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 $2.2 billion and $1.9 billion as of September 30, 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 September 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


	September 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	$	134,267	$	1,820	$	1,329	$	2,904	$	6,053	$	140,320
International card businesses	6,170		105		67		121		293		6,463
Total credit card	140,437		1,925		1,396		3,025		6,346		146,783
Consumer Banking:
Auto	70,665		2,961		1,409		421		4,791		75,456
Retail banking	1,357		15		3		13		31		1,388
Total consumer banking	72,022		2,976		1,412		434		4,822		76,844
Commercial Banking:
Commercial and multifamily real estate	35,324		126		37		135		298		35,622
Commercial and industrial	55,322		5		0		204		209		55,531
Total commercial banking	90,646		131		37		339		507		91,153
Total loans(1)	$	303,105	$	5,032	$	2,845	$	3,798	$	11,675	$	314,780
% of Total loans	96.29%		1.60%		0.90%		1.21%		3.71%		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 September 30, 2023 and December 31, 2022. Nonperforming loans generally include loans that have been placed on nonaccrual status.


	September 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	$	2,904		N/A			$	0		$	2,135		N/A			$	0
International card businesses	115			$	9		0			105			$	9		0
Total credit card	3,019			9			0			2,240			9			0
Consumer Banking:
Auto	0			639			0			0			595			0
Retail banking	0			45			23			0			39			8
Total consumer banking	0			684			23			0			634			8
Commercial Banking:
Commercial and multifamily real estate	0			459			312			0			271			246
Commercial and industrial	13			363			199			0			430			294
Total commercial banking	13			822			511			0			701			540
Total	$	3,032		$	1,515		$	534		$	2,240		$	1,344		$	548
% of Total loans held for investment	0.96		%	0.48		%	0.17		%	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.


	September 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	$	133,953	$	314	$	134,267	$	126,811	$	255	$	127,066
30-59 days	1,796		24		1,820		1,388		17		1,405
60-89 days	1,312		17		1,329		964		11		975
Greater than 90 days	2,879		25		2,904		2,121		14		2,135
Total domestic credit card	139,940		380		140,320		131,284		297		131,581

International card businesses:
Current	6,140		30		6,170		5,866		29		5,895
30-59 days	101		4		105		83		3		86
60-89 days	64		3		67		55		3		58
Greater than 90 days	117		4		121		106		4		110
Total international card businesses	6,422		41		6,463		6,110		39		6,149
Total credit card	$	146,362	$	421	$	146,783	$	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 September 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.


	September 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	$	9,809	$	13,757	$	10,562	$	3,608	$	1,499	$	471	$	39,706	$	0	$	0	$	39,706
621-660	3,891		4,840		3,724		1,535		713		277		14,980		0		0		14,980
620 or below	5,359		6,053		4,775		2,682		1,345		556		20,770		0		0		20,770
Total auto	19,059		24,650		19,061		7,825		3,557		1,304		75,456		0		0		75,456

Retail banking—Delinquency status:
Current	73		153		78		69		121		497		991		361		5		1,357
30-59 days	0		0		0		0		0		3		3		12		0		15
60-89 days	0		0		0		0		0		1		1		2		0		3
Greater than 90 days	0		0		0		0		0		8		8		4		1		13
Total retail banking	73		153		78		69		121		509		1,003		379		6		1,388
Total consumer banking	$	19,132	$	24,803	$	19,139	$	7,894	$	3,678	$	1,813	$	76,459	$	379	$	6	$	76,844


	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 Fair Isaac Corporation (“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.

The following table presents our commercial banking portfolio of loans held for investment by internal risk ratings as of September 30, 2023 and December 31, 2022. The internal risk rating status includes all past due loans, both performing and nonperforming. Certain amounts as of December 31, 2022 have been reclassified between vintage years to reflect our revised methodology for loans impacted by LIBOR transition.


	September 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	$	2,919	$	4,848	$	3,092	$	1,247	$	2,421	$	3,796	$	18,323	$	13,215	$	25	$	31,563
Criticized performing	230		1,217		560		258		419		901		3,585		15		0		3,600
Criticized nonperforming	0		0		46		0		127		286		459		0		0		459
Total commercial and multifamily real estate	3,149		6,065		3,698		1,505		2,967		4,983		22,367		13,230		25		35,622
Commercial and industrial
Noncriticized	4,704		12,196		7,329		3,796		2,595		5,319		35,939		15,352		114		51,405
Criticized performing	242		815		575		270		344		457		2,703		1,060		0		3,763
Criticized nonperforming	0		25		22		25		154		81		307		56		0		363
Total commercial and industrial	4,946		13,036		7,926		4,091		3,093		5,857		38,949		16,468		114		55,531
Total commercial banking	$	8,095	$	19,101	$	11,624	$	5,596	$	6,060	$	10,840	$	61,316	$	29,698	$	139	$	91,153


	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	$	5,860	$	4,807	$	1,676	$	2,879	$	1,927	$	3,474	$	20,623	$	13,254	$	25	$	33,902
Criticized performing	359		487		212		535		378		1,196		3,167		113		0		3,280
Criticized nonperforming	1		22		0		94		19		135		271		0		0		271
Total commercial and multifamily real estate	6,220		5,316		1,888		3,508		2,324		4,805		24,061		13,367		25		37,453
Commercial and industrial
Noncriticized	13,485		7,993		4,466		3,420		1,797		5,349		36,510		17,187		21		53,718
Criticized performing	482		686		216		336		228		163		2,111		964		0		3,075
Criticized nonperforming	30		29		0		156		82		57		354		76		0		430
Total commercial and industrial	13,997		8,708		4,682		3,912		2,107		5,569		38,975		18,227		21		57,223
Total commercial banking	$	20,217	$	14,024	$	6,570	$	7,420	$	4,431	$	10,374	$	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 September 30, 2023, FDMs and the related borrower performance information pertain to FDMs which occurred in the three and nine months ended September 30, 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 September 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	$	200		$	42		$	242		—			—			—			—			—			—			$	242
Term extension	—			—			—			$	14		$	2		$	16		$	128		$	147		$	275		291
Principal balance reduction	—			—			—			8			—			8			—			—			—			8

Interest rate reduction and term extension	7			—			7			248			—			248			—			26			26			281
Other(1)	—			—			—			2			7			9			—			56			56			65
Total loans modified	$	207		$	42		$	249		$	272		$	9		$	281		$	128		$	229		$	357		$	887
% of total class of receivables	0.15		%	0.65		%	0.17		%	0.36		%	0.62		%	0.36		%	0.36		%	0.41		%	0.39		%	0.28		%


	Nine Months Ended September 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	$	437		$	76		$	513		—			—			—			—			—			—			$	513
Term extension	—			—			—			$	76		$	3		$	79		$	327		$	347		$	674		753
Principal balance reduction	—			—			—			17			—			17			—			—			—			17
Principal balance reduction and term extension	—			—			—			—			—			—			—			15			15			15
Interest rate reduction and term extension	10			—			10			504			—			504			—			26			26			540

Other(1)	—			—			—			3			7			10			54			151			205			215
Total loans modified	$	447		$	76		$	523		$	600		$	10		$	610		$	381		$	539		$	920		$	2,053
% of total class of receivables	0.32		%	1.17		%	0.36		%	0.79		%	0.75		%	0.79		%	1.07		%	0.97		%	1.01		%	0.65		%

__________


	Three Months Ended September 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	19.40%	27.41%		8.67%	—	—	0.25%
Payment delay duration (in months)	12	0		6	8	11	17
Principal balance reduction	—	—		—	—	—	—


	Nine Months Ended September 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	19.19%	27.08%		8.74%		2.00%		—		0.25%
Payment delay duration (in months)	12	0		6		13		15		9
Principal balance reduction	—	—		$	1	—		$	20	$	3

We monitor loan performance trends, including FDMs, to assess and manage our exposure to credit risk. See “Note 1—Summary of Significant Accounting Policies” for additional information on how the allowance for modified loans is calculated for each portfolio segment.


	September 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	$	283	$	65	$	40	$	59	$	164	$	447
International card businesses	35		8		8		25		41		76
Total credit card	318		73		48		84		205		523
Consumer Banking:
Auto	457		79		46		18		143		600
Retail banking	10		0		0		0		0		10
Total consumer banking	467		79		46		18		143		610
Commercial Banking:
Commercial and multifamily real estate	318		0		0		63		63		381
Commercial and industrial	417		4		0		118		122		539
Total commercial banking	735		4		0		181		185		920
Total	$	1,520	$	156	$	94	$	283	$	533	$	2,053

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. Loans that entered a modification program in any stage of delinquency are included in the aging table above. Loans that entered a modification program while in default 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.


	Three Months Ended September 30, 2023
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total Loans
Credit Card:
Domestic credit card	$	17	$	0	$	0	$	17
International card businesses	6		0		0		6
Total credit card	23		0		0		23
Consumer Banking:
Auto	0		7		77		84

Total consumer banking	0		7		77		84
Commercial Banking:
Commercial and multifamily real estate	0		46		0		46
Commercial and industrial	0		51		0		51
Total commercial banking	0		97		0		97
Total	$	23	$	104	$	77	$	204


	Nine Months Ended September 30, 2023
(Dollars in millions)	Interest Rate Reduction		Term Extension		Interest Rate Reduction and Term Extension		Total Loans
Credit Card:
Domestic credit card	$	39	$	0	$	0	$	39
International card businesses	9		0		0		9
Total credit card	48		0		0		48
Consumer Banking:
Auto	0		9		129		138

Total consumer banking	0		9		129		138
Commercial Banking:
Commercial and multifamily real estate	0		46		0		46
Commercial and industrial	0		51		0		51
Total commercial banking	0		97		0		97
Total	$	48	$	106	$	129	$	283

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 September 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	$	77	100%	16.79%	N/A	N/A
International card businesses	29		100	27.52	N/A	N/A
Total credit card	106		100	19.77	N/A	N/A
Consumer Banking:
Auto	275		64	8.45	97%	5
Retail banking	1		N/A	N/A	60	14
Total consumer banking	276		64	8.45	97	5
Commercial Banking:
Commercial and multifamily real estate	38		58	0.78	100	11
Commercial and industrial	75		N/A	N/A	98	17
Total commercial banking	113		20	0.78	99	15
Total	$	495


			Nine Months Ended September 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	$	196	100%	15.76%	N/A	N/A
International card businesses	93		100	27.73	N/A	N/A
Total credit card	289		100	19.63	N/A	N/A
Consumer Banking:
Auto	794		56	8.59	97%	4
Retail banking	2		N/A	N/A	76	13
Total consumer banking	796		56	8.59	97	4
Commercial Banking:
Commercial and multifamily real estate	302		10	0.35	80	13
Commercial and industrial	242		N/A	N/A	62	14
Total commercial banking	544		6	0.35	72	13
Total	$	1,629

(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 September 30, 2022			Nine Months Ended September 30, 2022
(Dollars in millions)	Number of Contracts	Amount		Number of Contracts	Amount
Credit Card:
Domestic credit card	9,927	$	19	23,951	$	47
International card businesses	18,971	19		55,089	58
Total credit card	28,898	38		79,040	105
Consumer Banking:
Auto	4,592	82		10,102	178
Retail banking	0	0		0	0
Total consumer banking	4,592	82		10,102	178
Commercial Banking:

Commercial and industrial	0	0		3	35
Total commercial banking	0	0		3	35
Total	33,490	$	120	89,145	$	318

We pledged loan collateral of $7.8 billion and $9.8 billion to secure a portion of our FHLB borrowing capacity of $31.6 billion and $19.9 billion as of September 30, 2023 and December 31, 2022, respectively. We also pledged loan collateral of $69.8 billion and $34.1 billion to secure our Federal Reserve Discount Window borrowing capacity of $40.9 billion and $19.7 billion as of September 30, 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.