the new terms.

Troubled debt restructuring on financing receivables

The following table presents new TDRs reported by the Firm.



Year ended December 31, (in millions)	2014		2013		2012
Home equity:
Senior lien	$	110	$	210	$	835
Junior lien	211		388		711
Mortgages:
Prime, including option ARMs	287		770		2,918
Subprime	124		319		1,043
Total residential real estate – excluding PCI	$	732	$	1,687	$	5,507

Troubled debt restructuring on financing receivables nature and extent of modifications

The following table provides information about how residential real estate loans, excluding PCI loans, were modified under the Firm’s loss mitigation programs during the periods presented. This table excludes Chapter 7 loans where the sole concession granted is the discharge of debt.



Year ended Dec. 31,	Home equity												Mortgages												Total residential real estate - excluding PCI
	Senior lien						Junior lien						Prime, including option ARMs						Subprime						Total residential real estate - excluding PCI
	2014		2013		2012		2014		2013		2012		2014		2013		2012		2014		2013		2012		2014		2013		2012
Number of loans approved for a trial modification	939		1,719		1,695		626		884		918		1,052		2,846		3,895		2,056		4,233		4,841		4,673		9,682		11,349
Number of loans permanently modified	1,171		1,765		4,385		2,813		5,040		7,430		2,507		4,356		9,043		3,141		5,364		9,964		9,632		16,525		30,822
Concession granted:^(a)
Interest rate reduction	53	%	70	%	83	%	84	%	88	%	88	%	43	%	73	%	74	%	47	%	72	%	69	%	58	%	77	%	77	%
Term or payment extension	67		76		47		83		80		76		51		73		57		53		56		41		63		70		55
Principal and/or interest deferred	16		12		6		23		24		17		19		30		16		12		13		7		18		21		12
Principal forgiveness	36		38		11		22		32		23		51		38		29		53		48		42		41		39		29
Other^(b)	—		—		—		—		—		—		10		23		29		10		14		8		6		11		11


(a)	Represents concessions granted in permanent modifications as a percentage of the number of loans permanently modified. The sum of the percentages exceeds 100% because predominantly all of the modifications include more than one type of concession. A significant portion of trial modifications include interest rate reductions and/or term or payment extensions.


(b)	Represents variable interest rate to fixed interest rate modifications.

Troubled debt restructuring on financing receivables, financial effects of modifications and re-defaults

The following table provides information about the financial effects of the various concessions granted in modifications of residential real estate loans, excluding PCI, under the Firm’s loss mitigation programs and about redefaults of certain loans modified in TDRs for the periods presented. Because the specific types and amounts of concessions offered to borrowers frequently change between the trial modification and the permanent modification, the following table presents only the financial effects of permanent modifications. This table also excludes Chapter 7 loans where the sole concession granted is the discharge of debt.



Year ended December 31, (in millions, except weighted-average data and number of loans)	Home equity																		Mortgages																		Total residential real estate – excluding PCI
	Senior lien									Junior lien									Prime, including option ARMs									Subprime									Total residential real estate – excluding PCI
	2014			2013			2012			2014			2013			2012			2014			2013			2012			2014			2013			2012			2014			2013			2012
Weighted-average interest rate of loans with interest rate reductions – before TDR	6.38		%	6.35		%	7.20		%	4.81		%	5.05		%	5.45		%	4.82		%	5.28		%	6.14		%	7.16		%	7.33		%	7.73		%	5.61		%	5.88		%	6.57		%
Weighted-average interest rate of loans with interest rate reductions – after TDR	3.03			3.23			4.61			2.00			2.14			1.94			2.69			2.77			3.67			3.37			3.52			4.14			2.78			2.92			3.69
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	17			19			18			19			20			20			25			25			25			24			24			24			23			23			24
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	30			31			28			35			34			32			37			37			36			36			35			32			36			36			34
Charge-offs recognized upon permanent modification	$	2		$	7		$	8		$	25		$	70		$	65		$	9		$	16		$	35		$	3		$	5		$	29		$	39		$	98		$	137
Principal deferred	5			7			4			11			24			23			39			129			133			19			43			43			74			203			203
Principal forgiven	14			30			20			21			51			58			83			206			249			89			218			324			207			505			651
Balance of loans that redefaulted within one year of permanent modification^(a)	$	19		$	26		$	30		$	10		$	20		$	46		$	121		$	164		$	255		$	93		$	106		$	156		$	243		$	316		$	487

(a)

Represents loans permanently modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The dollar amounts presented represent the balance of such loans at the end of the reporting period in which such loans defaulted. For residential real estate loans modified in TDRs, payment default is deemed to occur when the loan becomes two contractual payments past due. In the event that a modified loan redefaults, it is probable that the loan will ultimately be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last 12 months may not be representative of ultimate redefault levels.

Consumer, excluding credit card | Home equity - junior lien

Loans and Leases Receivable Disclosure [Line Items]

Schedule of financing receivable credit quality indicators

The following tables represent the Firm’s delinquency statistics for junior lien home equity loans and lines as of December 31, 2014 and 2013.



	Delinquencies								Total 30+ day delinquency rate
December 31, 2014	30–89 days past due		90–149 days past due		150+ days past due		Total loans
(in millions, except ratios)	30–89 days past due		90–149 days past due		150+ days past due		Total loans
HELOCs:^(a)
Within the revolving period^(b)	$	233	$	69	$	141	$	25,252	1.75	%
Beyond the revolving period	108		37		107		7,979		3.16
HELOANs	66		20		19		3,144		3.34
Total	$	407	$	126	$	267	$	36,375	2.20	%



	Delinquencies								Total 30+ day delinquency rate
December 31, 2013	30–89 days past due		90–149 days past due		150+ days past due		Total loans
(in millions, except ratios)	30–89 days past due		90–149 days past due		150+ days past due		Total loans
HELOCs:^(a)
Within the revolving period^(b)	$	341	$	104	$	162	$	31,848	1.91	%
Beyond the revolving period	84		21		46		4,980		3.03
HELOANs	86		26		16		3,922		3.26
Total	$	511	$	151	$	224	$	40,750	2.17	%

(a) These HELOCs are predominantly revolving loans for a 10-year period, after which time the HELOC converts to a loan with a 20-year amortization period, but also include HELOCs originated by Washington Mutual that require interest-only payments beyond the revolving period.

(b) The Firm manages the risk of HELOCs during their revolving period by closing or reducing the undrawn line to the extent permitted by law when borrowers are experiencing financial difficulty or when the collateral does not support the loan amount.

Consumer, excluding credit card | Other Consumer

Loans and Leases Receivable Disclosure [Line Items]

Schedule of financing receivable credit quality indicators

The table below provides information for other consumer retained loan classes, including auto, business banking and student loans.



December 31, (in millions, except ratios)	Auto						Business banking						Student and other								Total other consumer
December 31, (in millions, except ratios)	2014			2013			2014			2013			2014				2013				2014				2013
Loan delinquency^(a)
Current	$	53,866		$	52,152		$	19,710		$	18,511		$	10,080			$	10,529			$	83,656			$	81,192
30–119 days past due	663			599			208			280			576				660				1,447				1,539
120 or more days past due	7			6			140			160			314				368				461				534
Total retained loans	$	54,536		$	52,757		$	20,058		$	18,951		$	10,970			$	11,557			$	85,564			$	83,265
% of 30+ days past due to total retained loans	1.23		%	1.15		%	1.73		%	2.32		%	2.15		%	^(d)	2.52		%	^(d)	1.47		%	^(d)	1.60		%	^(d)
90 or more days past due and still accruing^(b)	$	—		$	—		$	—		$	—		$	367			$	428			$	367			$	428
Nonaccrual loans	115			161			279			385			270				86				664				632
Geographic region
California	$	6,294		$	5,615		$	3,008		$	2,374		$	1,143			$	1,112			$	10,445			$	9,101
New York	3,662			3,898			3,187			3,084			1,259				1,218				8,108				8,200
Illinois	3,175			2,917			1,373			1,341			729				740				5,277				4,998
Florida	2,301			2,012			827			646			521				539				3,649				3,197
Texas	5,608			5,310			2,626			2,646			868				878				9,102				8,834
New Jersey	1,945			2,014			451			392			378				397				2,774				2,803
Arizona	2,003			1,855			1,083			1,046			239				252				3,325				3,153
Washington	1,019			950			258			234			235				227				1,512				1,411
Michigan	1,633			1,902			1,375			1,383			466				513				3,474				3,798
Ohio	2,157			2,229			1,354			1,316			629				708				4,140				4,253
All other	24,739			24,055			4,516			4,489			4,503				4,973				33,758				33,517
Total retained loans	$	54,536		$	52,757		$	20,058		$	18,951		$	10,970			$	11,557			$	85,564			$	83,265
Loans by risk ratings^(c)
Noncriticized	$	9,822		$	9,968		$	14,619		$	13,622		NA				NA				$	24,441			$	23,590
Criticized performing	35			54			708			711			NA				NA				743				765
Criticized nonaccrual	—			38			213			316			NA				NA				213				354


(a)	Individual delinquency classifications included loans insured by U.S. government agencies under the Federal Family Education Loan Program (“FFELP”) as follows: current included $4.3 billion and $4.9 billion; 30-119 days past due included $364 million and $387 million; and 120 or more days past due included $290 million and $350 million at December 31, 2014 and 2013, respectively.


(b)	These amounts represent student loans, which are insured by U.S. government agencies under the FFELP. These amounts were accruing as reimbursement of insured amounts is proceeding normally.


(c)	For risk-rated business banking and auto loans, the primary credit quality indicator is the risk rating of the loan, including whether the loans are considered to be criticized and/or nonaccrual.


(d)	December 31, 2014 and 2013, excluded loans 30 days or more past due and still accruing, which are insured by U.S. government agencies under the FFELP, of $654 million and $737 million, respectively. These amounts were excluded as reimbursement of insured amounts is proceeding normally.

Schedule of impaired financing receivables

The table below sets forth information about the Firm’s other consumer impaired loans, including risk-rated business banking and auto loans that have been placed on nonaccrual status, and loans that have been modified in TDRs.



December 31, (in millions)	2014		2013
Impaired loans
With an allowance	$	557	$	571
Without an allowance^(a)	35		47
Total impaired loans^(b)(c)	$	592	$	618
Allowance for loan losses related to impaired loans	$	117	$	107
Unpaid principal balance of impaired loans^(d)	719		788
Impaired loans on nonaccrual status	456		441


(a)	When discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged off and/or there have been interest payments received and applied to the loan balance.


(b)	Predominantly all other consumer impaired loans are in the U.S.


(c)	Other consumer average impaired loans were $599 million, $648 million and $733 million for the years ended December 31, 2014, 2013 and 2012, respectively. The related interest income on impaired loans, including those on a cash basis, was not material for the years ended December 31, 2014, 2013 and 2012.


(d)	Represents the contractual amount of principal owed at December 31, 2014 and 2013. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs; interest payments received and applied to the principal balance; net deferred loan fees or costs; and unamortized discounts or premiums on purchased loans.

Troubled debt restructuring on financing receivables

The following table provides information about the Firm’s other consumer loans modified in TDRs. All of these TDRs are reported as impaired loans in the tables above.



December 31, (in millions)	2014		2013
Loans modified in troubled debt restructurings^(a)(b)	$	442	$	378
TDRs on nonaccrual status	306		201


(a)	The impact of these modifications was not material to the Firm for the years ended December 31, 2014 and 2013.


(b)	Additional commitments to lend to borrowers whose loans have been modified in TDRs as of December 31, 2014 and 2013 were immaterial.

Consumer, excluding credit card | Purchased Credit-Impaired

Loans and Leases Receivable Disclosure [Line Items]

Schedule of financing receivable credit quality indicators

The table below sets forth information about the Firm’s consumer, excluding credit card, PCI loans.



December 31, (in millions, except ratios)	Home equity						Prime mortgage						Subprime mortgage						Option ARMs						Total PCI
	2014			2013			2014			2013			2014			2013			2014			2013			2014			2013
Carrying value^(a)	$	17,095		$	18,927		$	10,220		$	12,038		$	3,673		$	4,175		$	15,708		$	17,915		$	46,696		$	53,055
Related allowance for loan losses^(b)	1,758			1,758			1,193			1,726			180			180			194			494			3,325			4,158
Loan delinquency (based on unpaid principal balance)
Current	$	16,295		$	18,135		$	8,912		$	10,118		$	3,565		$	4,012		$	13,814		$	15,501		$	42,586		$	47,766
30–149 days past due	445			583			500			589			536			662			858			1,006			2,339			2,840
150 or more days past due	1,000			1,112			837			1,169			551			797			1,824			2,716			4,212			5,794
Total loans	$	17,740		$	19,830		$	10,249		$	11,876		$	4,652		$	5,471		$	16,496		$	19,223		$	49,137		$	56,400
% of 30+ days past due to total loans	8.15		%	8.55		%	13.05		%	14.80		%	23.37		%	26.67		%	16.26		%	19.36		%	13.33		%	15.31		%
Current estimated LTV ratios (based on unpaid principal balance)^(c)(d)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	513		$	1,168		$	45		$	240		$	34		$	115		$	89		$	301		$	681		$	1,824
Less than 660	273			662			97			290			160			459			150			575			680			1,986
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	2,245			3,248			456			1,017			215			316			575			1,164			3,491			5,745
Less than 660	1,073			1,541			402			884			509			919			771			1,563			2,755			4,907
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	4,171			4,473			2,154			2,787			519			544			2,418			3,311			9,262			11,115
Less than 660	1,647			1,782			1,316			1,699			1,006			1,197			1,996			2,769			5,965			7,447
Lower than 80% and refreshed FICO scores:
Equal to or greater than 660	5,824			5,077			3,663			2,897			719			521			6,593			5,671			16,799			14,166
Less than 660	1,994			1,879			2,116			2,062			1,490			1,400			3,904			3,869			9,504			9,210
Total unpaid principal balance	$	17,740		$	19,830		$	10,249		$	11,876		$	4,652		$	5,471		$	16,496		$	19,223		$	49,137		$	56,400
Geographic region (based on unpaid principal balance)
California	$	10,671		$	11,937		$	5,965		$	6,845		$	1,138		$	1,293		$	9,190		$	10,419		$	26,964		$	30,494
New York	876			962			672			807			463			563			933			1,196			2,944			3,528
Illinois	405			451			301			353			229			283			397			481			1,332			1,568
Florida	1,696			1,865			689			826			432			526			1,440			1,817			4,257			5,034
Texas	273			327			92			106			281			328			85			100			731			861
New Jersey	348			381			279			334			165			213			553			701			1,345			1,629
Arizona	323			361			167			187			85			95			227			264			802			907
Washington	959			1,072			225			266			95			112			395			463			1,674			1,913
Michigan	53			62			166			189			130			145			182			206			531			602
Ohio	20			23			48			55			72			84			69			75			209			237
All other	2,116			2,389			1,645			1,908			1,562			1,829			3,025			3,501			8,348			9,627
Total unpaid principal balance	$	17,740		$	19,830		$	10,249		$	11,876		$	4,652		$	5,471		$	16,496		$	19,223		$	49,137		$	56,400


(a)	Carrying value includes the effect of fair value adjustments that were applied to the consumer PCI portfolio at the date of acquisition.


(b)	Management concluded as part of the Firm’s regular assessment of the PCI loan pools that it was probable that higher expected credit losses would result in a decrease in expected cash flows. As a result, an allowance for loan losses for impairment of these pools has been recognized.

(c)


(d)	Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.

Certain loans acquired in transfer accretable yield movement roll forward

The table below sets forth the accretable yield activity for the Firm’s PCI consumer loans for the years ended December 31, 2014, 2013 and 2012, and represents the Firm’s estimate of gross interest income expected to be earned over the remaining life of the PCI loan portfolios. The table excludes the cost to fund the PCI portfolios, and therefore the accretable yield does not represent net interest income expected to be earned on these portfolios.



Year ended December 31, (in millions, except ratios)	Total PCI
Year ended December 31, (in millions, except ratios)	2014			2013			2012
Beginning balance	$	16,167		$	18,457		$	19,072
Accretion into interest income	(1,934		)	(2,201		)	(2,491		)
Changes in interest rates on variable-rate loans	(174		)	(287		)	(449		)
Other changes in expected cash flows^(a)	533			198			2,325
Balance at December 31	$	14,592		$	16,167		$	18,457
Accretable yield percentage	4.19		%	4.31		%	4.38		%

(a)

Other changes in expected cash flows may vary from period to period as the Firm continues to refine its cash flow model and periodically updates model assumptions. For the year ended December 31, 2014, other changes in expected cash flows were driven by changes in prepayment assumptions. For the year ended December 31, 2013, other changes in expected cash flows were due to refining the expected interest cash flows on HELOCs with balloon payments, partially offset by changes in prepayment assumptions. For the year ended December 31, 2012, other changes in expected cash flows were principally driven by the impact of modifications, but also related to changes in prepayment assumptions.

Consumer, excluding credit card | Purchased Credit-Impaired, Home Equity Junior Lien

Loans and Leases Receivable Disclosure [Line Items]

Schedule of financing receivable credit quality indicators

The following tables set forth delinquency statistics for PCI junior lien home equity loans and lines of credit based on unpaid principal balance as of December 31, 2014 and 2013.



	Delinquencies								Total 30+ day delinquency rate
December 31, 2014	30–89 days past due		90–149 days past due		150+ days past due		Total loans
(in millions, except ratios)	30–89 days past due		90–149 days past due		150+ days past due		Total loans
HELOCs:^(a)
Within the revolving period^(b)	$	155	$	50	$	371	$	8,972	6.42	%
Beyond the revolving period^(c)	76		24		166		4,143		6.42
HELOANs	20		7		38		736		8.83
Total	$	251	$	81	$	575	$	13,851	6.55	%



	Delinquencies								Total 30+ day delinquency rate
December 31, 2013	30–89 days past due		90–149 days past due		150+ days past due		Total loans
(in millions, except ratios)	30–89 days past due		90–149 days past due		150+ days past due
HELOCs:^(a)
Within the revolving period^(b)	$	243	$	88	$	526	$	12,670	6.76	%
Beyond the revolving period^(c)	54		21		82		2,336		6.72
HELOANs	24		11		39		908		8.15
Total	$	321	$	120	$	647	$	15,914	6.84	%


(a)	In general, these HELOCs are revolving loans for a 10-year period, after which time the HELOC converts to an interest-only loan with a balloon payment at the end of the loan’s term.


(b)	Substantially all undrawn HELOCs within the revolving period have been closed.


(c)	Includes loans modified into fixed-rate amortizing loans.

Credit card

Loans and Leases Receivable Disclosure [Line Items]

Schedule of financing receivable credit quality indicators

The table below sets forth information about the Firm’s credit card loans.



As of or for the year ended December 31, (in millions, except ratios)	2014			2013
Net charge-offs	$	3,429		$	3,879
% of net charge-offs to retained loans	2.75		%	3.14		%
Loan delinquency
Current and less than 30 days past due and still accruing	$	126,189		$	125,335
30–89 days past due and still accruing	943			1,108
90 or more days past due and still accruing	895			1,022
Nonaccrual loans	—			—
Total retained credit card loans	$	128,027		$	127,465
Loan delinquency ratios
% of 30+ days past due to total retained loans	1.44		%	1.67		%
% of 90+ days past due to total retained loans	0.70			0.80
Credit card loans by geographic region
California	$	17,940		$	17,194
Texas	11,088			10,400
New York	10,940			10,497
Illinois	7,497			7,412
Florida	7,398			7,178
New Jersey	5,750			5,554
Ohio	4,707			4,881
Pennsylvania	4,489			4,462
Michigan	3,552			3,618
Virginia	3,263			3,239
All other	51,403			53,030
Total retained credit card loans	$	128,027		$	127,465
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660	85.7		%	85.1		%
Less than 660	14.3			14.9

Schedule of impaired financing receivables

The table below sets forth information about the Firm’s impaired credit card loans. All of these loans are considered to be impaired as they have been modified in TDRs.



December 31, (in millions)	2014		2013
Impaired credit card loans with an allowance^(a)(b)
Credit card loans with modified payment terms^(c)	$	1,775	$	2,746
Modified credit card loans that have reverted to pre-modification payment terms^(d)	254		369
Total impaired credit card loans^(e)	$	2,029	$	3,115
Allowance for loan losses related to impaired credit card loans	$	500	$	971


(a)	The carrying value and the unpaid principal balance are the same for credit card impaired loans.


(b)	There were no impaired loans without an allowance.


(c)	Represents credit card loans outstanding to borrowers enrolled in a credit card modification program as of the date presented.

(d)

Represents credit card loans that were modified in TDRs but that have subsequently reverted back to the loans’ pre-modification payment terms. At December 31, 2014 and 2013, $159 million and $226 million, respectively, of loans have reverted back to the pre-modification payment terms of the loans due to noncompliance with the terms of the modified loans. The remaining $95 million and $143 million at December 31, 2014 and 2013, respectively, of these loans are to borrowers who have successfully completed a short-term modification program. The Firm continues to report these loans as TDRs since the borrowers’ credit lines remain closed.


(e)	Predominantly all impaired credit card loans are in the U.S.

Schedule of impaired financing receivables, average recorded investment

The following table presents average balances of impaired credit card loans and interest income recognized on those loans.



Year ended December 31, (in millions)	2014		2013		2012
Average impaired credit card loans	$	2,503	$	3,882	$	5,893
Interest income on impaired credit card loans	123		198		308

Troubled debt restructuring on financing receivables, financial effects of modifications and re-defaults

The following table provides information about the financial effects of the concessions granted on credit card loans modified in TDRs and redefaults for the periods presented.



Year ended December 31, (in millions, except weighted-average data)	2014			2013			2012
Weighted-average interest rate of loans – before TDR	14.96		%	15.37		%	15.67		%
Weighted-average interest rate of loans – after TDR	4.40			4.38			5.19
Loans that redefaulted within one year of modification^(a)	$	119		$	167		$	309


(a)	Represents loans modified in TDRs that experienced a payment default in the periods presented, and for which the payment default occurred within one year of the modification. The amounts presented represent the balance of such loans as of the end of the quarter in which they defaulted

Wholesale

Loans and Leases Receivable Disclosure [Line Items]

Schedule of financing receivable credit quality indicators

The table below provides information by class of receivable for the retained loans in the Wholesale portfolio segment.



As of or for the year ended December 31, (in millions, except ratios)	Commercial and industrial						Real estate						Financial institutions						Government agencies						Other^(d)						Total retained loans
	2014			2013			2014			2013			2014			2013			2014			2013			2014			2013			2014			2013
Loans by risk ratings
Investment grade	$	63,069		$	57,690		$	61,006		$	52,195		$	27,111		$	26,712		$	8,393		$	9,979		$	82,087		$	79,494		$	241,666		$	226,070
Noninvestment grade:
Noncriticized	44,117			43,477			16,541			14,381			7,085			6,674			300			440			10,075			10,992			78,118			75,964
Criticized performing	2,251			2,385			1,313			2,229			316			272			3			42			236			480			4,119			5,408
Criticized nonaccrual	188			294			253			346			18			25			—			1			140			155			599			821
Total noninvestment grade	46,556			46,156			18,107			16,956			7,419			6,971			303			483			10,451			11,627			82,836			82,193
Total retained loans	$	109,625		$	103,846		$	79,113		$	69,151		$	34,530		$	33,683		$	8,696		$	10,462		$	92,538		$	91,121		$	324,502		$	308,263
% of total criticized to total retained loans	2.22		%	2.58		%	1.98		%	3.72		%	0.97		%	0.88		%	0.03		%	0.41		%	0.41		%	0.70		%	1.45		%	2.02		%
% of nonaccrual loans to total retained loans	0.17			0.28			0.32			0.50			0.05			0.07			—			0.01			0.15			0.17			0.18			0.27
Loans by geographic distribution^(a)
Total non-U.S.	$	33,739		$	34,440		$	2,099		$	1,369		$	20,944		$	22,726		$	1,122		$	2,146		$	42,961		$	43,376		$	100,865		$	104,057
Total U.S.	75,886			69,406			77,014			67,782			13,586			10,957			7,574			8,316			49,577			47,745			223,637			204,206
Total retained loans	$	109,625		$	103,846		$	79,113		$	69,151		$	34,530		$	33,683		$	8,696		$	10,462		$	92,538		$	91,121		$	324,502		$	308,263

Net charge-offs/(recoveries)	$	22		$	99		$	(9	)	$	6		$	(12	)	$	(99	)	$	25		$	1		$	(14	)	$	9		$	12		$	16
% of net charge-offs/(recoveries) to end-of-period retained loans	0.02		%	0.10		%	(0.01		)%	0.01		%	(0.04		)%	(0.29		)%	0.29		%	0.01		%	(0.02		)%	0.01		%	—		%	0.01		%

Loan delinquency^(b)
Current and less than 30 days past due and still accruing	$	108,857		$	103,357		$	78,552		$	68,627		$	34,408		$	33,426		$	8,627		$	10,421		$	91,168		$	89,717		$	321,612		$	305,548
30–89 days past due and still accruing	566			181			275			164			104			226			69			40			1,201			1,233			2,215			1,844
90 or more days past due and still accruing^(c)	14			14			33			14			—			6			—			—			29			16			76			50
Criticized nonaccrual	188			294			253			346			18			25			—			1			140			155			599			821
Total retained loans	$	109,625		$	103,846		$	79,113		$	69,151		$	34,530		$	33,683		$	8,696		$	10,462		$	92,538		$	91,121		$	324,502		$	308,263


(a)	The U.S. and non-U.S. distribution is determined based predominantly on the domicile of the borrower.


(b)	The credit quality of wholesale loans is assessed primarily through ongoing review and monitoring of an obligor’s ability to meet contractual obligations rather than relying on the past due status, which is generally a lagging indicator of credit quality. For a discussion of more significant risk factors, see pages 255–256 of this Note.


(c)	Represents loans that are considered well-collateralized and therefore still accruing interest.


(d)	Other primarily includes loans to SPEs and loans to private banking clients. See Note 1 for additional information on SPEs.

Schedule of impaired financing receivables

The table below sets forth information about the Firm’s wholesale impaired loans.



December 31, (in millions)	Commercial and industrial				Real estate				Financial institutions				Government agencies				Other				Total retained loans
December 31, (in millions)	2014		2013		2014		2013		2014		2013		2014		2013		2014		2013		2014			2013
Impaired loans
With an allowance	$	174	$	236	$	193	$	258	$	15	$	17	$	—	$	1	$	89	$	85	$	471		$	597
Without an allowance^(a)	24		58		87		109		3		8		—		—		52		73		166			248
Total impaired loans	$	198	$	294	$	280	$	367	$	18	$	25	$	—	$	1	$	141	$	158	$	637	^(c)	$	845	^(c)
Allowance for loan losses related to impaired loans	$	34	$	75	$	36	$	63	$	4	$	16	$	—	$	—	$	13	$	27	$	87		$	181
Unpaid principal balance of impaired loans^(b)	266		448		345		454		22		24		—		1		202		241		835			1,168


(a)	When the discounted cash flows, collateral value or market price equals or exceeds the recorded investment in the loan, the loan does not require an allowance. This typically occurs when the impaired loans have been partially charged-off and/or there have been interest payments received and applied to the loan balance.


(b)	Represents the contractual amount of principal owed at December 31, 2014 and 2013. The unpaid principal balance differs from the impaired loan balances due to various factors, including charge-offs; interest payments received and applied to the carrying value; net deferred loan fees or costs; and unamortized discount or premiums on purchased loans.


(c)	Based upon the domicile of the borrower, predominantly all wholesale impaired loans are in the U.S.

Schedule of impaired financing receivables, average recorded investment

The following table presents the Firm’s average impaired loans for the years ended 2014, 2013 and 2012.



Year ended December 31, (in millions)	2014		2013		2012
Commercial and industrial	$	243	$	412	$	873
Real estate	297		484		784
Financial institutions	20		17		17
Government agencies	—		—		9
Other	155		211		277
Total^(a)	$	715	$	1,124	$	1,960


(a)	The related interest income on accruing impaired loans and interest income recognized on a cash basis were not material for the years ended December 31, 2014, 2013 and 2012.

Wholesale | Real estate

Loans and Leases Receivable Disclosure [Line Items]

Schedule of financing receivable credit quality indicators

The following table presents additional information on the real estate class of loans within the Wholesale portfolio segment for the periods indicated. The real estate class primarily consists of secured commercial loans mainly to borrowers for multi-family and commercial lessor properties. Multifamily lending specifically finances apartment buildings. Commercial lessors receive financing specifically for real estate leased to retail, office and industrial tenants. Commercial construction and development loans represent financing for the construction of apartments, office and professional buildings and malls. Other real estate loans include lodging, real estate investment trusts (“REITs”), single-family, homebuilders and other real estate.



December 31, (in millions, except ratios)	Multifamily						Commercial lessors						Commercial construction and development						Other						Total real estate loans
December 31, (in millions, except ratios)	2014			2013			2014			2013			2014			2013			2014			2013			2014			2013
Real estate retained loans	$	51,049		$	44,389		$	17,438		$	15,949		$	4,264		$	3,674		$	6,362		$	5,139		$	79,113		$	69,151
Criticized	652			1,142			841			1,323			42			81			31			29			1,566			2,575
% of criticized to total real estate retained loans	1.28		%	2.57		%	4.82		%	8.30		%	0.98		%	2.20		%	0.49		%	0.56		%	1.98		%	3.72		%
Criticized nonaccrual	$	126		$	191		$	110		$	143		$	—		$	3		$	17		$	9		$	253		$	346
% of criticized nonaccrual to total real estate retained loans	0.25		%	0.43		%	0.63		%	0.90		%	—		%	0.08		%	0.27		%	0.18		%	0.32		%	0.50		%