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Loans (Tables)

9 Months Ended

Sep. 30, 2023

Sep. 30, 2022

Loan Portfolio Composition and Aging Analysis

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


	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 September 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 September 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


	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		%

__________

(1)We recognized interest income for loans classified as nonperforming of $11 million and $47 million for the three and nine months ended September 30, 2023, respectively, and $2 million and $29 million for the three and nine months ended September 30, 2022, respectively

Credit Quality Indicator

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

Table 3.3: Credit Card Delinquency Status


	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

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.

Table 3.4: Consumer Banking Portfolio by Vintage Year


	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 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.

Table 3.5: Commercial Banking Portfolio by Internal Risk Ratings


	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

__________

(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 nine months ended September 30, 2023.

Table 4.2: Gross Charge-Offs by Vintage Year


	Nine Months Ended 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
Credit Card
Domestic credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		$	5,100	$	56	$	5,156
International card business	N/A		N/A		N/A		N/A		N/A		N/A		N/A		315		10		325
Total credit card	N/A		N/A		N/A		N/A		N/A		N/A		N/A		5,415		66		5,481
Consumer Banking
Auto	$	52	$	551	$	523	$	246	$	141	$	89	$	1,602	0		0		1,602
Retail banking	0		0		1		0		0		1		2		49		0		51
Total consumer banking	52		551		524		246		141		90		1,604		49		0		1,653
Commercial Banking
Commercial and multifamily real estate	0		29		47		22		105		201		404		0		0		404
Commercial and industrial	2		9		0		0		29		3		43		15		0		58
Total commercial banking	2		38		47		22		134		204		447		15		0		462
Total	$	54	$	589	$	571	$	268	$	275	$	294	$	2,051	$	5,479	$	66	$	7,596

TDR Disclosures

The following table presents the major modification types, amortized cost amounts for each modification type and financial effects for all FDMs undertaken during the three and nine months ended September 30, 2023.

Table 3.6: Financial Difficulty Modifications to Borrowers


	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		%

__________

(1)Consumer Banking and 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 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

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

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


	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

__________

(1)Commitments to lend additional funds on FDMs totaled $75 million as of September 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 nine months ended September 30, 2022.

Table 3.10: Troubled Debt Restructurings(1)


			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

__________

(1)Commitments to lend additional funds on loans modified in TDRs totaled $214 million as of September 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 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

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods

Table 3.9 Subsequent Defaults of Financial Difficulty Modifications to Borrowers


	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