Our loan portfolio consists of loans held for investment, including loans held in our consolidated trusts, and loans held for sale. We further divide our loans held for investment into three portfolio segments: credit card, consumer banking and commercial banking. Credit card loans consist of domestic and international credit card loans. Consumer banking loans consist of auto and retail banking loans. Commercial banking loans consist of commercial and multifamily real estate as well as commercial and industrial loans. The information presented in this section excludes loans held for sale, which are carried at either fair value (if we elect the fair value option) or at the lower of cost or fair value. Amounts include the impacts of COVID-19 customer assistance programs where applicable.

Accrued interest receivable of $1.2 billion as of both June 30, 2021 and December 31, 2020, is not included in the tables in this note. The table below presents the composition and aging analysis of our loans held for investment portfolio as of June 30, 2021 and December 31, 2020. The delinquency aging includes all past due loans, both performing and nonperforming.


	June 30, 2021
				Delinquent Loans
(Dollars in millions)	Current			30-59 Days			60-89 Days			> 90 Days			Total Delinquent Loans			Total Loans
Credit Card:
Domestic credit card	$	93,711		$	525		$	317		$	756		$	1,598		$	95,309
International card businesses	5,536			67			37			68			172			5,708
Total credit card	99,247			592			354			824			1,770			101,017
Consumer Banking:
Auto	69,222			1,717			645			129			2,491			71,713
Retail banking	2,999			21			8			18			47			3,046
Total consumer banking	72,221			1,738			653			147			2,538			74,759
Commercial Banking:
Commercial and multifamily real estate	29,476			4			23			113			140			29,616
Commercial and industrial	43,924			201			25			55			281			44,205
Total commercial banking	73,400			205			48			168			421			73,821
Total loans(1)	$	244,868		$	2,535		$	1,055		$	1,139		$	4,729		$	249,597
% of Total loans	98.11		%	1.01		%	0.42		%	0.46		%	1.89		%	100.00		%

The following table presents our loans held for investment that are 90 days or more past due that continue to accrue interest, loans that are classified as nonperforming and loans that are classified as nonperforming without an allowance as of June 30, 2021 and December 31, 2020. Nonperforming loans generally include loans that have been placed on nonaccrual status.


	June 30, 2021									December 31, 2020
(Dollars in millions)	> 90 Days and Accruing			Nonperforming Loans(1)			Nonperforming Loans Without an Allowance			> 90 Days and Accruing			Nonperforming Loans(1)			Nonperforming Loans Without an Allowance
Credit Card:
Domestic credit card	$	756		N/A			$	0		$	1,169		N/A			$	0
International card businesses	65			$	12		0			82			$	21		0
Total credit card	821			12			0			1,251			21			0
Consumer Banking:
Auto	0			209			0			0			294			0
Retail banking	0			53			20			0			30			0
Total consumer banking	0			262			20			0			324			0
Commercial Banking:
Commercial and multifamily real estate	2			301			249			51			200			184
Commercial and industrial	0			458			280			0			450			265
Total commercial banking	2			759			529			51			650			449
Total	$	823		$	1,033		$	549		$	1,302		$	995		$	449
% of Total loans held for investment	0.3		%	0.4		%	0.2		%	0.5		%	0.4		%	0.2		%

__________

(1)We recognized interest income for loans classified as nonperforming of $3 million and $8 million for the three and six months ended June 30, 2021, respectively, and $5 million and $11 million for the three and six months ended June 30, 2020, respectively.

We closely monitor economic conditions and loan performance trends to assess and manage our exposure to credit risk. We discuss these risks and our credit quality indicator for each portfolio segment below.

Our credit card loan portfolio is highly diversified across millions of accounts and numerous geographies without significant individual exposure. We therefore generally manage credit risk based on portfolios with common risk characteristics. The risk in our credit card loan portfolio correlates to broad economic trends, such as unemployment rates and home values, as well as consumers’ financial condition, all of which can have a material effect on credit performance. The key indicator we assess in monitoring the credit quality and risk of our credit card loan portfolio is delinquency trends, including an analysis of loan migration between delinquency categories over time.


	June 30, 2021						December 31, 2020
(Dollars in millions)	Revolving Loans		Revolving Loans Converted to Term		Total		Revolving Loans		Revolving Loans Converted to Term		Total
Credit Card:
Domestic credit card:
Current	$	93,304	$	407	$	93,711	$	95,629	$	487	$	96,116
30-59 days	512		13		525		734		21		755
60-89 days	308		9		317		451		13		464
Greater than 90 days	747		9		756		1,155		14		1,169
Total domestic credit card	94,871		438		95,309		97,969		535		98,504

International card businesses:
Current	5,484		52		5,536		8,152		66		8,218
30-59 days	61		6		67		79		11		90
60-89 days	33		4		37		47		11		58
Greater than 90 days	64		4		68		76		10		86
Total international card businesses	5,642		66		5,708		8,354		98		8,452
Total credit card	$	100,513	$	504	$	101,017	$	106,323	$	633	$	106,956

Our consumer banking loan portfolio consists of auto and retail banking loans. Similar to our credit card loan portfolio, the risk in our consumer banking loan portfolio correlates to broad economic trends, such as unemployment rates, gross domestic product and home values, as well as consumers’ financial condition, all of which can have a material effect on credit performance. The key indicator we monitor when assessing the credit quality and risk of our auto loan portfolio is borrower credit scores as they measure the creditworthiness of borrowers. Delinquency trends are the key indicator we assess in monitoring the credit quality and risk of our retail banking loan portfolio.

The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of June 30, 2021 and December 31, 2020. We present our auto loan portfolio by FICO scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming.


	June 30, 2021
	Term Loans by Vintage Year
(Dollars in millions)	2021		2020		2019		2018		2017		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total

Auto—At origination FICO scores:(1)
Greater than 660	$	11,276	$	10,874	$	6,258	$	3,396	$	1,855	$	683	$	34,342	$	0	$	0	$	34,342
621-660	4,130		4,752		2,817		1,496		815		326		14,336		0		0		14,336
620 or below	5,536		7,988		4,960		2,509		1,404		638		23,035		0		0		23,035
Total auto	20,942		23,614		14,035		7,401		4,074		1,647		71,713		0		0		71,713

Retail banking—Delinquency status:
Current	511		745		210		198		195		597		2,456		535		8		2,999
30-59 days	0		0		0		0		0		3		3		18		0		21
60-89 days	0		0		0		0		1		4		5		3		0		8
Greater than 90 days	0		0		0		1		2		4		7		10		1		18
Total retail banking(2)	511		745		210		199		198		608		2,471		566		9		3,046
Total consumer banking	$	21,453	$	24,359	$	14,245	$	7,600	$	4,272	$	2,255	$	74,184	$	566	$	9	$	74,759


	December 31, 2020
	Term Loans by Vintage Year
(Dollars in millions)	2020		2019		2018		2017		2016		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total

Auto—At origination FICO scores:(1)
Greater than 660	$	13,352	$	8,091	$	4,675	$	2,810	$	1,168	$	203	$	30,299	$	0	$	0	$	30,299
621-660	5,781		3,631		2,003		1,172		488		109		13,184		0		0		13,184
620 or below	9,550		6,298		3,317		1,985		886		243		22,279		0		0		22,279
Total auto	28,683		18,020		9,995		5,967		2,542		555		65,762		0		0		65,762

Retail banking—Delinquency status:
Current	1,041		233		206		222		167		537		2,406		651		7		3,064
30-59 days	0		0		7		1		2		2		12		15		1		28
60-89 days	0		0		1		0		5		4		10		8		1		19
Greater than 90 days	0		0		0		1		1		4		6		9		0		15
Total retail banking(2)	1,041		233		214		224		175		547		2,434		683		9		3,126
Total consumer banking	$	29,724	$	18,253	$	10,209	$	6,191	$	2,717	$	1,102	$	68,196	$	683	$	9	$	68,888

__________

(1)Amounts represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category.

The key credit quality indicator for our commercial loan portfolios is our internal risk ratings. We assign internal risk ratings to loans based on relevant information about the ability of the borrowers to repay their debt. In determining the risk rating of a particular loan, some of the factors considered are the borrower’s current financial condition, historical and projected future credit performance, prospects for support from financially responsible guarantors, the estimated realizable value of any collateral and current economic trends. The scale based on our internal risk rating system is as follows:

•Criticized performing: Loans in which the financial condition of the obligor is stressed, affecting earnings, cash flows or collateral values. The borrower currently has adequate capacity to meet near-term obligations; however, the stress, left unabated, may result in deterioration of the repayment prospects at some future date.

•Criticized nonperforming: Loans that are not adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as criticized nonperforming have a well-defined weakness, or weaknesses, which jeopardize the full repayment of the debt. These loans are characterized by the distinct possibility that we will sustain a credit loss if the deficiencies are not corrected and are generally placed on nonaccrual status.

We use our internal risk rating system for regulatory reporting, determining the frequency of credit exposure reviews, and evaluating and determining the allowance for credit losses for commercial loans. Generally, loans that are designated as criticized performing and criticized nonperforming are reviewed quarterly by management to determine if they are appropriately classified/rated and whether any impairment exists. Noncriticized loans are also generally reviewed, at least annually, to determine the appropriate risk rating. In addition, we evaluate the risk rating during the renewal process of any loan or if a loan becomes past due.

The following table presents our commercial banking portfolio of loans held for investment by internal risk ratings as of June 30, 2021 and December 31, 2020. The internal risk rating status includes all past due loans, both performing and nonperforming.


	June 30, 2021
	Term Loans by Vintage Year
(Dollars in millions)	2021		2020		2019		2018		2017		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	1,636	$	3,437	$	4,331	$	2,956	$	1,025	$	4,838	$	18,223	$	7,983	$	0	$	26,206
Criticized performing	156		291		426		381		310		1,459		3,023		61		25		3,109
Criticized nonperforming	0		0		8		29		10		254		301		0		0		301
Total commercial and multifamily real estate	1,792		3,728		4,765		3,366		1,345		6,551		21,547		8,044		25		29,616
Commercial and industrial
Noncriticized	4,905		8,160		6,730		3,563		2,305		4,001		29,664		11,596		15		41,275
Criticized performing	87		169		844		275		163		200		1,738		734		0		2,472
Criticized nonperforming	47		62		57		74		29		21		290		168		0		458
Total commercial and industrial	5,039		8,391		7,631		3,912		2,497		4,222		31,692		12,498		15		44,205
Total commercial banking(2)	$	6,831	$	12,119	$	12,396	$	7,278	$	3,842	$	10,773	$	53,239	$	20,542	$	40	$	73,821


	December 31, 2020
	Term Loans by Vintage Year
(Dollars in millions)	2020		2019		2018		2017		2016		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	3,791	$	4,932	$	3,232	$	1,437	$	1,649	$	4,904	$	19,945	$	7,114	$	0	$	27,059
Criticized performing	320		446		515		355		391		1,258		3,285		112		25		3,422
Criticized nonperforming	0		11		30		6		3		150		200		0		0		200
Total commercial and multifamily real estate	4,111		5,389		3,777		1,798		2,043		6,312		23,430		7,226		25		30,681
Commercial and industrial
Noncriticized	9,761		7,890		4,043		2,717		1,832		3,034		29,277		11,548		80		40,905
Criticized performing	316		794		521		252		106		215		2,204		1,498		42		3,744
Criticized nonperforming	74		108		25		51		9		0		267		183		0		450
Total commercial and industrial	10,151		8,792		4,589		3,020		1,947		3,249		31,748		13,229		122		45,099
Total commercial banking(2)	$	14,262	$	14,181	$	8,366	$	4,818	$	3,990	$	9,561	$	55,178	$	20,455	$	147	$	75,780

__________

Additional guidance issued by the Federal Banking Agencies and contained in the Coronavirus Aid, Relief, and Economic Security Act provides banking organizations with troubled debt restructurings (“TDRs”) relief for modifications of current borrowers impacted by the COVID-19 pandemic. In adherence with the guidance, we assessed all loan modifications introduced to current borrowers in response to the COVID-19 pandemic through June 30, 2021, that would have been designated as TDRs under our existing policies, and followed guidance that any such eligible loan modifications made on a temporary and good faith basis are not considered TDRs. We consider the impact of all loan modifications, including those classified as TDRs and those offered in response to the COVID-19 pandemic, when estimating the credit quality of our loan portfolio and establishing allowance levels. For our Commercial Banking customers, enrollment in a customer assistance program is also considered in the assignment of an internal risk rating.

Total recorded TDRs were $1.8 billion and $2.1 billion as of June 30, 2021 and December 31, 2020, respectively. TDRs classified as performing in our credit card and consumer banking loan portfolios totaled $1.2 billion and $1.3 billion as of June 30, 2021 and December 31, 2020, respectively. TDRs classified as performing in our commercial banking loan portfolio totaled $243 million and $442 million as of June 30, 2021 and December 31, 2020, respectively. Commitments to lend additional funds on loans modified in TDRs totaled $173 million as of both June 30, 2021 and December 31, 2020.

As part of our loan modification programs to borrowers experiencing financial difficulty, we may provide multiple concessions to minimize our economic loss and improve long-term loan performance and collectability. The following tables present the major modification types, amortized cost amounts and financial effects of loans modified in TDRs during the three and six months ended June 30, 2021 and 2020.


			Three Months Ended June 30, 2021
			Reduced Interest Rate				Term Extension
(Dollars in millions)	Total Loans Modified(1)		% of TDR Activity(2)		Average Rate Reduction		% of TDR Activity(2)		Average Term Extension (Months)
Credit Card:
Domestic credit card	$	33	100	%	16.07	%	0	%	0
International card businesses	27		100		27.45		0		0
Total credit card	60		100		21.22		0		0
Consumer Banking:
Auto	65		39		8.62		91		4
Retail banking	1		0		0.00		100		41
Total consumer banking	66		38		8.62		91		4
Commercial Banking:
Commercial and multifamily real estate	0		0		0.00		0		0
Commercial and industrial	34		0		0.00		56		17
Total commercial banking	34		0		0.00		56		17
Total	$	160	53		9.38		49		3


			Six Months Ended June 30, 2021
			Reduced Interest Rate				Term Extension
(Dollars in millions)	Total Loans Modified(1)		% of TDR Activity(2)		Average Rate Reduction		% of TDR Activity(2)		Average Term Extension (Months)
Credit Card:
Domestic credit card	$	77	100	%	16.10	%	0	%	0
International card businesses	66		100		27.62		0		0
Total credit card	143		100		21.43		0		0
Consumer Banking:
Auto	180		36		8.87		94		3
Retail banking	1		31		3.77		69		28
Total consumer banking	181		36		8.85		94		3
Commercial Banking:
Commercial and multifamily real estate	20		0		0.00		100		14
Commercial and industrial	78		0		0.00		38		8
Total commercial banking	98		0		0.00		51		11
Total	$	422	49		8.64		52		3


	Total Loans Modified(1)		Three Months Ended June 30, 2020
			Reduced Interest Rate				Term Extension			Balance Reduction
(Dollars in millions)			% of TDR Activity(2)		Average Rate Reduction		% of TDR Activity(2)		Average Term Extension (Months)	% of TDR Activity(2)		Gross Balance Reduction
Credit Card:
Domestic credit card	$	56	100	%	15.41	%	0	%	0	0	%	$	0
International card businesses	28		100		26.56		0		0	0		0
Total credit card	84		100		19.14		0		0	0		0
Consumer Banking:
Auto	137		5		4.12		95		3	0		0
Retail banking	1		10		8.37		59		4	0		0
Total consumer banking	138		5		4.19		95		3	0		0
Commercial Banking:
Commercial and multifamily real estate	9		0		0.00		100		7	0		0
Commercial and industrial	181		0		0.00		52		8	9		7
Total commercial banking	190		0		0.00		55		8	8		7
Total	$	412	22		17.96		57		5	4		$	7


	Total Loans Modified(1)		Six Months Ended June 30, 2020
			Reduced Interest Rate				Term Extension			Balance Reduction
(Dollars in millions)			% of TDR Activity(2)		Average Rate Reduction		% of TDR Activity(2)		Average Term Extension (Months)	% of TDR Activity(2)		Gross Balance Reduction
Credit Card:
Domestic credit card	$	145	100	%	16.05	%	0	%	0	0	%	$	0
International card businesses	79		100		27.05		0		0	0		0
Total credit card	224		100		19.94		0		0	0		0
Consumer Banking:
Auto	260		12		3.51		95		4	0		0
Retail banking	4		4		11.42		15		4	0		0
Total consumer banking	264		12		3.55		93		4	0		0
Commercial Banking:
Commercial and multifamily real estate	28		0		0.00		100		10	0		0
Commercial and industrial	188		0		0.00		50		8	8		7
Total commercial banking	216		0		0.00		57		9	7		7
Total	$	704	36		17.90		52		5	2		$	7

(1)Represents the amortized cost of total loans modified in TDRs at the end of the period in which they were modified. As not every modification type is included in the table above, the total percentage of TDR activity may not add up to 100%. Some loans may receive more than one type of concession as part of the modification.

The following table presents the type, number and amortized cost of loans modified in TDRs that experienced a default during the period and had completed a modification event in the twelve months prior to the default. A default occurs if the loan is either 90 days or more delinquent, has been charged off as of the end of the period presented or has been reclassified from accrual to nonaccrual status.


	Three Months Ended June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
(Dollars in millions)	Number of Contracts	Amount		Number of Contracts	Amount		Number of Contracts	Amount		Number of Contracts	Amount
Credit Card:
Domestic credit card	4,226	$	8	9,582	$	21	9,360	$	18	20,468	$	43
International card businesses	14,827	23		17,508	25		32,029	51		35,365	51
Total credit card	19,053	31		27,090	46		41,389	69		55,833	94
Consumer Banking:
Auto	2,271	35		860	11		4,302	64		2,135	27
Retail banking	3	0		3	0		8	0		4	0
Total consumer banking	2,274	35		863	11		4,310	64		2,139	27
Commercial Banking:
Commercial and multifamily real estate	1	50		0	0		1	50		0	0
Commercial and industrial	6	82		1	21		6	82		7	49
Total commercial banking	7	132		1	21		7	132		7	49
Total	21,334	$	198	27,954	$	78	45,706	$	265	57,979	$	170

For the three and six months ended June 30, 2021, we converted $38 million and $135 million of revolving loans to term loans, respectively, primarily in our domestic credit card and commercial banking loan portfolios. For the three and six months ended June 30, 2020, we converted $89 million and $249 million of revolving loans to term loans, respectively, primarily in our domestic credit card loan portfolio.