LENDING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2021

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable

	December 31,			December 31,
(in millions)		2021		2020
Commercial mortgages(a)	$	35,665	$	36,424
Residential mortgages		5,492		4,645
Life insurance policy loans		1,843		1,986
Commercial loans, other loans and notes receivable(b)		3,677		3,321
Total mortgage and other loans receivable		46,677		46,376
Allowance for credit losses(c)		(629)		(814)
Mortgage and other loans receivable, net	$	46,048	$	45,562

(a) Commercial mortgages primarily represent loans for apartments, offices and retail properties, with exposures in New York and California representing the largest geographic concentrations (aggregating approximately 21 percent and 10 percent, respectively, at December 31, 2021 and 24 percent and 10 percent, respectively, at December 31, 2020).

(b) Includes loans held for sale which are carried at lower of cost or market and are collateralized primarily by hotels. As of December 31, 2021, the net carrying value of these loans was $15 million.

(c) Does not include allowance for credit losses of $71 million and $79 million, respectively, at December 31, 2021 and 2020, in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

Schedule of debt service coverage ratio and loan-to-value ratio for the commercial mortgage loans

December 31, 2021
(in millions)		2021		2020		2019		2018		2017		Prior		Total
>1.2X	$	2,245	$	1,662	$	5,126	$	3,926	$	3,557	$	10,796	$	27,312
1.00 - 1.20X		574		1,019		700		1,138		136		1,929		5,496
<1.00X		1		27		71		925		41		1,792		2,857
Total commercial mortgages	$	2,820	$	2,708	$	5,897	$	5,989	$	3,734	$	14,517	$	35,665
December 31, 2020
(in millions)		2020		2019		2018		2017		2016		Prior		Total
>1.2X	$	1,914	$	5,596	$	5,649	$	3,941	$	4,592	$	10,730	$	32,422
1.00 - 1.20X		770		467		456		144		161		1,106		3,104
<1.00X		4		86		343		87		96		282		898
Total commercial mortgages	$	2,688	$	6,149	$	6,448	$	4,172	$	4,849	$	12,118	$	36,424

December 31, 2021
(in millions)		2021		2020		2019		2018		2017		Prior		Total
Less than 65%	$	2,286	$	2,272	$	4,149	$	4,815	$	2,892	$	9,902	$	26,316
65% to 75%		372		410		1,748		1,174		406		3,490		7,600
76% to 80%		-		-		-		-		188		274		462
Greater than 80%		162		26		-		-		248		851		1,287
Total commercial mortgages	$	2,820	$	2,708	$	5,897	$	5,989	$	3,734	$	14,517	$	35,665
December 31, 2020
(in millions)		2020		2019		2018		2017		2016		Prior		Total
Less than 65%	$	2,382	$	3,755	$	3,855	$	2,565	$	2,852	$	8,145	$	23,554
65% to 75%		274		2,330		2,363		1,306		1,200		2,551		10,024
76% to 80%		28		45		30		-		70		515		688
Greater than 80%		4		19		200		301		727		907		2,158
Total commercial mortgages	$	2,688	$	6,149	$	6,448	$	4,172	$	4,849	$	12,118	$	36,424

(a) The debt service coverage ratio compares a property’s net operating income to its debt service payments, including principal and interest. Our weighted average debt service coverage ratio was 1.9X at December 31, 2021 and 2.2X at December 31, 2020. The debt service coverage ratios have been updated within the last three months. The debt service coverage ratios are updated when additional relevant information becomes available.

(b) The loan-to-value ratio compares the current unpaid principal balance of the loan to the estimated fair value of the underlying property collateralizing the loan. Our weighted average loan-to-value ratio was 57 percent at December 31, 2021 and was 60 percent at December 31, 2020. The loan-to-value ratios have been updated within the last three months.

Schedule of credit quality performance indicators for the commercial mortgages

	Number															Percent
	of	Class														of
(dollars in millions)	Loans	Apartments			Offices		Retail	Industrial			Hotel		Others		Total	Total $
December 31, 2021
Credit Quality Performance
Indicator:
In good standing	636	$	14,267	$	9,695	$	4,778	$	3,858	$	1,985	$	432	$	35,015	98	%
Restructured(a)	8		-		354		25		-		136		-		515	2
90 days or less delinquent	-		-		-		-		-		-		-		-	-
>90 days delinquent or in
process of foreclosure	5		-		81		54		-		-		-		135	-
Total(b)	649	$	14,267	$	10,130	$	4,857	$	3,858	$	2,121	$	432	$	35,665	100	%
Allowance for credit losses		$	109	$	247	$	103	$	47	$	31	$	8	$	545	2	%
December 31, 2020
Credit Quality Performance
Indicator:
In good standing	688	$	13,969	$	10,506	$	5,144	$	3,766	$	2,064	$	460	$	35,909	99	%
Restructured(a)	5		-		52		50		-		4		-		106	-
90 days or less delinquent	3		-		87		-		-		114		-		201	-
>90 days delinquent or in
process of foreclosure	4		-		67		55		-		86		-		208	1
Total(b)	700	$	13,969	$	10,712	$	5,249	$	3,766	$	2,268	$	460	$	36,424	100	%
Allowance for credit losses		$	145	$	267	$	145	$	53	$	65	$	10	$	685	2	%

(a)Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see below.

(b) Does not reflect allowance for credit losses.

The following table presents credit quality performance indicators for residential mortgages by year of vintage:

December 31, 2021
(in millions)		2021		2020		2019		2018		2017		Prior		Total
FICO*:
780 and greater	$	1,601	$	691	$	297	$	107	$	192	$	501	$	3,389
720 - 779		1,306		230		86		44		58		154		1,878
660 - 719		48		42		22		12		20		49		193
600 - 659		1		1		2		3		2		12		21
Less than 600		-		-		1		1		2		7		11
Total residential mortgages	$	2,956	$	964	$	408	$	167	$	274	$	723	$	5,492
December 31, 2020
(in millions)		2020		2019		2018		2017		2016		Prior		Total
FICO*:
780 and greater	$	522	$	619	$	283	$	469	$	539	$	484	$	2,916
720 - 779		478		349		103		155		180		156		1,421
660 - 719		19		61		28		42		51		58		259
600 - 659		1		5		6		7		4		12		35
Less than 600		-		-		1		2		2		9		14
Total residential mortgages	$	1,020	$	1,034	$	421	$	675	$	776	$	719	$	4,645

*Fair Isaac Corporation (FICO) is the credit quality indicator used to evaluate consumer credit risk for residential mortgage loan borrowers and have been updated within the last twelve months.

Schedule of changes in the allowance for credit losses on Mortgage and other loans receivable

Years Ended December 31,	2021						2020						2019
	Commercial			Other			Commercial			Other			Commercial				Other
(in millions)	Mortgages			Loans		Total	Mortgages			Loans		Total	Mortgages				Loans		Total
Allowance, beginning of year	$	685	$	129	$	814	$	336	$	102	$	438	$	318		$	79	$	397
Initial allowance upon CECL adoption		-		-		-		311		7		318		-			-		-
Loans charged off		(2)		-		(2)		(12)		(5)		(17)		(2)			(3)		(5)
Recoveries of loans previously
charged off		-		-		-		-		-		-		-			-		-
Net charge-offs		(2)		-		(2)		(12)		(5)		(17)		(2)			(3)		(5)
Addition to (release of) allowance
for loan losses		(138)		(26)		(164)		50		25		75		20			26		46
Divestitures		-		(19)		(19)		-		-		-		-			-		-
Allowance, end of year	$	545	$	84	$	629	$	685	$	129	$	814	$	336	(b)	$	102	$	438

(a) Does not include allowance for credit losses of $71 million and $79 million, respectively, at December 31, 2021 and 2020 in relation to off-balance-sheet commitments to fund commercial mortgage loans, which is recorded in Other liabilities.

(b) The December 31, 2019 total allowance was calculated prior to the adoption of ASC 326 on January 1, 2020. Of the total allowance, $10 million relates to individually assessed credit losses on $148 million of commercial mortgages at December 31, 2020.