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Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)September 30, 2022December 31, 2021
Domestic(1):
Commercial and financial:
Fund Finance(2)
$12,094 $12,396 
Leveraged loans2,346 3,106 
Overdrafts2,787 1,796 
Other(3)
2,133 2,262 
Commercial real estate2,921 2,554 
Total domestic22,281 22,114 
Foreign(1):
Commercial and financial:
Fund Finance(2)
8,454 7,778 
Leveraged loans1,006 1,328 
Overdrafts4,372 1,312 
Total foreign13,832 10,418 
Total loans(2)
36,113 32,532 
Allowance for credit losses(97)(87)
Loans, net of allowance$36,016 $32,445 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $7.69 billion private equity capital call finance loans, $6.57 billion loans to real money funds, $4.25 billion collateralized loan obligations in loan form and $1.10 billion loans to business development companies as of September 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 $1.73 billion securities finance loans, $389 million loans to municipalities and $19 million other loans as of September 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:
September 30, 2022Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$27,617 $2,447 $30,064 
Speculative5,128 385 5,513 
Special mention317 89 406 
Substandard130 — 130 
Total(1)
$33,192 $2,921 $36,113 
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 $7.16 billion and $3.11 billion of overdrafts as of September 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 September 30, 2022, $5.78 billion overdrafts were investment grade and $1.37 billion overdrafts were speculative.
(2) Total does not include $8 million of loans classified as held-for-sale as of December 31, 2021.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of September 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$2,818 $184 $88 $328 $— $10 $13,165 $16,593 
Speculative251 797 176 433 289 147 287 2,380 
Special mention— 93 — 155 29 19 — 296 
Substandard7 — 5 41 31 7 — 91 
Total commercial and financing$3,076 $1,074 $269 $957 $349 $183 $13,452 $19,360 
Commercial real estate:
Risk Rating:
Investment grade$365 $612 $100 331 $566 $473 $— $2,447 
Speculative— — 49 197 111 28 — 385 
Special mention— — — 49 40 — — 89 
Total commercial real estate$365 $612 $149 $577 $717 $501 $— $2,921 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$4,661 $2,729 $— $— $— $— $3,634 $11,024 
Speculative1,291 486 95 166 96 61 553 2,748 
Special mention— — 16 5 — — — 21 
Substandard1 — — — 38 — — 39 
Total commercial and financing$5,953 $3,215 $111 $171 $134 $61 $4,187 $13,832 
Total loans$9,394 $4,901 $529 $1,705 $1,200 $745 $17,639 $36,113 
(1) Any reserve associated with accrued interest is not material. As of September 30, 2022, accrued interest receivable of $137 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, 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 September 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$69 $10 $16 $2 $17 $— $114 
Charge-offs— — — — — — — 
Provision6 (5)2 (1)(2)— — 
Ending balance$75 $5 $18 $1 $15 $— $114 
(1) Includes $4 million allowance for credit losses on Fund Finance loans and $1 million on other loans.

Nine Months Ended September 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)
Provision18 (7)4 (1)(4)— 10 
Ending balance$75 $5 $18 $1 $15 $— $114 
(1) Includes $4 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
Three Months Ended September 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$74 $12 $14 $2 $19 $— $121 
Charge-offs(1)— — — — — (1)
Provision(4)— 1 — 1 — (2)
Foreign currency translation(1)— — — — — (1)
Ending balance$68 $12 $15 $2 $20 $— $117 
(1) Includes $11 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
Nine Months Ended September 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)
(2)— — — — — (2)
Provision(24)(5)7 (1)(2)(1)(26)
Foreign currency translation(3)— — — — — (3)
Ending balance$68 $12 $15 $2 $20 $— $117 
(1) Includes $11 million allowance for credit losses on Fund Finance loans and $1 million on other loans.