XML 524 R32.htm IDEA: XBRL DOCUMENT v3.23.1
Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)March 31, 2023December 31, 2022
Domestic(1):
Commercial and financial:
Fund Finance(2)
$12,184 $12,154 
Leveraged loans2,278 2,431 
Overdrafts2,418 1,707 
CLOs100 100 
Other(3)
1,992 1,871 
Commercial real estate2,901 2,985 
Total domestic$21,873 $21,248 
Foreign(1):
Commercial and financial:
Fund Finance(2)
$4,556 $3,949 
Leveraged loans1,114 1,118 
Overdrafts1,389 1,094 
CLOs4,984 4,741 
Total foreign12,043 10,902 
Total loans(4)
33,916 32,150 
Allowance for credit losses(115)(97)
Loans, net of allowance$33,801 $32,053 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $8.99 billion private equity capital call finance loans, $5.97 billion loans to real money funds and $1.21 billion loans to business development companies as of March 31, 2023, compared to $7.57 billion private equity capital call finance loans, $6.61 billion loans to real money funds and $1.11 billion loans to business development companies as of December 31, 2022.
(3) Includes $1.66 billion securities finance loans, $321 million loans to municipalities and $7 million other loans as of March 31, 2023 and $1.51 billion securities finance loans, $321 million loans to municipalities and $42 million other loans as of December 31, 2022.
(4) As of March 31, 2023, excluding overdrafts, floating rate loans totaled $27.34 billion and fixed rate loans totaled $2.77 billion. We have entered into interest rate swap agreements to hedge the forecasted cash flows associated with EURIBOR indexed floating-rate loans. See Note 10 to the consolidated financial statements in our 2022 Form 10-K for additional details.
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, 2023Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$27,003 $2,226 $29,229 
Speculative3,516 542 4,058 
Special mention355 88 443 
Substandard129 — 129 
Doubtful— 45 45 
Total(1)(2)
$31,003 $2,901 $33,904 
December 31, 2022Commercial and FinancialCommercial Real EstateTotal Loans 
(In millions)
Investment grade$24,667 $2,509 $27,176 
Speculative4,103 388 4,491 
Special mention291 88 379 
Substandard99 — 99 
Total(1)(2)
$29,160 $2,985 $32,145 
(1) Loans Include $3.81 billion and $2.80 billion of overdrafts as of March 31, 2023 and December 31, 2022, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of March 31, 2023, $3.66 billion overdrafts were investment grade and $0.15 billion overdrafts were speculative.
(2) Total does not include $12 million and $5 million of loans classified as held-for-sale as of March 31, 2023 and December 31, 2022, respectively.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of March 31, 2023. 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)20232022202120202019PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$2,341 $161 $185 $66 $300 $7 $13,088 $16,148 
Speculative117 218 710 133 436 327 469 2,410 
Special mention5 4 160 — 129 — — 298 
Substandard— — 30 5 42 38 — 115 
Total commercial and financing$2,463 $383 $1,085 $204 $907 $372 $13,557 $18,971 
Commercial real estate:
Risk Rating:
Investment grade$— $520 $528 100 $330 $748 $— $2,226 
Speculative— — — 50 163 329 — 542 
Special mention— — — — 48 40 — 88 
Doubtful— — — — — 45 — 45 
Total commercial real estate$— $520 $528 $150 $541 $1,162 $— $2,901 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$1,534 $1,993 $2,815 $— $— $— $4,513 $10,855 
Speculative74 143 516 76 189 108 — 1,106 
Special mention— — — 29 5 23 — 57 
Substandard— — — — — 14 — 14 
Total commercial and financing$1,608 $2,136 $3,331 $105 $194 $145 $4,513 $12,032 
Total loans(2)
$4,071 $3,039 $4,944 $459 $1,642 $1,679 $18,070 $33,904 
(1) Any reserve associated with accrued interest is not material. As of March 31, 2023, accrued interest receivable of $268 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 $12 million of loans classified as held-for-sale as of March 31, 2023.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2022:
(In millions)20222021202020192018PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,577 $185 $72 $300 $— $9 $12,843 $14,986 
Speculative523 859 168 461 236 151 545 2,943 
Special mention— 120 — 105 19 — — 244 
Substandard— — 5 42 31 7 — 85 
Total commercial and financing$2,100 $1,164 $245 $908 $286 $167 $13,388 $18,258 
Commercial real estate:
Risk Rating:
Investment grade$519 $612 $100 $330 $511 $436 $— $2,508 
Speculative— — 49 163 111 65 — 388 
Special mention— — — 49 40 — — 89 
Total commercial real estate$519 $612 $149 $542 $662 $501 $— $2,985 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$2,986 $2,799 $— $— $— $— $3,897 $9,682 
Speculative234 529 100 181 107 — 9 1,160 
Special mention— — 18 5 23 — — 46 
Substandard— — — — 14 — — 14 
Total commercial and financing$3,220 $3,328 $118 $186 $144 $— $3,906 $10,902 
Total loans(2)
$5,839 $5,104 $512 $1,636 $1,092 $668 $17,294 $32,145 
(1) Any reserve associated with accrued interest is not material. As of December 31, 2022, accrued interest receivable of $200 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 $5 million of loans classified as held-for-sale as of December 31, 2022.
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, 2023
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$73 $5 $19 $2 $23 $(1)$121 
Charge-offs(3)— — — — — (3)
Provision12 (1)10 — (7)30 44 
Ending balance$82 $4 $29 $2 $16 $29 $162 
(1) Includes $3 million allowance for credit losses on Fund Finance loans and $1 million on other loans.

Three Months Ended March 31, 2022
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$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.