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Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2022
Receivables [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)March 31, 2022December 31, 2021
Domestic(1):
Commercial and financial:
Fund Finance(2)
$11,649 $12,396 
Leveraged loans3,147 3,106 
Overdrafts3,181 1,796 
Other(3)
2,014 2,262 
Commercial real estate2,558 2,554 
Total domestic22,549 22,114 
Foreign(1):
Commercial and financial:
Fund Finance(2)
7,746 7,778 
Leveraged loans1,283 1,328 
Overdrafts3,563 1,312 
Total foreign12,592 10,418 
Total loans(2)
35,141 32,532 
Allowance for credit losses(86)(87)
Loans, net of allowance$35,055 $32,445 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $8,254 million private equity capital call finance loans, $6,555 million loans to real money funds, $2,483 million collateralized loan obligations in loan form and $1,243 million loans to business development companies as of March 31, 2022, compared to $9,147 million private equity capital call finance loans, $6,397 million loans to real money funds, $2,913 million collateralized loan obligations in loan form and $1,387 million loans to business development companies as of December 31, 2021.
(3) Includes $1,529 million securities finance loans, $462 million loans to municipalities and $22 million other loans as of March 31, 2022 and $1,784 million securities finance loans, $455 million loans to municipalities and $23 million other loans as of December 31, 2021.
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, 2022Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$27,112 $2,227 $29,339 
Speculative5,018 269 5,287 
Special mention229 62 291 
Substandard167 — 167 
Total(1)(2)
$32,526 $2,558 $35,084 
December 31, 2021Commercial and FinancialCommercial Real EstateTotal Loans 
(In millions)
Investment grade$24,974 $2,222 $27,196 
Speculative4,714 270 4,984 
Special mention118 62 180 
Substandard164 — 164 
Total(1)(2)
$29,970 $2,554 $32,524 
(1) Loans Include $6,744 million and $3,108 million of overdrafts as of March 31, 2022 and December 31, 2021 respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of March 31, 2022, 6,397 million overdrafts were investment grade, $341 million overdrafts were speculative and $6 million were substandard.
(2) Total does not include $57 million and $8 million of loans classified as held-for-sale as of March 31, 2022 and December 31, 2021,respectively. $57 million was settled subsequently in April 2022.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of March 31, 2022. 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)20222021202020192018PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$3,135 $276 $59 $347 $2 $35 $12,326 $16,180 
Speculative74 1,064 341 660 395 325 609 3,468 
Special mention— 20 — 96 29 19 — 164 
Substandard— — 4 70 45 9 — 128 
Total commercial and financing$3,209 $1,360 $404 $1,173 $471 $388 $12,935 $19,940 
Commercial real estate:
Risk Rating:
Investment grade$34 $580 $100 384 $656 $473 $— $2,227 
Speculative— 24 49 148 20 28 — 269 
Special mention— — — 22 40 — — 62 
Total commercial real estate$34 $604 $149 $554 $716 $501 $— $2,558 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$3,436 $2,839 $— $— $— $— $4,657 $10,932 
Speculative362 494 130 260 158 70 76 1,550 
Special mention6 28 — — — 31 — 65 
Substandard— — — — 39 — — 39 
Total commercial and financing$3,804 $3,361 $130 $260 $197 $101 $4,733 $12,586 
Total loans(2)
$7,047 $5,325 $683 $1,987 $1,384 $990 $17,668 $35,084 
(1) Any reserve associated with accrued interest is not material. As of March 31, 2022, accrued interest receivable of $70 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2) Total does not include $57 million of loans classified as held-for-sale as of March 31, 2022 which was settled subsequently in April 2022.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2021:
(In millions)20212020201920182017PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,988 $59 $347 $2 $37 $— $13,591 $16,024 
Speculative1,096 351 706 425 350 7 343 3,278 
Special mention— — 70 29 19 — — 118 
Substandard— 5 71 56 8 — — 140 
Total commercial and financing$3,084 $415 $1,194 $512 $414 $7 $13,934 $19,560 
Commercial real estate:
Risk Rating:
Investment grade$580 $129 $383 $657 $276 $197 $— $2,222 
Speculative24 49 149 20 — 28 — 270 
Special mention— — 22 40 — — — 62 
Total commercial real estate$604 $178 $554 $717 $276 $225 $— $2,554 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$4,087 $— $— $— $— $— $4,863 $8,950 
Speculative561 201 264 204 120 31 55 1,436 
Substandard— — — 24 — — — 24 
Total commercial and financing$4,648 $201 $264 $228 $120 $31 $4,918 $10,410 
Total loans(2)
$8,336 $794 $2,012 $1,457 $810 $263 $18,852 $32,524 
(1) Any reserve associated with accrued interest is not material. As of December 31, 2021, accrued interest receivable of $86 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2) Total does not include $8 million of loans classified as held-for-sale as of December 31, 2021.
Schedule of Activity in the Allowance for Loan Losses
The following tables present the activity in the allowance for credit losses by portfolio and class for the periods indicated:
Three Months Ended March 31, 2022
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateAvailable-for-sale SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$61 $12 $14 $2 $19 $— $108 
Charge-offs(1)— — — — — (1)
Provision1 (1)— — — — — 
Ending balance$61 $11 $14 $2 $19 $— $107 
(1) Includes $10 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
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)
Foreign 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.