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Loans | 12 Months Ended
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Dec. 31, 2019
Receivables [Abstract] |
Loans |
NOTE 3—LOANS
Our loan portfolio consists of loans held for investment, including loans held in our consolidated trusts, and loans held for sale. We further divide our loans held for investment into three portfolio segments: credit card, consumer banking and commercial banking. Credit card loans consist of domestic and international credit card loans. Consumer banking loans consist of auto and retail banking loans. Commercial banking loans consist of commercial and multifamily real estate as well as commercial and industrial loans. We sold all of our consumer home loan portfolio and the related servicing during 2018. The information presented in this section excludes loans held for sale, which are carried at either fair value (if we elect the fair value option) or at the lower of cost or fair value. We monitor delinquency trends to assess our exposure to credit risk in our loan portfolio. The table below presents the composition and an aging analysis of our loans held for investment as of December 31, 2019 and 2018. The delinquency aging includes all past due loans, both performing and nonperforming. Table 3.1: Loan Portfolio Composition and Aging Analysis
|  | December 31, 2019
(Dollars in millions) |  | Current |  | 30-59 Days |  | 60-89 Days |  | > 90 Days |  | Total Delinquent Loans |  | PCI Loans |  | Total Loans
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  | $ | 113,857 |  |  | $ | 1,341 |  |  | $ | 1,038 |  |  | $ | 2,277 |  |  | $ | 4,656 |  |  | $ | 93 |  |  | $ | 118,606 |
International card businesses |  | 9,277 |  |  | 133 |  |  | 84 |  |  | 136 |  |  | 353 |  |  | 0 |  |  | 9,630 |
Total credit card |  | 123,134 |  |  | 1,474 |  |  | 1,122 |  |  | 2,413 |  |  | 5,009 |  |  | 93 |  |  | 128,236 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Auto |  | 55,778 |  |  | 2,828 |  |  | 1,361 |  |  | 395 |  |  | 4,584 |  |  | 0 |  |  | 60,362 |
Retail banking |  | 2,658 |  |  | 24 |  |  | 8 |  |  | 11 |  |  | 43 |  |  | 2 |  |  | 2,703 |
Total consumer banking |  | 58,436 |  |  | 2,852 |  |  | 1,369 |  |  | 406 |  |  | 4,627 |  |  | 2 |  |  | 63,065 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 30,157 |  |  | 43 |  |  | 20 |  |  | 4 |  |  | 67 |  |  | 21 |  |  | 30,245 |
Commercial and industrial |  | 44,009 |  |  | 75 |  |  | 26 |  |  | 143 |  |  | 244 |  |  | 10 |  |  | 44,263 |
Total commercial banking |  | 74,166 |  |  | 118 |  |  | 46 |  |  | 147 |  |  | 311 |  |  | 31 |  |  | 74,508 |
Total loans(1) |  | $ | 255,736 |  |  | $ | 4,444 |  |  | $ | 2,537 |  |  | $ | 2,966 |  |  | $ | 9,947 |  |  | $ | 126 |  |  | $ | 265,809 |
% of Total loans |  | 96.2 | % |  | 1.6 | % |  | 1.0 | % |  | 1.1 | % |  | 3.7 | % |  | 0.1 | % |  | 100.0 | %
|  | December 31, 2018
(Dollars in millions) |  | Current |  | 30-59 Days |  | 60-89 Days |  | > 90 Days |  | Total Delinquent Loans |  | PCI Loans |  | Total Loans
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  | $ | 103,014 |  |  | $ | 1,270 |  |  | $ | 954 |  |  | $ | 2,111 |  |  | $ | 4,335 |  |  | $ | 1 |  |  | $ | 107,350 |
International card businesses |  | 8,678 |  |  | 127 |  |  | 78 |  |  | 128 |  |  | 333 |  |  | 0 |  |  | 9,011 |
Total credit card |  | 111,692 |  |  | 1,397 |  |  | 1,032 |  |  | 2,239 |  |  | 4,668 |  |  | 1 |  |  | 116,361 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Auto |  | 52,032 |  |  | 2,624 |  |  | 1,326 |  |  | 359 |  |  | 4,309 |  |  | 0 |  |  | 56,341 |
Retail banking |  | 2,809 |  |  | 23 |  |  | 8 |  |  | 20 |  |  | 51 |  |  | 4 |  |  | 2,864 |
Total consumer banking |  | 54,841 |  |  | 2,647 |  |  | 1,334 |  |  | 379 |  |  | 4,360 |  |  | 4 |  |  | 59,205 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 28,737 |  |  | 101 |  |  | 20 |  |  | 19 |  |  | 140 |  |  | 22 |  |  | 28,899 |
Commercial and industrial |  | 40,704 |  |  | 135 |  |  | 43 |  |  | 101 |  |  | 279 |  |  | 108 |  |  | 41,091 |
Total commercial lending |  | 69,441 |  |  | 236 |  |  | 63 |  |  | 120 |  |  | 419 |  |  | 130 |  |  | 69,990 |
Small-ticket commercial real estate |  | 336 |  |  | 2 |  |  | 1 |  |  | 4 |  |  | 7 |  |  | 0 |  |  | 343 |
Total commercial banking |  | 69,777 |  |  | 238 |  |  | 64 |  |  | 124 |  |  | 426 |  |  | 130 |  |  | 70,333 |
Total loans(1) |  | $ | 236,310 |  |  | $ | 4,282 |  |  | $ | 2,430 |  |  | $ | 2,742 |  |  | $ | 9,454 |  |  | $ | 135 |  |  | $ | 245,899 |
% of Total loans |  | 96.1 | % |  | 1.7 | % |  | 1.0 | % |  | 1.1 | % |  | 3.8 | % |  | 0.1 | % |  | 100.0 | %
__________ (1) Loans, other than PCI loans, include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $1.1 billion and $818 million as of December 31, 2019 and 2018, respectively. The following table presents the outstanding balance of loans 90 days or more past due that continue to accrue interest and loans classified as nonperforming as of December 31, 2019 and 2018. Nonperforming loans generally include loans that have been placed on nonaccrual status. PCI loans are excluded from the table below. See “Note 1—Summary of Significant Accounting Policies” for additional information on our policies for nonperforming loans and accounting for PCI loans. Table 3.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans
|  | December 31, 2019 |  | December 31, 2018
(Dollars in millions) |  | > 90 Days and Accruing |  | Nonperforming Loans |  | > 90 Days and Accruing |  | Nonperforming Loans
Credit Card: |  |  |  |  |  |  |  |
Domestic credit card |  | $ | 2,277 |  |  | N/A |  |  | $ | 2,111 |  |  | N/A |
International card businesses |  | 130 |  |  | $ | 25 |  |  | 122 |  |  | $ | 22 |
Total credit card |  | 2,407 |  |  | 25 |  |  | 2,233 |  |  | 22 |
Consumer Banking: |  |  |  |  |  |  |  |
Auto |  | 0 |  |  | 487 |  |  | 0 |  |  | 449 |
Retail banking |  | 0 |  |  | 23 |  |  | 0 |  |  | 30 |
Total consumer banking |  | 0 |  |  | 510 |  |  | 0 |  |  | 479 |
Commercial Banking: |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 0 |  |  | 38 |  |  | 0 |  |  | 83 |
Commercial and industrial |  | 0 |  |  | 410 |  |  | 0 |  |  | 223 |
Total commercial lending |  | 0 |  |  | 448 |  |  | 0 |  |  | 306 |
Small-ticket commercial real estate |  | 0 |  |  | 0 |  |  | 0 |  |  | 6 |
Total commercial banking |  | 0 |  |  | 448 |  |  | 0 |  |  | 312 |
Total |  | $ | 2,407 |  |  | $ | 983 |  |  | $ | 2,233 |  |  | $ | 813 |
% of Total loans held for investment |  | 0.9 | % |  | 0.4 | % |  | 0.9 | % |  | 0.3 | %
Credit Quality Indicators We closely monitor economic conditions and loan performance trends to assess and manage our exposure to credit risk. We discuss these risks and our credit quality indicator for each portfolio segment below. Credit Card Our credit card loan portfolio is highly diversified across millions of accounts and numerous geographies without significant individual exposure. We therefore generally manage credit risk based on portfolios with common risk characteristics. The risk in our credit card loan portfolio correlates to broad economic trends, such as unemployment rates and home values, as well as consumers’ financial condition, all of which can have a material effect on credit performance. The key indicator we assess in monitoring the credit quality and risk of our credit card loan portfolio is delinquency trends, including an analysis of loan migration between delinquency categories over time. Table 3.1 details delinquency trends for our loan portfolios as of December 31, 2019 and 2018. Consumer Banking Our consumer banking loan portfolio consists of auto and retail banking loans. Similar to our credit card loan portfolio, the risk in our consumer banking loan portfolio correlates to broad economic trends, such as unemployment rates, gross domestic product and home values, as well as consumers’ financial condition, all of which can have a material effect on credit performance. The key indicator we monitor when assessing the credit quality and risk of our auto loan portfolio is borrower credit scores as they measure the creditworthiness of borrowers. Delinquency trends are the key indicator we assess in monitoring the credit quality and risk of our retail banking loan portfolio. Table 3.1 details delinquency trends for our loan portfolios as of December 31, 2019 and 2018. The table below provides details on the credit scores of our auto loan portfolio as of December 31, 2019 and 2018. Table 3.3: Auto Loan Credit Score Distribution - At Origination FICO Scores(1)
(Dollars in millions) |  | December 31, 2019 |  | December 31, 2018
Greater than 660 |  | $ | 28,773 |  |  | $ | 27,913 |
621 - 660 |  | 11,924 |  |  | 10,729 |
620 or below |  | 19,665 |  |  | 17,699 |
Total |  | $ | 60,362 |  |  | $ | 56,341 |
__________ (1) Amounts represent period-end loans held for investment in each credit score category. Auto credit scores generally represent average FICO scores obtained from three credit bureaus at the time of application and are not refreshed thereafter. Balances for which no credit score is available or the credit score is invalid are included in the 620 or below category. Commercial Banking We evaluate the credit risk of commercial banking loans using a risk rating system. We assign internal risk ratings to loans based on relevant information about the ability of the borrowers to repay their debt. In determining the risk rating of a particular loan, some of the factors considered are the borrower’s current financial condition, historical and projected future credit performance, prospects for support from financially responsible guarantors, the estimated realizable value of any collateral and current economic trends. The scale based on our internal risk rating system is as follows:
• | Noncriticized: Loans that have not been designated as criticized, frequently referred to as “pass” loans.
• | Criticized performing: Loans in which the financial condition of the obligor is stressed, affecting earnings, cash flows or collateral values. The borrower currently has adequate capacity to meet near-term obligations; however, the stress, left unabated, may result in deterioration of the repayment prospects at some future date.
• | Criticized nonperforming: Loans that are not adequately protected by the current net worth and paying capacity of the obligor or the collateral pledged, if any. Loans classified as criticized nonperforming have a well-defined weakness, or
weaknesses, which jeopardize the full repayment of the debt. These loans are characterized by the distinct possibility that we will sustain a credit loss if the deficiencies are not corrected and are generally placed on nonaccrual status. We use our internal risk rating system for regulatory reporting, determining the frequency of credit exposure reviews, and evaluating and determining the allowance for loan and lease losses for commercial loans. Generally, loans that are designated as criticized performing and criticized nonperforming are reviewed quarterly by management to determine if they are appropriately classified/rated and whether any impairment exists. Noncriticized loans are also generally reviewed, at least annually, to determine the appropriate risk rating. In addition, we evaluate the risk rating during the renewal process of any loan or if a loan becomes past due. The following table presents the internal risk ratings of our commercial banking loan portfolio as of December 31, 2019 and 2018. Table 3.4: Commercial Banking Risk Profile by Internal Risk Rating
|  | December 31, 2019
(Dollars in millions) |  | Commercial and Multifamily Real Estate |  | % of Total |  | Commercial and Industrial |  | % of Total |  | Total Commercial Banking |  | % of Total
Internal risk rating:(1) |  |  |  |  |  |  |  |  |  |  |  |
Noncriticized |  | $ | 29,625 |  |  | 97.9 | % |  | $ | 42,223 |  |  | 95.4 | % |  | $ | 71,848 |  |  | 96.5 | %
Criticized performing |  | 561 |  |  | 1.9 |  |  | 1,620 |  |  | 3.7 |  |  | 2,181 |  |  | 2.9 |
Criticized nonperforming |  | 38 |  |  | 0.1 |  |  | 410 |  |  | 0.9 |  |  | 448 |  |  | 0.6 |
PCI loans |  | 21 |  |  | 0.1 |  |  | 10 |  |  | 0.0 |  |  | 31 |  |  | 0.0 |
Total |  | $ | 30,245 |  |  | 100.0 | % |  | $ | 44,263 |  |  | 100.0 | % |  | $ | 74,508 |  |  | 100.0 | %
|  | December 31, 2018
(Dollars in millions) |  | Commercial and Multifamily Real Estate |  | % of Total |  | Commercial and Industrial |  | % of Total |  | Small-Ticket Commercial Real Estate |  | % of Total |  | Total Commercial Banking |  | % of Total
Internal risk rating:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncriticized |  | $ | 28,239 |  |  | 97.7 | % |  | $ | 39,468 |  |  | 96.1 | % |  | $ | 336 |  |  | 98.0 | % |  | $ | 68,043 |  |  | 96.8 | %
Criticized performing |  | 555 |  |  | 1.9 |  |  | 1,292 |  |  | 3.1 |  |  | 1 |  |  | 0.3 |  |  | 1,848 |  |  | 2.6 |
Criticized nonperforming |  | 83 |  |  | 0.3 |  |  | 223 |  |  | 0.5 |  |  | 6 |  |  | 1.7 |  |  | 312 |  |  | 0.4 |
PCI loans |  | 22 |  |  | 0.1 |  |  | 108 |  |  | 0.3 |  |  | 0 |  |  | 0.0 |  |  | 130 |  |  | 0.2 |
Total |  | $ | 28,899 |  |  | 100.0 | % |  | $ | 41,091 |  |  | 100.0 | % |  | $ | 343 |  |  | 100.0 | % |  | $ | 70,333 |  |  | 100.0 | %
__________ (1) Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities. Impaired Loans The following table presents information on our impaired loans as of December 31, 2019 and 2018, and for the years ended December 31, 2019, 2018 and 2017. Impaired loans include loans modified in troubled debt restructurings (“TDRs”), all nonperforming commercial loans and nonperforming home loans with a specific impairment. Impaired loans without an allowance generally represent loans that have been charged down to the fair value of the underlying collateral for which we believe no additional losses have been incurred, or where the fair value of the underlying collateral meets or exceeds the loan’s amortized cost. PCI loans are excluded from the following table. Table 3.5: Impaired Loans
|  | December 31, 2019
(Dollars in millions) |  | With an Allowance |  | Without an Allowance |  | Total Recorded Investment |  | Related Allowance |  | Net Recorded Investment |  | Unpaid Principal Balance
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  | $ | 630 |  |  | $ | 0 |  |  | $ | 630 |  |  | $ | 122 |  |  | $ | 508 |  |  | $ | 620 |
International card businesses |  | 201 |  |  | 0 |  |  | 201 |  |  | 88 |  |  | 113 |  |  | 195 |
Total credit card(1) |  | 831 |  |  | 0 |  |  | 831 |  |  | 210 |  |  | 621 |  |  | 815 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |
Auto |  | 305 |  |  | 41 |  |  | 346 |  |  | 24 |  |  | 322 |  |  | 454 |
Retail banking |  | 39 |  |  | 3 |  |  | 42 |  |  | 4 |  |  | 38 |  |  | 46 |
Total consumer banking |  | 344 |  |  | 44 |  |  | 388 |  |  | 28 |  |  | 360 |  |  | 500 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 33 |  |  | 34 |  |  | 67 |  |  | 1 |  |  | 66 |  |  | 70 |
Commercial and industrial |  | 481 |  |  | 125 |  |  | 606 |  |  | 115 |  |  | 491 |  |  | 800 |
Total commercial banking |  | 514 |  |  | 159 |  |  | 673 |  |  | 116 |  |  | 557 |  |  | 870 |
Total |  | $ | 1,689 |  |  | $ | 203 |  |  | $ | 1,892 |  |  | $ | 354 |  |  | $ | 1,538 |  |  | $ | 2,185 |
|  | December 31, 2018
(Dollars in millions) |  | With an Allowance |  | Without an Allowance |  | Total Recorded Investment |  | Related Allowance |  | Net Recorded Investment |  | Unpaid Principal Balance
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  | $ | 666 |  |  | $ | 0 |  |  | $ | 666 |  |  | $ | 186 |  |  | $ | 480 |  |  | $ | 654 |
International card businesses |  | 189 |  |  | 0 |  |  | 189 |  |  | 91 |  |  | 98 |  |  | 183 |
Total credit card(1) |  | 855 |  |  | 0 |  |  | 855 |  |  | 277 |  |  | 578 |  |  | 837 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |
Auto(2) |  | 301 |  |  | 38 |  |  | 339 |  |  | 22 |  |  | 317 |  |  | 420 |
Retail banking |  | 42 |  |  | 12 |  |  | 54 |  |  | 5 |  |  | 49 |  |  | 60 |
Total consumer banking |  | 343 |  |  | 50 |  |  | 393 |  |  | 27 |  |  | 366 |  |  | 480 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 92 |  |  | 28 |  |  | 120 |  |  | 5 |  |  | 115 |  |  | 121 |
Commercial and industrial |  | 301 |  |  | 169 |  |  | 470 |  |  | 29 |  |  | 441 |  |  | 593 |
Total commercial lending |  | 393 |  |  | 197 |  |  | 590 |  |  | 34 |  |  | 556 |  |  | 714 |
Small-ticket commercial real estate |  | 0 |  |  | 6 |  |  | 6 |  |  | 0 |  |  | 6 |  |  | 9 |
Total commercial banking |  | 393 |  |  | 203 |  |  | 596 |  |  | 34 |  |  | 562 |  |  | 723 |
Total |  | $ | 1,591 |  |  | $ | 253 |  |  | $ | 1,844 |  |  | $ | 338 |  |  | $ | 1,506 |  |  | $ | 2,040 |
|  | Year Ended December 31,
|  | 2019 |  | 2018 |  | 2017
(Dollars in millions) |  | Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized |  | Average Recorded Investment |  | Interest Income Recognized
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  | $ | 643 |  |  | $ | 57 |  |  | $ | 655 |  |  | $ | 63 |  |  | $ | 602 |  |  | $ | 63 |
International card businesses |  | 194 |  |  | 14 |  |  | 184 |  |  | 12 |  |  | 154 |  |  | 11 |
Total credit card(1) |  | 837 |  |  | 71 |  |  | 839 |  |  | 75 |  |  | 756 |  |  | 74 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |
Auto(2) |  | 339 |  |  | 39 |  |  | 397 |  |  | 45 |  |  | 495 |  |  | 53 |
Home loan |  | 0 |  |  | 0 |  |  | 91 |  |  | 1 |  |  | 299 |  |  | 5 |
Retail banking |  | 51 |  |  | 1 |  |  | 59 |  |  | 2 |  |  | 59 |  |  | 1 |
Total consumer banking |  | 390 |  |  | 40 |  |  | 547 |  |  | 48 |  |  | 853 |  |  | 59 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 88 |  |  | 1 |  |  | 93 |  |  | 2 |  |  | 134 |  |  | 4 |
Commercial and industrial |  | 571 |  |  | 14 |  |  | 621 |  |  | 20 |  |  | 1,118 |  |  | 18 |
Total commercial lending |  | 659 |  |  | 15 |  |  | 714 |  |  | 22 |  |  | 1,252 |  |  | 22 |
Small-ticket commercial real estate |  | 4 |  |  | 0 |  |  | 5 |  |  | 0 |  |  | 7 |  |  | 0 |
Total commercial banking |  | 663 |  |  | 15 |  |  | 719 |  |  | 22 |  |  | 1,259 |  |  | 22 |
Total |  | $ | 1,890 |  |  | $ | 126 |  |  | $ | 2,105 |  |  | $ | 145 |  |  | $ | 2,868 |  |  | $ | 155 |
__________
(1) | The period-end and average recorded investments of credit card loans include finance charges and fees.
(2) 2018 and 2017 amounts include certain TDRs that were recorded as other assets on our consolidated balance sheets. Troubled Debt Restructurings Total recorded TDRs were $1.7 billion and $1.6 billion as of December 31, 2019 and 2018, respectively. TDRs classified as performing in our credit card and consumer banking loan portfolios totaled $1.1 billion and $1.2 billion as of December 31, 2019 and 2018, respectively. TDRs classified as performing in our commercial banking loan portfolio totaled $224 million and $282 million as of December 31, 2019 and 2018, respectively. Commitments to lend additional funds on loans modified in TDRs totaled $178 million and $256 million as of December 31, 2019 and 2018, respectively. Loans Modified in TDRs As part of our loan modification programs to borrowers experiencing financial difficulty, we may provide multiple concessions to minimize our economic loss and improve long-term loan performance and collectability. The following tables present the major modification types, recorded investment amounts and financial effects of loans modified in TDRs during the years ended December 31, 2019, 2018 and 2017. Table 3.6: Troubled Debt Restructurings
|  | Total Loans Modified(1) |  | Year Ended December 31, 2019
|  | Reduced Interest Rate |  | Term Extension |  | Balance Reduction
(Dollars in millions) |  | % of TDR Activity(2) |  | Average Rate Reduction |  | % of TDR Activity(2) |  | Average Term Extension (Months) |  | % of TDR Activity(2) |  | Gross Balance Reduction
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  | $ | 351 |  |  | 100 | % |  | 16.60 | % |  | 0 | % |  | 0 |  | 0 | % |  | $ | 0 |
International card businesses |  | 173 |  |  | 100 |  |  | 27.28 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Total credit card |  | 524 |  |  | 100 |  |  | 20.12 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Auto |  | 268 |  |  | 39 |  |  | 3.63 |  |  | 90 |  |  | 7 |  | 1 |  |  | 1 |
Retail banking |  | 7 |  |  | 11 |  |  | 10.66 |  |  | 54 |  |  | 3 |  | 33 |  |  | 0 |
Total consumer banking |  | 275 |  |  | 38 |  |  | 3.68 |  |  | 89 |  |  | 7 |  | 2 |  |  | 1 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 39 |  |  | 87 |  |  | 0.00 |  |  | 13 |  |  | 1 |  | 0 |  |  | 0 |
Commercial and industrial |  | 159 |  |  | 3 |  |  | 0.33 |  |  | 20 |  |  | 8 |  | 0 |  |  | 0 |
Total commercial lending |  | 198 |  |  | 19 |  |  | 0.04 |  |  | 18 |  |  | 7 |  | 0 |  |  | 0 |
Small-ticket commercial real estate |  | 1 |  |  | 0 |  |  | 0.00 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Total commercial banking |  | 199 |  |  | 19 |  |  | 0.04 |  |  | 18 |  |  | 7 |  | 0 |  |  | 0 |
Total |  | $ | 998 |  |  | 67 |  |  | 16.37 |  |  | 28 |  |  | 7 |  | 0 |  |  | $ | 1 |
|  | Total Loans Modified(1) |  | Year Ended December 31, 2018
| Reduced Interest Rate |  | Term Extension |  | Balance Reduction
(Dollars in millions) | % of TDR Activity(2) |  | Average Rate Reduction |  | % of TDR Activity(2) |  | Average Term Extension (Months) |  | % of TDR Activity(2) |  | Gross Balance Reduction
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  | $ | 412 |  |  | 100 | % |  | 15.93 | % |  | 0 | % |  | 0 |  | 0 | % |  | $ | 0 |
International card businesses |  | 184 |  |  | 100 |  |  | 26.96 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Total credit card |  | 596 |  |  | 100 |  |  | 19.34 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Auto(3) |  | 227 |  |  | 49 |  |  | 3.88 |  |  | 89 |  |  | 8 |  | 1 |  |  | 1 |
Home loan |  | 6 |  |  | 28 |  |  | 1.78 |  |  | 83 |  |  | 214 |  | 0 |  |  | 0 |
Retail banking |  | 8 |  |  | 16 |  |  | 10.92 |  |  | 43 |  |  | 12 |  | 0 |  |  | 0 |
Total consumer banking |  | 241 |  |  | 48 |  |  | 3.93 |  |  | 87 |  |  | 13 |  | 1 |  |  | 1 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 43 |  |  | 0 |  |  | 0.00 |  |  | 80 |  |  | 5 |  | 0 |  |  | 0 |
Commercial and industrial |  | 170 |  |  | 0 |  |  | 1.03 |  |  | 54 |  |  | 13 |  | 0 |  |  | 0 |
Total commercial lending |  | 213 |  |  | 0 |  |  | 1.03 |  |  | 60 |  |  | 11 |  | 0 |  |  | 0 |
Small-ticket commercial real estate |  | 3 |  |  | 0 |  |  | 0.00 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Total commercial banking |  | 216 |  |  | 0 |  |  | 1.03 |  |  | 59 |  |  | 11 |  | 0 |  |  | 0 |
Total |  | $ | 1,053 |  |  | 68 |  |  | 16.84 |  |  | 32 |  |  | 12 |  | 0 |  |  | $ | 1 |
|  | Total Loans Modified(1) |  | Year Ended December 31, 2017
| Reduced Interest Rate |  | Term Extension |  | Balance Reduction
(Dollars in millions) | % of TDR Activity(2) |  | Average Rate Reduction |  | % of TDR Activity(2) |  | Average Term Extension (Months) |  | % of TDR Activity(2) |  | Gross Balance Reduction
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  | $ | 406 |  |  | 100 | % |  | 14.50 | % |  | 0 | % |  | 0 |  | 0 | % |  | $ | 0 |
International card businesses |  | 169 |  |  | 100 |  |  | 26.51 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Total credit card |  | 575 |  |  | 100 |  |  | 18.02 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Auto(3) |  | 324 |  |  | 44 |  |  | 3.82 |  |  | 95 |  |  | 6 |  | 2 |  |  | 7 |
Home loan |  | 19 |  |  | 48 |  |  | 2.77 |  |  | 78 |  |  | 233 |  | 2 |  |  | 0 |
Retail banking |  | 13 |  |  | 22 |  |  | 5.77 |  |  | 73 |  |  | 10 |  | 0 |  |  | 0 |
Total consumer banking |  | 356 |  |  | 44 |  |  | 3.79 |  |  | 93 |  |  | 16 |  | 2 |  |  | 7 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 29 |  |  | 7 |  |  | 0.02 |  |  | 26 |  |  | 5 |  | 0 |  |  | 0 |
Commercial and industrial |  | 557 |  |  | 19 |  |  | 0.80 |  |  | 59 |  |  | 17 |  | 0 |  |  | 0 |
Total commercial lending |  | 586 |  |  | 18 |  |  | 0.79 |  |  | 57 |  |  | 16 |  | 0 |  |  | 0 |
Small-ticket commercial real estate |  | 3 |  |  | 0 |  |  | 0.00 |  |  | 4 |  |  | 0 |  | 0 |  |  | 0 |
Total commercial banking |  | 589 |  |  | 18 |  |  | 0.79 |  |  | 57 |  |  | 16 |  | 0 |  |  | 0 |
Total |  | $ | 1,520 |  |  | 55 |  |  | 13.19 |  |  | 44 |  |  | 16 |  | 0 |  |  | $ | 7 |
__________
(1) | Represents the recorded investment of total loans modified in TDRs at the end of the period in which they were modified. As not every modification type is included in the table above, the total percentage of TDR activity may not add up to 100%. Some loans may receive more than one type of concession as part of the modification.
(2) | Due to multiple concessions granted to some troubled borrowers, percentages may total more than 100% for certain loan types.
(3) | Includes certain TDRs that are recorded as other assets on our consolidated balance sheets.
Subsequent Defaults of Completed TDR Modifications The following table presents the type, number and recorded investment of loans modified in TDRs that experienced a default during the period and had completed a modification event in the twelve months prior to the default. A default occurs if the loan is either 90 days or more delinquent, has been charged off as of the end of the period presented or has been reclassified from accrual to nonaccrual status. Table 3.7: TDRs—Subsequent Defaults
|  | Year Ended December 31,
|  | 2019 |  | 2018 |  | 2017
(Dollars in millions) |  | Number of Contracts |  | Amount |  | Number of Contracts |  | Amount |  | Number of Contracts |  | Amount
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  | 47,086 |  |  | $ | 99 |  |  | 61,070 |  |  | $ | 126 |  |  | 55,121 |  |  | $ | 111 |
International card businesses |  | 69,470 |  |  | 110 |  |  | 61,014 |  |  | 106 |  |  | 51,641 |  |  | 93 |
Total credit card |  | 116,556 |  |  | 209 |  |  | 122,084 |  |  | 232 |  |  | 106,762 |  |  | 204 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |
Auto |  | 5,575 |  |  | 70 |  |  | 6,980 |  |  | 79 |  |  | 9,446 |  |  | 109 |
Home loan |  | 0 |  |  | 0 |  |  | 3 |  |  | 1 |  |  | 28 |  |  | 7 |
Retail banking |  | 24 |  |  | 2 |  |  | 26 |  |  | 2 |  |  | 41 |  |  | 4 |
Total consumer banking |  | 5,599 |  |  | 72 |  |  | 7,009 |  |  | 82 |  |  | 9,515 |  |  | 120 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 0 |  |  | 0 |  |  | 1 |  |  | 3 |  |  | 0 |  |  | 0 |
Commercial and industrial |  | 1 |  |  | 25 |  |  | 26 |  |  | 120 |  |  | 244 |  |  | 269 |
Total commercial lending |  | 1 |  |  | 25 |  |  | 27 |  |  | 123 |  |  | 244 |  |  | 269 |
Small-ticket commercial real estate |  | 0 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 2 |  |  | 1 |
Total commercial banking |  | 1 |  |  | 25 |  |  | 27 |  |  | 123 |  |  | 246 |  |  | 270 |
Total |  | 122,156 |  |  | $ | 306 |  |  | 129,120 |  |  | $ | 437 |  |  | 116,523 |  |  | $ | 594 |
Loans Pledged We pledged loan collateral of $14.6 billion and $15.8 billion to secure the majority of our FHLB borrowing capacity of $18.7 billion and $19.3 billion as of December 31, 2019 and 2018, respectively. We also pledged loan collateral of $6.7 billion and $9.2 billion to secure our Federal Reserve Discount Window borrowing capacity of $5.3 billion and $7.6 billion as of December 31, 2019 and 2018, respectively. In addition to loans pledged, we securitized a portion of our credit card and auto loans. See “Note 5—Variable Interest Entities and Securitizations” for additional information. Finance Charge and Fee Reserve We continue to accrue finance charges and fees on credit card loans until the account is charged off. Our methodology for estimating the uncollectible portion of billed finance charges and fees is consistent with the methodology we use to estimate the allowance for incurred principal losses on our credit card loan receivables. Total net revenue was reduced by $1.4 billion, $1.3 billion and $1.4 billion in 2019, 2018 and 2017, respectively, for the estimated uncollectible amount of billed finance charges and fees, and related losses. The finance charge and fee reserve, which is recorded as a contra asset on our consolidated balance sheets, totaled $462 million and $468 million as of December 31, 2019 and 2018, respectively. Loans Held for Sale Our total loans held for sale was $400 million and $1.2 billion as of December 31, 2019 and 2018, respectively. We originated for sale $9.0 billion and $8.7 billion of commercial multifamily real estate loans in 2019 and 2018, respectively, and $8.4 billion of conforming residential mortgage loans and commercial multifamily real estate loans in 2017. We retained servicing on all of multifamily real estate loans.

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- Definition The entire disclosure for claims held for amounts due a company, excluding disclosure for allowance for credit losses. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Also excludes disclosure for financing receivables. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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