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		%

__________

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		%

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.

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.

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:

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.

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	%

__________

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

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.

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.



	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

__________

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

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.

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.

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.