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Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2022
Receivables [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)June 30, 2022December 31, 2021
Domestic(1):
Commercial and financial:
Fund Finance(2)
$12,363 $12,396 
Leveraged loans2,468 3,106 
Overdrafts2,220 1,796 
Other(3)
1,968 2,262 
Commercial real estate2,682 2,554 
Total domestic21,701 22,114 
Foreign(1):
Commercial and financial:
Fund Finance(2)
8,131 7,778 
Leveraged loans1,123 1,328 
Overdrafts2,610 1,312 
Total foreign11,864 10,418 
Total loans(2)
33,565 32,532 
Allowance for credit losses(95)(87)
Loans, net of allowance$33,470 $32,445 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $8.17 billion private equity capital call finance loans, $6.48 billion loans to real money funds, $4.11 billion collateralized loan obligations in loan form and $1.26 billion loans to business development companies as of June 30, 2022, compared to $9.15 billion private equity capital call finance loans, $6.40 billion loans to real money funds, $2.91 billion collateralized loan obligations in loan form and $1.39 billion loans to business development companies as of December 31, 2021.
(3) Includes $1.53 billion securities finance loans, $420 million loans to municipalities and $21 million other loans as of June 30, 2022 and $1.78 billion 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:
June 30, 2022Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$26,549 $2,373 $28,922 
Speculative3,851 220 4,071 
Special mention162 89 251 
Substandard166 — 166 
Total(1)(2)
$30,728 $2,682 $33,410 
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 $4.83 billion and $3.11 billion of overdrafts as of June 30, 2022 and December 31, 2021, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of June 30, 2022, $4.47 billion overdrafts were investment grade, $356 million overdrafts were speculative and $2 million were substandard.
(2) Total does not include $155 million and $8 million of loans classified as held-for-sale as of June 30, 2022 and December 31, 2021, respectively.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of June 30, 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$2,297 $185 $95 $341 $— $12 $13,197 $16,127 
Speculative129 849 192 486 340 150 363 2,509 
Special mention— 39 — 96 — 27 — 162 
Substandard2 — 5 70 45 6 — 128 
Total commercial and financing$2,428 $1,073 $292 $993 $385 $195 $13,560 $18,926 
Commercial real estate:
Risk Rating:
Investment grade$134 $612 $100 397 $657 $473 $— $2,373 
Speculative— — 49 124 19 28 — 220 
Special mention— — — 49 40 — — 89 
Total commercial real estate$134 $612 $149 $570 $716 $501 $— $2,682 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$3,505 $2,783 $— $— $— $— $4,134 $10,422 
Speculative350 513 122 180 99 65 13 1,342 
Special mention— — — — — — — — 
Substandard— — — — 38 — — 38 
Total commercial and financing$3,855 $3,296 $122 $180 $137 $65 $4,147 $11,802 
Total loans(2)
$6,417 $4,981 $563 $1,743 $1,238 $761 $17,707 $33,410 
(1) Any reserve associated with accrued interest is not material. As of June 30, 2022, accrued interest receivable of $91 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 $155 million of loans classified as held-for-sale as of June 30, 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 June 30, 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 $11 $14 $2 $19 $— $107 
Charge-offs(3)— — — — — (3)
Provision11 (1)2 — (2)— 10 
Ending balance$69 $10 $16 $2 $17 $— $114 
(1) Includes $9 million allowance for credit losses on Fund Finance loans and $1 million on other loans.

Six Months Ended June 30, 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(4)— — — — — (4)
Provision12 (2)2 — (2)— 10 
Ending balance$69 $10 $16 $2 $17 $— $114 
(1) Includes $9 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
Three Months Ended June 30, 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$92 $12 $14 $2 $15 $— $135 
Charge-offs(1)— — — — — (1)
Provision(19)— — — 4 — (15)
Foreign currency translation2 — — — — — 2 
Ending balance$74 $12 $14 $2 $19 $— $121 
(1) Includes $10 million allowance for credit losses on Fund Finance loans and $2 million on other loans.
Six Months Ended June 30, 2021
Commercial and Financial
(In millions)Leveraged LoansOther LoansCommercial 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(1)
(1)— — — — — (1)
Provision(20)(5)6 (1)(3)(1)(24)
Foreign currency translation(2)— — — — — (2)
Ending balance$74 $12 $14 $2 $19 $— $121 
(1) Includes $10 million allowance for credit losses on Fund Finance loans and $2 million on other loans.