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Loans (Tables)
 12 Months Ended
Dec. 31, 2016
Receivables [Abstract]  
Loan portfolio segment descriptions
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(f)
Residential real estate – excluding PCI
• Home equity(b)
• Residential mortgage(c)
Other consumer loans
• Auto(d)
• Business banking(d)(e)
• 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(g)
(a)
Includes loans held in CCB, prime mortgage and home equity loans held in AWM and prime mortgage loans held in Corporate.
(b)
Includes senior and junior lien home equity loans.
(c)
Includes prime (including option ARMs) and subprime loans.
(d)
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.
(e)
Predominantly includes Business Banking loans as well as deposit overdrafts.
(f)
Includes loans held in CIB, CB, AWM and Corporate. Excludes prime mortgage and home equity loans held in AWM and prime mortgage loans held in Corporate. Classes are internally defined and may not align with regulatory definitions.
(g)
Includes loans to: individuals; SPEs; holding companies; and private education and civic organizations. For more information on exposures to SPEs, see Note 16.
Schedule of loans by portfolio segment
The following tables summarize the Firm’s loan balances by portfolio segment.
December 31, 2016
Consumer, excluding credit card
Credit card(a)
Wholesale
Total
 
(in millions)
 
Retained
 
$
364,406

 
 
$
141,711

 
 
$
383,790

 
 
$
889,907

(b) 
Held-for-sale
 
238

 
 
105

 
 
2,285

 
 
2,628

 
At fair value
 
—

 
 
—

 
 
2,230

 
 
2,230

 
Total
 
$
364,644

 
 
$
141,816

 
 
$
388,305

 
 
$
894,765

 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
Consumer, excluding credit card
 
Credit card(a)
 
 
Wholesale
 
 
Total
 
(in millions)
 
Retained
 
$
344,355

 
 
$
131,387

 
 
$
357,050

 
 
$
832,792

(b) 
Held-for-sale
 
466

 
 
76

 
 
1,104

 
 
1,646

 
At fair value
 
—

 
 
—

 
 
2,861

 
 
2,861

 
Total
 
$
344,821

 
 
$
131,463

 
 
$
361,015

 
 
$
837,299

 
(a)
Includes billed interest and fees net of an allowance for uncollectible interest and fees.
(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. These amounts were not material as of December 31, 2016 and 2015.

The table below provides information about retained consumer loans, excluding credit card, by class.
December 31, (in millions)
2016

2015

Residential real estate – excluding PCI
 
 
Home equity
$
39,063

$
45,559

Residential mortgage
192,163

166,239

Other consumer loans
 
 
Auto
65,814

60,255

Business banking
22,698

21,208

Student and other
8,989

10,096

Residential real estate – PCI
 
 
Home equity
12,902

14,989

Prime mortgage
7,602

8,893

Subprime mortgage
2,941

3,263

Option ARMs
12,234

13,853

Total retained loans
$
364,406

$
344,355
Schedule of retained loans purchased, sold and reclassified to held-for-sale
The Firm manages its exposure to credit risk on an ongoing basis. Selling loans is one way that the Firm reduces its credit exposures.
 
 
 
2016
Year ended December 31,
(in millions)
 
Consumer, excluding
credit card
Credit card
Wholesale
Total
Purchases
 
 
$
4,116

(a)(b) 
 
$
—

 
 
$
1,448

 
 
$
5,564

Sales
 
 
6,368

 
 
—

 
 
8,739

 
 
15,107

Retained loans reclassified to held-for-sale
 
 
321

 
 
—

 
 
2,381

 
 
2,702

 
 
 
2015
Year ended December 31,
(in millions)
 
Consumer, excluding
credit card
Credit card
Wholesale
Total
Purchases
 
 
$
5,279

(a)(b) 
 
$
—

 
 
$
2,154

 
 
$
7,433

Sales
 
 
5,099

 
 
—

 
 
9,188

 
 
14,287

Retained loans reclassified to held-for-sale
 
 
1,514

 
 
79

 
 
642

 
 
2,235

 
 
 
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

 
 
—

 
 
7,381

 
 
14,036

Retained loans reclassified to held-for-sale
 
 
1,190

 
 
3,039

 
 
581

 
 
4,810

(a)
Purchases predominantly represent the Firm’s voluntary repurchase of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“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, FHA, RHS, and/or VA.
(b)
Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards. Such purchases were $30.4 billion, $50.3 billion and $15.1 billion for the years ended December 31, 2016, 2015 and 2014, 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)
2016
2015
2014
Net gains/(losses) on sales of loans (including lower of cost or fair value adjustments)(a)
 
 
 
Consumer, excluding credit card
$
231

$
305

$
341

Credit card
(12
)
1

(241
)
Wholesale
26

34

101

Total net gains on sales of loans (including lower of cost or fair value adjustments)
$
245

$
340

$
201

(a)
Excludes sales related to loans accounted for at fair value.
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
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
Loan delinquency(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
65,029

 
$
59,442

 
$
22,312

 
$
20,887

 
$
8,397

 
$
9,405

 
$
95,738

 
$
89,734

 
30–119 days past due
773

 
804

 
247

 
215

 
374

 
445

 
1,394

 
1,464

 
120 or more days past due
12

 
9

 
139

 
106

 
218

 
246

 
369

 
361

 
Total retained loans
$
65,814

 
$
60,255

 
$
22,698

 
$
21,208

 
$
8,989

 
$
10,096

 
$
97,501

 
$
91,559

 
% of 30+ days past due to total retained loans
1.19
%
 
1.35
%
 
1.70
%
 
1.51
%
 
1.38
%
(d) 
1.63
%
(d) 
1.33
%
(d) 
1.42
%
(d) 
90 or more days past due and still accruing (b)
$
—

 
$
—

 
$
—

 
$
—

 
$
263

 
$
290

 
$
263

 
$
290

 
Nonaccrual loans
214

 
116

 
286

 
263

 
175

 
242

 
675

 
621

 
Geographic region
 
 
 
 
 
 
 
 
 
California
$
7,975

 
$
7,186

 
$
4,158

 
$
3,530

 
$
935

 
$
1,051

 
$
13,068

 
$
11,767

 
Texas
7,041

 
6,457

 
2,769

 
2,622

 
739

 
839

 
10,549

 
9,918

 
New York
4,078

 
3,874

 
3,510

 
3,359

 
1,187

 
1,224

 
8,775

 
8,457

 
Illinois
3,984

 
3,678

 
1,627

 
1,459

 
582

 
679

 
6,193

 
5,816

 
Florida
3,374

 
2,843

 
1,068

 
941

 
475

 
516

 
4,917

 
4,300

 
Ohio
2,194

 
2,340

 
1,366

 
1,363

 
490

 
559

 
4,050

 
4,262

 
Arizona
2,209

 
2,033

 
1,270

 
1,205

 
202

 
236

 
3,681

 
3,474

 
Michigan
1,567

 
1,550

 
1,308

 
1,361

 
355

 
415

 
3,230

 
3,326

 
New Jersey
2,031

 
1,998

 
546

 
500

 
320

 
366

 
2,897

 
2,864

 
Louisiana
1,814

 
1,713

 
961

 
997

 
120

 
134

 
2,895

 
2,844

 
All other
29,547

 
26,583

 
4,115

 
3,871

 
3,584

 
4,077

 
37,246

 
34,531

 
Total retained loans
$
65,814

 
$
60,255

 
$
22,698

 
$
21,208

 
$
8,989

 
$
10,096

 
$
97,501

 
$
91,559

 
Loans by risk ratings(c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncriticized
$
13,899

 
$
11,277

 
$
16,858

 
$
15,505

 
NA

 
NA

 
$
30,757

 
$
26,782

 
Criticized performing
201

 
76

 
816

 
815

 
NA

 
NA

 
1,017

 
891

 
Criticized nonaccrual
94

 
—

 
217

 
210

 
NA

 
NA

 
311

 
210

 
(a)
Student loan delinquency classifications included loans insured by U.S. government agencies under the FFELP as follows: current included $3.3 billion and $3.8 billion; 30-119 days past due included $257 million and $299 million; and 120 or more days past due included $211 million and $227 million at December 31, 2016 and 2015, respectively.
(b)
These amounts represent student loans, 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, 2016 and 2015, excluded loans 30 days or more past due and still accruing, that are insured by U.S. government agencies under the FFELP, of $468 million and $526 million, respectively. These amounts were excluded as reimbursement of insured amounts is proceeding normally.
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
 
 
 
 
 
 
December 31,
(in millions, except ratios)
Home equity(g)
 
Residential mortgage(g)
 
Total residential real estate – excluding PCI
2016
2015

2016
2015

2016
2015
Loan delinquency(a)
 
 
 
 
 
 
 
 
Current
$
37,941

$
44,299

 
$
183,819

$
156,463

 
$
221,760

$
200,762

30–149 days past due
646

708

 
3,824

4,042

 
4,470

4,750

150 or more days past due
476

552

 
4,520

5,734

 
4,996

6,286

Total retained loans
$
39,063

$
45,559

 
$
192,163

$
166,239

 
$
231,226

$
211,798

% of 30+ days past due to total retained loans(b)
2.87
%
2.77
%
 
0.75
%
1.03
%
 
1.11
%
1.40
%
90 or more days past due and government guaranteed(c)
$
—

$
—

 
$
4,858

$
6,056

 
$
4,858

$
6,056

Nonaccrual loans
1,845

2,191

 
2,247

2,503

 
4,092

4,694

Current estimated LTV ratios(d)(e)
 
 
 
 
 
 
 
 
Greater than 125% and refreshed FICO scores:
 
 
 
 
 
 
 
 
Equal to or greater than 660
$
70

$
165

 
$
30

$
58

 
$
100

$
223

Less than 660
15

32

 
48

77

 
63

109

101% to 125% and refreshed FICO scores:
 
 
 
 
 
 
 
 
Equal to or greater than 660
668

1,344

 
135

274

 
803

1,618

Less than 660
221

434

 
177

291

 
398

725

80% to 100% and refreshed FICO scores:
 
 
 
 
 
 
 
 
Equal to or greater than 660
2,961

4,537

 
4,026

3,159

 
6,987

7,696

Less than 660
945

1,409

 
718

996

 
1,663

2,405

Less than 80% and refreshed FICO scores:
 
 
 
 
 
 
 
 
Equal to or greater than 660
27,317

29,648

 
169,579

142,241

 
196,896

171,889

Less than 660
4,380

4,934

 
6,759

6,797

 
11,139

11,731

No FICO/LTV available
2,486

3,056

 
1,327

1,658

 
3,813

4,714

U.S. government-guaranteed
—

—

 
9,364

10,688

 
9,364

10,688

Total retained loans
$
39,063

$
45,559

 
$
192,163

$
166,239

 
$
231,226

$
211,798

Geographic region
 
 
 
 
 
 
 
 
California
$
7,644

$
8,945

 
$
59,785

$
47,263

 
$
67,429

$
56,208

New York
7,978

9,147

 
24,813

21,462

 
32,791

30,609

Illinois
2,947

3,420

 
13,115

11,524

 
16,062

14,944

Texas
2,225

2,532

 
10,717

9,128

 
12,942

11,660

Florida
2,133

2,409

 
8,387

7,177

 
10,520

9,586

New Jersey
2,253

2,590

 
6,371

5,567

 
8,624

8,157

Colorado
677

807

 
6,304

5,409

 
6,981

6,216

Washington
1,229

1,451

 
5,443

4,176

 
6,672

5,627

Massachusetts
371

459

 
5,833

5,340

 
6,204

5,799

Arizona
1,772

2,143

 
3,577

3,155

 
5,349

5,298

All other(f)
9,834

11,656

 
47,818

46,038

 
57,652

57,694

Total retained loans
$
39,063

$
45,559

 
$
192,163

$
166,239

 
$
231,226

$
211,798


(a)
Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $2.5 billion and $2.6 billion; 30–149 days past due included $3.1 billion and $3.2 billion; and 150 or more days past due included $3.8 billion and $4.9 billion at December 31, 2016 and 2015, respectively.
(b)
At December 31, 2016 and 2015, residential mortgage loans excluded mortgage loans insured by U.S. government agencies of $6.9 billion and $8.1 billion, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.
(c)
These balances, which are 90 days or more past due, were excluded from nonaccrual loans as the loans are guaranteed by U.S government agencies. Typically the principal balance of the loans is insured and interest is guaranteed at a specified reimbursement rate subject to meeting agreed-upon servicing guidelines. At December 31, 2016 and 2015, these balances included $2.2 billion and $3.4 billion, respectively, of loans that are no longer accruing interest based on the agreed-upon servicing guidelines. For the remaining balance, interest is being accrued at the guaranteed reimbursement rate. There were no loans that were not guaranteed by U.S. government agencies that are 90 or more days past due and still accruing interest at December 31, 2016 and 2015.
(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. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.
(e)
Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
(f)
At December 31, 2016 and 2015, included mortgage loans insured by U.S. government agencies of $9.4 billion and $10.7 billion, respectively.
(g)
Includes residential real estate loans to private banking clients in AWM, for which the primary credit quality indicators are the borrower’s financial position and LTV.

The following table represents the Firm’s delinquency statistics for junior lien home equity loans and lines as of December 31, 2016 and 2015.
 
 
Total loans
 
Total 30+ day delinquency rate
December 31, (in millions except ratios)
 
2016
2015
 
2016
2015
HELOCs:(a)
 
 
 
 
 
 
Within the revolving period(b)
 
$
10,304

$
17,050

 
1.27
%
1.57
%
Beyond the revolving period
 
13,272

11,252

 
3.05

3.10

HELOANs
 
1,861

2,409

 
2.85

3.03

Total
 
$
25,437

$
30,711

 
2.32
%
2.25
%
(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 that allow 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.
Approximately 24% of the PCI home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or HELOCs. The following table sets forth delinquency statistics for PCI junior lien home equity loans and lines of credit based on the unpaid principal balance as of December 31, 2016 and 2015.
 
 
Total loans
 
Total 30+ day delinquency rate
December 31,
 
2016
2015
 
2016
2015
(in millions, except ratios)
 
 
 
 
 
 
HELOCs:(a)
 
 
 
 
 
 
Within the revolving period(b)
 
$
2,126

$
5,000

 
3.67
%
4.10
%
Beyond the revolving period(c)
 
7,452

6,252

 
4.03

4.46

HELOANs
 
465

582

 
5.38

5.33

Total
 
$
10,043

$
11,834

 
4.01
%
4.35
%
(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.
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
2016
2015

2016
2015

2016
2015

2016
2015

2016
2015
Carrying value(a)
$
12,902

$
14,989

 
$
7,602

$
8,893

 
$
2,941

$
3,263

 
$
12,234

$
13,853

 
$
35,679

$
40,998

Related allowance for loan losses(b)
1,433

1,708

 
829

985

 
—

—

 
49

49

 
2,311

2,742

Loan delinquency (based on unpaid principal balance)
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
$
12,423

$
14,387

 
$
6,840

$
7,894

 
$
3,005

$
3,232

 
$
11,074

$
12,370

 
$
33,342

$
37,883

30–149 days past due
291

322

 
336

424

 
361

439

 
555

711

 
1,543

1,896

150 or more days past due
478

633

 
451

601

 
240

380

 
917

1,272

 
2,086

2,886

Total loans
$
13,192

$
15,342

 
$
7,627

$
8,919

 
$
3,606

$
4,051

 
$
12,546

$
14,353

 
$
36,971

$
42,665

% of 30+ days past due to total loans
5.83
%
6.22
%
 
10.32
%
11.49
%
 
16.67
%
20.22
%
 
11.73
%
13.82
%
 
9.82
%
11.21
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current estimated LTV ratios (based on unpaid principal balance)(c)(d)
 
 
 
 
 
 
 
 
 
 
 
 
Greater than 125% and refreshed FICO scores:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equal to or greater than 660
$
69

$
153

 
$
6

$
10

 
$
7

$
10

 
$
12

$
19

 
$
94

$
192

Less than 660
39

80

 
17

28

 
31

55

 
18

36

 
105

199

101% to 125% and refreshed FICO scores:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equal to or greater than 660
555

942

 
52

120

 
39

77

 
83

166

 
729

1,305

Less than 660
256

444

 
84

152

 
135

220

 
144

239

 
619

1,055

80% to 100% and refreshed FICO scores:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equal to or greater than 660
1,860

2,709

 
442

816

 
214

331

 
558

977

 
3,074

4,833

Less than 660
804

1,136

 
381

614

 
439

643

 
609

1,050

 
2,233

3,443

Lower than 80% and refreshed FICO scores:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equal to or greater than 660
6,676

6,724

 
3,967

4,243

 
919

863

 
6,754

7,073

 
18,316

18,903

Less than 660
2,183

2,265

 
2,287

2,438

 
1,645

1,642

 
3,783

4,065

 
9,898

10,410

No FICO/LTV available
750

889

 
391

498

 
177

210

 
585

728

 
1,903

2,325

Total unpaid principal balance
$
13,192

$
15,342

 
$
7,627

$
8,919

 
$
3,606

$
4,051

 
$
12,546

$
14,353

 
$
36,971

$
42,665

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Geographic region (based on unpaid principal balance)
 
 
 
 
 
 
 
 
 
 
 
 
 
California
$
7,899

$
9,205

 
$
4,396

$
5,172

 
$
899

$
1,005

 
$
7,128

$
8,108

 
$
20,322

$
23,490

Florida
1,306

1,479

 
501

586

 
332

373

 
1,026

1,183

 
3,165

3,621

New York
697

788

 
515

580

 
363

400

 
711

813

 
2,286

2,581

Washington
673

819

 
167

194

 
68

81

 
290

339

 
1,198

1,433

New Jersey
280

310

 
210

238

 
125

139

 
401

470

 
1,016

1,157

Illinois
314

358

 
226

263

 
178

196

 
282

333

 
1,000

1,150

Massachusetts
94

112

 
173

199

 
110

125

 
346

398

 
723

834

Maryland
64

73

 
144

159

 
145

161

 
267

297

 
620

690

Arizona
241

281

 
124

143

 
68

76

 
181

203

 
614

703

Virginia
77

88

 
142

170

 
56

62

 
314

354

 
589

674

All other
1,547

1,829

 
1,029

1,215

 
1,262

1,433

 
1,600

1,855

 
5,438

6,332

Total unpaid principal balance
$
13,192

$
15,342

 
$
7,627

$
8,919

 
$
3,606

$
4,051

 
$
12,546

$
14,353

 
$
36,971

$
42,665

(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)
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. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.
(d)
Refreshed FICO scores represent each borrower’s most recent credit score, which is obtained by the Firm on at least a quarterly basis.
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)
2016
2015
Net charge-offs
$
3,442

$
3,122

% of net charge-offs to retained loans
2.63
%
2.51
%
Loan delinquency
 
 
Current and less than 30 days past due
and still accruing
$
139,434

$
129,502

30–89 days past due and still accruing
1,134

941

90 or more days past due and still accruing
1,143

944

Total retained credit card loans
$
141,711

$
131,387

Loan delinquency ratios
 
 
% of 30+ days past due to total retained loans
1.61
%
1.43
%
% of 90+ days past due to total retained loans
0.81

0.72

Credit card loans by geographic region
 
 
California
$
20,571

$
18,802

Texas
13,220

11,847

New York
12,249

11,360

Florida
8,585

7,806

Illinois
8,189

7,655

New Jersey
6,271

5,879

Ohio
4,906

4,700

Pennsylvania
4,787

4,533

Michigan
3,741

3,562

Colorado
3,699

3,399

All other
55,493

51,844

Total retained credit card loans
$
141,711

$
131,387

Percentage of portfolio based on carrying value with estimated refreshed FICO scores(a)
 
 
Equal to or greater than 660
84.4
%
84.4
%
Less than 660
14.2

13.1

No FICO available
1.4

2.5


(a)
The current period percentage of portfolio based on carrying value with estimated refreshed FICO scores disclosures have been updated to reflect where the FICO score is unavailable. The prior period amounts have been revised to conform with the current presentation.
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
2016
2015
 
2016
2015
 
2016
2015
 
2016
2015
 
2016
2015
 
2016
2015
Loans by risk ratings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment grade
$
64,949

$
62,150

 
$
88,434

$
74,330

 
$
23,562

$
21,786

 
$
15,935

$
11,363

 
$
97,043

$
98,107

 
$
289,923

$
267,736

Noninvestment
  grade:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncriticized
47,149

45,632

 
16,883

17,008

 
8,317

7,667

 
439

256

 
11,772

11,390

 
84,560

81,953

Criticized performing
6,161

4,542

 
798

1,251

 
200

320

 
6

7

 
188

253

 
7,353

6,373

Criticized nonaccrual
1,482

608

 
200

231

 
9

10

 
—

—

 
263

139

 
1,954

988

Total
noninvestment grade
54,792

50,782

 
17,881

18,490

 
8,526

7,997

 
445

263

 
12,223

11,782

 
93,867

89,314

Total retained loans
$
119,741

$
112,932

 
$
106,315

$
92,820

 
$
32,088

$
29,783

 
$
16,380

$
11,626

 
$
109,266

$
109,889

 
$
383,790

$
357,050

% of total criticized to total retained loans
6.38
%
4.56
%
 
0.94%

1.60%

 
0.65%

1.11%

 
0.04%

0.06%

 
0.41
%
0.36%

 
2.43
%
2.06
%
% of nonaccrual loans to total retained loans
1.24

0.54

 
0.19

0.25

 
0.03

0.03

 
—

—

 
0.24

0.13

 
0.51

0.28

Loans by geographic distribution(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total non-U.S.
$
30,259

$
30,063

 
$
3,292

$
3,003

 
$
14,741

$
17,166

 
$
3,726

$
1,788

 
$
39,496

$
42,031

 
$
91,514

$
94,051

Total U.S.
89,482

82,869

 
103,023

89,817

 
17,347

12,617

 
12,654

9,838

 
69,770

67,858

 
292,276

262,999

Total retained loans
$
119,741

$
112,932

 
$
106,315

$
92,820

 
$
32,088

$
29,783

 
$
16,380

$
11,626

 
$
109,266

$
109,889

 
$
383,790

$
357,050

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net charge-offs/(recoveries)
$
335

$
26

 
$
(7
)
$
(14
)
 
$
(2
)
$
(5
)
 
$
(1
)
$
(8
)
 
$
16

$
11

 
$
341

$
10

% of net
charge-offs/(recoveries) to end-of-period retained loans
0.28
%
0.02
%
 
(0.01
)%
(0.02
)%
 
(0.01
)%
(0.02)%

 
(0.01
)%
(0.07
)%
 
0.01
%
0.01%

 
0.09
%
—
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan
delinquency(b)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current and less than 30 days past due and still accruing
$
117,905

$
112,058

 
$
105,958

$
92,381

 
$
32,036

$
29,713

 
$
16,269

$
11,565

 
$
108,350

$
108,734

 
$
380,518

$
354,451

30–89 days past due and still accruing
268

259

 
155

193

 
22

49

 
107

55

 
634

988

 
1,186

1,544

90 or more days past due and still accruing(c)
86

7

 
2

15

 
21

11

 
4

6

 
19

28

 
132

67

Criticized nonaccrual
1,482

608

 
200

231

 
9

10

 
—

—

 
263

139

 
1,954

988

Total retained loans
$
119,741

$
112,932

 
$
106,315

$
92,820

 
$
32,088

$
29,783

 
$
16,380

$
11,626

 
$
109,266

$
109,889

 
$
383,790

$
357,050

(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.
(c)
Represents loans that are considered well-collateralized and therefore still accruing interest.
(d)
Other includes individuals, SPEs, holding companies, and private education and civic organizations. For more information on exposures to SPEs, see Note 16.
The following table presents additional information on the real estate class of loans within the Wholesale portfolio for the periods indicated. Exposure consists primarily of secured commercial loans, of which multifamily is the largest segment. Multifamily lending finances acquisition, leasing and construction of apartment buildings, and includes exposure to real estate investment trusts (“REITs”). Other commercial lending largely includes financing for acquisition, leasing and construction, largely for office, retail and industrial real estate, and includes exposure to REITs. Included in real estate loans is $9.2 billion and $7.3 billion as of December 31, 2016 and 2015, respectively, of construction and development exposure consisting of loans originally purposed for construction and development, general purpose loans for builders, as well as loans for land subdivision and pre-development.
December 31,
(in millions, except ratios)
Multifamily
 
Other Commercial
 
Total real estate loans
2016
2015
 
2016
2015
 
2016
2015
Real estate retained loans
$
71,978

$
64,271

 
$
34,337

$
28,549

 
$
106,315

$
92,820

Criticized
539

562

 
459

920

 
998

1,482

% of criticized to total real estate retained loans
0.75
%
0.87
%
 
1.34
%
3.22
%
 
0.94
%
1.60
%
Criticized nonaccrual
$
57

$
85

 
$
143

$
146

 
$
200

$
231

% of criticized nonaccrual to total real estate retained loans
0.08
%
0.13
%
 
0.42
%
0.51
%
 
0.19
%
0.25
%
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.
December 31,
(in millions)
Home equity
 
Residential mortgage
 
Total residential real estate
– excluding PCI
2016
2015
 
2016
2015
 
2016
2015
Impaired loans
 
 
 
 
 
 
 
 
With an allowance
$
1,266

$
1,293

 
$
4,689

$
5,243

 
$
5,955

$
6,536

Without an allowance(a)
998

1,065

 
1,343

1,447

 
2,341

2,512

Total impaired loans(b)(c)
$
2,264

$
2,358

 
$
6,032

$
6,690

 
$
8,296

$
9,048

Allowance for loan losses related to impaired loans
$
121

$
138

 
$
68

$
108

 
$
189

$
246

Unpaid principal balance of impaired loans(d)
3,847

3,960

 
8,285

9,082

 
12,132

13,042

Impaired loans on nonaccrual status(e)
1,116

1,220

 
1,755

1,957

 
2,871

3,177

(a)
Represents collateral-dependent residential real estate 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, 2016, Chapter 7 residential real estate loans included approximately 12% home equity and 16% of residential mortgages that were 30 days or more past due.
(b)
At December 31, 2016 and 2015, $3.4 billion and $3.8 billion, respectively, of loans modified subsequent to repurchase from 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, 2016 and 2015. 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, 2016 and 2015, nonaccrual loans included $2.3 billion and $2.5 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 208–210 of this Note.
The following table 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)
2016

2015

Impaired loans
 
 
With an allowance
$
614

$
527

Without an allowance(a)
30

31

Total impaired loans(b)(c)
$
644

$
558

Allowance for loan losses related to impaired loans
$
119

$
118

Unpaid principal balance of impaired loans(d)
753

668

Impaired loans on nonaccrual status
508

449

(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 $635 million, $566 million and $599 million for the years ended December 31, 2016, 2015 and 2014, respectively. The related interest income on impaired loans, including those on a cash basis, was not material for the years ended December 31, 2016, 2015 and 2014.
(d)
Represents the contractual amount of principal owed at December 31, 2016 and 2015. 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.
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)
2016

2015

Impaired credit card loans with an allowance(a)(b)
 
 
Credit card loans with modified payment terms(c)
$
1,098

$
1,286

Modified credit card loans that have reverted to pre-modification payment terms(d)
142

179

Total impaired credit card loans(e)
$
1,240

$
1,465

Allowance for loan losses related to impaired credit card loans
$
358

$
460

(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, 2016 and 2015, $94 million and $113 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 $48 million and $66 million at December 31, 2016 and 2015, 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.
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
 
2016
2015
 
2016
2015
 
2016
2015
 
2016
2015
 
2016
2015
 
2016
 
2015
 
Impaired loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance
$
1,119

$
522

 
$
125

$
148

 
$
9

$
10

 
$
—

$
—

 
$
187

$
46

 
$
1,440

 
$
726

 
Without an allowance(a)
414

98

 
87

106

 
—

—

 
—

—

 
76

94

 
577

 
298

 
Total impaired loans
$
1,533

$
620

 
$
212

$
254

 
$
9

$
10

 
$
—

$
—

 
$
263

$
140

 
$
2,017

(c) 
$
1,024

(c) 
Allowance for loan losses related to impaired loans
$
258

$
220

 
$
18

$
27

 
$
3

$
3

 
$
—

$
—

 
$
63

$
24

 
$
342

 
$
274

 
Unpaid principal balance of impaired loans(b)
1,754

669

 
295

363

 
12

13

 
—

—

 
284

164

 
2,345

 
1,209

 
(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, 2016 and 2015. 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, largely consists of loans in the U.S.
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)
2016
2015
2014
 
2016
2015
2014
 
2016
2015
2014
Home equity
$
2,311

$
2,369

$
2,435

 
$
125

$
128

$
137

 
$
80

$
85

$
90

Residential mortgage
6,376

7,697

10,174

 
305

348

444

 
77

87

105

Total residential real estate – excluding PCI
$
8,687

$
10,066

$
12,609

 
$
430

$
476

$
581

 
$
157

$
172

$
195

(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, unless the loan is deemed to be collateral-dependent.
The following table presents average balances of impaired credit card loans and interest income recognized on those loans.
Year ended December 31,
(in millions)
 
2016

2015

2014

Average impaired credit card loans
 
$
1,325

$
1,710

$
2,503

Interest income on
  impaired credit card loans
 
63

82

123

The following table presents the Firm’s average impaired loans for the years ended 2016, 2015 and 2014.
Year ended December 31, (in millions)
2016
2015
2014
Commercial and industrial
$
1,480

$
453

$
243

Real estate
217

250

297

Financial institutions
13

13

20

Government agencies
—

—

—

Other
213

129

155

Total(a)
$
1,923

$
845

$
715

(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, 2016, 2015 and 2014.
Troubled debt restructuring on financing receivables
The following table presents new TDRs reported by the Firm.
Year ended December 31,
(in millions)
2016

2015

2014

Home equity
$
385

$
401

$
321

Residential mortgage
254

267

411

Total residential real estate – excluding PCI
$
639

$
668

$
732

The following table provides information about the Firm’s other consumer loans modified in TDRs. New TDRs were not material for the years ended December 31, 2016 and 2015.
December 31, (in millions)
2016
2015
Loans modified in TDRs(a)(b)
$
362

$
384

TDRs on nonaccrual status
226

275

(a)
The impact of these modifications was not material to the Firm for the years ended December 31, 2016 and 2015.
(b)
Additional commitments to lend to borrowers whose loans have been modified in TDRs as of December 31, 2016 and 2015 were immaterial.
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 described above during the periods presented. This table excludes Chapter 7 loans where the sole concession granted is the discharge of debt.
Year ended December 31,
Home equity
 
 
Residential mortgage
 
 
Total residential real estate
 – excluding PCI
2016
2015
2014
 
 
2016
2015
2014
 
 
2016
2015
2014
Number of loans approved for a trial modification
3,760

3,933

1,565

 
 
1,945

2,711

3,108

 
 
5,705

6,644

4,673

Number of loans permanently modified
4,824

4,296

3,984

 
 
3,338

3,145

5,648

 
 
8,162

7,441

9,632

Concession granted:(a)
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate reduction
75
%
66
%
75
%
 
 
76
%
71
%
45
%
 
 
76
%
68
%
58
%
Term or payment extension
83

89

78

 
 
90

81

52

 
 
86

86

63

Principal and/or interest deferred
19

23

21

 
 
16

27

15

 
 
18

24

18

Principal forgiveness
9

7

26

 
 
26

28

52

 
 
16

16

41

Other(b)
6

—

—

 
 
25

11

10

 
 
14

5

6

(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 loss mitigation programs described above 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)
 
 
 
 
Total residential real estate – excluding PCI
Home equity
 
Residential mortgage
 
2016
2015
2014
 
2016
2015
2014
 
2016
2015
2014
Weighted-average interest rate of loans with interest rate reductions – before TDR
4.99
%
5.20
%
5.27
%
 
5.59
%
5.67
%
5.74
%
 
5.36
%
5.51
%
5.61
%
Weighted-average interest rate of loans with interest rate reductions – after TDR
2.34

2.35

2.30

 
2.93

2.79

2.96

 
2.70

2.64

2.78

Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR
18

18

19

 
24

25

24

 
22

22

23

Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR
38

35

33

 
38

37

36

 
38

36

36

Charge-offs recognized upon permanent modification
$
1

$
4

$
27

 
$
4

$
11

$
12

 
$
5

$
15

$
39

Principal deferred
23

27

16

 
30

58

58

 
53

85

74

Principal forgiven
7

6

35

 
44

66

172

 
51

72

207

Balance of loans that redefaulted within one year of permanent modification(a)
$
40

$
21

$
29

 
$
98

$
133

$
214

 
$
138

$
154

$
243

(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.
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)
 
2016
2015
2014
Weighted-average interest rate of loans – before TDR
 
15.56
%
15.08
%
14.96
%
Weighted-average interest rate of loans – after TDR
 
4.76

4.40

4.40

Loans that redefaulted within one year of modification(a)
 
$
79

$
85

$
119

(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.
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, 2016, 2015 and 2014, 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
2016
 
2015
 
2014
Beginning balance
$
13,491

 
$
14,592

 
$
16,167

Accretion into interest income
(1,555
)
 
(1,700
)
 
(1,934
)
Changes in interest rates on variable-rate loans
260

 
279

 
(174
)
Other changes in expected cash flows(a)
(428
)
 
230

 
533

Reclassification from nonaccretable difference(b)
—

 
90

 
—

Balance at December 31
$
11,768

 
$
13,491

 
$
14,592

Accretable yield percentage
4.35
%
 
4.20
%
 
4.19
%
(a)
Other changes in expected cash flows may vary from period to period as the Firm continues to refine its cash flow model, for example cash flows expected to be collected due to the impact of modifications and changes in prepayment assumptions.
(b)
Reclassifications from the nonaccretable difference in the year ended December 31, 2015 were driven by continued improvement in home prices and delinquencies, as well as increased granularity in the impairment estimates.