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 September 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 September 30, 2021 and December 31, 2020. The delinquency aging includes all past due loans, both performing and nonperforming.


	September 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	$	97,346	$	646		$	425		$	841		$	1,912		$	99,258
International card businesses	5,579		72			45			76			193			5,772
Total credit card	102,925		718			470			917			2,105			105,030
Consumer Banking:
Auto	71,770		1,996			769			181			2,946			74,716
Retail banking	2,347		26			5			18			49			2,396
Total consumer banking	74,117		2,022			774			199			2,995			77,112
Commercial Banking:
Commercial and multifamily real estate	32,973		72			1			50			123			33,096
Commercial and industrial	45,808		181			134			29			344			46,152
Total commercial banking	78,781		253			135			79			467			79,248
Total loans(1)	$	255,823	$	2,993		$	1,379		$	1,195		$	5,567		$	261,390
% of Total loans	97.87 %		1.14		%	0.53		%	0.46		%	2.13		%	100.00 %


	December 31, 2020
				Delinquent Loans
(Dollars in millions)	Current			30-59 Days			60-89 Days			> 90 Days			Total Delinquent Loans			Total Loans
Credit Card:
Domestic credit card	$	96,116		$	755		$	464		$	1,169		$	2,388		$	98,504
International card businesses	8,218			90			58			86			234			8,452
Total credit card	104,334			845			522			1,255			2,622			106,956
Consumer Banking:
Auto	62,381			2,252			907			222			3,381			65,762
Retail banking	3,064			28			19			15			62			3,126
Total consumer banking	65,445			2,280			926			237			3,443			68,888
Commercial Banking:
Commercial and multifamily real estate	30,340			136			22			183			341			30,681
Commercial and industrial	44,941			69			15			74			158			45,099
Total commercial banking	75,281			205			37			257			499			75,780
Total loans(1)	$	245,060		$	3,330		$	1,485		$	1,749		$	6,564		$	251,624
% of Total loans	97.39		%	1.32		%	0.59		%	0.70		%	2.61		%	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 September 30, 2021 and December 31, 2020. Nonperforming loans generally include loans that have been placed on nonaccrual status.


	September 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	$	841		N/A			$	0		$	1,169		N/A			$	0
International card businesses	74			$	9		0			82			$	21		0
Total credit card	915			9			0			1,251			21			0
Consumer Banking:
Auto	0			270			0			0			294			0
Retail banking	0			53			19			0			30			0
Total consumer banking	0			323			19			0			324			0
Commercial Banking:
Commercial and multifamily real estate	0			287			265			51			200			184
Commercial and industrial	7			314			233			0			450			265
Total commercial banking	7			601			498			51			650			449
Total	$	922		$	933		$	517		$	1,302		$	995		$	449
% of Total loans held for investment	0.35		%	0.35		%	0.20		%	0.52		%	0.40		%	0.18		%

__________

(1)We recognized interest income for loans classified as nonperforming of $1 million and $21 million for the three and nine months ended September 30, 2021, respectively, and $4 million and $22 million for the three and nine months ended September 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.


	September 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	$	96,977	$	369	$	97,346	$	95,629	$	487	$	96,116
30-59 days	632		14		646		734		21		755
60-89 days	417		8		425		451		13		464
Greater than 90 days	832		9		841		1,155		14		1,169
Total domestic credit card	98,858		400		99,258		97,969		535		98,504

International card businesses:
Current	5,534		45		5,579		8,152		66		8,218
30-59 days	67		5		72		79		11		90
60-89 days	41		4		45		47		11		58
Greater than 90 days	72		4		76		76		10		86
Total international card businesses	5,714		58		5,772		8,354		98		8,452
Total credit card	$	104,572	$	458	$	105,030	$	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 September 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.


	September 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	$	16,685	$	9,696	$	5,448	$	2,860	$	1,475	$	462	$	36,626	$	0	$	0	$	36,626
621-660	6,093		4,212		2,435		1,276		666		231		14,913		0		0		14,913
620 or below	7,949		7,131		4,321		2,150		1,161		465		23,177		0		0		23,177
Total auto	30,727		21,039		12,204		6,286		3,302		1,158		74,716		0		0		74,716

Retail banking—Delinquency status:
Current	420		324		184		185		187		544		1,844		497		6		2,347
30-59 days	0		1		0		0		0		4		5		20		1		26
60-89 days	0		0		0		0		0		3		3		2		0		5
Greater than 90 days	0		1		0		1		1		5		8		9		1		18
Total retail banking(2)	420		326		184		186		188		556		1,860		528		8		2,396
Total consumer banking	$	31,147	$	21,365	$	12,388	$	6,472	$	3,490	$	1,714	$	76,576	$	528	$	8	$	77,112


	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 September 30, 2021 and December 31, 2020. The internal risk rating status includes all past due loans, both performing and nonperforming.


	September 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	$	3,663	$	3,320	$	3,984	$	2,583	$	924	$	4,455	$	18,929	$	10,950	$	0	$	29,879
Criticized performing	216		276		406		334		237		1,335		2,804		101		25		2,930
Criticized nonperforming	0		0		8		29		10		240		287		0		0		287
Total commercial and multifamily real estate	3,879		3,596		4,398		2,946		1,171		6,030		22,020		11,051		25		33,096
Commercial and industrial
Noncriticized	8,064		7,519		6,200		3,219		1,913		3,677		30,592		12,677		70		43,339
Criticized performing	150		169		881		260		184		153		1,797		702		0		2,499
Criticized nonperforming	43		57		83		42		8		18		251		63		0		314
Total commercial and industrial	8,257		7,745		7,164		3,521		2,105		3,848		32,640		13,442		70		46,152
Total commercial banking(2)	$	12,136	$	11,341	$	11,562	$	6,467	$	3,276	$	9,878	$	54,660	$	24,493	$	95	$	79,248


	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 September 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 $1.7 billion and $2.1 billion as of September 30, 2021 and December 31, 2020, respectively. TDRs classified as performing in our credit card and consumer banking loan portfolios totaled $1.1 billion and $1.3 billion as of September 30, 2021 and December 31, 2020, respectively. TDRs classified as performing in our commercial banking loan portfolio totaled $231 million and $442 million as of September 30, 2021 and December 31, 2020, respectively. Commitments to lend additional funds on loans modified in TDRs totaled $164 million and $173 million as of September 30, 2021 and December 31, 2020, respectively.

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 nine months ended September 30, 2021 and 2020.


			Three Months Ended September 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	$	37	100	%	15.80	%	0	%	0
International card businesses	28		100		27.75		0		0
Total credit card	65		100		20.90		0		0
Consumer Banking:
Auto	89		48		8.54		92		4

Total consumer banking	89		48		8.54		92		4
Commercial Banking:
Commercial and multifamily real estate	21		14		2.50		100		12
Commercial and industrial	4		0		0.00		100		4
Total commercial banking	25		12		2.50		100		11
Total	$	179	61		68.95		59		6


			Nine Months Ended September 30, 2021
			Reduced Interest Rate				Term Extension			Balance Reduction
(Dollars in millions)	Total Loans Modified(1)		% 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	$	114	100	%	16.00	%	0	%	0	0	%	$	0
International card businesses	94		100		27.66		0		0	0		0
Total credit card	208		100		21.26		0		0	0		0
Consumer Banking:
Auto	269		40		8.74		93		4	0		1
Retail banking	1		20		2.55		36		67	0		0
Total consumer banking	270		40		8.72		93		4	0		1
Commercial Banking:
Commercial and multifamily real estate	41		7		1.29		100		13	0		0
Commercial and industrial	82		0		0.00		41		8	0		0
Total commercial banking	123		2		1.29		61		11	0		0
Total	$	601	53		16.84		54		5	0		$	1


			Three Months Ended September 30, 2020
			Reduced Interest Rate				Term Extension			Balance Reduction
(Dollars in millions)	Total Loans Modified(1)		% 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	$	50	100	%	15.53	%	0	%	0	0	%	$	0
International card businesses	39		100		27.89		0		0	0		0
Total credit card	89		100		20.94		0		0	0		0
Consumer Banking:
Auto	133		3		4.83		94		2	0		1
Retail banking	1		85		3.24		15		61	0		0
Total consumer banking	134		4		4.75		94		2	0		1
Commercial Banking:
Commercial and multifamily real estate	57		0		0.00		100		4	0		0
Commercial and industrial	201		0		0.00		54		32	0		0
Total commercial banking	258		0		0.00		64		23	0		0
Total	$	481	19		20.08		61		14	0		$	1


			Nine Months Ended September 30, 2020
			Reduced Interest Rate				Term Extension			Balance Reduction
(Dollars in millions)	Total Loans Modified(1)		% 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	$	195	100	%	15.92	%	0	%	0	0	%	$	0
International card businesses	118		100		27.33		0		0	0		0
Total credit card	313		100		20.22		0		0	0		0
Consumer Banking:
Auto	393		9		3.68		95		3	0		1
Retail banking	5		9		10.85		15		8	0		0
Total consumer banking	398		9		3.76		94		3	0		1
Commercial Banking:
Commercial and multifamily real estate	85		0		0.00		100		6	0		0
Commercial and industrial	389		0		0.00		52		21	4		7
Total commercial banking	474		0		0.00		61		16	3		7
Total	$	1,185	29		18.49		56		9	1		$	8

(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 September 30,						Nine Months Ended September 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	4,168	$	7	6,554	$	14	13,528	$	25	27,022	$	57
International card businesses	12,680	17		10,673	17		44,709	68		46,038	68
Total credit card	16,848	24		17,227	31		58,237	93		73,060	125
Consumer Banking:
Auto	2,151	34		1,307	15		6,453	98		3,442	42
Retail banking	1	0		3	1		9	0		7	1
Total consumer banking	2,152	34		1,310	16		6,462	98		3,449	43
Commercial Banking:
Commercial and multifamily real estate	0	0		0	0		1	50		0	0
Commercial and industrial	1	38		4	16		7	120		11	65
Total commercial banking	1	38		4	16		8	170		11	65
Total	19,001	$	96	18,541	$	63	64,707	$	361	76,520	$	233

For the three and nine months ended September 30, 2021, we converted $37 million and $172 million of revolving loans to term loans, respectively, primarily in our domestic credit card and commercial banking loan portfolios. For the three and nine months ended September 30, 2020, we converted $250 million and $499 million of revolving loans to term loans, respectively, primarily in our domestic credit card and commercial banking loan portfolios.