Loans (Tables)

12 Months Ended

Dec. 31, 2020

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.

In conjunction with the adoption of CECL, the Firm revised its loan classes. Prior-period amounts have been revised to conform with the current presentation:

•The consumer, excluding credit card portfolio segment’s residential mortgage and home equity loans and lending-related commitments have been combined into a residential real estate class.

•Upon adoption of CECL, the Firm elected to discontinue the pool-level accounting for PCI loans and to account for these loans on an individual loan basis. PCI loans are considered PCD loans under CECL and are subject to the Firm’s nonaccrual and charge-off policies. PCD loans are now reported in the consumer, excluding credit card portfolio segment’s residential real estate class.

•Risk-rated business banking and auto dealer loans and lending-related commitments held in CCB were reclassified from the consumer, excluding credit card portfolio segment, to the wholesale portfolio segment, to align with the methodology applied when determining the allowance. The remaining scored auto and business banking loans and lending-related commitments have been combined into an auto and other class.

•The wholesale portfolio segment’s classes, previously based on the borrower’s primary business activity, have been revised to align with the loan classifications as defined by the bank regulatory agencies, based on the loan’s collateral, purpose, and type of borrower.

Consumer, excluding credit card	Credit card	Wholesale(c)
• Residential real estate(a) • Auto and other(b)	• Credit card loans	• Secured by real estate • Commercial and industrial • Other(d)

(a)Includes scored mortgage and home equity loans held in CCB and AWM, and scored mortgage loans held in CIB and Corporate.

(b)Includes scored auto and business banking loans and overdrafts.

(c)Includes loans held in CIB, CB, AWM, Corporate as well as risk-rated business banking and auto dealer loans held in CCB for which the wholesale methodology is applied when determining the allowance for loan losses.

(d)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Wealth Management clients within AWM). Refer to Note 14 for more information on SPEs.

Schedule of loans by portfolio segment

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

December 31, 2020	Consumer, excluding credit card			Credit card			Wholesale			Total(b)(c)
(in millions)
Retained		$	302,127		$	143,432		$	514,947		$	960,506
Held-for-sale		1,305			784			5,784			7,873
At fair value(a)		15,147			—			29,327			44,474
Total		$	318,579		$	144,216		$	550,058		$	1,012,853
December 31, 2019	Consumer, excluding credit card				Credit card			Wholesale			Total(b)(c)
(in millions)
Retained		$	294,999		$	168,924		$	481,678		$	945,601
Held-for-sale		3,002			—			4,062			7,064
At fair value(a)		19,816			—			25,139			44,955
Total		$	317,817		$	168,924		$	510,879		$	997,620

(a)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation.

(b)Excludes $2.9 billion of accrued interest receivables at both December 31, 2020 and 2019. The Firm wrote off accrued interest receivables of $121 million and $50 million for the years ended December 31, 2020 and 2019, respectively.

(c)Loans (other than 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, 2020 and 2019.

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

December 31, (in millions)	2020		2019
Residential real estate	$	225,302	$	243,317
Auto and other(a)	76,825		51,682
Total retained loans	$	302,127	$	294,999

(a)At December 31, 2020, included $19.2 billion of loans in Business Banking under the PPP.

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. Loans that were reclassified to held-for-sale and sold in a subsequent period are excluded from the sales line of this table.

		2020
Year ended December 31, (in millions)	Consumer, excluding credit card				Credit card			Wholesale			Total
Purchases		$	3,474	(b)(c)		$	—		$	1,159		$	4,633
Sales		352				—			17,916			18,268
Retained loans reclassified to held-for-sale(a)		2,084				787			1,580			4,451

		2019
Year ended December 31, (in millions)	Consumer, excluding credit card				Credit card			Wholesale			Total
Purchases		$	1,282	(b)(c)		$	—		$	1,291		$	2,573
Sales		30,474				—			23,445			53,919
Retained loans reclassified to held-for-sale(a)		9,188				—			2,371			11,559

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

(a)Reclassifications of loans to held-for-sale are non-cash transactions.

(b)Predominantly includes purchases of residential real estate loans, including the Firm’s voluntary repurchases of certain delinquent loans from loan pools as permitted by Government National Mortgage Association (“Ginnie Mae”) guidelines for the years ended December 31, 2020, 2019 and 2018. 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.

(c)Excludes purchases of retained loans sourced through the correspondent origination channel and underwritten in accordance with the Firm’s standards. Such purchases were $15.3 billion, $16.6 billion and $18.6 billion for the years ended December 31, 2020, 2019 and 2018, respectively.

Schedule of financing receivable credit quality indicators

The following table provides information on delinquency, which is the primary credit quality indicator for retained residential real estate loans.

(in millions, except ratios)	December 31, 2020																											December 31, 2019
	Term loans by origination year																		Revolving loans						Total			Total
	2020			2019			2018			2017			2016			Prior to 2016			Within the revolving period			Converted to term loans
Loan delinquency(a)(b)
Current	$	55,562		$	31,820		$	13,900		$	20,410		$	27,978		$	50,232		$	7,370		$	15,792		$	223,064		$	239,979
30–149 days past due	9			25			20			22			29			674			21			245			1,045			1,910
150 or more days past due	3			14			10			18			18			844			22			264			1,193			1,428
Total retained loans	$	55,574		$	31,859		$	13,930		$	20,450		$	28,025		$	51,750		$	7,413		$	16,301		$	225,302		$	243,317
% of 30+ days past due to total retained loans(c)	0.02		%	0.12		%	0.22		%	0.20		%	0.17		%	2.86		%	0.58		%	3.12		%	0.98		%	1.35		%

(a)Individual delinquency classifications include mortgage loans insured by U.S. government agencies as follows: current included $36 million and $17 million; 30–149 days past due included $16 million and $20 million; and 150 or more days past due included $24 million and $26 million at December 31, 2020 and 2019, respectively.

(b)At December 31, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent.

(c)At December 31, 2020 and 2019, residential real estate loans excluded mortgage loans insured by U.S. government agencies of $40 million and $46 million, respectively, that are 30 or more days past due. These amounts have been excluded based upon the government guarantee.

The following table provides information on nonaccrual and other credit quality indicators for retained residential real estate loans.

(in millions, except weighted-average data)	December 31, 2020			December 31, 2019
Nonaccrual loans(a)(b)(c)(d)(e)	$	5,313		$	2,780
90 or more days past due and government guaranteed(f)	33			38
Current estimated LTV ratios(g)(h)
Greater than 125% and refreshed FICO scores:
Equal to or greater than 660	$	10		$	31
Less than 660	18			38
101% to 125% and refreshed FICO scores:
Equal to or greater than 660	72			134
Less than 660	65			132
80% to 100% and refreshed FICO scores:
Equal to or greater than 660	2,365			5,953
Less than 660	435			764
Less than 80% and refreshed FICO scores:
Equal to or greater than 660	208,457			219,469
Less than 660	12,072			14,681
No FICO/LTV available	1,732			2,052
U.S. government-guaranteed	76			63
Total retained loans	$	225,302		$	243,317
Weighted average LTV ratio(g)(i)	54		%	55		%
Weighted average FICO(h)(i)	763			758
Geographic region(j)
California	$	73,444		$	82,147
New York	32,287			31,996
Florida	13,981			13,668
Texas	13,773			14,474
Illinois	13,130			15,587
Colorado	8,235			8,447
Washington	7,917			8,990
New Jersey	7,227			7,752
Massachusetts	5,784			6,210
Connecticut	5,024			4,954
All other(k)	44,500			49,092
Total retained loans	$	225,302		$	243,317

(a)Includes collateral-dependent residential real estate loans that are charged down to the lower of amortized cost or 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, 2020, approximately 7% of Chapter 7 residential real estate loans were 30 days or more past due, respectively.

(b)At December 31, 2020, nonaccrual loans included $1.6 billion of PCD loans. Prior to the adoption of CECL, nonaccrual loans excluded PCI loans as the Firm recognized interest income on each pool of PCI loans as each of the pools was performing.

(c)Generally, all consumer nonaccrual loans have an allowance. In accordance with regulatory guidance, certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to the charge down, the related allowance may be negative.

(d)Interest income on nonaccrual loans recognized on a cash basis was $161 million and $166 million for the years ended December 31, 2020 and 2019, respectively.

(e)Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic. Includes loans to customers that have exited COVID-19 payment deferral programs and are 90 or more days past due, predominantly all of which were also at least 150 days past due and therefore considered collateral-dependent. Collateral-dependent loans are charged down to the lower of amortized cost or fair value of the underlying collateral less costs to sell.

(f)These balances are 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, 2020 and 2019, these balances included $33 million and $34 million, 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, 2020 and 2019.

(g)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. Current estimated combined LTV for junior lien home equity loans considers all available lien positions, as well as unused lines, related to the property.

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

(i)Excludes loans with no FICO and/or LTV data available.

(j)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2020.

(k)At December 31, 2020 and 2019, included mortgage loans insured by U.S. government agencies of $76 million and $63 million, respectively. These amounts have been excluded from the geographic regions presented based upon the government guarantee.

The following table provides information on delinquency, which is the primary credit quality indicator for retained auto and other consumer loans.

	December 31, 2020																												December 31, 2019
(in millions, except ratios)	Term Loans by origination year																			Revolving loans
	2020				2019			2018			2017			2016			Prior to 2016			Within the revolving period			Converted to term loans			Total			Total
Loan delinquency(a)
Current	$	46,169		(b)	$	12,829		$	7,367		$	4,521		$	2,058		$	742		$	2,517		$	158		$	76,361		$	51,005
30–119 days past due	97				107			77			53			42			23			30			17			446			667
120 or more days past due	—				—			—			1			—			1			8			8			18			10
Total retained loans	$	46,266			$	12,936		$	7,444		$	4,575		$	2,100		$	766		$	2,555		$	183		$	76,825		$	51,682
% of 30+ days past due to total retained loans	0.21		%		0.83		%	1.03		%	1.18		%	2.00		%	3.13		%	1.49		%	13.66		%	0.60		%	1.31		%

(a)At December 31, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent.

(b)At December 31, 2020, included $19.2 billion of loans in Business Banking under the PPP. PPP loans are guaranteed by the SBA. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans.

The following table provides information on nonaccrual and other credit quality indicators for retained auto and other consumer loans.

(in millions, except ratios)	Total Auto and other
	December 31, 2020		December 31, 2019
Nonaccrual loans(a)(b)(c)	151		146
Geographic region(d)
California	$	12,302	$	7,795
New York	8,824		3,706
Texas	8,235		5,457
Florida	4,668		3,025
Illinois	3,768		2,443
New Jersey	2,646		1,798
Arizona	2,465		1,347
Ohio	2,163		1,490
Pennsylvania	1,924		1,721
Colorado	1,910		1,247
All other	27,920		21,653
Total retained loans	$	76,825	$	51,682

(a)There were no loans that were 90 or more days past due and still accruing interest at December 31, 2020 and 2019.

(b)All nonaccrual auto and other consumer loans generally have an allowance. Certain nonaccrual loans that are considered collateral-dependent have been charged down to the lower of amortized cost or the fair value of their underlying collateral less costs to sell. If the value of the underlying collateral improves subsequent to the charge down, the related allowance may be negative.

(c)Interest income on nonaccrual loans recognized on a cash basis was not material for the years ended December 31, 2020 and 2019.

(d)The geographic regions presented in this table are ordered based on the magnitude of the corresponding loan balances at December 31, 2020.

The following table provides information on delinquency, which is the primary credit quality indicator for retained credit card loans.

(in millions, except ratios)	December 31, 2020									December 31, 2019
	Within the revolving period			Converted to term loans(b)			Total			Total
Loan delinquency(a)
Current and less than 30 days past due and still accruing	$	139,783		$	1,239		$	141,022		$	165,767
30–89 days past due and still accruing	997			94			1,091			1,550
90 or more days past due and still accruing	1,277			42			1,319			1,607
Total retained loans	$	142,057		$	1,375		$	143,432		$	168,924
Loan delinquency ratios
% of 30+ days past due to total retained loans	1.60		%	9.89		%	1.68		%	1.87		%
% of 90+ days past due to total retained loans	0.90			3.05			0.92			0.95

(a)At December 31, 2020, loans under payment deferral programs offered in response to the COVID-19 pandemic which are still within their deferral period and performing according to their modified terms are generally not considered delinquent.

(b)Represents TDRs.

The following table provides information on other credit quality indicators for retained credit card loans.

(in millions, except ratios)	December 31, 2020			December 31, 2019
Geographic region(a)
California	$	20,921		$	25,783
Texas	14,544			16,728
New York	11,919			14,544
Florida	9,562			10,830
Illinois	8,006			9,579
New Jersey	5,927			7,165
Ohio	4,673			5,406
Pennsylvania	4,476			5,245
Colorado	4,092			4,763
Michigan	3,553			4,164
All other	55,759			64,717
Total retained loans	$	143,432		$	168,924
Percentage of portfolio based on carrying value with estimated refreshed FICO scores
Equal to or greater than 660	85.9		%	84.0		%
Less than 660	13.9			15.4
No FICO available	0.2			0.6

(a)The geographic regions presented in the table are ordered based on the magnitude of the corresponding loan balances at December 31, 2020.

The following tables provide information on internal risk rating, which is the primary credit quality indicator for retained wholesale loans.

December 31, (in millions, except ratios)	Secured by real estate						Commercial and industrial							Other(b)						Total retained loans
	2020			2019			2020				2019			2020			2019			2020				2019
Loans by risk ratings
Investment-grade	$	90,147		$	96,611		$	71,917		(a)	$	80,489		$	217,209		$	186,344		$	379,273		(a)	$	363,444
Noninvestment- grade:
Noncriticized	26,129			22,493			57,870				60,437			33,053			27,591			117,052				110,521
Criticized performing	3,234			1,131			10,991				4,399			1,079			1,126			15,304				6,656
Criticized nonaccrual	483			183			1,931				844			904			30			3,318				1,057
Total noninvestment- grade	29,846			23,807			70,792				65,680			35,036			28,747			135,674				118,234
Total retained loans	$	119,993		$	120,418		$	142,709			$	146,169		$	252,245		$	215,091		$	514,947			$	481,678
% of investment-grade to total retained loans	75.13		%	80.23		%	50.39		%		55.07		%	86.11		%	86.63		%	73.65		%		75.45		%
% of total criticized to total retained loans	3.10			1.09			9.05				3.59			0.79			0.54			3.62				1.60
% of criticized nonaccrual to total retained loans	0.40			0.15			1.35				0.58			0.36			0.01			0.64				0.22

	Secured by real estate
(in millions)	December 31, 2020																		December 31, 2019
	Term loans by origination year												Revolving loans
	2020		2019		2018		2017		2016		Prior to 2016		Within the revolving period		Converted to term loans		Total		Total
Loans by risk ratings
Investment-grade	$	16,560	$	19,575	$	12,192	$	11,017	$	13,439	$	16,266	$	1,098	$	—	$	90,147	$	96,611
Noninvestment-grade	3,327		4,339		4,205		2,916		2,575		11,994		489		1		29,846		23,807
Total retained loans	$	19,887	$	23,914	$	16,397	$	13,933	$	16,014	$	28,260	$	1,587	$	1	$	119,993	$	120,418

	Commercial and industrial
(in millions)	December 31, 2020																			December 31, 2019
	Term loans by origination year													Revolving loans
	2020			2019		2018		2017		2016		Prior to 2016		Within the revolving period		Converted to term loans		Total		Total
Loans by risk ratings
Investment-grade	$	21,211	(a)	$	7,304	$	2,934	$	1,748	$	1,032	$	1,263	$	36,424	$	1	$	71,917	$	80,489
Noninvestment-grade	15,060			8,636		5,131		2,104		497		2,439		36,852		73		70,792		65,680
Total retained loans	$	36,271		$	15,940	$	8,065	$	3,852	$	1,529	$	3,702	$	73,276	$	74	$	142,709	$	146,169

	Other(b)
(in millions)	December 31, 2020																		December 31, 2019
	Term loans by origination year												Revolving loans
	2020		2019		2018		2017		2016		Prior to 2016		Within the revolving period		Converted to term loans		Total		Total
Loans by risk ratings
Investment-grade	$	31,389	$	10,169	$	6,994	$	6,206	$	3,553	$	12,595	$	145,524	$	779	$	217,209	$	186,344
Noninvestment-grade	5,009		2,220		1,641		550		146		636		24,710		124		35,036		28,747
Total retained loans	$	36,398	$	12,389	$	8,635	$	6,756	$	3,699	$	13,231	$	170,234	$	903	$	252,245	$	215,091

(a)At December 31, 2020, included $8.0 billion of loans under the PPP, of which $7.4 billion is included in commercial and industrial. PPP loans are guaranteed by the SBA and considered investment-grade. Other than in certain limited circumstances, the Firm typically does not recognize charge-offs, classify as nonaccrual nor record an allowance for loan losses on these loans.

(b)Includes loans to financial institutions, states and political subdivisions, SPEs, nonprofits, personal investment companies and trusts, as well as loans to individuals and individual entities (predominantly Wealth Management clients within AWM). Refer to Note 14 for more information on SPEs.

The following table presents additional information on retained loans secured by real estate within the Wholesale portfolio, which consists of loans secured wholly or substantially by a lien or liens on real property at origination. Multifamily lending includes financing for acquisition, leasing and construction of apartment buildings. Other commercial lending largely includes financing for acquisition, leasing and construction, largely for office, retail and industrial real estate. Included in secured by real estate loans is $6.4 billion and $6.3 billion as of December 31, 2020 and 2019, respectively, of construction and development loans made to finance land development and on-site construction of commercial, industrial, residential, or farm buildings.

December 31, (in millions, except ratios)	Multifamily						Other Commercial						Total retained loans secured by real estate
	2020			2019			2020			2019			2020			2019
Retained loans secured by real estate	$	73,078		$	73,840		$	46,915		$	46,578		$	119,993		$	120,418
Criticized	1,144			340			2,573			974			3,717			1,314
% of total criticized to total retained loans secured by real estate	1.57		%	0.46		%	5.48		%	2.09		%	3.10		%	1.09		%
Criticized nonaccrual	$	56		$	28		$	427		$	155		$	483		$	183
% of criticized nonaccrual loans to total retained loans secured by real estate	0.08		%	0.04		%	0.91		%	0.33		%	0.40		%	0.15		%

The following table provides additional information about retained wholesale loans, including geographic distribution, delinquency and net charge-offs.

	Secured by real estate						Commercial and industrial						Other						Total retained loans
December 31, (in millions)	2020			2019			2020			2019			2020			2019			2020			2019
Loans by geographic distribution(a)
Total U.S.	$	116,990		$	117,836		$	109,273		$	111,954		$	180,583		$	150,512		$	406,846		$	380,302
Total non-U.S.	3,003			2,582			33,436			34,215			71,662			64,579			108,101			101,376
Total retained loans	$	119,993		$	120,418		$	142,709		$	146,169		$	252,245		$	215,091		$	514,947		$	481,678
Loan delinquency(b)
Current and less than 30 days past due and still accruing	$	118,894		$	120,119		$	140,100		$	144,839		$	249,713		$	214,641		$	508,707		$	479,599
30–89 days past due and still accruing	601			115			658			449			1,606			415			2,865			979
90 or more days past due and still accruing(c)	15			1			20			37			22			5			57			43
Criticized nonaccrual	483			183			1,931			844			904			30			3,318			1,057
Total retained loans	$	119,993		$	120,418		$	142,709		$	146,169		$	252,245		$	215,091		$	514,947		$	481,678
Net charge-offs/(recoveries)	$	10		$	44		$	737		$	335		$	52		$	36		$	799		$	415
% of net charge-offs/(recoveries) to end-of-period retained loans	0.01		%	0.04		%	0.52		%	0.23		%	0.02		%	0.02		%	0.16		%	0.09		%

(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. Generally excludes loans under payment deferral programs offered in response to the COVID-19 pandemic.

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

Troubled debt restructuring on financing receivables nature and extent of modifications

The following table provides information about how residential real estate loans were modified in TDRs 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, loans with short-term or other insignificant modifications that are not considered concessions, and loans for which the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act.

Year ended December 31,	2020		2019		2018
Number of loans approved for a trial modification	5,522		5,872		7,175
Number of loans permanently modified	6,850		4,918		7,853
Concession granted:(a)
Interest rate reduction	50	%	77	%	54	%
Term or payment extension	49		71		62
Principal and/or interest deferred	14		13		29
Principal forgiveness	2		5		7
Other(b)	66		63		51

(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 and payment delays that meet the definition of a TDR for the years ended December 31, 2020, 2019 and 2018.

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 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 do 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, loans with short-term or other insignificant modifications that are not considered concessions, and loans for which the Firm has elected to apply the option to suspend the application of accounting guidance for TDRs as provided by the CARES Act and extended by the Consolidated Appropriations Act.

Year ended December 31, (in millions, except weighted - average data)	2020			2019			2018
Weighted-average interest rate of loans with interest rate reductions – before TDR	5.09		%	5.68		%	5.50		%
Weighted-average interest rate of loans with interest rate reductions – after TDR	3.28			3.81			3.60
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – before TDR	22			20			21
Weighted-average remaining contractual term (in years) of loans with term or payment extensions – after TDR	39			39			38
Charge-offs recognized upon permanent modification	$	5		$	1		$	2
Principal deferred	16			19			30
Principal forgiven	5			7			17
Balance of loans that redefaulted within one year of permanent modification(a)	$	199		$	166		$	161

(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 will generally be liquidated through foreclosure or another similar type of liquidation transaction. Redefaults of loans modified within the last twelve 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. For all periods disclosed, new enrollments were less than 1% of total retained credit card loans.

Year ended December 31, (in millions, except weighted-average data)	2020			2019			2018
Balance of new TDRs(a)	$	818		$	961		$	866
Weighted-average interest rate of loans – before TDR	18.04		%	19.07		%	17.98		%
Weighted-average interest rate of loans – after TDR	4.64			4.70			5.16
Balance of loans that redefaulted within one year of modification(b)	$	110		$	148		$	116

(a)Represents the outstanding balance prior to modification.

(b)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.

Schedule of nonaccrual loans

The following table provides information on retained wholesale nonaccrual loans.

December 31, (in millions)	Secured by real estate				Commercial and industrial				Other				Total retained loans
	2020		2019		2020		2019		2020		2019		2020		2019
Nonaccrual loans(a)
With an allowance	$	351	$	169	$	1,667	$	688	$	800	$	28	$	2,818	$	885
Without an allowance(b)	132		14		264		156		104		2		500		172
Total nonaccrual loans(c)	$	483	$	183	$	1,931	$	844	$	904	$	30	$	3,318	$	1,057

(a)Loans that were modified in response to the COVID-19 pandemic continue to be risk-rated in accordance with the Firm’s overall credit risk management framework. As of December 31, 2020, predominantly all of these loans were considered performing.

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

(c)Interest income on nonaccrual loans recognized on a cash basis were not material for the years ended December 31, 2020 and 2019.