Loans and Related Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2022

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Loans Outstanding

Table 4.1 presents total loans outstanding by portfolio segment and class of financing receivable. Outstanding balances include unearned income, net deferred loan fees or costs, and unamortized discounts and premiums. These amounts were less

than 1% of our total loans outstanding at September 30, 2022, and December 31, 2021.

Outstanding balances exclude accrued interest receivable on loans, except for certain revolving loans, such as credit card loans.

See Note 7 (Other Assets) for additional information on accrued interest receivable. Amounts considered to be uncollectible are reversed through interest income. During the first nine months of 2022, we reversed accrued interest receivable of $26 million for our commercial portfolio segment and $100 million for our consumer portfolio segment, compared with $36 million and $143 million, respectively, for the same period a year ago.

Table 4.1: Loans Outstanding

(in millions)	Sep 30, 2022		Dec 31, 2021
Commercial:
Commercial and industrial	$	379,694	350,436
Real estate mortgage	133,770		127,733
Real estate construction	21,889		20,092
Lease financing	14,617		14,859
Total commercial	549,970		513,120
Consumer:
Residential mortgage – first lien	254,165		242,270
Residential mortgage – junior lien	13,900		16,618
Credit card	43,558		38,453
Auto	54,545		56,659
Other consumer	29,768		28,274
Total consumer	395,936		382,274
Total loans	$	945,906	895,394

Our non-U.S. loans are reported by respective class of financing receivable in the table above. Substantially all of our non-U.S. loan portfolio is commercial loans. Table 4.2 presents total non-U.S. commercial loans outstanding by class of financing receivable.

Table 4.2: Non-U.S. Commercial Loans Outstanding

(in millions)	Sep 30, 2022		Dec 31, 2021
Non-U.S. commercial loans:
Commercial and industrial	$	78,930	77,365
Real estate mortgage	5,991		7,070
Real estate construction	1,368		1,582
Lease financing	651		680
Total non-U.S. commercial loans	$	86,940	86,697

Loan Purchases, Sales, and Transfers

Table 4.3 presents the proceeds paid or received for purchases and sales of loans and transfers from loans held for investment to mortgages/loans held for sale. The table excludes loans for which we have elected the fair value option and government insured/guaranteed residential mortgage – first lien loans because their loan activity normally does not impact the ACL.

Table 4.3: Loan Purchases, Sales, and Transfers

	2022				2021
(in millions)	Commercial		Consumer	Total	Commercial	Consumer	Total
Quarter ended September 30,
Purchases	$	127	1	128	124	1	125
Sales and net transfers (to)/from LHFS	(785)		(1,118)	(1,903)	(1,186)	(11)	(1,197)
Nine months ended September 30,
Purchases	$	503	3	506	306	3	309
Sales and net transfers (to)/from LHFS	(2,097)		(1,141)	(3,238)	(2,318)	(235)	(2,553)

Unfunded Credit Commitments

The contractual amount of our unfunded credit commitments, including unissued letters of credit, is summarized in Table 4.4. The table excludes issued letters of credit and is presented net of commitments syndicated to others, including the fronting arrangements described above.

Table 4.4: Unfunded Credit Commitments

(in millions)	Sep 30, 2022		Dec 31, 2021
Commercial:
Commercial and industrial	$	409,832	388,162
Real estate mortgage	9,524		11,515
Real estate construction	22,177		19,943
Total commercial	441,533		419,620
Consumer:
Residential mortgage – first lien	21,662		32,992
Residential mortgage – junior lien	22,744		27,447
Credit card	142,519		130,743
Other consumer	65,440		75,919
Total consumer	252,365		267,101
Total unfunded credit commitments	$	693,898	686,721

Allowance for Credit Losses for Loans

Table 4.5 presents the allowance for credit losses (ACL) for loans, which consists of the allowance for loan losses and the allowance for unfunded credit commitments. The ACL for loans decreased $563 million from December 31, 2021, reflecting reduced uncertainty around the economic impact of the COVID-19 pandemic on our loan portfolio. This decrease was partially offset by loan growth and a less favorable economic environment.

Table 4.5: Allowance for Credit Losses for Loans

	Quarter ended September 30,				Nine months ended September 30,
($ in millions)	2022			2021	2022		2021
Balance, beginning of period	$	12,884		16,391	$	13,788	19,713
Provision for credit losses	773			(1,387)	576		(3,743)
Interest income on certain loans (1)	(26)			(35)	(82)		(112)
Loan charge-offs:
Commercial:
Commercial and industrial	(85)			(144)	(209)		(452)
Real estate mortgage	(3)			(5)	(6)		(68)
Real estate construction	—			(1)	—		(1)
Lease financing	(11)			(7)	(20)		(38)
Total commercial	(99)			(157)	(235)		(559)
Consumer:
Residential mortgage – first lien	(27)			(10)	(78)		(33)
Residential mortgage – junior lien	(16)			(15)	(58)		(46)
Credit card	(290)			(258)	(844)		(950)
Auto	(199)			(107)	(515)		(364)
Other consumer	(105)			(107)	(307)		(333)
Total consumer	(637)			(497)	(1,802)		(1,726)
Total loan charge-offs	(736)			(654)	(2,037)		(2,285)
Loan recoveries:
Commercial:
Commercial and industrial	72			98	192		237
Real estate mortgage	15			15	27		37
Real estate construction	—			—	—		1
Lease financing	6			6	16		17
Total commercial	93			119	235		292
Consumer:
Residential mortgage – first lien	28			24	85		90
Residential mortgage – junior lien	29			43	102		124
Credit card	88			100	267		300
Auto	78			81	230		241
Other consumer	21			28	70		85
Total consumer	244			276	754		840
Total loan recoveries	337			395	989		1,132
Net loan charge-offs	(399)			(259)	(1,048)		(1,153)
Other	(7)			(5)	(9)		—
Balance, end of period	$	13,225		14,705	$	13,225	14,705
Components:
Allowance for loan losses	$	12,571		13,517	$	12,571	13,517
Allowance for unfunded credit commitments	654			1,188	654		1,188
Allowance for credit losses	$	13,225		14,705	$	13,225	14,705
Net loan charge-offs (annualized) as a percentage of average total loans	0.17		%	0.12	0.15		0.18
Allowance for loan losses as a percentage of total loans	1.33			1.57	1.33		1.57
Allowance for credit losses for loans as a percentage of total loans	1.40			1.70	1.40		1.70

(1)Loans with an allowance measured by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize changes in allowance attributable to the passage of time as interest income.

Allowance for Credit Losses for Loans Activity by Portfolio Segment

Table 4.6 summarizes the activity in the ACL by our commercial and consumer portfolio segments. 

Table 4.6: Allowance for Credit Losses for Loans Activity by Portfolio Segment

	2022				2021
(in millions)	Commercial		Consumer	Total	Commercial	Consumer	Total
Quarter ended September 30,
Balance, beginning of period	$	7,082	5,802	12,884	9,570	6,821	16,391
Provision for credit losses	(72)		845	773	(949)	(438)	(1,387)
Interest income on certain loans (1)	(6)		(20)	(26)	(13)	(22)	(35)
Loan charge-offs	(99)		(637)	(736)	(157)	(497)	(654)
Loan recoveries	93		244	337	119	276	395
Net loan charge-offs	(6)		(393)	(399)	(38)	(221)	(259)
Other	(7)		—	(7)	(5)	—	(5)
Balance, end of period	$	6,991	6,234	13,225	8,565	6,140	14,705
Nine months ended September 30,
Balance, beginning of period	$	7,791	5,997	13,788	11,516	8,197	19,713
Provision for credit losses	(769)		1,345	576	(2,637)	(1,106)	(3,743)
Interest income on certain loans (1)	(22)		(60)	(82)	(47)	(65)	(112)
Loan charge-offs	(235)		(1,802)	(2,037)	(559)	(1,726)	(2,285)
Loan recoveries	235		754	989	292	840	1,132
Net loan charge-offs	—		(1,048)	(1,048)	(267)	(886)	(1,153)
Other	(9)		—	(9)	—	—	—
Balance, end of period	$	6,991	6,234	13,225	8,565	6,140	14,705

(1)Loans with an allowance measured by discounting expected cash flows using the loan’s effective interest rate over the remaining life of the loan recognize changes in allowance attributable to the passage of time as interest income.

Commercial Loan Categories by Risk Categories and Vintage

Table 4.7 provides the outstanding balances of our commercial loan portfolio by risk category and credit quality information by origination year for term loans. Revolving loans may convert to term loans as a result of a contractual provision in the original loan agreement or if modified in a troubled

debt restructuring (TDR). At September 30, 2022, we had $527.1 billion and $22.8 billion of pass and criticized commercial loans, respectively.

Table 4.7: Commercial Loan Categories by Risk Categories and Vintage

	Term loans by origination year							Revolving loans	Revolving loans converted to term loans	Total
(in millions)	2022		2021	2020	2019	2018	Prior
September 30, 2022
Commercial and industrial
Pass	$	52,868	32,696	10,356	14,288	4,400	6,921	246,965	891	369,385
Criticized	725		1,031	591	699	729	657	5,877	—	10,309
Total commercial and industrial	53,593		33,727	10,947	14,987	5,129	7,578	252,842	891	379,694
Real estate mortgage
Pass	28,890		33,333	13,802	14,402	10,643	17,535	5,055	23	123,683
Criticized	1,371		2,314	729	2,568	1,098	1,836	171	—	10,087
Total real estate mortgage	30,261		35,647	14,531	16,970	11,741	19,371	5,226	23	133,770
Real estate construction
Pass	3,686		6,855	3,591	3,533	906	533	1,352	—	20,456
Criticized	592		370	173	220	63	2	13	—	1,433
Total real estate construction	4,278		7,225	3,764	3,753	969	535	1,365	—	21,889
Lease financing
Pass	3,274		3,591	2,267	1,651	905	1,930	—	—	13,618
Criticized	221		271	173	177	108	49	—	—	999
Total lease financing	3,495		3,862	2,440	1,828	1,013	1,979	—	—	14,617
Total commercial loans	$	91,627	80,461	31,682	37,538	18,852	29,463	259,433	914	549,970
	Term loans by origination year							Revolving loans	Revolving loans converted to term loans	Total
	2021		2020	2019	2018	2017	Prior
December 31, 2021
Commercial and industrial
Pass	$	65,562	15,193	20,553	7,400	3,797	13,985	211,452	679	338,621
Criticized	1,657		884	1,237	1,256	685	551	5,528	17	11,815
Total commercial and industrial	67,219		16,077	21,790	8,656	4,482	14,536	216,980	696	350,436
Real estate mortgage
Pass	38,196		15,929	19,013	12,618	7,451	16,026	5,411	3	114,647
Criticized	3,462		1,119	2,975	1,834	875	2,421	400	—	13,086
Total real estate mortgage	41,658		17,048	21,988	14,452	8,326	18,447	5,811	3	127,733
Real estate construction
Pass	5,895		4,058	4,549	2,167	379	329	1,042	2	18,421
Criticized	510		266	586	234	68	7	—	—	1,671
Total real estate construction	6,405		4,324	5,135	2,401	447	336	1,042	2	20,092
Lease financing
Pass	4,100		3,012	2,547	1,373	838	1,805	—	—	13,675
Criticized	284		246	282	184	86	102	—	—	1,184
Total lease financing	4,384		3,258	2,829	1,557	924	1,907	—	—	14,859
Total commercial loans	$	119,666	40,707	51,742	27,066	14,179	35,226	223,833	701	513,120

Commercial Loan Categories by Delinquency Status

Table 4.8 provides past due information for commercial loans, which we monitor as part of our credit risk management

practices; however, delinquency is not a primary credit quality indicator for commercial loans.

Table 4.8: Commercial Loan Categories by Delinquency Status

(in millions)	Commercial and industrial		Real estate mortgage	Real estate construction	Lease financing	Total
September 30, 2022
By delinquency status:
Current-29 days past due (DPD) and still accruing	$	376,262	132,528	21,697	14,346	544,833
30-89 DPD and still accruing	1,991		321	157	163	2,632
90+ DPD and still accruing	699		71	32	—	802
Nonaccrual loans	742		850	3	108	1,703
Total commercial loans	$	379,694	133,770	21,889	14,617	549,970
December 31, 2021
By delinquency status:
Current-29 DPD and still accruing	$	348,033	126,184	19,900	14,568	508,685
30-89 DPD and still accruing	1,217		285	179	143	1,824
90+ DPD and still accruing	206		29	—	—	235
Nonaccrual loans	980		1,235	13	148	2,376
Total commercial loans	$	350,436	127,733	20,092	14,859	513,120

Consumer Loan Categories by Delinquency Status and Vintage

Table 4.9 provides the outstanding balances of our consumer loan portfolio by delinquency status. Credit quality information is provided with the year of origination for term loans. Revolving loans may convert to term loans as a result of a contractual provision in the original loan agreement or if modified in a TDR. The revolving loans converted to term loans in the credit card loan category represent credit card loans with modified terms that require payment over a specific term.

Payment deferral activities in the residential mortgage portfolio instituted in response to the COVID-19 pandemic could continue to delay the recognition of delinquencies for residential mortgage customers who otherwise would have moved into past due status.

Table 4.9: Consumer Loan Categories by Delinquency Status and Vintage

	Term loans by origination year							Revolving loans	Revolving loans converted to term loans
(in millions)	2022		2021	2020	2019	2018	Prior			Total
September 30, 2022
Residential mortgage – first lien
By delinquency status:
Current-29 DPD	$	43,335	66,404	37,806	21,208	6,316	63,103	3,836	1,989	243,997
30-59 DPD	91		53	19	29	12	487	13	41	745
60-89 DPD	6		9	2	5	4	134	6	18	184
90-119 DPD	1		3	—	2	3	56	3	13	81
120-179 DPD	—		6	6	5	3	86	5	15	126
180+ DPD	—		5	11	17	18	432	9	116	608
Government insured/guaranteed loans (1)	5		54	135	144	203	7,883	—	—	8,424
Total residential mortgage – first lien	43,438		66,534	37,979	21,410	6,559	72,181	3,872	2,192	254,165
Residential mortgage – junior lien
By delinquency status:
Current-29 DPD	21		32	17	22	20	554	8,109	4,830	13,605
30-59 DPD	—		—	—	—	—	10	19	46	75
60-89 DPD	—		—	—	—	—	3	8	24	35
90-119 DPD	—		—	—	—	—	2	4	15	21
120-179 DPD	—		—	—	—	—	4	4	20	28
180+ DPD	—		—	—	—	—	16	17	103	136
Total residential mortgage – junior lien	21		32	17	22	20	589	8,161	5,038	13,900
Credit cards
By delinquency status:
Current-29 DPD	—		—	—	—	—	—	42,580	208	42,788
30-59 DPD	—		—	—	—	—	—	232	13	245
60-89 DPD	—		—	—	—	—	—	156	10	166
90-119 DPD	—		—	—	—	—	—	133	8	141
120-179 DPD	—		—	—	—	—	—	214	4	218
180+ DPD	—		—	—	—	—	—	—	—	—
Total credit cards	—		—	—	—	—	—	43,315	243	43,558
Auto
By delinquency status:
Current-29 DPD	15,792		21,136	8,472	5,382	1,806	670	—	—	53,258
30-59 DPD	105		376	180	124	53	41	—	—	879
60-89 DPD	37		133	61	39	15	14	—	—	299
90-119 DPD	15		52	19	13	5	4	—	—	108
120-179 DPD	—		1	—	—	—	—	—	—	1
180+ DPD	—		—	—	—	—	—	—	—	—
Total auto	15,949		21,698	8,732	5,558	1,879	729	—	—	54,545
Other consumer
By delinquency status:
Current-29 DPD	2,975		1,372	409	337	86	98	24,284	123	29,684
30-59 DPD	7		8	2	2	1	2	9	3	34
60-89 DPD	3		5	1	1	—	—	5	2	17
90-119 DPD	2		5	1	1	—	—	5	2	16
120-179 DPD	—		—	—	—	—	—	6	2	8
180+ DPD	—		—	—	—	—	1	—	8	9
Total other consumer	2,987		1,390	413	341	87	101	24,309	140	29,768
Total consumer loans	$	62,395	89,654	47,141	27,331	8,545	73,600	79,657	7,613	395,936

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	Term loans by origination year							Revolving loans	Revolving loans converted to term loans
(in millions)	2021		2020	2019	2018	2017	Prior			Total
December 31, 2021
Residential mortgage – first lien
By delinquency status:
Current-29 DPD	$	69,994	41,527	24,887	7,660	13,734	61,576	5,248	1,673	226,299
30-59 DPD	129		27	30	12	24	418	14	29	683
60-89 DPD	10		7	2	—	3	126	7	15	170
90-119 DPD	—		1	1	1	5	53	4	9	74
120-179 DPD	1		16	2	2	1	63	4	14	103
180+ DPD	—		62	72	71	92	1,294	36	156	1,783
Government insured/guaranteed loans (1)	14		134	209	349	364	12,088	—	—	13,158
Total residential mortgage – first lien	70,148		41,774	25,203	8,095	14,223	75,618	5,313	1,896	242,270
Residential mortgage – junior lien
By delinquency status:
Current-29 DPD	28		20	30	26	21	700	10,883	4,426	16,134
30-59 DPD	—		—	—	—	1	10	29	46	86
60-89 DPD	—		—	—	—	—	4	10	21	35
90-119 DPD	—		—	—	1	—	3	4	12	20
120-179 DPD	—		—	—	—	—	5	7	14	26
180+ DPD	—		—	1	—	—	40	59	217	317
Total residential mortgage – junior lien	28		20	31	27	22	762	10,992	4,736	16,618
Credit cards
By delinquency status:
Current-29 DPD	—		—	—	—	—	—	37,686	192	37,878
30-59 DPD	—		—	—	—	—	—	176	7	183
60-89 DPD	—		—	—	—	—	—	118	5	123
90-119 DPD	—		—	—	—	—	—	98	5	103
120-179 DPD	—		—	—	—	—	—	165	1	166
180+ DPD	—		—	—	—	—	—	—	—	—
Total credit cards	—		—	—	—	—	—	38,243	210	38,453
Auto
By delinquency status:
Current-29 DPD	29,246		12,412	8,476	3,271	1,424	714	—	—	55,543
30-59 DPD	220		193	165	81	46	57	—	—	762
60-89 DPD	69		67	53	25	14	21	—	—	249
90-119 DPD	31		27	22	9	6	8	—	—	103
120-179 DPD	—		1	1	—	—	—	—	—	2
180+ DPD	—		—	—	—	—	—	—	—	—
Total auto	29,566		12,700	8,717	3,386	1,490	800	—	—	56,659
Other consumer
By delinquency status:
Current-29 DPD	2,221		716	703	203	107	125	23,988	143	28,206
30-59 DPD	3		2	3	1	—	2	10	4	25
60-89 DPD	2		1	2	1	—	1	5	1	13
90-119 DPD	1		1	2	1	—	—	4	—	9
120-179 DPD	—		—	—	—	—	—	8	2	10
180+ DPD	—		—	—	—	—	1	1	9	11
Total other consumer	2,227		720	710	206	107	129	24,016	159	28,274
Total consumer loans	$	101,969	55,214	34,661	11,714	15,842	77,309	78,564	7,001	382,274

(1)Represents loans whose repayments are predominantly insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA). Loans insured/guaranteed by the FHA/VA and 90+ DPD totaled $3.0 billion and $5.7 billion at September 30, 2022, and December 31, 2021, respectively.

Consumer Loan Categories by FICO and Vintage

Table 4.10 provides the outstanding balances of our consumer loan portfolio by FICO score. Substantially all of the scored consumer portfolio has an updated FICO score of 680 or above.

Table 4.10: Consumer Loan Categories by FICO and Vintage

	Term loans by origination year							Revolving loans	Revolving loans converted to term loans
(in millions)	2022		2021	2020	2019	2018	Prior			Total
September 30, 2022
By FICO:
Residential mortgage – first lien
800+	$	21,517	43,132	26,589	14,647	4,258	38,776	1,912	617	151,448
760-799	14,432		15,486	7,464	4,154	1,165	10,770	777	327	54,575
720-759	5,131		5,537	2,675	1,606	534	6,171	483	284	22,421
680-719	1,711		1,622	772	531	215	3,439	300	223	8,813
640-679	450		445	165	188	91	1,659	142	148	3,288
600-639	89		93	65	44	23	940	62	81	1,397
< 600	57		41	21	24	19	900	70	134	1,266
No FICO available	46		124	93	72	51	1,643	126	378	2,533
Government insured/guaranteed loans (1)	5		54	135	144	203	7,883	—	—	8,424
Total residential mortgage – first lien	43,438		66,534	37,979	21,410	6,559	72,181	3,872	2,192	254,165
Residential mortgage – junior lien
800+	—		—	—	—	—	143	4,215	1,683	6,041
760-799	—		—	—	—	—	84	1,622	875	2,581
720-759	—		—	—	—	—	101	1,081	812	1,994
680-719	—		—	—	—	—	86	611	630	1,327
640-679	—		—	—	—	—	47	233	327	607
600-639	—		—	—	—	—	26	113	184	323
< 600	—		—	—	—	—	34	107	209	350
No FICO available	21		32	17	22	20	68	179	318	677
Total residential mortgage – junior lien	21		32	17	22	20	589	8,161	5,038	13,900
Credit card
800+	—		—	—	—	—	—	4,885	2	4,887
760-799	—		—	—	—	—	—	6,812	8	6,820
720-759	—		—	—	—	—	—	9,397	26	9,423
680-719	—		—	—	—	—	—	10,151	48	10,199
640-679	—		—	—	—	—	—	6,750	49	6,799
600-639	—		—	—	—	—	—	2,706	35	2,741
< 600	—		—	—	—	—	—	2,507	74	2,581
No FICO available	—		—	—	—	—	—	107	1	108
Total credit card	—		—	—	—	—	—	43,315	243	43,558
Auto
800+	2,892		3,635	1,488	1,112	384	127	—	—	9,638
760-799	3,004		3,635	1,407	944	301	93	—	—	9,384
720-759	2,686		3,323	1,401	918	301	101	—	—	8,730
680-719	2,525		3,382	1,438	856	273	97	—	—	8,571
640-679	2,178		2,912	1,122	613	194	80	—	—	7,099
600-639	1,409		1,963	698	376	131	65	—	—	4,642
< 600	1,245		2,837	1,157	699	258	154	—	—	6,350
No FICO available	10		11	21	40	37	12	—	—	131
Total auto	15,949		21,698	8,732	5,558	1,879	729	—	—	54,545
Other consumer
800+	615		269	96	61	13	33	940	19	2,046
760-799	636		256	78	53	12	16	628	11	1,690
720-759	618		267	70	56	15	16	588	16	1,646
680-719	501		234	61	49	14	12	555	21	1,447
640-679	264		142	27	29	9	6	301	18	796
600-639	71		47	9	11	4	4	105	10	261
< 600	30		44	11	14	5	5	103	12	224
No FICO available	252		131	61	68	15	9	954	33	1,523
FICO not required	—		—	—	—	—	—	20,135	—	20,135
Total other consumer	2,987		1,390	413	341	87	101	24,309	140	29,768
Total consumer loans	$	62,395	89,654	47,141	27,331	8,545	73,600	79,657	7,613	395,936

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	Term loans by origination year							Revolving loans	Revolving loans converted to term loans
(in millions)	2021		2020	2019	2018	2017	Prior			Total
December 31, 2021
By FICO:
Residential mortgage – first lien
800+	$	35,935	27,396	16,583	5,153	9,430	37,495	2,554	469	135,015
760-799	23,645		9,814	5,412	1,464	2,485	10,509	1,073	265	54,667
720-759	7,842		3,083	1,980	642	1,137	6,277	646	238	21,845
680-719	1,986		876	645	283	501	3,682	393	206	8,572
640-679	449		233	187	89	129	1,851	188	146	3,272
600-639	101		63	46	31	41	1,035	102	89	1,508
< 600	15		13	24	19	41	1,083	114	124	1,433
No FICO available	161		162	117	65	95	1,598	243	359	2,800
Government insured/guaranteed loans (1)	14		134	209	349	364	12,088	—	—	13,158
Total residential mortgage – first lien	70,148		41,774	25,203	8,095	14,223	75,618	5,313	1,896	242,270
Residential mortgage – junior lien
800+	—		—	—	—	—	188	5,512	1,481	7,181
760-799	—		—	—	—	—	110	2,154	828	3,092
720-759	—		—	—	—	—	130	1,462	790	2,382
680-719	—		—	—	—	—	118	881	633	1,632
640-679	—		—	—	—	—	65	325	338	728
600-639	—		—	—	—	—	39	160	208	407
< 600	—		—	—	—	—	43	164	215	422
No FICO available	28		20	31	27	22	69	334	243	774
Total residential mortgage – junior lien	28		20	31	27	22	762	10,992	4,736	16,618
Credit card
800+	—		—	—	—	—	—	4,247	1	4,248
760-799	—		—	—	—	—	—	6,053	7	6,060
720-759	—		—	—	—	—	—	8,475	26	8,501
680-719	—		—	—	—	—	—	9,136	50	9,186
640-679	—		—	—	—	—	—	5,850	47	5,897
600-639	—		—	—	—	—	—	2,298	31	2,329
< 600	—		—	—	—	—	—	2,067	47	2,114
No FICO available	—		—	—	—	—	—	117	1	118
Total credit card	—		—	—	—	—	—	38,243	210	38,453
Auto
800+	4,688		1,983	1,680	690	318	108	—	—	9,467
760-799	4,967		2,123	1,586	586	234	87	—	—	9,583
720-759	4,789		2,104	1,503	583	241	106	—	—	9,326
680-719	5,005		2,282	1,441	526	218	111	—	—	9,583
640-679	4,611		1,824	1,025	369	160	99	—	—	8,088
600-639	3,118		1,114	617	243	117	92	—	—	5,301
< 600	2,372		1,236	853	376	193	187	—	—	5,217
No FICO available	16		34	12	13	9	10	—	—	94
Total auto	29,566		12,700	8,717	3,386	1,490	800	—	—	56,659
Other consumer
800+	450		162	128	34	8	47	1,343	22	2,194
760-799	502		147	117	33	7	22	819	19	1,666
720-759	461		134	115	38	9	18	714	22	1,511
680-719	349		95	99	37	9	15	630	22	1,256
640-679	170		44	55	21	6	8	328	17	649
600-639	42		13	19	9	3	4	117	9	216
< 600	18		12	22	11	3	5	114	12	197
No FICO available	235		113	155	23	62	10	1,236	36	1,870
FICO not required	—		—	—	—	—	—	18,715	—	18,715
Total other consumer	2,227		720	710	206	107	129	24,016	159	28,274
Total consumer loans	$	101,969	55,214	34,661	11,714	15,842	77,309	78,564	7,001	382,274

(1)Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.

Consumer Loan Categories by LTV/CLTV and Vintage

Table 4.11 shows the most updated LTV and CLTV distribution of the residential mortgage – first lien and residential mortgage – junior lien loan portfolios.

Table 4.11: Consumer Loan Categories by LTV/CLTV and Vintage

	Term loans by origination year							Revolving loans	Revolving loans converted to term loans
(in millions)	2022		2021	2020	2019	2018	Prior			Total
September 30, 2022
Residential mortgage – first lien
By LTV:
0-60%	$	14,608	38,581	31,333	17,850	5,391	61,269	3,570	2,057	174,659
60.01-80%	27,462		27,485	6,359	3,276	907	2,773	226	107	68,595
80.01-100%	1,333		326	91	91	34	86	33	14	2,008
100.01-120% (1)	4		14	6	5	2	16	5	2	54
> 120% (1)	5		7	3	2	—	9	3	2	31
No LTV available	21		67	52	42	22	145	35	10	394
Government insured/guaranteed loans (2)	5		54	135	144	203	7,883	—	—	8,424
Total residential mortgage – first lien	43,438		66,534	37,979	21,410	6,559	72,181	3,872	2,192	254,165
Residential mortgage – junior lien
By CLTV:
0-60%	—		—	—	—	—	444	7,180	4,351	11,975
60.01-80%	—		—	—	—	—	81	833	550	1,464
80.01-100%	—		—	—	—	—	16	119	97	232
100.01-120% (1)	—		—	—	—	—	2	15	12	29
> 120% (1)	—		—	—	—	—	1	6	5	12
No CLTV available	21		32	17	22	20	45	8	23	188
Total residential mortgage – junior lien	21		32	17	22	20	589	8,161	5,038	13,900
Total	$	43,459	66,566	37,996	21,432	6,579	72,770	12,033	7,230	268,065
	Term loans by origination year							Revolving loans	Revolving loans converted to term loans
	2021		2020	2019	2018	2017	Prior			Total
December 31, 2021
Residential mortgage – first lien
By LTV:
0-60%	$	26,618	22,882	16,063	5,310	11,030	57,880	4,348	1,644	145,775
60.01-80%	42,893		18,188	8,356	2,234	2,647	5,017	674	188	80,197
80.01-100%	486		437	474	147	134	339	157	42	2,216
100.01-120% (1)	10		31	24	11	7	48	33	8	172
> 120% (1)	5		10	10	4	3	35	14	3	84
No LTV available	122		92	67	40	38	211	87	11	668
Government insured/guaranteed loans (2)	14		134	209	349	364	12,088	—	—	13,158
Total residential mortgage – first lien	70,148		41,774	25,203	8,095	14,223	75,618	5,313	1,896	242,270
Residential mortgage – junior lien
By CLTV:
0-60%	—		—	—	—	—	475	7,949	3,588	12,012
60.01-80%	—		—	—	—	—	172	2,329	823	3,324
80.01-100%	—		—	—	—	—	55	554	241	850
100.01-120% (1)	—		—	—	—	—	13	104	42	159
> 120% (1)	—		—	—	—	—	3	35	13	51
No CLTV available	28		20	31	27	22	44	21	29	222
Total residential mortgage – junior lien	28		20	31	27	22	762	10,992	4,736	16,618
Total	$	70,176	41,794	25,234	8,122	14,245	76,380	16,305	6,632	258,888

(1)Reflects total loan balances with LTV/CLTV amounts in excess of 100%. In the event of default, the loss content would generally be limited to only the amount in excess of 100% LTV/CLTV.

(2)Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.

Nonaccrual Loans

Table 4.12 provides loans on nonaccrual status. Nonaccrual loans may have an ACL or a negative allowance for credit losses from expected recoveries of amounts previously written off. Customer payment deferral activities in the residential mortgage portfolio instituted in response to the COVID-19 pandemic could continue to delay the recognition of nonaccrual loans for those residential mortgage customers who would have otherwise moved into nonaccrual status.

Table 4.12: Nonaccrual Loans

	Amortized cost					Recognized interest income
	Nonaccrual loans			Nonaccrual loans without related allowance for credit losses (1)		Nine months ended September 30,
(in millions)	Sep 30, 2022		Dec 31, 2021	Sep 30, 2022	Dec 31, 2021	2022	2021
Commercial:
Commercial and industrial	$	742	980	205	190	57	73
Real estate mortgage	850		1,235	101	66	43	51
Real estate construction	3		13	—	5	1	3
Lease financing	108		148	5	9	—	1
Total commercial	1,703		2,376	311	270	101	128
Consumer:
Residential mortgage – first lien	3,024		3,803	2,035	2,722	120	86
Residential mortgage – junior lien	653		801	453	497	41	38
Auto	171		198	—	—	21	26
Other consumer	36		34	—	—	3	2
Total consumer	3,884		4,836	2,488	3,219	185	152
Total nonaccrual loans	$	5,587	7,212	2,799	3,489	286	280

(1)Nonaccrual loans may not have an allowance for credit losses if the loss expectations are zero given the related collateral value.

Loans 90 days or More Past Due and Still Accruing

Table 4.13 shows loans 90 days or more past due and still accruing by class for loans not government insured/guaranteed.

Table 4.13: Loans 90 Days or More Past Due and Still Accruing

($ in millions)	Sep 30, 2022		Dec 31, 2021
Total:	$	3,955	5,358
Less: FHA insured/VA guaranteed (1)	2,657		4,699
Total, not government insured/guaranteed	$	1,298	659
By segment and class, not government insured/guaranteed:
Commercial:
Commercial and industrial	$	699	206
Real estate mortgage	71		29
Real estate construction	32		—
Total commercial	802		235
Consumer:
Residential mortgage – first lien	13		37
Residential mortgage – junior lien	7		12
Credit card	359		269
Auto	97		88
Other consumer	20		18
Total consumer	496		424
Total, not government insured/guaranteed	$	1,298	659

(1)Represents loans whose repayments are predominantly insured by the FHA or guaranteed by the VA.

TDR Modifications

Table 4.14 summarizes our TDR modifications for the periods presented by primary modification type and includes the financial effects of these modifications. For those loans that modify more than once, the table reflects each modification that occurred during the period. Loans that both modify and are paid off or written-off within the period, as well as changes in recorded investment during the period for loans modified in prior periods, are not included in the table.

Table 4.14: TDR Modifications

	Primary modification type (1)					Financial effects of modifications
($ in millions)	Principal forgiveness		Interest rate reduction	Other concessions (2)	Total	Charge- offs (3)	Weighted average interest rate reduction		Recorded investment related to interest rate reduction (4)
Quarter ended September 30, 2022
Commercial:
Commercial and industrial	$	7	4	76	87	—	14.26	%	$	4
Real estate mortgage	—		1	37	38	—	0.25		1
Real estate construction	—		—	—	—	—	—		—
Lease financing	—		—	—	—	—	—		—
Total commercial	7		5	113	125	—	12.15		5
Consumer:
Residential mortgage – first lien	—		72	312	384	1	1.40		72
Residential mortgage – junior lien	—		25	20	45	—	2.33		25
Credit card	—		82	—	82	—	20.45		82
Auto	—		2	8	10	2	3.87		2
Other consumer	—		6	1	7	1	11.46		5
Trial modifications (5)	—		—	—	—	—	—		—
Total consumer	—		187	341	528	4	10.27		186
Total	$	7	192	454	653	4	10.31	%	$	191
Quarter ended September 30, 2021
Commercial:
Commercial and industrial	$	2	6	192	200	—	0.61	%	$	6
Real estate mortgage	—		2	26	28	—	2.95		2
Real estate construction	—		—	—	—	—	—		—
Lease financing	—		—	3	3	—	—		—
Total commercial	2		8	221	231	—	1.32		8
Consumer:
Residential mortgage – first lien	—		11	204	215	—	1.68		11
Residential mortgage – junior lien	—		3	7	10	—	3.45		3
Credit card	—		25	—	25	—	19.18		25
Auto	—		1	23	24	9	4.00		1
Other consumer	—		4	—	4	—	11.52		4
Trial modifications (5)	—		—	2	2	—	—		—
Total consumer	—		44	236	280	9	12.54		44
Total	$	2	52	457	511	9	10.69	%	$	52

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	Primary modification type (1)					Financial effects of modifications
($ in millions)	Principal forgiveness		Interest rate reduction	Other concessions (2)	Total	Charge- offs (3)	Weighted average interest rate reduction		Recorded investment related to interest rate reduction (4)
Nine months ended September 30, 2022
Commercial:
Commercial and industrial	$	7	18	224	249	—	9.76	%	$	18
Real estate mortgage	—		11	101	112	—	0.94		11
Real estate construction	—		—	1	1	—	—		—
Lease financing	—		—	1	1	—	—		—
Total commercial	7		29	327	363	—	6.47		29
Consumer:
Residential mortgage – first lien	1		238	950	1,189	3	1.43		238
Residential mortgage – junior lien	—		54	68	122	1	2.36		54
Credit card	—		215	—	215	—	19.66		215
Auto	1		6	56	63	13	4.44		6
Other consumer	—		13	2	15	1	11.37		12
Trial modifications (5)	—		—	252	252	—	—		—
Total consumer	2		526	1,328	1,856	18	9.27		525
Total	$	9	555	1,655	2,219	18	9.12	%	$	554
Nine months ended September 30, 2021
Commercial:
Commercial and industrial	$	2	8	752	762	20	0.74	%	$	8
Real estate mortgage	41		11	212	264	—	1.48		11
Real estate construction	—		—	3	3	—	—		—
Lease financing	—		—	7	7	—	—		—
Total commercial	43		19	974	1,036	20	1.17		19
Consumer:
Residential mortgage – first lien	—		26	1,089	1,115	1	1.60		26
Residential mortgage – junior lien	—		10	29	39	1	2.71		10
Credit card	—		81	—	81	—	19.01		81
Auto	1		3	109	113	46	3.94		3
Other consumer	—		15	1	16	—	11.99		15
Trial modifications (5)	—		—	4	4	—	—		—
Total consumer	1		135	1,232	1,368	48	13.31		135
Total	$	44	154	2,206	2,404	68	11.76	%	$	154

(1)Amounts represent the recorded investment in loans after recognizing the effects of the TDR, if any. TDRs may have multiple types of concessions, but are presented only once in the first modification type based on the order presented in the table above. The reported amounts include loans remodified of $105 million and $188 million for the quarters ended September 30, 2022 and 2021, respectively, and $355 million and $646 million for the first nine months of 2022 and 2021, respectively.

(2)Other concessions include loans with payment (principal and/or interest) deferral, loans discharged in bankruptcy, loan renewals, term extensions and other interest and noninterest adjustments, but exclude modifications that also forgive principal and/or reduce the contractual interest rate. The reported amounts include loans that are new TDRs that may have COVID-related payment deferrals and exclude COVID-related payment deferrals on loans previously reported as TDRs given limited current financial effects other than payment deferral.

(3)Charge-offs include write-downs of the investment in the loan in the period it is contractually modified. The amount of charge-off will differ from the modification terms if the loan has been charged down prior to the modification based on our policies. In addition, there may be cases where we have a charge-off/down with no legal principal modification.

(4)Recorded investment related to interest rate reduction reflects the effect of reduced interest rates on loans with an interest rate concession as one of their concession types, which includes loans reported as a principal primary modification type that also have an interest rate concession.

(5)Trial modifications are granted a delay in payments due under the original terms during the trial payment period. However, these loans continue to advance through delinquency status and accrue interest according to their original terms. Any subsequent permanent modification generally includes interest rate related concessions; however, the exact concession type and resulting financial effect are usually not known until the loan is permanently modified. Trial modifications for the period are presented net of previously reported trial modifications that became permanent in the current period.

Defaulted TDRs

Table 4.15 summarizes permanent modification TDRs that have defaulted in the current period within 12 months of their permanent modification date. We are reporting these defaulted

TDRs based on a payment default definition of 90 days past due for the commercial portfolio segment and 60 days past due for the consumer portfolio segment.

Table 4.15: Defaulted TDRs

	Recorded investment of defaults
	Quarter ended September 30,			Nine months ended September 30,
(in millions)	2022		2021	2022		2021
Commercial:
Commercial and industrial	$	1	4	$	53	129
Real estate mortgage	3		2	13		27
Real estate construction	—		—	—		—
Lease financing	—		—	—		1
Total commercial	4		6	66		157
Consumer:
Residential mortgage – first lien	32		4	88		9
Residential mortgage – junior lien	4		—	6		1
Credit card	12		5	25		21
Auto	4		11	17		34
Other consumer	—		1	1		2
Total consumer	52		21	137		67
Total	$	56	27	$	203	224