Loans (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2023

Jun. 30, 2023

Receivables [Abstract]

Loan Portfolio Composition and Aging Analysis

The table below presents the composition and aging analysis of our loans held for investment portfolio as of June 30, 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

	June 30, 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	$	130,886	$	1,554	$	1,160	$	2,375	$	5,089	$	135,975
International card businesses	6,232		103		59		122		284		6,516
Total credit card	137,118		1,657		1,219		2,497		5,373		142,491
Consumer Banking:
Auto	71,273		2,831		1,370		367		4,568		75,841
Retail banking	1,407		14		4		14		32		1,439
Total consumer banking	72,680		2,845		1,374		381		4,600		77,280
Commercial Banking:
Commercial and multifamily real estate	35,905		91		40		5		136		36,041
Commercial and industrial	55,155		8		123		225		356		55,511
Total commercial banking	91,060		99		163		230		492		91,552
Total loans(1)	$	300,858	$	4,601	$	2,756	$	3,108	$	10,465	$	311,323
% of Total loans	96.64%		1.48%		0.88%		1.00%		3.36%		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

	December 31, 2022
			Delinquent Loans
(Dollars in millions)	Current		30-59 Days		60-89 Days		> 90 Days		Total Delinquent Loans		Total Loans
Commercial Banking:
Commercial and multifamily real estate	37,417		0		1		35		36		37,453
Commercial and industrial	56,942		61		55		165		281		57,223
Total commercial banking	94,359		61		56		200		317		94,676
Total loans(1)	$	302,305	$	4,666	$	2,511	$	2,849	$	10,026	$	312,331
% of Total loans	96.79%		1.50%		0.80%		0.91%		3.21%		100.00%

__________(1)Loans include unamortized premiums, discounts, and deferred fees and costs totaling $1.4 billion as of both June 30, 2023 and December 31, 2022

90 Plus Day Delinquent Loans Accruing Interest and Nonperforming Loans

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

Table 3.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans

	June 30, 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	$	2,375		N/A			$	0		$	2,135		N/A			$	0
International card businesses	116			$	10		0			105			$	9		0
Total credit card	2,491			10			0			2,240			9			0
Consumer Banking:
Auto	0			588			0			0			595			0
Retail banking	0			43			19			0			39			8
Total consumer banking	0			631			19			0			634			8
Commercial Banking:
Commercial and multifamily real estate	0			416			303			0			271			246
Commercial and industrial	0			395			218			0			430			294
Total commercial banking	0			811			521			0			701			540
Total	$	2,491		$	1,452		$	540		$	2,240		$	1,344		$	548
% of Total loans held for investment	0.80		%	0.47		%	0.17		%	0.72		%	0.43		%	0.18		%

__________

(1)We recognized interest income for loans classified as nonperforming of $5 million and $17 million for the three and six months ended June 30, 2023, respectively, and $1 million and $11 million for the three and six months ended June 30, 2022, respectively

Credit Quality Indicator

The table below presents our credit card portfolio by delinquency status as of June 30, 2023 and December 31, 2022.

Table 3.3: Credit Card Delinquency Status

	June 30, 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	$	130,591	$	295	$	130,886	$	126,811	$	255	$	127,066
30-59 days	1,535		19		1,554		1,388		17		1,405
60-89 days	1,148		12		1,160		964		11		975
Greater than 90 days	2,356		19		2,375		2,121		14		2,135
Total domestic credit card	135,630		345		135,975		131,284		297		131,581
International card businesses:
Current	6,209		23		6,232		5,866		29		5,895
30-59 days	101		2		103		83		3		86
60-89 days	58		1		59		55		3		58
Greater than 90 days	121		1		122		106		4		110
Total international card businesses	6,489		27		6,516		6,110		39		6,149
Total credit card	$	142,119	$	372	$	142,491	$	137,394	$	336	$	137,730

The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of June 30, 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.

Table 3.4: Consumer Banking Portfolio by Vintage Year

	June 30, 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	$	6,319	$	15,029	$	11,726	$	4,147	$	1,828	$	695	$	39,744	$	0	$	0	$	39,744
621-660	2,632		5,284		4,145		1,756		850		388		15,055		0		0		15,055
620 or below	3,725		6,604		5,320		3,052		1,586		755		21,042		0		0		21,042
Total auto	12,676		26,917		21,191		8,955		4,264		1,838		75,841		0		0		75,841
Retail banking—Delinquency status:
Current	54		150		94		72		123		530		1,023		379		5		1,407
30-59 days	0		3		0		1		0		3		7		7		0		14
60-89 days	0		0		0		0		0		1		1		3		0		4
Greater than 90 days	0		0		0		0		0		9		9		4		1		14
Total retail banking	54		153		94		73		123		543		1,040		393		6		1,439
Total consumer banking	$	12,730	$	27,070	$	21,285	$	9,028	$	4,387	$	2,381	$	76,881	$	393	$	6	$	77,280

	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 following table presents our commercial banking portfolio of loans held for investment by internal risk ratings as of June 30, 2023 and December 31, 2022. The internal risk rating status includes all past due loans, both performing and nonperforming.

Table 3.5: Commercial Banking Portfolio by Internal Risk Ratings

	June 30, 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	$	5,154	$	7,819	$	2,037	$	608	$	965	$	2,536	$	19,119	$	13,317	$	25	$	32,461
Criticized performing	669		1,098		265		142		331		639		3,144		20		0		3,164
Criticized nonperforming	30		64		21		0		30		271		416		0		0		416
Total commercial and multifamily real estate	5,853		8,981		2,323		750		1,326		3,446		22,679		13,337		25		36,041
Commercial and industrial
Noncriticized	7,677		17,297		4,359		2,223		717		2,935		35,208		16,728		186		52,122
Criticized performing	407		763		330		52		260		330		2,142		852		0		2,994
Criticized nonperforming	8		22		43		24		145		97		339		56		0		395
Total commercial and industrial	8,092		18,082		4,732		2,299		1,122		3,362		37,689		17,636		186		55,511
Total commercial banking	$	13,945	$	27,063	$	7,055	$	3,049	$	2,448	$	6,808	$	60,368	$	30,973	$	211	$	91,552

	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

__________

(1)Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities.

The table below presents gross charge-offs for loans held for investment by vintage year during the six months ended June 30, 2023.

Table 4.2: Gross Charge-Offs by Vintage Year

	Six Months Ended June 30, 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
Credit Card
Domestic credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		$	3,310	$	35	$	3,345
International card business	N/A		N/A		N/A		N/A		N/A		N/A		N/A		205		6		211
Total credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		3,515		41		3,556
Consumer Banking
Auto	$	13	$	344	$	341	$	167	$	96	$	63	$	1,024	0		0		1,024
Retail banking	0		0		1		0		0		0		1		32		0		33
Total consumer banking	13		344		342		167		96		63		1,025		32		0		1,057
Commercial Banking
Commercial and multifamily real estate	0		29		46		22		98		185		380		0		0		380
Commercial and industrial	2		2		0		0		0		3		7		15		0		22
Total commercial banking	2		31		46		22		98		188		387		15		0		402
Total	$	15	$	375	$	388	$	189	$	194	$	251	$	1,412	$	3,562	$	41	$	5,015

TDR Disclosures

The following table presents the major modification types, amortized cost amounts per modification and financial effects for all FDMs undertaken during the three and six months ended June 30, 2023.

Table 3.6: Financial Difficulty Modifications to Borrowers

	Three Months Ended June 30, 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	$	154		$	40		$	194		$	—		$	—		$	—		$	—		$	—		$	—		$	194
Term extension	—			—			—			41			1			42			147			172			319			361
Principal balance reduction	—			—			—			7			—			7			64			—			64			71
Interest rate reduction and term extension	—			—			—			173			—			173			—			—			—			173
Other(1)	—			—			—			1			—			1			54			21			75			76
Total loans modified	$	154		$	40		$	194		$	222		$	1		$	223		$	265		$	193		$	458		$	875
% of total class of receivables	0.11		%	0.61		%	0.14		%	0.29		%	0.08		%	0.29		%	0.74		%	0.35		%	0.50		%	0.28		%

	Six Months Ended June 30, 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	$	285		$	61		$	346		$	—		$	—		$	—		$	—		$	—		$	—		$	346
Term extension	—			—			—			77			3			80			246			237			483			563
Principal balance reduction	—			—			—			12			—			12			64			—			64			76
Principal balance reduction and term extension	—			—			—			—			—			—			—			17			17			17
Interest rate reduction and term extension	—			—			—			330			—			330			—			—			—			330
Other(1)	—			—			—			2			—			2			54			146			200			202
Total loans modified	$	285		$	61		$	346		$	421		$	3		$	424		$	364		$	400		$	764		$	1,534
% of total class of receivables	0.21		%	0.94		%	0.24		%	0.55		%	0.21		%	0.55		%	1.01		%	0.72		%	0.83		%	0.49		%

__________

(1)Commercial Banking consists of modifications other than interest rate reduction, term extension, or principal balance reduction.

Table 3.7: Financial Effects of Financial Difficulty Modifications to Borrowers

	Three Months Ended June 30, 2023
	Credit Card				Consumer Banking				Commercial Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Auto		Retail Banking		Commercial and Multifamily Real Estate		Commercial and Industrial
Weighted-average interest rate reduction	19.06%		27.99%		8.82%		2.00%		—%		—%
Payment delay duration (in months)	—		—		6		20		16		4
Principal balance reduction	$	—	$	—	$	—	$	—	$	20	$	—

	Six Months Ended June 30, 2023
	Credit Card				Consumer Banking				Commercial Banking
(Dollars in millions)	Domestic Card		International Card Businesses		Auto		Retail Banking		Commercial and Multifamily Real Estate		Commercial and Industrial
Weighted-average interest rate reduction	19.04%		26.90%		8.78%		2.00%		—%		—%
Payment delay duration (in months)	—		—		6		15		16		6
Principal balance reduction	$	—	$	—	$	—	$	—	$	23	$	—

The following table presents FDMs over a rolling 12 month period by delinquency status as of June 30, 2023.

Table 3.8 Delinquency Status of Loan Modifications to Borrowers Experiencing Financial Difficulty(1)

	June 30, 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	$	160	$	42	$	27	$	56	$	125	$	285
International card businesses	24		6		6		25		37		61
Total credit card	184		48		33		81		162		346
Consumer Banking:
Auto	337		49		26		9		84		421
Retail banking	3		0		0		0		0		3
Total consumer banking	340		49		26		9		84		424
Commercial Banking:
Commercial and multifamily real estate	339		0		0		25		25		364
Commercial and industrial	275		0		13		112		125		400
Total commercial banking	614		0		13		137		150		764
Total	$	1,138	$	97	$	72	$	227	$	396	$	1,534

__________

(1)Commitments to lend additional funds on FDMs totaled $48 million as of June 30, 2023.

The following tables present the major modification types, amortized cost amounts and financial effects of loans modified in a TDR during the three and six months ended June 30, 2022.

Table 3.10: Troubled Debt Restructurings(1)

			Three Months Ended June 30, 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	$	57	100	%	15.56	%	N/A		N/A
International card businesses	30		100		27.65		N/A		N/A
Total credit card	87		100		19.70		N/A		N/A
Consumer Banking:
Auto	280		49		8.56		97	%	4
Total consumer banking	280		49		8.56		97		4
Commercial Banking:
Commercial and multifamily real estate	133		N/A		N/A		91		14
Commercial and industrial	129		N/A		N/A		33		13
Total commercial banking	262		N/A		N/A		62		14
Total	$	629

			Six Months Ended June 30, 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	$	119	100	%	15.09	%	N/A		N/A
International card businesses	64		100		27.83		N/A		N/A
Total credit card	183		100		19.54		N/A		N/A
Consumer Banking:
Auto	519		52		8.68		97	%	4
Retail banking	1		N/A		N/A		100		12
Total consumer banking	520		52		8.68		97		4
Commercial Banking:
Commercial and multifamily real estate	264		4		0.29		77		13
Commercial and industrial	167		N/A		N/A		45		12
Total commercial banking	431		2		0.29		64		13
Total	$	1,134

__________

(1)Commitments to lend additional funds on loans modified in TDRs totaled $166 million as of June 30, 2022.

(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.

(3)Due to multiple modification types granted to some troubled borrowers, percentages may total more than 100% for certain loan types.

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.

Table 3.11: TDR—Subsequent Defaults

	Three Months Ended June 30, 2022			Six Months Ended June 30, 2022
(Dollars in millions)	Number of Contracts	Amount		Number of Contracts	Amount
Credit Card:
Domestic credit card	8,012	$	17	14,024	$	28
International card businesses	19,611	20		36,118	39
Total credit card	27,623	37		50,142	67
Consumer Banking:
Auto	3,539	63		5,510	96
Retail banking	0	0		0	0
Total consumer banking	3,539	63		5,510	96
Commercial Banking:
Commercial and industrial	2	4		3	35
Total commercial banking	2	4		3	35
Total	31,164	$	104	55,655	$	198

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods

Table 3.9 Subsequent Defaults of Financial Difficulty Modifications to Borrowers

	Three Months Ended June 30, 2023
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total Loans
Credit Card:
Domestic credit card	$	37	$	0	$	0	$	37
International card businesses	4		0		0		4
Total credit card	41		0		0		41
Consumer Banking:
Auto	0		3		51		54
Total consumer banking	0		3		51		54
Total	$	41	$	3	$	51	$	95