Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2022

The composition of the loan portfolio, disaggregated by class and underlying specific portfolio type, was as follows:


	March 31, 2022					December 31, 2021
(Dollars in Millions)	Amount		Percent of Total			Amount		Percent of Total
Commercial
Commercial	$	112,479		35.3	%	$	106,912		34.3	%
Lease financing		4,991		1.6			5,111		1.6
Total commercial		117,470		36.9			112,023		35.9
Commercial Real Estate
Commercial mortgages		29,501		9.3			28,757		9.2
Construction and development		9,690		3.0			10,296		3.3
Total commercial real estate		39,191		12.3			39,053		12.5
Residential Mortgages
Residential mortgages		69,680		21.8			67,546		21.6
Home equity loans, first liens		8,807		2.8			8,947		2.9
Total residential mortgages		78,487		24.6			76,493		24.5
Credit Card		22,163		6.9			22,500		7.2
Other Retail
Retail leasing		6,941		2.2			7,256		2.3
Home equity and second mortgages		10,457		3.3			10,446		3.4
Revolving credit		2,652		.8			2,750		.9
Installment		16,732		5.2			16,514		5.3
Automobile		24,724		7.8			24,866		8.0
Student		117		--			127		--
Total other retail		61,623		19.3			61,959		19.9
Total loans	$	318,934		100.0	%	$	312,028		100.0	%

Activity in Allowance for Credit Losses by Portfolio Class

Activity in the allowance for credit losses by portfolio class was as follows:


(Dollars in Millions)	Commercial			Commercial Real Estate			Residential Mortgages			Credit Card			Other Retail			Total Loans
Balance at December 31, 2021		$1,849			$1,123			$565			$1,673			$ 945			$6,155
Add
Provision for credit losses		19			(54	)		29			78			40			112
Deduct
Loans charged-off		55			1			5			158			61			280
Less recoveries of loans charged-off		(23	)		(6	)		(11	)		(46	)		(32	)		(118	)
Net loan charge-offs (recoveries)		32			(5	)		(6	)		112			29			162
Balance at March 31, 2022		$1,836			$1,074			$600			$1,639			$956			$6,105
Balance at December 31, 2020		$2,423			$1,544			$573			$2,355			$1,115			$8,010
Add
Provision for credit losses		(435	)		(19	)		(39	)		(259	)		(75	)		(827	)
Deduct
Loans charged-off		86			10			5			190			83			374
Less recoveries of loans charged-off		(30	)		(17	)		(10	)		(46	)		(48	)		(151	)
Net loan charge-offs (recoveries)		56			(7	)		(5	)		144			35			223
Balance at March 31, 2021		$1,932			$1,532			$539			$1,952			$1,005			$6,960

Summary of Loans by Portfolio Class, Including Delinquency Status of those that Continue to Accrue Interest and are Nonperforming

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:


	Accruing
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming (b)		Total
March 31, 2022
Commercial	$	116,986		$ 234		$ 76		$ 174		$117,470
Commercial real estate		38,888		86		1		216		39,191
Residential mortgages (a)		78,028		105		140		214		78,487
Credit card		21,804		194		165		—		22,163
Other retail		61,157		237		68		161		61,623
Total loans	$	316,863		$ 856		$450		$ 765		$318,934
December 31, 2021
Commercial	$	111,270		$530		$49		$ 174		$112,023
Commercial real estate		38,678		80		11		284		39,053
Residential mortgages (a)		75,962		124		181		226		76,493
Credit card		22,142		193		165		—		22,500
Other retail		61,468		275		66		150		61,959
Total loans	$	309,520		$1,202		$472		$ 834		$312,028

(a)

At March 31, 2022, $662 million of loans 30–89 days past due and $1.3 billion of loans 90 days or more past due purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $791 million and $1.5 billion at December 31, 2021, respectively.

(b)	Substantially all nonperforming loans at March 31, 2022 and December 31, 2021, had an associated allowance for credit losses. The Company recognized interest income on nonperforming loans of $3 million for the three months ended March 31, 2022 and 2021.

Summary of Loans by Portfolio Class and Company's Internal Credit Quality Rating

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:


	March 31, 2022										December 31, 2021
			Criticized										Criticized
(Dollars in Millions)	Pass		Special Mention		Classified (a)		Total Criticized		Total		Pass		Special Mention		Classified (a)		Total Criticized		Total
Commercial
Originated in 2022		$ 13,554		$ 8		$ 45		$ 53		$ 13,607		$ –		$ –		$ –		$ –		$ –
Originated in 2021		47,131		378		283		661		47,792		51,155		387		287		674		51,829
Originated in 2020		11,779		38		312		350		12,129		14,091		304		133		437		14,528
Originated in 2019		8,761		24		99		123		8,884		10,159		151		54		205		10,364
Originated in 2018		4,475		11		44		55		4,530		5,122		3		36		39		5,161
Originated prior to 2018		4,251		17		49		66		4,317		4,923		30		81		111		5,034
Revolving		25,756		261		194		455		26,211		24,722		268		117		385		25,107
Total commercial		115,707		737		1,026		1,763		117,470		110,172		1,143		708		1,851		112,023

Commercial real estate
Originated in 2022		3,170		110		185		295		3,465		–		–		–		–		–
Originated in 2021		12,419		17		705		722		13,141		13,364		6		990		996		14,360
Originated in 2020		6,907		78		241		319		7,226		7,459		198		263		461		7,920
Originated in 2019		5,750		310		556		866		6,616		6,368		251		610		861		7,229
Originated in 2018		2,847		42		213		255		3,102		2,996		29		229		258		3,254
Originated prior to 2018		3,898		19		152		171		4,069		4,473		55		224		279		4,752
Revolving		1,530		–		42		42		1,572		1,494		1		43		44		1,538
Total commercial real estate		36,521		576		2,094		2,670		39,191		36,154		540		2,359		2,899		39,053

Residential mortgages (b)
Originated in 2022		6,431		–		–		–		6,431		–		–		–		–		–
Originated in 2021		29,721		–		4		4		29,725		29,882		–		3		3		29,885
Originated in 2020		14,850		–		10		10		14,860		15,948		1		8		9		15,957
Originated in 2019		6,154		–		23		23		6,177		6,938		–		36		36		6,974
Originated in 2018		2,553		–		20		20		2,573		2,889		–		30		30		2,919
Originated prior to 2018		18,407		–		313		313		18,720		20,415		–		342		342		20,757
Revolving		1		–		–		–		1		1		–		–		–		1
Total residential mortgages		78,117		–		370		370		78,487		76,073		1		419		420		76,493

Credit card (c)		21,998		–		165		165		22,163		22,335		–		165		165		22,500

Other retail
Originated in 2022		4,644		–		–		–		4,644		–		–		–		–		–
Originated in 2021		20,495		–		7		7		20,502		22,455		–		6		6		22,461
Originated in 2020		10,972		–		9		9		10,981		12,071		–		9		9		12,080
Originated in 2019		6,327		–		14		14		6,341		7,223		–		17		17		7,240
Originated in 2018		2,675		–		12		12		2,687		3,285		–		14		14		3,299
Originated prior to 2018		3,174		–		20		20		3,194		3,699		–		24		24		3,723
Revolving		12,644		–		127		127		12,771		12,532		–		112		112		12,644
Revolving converted to term		460		–		43		43		503		472		–		40		40		512
Total other retail		61,391		–		232		232		61,623		61,737		–		222		222		61,959
Total loans		$313,734		$1,313		$3,887		$ 5,200		$318,934		$306,471		$1,684		$3,873		$ 5,557		$312,028
Total outstanding commitments		$678,366		$2,372		$5,684		$8,056		$686,422		$662,363		$3,372		$5,684		$ 9,056		$671,419

Note:

Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended.

(a)	Classified rating on consumer loans primarily based on delinquency status.

(b)

At March 31, 2022, $1.3 billion of GNMA loans 90 days or more past due and $978 million of restructured GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $1.5 billion and $1.1 billion at December 31, 2021, respectively.

(c)	All credit card loans are considered revolving loans.

Summary of Loans Modified as TDRs

The following table provides a summary of loans modified as TDRs for the periods presented by portfolio class:


	2022						2021
Three Months Ended March 31 (Dollars in Millions)	Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance		Number of Loans		Pre-Modification Outstanding Loan Balance		Post-Modification Outstanding Loan Balance
Commercial		509		$ 38		$ 32		704		$ 75		$ 60
Commercial real estate		9		11		10		56		86		71
Residential mortgages		840		228		226		336		104		104
Credit card		9,339		50		50		5,786		33		34
Other retail		728		37		37		1,325		37		32
Total loans, excluding loans purchased from GNMA mortgage pools		11,425		364		355		8,207		335		301
Loans purchased from GNMA mortgage pools		390		55		55		559		87		89
Total loans		11,815		$ 419		$410		8,766		$ 422		$ 390

Summary of Loans Modified as TDRs in the Past Twelve Months that have Subsequently Defaulted

The following table provides a summary of TDR loans that defaulted (fully or partially

charged-off

or became 90 days or more past due) for the periods presented, that were modified as TDRs within 12 months previous to default:


Three Months Ended March 31 (Dollars in Millions)	2022				2021
Three Months Ended March 31 (Dollars in Millions)	Number of Loans		Amount Defaulted		Number of Loans		Amount Defaulted
Commercial		214		$ 3		285		$ 16
Commercial real estate		3		1		7		5
Residential mortgages		34		3		15		2
Credit card		1,634		9		1,764		9
Other retail		83		1		280		5
Total loans, excluding loans purchased from GNMA mortgage pools		1,968		17		2,351		37
Loans purchased from GNMA mortgage pools		49		8		30		4
Total loans		2,017		$25		2,381		$ 41