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 the tables in this note 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 $2.0 billion and $1.9 billion as of March 31, 2023 and December 31, 2022, respectively, 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 March 31, 2023 and December 31, 2022. The delinquency aging includes all past due loans, both performing and nonperforming.

Table 3.1: Loan Portfolio Composition and Aging Analysis


	March 31, 2023
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	126,189	$	1,406	$	1,033	$	2,352	$	4,791	$	130,980
International card businesses	5,898		89		59		116		264		6,162
Total credit card	132,087		1,495		1,092		2,468		5,055		137,142
Consumer Banking:
Auto	72,410		2,771		1,171		300		4,242		76,652
Retail banking	1,473		7		3		16		26		1,499
Total consumer banking	73,883		2,778		1,174		316		4,268		78,151
Commercial Banking:
Commercial and multifamily real estate	37,096		35		0		1		36		37,132
Commercial and industrial	56,224		1		27		159		187		56,411
Total commercial banking	93,320		36		27		160		223		93,543
Total loans(1)	$	299,290	$	4,309	$	2,293	$	2,944	$	9,546	$	308,836
% of Total loans	96.91%		1.40%		0.74%		0.95%		3.09%		100.00%


	December 31, 2022
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	127,066	$	1,405	$	975	$	2,135	$	4,515	$	131,581
International card businesses	5,895		86		58		110		254		6,149
Total credit card	132,961		1,491		1,033		2,245		4,769		137,730
Consumer Banking:
Auto	73,467		3,101		1,418		387		4,906		78,373
Retail banking	1,518		13		4		17		34		1,552
Total consumer banking	74,985		3,114		1,422		404		4,940		79,925

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 March 31, 2023 and December 31, 2022. Nonperforming loans generally include loans that have been placed on nonaccrual status.


	March 31, 2023									December 31, 2022
(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	$	2,352		N/A			$	0		$	2,135		N/A			$	0
International card businesses	113			$	7		0			105			$	9		0
Total credit card	2,465			7			0			2,240			9			0
Consumer Banking:
Auto	0			515			0			0			595			0
Retail banking	0			44			6			0			39			8
Total consumer banking	0			559			6			0			634			8
Commercial Banking:
Commercial and multifamily real estate	0			336			255			0			271			246
Commercial and industrial	0			404			231			0			430			294
Total commercial banking	0			740			486			0			701			540
Total	$	2,465		$	1,306		$	492		$	2,240		$	1,344		$	548
% of Total loans held for investment	0.80		%	0.42		%	0.16		%	0.72		%	0.43		%	0.18		%

__________

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 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.


	March 31, 2023						December 31, 2022
(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	$	125,911	$	278	$	126,189	$	126,811	$	255	$	127,066
30-59 days	1,390		16		1,406		1,388		17		1,405
60-89 days	1,022		11		1,033		964		11		975
Greater than 90 days	2,338		14		2,352		2,121		14		2,135
Total domestic credit card	130,661		319		130,980		131,284		297		131,581

International card businesses:
Current	5,869		29		5,898		5,866		29		5,895
30-59 days	86		3		89		83		3		86
60-89 days	57		2		59		55		3		58
Greater than 90 days	113		3		116		106		4		110
Total international card businesses	6,125		37		6,162		6,110		39		6,149
Total credit card	$	136,786	$	356	$	137,142	$	137,394	$	336	$	137,730

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 consider 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 March 31, 2023 and December 31, 2022. 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.


	March 31, 2023
	Term Loans by Vintage Year
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total

Auto—At origination FICO scores:(1)
Greater than 660	$	3,015	$	16,404	$	12,968	$	4,729	$	2,193	$	985	$	40,294	$	0	$	0	$	40,294
621-660	1,275		5,760		4,598		1,998		1,001		525		15,157		0		0		15,157
620 or below	1,812		7,179		5,904		3,463		1,851		992		21,201		0		0		21,201
Total auto	6,102		29,343		23,470		10,190		5,045		2,502		76,652		0		0		76,652

Retail banking—Delinquency status:
Current	37		150		112		77		128		567		1,071		397		5		1,473
30-59 days	0		0		1		0		0		1		2		5		0		7
60-89 days	0		0		0		1		0		0		1		2		0		3
Greater than 90 days	0		0		1		0		0		10		11		4		1		16
Total retail banking	37		150		114		78		128		578		1,085		408		6		1,499
Total consumer banking	$	6,139	$	29,493	$	23,584	$	10,268	$	5,173	$	3,080	$	77,737	$	408	$	6	$	78,151


	December 31, 2022
	Term Loans by Vintage Year
(Dollars in millions)	2022		2021		2020		2019		2018		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total

Auto—At origination FICO scores:(1)
Greater than 660	$	17,872	$	14,246	$	5,354	$	2,595	$	1,032	$	328	$	41,427	$	0	$	0	$	41,427
621-660	6,212		5,060		2,257		1,167		513		185		15,394		0		0		15,394
620 or below	7,717		6,501		3,898		2,144		914		378		21,552		0		0		21,552
Total auto	31,801		25,807		11,509		5,906		2,459		891		78,373		0		0		78,373

Retail banking—Delinquency status:
Current	166		128		82		133		127		470		1,106		408		4		1,518
30-59 days	2		1		0		0		0		2		5		8		0		13
60-89 days	0		1		0		0		0		1		2		2		0		4
Greater than 90 days	0		0		0		0		3		8		11		4		2		17
Total retail banking	168		130		82		133		130		481		1,124		422		6		1,552
Total consumer banking	$	31,969	$	25,937	$	11,591	$	6,039	$	2,589	$	1,372	$	79,497	$	422	$	6	$	79,925

__________

(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. 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.


	March 31, 2023
	Term Loans by Vintage Year
(Dollars in millions)	2023		2022		2021		2020		2019		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	2,106	$	8,585	$	3,630	$	825	$	1,363	$	3,064	$	19,573	$	13,445	$	25	$	33,043
Criticized performing	533		906		415		137		367		1,283		3,641		112		0		3,753
Criticized nonperforming	0		81		26		0		77		152		336		0		0		336
Total commercial and multifamily real estate	2,639		9,572		4,071		962		1,807		4,499		23,550		13,557		25		37,132
Commercial and industrial
Noncriticized	4,497		19,171		5,118		2,456		1,301		3,103		35,646		17,150		125		52,921
Criticized performing	365		939		437		91		120		169		2,121		965		0		3,086
Criticized nonperforming	26		195		17		21		69		21		349		55		0		404
Total commercial and industrial	4,888		20,305		5,572		2,568		1,490		3,293		38,116		18,170		125		56,411
Total commercial banking	$	7,527	$	29,877	$	9,643	$	3,530	$	3,297	$	7,792	$	61,666	$	31,727	$	150	$	93,543


	December 31, 2022
	Term Loans by Vintage Year
(Dollars in millions)	2022		2021		2020		2019		2018		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:(1)
Commercial and multifamily real estate
Noncriticized	$	9,527	$	4,086	$	1,161	$	1,671	$	1,280	$	2,898	$	20,623	$	13,254	$	25	$	33,902
Criticized performing	814		376		202		412		302		1,061		3,167		113		0		3,280
Criticized nonperforming	101		22		0		13		19		116		271		0		0		271
Total commercial and multifamily real estate	10,442		4,484		1,363		2,096		1,601		4,075		24,061		13,367		25		37,453
Commercial and industrial
Noncriticized	22,105		6,031		2,934		1,809		973		2,658		36,510		17,187		21		53,718
Criticized performing	992		560		156		160		167		76		2,111		964		0		3,075
Criticized nonperforming	196		21		5		87		40		5		354		76		0		430
Total commercial and industrial	23,293		6,612		3,095		2,056		1,180		2,739		38,975		18,227		21		57,223
Total commercial banking	$	33,735	$	11,096	$	4,458	$	4,152	$	2,781	$	6,814	$	63,036	$	31,594	$	46	$	94,676

__________

As part of our loss mitigation efforts, we may provide short-term (one to twelve months) or long-term (greater than twelve months) modifications to a borrower experiencing financial difficulty to improve long-term collectability of the loan and to avoid the need for repossession or foreclosure of collateral.

On January 1, 2023, we adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures using the modified retrospective adoption method. The ASU eliminates the accounting guidance for TDRs and enhances disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty (“FDMs”). The types of modifications we offer borrowers experiencing financial difficulty did not change as a result of ASU 2022-02. Under this new accounting guidance, FDMs are accumulated and the performance of each loan that received a FDM is reported on a rolling twelve month basis. For the interim reporting period ended March 31, 2023, FDMs and the related borrower performance information pertain to FDMs which occurred in the first three months of 2023. For additional information on FDMs, see “Note 1—Summary of Significant Accounting Policies.”

For the interim periods prior to adoption of ASU 2022-02, our previous TDR disclosures are included below in the “Troubled Debt Restructurings” section. For additional information on loan modifications classified as a TDR prior to January 1, 2023, see “Part II—Item 8. Financial Statements and Supplementary Data—Note 1—Summary of Significant Accounting Policies” in our 2022 Form 10-K. FDM disclosures are not directly comparable to the prior period TDR disclosures due to differences in the respective accounting guidance and disclosure requirements.


	Three Months Ended March 31, 2023
	Credit Card						Consumer Banking						Commercial Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Total Credit Card		Auto		Retail Banking		Total Consumer Banking		Commercial and multifamily real estate		Commercial and industrial		Total Commercial Banking		Total
Interest rate reduction:
Loans modified	$	150	$	38	$	188	—		—		—		—		—		—		$	188
Average rate reduction	19.02%		25.74%		20.37%		N/A		N/A		N/A		N/A		N/A		N/A
Term extension:
Loans modified	—		—		—		$	42	$	3	$	45	$	129	$	66	$	195	$	240
Average term extension (months)	N/A		N/A		N/A		4		14		5		8		7		8
Principal balance reduction:
Loans modified	—		—		—		$	7	—		$	7	—		—		—		$	7
Gross balance reduction	N/A		N/A		N/A		—		N/A		—		N/A		N/A		N/A
Interest rate reduction and term extension:
Loans modified	—		—		—		$	202	—		$	202	—		—		—		$	202
Average rate reduction	N/A		N/A		N/A		8.75%		N/A		8.75%		N/A		N/A		N/A
Average term extension (months)	N/A		N/A		N/A		6		N/A		6		N/A		N/A		N/A
Principal Balance reduction and term extension:
Loans modified	—		—		—		—		—		—		—		$	17	$	17	$	17
Gross Balance Reduction	N/A		N/A		N/A		N/A		N/A		N/A		N/A		3		3
Average term extension (months)	N/A		N/A		N/A		N/A		N/A		N/A		N/A		60		60
Other(1):
Loans modified	—		—		—		$	1	—		$	1	—		$	132	$	132	$	133
Total:
Total loans modified	$	150	$	38	$	188	$	252	$	3	$	255	$	129	$	215	$	344	$	787
% of total class of receivables	0.11%		0.62%		0.14%		0.33%		0.18%		0.33%		0.35%		0.38%		0.37%		0.25%


	Three Months Ended March 31, 2023
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Credit Card:
Domestic credit card	$	62	$	36	$	23	$	29	$	88	$	150
International card businesses	11		5		4		18		27		38
Total credit card	73		41		27		47		115		188
Consumer Banking:
Auto	224		18		7		3		28		252
Retail banking	2		0		0		1		1		3
Total consumer banking	226		18		7		4		29		255
Commercial Banking:
Commercial and multifamily real estate	99		30		0		0		30		129
Commercial and industrial	129		0		0		86		86		215
Total commercial banking	228		30		0		86		116		344
Total	$	527	$	89	$	34	$	137	$	260	$	787

FDMs may subsequently enter default. A default occurs if a FDM is either 90 days or more delinquent, has been charged off, or has been reclassified from accrual to nonaccrual status. FDMs that entered default subsequent to their modification were insignificant during the three months ended March 31, 2023. Loans that entered a modification program in any stage of delinquency where the borrower has complied with the modified terms, are included in the aging table above, but are not considered to have subsequently defaulted for purposes of this disclosure. The allowance for any FDMs that have subsequently defaulted is measured using the same methodology as the allowance for loans held for investment. See “Note 1—Summary of Significant Accounting Policies” for additional information.

We adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023, and elected the modified retrospective adoption method. The ASU eliminates the accounting guidance for TDRs, and establishes disclosure requirements, to be applied prospectively, for loans with FDMs.


			Three Months Ended March 31, 2022
			Reduced Interest Rate				Term Extension
(Dollars in millions)	Total Loans Modified(2)		% of TDR Activity(3)		Average Rate Reduction		% of TDR Activity(3)		Average Term Extension (Months)
Credit Card:
Domestic credit card	$	62	100	%	14.67	%	N/A		N/A
International card businesses	34		100		28.00		N/A		N/A
Total credit card	96		100		19.40		N/A		N/A
Consumer Banking:
Auto	239		55		8.80		97	%	4
Retail banking	1		N/A		N/A		100		6
Total consumer banking	240		55		8.80		97		4
Commercial Banking:
Commercial and multifamily real estate	131		7		0.59		62		12
Commercial and industrial	38		N/A		N/A		86		10
Total commercial banking	169		6		0.59		68		11
Total	$	505

(2)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 modification.

The following table presents the type, number and amortized cost of loans modified in a TDR 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 March 31, 2022
(Dollars in millions)		Number of Contracts	Amount
Credit Card:
Domestic credit card		6,012	$	11
International card businesses		16,507	19
Total credit card		22,519	30
Consumer Banking:
Auto		1,971	33
Retail banking		0	0
Total consumer banking		1,971	33
Commercial Banking:

Commercial and industrial		1	31
Total commercial banking		1	31
Total		24,491	$	94

We pledged loan collateral of $9.2 billion and $9.8 billion to secure a portion of our FHLB borrowing capacity of $19.7 billion and $19.9 billion as of March 31, 2023 and December 31, 2022, respectively. We also pledged loan collateral of $32.9 billion and $34.1 billion to secure our Federal Reserve Discount Window borrowing capacity of $16.9 billion and $19.7 billion as of March 31, 2023 and December 31, 2022, 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.