Loans (Tables)

12 Months Ended

Dec. 31, 2018

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 • Residential mortgage(b) • Home equity(c) Other consumer loans(d) • Auto • Consumer & Business Banking(e) Residential real estate – PCI • Home equity • Prime mortgage • Subprime mortgage • Option ARMs	• Credit card loans	• Commercial and industrial • Real estate • Financial institutions • Governments & 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) Predominantly includes prime (including option ARMs) and subprime loans.

(c) Includes senior and junior lien home equity 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.

(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 and individual entities (predominantly consists of Wealth Management clients within AWM and includes exposure to personal investment companies and personal and testamentary trusts), SPEs and Private education and civic organizations. For more information on SPEs, refer to Note 14.

Schedule of loans by portfolio segment

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

December 31, 2018	Consumer, excluding credit card			Credit card(a)			Wholesale			Total
(in millions)
Retained		$	373,637		$	156,616		$	439,162		$	969,415	(b)
Held-for-sale		95			16			11,877			11,988
At fair value		—			—			3,151			3,151
Total		$	373,732		$	156,632		$	454,190		$	984,554
December 31, 2017	Consumer, excluding credit card				Credit card(a)			Wholesale			Total
(in millions)
Retained		$	372,553		$	149,387		$	402,898		$	924,838	(b)
Held-for-sale		128			124			3,099			3,351
At fair value		—			—			2,508			2,508
Total		$	372,681		$	149,511		$	408,505		$	930,697

(a) Includes accrued interest and fees net of an allowance for the uncollectible portion of accrued interest and fee income.

(b)

Loans (other than PCI loans and those for which the fair value option has been elected) are presented net of unamortized discounts and premiums and net deferred loan fees or costs. These amounts were not material as of December 31, 2018 and 2017.The following table provides information about retained consumer loans, excluding credit card, by class. In 2017, the Firm sold its student loan portfolio.

December 31, (in millions)	2018		2017
Residential real estate – excluding PCI
Residential mortgage	$	231,078	$	216,496
Home equity	28,340		33,450
Other consumer loans
Auto	63,573		66,242
Consumer & Business Banking	26,612		25,789
Residential real estate – PCI
Home equity	8,963		10,799
Prime mortgage	4,690		6,479
Subprime mortgage	1,945		2,609
Option ARMs	8,436		10,689
Total retained loans	$	373,637	$	372,553

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. Reclassifications of loans to held-for sale are non-cash transactions. The Firm manages its exposure to credit risk on an ongoing basis. Selling loans is one way that the Firm reduces its credit exposures. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table.

		2018
Year ended December 31, (in millions)	Consumer, excluding credit card				Credit card			Wholesale			Total
Purchases		$	2,543	(a)(b)		$	—		$	2,354		$	4,897
Sales		9,984				—			16,741			26,725
Retained loans reclassified to held-for-sale		36				—			2,276			2,312

		2017
Year ended December 31, (in millions)	Consumer, excluding credit card				Credit card			Wholesale			Total
Purchases		$	3,461	(a)(b)		$	—		$	1,799		$	5,260
Sales		3,405				—			11,063			14,468
Retained loans reclassified to held-for-sale		6,340		(c)		—			1,229			7,569

		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

(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 $18.6 billion, $23.5 billion and $30.4 billion for the years ended December 31, 2018, 2017 and 2016, respectively.

(c)

Includes the Firm’s student loan portfolio which was sold in 2017.

Schedule of financing receivable credit quality indicators

The table below provides 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
	2018			2017			2018			2017			2018			2017			2018			2017			2018			2017
Carrying value(a)	$	8,963		$	10,799		$	4,690		$	6,479		$	1,945		$	2,609		$	8,436		$	10,689		$	24,034		$	30,576
Loan delinquency (based on unpaid principal balance)
Current	$	8,624		$	10,272		$	4,226		$	5,839		$	2,033		$	2,640		$	7,592		$	9,662		$	22,475		$	28,413
30–149 days past due	278			356			259			336			286			381			398			547			1,221			1,620
150 or more days past due	242			392			223			327			123			176			457			689			1,045			1,584
Total loans	$	9,144		$	11,020		$	4,708		$	6,502		$	2,442		$	3,197		$	8,447		$	10,898		$	24,741		$	31,617
% of 30+ days past due to total loans	5.69		%	6.79		%	10.24		%	10.20		%	16.75		%	17.42		%	10.12		%	11.34		%	9.16		%	10.13		%
Current estimated LTV ratios (based on unpaid principal balance)(b)(c)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	17		$	33		$	1		$	4		$	—		$	2		$	3		$	6		$	21		$	45
Less than 660	13			21			7			16			9			20			7			9			36			66
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	135			274			6			16			4			20			17			43			162			353
Less than 660	65			132			22			42			35			75			33			71			155			320
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	805			1,195			75			221			54			119			119			316			1,053			1,851
Less than 660	388			559			112			230			161			309			190			371			851			1,469
Lower than 80% and refreshed FICO scores:
Equal to or greater than 660	5,548			6,134			2,689			3,551			739			895			5,111			6,113			14,087			16,693
Less than 660	1,908			2,095			1,568			2,103			1,327			1,608			2,622			3,499			7,425			9,305
No FICO/LTV available	265			577			228			319			113			149			345			470			951			1,515
Total unpaid principal balance	$	9,144		$	11,020		$	4,708		$	6,502		$	2,442		$	3,197		$	8,447		$	10,898		$	24,741		$	31,617
Geographic region (based on unpaid principal balance)(d)
California	$	5,420		$	6,555		$	2,578		$	3,716		$	593		$	797		$	4,798		$	6,225		$	13,389		$	17,293
Florida	976			1,137			332			428			234			296			713			878			2,255			2,739
New York	525			607			365			457			268			330			502			628			1,660			2,022
Washington	419			532			98			135			44			61			177			238			738			966
Illinois	233			273			154			200			123			161			199			249			709			883
New Jersey	210			242			134			178			88			110			258			336			690			866
Massachusetts	65			79			113			149			73			98			240			307			491			633
Maryland	48			57			95			129			96			132			178			232			417			550
Virginia	54			66			91			123			37			51			211			280			393			520
Arizona	165			203			69			106			43			60			112			156			389			525
All other	1,029			1,269			679			881			843			1,101			1,059			1,369			3,610			4,620
Total unpaid principal balance	$	9,144		$	11,020		$	4,708		$	6,502		$	2,442		$	3,197		$	8,447		$	10,898		$	24,741		$	31,617

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

(b) 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.

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

(d) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2018.

Approximately 26% of the PCI home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or HELOCs. The following table provides delinquency statistics for PCI junior lien home equity loans and lines of credit based on the unpaid principal balance as of December 31, 2018 and 2017.

December 31, (in millions, except ratios)	Total loans				Total 30+ day delinquency rate
	2018		2017		2018		2017
HELOCs:(a)(b)	$	6,531	$	7,926	4.00	%	4.62	%
HELOANs	280		360		3.57		5.28
Total	$	6,811	$	8,286	3.98	%	4.65	%

(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. Substantially all HELOCs are beyond the revolving period.

(b)

Includes loans modified into fixed rate amortizing loans.Approximately 37% of the home equity portfolio are senior lien loans; the remaining balance are junior lien HELOANs or HELOCs. The following table provides the Firm’s delinquency statistics for junior lien home equity loans and lines as of December 31, 2018 and 2017.

	Total loans				Total 30+ day delinquency rate
December 31, (in millions except ratios)	2018		2017		2018		2017
HELOCs:(a)
Within the revolving period(b)	$	5,608	$	6,363	0.25	%	0.50	%
Beyond the revolving period	11,286		13,532		2.80		3.56
HELOANs	1,030		1,371		2.82		3.50
Total	$	17,924	$	21,266	2.00	%	2.64	%

(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.

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

December 31, (in millions, except ratios)	Auto						Consumer & Business Banking						Total other consumer
	2018			2017			2018			2017			2018			2017
Loan delinquency
Current	$	62,984		$	65,651		$	26,249		$	25,454		$	89,233		$	91,105
30–119 days past due	589			584			252			213			841			797
120 or more days past due	—			7			111			122			111			129
Total retained loans	$	63,573		$	66,242		$	26,612		$	25,789		$	90,185		$	92,031
% of 30+ days past due to total retained loans	0.93		%	0.89		%	1.36		%	1.30		%	1.06		%	1.01		%
Nonaccrual loans(a)	128			141			245			283			373			424
Geographic region(b)
California	$	8,330		$	8,445		$	5,520		$	5,032		$	13,850		$	13,477
Texas	6,531			7,013			2,993			2,916			9,524			9,929
New York	3,863			4,023			4,381			4,195			8,244			8,218
Illinois	3,716			3,916			2,046			2,017			5,762			5,933
Florida	3,256			3,350			1,502			1,424			4,758			4,774
Arizona	2,084			2,221			1,491			1,383			3,575			3,604
Ohio	1,973			2,105			1,305			1,380			3,278			3,485
New Jersey	1,981			2,044			723			721			2,704			2,765
Michigan	1,357			1,418			1,329			1,357			2,686			2,775
Louisiana	1,587			1,656			860			849			2,447			2,505
All other	28,895			30,051			4,462			4,515			33,357			34,566
Total retained loans	$	63,573		$	66,242		$	26,612		$	25,789		$	90,185		$	92,031
Loans by risk ratings(c)
Noncriticized	$	15,749		$	15,604		$	18,743		$	17,938		$	34,492		$	33,542
Criticized performing	273			93			751			791			1,024			884
Criticized nonaccrual	—			9			191			213			191			222

(a) There were no loans that were 90 or more days past due and still accruing interest at December 31, 2018 and December 31, 2017.

(b) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2018.

(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.The following table provides information by class for retained residential real estate — excluding PCI loans.

Residential real estate – excluding PCI loans
December 31, (in millions, except ratios)	Residential mortgage						Home equity						Total residential real estate – excluding PCI
	2018			2017			2018			2017			2018			2017
Loan delinquency(a)
Current	$	225,899		$	208,713		$	27,611		$	32,391		$	253,510		$	241,104
30–149 days past due	2,763			4,234			453			671			3,216			4,905
150 or more days past due	2,416			3,549			276			388			2,692			3,937
Total retained loans	$	231,078		$	216,496		$	28,340		$	33,450		$	259,418		$	249,946
% of 30+ days past due to total retained loans(b)	0.48		%	0.77		%	2.57		%	3.17		%	0.71		%	1.09		%
90 or more days past due and government guaranteed(c)	$	2,541		$	4,172		—			—			$	2,541		$	4,172
Nonaccrual loans	1,765			2,175			1,323			1,610			3,088			3,785
Current estimated LTV ratios(d)(e)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	25		$	37		$	6		$	10		$	31		$	47
Less than 660	13			19			1			3			14			22
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	37			36			111			296			148			332
Less than 660	53			88			38			95			91			183
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	3,977			4,369			986			1,676			4,963			6,045
Less than 660	281			483			326			569			607			1,052
Less than 80% and refreshed FICO scores:
Equal to or greater than 660	212,505			194,758			22,632			25,262			235,137			220,020
Less than 660	6,457			6,952			3,355			3,850			9,812			10,802
No FICO/LTV available	813			1,259			885			1,689			1,698			2,948
U.S. government-guaranteed	6,917			8,495			—			—			6,917			8,495
Total retained loans	$	231,078		$	216,496		$	28,340		$	33,450		$	259,418		$	249,946
Geographic region(f)
California	$	74,759		$	68,855		$	5,695		$	6,582		$	80,454		$	75,437
New York	28,847			27,473			5,769			6,866			34,616			34,339
Illinois	15,249			14,501			2,131			2,521			17,380			17,022
Texas	13,769			12,508			1,819			2,021			15,588			14,529
Florida	10,704			9,598			1,575			1,847			12,279			11,445
Washington	8,304			6,962			869			1,026			9,173			7,988
New Jersey	7,302			7,142			1,642			1,957			8,944			9,099
Colorado	8,140			7,335			521			632			8,661			7,967
Massachusetts	6,574			6,323			236			295			6,810			6,618
Arizona	4,434			4,109			1,158			1,439			5,592			5,548
All other(g)	52,996			51,690			6,925			8,264			59,921			59,954
Total retained loans	$	231,078		$	216,496		$	28,340		$	33,450		$	259,418		$	249,946

(a) Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $2.8 billion and $2.4 billion; 30–149 days past due included $2.1 billion and $3.2 billion; and 150 or more days past due included $2.0 billion and $2.9 billion at December 31, 2018 and 2017, respectively.

(b) At December 31, 2018 and 2017, residential mortgage loans excluded mortgage loans insured by U.S. government agencies of $4.1 billion and $6.1 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, 2018 and 2017, these balances included $999 million and $1.5 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, 2018 and 2017.

(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) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2018.

(g) At December 31, 2018 and 2017, included mortgage loans insured by U.S. government agencies of $6.9 billion and $8.5 billion, respectively. These amounts have been excluded from the geographic regions presented based upon the government guarantee.

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

As of or for the year ended December 31, (in millions, except ratios)	2018			2017
Net charge-offs	$	4,518		$	4,123
% of net charge-offs to retained loans	3.10		%	2.95		%
Loan delinquency
Current and less than 30 days past due and still accruing	$	153,746		$	146,704
30–89 days past due and still accruing	1,426			1,305
90 or more days past due and still accruing	1,444			1,378
Total retained credit card loans	$	156,616		$	149,387
Loan delinquency ratios
% of 30+ days past due to total retained loans	1.83		%	1.80		%
% of 90+ days past due to total retained loans	0.92			0.92
Credit card loans by geographic region(a)
California	$	23,757		$	22,245
Texas	15,085			14,200
New York	13,601			13,021
Florida	9,770			9,138
Illinois	8,938			8,585
New Jersey	6,739			6,506
Ohio	5,094			4,997
Pennsylvania	4,996			4,883
Colorado	4,309			4,006
Michigan	3,912			3,826
All other	60,415			57,980
Total retained credit card loans	$	156,616		$	149,387
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660	84.2		%	84.0		%
Less than 660	15.0			14.6
No FICO available	0.8			1.4

a) The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2018.

The table below provides information by class of receivable for the retained loans in the Wholesale portfolio segment. For additional information on industry concentrations, refer to Note 4.

As of or for the year ended December 31, (in millions, except ratios)	Commercial and industrial						Real estate						Financial institutions						Governments & Agencies						Other(d)						Total retained loans
	2018			2017			2018			2017			2018			2017			2018			2017			2018			2017			2018			2017
Loans by risk ratings
Investment-grade	$	73,497		$	68,071		$	100,107		$	98,467		$	32,178		$	26,791		$	13,984		$	15,140		$	119,963		$	103,212		$	339,729		$	311,681
Noninvestment-   grade:
Noncriticized	51,720			46,558			14,876			14,335			15,316			13,071			201			369			11,478			9,988			93,591			84,321
Criticized performing	3,738			3,983			620			710			150			210			2			—			182			259			4,692			5,162
Criticized nonaccrual	851			1,357			134			136			4			2			—			—			161			239			1,150			1,734
Total noninvestment- grade	56,309			51,898			15,630			15,181			15,470			13,283			203			369			11,821			10,486			99,433			91,217
Total retained loans	$	129,806		$	119,969		$	115,737		$	113,648		$	47,648		$	40,074		$	14,187		$	15,509		$	131,784		$	113,698		$	439,162		$	402,898
% of total criticized exposure to total retained loans	3.54		%	4.45		%	0.65		%	0.74		%	0.32		%	0.53		%	0.01		%	—			0.26		%	0.44		%	1.33		%	1.71		%
% of criticized nonaccrual to total retained loans	0.66			1.13			0.12			0.12			0.01			—			—			—			0.12			0.21			0.26			0.43
Loans by geographic distribution(a)
Total non-U.S.	$	29,572		$	28,470		$	2,967		$	3,101		$	18,524		$	16,790		$	3,150		$	2,906		$	48,433		$	44,112		$	102,646		$	95,379
Total U.S.	100,234			91,499			112,770			110,547			29,124			23,284			11,037			12,603			83,351			69,586			336,516			307,519
Total retained loans	$	129,806		$	119,969		$	115,737		$	113,648		$	47,648		$	40,074		$	14,187		$	15,509		$	131,784		$	113,698		$	439,162		$	402,898
Net charge-offs/(recoveries)	$	165		$	117		$	(20	)	$	(4	)	$	—		$	6		$	—		$	5		$	10		$	(5	)	$	155		$	119
% of net charge-offs/(recoveries) to end-of-period retained loans	0.13		%	0.10		%	(0.02		)%	—		%	—		%	0.01		%	—		%	0.03		%	0.01		%	—			0.04		%	0.03		%
Loan delinquency(b)
Current and less than 30 days past due and still accruing	$	128,678		$	118,288		$	115,533		$	113,258		$	47,622		$	40,042		$	14,165		$	15,493		$	130,918		$	112,559		$	436,916		$	399,640
30–89 days past due and still accruing	109			216			67			242			12			15			18			12			702			898			908			1,383
90 or more days past due and still accruing(c)	168			108			3			12			10			15			4			4			3			2			188			141
Criticized nonaccrual	851			1,357			134			136			4			2			—			—			161			239			1,150			1,734
Total retained loans	$	129,806		$	119,969		$	115,737		$	113,648		$	47,648		$	40,074		$	14,187		$	15,509		$	131,784		$	113,698		$	439,162		$	402,898

(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 and individual entities (predominantly consists of Wealth Management clients within AWM and includes exposure to personal investment companies and personal and testamentary trusts), SPEs and Private education and civic organizations. For more information on SPEs, refer to Note 14.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 $10.5 billion and $10.8 billion as of December 31, 2018 and 2017, 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
	2018			2017			2018			2017			2018			2017
Real estate retained loans	$	79,184		$	77,597		$	36,553		$	36,051		$	115,737		$	113,648
Criticized exposure	388			491			366			355			754			846
% of total criticized exposure to total real estate retained loans	0.49		%	0.63		%	1.00		%	0.98		%	0.65		%	0.74		%
Criticized nonaccrual	$	57		$	44		$	77		$	92		$	134		$	136
% of criticized nonaccrual loans to total real estate retained loans	0.07		%	0.06		%	0.21		%	0.26		%	0.12		%	0.12		%

Schedule of impaired financing receivables

The table below provides 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 13.

December 31, (in millions)	Residential mortgage				Home equity				Total residential real estate – excluding PCI
	2018		2017		2018		2017		2018		2017
Impaired loans
With an allowance	$	3,381	$	4,407	$	1,142	$	1,236	$	4,523	$	5,643
Without an allowance(a)	1,184		1,213		870		882		2,054		2,095
Total impaired loans(b)(c)	$	4,565	$	5,620	$	2,012	$	2,118	$	6,577	$	7,738
Allowance for loan losses related to impaired loans	$	88	$	62	$	45	$	111	$	133	$	173
Unpaid principal balance of impaired loans(d)	6,207		7,741		3,466		3,701		9,673		11,442
Impaired loans on nonaccrual status(e)	1,459		1,743		955		1,032		2,414		2,775

(a) Represents collateral-dependent residential real estate loans that are charged off to the fair value of the underlying collateral less costs 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, 2018, Chapter 7 residential real estate loans included approximately 13% of residential mortgages and approximately 9% of home equity that were 30 days or more past due.

(b) At December 31, 2018 and 2017, $4.1 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, 2018 and 2017. 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, 2018 and 2017, nonaccrual loans included $2.0 billion and $2.2 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 219-221 of this Note.The following table provides 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)	2018		2017
Impaired loans
With an allowance	$	222	$	272
Without an allowance(a)	29		26
Total impaired loans(b)(c)	$	251	$	298
Allowance for loan losses related to impaired loans	$	63	$	73
Unpaid principal balance of impaired loans(d)	355		402
Impaired loans on nonaccrual status	229		268

(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 $275 million, $427 million and $635 million for the years ended December 31, 2018, 2017 and 2016, respectively. The related interest income on impaired loans, including those on a cash basis, was not material for the years ended December 31, 2018, 2017 and 2016.

(d)

Represents the contractual amount of principal owed at December 31, 2018 and 2017. 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 provides 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)	2018		2017
Impaired credit card loans with an allowance(a)(b)(c)	$	1,319	$	1,215
Allowance for loan losses related to impaired credit card loans	440		383

(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)

Predominantly all impaired credit card loans are in the U.S.The table below sets forth information about the Firm’s wholesale impaired retained loans.

December 31, (in millions)	Commercial and industrial				Real estate				Financial institutions				Governments &  Agencies				Other				Total retained loans
	2018		2017		2018		2017		2018		2017		2018		2017		2018		2017		2018			2017
Impaired loans
With an allowance	$	807	$	1,170	$	107	$	78	$	4	$	93	$	—	$	—	$	152	$	168	$	1,070		$	1,509
Without an allowance(a)	140		228		27		60		—		—		—		—		13		70		180			358
Total impaired loans	$	947	$	1,398	$	134	$	138	$	4	$	93	$	—	$	—	$	165	$	238	$	1,250	(c)	$	1,867	(c)
Allowance for loan losses related to impaired loans	$	252	$	404	$	25	$	11	$	1	$	4	$	—	$	—	$	19	$	42	$	297		$	461
Unpaid principal balance of impaired loans(b)	1,043		1,604		203		201		4		94		—		—		473		255		1,723			2,154

(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, 2018 and 2017. 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, (in millions)	Average impaired loans						Interest income on impaired loans(a)						Interest income on impaired loans on a cash basis(a)
	2018		2017		2016		2018		2017		2016		2018		2017		2016
Residential mortgage	$	5,082	$	5,797	$	6,376	$	257	$	287	$	305	$	75	$	75	$	77
Home equity	2,078		2,189		2,311		131		127		125		84		80		80
Total residential real estate – excluding PCI	$	7,160	$	7,986	$	8,687	$	388	$	414	$	430	$	159	$	155	$	157

(a)

Generally, interest income on loans modified in TDRs is recognized on a cash basis until 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)	2018		2017		2016
Average impaired credit card loans	$	1,260	$	1,214	$	1,325
Interest income on   impaired credit card loans	65		59		63

The following table presents the Firm’s average impaired retained loans for the years ended 2018, 2017 and 2016.

Year ended December 31, (in millions)	2018		2017(b)		2016
Commercial and industrial	$	1,027	$	1,256	$	1,480
Real estate	133		165		217
Financial institutions	57		48		13
Governments & Agencies	—		—		—
Other	199		241		213
Total(a)	$	1,416	$	1,710	$	1,923

(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, 2018, 2017 and 2016.

(b)

The prior period amounts have been revised to conform with the current period presentation.

Troubled debt restructuring on financing receivables

The following table presents new TDRs reported by the Firm.

Year ended December 31, (in millions)	2018		2017		2016
Residential mortgage	$	401	$	373	$	254
Home equity	286		321		385
Total residential real estate – excluding PCI	$	687	$	694	$	639

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,	Residential mortgage						Home equity						Total residential real estate  – excluding PCI
	2018		2017		2016		2018		2017		2016		2018		2017		2016
Number of loans approved for a trial modification	2,570		1,283		1,945		2,316		2,321		3,760		4,886		3,604		5,705
Number of loans permanently modified	2,907		2,628		3,338		4,946		5,624		4,824		7,853		8,252		8,162
Concession granted:(a)
Interest rate reduction	40	%	63	%	76	%	62	%	59	%	75	%	54	%	60	%	76	%
Term or payment extension	55		72		90		66		69		83		62		70		86
Principal and/or interest deferred	44		15		16		20		10		19		29		12		18
Principal forgiveness	8		16		26		7		13		9		7		14		16
Other(b)	38		33		25		58		31		6		51		32		14

(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. Concessions offered on trial modifications are generally consistent with those granted on permanent modifications.

(b)

Includes variable interest rate to fixed interest rate modifications for the years ended December 31, 2018, 2017 and 2016. Also includes forbearances that meet the definition of a TDR for the year ended December 31, 2018. Forbearances suspend or reduce monthly payments for a specific period of time to address a temporary hardship.

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. The following table presents only the financial effects of permanent modifications and does not include temporary concessions offered through trial 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)	Residential mortgage									Home equity									Total residential real estate – excluding PCI
	2018			2017			2016			2018			2017			2016			2018			2017			2016
Weighted-average interest rate of loans with interest rate reductions – before TDR	5.65		%	5.15		%	5.59		%	5.39		%	4.94		%	4.99		%	5.50		%	5.06		%	5.36		%
Weighted-average interest rate of loans with interest rate reductions – after TDR	3.80			2.99			2.93			3.46			2.64			2.34			3.60			2.83			2.70
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	24			24			24			19			21			18			21			23			22
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	38			38			38			39			39			38			38			38			38
Charge-offs recognized upon permanent modification	$	1		$	2		$	4		$	1		$	1		$	1		$	2		$	3		$	5
Principal deferred	21			12			30			9			10			23			30			22			53
Principal forgiven	10			20			44			7			13			7			17			33			51
Balance of loans that redefaulted within one year of permanent modification(a)	$	97		$	124		$	98		$	64		$	56		$	40		$	161		$	180		$	138

(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)	2018			2017			2016
Weighted-average interest rate of loans – before TDR	17.98		%	16.58		%	15.56		%
Weighted-average interest rate of loans – after TDR	5.16			4.88			4.76
Loans that redefaulted within one year of modification(a)(b)	$	116		$	93		$	74

(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.

(b)

The prior period amounts have been revised to conform with the current period presentation.

Certain loans acquired in transfer accretable yield movement roll forward

The table below presents the accretable yield activity for the Firm’s PCI consumer loans for the years ended December 31, 2018, 2017 and 2016, 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
	2018			2017			2016
Beginning balance	$	11,159		$	11,768		$	13,491
Accretion into interest income	(1,249		)	(1,396		)	(1,555		)
Changes in interest rates on variable-rate loans	(109		)	503			260
Other changes in expected cash flows(a)	(1,379		)	284			(428		)
Balance at December 31	$	8,422		$	11,159		$	11,768
Accretable yield percentage	4.92		%	4.53		%	4.35		%

(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.