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Loans | 12 Months Ended
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Dec. 31, 2021
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. 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. Accrued interest receivable of $1.2 billion as of both December 31, 2021 and 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 December 31, 2021 and 2020. The delinquency aging includes all past due loans, both performing and nonperforming. Table 3.1: Loan Portfolio Composition and Aging Analysis
|  | December 31, 2021
|  |  |  | Delinquent Loans |  |
(Dollars in millions) |  | Current |  | 30-59 Days |  | 60-89 Days |  | > 90 Days |  | Total Delinquent Loans |  | Total Loans
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  | $ | 106,312 |  |  | $ | 773 |  |  | $ | 528 |  |  | $ | 1,110 |  |  | $ | 2,411 |  |  | $ | 108,723 |
International card businesses |  | 5,836 |  |  | 77 |  |  | 50 |  |  | 86 |  |  | 213 |  |  | 6,049 |
Total credit card |  | 112,148 |  |  | 850 |  |  | 578 |  |  | 1,196 |  |  | 2,624 |  |  | 114,772 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |
Auto |  | 72,221 |  |  | 2,385 |  |  | 933 |  |  | 240 |  |  | 3,558 |  |  | 75,779 |
Retail banking |  | 1,807 |  |  | 35 |  |  | 7 |  |  | 18 |  |  | 60 |  |  | 1,867 |
Total consumer banking |  | 74,028 |  |  | 2,420 |  |  | 940 |  |  | 258 |  |  | 3,618 |  |  | 77,646 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 35,100 |  |  | 92 |  |  | 35 |  |  | 35 |  |  | 162 |  |  | 35,262 |
Commercial and industrial |  | 49,379 |  |  | 139 |  |  | 103 |  |  | 39 |  |  | 281 |  |  | 49,660 |
Total commercial banking |  | 84,479 |  |  | 231 |  |  | 138 |  |  | 74 |  |  | 443 |  |  | 84,922 |
Total loans(1) |  | $ | 270,655 |  |  | $ | 3,501 |  |  | $ | 1,656 |  |  | $ | 1,528 |  |  | $ | 6,685 |  |  | $ | 277,340 |
% of Total loans |  | 97.59 | % |  | 1.26 | % |  | 0.60 | % |  | 0.55 | % |  | 2.41 | % |  | 100.00 | %
|  | December 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 |  | $ | 96,116 |  |  | $ | 755 |  |  | $ | 464 |  |  | $ | 1,169 |  |  | $ | 2,388 |  |  | $ | 98,504 |
International card businesses |  | 8,218 |  |  | 90 |  |  | 58 |  |  | 86 |  |  | 234 |  |  | 8,452 |
Total credit card |  | 104,334 |  |  | 845 |  |  | 522 |  |  | 1,255 |  |  | 2,622 |  |  | 106,956 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |
Auto |  | 62,381 |  |  | 2,252 |  |  | 907 |  |  | 222 |  |  | 3,381 |  |  | 65,762 |
Retail banking |  | 3,064 |  |  | 28 |  |  | 19 |  |  | 15 |  |  | 62 |  |  | 3,126 |
Total consumer banking |  | 65,445 |  |  | 2,280 |  |  | 926 |  |  | 237 |  |  | 3,443 |  |  | 68,888 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 30,340 |  |  | 136 |  |  | 22 |  |  | 183 |  |  | 341 |  |  | 30,681 |
Commercial and industrial |  | 44,941 |  |  | 69 |  |  | 15 |  |  | 74 |  |  | 158 |  |  | 45,099 |
Total commercial banking |  | 75,281 |  |  | 205 |  |  | 37 |  |  | 257 |  |  | 499 |  |  | 75,780 |
Total loans(1) |  | $ | 245,060 |  |  | $ | 3,330 |  |  | $ | 1,485 |  |  | $ | 1,749 |  |  | $ | 6,564 |  |  | $ | 251,624 |
% of Total loans |  | 97.39 | % |  | 1.32 | % |  | 0.59 | % |  | 0.70 | % |  | 2.61 | % |  | 100.00 | %
__________ (1)Loans include unamortized premiums and discounts, and unamortized deferred fees and costs totaling $1.4 billion and $1.1 billion as of December 31, 2021 and 2020, respectively. The following table presents our loans held for investment that are 90 days or more past due that continue to accrue interest, loans that are classified as nonperforming and loans that are classified as nonperforming without an allowance as of December 31, 2021 and 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
|  | December 31, 2021 |  | December 31, 2020
(Dollars in millions) |  | > 90 Days and Accruing |  | Nonperforming Loans(1) |  | Nonperforming Loans Without an Allowance |  | > 90 Days and Accruing |  | Nonperforming Loans(1) |  | Nonperforming Loans Without an Allowance
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  | $ | 1,110 |  |  | N/A |  | $ | 0 |  |  | $ | 1,169 |  |  | N/A |  | $ | 0 |
International card businesses |  | 82 |  |  | $ | 10 |  |  | 0 |  |  | 82 |  |  | $ | 21 |  |  | 0 |
Total credit card |  | 1,192 |  |  | 10 |  |  | 0 |  |  | 1,251 |  |  | 21 |  |  | 0 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |
Auto |  | 0 |  |  | 344 |  |  | 0 |  |  | 0 |  |  | 294 |  |  | 0 |
Retail banking |  | 0 |  |  | 47 |  |  | 4 |  |  | 0 |  |  | 30 |  |  | 0 |
Total consumer banking |  | 0 |  |  | 391 |  |  | 4 |  |  | 0 |  |  | 324 |  |  | 0 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 3 |  |  | 383 |  |  | 268 |  |  | 51 |  |  | 200 |  |  | 184 |
Commercial and industrial |  | 0 |  |  | 316 |  |  | 257 |  |  | 0 |  |  | 450 |  |  | 265 |
Total commercial banking |  | 3 |  |  | 699 |  |  | 525 |  |  | 51 |  |  | 650 |  |  | 449 |
Total |  | $ | 1,195 |  |  | $ | 1,100 |  |  | $ | 529 |  |  | $ | 1,302 |  |  | $ | 995 |  |  | $ | 449 |
% of Total loans held for investment |  | 0.43 | % |  | 0.40 | % |  | 0.19 | % |  | 0.52 | % |  | 0.40 | % |  | 0.18 | %
__________ (1)We recognized interest income for loans classified as nonperforming of $43 million and $39 million for the years ended December 31, 2021, and 2020 respectively. 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 and the U.S. Real Gross Domestic Product (“GDP”) Rate, 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. The table below presents our credit card portfolio by delinquency status as of December 31, 2021 and 2020. Table 3.3: Credit Card Delinquency Status
|  |  |  | December 31, 2021 |  | December 31, 2020
(Dollars in millions) |  |  |  | Revolving Loans |  | Revolving Loans Converted to Term |  | Total |  | Revolving Loans |  | Revolving Loans Converted to Term |  | Total
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  | $ | 105,985 |  |  | $ | 327 |  |  | $ | 106,312 |  |  | $ | 95,629 |  |  | $ | 487 |  |  | $ | 96,116 |
30-59 days |  |  |  | 760 |  |  | 13 |  |  | 773 |  |  | 734 |  |  | 21 |  |  | 755 |
60-89 days |  |  |  | 519 |  |  | 9 |  |  | 528 |  |  | 451 |  |  | 13 |  |  | 464 |
Greater than 90 days |  |  |  | 1,100 |  |  | 10 |  |  | 1,110 |  |  | 1,155 |  |  | 14 |  |  | 1,169 |
Total domestic credit card |  |  |  | 108,364 |  |  | 359 |  |  | 108,723 |  |  | 97,969 |  |  | 535 |  |  | 98,504 |
International card businesses: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  |  |  | 5,795 |  |  | 41 |  |  | 5,836 |  |  | 8,152 |  |  | 66 |  |  | 8,218 |
30-59 days |  |  |  | 73 |  |  | 4 |  |  | 77 |  |  | 79 |  |  | 11 |  |  | 90 |
60-89 days |  |  |  | 47 |  |  | 3 |  |  | 50 |  |  | 47 |  |  | 11 |  |  | 58 |
Greater than 90 days |  |  |  | 82 |  |  | 4 |  |  | 86 |  |  | 76 |  |  | 10 |  |  | 86 |
Total international card businesses |  |  |  | 5,997 |  |  | 52 |  |  | 6,049 |  |  | 8,354 |  |  | 98 |  |  | 8,452 |
Total credit card |  |  |  | $ | 114,361 |  |  | $ | 411 |  |  | $ | 114,772 |  |  | $ | 106,323 |  |  | $ | 633 |  |  | $ | 106,956 |
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 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 December 31, 2021 and 2020. 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. Table 3.4: Consumer Banking Portfolio by Credit Quality Indicator
|  | December 31, 2021 |  |
|  | Term Loans by Vintage Year |  |  |  |  |  |  |  |
(Dollars in millions) |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Total Term Loans |  | Revolving Loans |  | Revolving Loans Converted to Term |  | Total |  |
Auto—At origination FICO scores:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Greater than 660 |  | $ | 20,758 |  |  | $ | 8,630 |  |  | $ | 4,739 |  |  | $ | 2,394 |  |  | $ | 1,153 |  |  | $ | 301 |  |  | $ | 37,975 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 37,975 |  |  |
621-660 |  | 7,456 |  |  | 3,721 |  |  | 2,109 |  |  | 1,084 |  |  | 537 |  |  | 157 |  |  | 15,064 |  |  | 0 |  |  | 0 |  |  | 15,064 |  |  |
620 or below |  | 9,522 |  |  | 6,336 |  |  | 3,767 |  |  | 1,840 |  |  | 949 |  |  | 326 |  |  | 22,740 |  |  | 0 |  |  | 0 |  |  | 22,740 |  |  |
Total auto |  | 37,736 |  |  | 18,687 |  |  | 10,615 |  |  | 5,318 |  |  | 2,639 |  |  | 784 |  |  | 75,779 |  |  | 0 |  |  | 0 |  |  | 75,779 |  |  |
Retail banking—Delinquency status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | 285 |  |  | 171 |  |  | 172 |  |  | 161 |  |  | 176 |  |  | 491 |  |  | 1,456 |  |  | 345 |  |  | 6 |  |  | 1,807 |  |  |
30-59 days |  | 0 |  |  | 2 |  |  | 2 |  |  | 7 |  |  | 0 |  |  | 1 |  |  | 12 |  |  | 23 |  |  | 0 |  |  | 35 |  |  |
60-89 days |  | 0 |  |  | 4 |  |  | 0 |  |  | 0 |  |  | 0 |  |  | 2 |  |  | 6 |  |  | 1 |  |  | 0 |  |  | 7 |  |  |
Greater than 90 days |  | 0 |  |  | 1 |  |  | 0 |  |  | 1 |  |  | 1 |  |  | 9 |  |  | 12 |  |  | 4 |  |  | 2 |  |  | 18 |  |  |
Total retail banking(2) |  | 285 |  |  | 178 |  |  | 174 |  |  | 169 |  |  | 177 |  |  | 503 |  |  | 1,486 |  |  | 373 |  |  | 8 |  |  | 1,867 |  |  |
Total consumer banking |  | $ | 38,021 |  |  | $ | 18,865 |  |  | $ | 10,789 |  |  | $ | 5,487 |  |  | $ | 2,816 |  |  | $ | 1,287 |  |  | $ | 77,265 |  |  | $ | 373 |  |  | $ | 8 |  |  | $ | 77,646 |  |  |
|  | December 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
Auto—At origination FICO scores:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Greater than 660 |  | $ | 13,352 |  |  | $ | 8,091 |  |  | $ | 4,675 |  |  | $ | 2,810 |  |  | $ | 1,168 |  |  | $ | 203 |  |  | $ | 30,299 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 30,299 |
621-660 |  | 5,781 |  |  | 3,631 |  |  | 2,003 |  |  | 1,172 |  |  | 488 |  |  | 109 |  |  | 13,184 |  |  | 0 |  |  | 0 |  |  | 13,184 |
620 or below |  | 9,550 |  |  | 6,298 |  |  | 3,317 |  |  | 1,985 |  |  | 886 |  |  | 243 |  |  | 22,279 |  |  | 0 |  |  | 0 |  |  | 22,279 |
Total auto |  | 28,683 |  |  | 18,020 |  |  | 9,995 |  |  | 5,967 |  |  | 2,542 |  |  | 555 |  |  | 65,762 |  |  | 0 |  |  | 0 |  |  | 65,762 |
Retail banking—Delinquency status: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current |  | 1,041 |  |  | 233 |  |  | 206 |  |  | 222 |  |  | 167 |  |  | 537 |  |  | 2,406 |  |  | 651 |  |  | 7 |  |  | 3,064 |
30-59 days |  | 0 |  |  | 0 |  |  | 7 |  |  | 1 |  |  | 2 |  |  | 2 |  |  | 12 |  |  | 15 |  |  | 1 |  |  | 28 |
60-89 days |  | 0 |  |  | 0 |  |  | 1 |  |  | 0 |  |  | 5 |  |  | 4 |  |  | 10 |  |  | 8 |  |  | 1 |  |  | 19 |
Greater than 90 days |  | 0 |  |  | 0 |  |  | 0 |  |  | 1 |  |  | 1 |  |  | 4 |  |  | 6 |  |  | 9 |  |  | 0 |  |  | 15 |
Total retail banking(2) |  | 1,041 |  |  | 233 |  |  | 214 |  |  | 224 |  |  | 175 |  |  | 547 |  |  | 2,434 |  |  | 683 |  |  | 9 |  |  | 3,126 |
Total consumer banking |  | $ | 29,724 |  |  | $ | 18,253 |  |  | $ | 10,209 |  |  | $ | 6,191 |  |  | $ | 2,717 |  |  | $ | 1,102 |  |  | $ | 68,196 |  |  | $ | 683 |  |  | $ | 9 |  |  | $ | 68,888 |
__________ (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. (2)Includes PPP loans of $232 million and $919 million as of December 31, 2021 and 2020, respectively. Commercial Banking 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: •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 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 December 31, 2021 and 2020. The internal risk rating status includes all past due loans, both performing and nonperforming. Table 3.5: Commercial Banking Portfolio by Internal Risk Ratings
|  | December 31, 2021
|  | Term Loans by Vintage Year |  |  |  |  |  |
(Dollars in millions) |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | 2017 |  | Prior |  | Total Term Loans |  | Revolving Loans |  | Revolving Loans Converted to Term |  | Total
Internal risk rating:(1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncriticized |  | $ | 6,590 |  |  | $ | 2,924 |  |  | $ | 3,393 |  |  | $ | 2,401 |  |  | $ | 793 |  |  | $ | 3,538 |  |  | $ | 19,639 |  |  | $ | 12,286 |  |  | $ | 0 |  |  | $ | 31,925 |
Criticized performing |  | 248 |  |  | 195 |  |  | 329 |  |  | 317 |  |  | 261 |  |  | 1,478 |  |  | 2,828 |  |  | 101 |  |  | 25 |  |  | 2,954 |
Criticized nonperforming |  | 0 |  |  | 0 |  |  | 88 |  |  | 20 |  |  | 9 |  |  | 266 |  |  | 383 |  |  | 0 |  |  | 0 |  |  | 383 |
Total commercial and multifamily real estate |  | 6,838 |  |  | 3,119 |  |  | 3,810 |  |  | 2,738 |  |  | 1,063 |  |  | 5,282 |  |  | 22,850 |  |  | 12,387 |  |  | 25 |  |  | 35,262 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncriticized |  | 12,662 |  |  | 7,039 |  |  | 5,506 |  |  | 2,750 |  |  | 1,730 |  |  | 3,033 |  |  | 32,720 |  |  | 14,310 |  |  | 59 |  |  | 47,089 |
Criticized performing |  | 279 |  |  | 188 |  |  | 838 |  |  | 207 |  |  | 120 |  |  | 167 |  |  | 1,799 |  |  | 456 |  |  | 0 |  |  | 2,255 |
Criticized nonperforming |  | 32 |  |  | 52 |  |  | 85 |  |  | 93 |  |  | 6 |  |  | 10 |  |  | 278 |  |  | 38 |  |  | 0 |  |  | 316 |
Total commercial and industrial |  | 12,973 |  |  | 7,279 |  |  | 6,429 |  |  | 3,050 |  |  | 1,856 |  |  | 3,210 |  |  | 34,797 |  |  | 14,804 |  |  | 59 |  |  | 49,660 |
Total commercial banking(2) |  | $ | 19,811 |  |  | $ | 10,398 |  |  | $ | 10,239 |  |  | $ | 5,788 |  |  | $ | 2,919 |  |  | $ | 8,492 |  |  | $ | 57,647 |  |  | $ | 27,191 |  |  | $ | 84 |  |  | $ | 84,922 |
|  | December 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 |  | $ | 3,791 |  |  | $ | 4,932 |  |  | $ | 3,232 |  |  | $ | 1,437 |  |  | $ | 1,649 |  |  | $ | 4,904 |  |  | $ | 19,945 |  |  | $ | 7,114 |  |  | $ | 0 |  |  | $ | 27,059 |
Criticized performing |  | 320 |  |  | 446 |  |  | 515 |  |  | 355 |  |  | 391 |  |  | 1,258 |  |  | 3,285 |  |  | 112 |  |  | 25 |  |  | 3,422 |
Criticized nonperforming |  | 0 |  |  | 11 |  |  | 30 |  |  | 6 |  |  | 3 |  |  | 150 |  |  | 200 |  |  | 0 |  |  | 0 |  |  | 200 |
Total commercial and multifamily real estate |  | 4,111 |  |  | 5,389 |  |  | 3,777 |  |  | 1,798 |  |  | 2,043 |  |  | 6,312 |  |  | 23,430 |  |  | 7,226 |  |  | 25 |  |  | 30,681 |
Commercial and industrial |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncriticized |  | 9,761 |  |  | 7,890 |  |  | 4,043 |  |  | 2,717 |  |  | 1,832 |  |  | 3,034 |  |  | 29,277 |  |  | 11,548 |  |  | 80 |  |  | 40,905 |
Criticized performing |  | 316 |  |  | 794 |  |  | 521 |  |  | 252 |  |  | 106 |  |  | 215 |  |  | 2,204 |  |  | 1,498 |  |  | 42 |  |  | 3,744 |
Criticized nonperforming |  | 74 |  |  | 108 |  |  | 25 |  |  | 51 |  |  | 9 |  |  | 0 |  |  | 267 |  |  | 183 |  |  | 0 |  |  | 450 |
Total commercial and industrial |  | 10,151 |  |  | 8,792 |  |  | 4,589 |  |  | 3,020 |  |  | 1,947 |  |  | 3,249 |  |  | 31,748 |  |  | 13,229 |  |  | 122 |  |  | 45,099 |
Total commercial banking(2) |  | $ | 14,262 |  |  | $ | 14,181 |  |  | $ | 8,366 |  |  | $ | 4,818 |  |  | $ | 3,990 |  |  | $ | 9,561 |  |  | $ | 55,178 |  |  | $ | 20,455 |  |  | $ | 147 |  |  | $ | 75,780 |
__________ (1)Criticized exposures correspond to the “Special Mention,” “Substandard” and “Doubtful” asset categories defined by bank regulatory authorities. (2)Includes PPP loans of $102 million and $238 million as of December 31, 2021 and 2020, respectively. Troubled Debt Restructurings Additional guidance issued by the Federal Banking Agencies and contained in the Coronavirus Aid, Relief, and Economic Security Act provided banking organizations with troubled debt restructurings (“TDRs”) relief for modifications of current borrowers impacted by the COVID-19 pandemic. In adherence with the guidance, we assessed all loan modifications introduced to current borrowers in response to the COVID-19 pandemic, that would have been designated as TDRs under our existing policies, and followed guidance that any such eligible loan modifications made on a temporary and good faith basis are not considered TDRs. We consider the impact of all loan modifications, including those classified as TDRs and those offered in response to the COVID-19 pandemic, when estimating the credit quality of our loan portfolio and establishing allowance levels. For our Commercial Banking customers, enrollment in a customer assistance program is also considered in the assignment of an internal risk rating. Total recorded TDRs were $1.6 billion and $2.1 billion as of December 31, 2021 and 2020, respectively. TDRs classified as performing in our credit card and consumer banking loan portfolios totaled $1.1 billion and $1.3 billion as of December 31, 2021 and 2020, respectively. TDRs classified as performing in our commercial banking loan portfolio totaled $192 million and $442 million as of December 31, 2021 and 2020, respectively. Commitments to lend additional funds on loans modified in TDRs totaled $168 million and $173 million as of December 31, 2021 and 2020, 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, amortized cost amounts and financial effects of loans modified in TDRs during the years ended December 31, 2021, 2020 and 2019. Table 3.6: Troubled Debt Restructurings
|  |  |  | Year Ended December 31, 2021
|  |  |  | Reduced Interest Rate |  | Term Extension |  | Balance Reduction
(Dollars in millions) |  | Total Loans Modified(1) |  | % 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 |  | $ | 154 |  |  | 100 | % |  | 15.90 | % |  | 0 | % |  | 0 |  | 0 | % |  | $ | 0 |
International card businesses |  | 123 |  |  | 100 |  |  | 27.70 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Total credit card |  | 277 |  |  | 100 |  |  | 21.15 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Auto |  | 371 |  |  | 43 |  |  | 8.72 |  |  | 93 |  |  | 4 |  | 0 |  |  | 1 |
Retail banking |  | 3 |  |  | 13 |  |  | 2.94 |  |  | 30 |  |  | 42 |  | 0 |  |  | 0 |
Total consumer banking |  | 374 |  |  | 42 |  |  | 8.70 |  |  | 93 |  |  | 4 |  | 0 |  |  | 1 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 49 |  |  | 21 |  |  | 1.19 |  |  | 85 |  |  | 11 |  | 0 |  |  | 0 |
Commercial and industrial |  | 112 |  |  | 0 |  |  | 0.00 |  |  | 30 |  |  | 6 |  | 0 |  |  | 0 |
Total commercial banking |  | 161 |  |  | 6 |  |  | 1.19 |  |  | 46 |  |  | 9 |  | 0 |  |  | 0 |
Total |  | $ | 812 |  |  | 55 |  |  | 16.26 |  |  | 52 |  |  | 5 |  | 0 |  |  | $ | 1 |
|  |  |  | Year Ended December 31, 2020
|  |  |  | Reduced Interest Rate |  | Term Extension |  | Balance Reduction
(Dollars in millions) |  | Total Loans Modified(1) |  | % 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 |  | $ | 243 |  |  | 100 | % |  | 15.94 | % |  | 0 | % |  | 0 |  | 0 | % |  | $ | 0 |
International card businesses |  | 168 |  |  | 100 |  |  | 27.38 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Total credit card |  | 411 |  |  | 100 |  |  | 20.61 |  |  | 0 |  |  | 0 |  | 0 |  |  | 0 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Auto |  | 536 |  |  | 11 |  |  | 5.68 |  |  | 95 |  |  | 3 |  | 0 |  |  | 1 |
Retail banking |  | 5 |  |  | 11 |  |  | 10.86 |  |  | 20 |  |  | 8 |  | 0 |  |  | 0 |
Total consumer banking |  | 541 |  |  | 11 |  |  | 5.73 |  |  | 94 |  |  | 3 |  | 0 |  |  | 1 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  | 98 |  |  | 0 |  |  | 0.00 |  |  | 86 |  |  | 5 |  | 0 |  |  | 0 |
Commercial and industrial |  | 439 |  |  | 4 |  |  | 0.14 |  |  | 52 |  |  | 21 |  | 4 |  |  | 7 |
Total commercial banking |  | 537 |  |  | 3 |  |  | 0.14 |  |  | 58 |  |  | 17 |  | 3 |  |  | 7 |
Total |  | $ | 1,489 |  |  | 33 |  |  | 18.06 |  |  | 55 |  |  | 8 |  | 1 |  |  | $ | 8 |
|  |  |  | Year Ended December 31, 2019
|  |  |  | Reduced Interest Rate |  | Term Extension |  | Balance Reduction
(Dollars in millions) |  | Total Loans Modified(1) |  | % 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 |
__________ (1)Represents the amortized cost 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. Subsequent Defaults of Completed TDR Modifications The following table presents the type, number and amortized cost 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,
|  |  |  |  |  | 2021 |  | 2020 |  | 2019
(Dollars in millions) |  |  |  |  |  |  |  |  |  | Number of Contracts |  | Amount |  | Number of Contracts |  | Amount |  | Number of Contracts |  | Amount
Credit Card: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Domestic credit card |  |  |  |  |  |  |  |  |  | 18,694 |  |  | $ | 35 |  |  | 32,639 |  |  | $ | 69 |  |  | 47,086 |  |  | $ | 99 |
International card businesses |  |  |  |  |  |  |  |  |  | 58,914 |  |  | 87 |  |  | 58,363 |  |  | 87 |  |  | 69,470 |  |  | 110 |
Total credit card |  |  |  |  |  |  |  |  |  | 77,608 |  |  | 122 |  |  | 91,002 |  |  | 156 |  |  | 116,556 |  |  | 209 |
Consumer Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Auto |  |  |  |  |  |  |  |  |  | 8,847 |  |  | 136 |  |  | 5,877 |  |  | 77 |  |  | 5,575 |  |  | 70 |
Retail banking |  |  |  |  |  |  |  |  |  | 9 |  |  | 0 |  |  | 10 |  |  | 1 |  |  | 24 |  |  | 2 |
Total consumer banking |  |  |  |  |  |  |  |  |  | 8,856 |  |  | 136 |  |  | 5,887 |  |  | 78 |  |  | 5,599 |  |  | 72 |
Commercial Banking: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and multifamily real estate |  |  |  |  |  |  |  |  |  | 1 |  |  | 50 |  |  | 1 |  |  | 50 |  |  | 0 |  |  | 0 |
Commercial and industrial |  |  |  |  |  |  |  |  |  | 7 |  |  | 120 |  |  | 15 |  |  | 130 |  |  | 1 |  |  | 25 |
Total commercial banking |  |  |  |  |  |  |  |  |  | 8 |  |  | 170 |  |  | 16 |  |  | 180 |  |  | 1 |  |  | 25 |
Total |  |  |  |  |  |  |  |  |  | 86,472 |  |  | $ | 428 |  |  | 96,905 |  |  | $ | 414 |  |  | 122,156 |  |  | $ | 306 |
Loans Pledged In addition to our investment securities, we pledged loan collateral of $10.3 billion and $14.1 billion to secure our FHLB borrowing capacity of $19.7 billion and $19.6 billion as of December 31, 2021 and 2020, respectively. We also pledged loan collateral of $26.5 billion and $25.5 billion to secure our Federal Reserve Discount Window borrowing capacity of $19.6 billion and $20.0 billion as of December 31, 2021 and 2020, respectively. In addition to loans pledged, we have securitized a portion of our credit card and auto loan portfolios. See “Note 5—Variable Interest Entities and Securitizations” for additional information. Loans Held for Sale Our total loans held for sale was $5.9 billion and $2.7 billion as of December 31, 2021 and 2020, respectively. We originated for sale $9.1 billion, $10.0 billion and $9.0 billion of commercial multifamily real estate loans in 2021, 2020 and 2019, respectively, and retained servicing rights upon the sale of these loans. Revolving Loans Converted to Term Loans For the years ended December 31, 2021 and 2020, we converted $223 million and $602 million of revolving loans to term loans, respectively, primarily in our domestic credit card and commercial banking loan portfolios.

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