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. 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.

Effective January 1, 2020, we adopted the CECL standard. Accordingly, our disclosures below reflect these adoption changes. Prior period presentation was not modified to conform to the current period presentation. See “Note 1—Summary of Significant Accounting Policies” for additional information. Amounts as of March 31, 2020, include the impacts of COVID-19 customer assistance programs where applicable.

Accrued interest receivable of $1.4 billion as of March 31, 2020 is not included in the tables in this note. The table below presents the composition and aging analysis of our loans held for investment portfolio as of March 31, 2020 and December 31, 2019. The delinquency aging includes all past due loans, both performing and nonperforming.

Table 3.1: Loan Portfolio Composition and Aging Analysis



	March 31, 2020
				Delinquent Loans
(Dollars in millions)	Current			30-59 Days			60-89 Days			> 90 Days			Total Delinquent Loans			Total Loans
Credit Card:
Domestic credit card	$	105,503		$	1,094		$	812		$	2,140		$	4,046		$	109,549
International card businesses	7,930			116			75			127			318			8,248
Total credit card	113,433			1,210			887			2,267			4,364			117,797
Consumer Banking:
Auto	57,799			2,275			1,000			290			3,565			61,364
Retail banking	2,618			29			8			14			51			2,669
Total consumer banking	60,417			2,304			1,008			304			3,616			64,033
Commercial Banking:
Commercial and multifamily real estate	32,242			53			62			16			131			32,373
Commercial and industrial	48,577			87			20			103			210			48,787
Total commercial banking	80,819			140			82			119			341			81,160
Total loans⁽¹⁾	$	254,669		$	3,654		$	1,977		$	2,690		$	8,321		$	262,990
% of Total loans	96.8		%	1.4		%	0.8		%	1.0		%	3.2		%	100.0		%



	December 31, 2019
				Delinquent Loans
(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		%

__________

The following table presents our loans held for investment that are 90 days or more past due that continue to accrue interest and loans that are classified as nonperforming as of March 31, 2020 and December 31, 2019. We also present nonperforming loans without an allowance as of March 31, 2020. Nonperforming loans generally include loans that have been placed on nonaccrual status.

Table 3.2: 90+ Day Delinquent Loans Accruing Interest and Nonperforming Loans



	March 31, 2020									December 31, 2019
(Dollars in millions)	> 90 Days and Accruing			Nonperforming Loans⁽¹⁾			Nonperforming Loans Without an Allowance			> 90 Days and Accruing			Nonperforming Loans
Credit Card:
Domestic credit card	$	2,140		N/A			$	0		$	2,277		N/A
International card businesses	121			$	24		0			130			$	25
Total credit card	2,261			24			0			2,407			25
Consumer Banking:
Auto	0			381			0			0			487
Retail banking	0			24			2			0			23
Total consumer banking	0			405			2			0			510
Commercial Banking:
Commercial and multifamily real estate	0			71			48			0			38
Commercial and industrial	0			423			117			0			410
Total commercial banking	0			494			165			0			448
Total	$	2,261		$	923		$	167		$	2,407		$	983
% of Total loans held for investment	0.9		%	0.4		%	0.1		%	0.9		%	0.4		%

__________

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 3.3: Credit Card Delinquency Status



	March 31, 2020
(Dollars in millions)	Revolving Loans		Revolving Loans Converted to Term		Total
Credit Card:
Domestic credit card:
Current	$	104,892	$	611	$	105,503
30-59 days	1,060		34		1,094
60-89 days	787		25		812
Greater than 90 days	2,107		33		2,140
Total domestic credit card	108,846		703		109,549

International card businesses:
Current	7,865		65		7,930
30-59 days	104		12		116
60-89 days	63		12		75
Greater than 90 days	112		15		127
Total international card businesses	8,144		104		8,248
Total credit card	$	116,990	$	807	$	117,797

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.

The table below presents our consumer banking portfolio of loans held for investment by credit quality indicator as of March 31, 2020 and December 31, 2019. We present our auto loan portfolio by FICO scores at origination and our retail banking loan portfolio by delinquency status, which includes all past due loans, both performing and nonperforming.



	March 31, 2020
	Term Loans by Vintage Year
(Dollars in millions)	2020		2019		2018		2017		2016		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total		December 31, 2019
Auto—At origination FICO scores:⁽¹⁾
Greater than 660	$	3,410	$	10,995	$	6,842	$	4,538	$	2,294	$	769	$	28,848	$	0	$	0	$	28,848	$	28,773
621-660	1,467		4,813		2,831		1,784		854		324		12,073		0		0		12,073		11,924
620 or below	2,649		8,118		4,581		2,955		1,493		647		20,443		0		0		20,443		19,665
Total auto	7,526		23,926		14,254		9,277		4,641		1,740		61,364		0		0		61,364		60,362

Retail banking—Delinquency status:
Current	68		232		252		257		211		655		1,675		935		8		2,618		2,658
30-59 days	0		4		0		1		1		2		8		21		0		29		24
60-89 days	0		0		0		2		0		1		3		5		0		8		8
Greater than 90 days	0		0		0		3		1		4		8		6		0		14		11
Total retail banking	68		236		252		263		213		662		1,694		967		8		2,669		2,701
Total consumer banking	$	7,594	$	24,162	$	14,506	$	9,540	$	4,854	$	2,402	$	63,058	$	967	$	8	$	64,033	$	63,063

__________

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.

The key credit quality indicator for our commercial loan portfolios is our internal risk ratings. 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:

We use our internal risk rating system for regulatory reporting, determining the frequency of credit exposure reviews, and evaluating and determining the allowance for credit 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 our commercial banking portfolio of loans held for investment by internal risk ratings as of March 31, 2020 and December 31, 2019. The internal risk rating status includes all past due loans, both performing and nonperforming.

Table 3.5: Commercial Banking Portfolio by Internal Risk Ratings



	March 31, 2020
	Term Loans by Vintage Year
(Dollars in millions)	2020		2019		2018		2017		2016		Prior		Total Term Loans		Revolving Loans		Revolving Loans Converted to Term		Total
Internal risk rating:⁽¹⁾
Commercial and multifamily real estate
Noncriticized	$	1,846	$	5,748	$	4,096	$	2,264	$	2,344	$	7,181	$	23,479	$	8,284	$	0	$	31,763
Criticized performing	0		55		9		91		161		223		539		0		0		539
Criticized nonperforming	0		0		1		9		1		60		71		0		0		71
Total commercial and multifamily real estate	1,846		5,803		4,106		2,364		2,506		7,464		24,089		8,284		0		32,373
Commercial and industrial
Noncriticized	2,712		11,031		5,085		3,290		2,098		4,149		28,365		17,504		82		45,951
Criticized performing	32		380		324		287		95		120		1,238		1,172		3		2,413
Criticized nonperforming	12		93		19		78		11		0		213		210		0		423
Total commercial and industrial	2,756		11,504		5,428		3,655		2,204		4,269		29,816		18,886		85		48,787
Total commercial banking	$	4,602	$	17,307	$	9,534	$	6,019	$	4,710	$	11,733	$	53,905	$	27,170	$	85	$	81,160



	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	%

__________

In response to the COVID-19 pandemic, the Federal Banking Agencies issued an interagency statement that provides banking organizations with additional guidance and relief on accounting for certain customer concessions related to COVID-19. Specifically, TDR accounting relief is available for short-term COVID-19-related modifications of loans that were not more than 30 days past due where concessions do not extend beyond six months. We assessed all loan modifications introduced to borrowers as of March 31, 2020 in response to COVID-19 and followed guidance that such eligible loan modifications made on a temporary and good faith basis in response to COVID-19 are not considered TDRs.

Total recorded TDRs were $1.7 billion as of both March 31, 2020 and December 31, 2019. TDRs classified as performing in our credit card and consumer banking loan portfolios totaled $1.2 billion and $1.1 billion as of March 31, 2020 and December 31, 2019, respectively. TDRs classified as performing in our commercial banking loan portfolio totaled $249 million and $224 million as of March 31, 2020 and December 31, 2019, respectively. Commitments to lend additional funds on loans modified in TDRs totaled $337 million and $178 million as of March 31, 2020 and December 31, 2019, 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 three months ended March 31, 2020 and 2019.



	Total Loans Modified⁽¹⁾		Three Months Ended March 31, 2020
			Reduced Interest Rate				Term Extension
(Dollars in millions)			% of TDR Activity⁽²⁾		Average Rate Reduction		% of TDR Activity⁽²⁾		Average Term Extension (Months)
Credit Card:
Domestic credit card	$	89	100	%	16.45	%	0	%	0
International card businesses	51		100		27.32		0		0
Total credit card	140		100		20.41		0		0
Consumer Banking:
Auto	123		20		3.34		94		5
Retail banking	3		1		12.50		0		4
Total consumer banking	126		20		3.36		92		5
Commercial Banking:
Commercial and multifamily real estate	19		0		0.00		100		12
Commercial and industrial	7		0		0.00		0		0
Total commercial banking	26		0		0.00		73		12
Total	$	292	56		17.87		46		6



	Total Loans Modified⁽¹⁾		Three Months Ended March 31, 2019
			Reduced Interest Rate				Term Extension
(Dollars in millions)			% of TDR Activity⁽²⁾		Average Rate Reduction		% of TDR Activity⁽²⁾		Average Term Extension (Months)
Credit Card:
Domestic credit card	$	98	100	%	16.42	%	0	%	0
International card businesses	47		100		27.59		0		0
Total credit card	145		100		20.04		0		0
Consumer Banking:
Auto	72		37		3.83		91		7
Retail banking	1		15		13.01		85		6
Total consumer banking	73		37		3.88		91		7
Commercial Banking:
Commercial and multifamily real estate	34		100		0.00		0		0
Commercial and industrial	21		0		0.00		0		0
Total commercial lending	55		62		0.00		0		0
Small-ticket commercial real estate	0		0		0.00		0		0
Total commercial banking	55		61		0.00		0		0
Total	$	273	75		14.64		24		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



	Three Months Ended March 31,
	2020			2019
(Dollars in millions)	Number of Contracts	Amount		Number of Contracts	Amount
Credit Card:
Domestic credit card	10,886	$	22	14,027	$	29
International card businesses	17,857	26		16,706	28
Total credit card	28,743	48		30,733	57
Consumer Banking:
Auto	1,275	16		1,105	13
Retail banking	1	0		8	0
Total consumer banking	1,276	16		1,113	13
Commercial Banking:
Commercial and industrial	6	28		0	0
Total commercial banking	6	28		0	0
Total	30,025	$	92	31,846	$	70

We pledged loan collateral of $15.5 billion and $14.6 billion to secure the majority of our FHLB borrowing capacity of $18.9 billion and $18.7 billion as of March 31, 2020 and December 31, 2019, respectively. We also pledged loan collateral of $6.2 billion and $6.7 billion to secure our Federal Reserve Discount Window borrowing capacity of $4.9 billion and $5.3 billion as of March 31, 2020 and December 31, 2019, 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.