XML 472 R32.htm IDEA: XBRL DOCUMENT v3.21.1
Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)March 31, 2021December 31, 2020
Domestic(1):
Commercial and financial:
Fund Finance(2)
$11,054 11,531 
Leveraged loans3,103 2,923 
Overdrafts4,507 1,894 
Other(3)
1,963 2,688 
Commercial real estate2,096 2,096 
Total domestic22,723 21,132 
Foreign(1):
Commercial and financial:
Fund Finance(2)
4,768 4,432 
Leveraged loans1,109 1,242 
Overdrafts2,956 1,088 
Other(3)
29 31 
Total foreign8,862 6,793 
Total loans(2)
31,585 27,925 
Allowance for credit losses(118)(122)
Loans, net of allowance$31,467 $27,803 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $6,288 million loans to real money funds, $8,450 million private equity capital call finance loans and $832 million loans to business development companies as of March 31, 2021, compared to $6,391 million loans to real money funds, $8,380 million private equity capital call finance loans and $821 million loans to business development companies as of December 31, 2020.
(3) Includes $1,110 million securities finance loans, $831 million loans to municipalities and $51 million other loans as of March 31, 2021 and $1,911 million securities finance loans, $754 million loans to municipalities and $54 million other loans as of December 31, 2020.
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator
The following tables present our recorded loans to counterparties by risk rating, as noted above, as of the dates indicated:
March 31, 2021Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$24,147 $1,675 $25,822 
Speculative5,088 421 5,509 
Special mention111 — 111 
Substandard127 — 127 
Doubtful16 — 16 
Total(1)
$29,489 $2,096 $31,585 
December 31, 2020Commercial and FinancialCommercial Real EstateTotal Loans 
(In millions)
Investment grade$20,859 $1,724 $22,583 
Speculative4,852 372 5,224 
Special mention67 — 67 
Substandard34 — 34 
Doubtful17 — 17 
Total(1)
$25,829 $2,096 $27,925 
(1) Loans Include $7,463 million and $2,982 million of overdrafts as of March 31, 2021 and December 31, 2020 respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of March 31, 2021. For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement.
(In millions)20212020201920182017PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$4,563 $58 $385 $4 $162 $200 $11,767 $17,139 
Speculative346 438 822 721 556 42 349 3,274 
Special mention— — 48 29 34 — — 111 
Substandard— — 48 26 — 29 — 103 
Total commercial and financing$4,909 $496 $1,303 $780 $752 $271 $12,116 $20,627 
Commercial real estate:
Risk Rating:
Investment grade$— $129 $383 $689 $277 $197 $— $1,675 
Speculative120 49 166 57 — 29 — $421 
Total commercial real estate$120 $178 $549 $746 $277 $226 $— $2,096 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$2,275 $— $— $— $— $— $4,733 $7,008 
Speculative730 176 348 256 177 63 64 1,814 
Substandard— — — 24 — — — 24 
Doubtful— — — — 16 — — 16 
Total commercial and financing$3,005 $176 $348 $280 $193 $63 $4,797 $8,862 
Total loans$8,034 $850 $2,200 $1,806 $1,222 $560 $16,913 $31,585 
(1) Any reserve associated with accrued interest is not material. As of March 31, 2021, accrued interest receivable of $105 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2020:


(In millions)20202019201820172016PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,894 $388 $4 $167 $200 $— $12,836 $15,489 
Speculative432 942 822 610 43 — 597 3,446 
Special mention— 28 — 39 — — — 67 
Substandard— 5 — — 29 — — 34 
Total commercial and financing$2,326 $1,363 $826 $816 $272 $— $13,433 $19,036 
Commercial real estate:
Risk Rating:
Investment grade$178 $383 $688 $277 $197 $— $— $1,723 
Speculative120 166 58 — — 29 — $373 
Total commercial real estate$298 $549 $746 $277 $197 $29 $— $2,096 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$1,028 $— $— $— $— $— $4,343 $5,371 
Speculative283 401 346 162 26 66 121 1,405 
Doubtful— — — 17 — — — 17 
Total commercial and financing$1,311 $401 $346 $179 $26 $66 $4,464 $6,793 
Total loans$3,935 $2,313 $1,918 $1,272 $495 $95 $17,897 $27,925 
(1) Any reserve associated with accrued interest is not material. As of December 31, 2020, accrued interest receivable of $72 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
Schedule of Activity in the Allowance for Loan Losses
The following table presents the activity in the allowance for credit losses by portfolio and class for the periods indicated:
Three Months Ended March 31, 2021
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$97 $17 $8 $3 $22 $1 $148 
Charge-offs— — — — — — — 
Provision(1)(5)6 (1)(7)(1)(9)
Currency translation(4)— — — — — (4)
Ending balance$92 $12 $14 $2 $15 $— $135 
(1) Includes $10 million allowance for credit losses on Fund Finance loans and $2 million on other loans.
.
Three Months Ended March 31, 2020
Commercial and Financial
(In millions)Leveraged LoansOther LoansCommercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$61 $10 $2 $— $19 $1 $93 
Charge-offs(5)— — — — — (5)
Provision27 — 2 4 3 — 36 
Ending balance$83 $10 $4 $4 $22 $1 $124