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Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2024
Credit Loss [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)September 30, 2024December 31, 2023
Domestic(1):
Commercial and financial:
Fund finance(2)
$14,676 $13,697 
Leveraged loans2,708 2,412 
Overdrafts1,738 1,225 
Collateralized loan obligations in loan form50 150 
Other(3)
2,846 2,512 
Commercial real estate2,856 3,069 
Total domestic$24,874 $23,065 
Foreign(1):
Commercial and financial:
Fund finance(2)
$6,369 $4,956 
Leveraged loans1,142 1,194 
Overdrafts1,758 1,047 
Collateralized loan obligations in loan form7,818 6,369 
Total foreign17,087 13,566 
Total loans(4)
41,961 36,631 
Allowance for credit losses(162)(135)
Loans, net of allowance$41,799 $36,496 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $10.83 billion private equity capital call finance loans, $7.44 billion loans to real money funds and $1.48 billion loans to business development companies as of September 30, 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 $2.61 billion securities finance loans and $236 million loans to municipalities as of September 30, 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 September 30, 2024, excluding overdrafts, floating rate loans totaled $35.67 billion and fixed rate loans totaled $2.79 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:
September 30, 2024Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$34,566 $2,011 $36,577 
Speculative4,246 459 4,705 
Special mention214 62 276 
Substandard79 132 211 
Doubtful— 192 192 
Total(1)
$39,105 $2,856 $41,961 
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 $3.50 billion and $2.27 billion of overdrafts as of September 30, 2024 and December 31, 2023, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of September 30, 2024, $3.11 billion overdrafts were investment grade and $0.39 billion overdrafts were speculative.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of September 30, 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$1,933 $223 $64 $47 $6 $250 $16,543 $19,066 
Speculative1,603 168 147 476 53 232 85 2,764 
Special mention49 41 — 57 — — — 147 
Substandard14 — 11 15 — — — 40 
Total commercial and financing$3,599 $432 $222 $595 $59 $482 $16,628 $22,017 
Commercial real estate:
Risk Rating:
Investment grade$41 $92 $500 $278 $128 $972 $— $2,011 
Speculative— 123 20 70 100 146 — 459 
Special mention— — — — — 62 — 62 
Substandard— — — — — 132 — 132 
Doubtful— — — — — 192 — 192 
Total commercial real estate$41 $215 $520 $348 $228 $1,504 $— $2,856 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$3,992 $2,004 $1,287 $2,415 $— $— $5,802 $15,500 
Speculative615 182 76 296 49 47 217 1,482 
Special mention— 38 — 29 — — — 67 
Substandard— — — 39 — — — 39 
Total commercial and financing$4,607 $2,224 $1,363 $2,779 $49 $47 $6,019 $17,088 
Total loans$8,247 $2,871 $2,105 $3,722 $336 $2,033 $22,647 $41,961 
(1) Any reserve associated with accrued interest is not material. As of September 30, 2024, accrued interest receivable of $309 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, 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 September 30, 2024
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsTotal
Allowance for credit losses:
Beginning balance$56 $4 $76 $1 $8 $145 
Provision12 — 14 — — 26 
Ending balance$68 $4 $90 $1 $8 $171 
(1) Includes $3 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
Nine Months Ended September 30, 2024
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsTotal
Allowance for credit losses:
Beginning balance$72 $3 $60 $1 $14 $150 
Provision13 1 55 — (6)63 
Charge-offs(17)— (25)— — (42)
Ending balance$68 $4 $90 $1 $8 $171 
(1) Includes $3 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
Three Months Ended September 30, 2023
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$80 $3 $37 $— $— $15 $1 $136 
Provision(6)— 7 — 1 (1)(1)— 
Charge-offs(2)— — — — — — (2)
Ending balance$72 $3 $44 $— $1 $14 $— $134 
(1) Includes $2 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
Nine Months Ended September 30, 2023
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$73 $5 $19 $2 $— $23 $(1)$121 
Provision12 (2)25 (2)1 (9)1 26 
Charge-offs(13)— — — — — — (13)
Ending balance$72 $3 $44 $— $1 $14 $— $134 
(1) Includes $2 million allowance for credit losses on Fund Finance loans and $1 million on other loans.