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.

Accrued interest receivable of $1.2 billion as of both December 31, 2021 and 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 December 31, 2021 and 2020. The delinquency aging includes all past due loans, both performing and nonperforming.


	December 31, 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	$	106,312		$	773		$	528		$	1,110		$	2,411		$	108,723
International card businesses	5,836			77			50			86			213			6,049
Total credit card	112,148			850			578			1,196			2,624			114,772
Consumer Banking:
Auto	72,221			2,385			933			240			3,558			75,779
Retail banking	1,807			35			7			18			60			1,867
Total consumer banking	74,028			2,420			940			258			3,618			77,646
Commercial Banking:
Commercial and multifamily real estate	35,100			92			35			35			162			35,262
Commercial and industrial	49,379			139			103			39			281			49,660
Total commercial banking	84,479			231			138			74			443			84,922
Total loans(1)	$	270,655		$	3,501		$	1,656		$	1,528		$	6,685		$	277,340
% of Total loans	97.59		%	1.26		%	0.60		%	0.55		%	2.41		%	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 December 31, 2021 and 2020. Nonperforming loans generally include loans that have been placed on nonaccrual status.


	December 31, 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	$	1,110		N/A			$	0		$	1,169		N/A			$	0
International card businesses	82			$	10		0			82			$	21		0
Total credit card	1,192			10			0			1,251			21			0
Consumer Banking:
Auto	0			344			0			0			294			0
Retail banking	0			47			4			0			30			0
Total consumer banking	0			391			4			0			324			0
Commercial Banking:
Commercial and multifamily real estate	3			383			268			51			200			184
Commercial and industrial	0			316			257			0			450			265
Total commercial banking	3			699			525			51			650			449
Total	$	1,195		$	1,100		$	529		$	1,302		$	995		$	449
% of Total loans held for investment	0.43		%	0.40		%	0.19		%	0.52		%	0.40		%	0.18		%

__________

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 and the U.S. Real Gross Domestic Product (“GDP”) Rate, 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.


	December 31, 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	$	105,985	$	327	$	106,312	$	95,629	$	487	$	96,116
30-59 days	760		13		773		734		21		755
60-89 days	519		9		528		451		13		464
Greater than 90 days	1,100		10		1,110		1,155		14		1,169
Total domestic credit card	108,364		359		108,723		97,969		535		98,504

International card businesses:
Current	5,795		41		5,836		8,152		66		8,218
30-59 days	73		4		77		79		11		90
60-89 days	47		3		50		47		11		58
Greater than 90 days	82		4		86		76		10		86
Total international card businesses	5,997		52		6,049		8,354		98		8,452
Total credit card	$	114,361	$	411	$	114,772	$	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 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 December 31, 2021 and 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.


	December 31, 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	$	20,758	$	8,630	$	4,739	$	2,394	$	1,153	$	301	$	37,975	$	0	$	0	$	37,975
621-660	7,456		3,721		2,109		1,084		537		157		15,064		0		0		15,064
620 or below	9,522		6,336		3,767		1,840		949		326		22,740		0		0		22,740
Total auto	37,736		18,687		10,615		5,318		2,639		784		75,779		0		0		75,779

Retail banking—Delinquency status:
Current	285		171		172		161		176		491		1,456		345		6		1,807
30-59 days	0		2		2		7		0		1		12		23		0		35
60-89 days	0		4		0		0		0		2		6		1		0		7
Greater than 90 days	0		1		0		1		1		9		12		4		2		18
Total retail banking(2)	285		178		174		169		177		503		1,486		373		8		1,867
Total consumer banking	$	38,021	$	18,865	$	10,789	$	5,487	$	2,816	$	1,287	$	77,265	$	373	$	8	$	77,646


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


	December 31, 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	$	6,590	$	2,924	$	3,393	$	2,401	$	793	$	3,538	$	19,639	$	12,286	$	0	$	31,925
Criticized performing	248		195		329		317		261		1,478		2,828		101		25		2,954
Criticized nonperforming	0		0		88		20		9		266		383		0		0		383
Total commercial and multifamily real estate	6,838		3,119		3,810		2,738		1,063		5,282		22,850		12,387		25		35,262
Commercial and industrial
Noncriticized	12,662		7,039		5,506		2,750		1,730		3,033		32,720		14,310		59		47,089
Criticized performing	279		188		838		207		120		167		1,799		456		0		2,255
Criticized nonperforming	32		52		85		93		6		10		278		38		0		316
Total commercial and industrial	12,973		7,279		6,429		3,050		1,856		3,210		34,797		14,804		59		49,660
Total commercial banking(2)	$	19,811	$	10,398	$	10,239	$	5,788	$	2,919	$	8,492	$	57,647	$	27,191	$	84	$	84,922


	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 provided 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, 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 $1.6 billion and $2.1 billion as of December 31, 2021 and 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 December 31, 2021 and 2020, respectively. TDRs classified as performing in our commercial banking loan portfolio totaled $192 million and $442 million as of December 31, 2021 and 2020, respectively. Commitments to lend additional funds on loans modified in TDRs totaled $168 million and $173 million as of December 31, 2021 and 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 years ended December 31, 2021, 2020 and 2019.

Table 3.6: Troubled Debt Restructurings


			Year Ended December 31, 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	$	154	100	%	15.90	%	0	%	0	0	%	$	0
International card businesses	123		100		27.70		0		0	0		0
Total credit card	277		100		21.15		0		0	0		0
Consumer Banking:
Auto	371		43		8.72		93		4	0		1
Retail banking	3		13		2.94		30		42	0		0
Total consumer banking	374		42		8.70		93		4	0		1
Commercial Banking:
Commercial and multifamily real estate	49		21		1.19		85		11	0		0
Commercial and industrial	112		0		0.00		30		6	0		0
Total commercial banking	161		6		1.19		46		9	0		0
Total	$	812	55		16.26		52		5	0		$	1


			Year Ended December 31, 2019
			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	$	351	100	%	16.60	%	0	%	0	0	%	$	0
International card businesses	173		100		27.28		0		0	0		0
Total credit card	524		100		20.12		0		0	0		0
Consumer Banking:
Auto	268		39		3.63		90		7	1		1
Retail banking	7		11		10.66		54		3	33		0
Total consumer banking	275		38		3.68		89		7	2		1
Commercial Banking:
Commercial and multifamily real estate	39		87		0.00		13		1	0		0
Commercial and industrial	159		3		0.33		20		8	0		0
Total commercial lending	198		19		0.04		18		7	0		0
Small-ticket commercial real estate	1		0		0.00		0		0	0		0
Total commercial banking	199		19		0.04		18		7	0		0
Total	$	998	67		16.37		28		7	0		$	1

(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.


	Year Ended December 31,
		2021	2020			2019
(Dollars in millions)			Number of Contracts	Amount		Number of Contracts	Amount		Number of Contracts	Amount
Credit Card:
Domestic credit card			18,694	$	35	32,639	$	69	47,086	$	99
International card businesses			58,914	87		58,363	87		69,470	110
Total credit card			77,608	122		91,002	156		116,556	209
Consumer Banking:
Auto			8,847	136		5,877	77		5,575	70
Retail banking			9	0		10	1		24	2
Total consumer banking			8,856	136		5,887	78		5,599	72
Commercial Banking:
Commercial and multifamily real estate			1	50		1	50		0	0
Commercial and industrial			7	120		15	130		1	25
Total commercial banking			8	170		16	180		1	25
Total			86,472	$	428	96,905	$	414	122,156	$	306

In addition to our investment securities, we pledged loan collateral of $10.3 billion and $14.1 billion to secure our FHLB borrowing capacity of $19.7 billion and $19.6 billion as of December 31, 2021 and 2020, respectively. We also pledged loan collateral of $26.5 billion and $25.5 billion to secure our Federal Reserve Discount Window borrowing capacity of $19.6 billion and $20.0 billion as of December 31, 2021 and 2020, respectively. In addition to loans pledged, we have securitized a portion of our credit card and auto loan portfolios. See “Note 5—Variable Interest Entities and Securitizations” for additional information.

Our total loans held for sale was $5.9 billion and $2.7 billion as of December 31, 2021 and 2020, respectively. We originated for sale $9.1 billion, $10.0 billion and $9.0 billion of commercial multifamily real estate loans in 2021, 2020 and 2019, respectively, and retained servicing rights upon the sale of these loans.

For the years ended December 31, 2021 and 2020, we converted $223 million and $602 million of revolving loans to term loans, respectively, primarily in our domestic credit card and commercial banking loan portfolios.