December 31, 2013 | |||||||||||||||||||||||||||||||
(Dollars in millions) | 30-59 Days Past Due (1) | 60-89 Days Past Due (1) | 90 Days or More Past Due (2) | Total Past Due 30 Days or More | Total Current or Less Than 30 Days Past Due (3) | Purchased Credit-impaired (4) | Loans Accounted for Under the Fair Value Option | Total Outstandings | |||||||||||||||||||||||
Home loans | |||||||||||||||||||||||||||||||
Core portfolio | |||||||||||||||||||||||||||||||
Residential mortgage | $ | 2,151 | $ | 754 | $ | 7,188 | $ | 10,093 | $ | 167,243 | $ | 177,336 | |||||||||||||||||||
Home equity | 243 | 113 | 693 | 1,049 | 53,450 | 54,499 | |||||||||||||||||||||||||
Legacy Assets & Servicing portfolio | |||||||||||||||||||||||||||||||
Residential mortgage (5) | 2,758 | 1,412 | 16,746 | 20,916 | 31,142 | $ | 18,672 | 70,730 | |||||||||||||||||||||||
Home equity | 444 | 221 | 1,292 | 1,957 | 30,623 | 6,593 | 39,173 | ||||||||||||||||||||||||
Credit card and other consumer | |||||||||||||||||||||||||||||||
U.S. credit card | 598 | 422 | 1,053 | 2,073 | 90,265 | 92,338 | |||||||||||||||||||||||||
Non-U.S. credit card | 63 | 54 | 131 | 248 | 11,293 | 11,541 | |||||||||||||||||||||||||
Direct/Indirect consumer (6) | 431 | 175 | 410 | 1,016 | 81,176 | 82,192 | |||||||||||||||||||||||||
Other consumer (7) | 24 | 8 | 20 | 52 | 1,925 | 1,977 | |||||||||||||||||||||||||
Total consumer | 6,712 | 3,159 | 27,533 | 37,404 | 467,117 | 25,265 | 529,786 | ||||||||||||||||||||||||
Consumer loans accounted for under the fair value option (8) | $ | 2,164 | 2,164 | ||||||||||||||||||||||||||||
Total consumer loans and leases | 6,712 | 3,159 | 27,533 | 37,404 | 467,117 | 25,265 | 2,164 | 531,950 | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||
U.S. commercial | 363 | 151 | 309 | 823 | 211,734 | 212,557 | |||||||||||||||||||||||||
Commercial real estate (9) | 30 | 29 | 243 | 302 | 47,591 | 47,893 | |||||||||||||||||||||||||
Commercial lease financing | 110 | 37 | 48 | 195 | 25,004 | 25,199 | |||||||||||||||||||||||||
Non-U.S. commercial | 103 | 8 | 17 | 128 | 89,334 | 89,462 | |||||||||||||||||||||||||
U.S. small business commercial | 87 | 55 | 113 | 255 | 13,039 | 13,294 | |||||||||||||||||||||||||
Total commercial | 693 | 280 | 730 | 1,703 | 386,702 | 388,405 | |||||||||||||||||||||||||
Commercial loans accounted for under the fair value option (8) | 7,878 | 7,878 | |||||||||||||||||||||||||||||
Total commercial loans and leases | 693 | 280 | 730 | 1,703 | 386,702 | 7,878 | 396,283 | ||||||||||||||||||||||||
Total loans and leases | $ | 7,405 | $ | 3,439 | $ | 28,263 | $ | 39,107 | $ | 853,819 | $ | 25,265 | $ | 10,042 | $ | 928,233 | |||||||||||||||
Percentage of outstandings | 0.80 | % | 0.37 | % | 3.04 | % | 4.21 | % | 91.99 | % | 2.72 | % | 1.08 | % |
(1) | Home loans 30-59 days past due includes fully-insured loans of $2.5 billion and nonperforming loans of $623 million. Home loans 60-89 days past due includes fully-insured loans of $1.2 billion and nonperforming loans of $410 million. |
(2) | Home loans includes fully-insured loans of $17.0 billion. |
(3) | Home loans includes $5.9 billion and direct/indirect consumer includes $33 million of nonperforming loans. |
(4) | PCI loan amounts are shown gross of the valuation allowance. |
(5) | Total outstandings includes pay option loans of $4.4 billion. The Corporation no longer originates this product. |
(6) | Total outstandings includes dealer financial services loans of $38.5 billion, consumer lending loans of $2.7 billion, U.S. securities-based lending loans of $31.2 billion, non-U.S. consumer loans of $4.7 billion, student loans of $4.1 billion and other consumer loans of $1.0 billion. |
(7) | Total outstandings includes consumer finance loans of $1.2 billion, consumer leases of $606 million, consumer overdrafts of $176 million and other non-U.S. consumer loans of $5 million. |
(8) | Consumer loans accounted for under the fair value option were residential mortgage loans of $2.0 billion and home equity loans of $147 million. Commercial loans accounted for under the fair value option were U.S. commercial loans of $1.5 billion and non-U.S. commercial loans of $6.4 billion. For additional information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option. |
(9) | Total outstandings includes U.S. commercial real estate loans of $46.3 billion and non-U.S. commercial real estate loans of $1.6 billion. |
December 31, 2012 | |||||||||||||||||||||||||||||||
(Dollars in millions) | 30-59 Days Past Due (1) | 60-89 Days Past Due (1) | 90 Days or More Past Due (2) | Total Past Due 30 Days or More | Total Current or Less Than 30 Days Past Due (3) | Purchased Credit-impaired (4) | Loans Accounted for Under the Fair Value Option | Total Outstandings | |||||||||||||||||||||||
Home loans | |||||||||||||||||||||||||||||||
Core portfolio | |||||||||||||||||||||||||||||||
Residential mortgage (5) | $ | 2,274 | $ | 806 | $ | 6,227 | $ | 9,307 | $ | 160,809 | $ | 170,116 | |||||||||||||||||||
Home equity | 273 | 146 | 591 | 1,010 | 59,841 | 60,851 | |||||||||||||||||||||||||
Legacy Assets & Servicing portfolio | |||||||||||||||||||||||||||||||
Residential mortgage (6) | 2,938 | 1,714 | 26,728 | 31,380 | 33,982 | $ | 17,451 | 82,813 | |||||||||||||||||||||||
Home equity | 608 | 357 | 1,444 | 2,409 | 36,213 | 8,667 | 47,289 | ||||||||||||||||||||||||
Credit card and other consumer | |||||||||||||||||||||||||||||||
U.S. credit card | 729 | 582 | 1,437 | 2,748 | 92,087 | 94,835 | |||||||||||||||||||||||||
Non-U.S. credit card | 106 | 85 | 212 | 403 | 11,294 | 11,697 | |||||||||||||||||||||||||
Direct/Indirect consumer (7) | 569 | 239 | 573 | 1,381 | 81,824 | 83,205 | |||||||||||||||||||||||||
Other consumer (8) | 48 | 19 | 4 | 71 | 1,557 | 1,628 | |||||||||||||||||||||||||
Total consumer | 7,545 | 3,948 | 37,216 | 48,709 | 477,607 | 26,118 | 552,434 | ||||||||||||||||||||||||
Consumer loans accounted for under the fair value option (9) | $ | 1,005 | 1,005 | ||||||||||||||||||||||||||||
Total consumer loans and leases | 7,545 | 3,948 | 37,216 | 48,709 | 477,607 | 26,118 | 1,005 | 553,439 | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||||
U.S. commercial | 323 | 133 | 639 | 1,095 | 196,031 | 197,126 | |||||||||||||||||||||||||
Commercial real estate (10) | 79 | 144 | 983 | 1,206 | 37,431 | 38,637 | |||||||||||||||||||||||||
Commercial lease financing | 84 | 79 | 30 | 193 | 23,650 | 23,843 | |||||||||||||||||||||||||
Non-U.S. commercial | 2 | — | — | 2 | 74,182 | 74,184 | |||||||||||||||||||||||||
U.S. small business commercial | 101 | 75 | 168 | 344 | 12,249 | 12,593 | |||||||||||||||||||||||||
Total commercial | 589 | 431 | 1,820 | 2,840 | 343,543 | 346,383 | |||||||||||||||||||||||||
Commercial loans accounted for under the fair value option (9) | 7,997 | 7,997 | |||||||||||||||||||||||||||||
Total commercial loans and leases | 589 | 431 | 1,820 | 2,840 | 343,543 | 7,997 | 354,380 | ||||||||||||||||||||||||
Total loans and leases | $ | 8,134 | $ | 4,379 | $ | 39,036 | $ | 51,549 | $ | 821,150 | $ | 26,118 | $ | 9,002 | $ | 907,819 | |||||||||||||||
Percentage of outstandings | 0.90 | % | 0.48 | % | 4.30 | % | 5.68 | % | 90.45 | % | 2.88 | % | 0.99 | % |
(1) | Home loans 30-59 days past due includes fully-insured loans of $2.3 billion and nonperforming loans of $702 million. Home loans 60-89 days past due includes fully-insured loans of $1.3 billion and nonperforming loans of $558 million. |
(2) | Home loans includes fully-insured loans of $22.2 billion. |
(3) | Home loans includes $5.5 billion and direct/indirect consumer includes $63 million of nonperforming loans. |
(4) | PCI loan amounts are shown gross of the valuation allowance. |
(5) | Total outstandings includes non-U.S. residential mortgage loans of $93 million. |
(6) | Total outstandings includes pay option loans of $6.7 billion. The Corporation no longer originates this product. |
(7) | Total outstandings includes dealer financial services loans of $35.9 billion, consumer lending loans of $4.7 billion, U.S. securities-based lending loans of $28.3 billion, non-U.S. consumer loans of $8.3 billion, student loans of $4.8 billion and other consumer loans of $1.2 billion. |
(8) | Total outstandings includes consumer finance loans of $1.4 billion, consumer leases of $34 million, consumer overdrafts of $177 million and other non-U.S. consumer loans of $5 million. |
(9) | Consumer loans accounted for under the fair value option were residential mortgage loans of $1.0 billion. Commercial loans accounted for under the fair value option were U.S. commercial loans of $2.3 billion and non-U.S. commercial loans of $5.7 billion. For additional information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option. |
(10) | Total outstandings includes U.S. commercial real estate loans of $37.2 billion and non-U.S. commercial real estate loans of $1.5 billion. |
Credit Quality | |||||||||||||||
December 31 | |||||||||||||||
Nonperforming Loans and Leases (1) | Accruing Past Due 90 Days or More | ||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | |||||||||||
Home loans | |||||||||||||||
Core portfolio | |||||||||||||||
Residential mortgage (2) | $ | 3,316 | $ | 3,193 | $ | 5,137 | $ | 3,984 | |||||||
Home equity | 1,431 | 1,265 | — | — | |||||||||||
Legacy Assets & Servicing portfolio | |||||||||||||||
Residential mortgage (2) | 8,396 | 11,862 | 11,824 | 18,173 | |||||||||||
Home equity | 2,644 | 3,017 | — | — | |||||||||||
Credit card and other consumer | |||||||||||||||
U.S. credit card | n/a | n/a | 1,053 | 1,437 | |||||||||||
Non-U.S. credit card | n/a | n/a | 131 | 212 | |||||||||||
Direct/Indirect consumer | 35 | 92 | 408 | 545 | |||||||||||
Other consumer | 18 | 2 | 2 | 2 | |||||||||||
Total consumer | 15,840 | 19,431 | 18,555 | 24,353 | |||||||||||
Commercial | |||||||||||||||
U.S. commercial | 819 | 1,484 | 47 | 65 | |||||||||||
Commercial real estate | 322 | 1,513 | 21 | 29 | |||||||||||
Commercial lease financing | 16 | 44 | 41 | 15 | |||||||||||
Non-U.S. commercial | 64 | 68 | 17 | — | |||||||||||
U.S. small business commercial | 88 | 115 | 78 | 120 | |||||||||||
Total commercial | 1,309 | 3,224 | 204 | 229 | |||||||||||
Total loans and leases | $ | 17,149 | $ | 22,655 | $ | 18,759 | $ | 24,582 |
(1) | Nonperforming loan balances do not include nonaccruing TDRs removed from the PCI loan portfolio prior to January 1, 2010 of $260 million and $521 million at December 31, 2013 and 2012. |
(2) | Residential mortgage loans in the Core and Legacy Assets & Servicing portfolios accruing past due 90 days or more are fully-insured loans. At December 31, 2013 and 2012, residential mortgage includes $13.0 billion and $17.8 billion of loans on which interest has been curtailed by the FHA, and therefore are no longer accruing interest, although principal is still insured, and $4.0 billion and $4.4 billion of loans on which interest is still accruing. |
Home Loans – Credit Quality Indicators (1) | |||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||
(Dollars in millions) | Core Portfolio Residential Mortgage (2) | Legacy Assets & Servicing Residential Mortgage (2) | Residential Mortgage PCI (3) | Core Portfolio Home Equity (2) | Legacy Assets & Servicing Home Equity (2) | Home Equity PCI | |||||||||||||||||
Refreshed LTV (4) | |||||||||||||||||||||||
Less than or equal to 90 percent | $ | 95,833 | $ | 22,391 | $ | 11,400 | $ | 45,898 | $ | 16,714 | $ | 2,036 | |||||||||||
Greater than 90 percent but less than or equal to 100 percent | 5,541 | 4,134 | 2,653 | 3,659 | 4,233 | 698 | |||||||||||||||||
Greater than 100 percent | 6,250 | 7,998 | 4,619 | 4,942 | 11,633 | 3,859 | |||||||||||||||||
Fully-insured loans (5) | 69,712 | 17,535 | — | — | — | — | |||||||||||||||||
Total home loans | $ | 177,336 | $ | 52,058 | $ | 18,672 | $ | 54,499 | $ | 32,580 | $ | 6,593 | |||||||||||
Refreshed FICO score | |||||||||||||||||||||||
Less than 620 | $ | 5,924 | $ | 10,391 | $ | 9,792 | $ | 2,343 | $ | 4,229 | $ | 1,072 | |||||||||||
Greater than or equal to 620 and less than 680 | 7,863 | 5,452 | 3,135 | 4,057 | 5,050 | 1,165 | |||||||||||||||||
Greater than or equal to 680 and less than 740 | 24,034 | 7,791 | 3,034 | 11,276 | 9,032 | 1,935 | |||||||||||||||||
Greater than or equal to 740 | 69,803 | 10,889 | 2,711 | 36,823 | 14,269 | 2,421 | |||||||||||||||||
Fully-insured loans (5) | 69,712 | 17,535 | — | — | — | — | |||||||||||||||||
Total home loans | $ | 177,336 | $ | 52,058 | $ | 18,672 | $ | 54,499 | $ | 32,580 | $ | 6,593 |
(1) | Excludes $2.2 billion of loans accounted for under the fair value option. |
(2) | Excludes PCI loans. |
(3) | Includes $4.0 billion of pay option loans. The Corporation no longer originates this product. |
(4) | Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance. |
(5) | Credit quality indicators are not reported for fully-insured loans as principal repayment is insured. |
Credit Card and Other Consumer – Credit Quality Indicators | |||||||||||||||
December 31, 2013 | |||||||||||||||
(Dollars in millions) | U.S. Credit Card | Non-U.S. Credit Card | Direct/Indirect Consumer | Other Consumer (1) | |||||||||||
Refreshed FICO score | |||||||||||||||
Less than 620 | $ | 4,989 | $ | — | $ | 1,220 | $ | 539 | |||||||
Greater than or equal to 620 and less than 680 | 12,753 | — | 3,345 | 264 | |||||||||||
Greater than or equal to 680 and less than 740 | 35,413 | — | 9,887 | 199 | |||||||||||
Greater than or equal to 740 | 39,183 | — | 26,220 | 188 | |||||||||||
Other internal credit metrics (2, 3, 4) | — | 11,541 | 41,520 | 787 | |||||||||||
Total credit card and other consumer | $ | 92,338 | $ | 11,541 | $ | 82,192 | $ | 1,977 |
(1) | 60 percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited. |
(2) | Other internal credit metrics may include delinquency status, geography or other factors. |
(3) | Direct/indirect consumer includes $35.8 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $4.1 billion of loans the Corporation no longer originates. |
(4) | Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2013, 98 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and one percent was 90 days or more past due. |
Commercial – Credit Quality Indicators (1) | |||||||||||||||||||
December 31, 2013 | |||||||||||||||||||
(Dollars in millions) | U.S. Commercial | Commercial Real Estate | Commercial Lease Financing | Non-U.S. Commercial | U.S. Small Business Commercial (2) | ||||||||||||||
Risk ratings | |||||||||||||||||||
Pass rated | $ | 205,416 | $ | 46,507 | $ | 24,211 | $ | 88,138 | $ | 1,191 | |||||||||
Reservable criticized | 7,141 | 1,386 | 988 | 1,324 | 346 | ||||||||||||||
Refreshed FICO score (3) | |||||||||||||||||||
Less than 620 | 224 | ||||||||||||||||||
Greater than or equal to 620 and less than 680 | 534 | ||||||||||||||||||
Greater than or equal to 680 and less than 740 | 1,567 | ||||||||||||||||||
Greater than or equal to 740 | 2,779 | ||||||||||||||||||
Other internal credit metrics (3, 4) | 6,653 | ||||||||||||||||||
Total commercial | $ | 212,557 | $ | 47,893 | $ | 25,199 | $ | 89,462 | $ | 13,294 |
(1) | Excludes $7.9 billion of loans accounted for under the fair value option. |
(2) | U.S. small business commercial includes $289 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2013, 99 percent of the balances where internal credit metrics are used was current or less than 30 days past due. |
(3) | Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio. |
(4) | Other internal credit metrics may include delinquency status, application scores, geography or other factors. |
Home Loans – Credit Quality Indicators (1) | |||||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||||
(Dollars in millions) | Core Portfolio Residential Mortgage (2) | Legacy Assets & Servicing Residential Mortgage (2) | Residential Mortgage PCI (3) | Core Portfolio Home Equity (2) | Legacy Assets & Servicing Home Equity (2) | Home Equity PCI | |||||||||||||||||
Refreshed LTV (4) | |||||||||||||||||||||||
Less than or equal to 90 percent | $ | 80,585 | $ | 20,613 | $ | 8,581 | $ | 44,971 | $ | 15,922 | $ | 2,074 | |||||||||||
Greater than 90 percent but less than or equal to 100 percent | 8,891 | 5,097 | 2,368 | 5,825 | 4,507 | 805 | |||||||||||||||||
Greater than 100 percent | 12,984 | 16,454 | 6,502 | 10,055 | 18,193 | 5,788 | |||||||||||||||||
Fully-insured loans (5) | 67,656 | 23,198 | — | — | — | — | |||||||||||||||||
Total home loans | $ | 170,116 | $ | 65,362 | $ | 17,451 | $ | 60,851 | $ | 38,622 | $ | 8,667 | |||||||||||
Refreshed FICO score | |||||||||||||||||||||||
Less than 620 | $ | 6,366 | $ | 14,320 | $ | 8,647 | $ | 2,586 | $ | 5,411 | $ | 1,989 | |||||||||||
Greater than or equal to 620 and less than 680 | 8,561 | 6,157 | 2,712 | 4,500 | 5,921 | 1,529 | |||||||||||||||||
Greater than or equal to 680 and less than 740 | 25,141 | 8,611 | 2,976 | 12,625 | 10,395 | 2,299 | |||||||||||||||||
Greater than or equal to 740 | 62,392 | 13,076 | 3,116 | 41,140 | 16,895 | 2,850 | |||||||||||||||||
Fully-insured loans (5) | 67,656 | 23,198 | — | — | — | — | |||||||||||||||||
Total home loans | $ | 170,116 | $ | 65,362 | $ | 17,451 | $ | 60,851 | $ | 38,622 | $ | 8,667 |
(1) | Excludes $1.0 billion of loans accounted for under the fair value option. |
(2) | Excludes PCI loans. |
(3) | Includes $6.1 billion of pay option loans. The Corporation no longer originates this product. |
(4) | Refreshed LTV percentages for PCI loans are calculated using the carrying value net of the related valuation allowance. |
(5) | Credit quality indicators are not reported for fully-insured loans as principal repayment is insured. |
Credit Card and Other Consumer – Credit Quality Indicators | |||||||||||||||
December 31, 2012 | |||||||||||||||
(Dollars in millions) | U.S. Credit Card | Non-U.S. Credit Card | Direct/Indirect Consumer | Other Consumer (1) | |||||||||||
Refreshed FICO score | |||||||||||||||
Less than 620 | $ | 6,188 | $ | — | $ | 1,896 | $ | 668 | |||||||
Greater than or equal to 620 and less than 680 | 13,947 | — | 3,367 | 301 | |||||||||||
Greater than or equal to 680 and less than 740 | 37,167 | — | 9,592 | 232 | |||||||||||
Greater than or equal to 740 | 37,533 | — | 25,164 | 212 | |||||||||||
Other internal credit metrics (2, 3, 4) | — | 11,697 | 43,186 | 215 | |||||||||||
Total credit card and other consumer | $ | 94,835 | $ | 11,697 | $ | 83,205 | $ | 1,628 |
(1) | 87 percent of the other consumer portfolio is associated with portfolios from certain consumer finance businesses that the Corporation previously exited. |
(2) | Other internal credit metrics may include delinquency status, geography or other factors. |
(3) | Direct/indirect consumer includes $36.5 billion of securities-based lending which is overcollateralized and therefore has minimal credit risk and $4.8 billion of loans the Corporation no longer originates. |
(4) | Non-U.S. credit card represents the U.K. credit card portfolio which is evaluated using internal credit metrics, including delinquency status. At December 31, 2012, 97 percent of this portfolio was current or less than 30 days past due, one percent was 30-89 days past due and two percent was 90 days or more past due. |
Commercial – Credit Quality Indicators (1) | |||||||||||||||||||
December 31, 2012 | |||||||||||||||||||
(Dollars in millions) | U.S. Commercial | Commercial Real Estate | Commercial Lease Financing | Non-U.S. Commercial | U.S. Small Business Commercial (2) | ||||||||||||||
Risk ratings | |||||||||||||||||||
Pass rated | $ | 189,602 | $ | 34,968 | $ | 22,874 | $ | 72,688 | $ | 1,690 | |||||||||
Reservable criticized | 7,524 | 3,669 | 969 | 1,496 | 573 | ||||||||||||||
Refreshed FICO score (3) | |||||||||||||||||||
Less than 620 | 400 | ||||||||||||||||||
Greater than or equal to 620 and less than 680 | 580 | ||||||||||||||||||
Greater than or equal to 680 and less than 740 | 1,553 | ||||||||||||||||||
Greater than or equal to 740 | 2,496 | ||||||||||||||||||
Other internal credit metrics (3, 4) | 5,301 | ||||||||||||||||||
Total commercial | $ | 197,126 | $ | 38,637 | $ | 23,843 | $ | 74,184 | $ | 12,593 |
(1) | Excludes $8.0 billion of loans accounted for under the fair value option. |
(2) | U.S. small business commercial includes $366 million of criticized business card and small business loans which are evaluated using refreshed FICO scores or internal credit metrics, including delinquency status, rather than risk ratings. At December 31, 2012, 98 percent of the balances where internal credit metrics are used was current or less than 30 days past due. |
(3) | Refreshed FICO score and other internal credit metrics are applicable only to the U.S. small business commercial portfolio. |
(4) | Other internal credit metrics may include delinquency status, application scores, geography or other factors. |
Impaired Loans – Home Loans | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | |||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
Residential mortgage | $ | 21,567 | $ | 16,450 | $ | — | $ | 20,226 | $ | 14,967 | $ | — | |||||||||||
Home equity | 3,249 | 1,385 | — | 2,624 | 1,103 | — | |||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
Residential mortgage | 13,341 | 12,862 | 991 | 14,223 | 13,158 | 1,252 | |||||||||||||||||
Home equity | 893 | 761 | 240 | 1,256 | 1,022 | 448 | |||||||||||||||||
Total | |||||||||||||||||||||||
Residential mortgage | $ | 34,908 | $ | 29,312 | $ | 991 | $ | 34,449 | $ | 28,125 | $ | 1,252 | |||||||||||
Home equity | 4,142 | 2,146 | 240 | 3,880 | 2,125 | 448 | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Average Carrying Value | Interest Income Recognized (1) | Average Carrying Value | Interest Income Recognized (1) | Average Carrying Value | Interest Income Recognized (1) | ||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
Residential mortgage | $ | 16,625 | $ | 621 | $ | 10,937 | $ | 366 | $ | 6,507 | $ | 241 | |||||||||||
Home equity | 1,245 | 76 | 734 | 49 | 442 | 23 | |||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
Residential mortgage | 13,926 | 616 | 11,575 | 423 | 9,552 | 325 | |||||||||||||||||
Home equity | 912 | 41 | 1,145 | 44 | 1,357 | 34 | |||||||||||||||||
Total | |||||||||||||||||||||||
Residential mortgage | $ | 30,551 | $ | 1,237 | $ | 22,512 | $ | 789 | $ | 16,059 | $ | 566 | |||||||||||
Home equity | 2,157 | 117 | 1,879 | 93 | 1,799 | 57 |
(1) | Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible. |
Home Loans – TDRs Entered into During 2013, 2012 and 2011 (1) | |||||||||||||||||
December 31, 2013 | 2013 | ||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value | Pre-Modification Interest Rate | Post-Modification Interest Rate | Net Charge-offs (2) | ||||||||||||
Residential mortgage | $ | 11,233 | $ | 10,016 | 5.30 | % | 4.27 | % | $ | 235 | |||||||
Home equity | 878 | 521 | 5.29 | 3.92 | 192 | ||||||||||||
Total | $ | 12,111 | $ | 10,537 | 5.30 | 4.24 | $ | 427 | |||||||||
December 31, 2012 | 2012 | ||||||||||||||||
Residential mortgage | $ | 15,088 | $ | 12,228 | 5.52 | % | 4.70 | % | $ | 523 | |||||||
Home equity | 1,721 | 858 | 5.22 | 4.39 | 716 | ||||||||||||
Total | $ | 16,809 | $ | 13,086 | 5.49 | 4.66 | $ | 1,239 | |||||||||
December 31, 2011 | 2011 | ||||||||||||||||
Residential mortgage | $ | 11,764 | $ | 9,991 | 5.94 | % | 5.16 | % | $ | 308 | |||||||
Home equity | 1,112 | 556 | 6.58 | 5.25 | 239 | ||||||||||||
Total | $ | 12,876 | $ | 10,547 | 6.01 | 5.17 | $ | 547 |
(1) | TDRs entered into during 2013 include residential mortgage modifications with principal forgiveness of $467 million. TDRs entered into during 2012 include residential mortgage modifications with principal forgiveness of $778 million and home equity modifications of $9 million. Prior to 2012, the principal forgiveness amount was not significant. |
(2) | Net charge-offs include amounts recorded on loans modified during the period that are no longer held by the Corporation at December 31, 2013, 2012 and 2011 due to sales and other dispositions. |
Home Loans – Modification Programs | |||||||||||
TDRs Entered into During 2013 | |||||||||||
(Dollars in millions) | Residential Mortgage | Home Equity | Total Carrying Value | ||||||||
Modifications under government programs | |||||||||||
Contractual interest rate reduction | $ | 1,815 | $ | 48 | $ | 1,863 | |||||
Principal and/or interest forbearance | 35 | 24 | 59 | ||||||||
Other modifications (1) | 100 | — | 100 | ||||||||
Total modifications under government programs | 1,950 | 72 | 2,022 | ||||||||
Modifications under proprietary programs | |||||||||||
Contractual interest rate reduction | 2,799 | 40 | 2,839 | ||||||||
Capitalization of past due amounts | 132 | 2 | 134 | ||||||||
Principal and/or interest forbearance | 469 | 17 | 486 | ||||||||
Other modifications (1) | 105 | 25 | 130 | ||||||||
Total modifications under proprietary programs | 3,505 | 84 | 3,589 | ||||||||
Trial modifications | 3,410 | 87 | 3,497 | ||||||||
Loans discharged in Chapter 7 bankruptcy (2) | 1,151 | 278 | 1,429 | ||||||||
Total modifications | $ | 10,016 | $ | 521 | $ | 10,537 | |||||
TDRs Entered into During 2012 | |||||||||||
Modifications under government programs | |||||||||||
Contractual interest rate reduction | $ | 642 | $ | 78 | $ | 720 | |||||
Principal and/or interest forbearance | 51 | 31 | 82 | ||||||||
Other modifications (1) | 37 | 1 | 38 | ||||||||
Total modifications under government programs | 730 | 110 | 840 | ||||||||
Modifications under proprietary programs | |||||||||||
Contractual interest rate reduction | 3,350 | 44 | 3,394 | ||||||||
Capitalization of past due amounts | 144 | — | 144 | ||||||||
Principal and/or interest forbearance | 424 | 16 | 440 | ||||||||
Other modifications (1) | 97 | 21 | 118 | ||||||||
Total modifications under proprietary programs | 4,015 | 81 | 4,096 | ||||||||
Trial modifications | 4,547 | 69 | 4,616 | ||||||||
Loans discharged in Chapter 7 bankruptcy (2) | 2,936 | 598 | 3,534 | ||||||||
Total modifications | $ | 12,228 | $ | 858 | $ | 13,086 | |||||
TDRs Entered into During 2011 | |||||||||||
Modifications under government programs | |||||||||||
Contractual interest rate reduction | $ | 994 | $ | 189 | $ | 1,183 | |||||
Principal and/or interest forbearance | 189 | 36 | 225 | ||||||||
Other modifications (1) | 64 | 5 | 69 | ||||||||
Total modifications under government programs | 1,247 | 230 | 1,477 | ||||||||
Modifications under proprietary programs | |||||||||||
Contractual interest rate reduction | 3,531 | 101 | 3,632 | ||||||||
Capitalization of past due amounts | 410 | 1 | 411 | ||||||||
Principal and/or interest forbearance | 946 | 49 | 995 | ||||||||
Other modifications (1) | 441 | 34 | 475 | ||||||||
Total modifications under proprietary programs | 5,328 | 185 | 5,513 | ||||||||
Trial modifications | 3,416 | 141 | 3,557 | ||||||||
Total modifications | $ | 9,991 | $ | 556 | $ | 10,547 |
(1) | Includes other modifications such as term or payment extensions and repayment plans. |
(2) | Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. The amount for 2012 represents the cumulative impact upon adoption of the regulatory guidance. During 2013, home loans of $587 million, or 41 percent of loans discharged in Chapter 7 bankruptcy were current or less than 60 days past due. |
Home Loans – TDRs Entering Payment Default That Were Modified During the Preceding 12 Months | |||||||||||
2013 | |||||||||||
(Dollars in millions) | Residential Mortgage | Home Equity | Total Carrying Value (1) | ||||||||
Modifications under government programs | $ | 454 | $ | 2 | $ | 456 | |||||
Modifications under proprietary programs | 1,117 | 4 | 1,121 | ||||||||
Loans discharged in Chapter 7 bankruptcy (2) | 964 | 30 | 994 | ||||||||
Trial modifications | 4,376 | 14 | 4,390 | ||||||||
Total modifications | $ | 6,911 | $ | 50 | $ | 6,961 | |||||
2012 | |||||||||||
Modifications under government programs | $ | 202 | $ | 8 | $ | 210 | |||||
Modifications under proprietary programs | 942 | 14 | 956 | ||||||||
Loans discharged in Chapter 7 bankruptcy (2) | 1,228 | 53 | 1,281 | ||||||||
Trial modifications | 2,351 | 20 | 2,371 | ||||||||
Total modifications | $ | 4,723 | $ | 95 | $ | 4,818 | |||||
2011 | |||||||||||
Modifications under government programs | $ | 352 | $ | 2 | $ | 354 | |||||
Modifications under proprietary programs | 2,098 | 42 | 2,140 | ||||||||
Trial modifications | 1,101 | 17 | 1,118 | ||||||||
Total modifications | $ | 3,551 | $ | 61 | $ | 3,612 |
(1) | Total carrying value includes loans with a carrying value of $2.4 billion, $667 million and $514 million that entered into payment default during 2013, 2012 and 2011 but were no longer held by the Corporation as of December 31, 2013, 2012 and 2011 due to sales and other dispositions. |
(2) | Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. |
Impaired Loans – Credit Card and Other Consumer – Renegotiated TDRs | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value (1) | Related Allowance | Unpaid Principal Balance | Carrying Value (1) | Related Allowance | |||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
U.S. credit card | $ | 1,384 | $ | 1,465 | $ | 337 | $ | 2,856 | $ | 2,871 | $ | 719 | |||||||||||
Non-U.S. credit card | 200 | 240 | 149 | 311 | 316 | 198 | |||||||||||||||||
Direct/Indirect consumer | 242 | 282 | 84 | 633 | 636 | 210 | |||||||||||||||||
Other consumer | 27 | 26 | 9 | 30 | 30 | 12 | |||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
Direct/Indirect consumer | 75 | 32 | — | 105 | 58 | — | |||||||||||||||||
Other consumer | 34 | 34 | — | 35 | 35 | — | |||||||||||||||||
Total | |||||||||||||||||||||||
U.S. credit card | $ | 1,384 | $ | 1,465 | $ | 337 | $ | 2,856 | $ | 2,871 | $ | 719 | |||||||||||
Non-U.S. credit card | 200 | 240 | 149 | 311 | 316 | 198 | |||||||||||||||||
Direct/Indirect consumer | 317 | 314 | 84 | 738 | 694 | 210 | |||||||||||||||||
Other consumer | 61 | 60 | 9 | 65 | 65 | 12 | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | ||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
U.S. credit card | $ | 2,144 | $ | 134 | $ | 4,085 | $ | 253 | $ | 7,211 | $ | 433 | |||||||||||
Non-U.S. credit card | 266 | 7 | 464 | 10 | 759 | 6 | |||||||||||||||||
Direct/Indirect consumer | 456 | 24 | 929 | 50 | 1,582 | 85 | |||||||||||||||||
Other consumer | 28 | 2 | 29 | 2 | 30 | 2 | |||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
Direct/Indirect consumer | 42 | — | 58 | — | — | — | |||||||||||||||||
Other consumer | 34 | 2 | 35 | 2 | 30 | 2 | |||||||||||||||||
Total | |||||||||||||||||||||||
U.S. credit card | $ | 2,144 | $ | 134 | $ | 4,085 | $ | 253 | $ | 7,211 | $ | 433 | |||||||||||
Non-U.S. credit card | 266 | 7 | 464 | 10 | 759 | 6 | |||||||||||||||||
Direct/Indirect consumer | 498 | 24 | 987 | 50 | 1,582 | 85 | |||||||||||||||||
Other consumer | 62 | 4 | 64 | 4 | 60 | 4 |
(1) | Includes accrued interest and fees. |
(2) | Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible. |
Credit Card and Other Consumer – Renegotiated TDRs by Program Type | |||||||||||||||||||||||||||||||||||||
December 31 | |||||||||||||||||||||||||||||||||||||
Internal Programs | External Programs | Other | Total | Percent of Balances Current or Less Than 30 Days Past Due | |||||||||||||||||||||||||||||||||
(Dollars in millions) | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||||
U.S. credit card | $ | 842 | $ | 1,887 | $ | 607 | $ | 953 | $ | 16 | $ | 31 | $ | 1,465 | $ | 2,871 | 82.77 | % | 81.48 | % | |||||||||||||||||
Non-U.S. credit card | 71 | 99 | 26 | 38 | 143 | 179 | 240 | 316 | 49.01 | 43.71 | |||||||||||||||||||||||||||
Direct/Indirect consumer | 170 | 405 | 106 | 225 | 38 | 64 | 314 | 694 | 84.29 | 83.11 | |||||||||||||||||||||||||||
Other consumer | 60 | 65 | — | — | — | — | 60 | 65 | 71.08 | 72.73 | |||||||||||||||||||||||||||
Total renegotiated TDRs | $ | 1,143 | $ | 2,456 | $ | 739 | $ | 1,216 | $ | 197 | $ | 274 | $ | 2,079 | $ | 3,946 | 78.77 | 78.58 |
Credit Card and Other Consumer – Renegotiated TDRs Entered into During 2013, 2012 and 2011 | |||||||||||||||||
December 31, 2013 | 2013 | ||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value (1) | Pre-Modification Interest Rate | Post-Modification Interest Rate | Net Charge-offs | ||||||||||||
U.S. credit card | $ | 299 | $ | 329 | 16.84 | % | 5.84 | % | $ | 30 | |||||||
Non-U.S. credit card | 134 | 147 | 25.90 | 0.95 | 138 | ||||||||||||
Direct/Indirect consumer | 47 | 38 | 11.53 | 4.74 | 15 | ||||||||||||
Other consumer | 8 | 8 | 9.28 | 5.25 | — | ||||||||||||
Total | $ | 488 | $ | 522 | 18.89 | 4.37 | $ | 183 | |||||||||
December 31, 2012 | 2012 | ||||||||||||||||
U.S. credit card | $ | 396 | $ | 400 | 17.59 | % | 6.36 | % | $ | 45 | |||||||
Non-U.S. credit card | 196 | 206 | 26.19 | 1.15 | 190 | ||||||||||||
Direct/Indirect consumer | 160 | 113 | 9.59 | 5.72 | 52 | ||||||||||||
Other consumer | 9 | 9 | 9.97 | 6.44 | — | ||||||||||||
Total | $ | 761 | $ | 728 | 18.68 | 4.79 | $ | 287 | |||||||||
December 31, 2011 | 2011 | ||||||||||||||||
U.S. credit card | $ | 890 | $ | 902 | 19.04 | % | 6.16 | % | $ | 106 | |||||||
Non-U.S. credit card | 305 | 322 | 26.32 | 1.04 | 291 | ||||||||||||
Direct/Indirect consumer | 198 | 199 | 15.63 | 5.22 | 23 | ||||||||||||
Other consumer | 17 | 17 | 10.01 | 6.53 | — | ||||||||||||
Total | $ | 1,410 | $ | 1,440 | 20.09 | 4.89 | $ | 420 |
(1) | Includes accrued interest and fees. |
Credit Card and Other Consumer – Renegotiated TDRs Entered into During the Period by Program Type | |||||||||||||||
2013 | |||||||||||||||
(Dollars in millions) | Internal Programs | External Programs | Other | Total | |||||||||||
U.S. credit card | $ | 192 | $ | 137 | $ | — | $ | 329 | |||||||
Non-U.S. credit card | 73 | 74 | — | 147 | |||||||||||
Direct/Indirect consumer | 15 | 8 | 15 | 38 | |||||||||||
Other consumer | 8 | — | — | 8 | |||||||||||
Total renegotiated TDRs | $ | 288 | $ | 219 | $ | 15 | $ | 522 | |||||||
2012 | |||||||||||||||
U.S. credit card | $ | 248 | $ | 152 | $ | — | $ | 400 | |||||||
Non-U.S. credit card | 112 | 94 | — | 206 | |||||||||||
Direct/Indirect consumer | 36 | 19 | 58 | 113 | |||||||||||
Other consumer | 9 | — | — | 9 | |||||||||||
Total renegotiated TDRs | $ | 405 | $ | 265 | $ | 58 | $ | 728 | |||||||
2011 | |||||||||||||||
U.S. credit card | $ | 492 | $ | 407 | $ | 3 | $ | 902 | |||||||
Non-U.S. credit card | 163 | 158 | 1 | 322 | |||||||||||
Direct/Indirect consumer | 112 | 87 | — | 199 | |||||||||||
Other consumer | 17 | — | — | 17 | |||||||||||
Total renegotiated TDRs | $ | 784 | $ | 652 | $ | 4 | $ | 1,440 |
Impaired Loans – Commercial | |||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | ||||||||||||||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value | Related Allowance | Unpaid Principal Balance | Carrying Value | Related Allowance | |||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
U.S. commercial | $ | 609 | $ | 577 | $ | — | $ | 571 | $ | 476 | $ | — | |||||||||||
Commercial real estate | 254 | 228 | — | 370 | 316 | — | |||||||||||||||||
Non-U.S. commercial | 10 | 10 | — | 155 | 36 | — | |||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
U.S. commercial | 1,581 | 1,262 | 164 | 2,431 | 1,771 | 159 | |||||||||||||||||
Commercial real estate | 1,066 | 731 | 61 | 2,920 | 1,848 | 201 | |||||||||||||||||
Non-U.S. commercial | 254 | 64 | 16 | 365 | 117 | 18 | |||||||||||||||||
U.S. small business commercial (1) | 186 | 176 | 36 | 361 | 317 | 97 | |||||||||||||||||
Total | |||||||||||||||||||||||
U.S. commercial | $ | 2,190 | $ | 1,839 | $ | 164 | $ | 3,002 | $ | 2,247 | $ | 159 | |||||||||||
Commercial real estate | 1,320 | 959 | 61 | 3,290 | 2,164 | 201 | |||||||||||||||||
Non-U.S. commercial | 264 | 74 | 16 | 520 | 153 | 18 | |||||||||||||||||
U.S. small business commercial (1) | 186 | 176 | 36 | 361 | 317 | 97 | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | Average Carrying Value | Interest Income Recognized (2) | ||||||||||||||||||
With no recorded allowance | |||||||||||||||||||||||
U.S. commercial | $ | 442 | $ | 6 | $ | 588 | $ | 9 | $ | 774 | $ | 7 | |||||||||||
Commercial real estate | 269 | 3 | 1,119 | 3 | 1,994 | 7 | |||||||||||||||||
Non-U.S. commercial | 28 | — | 104 | — | 101 | — | |||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
U.S. commercial | 1,553 | 47 | 2,104 | 55 | 2,422 | 13 | |||||||||||||||||
Commercial real estate | 1,148 | 28 | 2,126 | 29 | 3,309 | 19 | |||||||||||||||||
Non-U.S. commercial | 109 | 5 | 77 | 4 | 76 | 3 | |||||||||||||||||
U.S. small business commercial (1) | 236 | 6 | 409 | 13 | 666 | 23 | |||||||||||||||||
Total | |||||||||||||||||||||||
U.S. commercial | $ | 1,995 | $ | 53 | $ | 2,692 | $ | 64 | $ | 3,196 | $ | 20 | |||||||||||
Commercial real estate | 1,417 | 31 | 3,245 | 32 | 5,303 | 26 | |||||||||||||||||
Non-U.S. commercial | 137 | 5 | 181 | 4 | 177 | 3 | |||||||||||||||||
U.S. small business commercial (1) | 236 | 6 | 409 | 13 | 666 | 23 |
(1) | Includes U.S. small business commercial renegotiated TDR loans and related allowance. |
(2) | Interest income recognized includes interest accrued and collected on the outstanding balances of accruing impaired loans as well as interest cash collections on nonaccruing impaired loans for which the principal is considered collectible. |
Commercial – TDRs Entered into During 2013, 2012 and 2011 | |||||||||||
December 31, 2013 | 2013 | ||||||||||
(Dollars in millions) | Unpaid Principal Balance | Carrying Value | Net Charge-offs | ||||||||
U.S. commercial | $ | 926 | $ | 910 | $ | 33 | |||||
Commercial real estate | 483 | 425 | 3 | ||||||||
Non-U.S. commercial | 61 | 44 | 7 | ||||||||
U.S. small business commercial (1) | 8 | 9 | 1 | ||||||||
Total | $ | 1,478 | $ | 1,388 | $ | 44 | |||||
December 31, 2012 | 2012 | ||||||||||
U.S. commercial | $ | 590 | $ | 558 | $ | 34 | |||||
Commercial real estate | 793 | 721 | 20 | ||||||||
Non-U.S. commercial | 90 | 89 | 1 | ||||||||
U.S. small business commercial (1) | 22 | 22 | 5 | ||||||||
Total | $ | 1,495 | $ | 1,390 | $ | 60 | |||||
December 31, 2011 | 2011 | ||||||||||
U.S. commercial | $ | 1,381 | $ | 1,211 | $ | 74 | |||||
Commercial real estate | 1,604 | 1,333 | 152 | ||||||||
Non-U.S. commercial | 44 | 44 | — | ||||||||
U.S. small business commercial (1) | 58 | 59 | 10 | ||||||||
Total | $ | 3,087 | $ | 2,647 | $ | 236 |
(1) | U.S. small business commercial TDRs are comprised of renegotiated small business card loans. |
Purchased Loans at Acquisition Date | |||
(Dollars in millions) | |||
Contractually required payments including interest | $ | 8,274 | |
Less: Nonaccretable difference | 2,159 | ||
Cash flows expected to be collected (1) | 6,115 | ||
Less: Accretable yield | 1,125 | ||
Fair value of loans acquired | $ | 4,990 |
(1) | Represents undiscounted expected principal and interest cash flows at acquisition. |
Rollforward of Accretable Yield | |||
(Dollars in millions) | |||
Accretable yield, January 1, 2012 | $ | 4,990 | |
Accretion | (1,034 | ) | |
Disposals/transfers | (109 | ) | |
Reclassifications from nonaccretable difference | 797 | ||
Accretable yield, December 31, 2012 | 4,644 | ||
Accretion | (1,194 | ) | |
Loans purchased | 1,125 | ||
Disposals/transfers | (361 | ) | |
Reclassifications from nonaccretable difference | 2,480 | ||
Accretable yield, December 31, 2013 | $ | 6,694 |