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Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)March 31, 2024December 31, 2023
Domestic(1):
Commercial and financial:
Fund Finance(2)
$13,775 $13,697 
Leveraged loans2,503 2,412 
Overdrafts1,584 1,225 
Collateralized loan obligations in loan form150 150 
Other(3)
2,453 2,512 
Commercial real estate3,062 3,069 
Total domestic$23,527 $23,065 
Foreign(1):
Commercial and financial:
Fund Finance(2)
$5,207 $4,956 
Leveraged loans1,204 1,194 
Overdrafts2,136 1,047 
Collateralized loan obligations in loan form6,561 6,369 
Total foreign15,108 13,566 
Total loans(4)
38,635 36,631 
Allowance for credit losses(135)(135)
Loans, net of allowance$38,500 $36,496 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $10.15 billion private equity capital call finance loans, $6.49 billion loans to real money funds and $1.01 billion loans to business development companies as of March 31, 2024, compared to $9.69 billion private equity capital call finance loans, $6.63 billion loans to real money funds and $1.05 billion loans to business development companies as of December 31, 2023.
(3) Includes $2.17 billion securities finance loans, $276 million loans to municipalities and $4 million other loans as of March 31, 2024 and $2.23 billion securities finance loans, $276 million loans to municipalities and $5 million other loans as of December 31, 2023.
(4) As of March 31, 2024, excluding overdrafts, floating rate loans totaled $31.98 billion and fixed rate loans totaled $2.93 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 2023 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, 2024Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$31,633 $2,293 $33,926 
Speculative3,646 382 4,028 
Special mention235 163 398 
Substandard29 132 161 
Doubtful13 92 105 
Total(1)(2)
$35,556 $3,062 $38,618 
December 31, 2023Commercial and FinancialCommercial Real EstateTotal Loans 
(In millions)
Investment grade$29,737 $2,287 $32,024 
Speculative3,546 449 3,995 
Special mention242 62 304 
Substandard14 224 238 
Doubtful23 47 70 
Total(1)
$33,562 $3,069 $36,631 
(1) Loans include $3.72 billion and $2.27 billion of overdrafts as of March 31, 2024 and December 31, 2023, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of March 31, 2024, $3.57 billion overdrafts were investment grade and $0.15 billion overdrafts were speculative.
(2) Total does not include $17 million of loans classified as held-for-sale as of March 31, 2024.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of March 31, 2024. 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)20242023202220212020PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,566 $242 $120 $198 $8 $276 $15,477 $17,887 
Speculative523 473 204 637 104 371 54 2,366 
Special mention— 26 — 96 29 16 — 167 
Substandard— — — 15 — — — 15 
Doubtful8 5 — — — — — 13 
Total commercial and financing$2,097 $746 $324 $946 $141 $663 $15,531 $20,448 
Commercial real estate:
Risk Rating:
Investment grade$39 $216 $500 $465 $100 $973 $— $2,293 
Speculative— — 20 66 49 247 — 382 
Special mention— — — — — 163 — 163 
Substandard— — — — — 132 — 132 
Doubtful— — — — — 92 — 92 
Total commercial real estate$39 $216 $520 $531 $149 $1,607 $— $3,062 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$2,328 $1,853 $1,853 $2,633 $— $— $5,079 $13,746 
Speculative276 270 127 378 113 88 28 1,280 
Special mention— — — 68 — — — 68 
Substandard— — — — — 14 — 14 
Total commercial and financing$2,604 $2,123 $1,980 $3,079 $113 $102 $5,107 $15,108 
Total loans(2)
$4,740 $3,085 $2,824 $4,556 $403 $2,372 $20,638 $38,618 
(1) Any reserve associated with accrued interest is not material. As of March 31, 2024, accrued interest receivable of $290 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 $17 million of loans classified as held-for-sale as of March 31, 2024.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2023:
(In millions)20232022202120202019PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,399 $120 $199 $8 $272 $5 $15,476 $17,479 
Speculative615 285 747 149 291 141 81 2,309 
Special mention— 4 164 — 16 — — 184 
Substandard5 — 18 — — — — 23 
Total commercial and financing$2,019 $409 $1,128 $157 $579 $146 $15,557 $19,995 
Commercial real estate:
Risk Rating:
Investment grade$216 $500 $498 $100 $375 $598 $— $2,287 
Speculative— 20 31 50 49 299 — 449 
Special mention— — — — 22 40 — 62 
Substandard— — — — 95 129 — 224 
Doubtful— — — — — 47 — 47 
Total commercial real estate$216 $520 $529 $150 $541 $1,113 $— $3,069 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$2,943 $1,956 $2,518 $— $— $— $4,841 $12,258 
Speculative394 135 481 88 109 18 12 1,237 
Special mention— — 29 29 — — — 58 
Substandard— — — — — 14 — 14 
Total commercial and financing$3,337 $2,091 $3,028 $117 $109 $32 $4,853 $13,567 
Total loans$5,572 $3,020 $4,685 $424 $1,229 $1,291 $20,410 $36,631 
(1) Any reserve associated with accrued interest is not material. As of December 31, 2023, accrued interest receivable of $318 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 tables present the activity in the allowance for credit losses by portfolio and class for the periods indicated:
Three Months Ended March 31, 2024
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateAvailable-for-sale SecuritiesHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$72 $4 $60 $— $1 $14 $(1)$150 
Charge-offs(6)— (25)— — — — (31)
Provision5 1 25 — — (4)— 27 
Ending balance$71 $5 $60 $— $1 $10 $(1)$146 
(1) Includes $4 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
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.