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Loans and Related Allowance for Credit Losses | 12 Months Ended
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Dec. 31, 2023
Asset Quality [Abstract] |
Loans and Related Allowance for Credit Losses | LOANS A ND R ELATED A LLOWANCE F OR C REDIT L OSSES Loan Portfolio Our loan portfolio consists of two portfolio segments – Commercial and Consumer. Each of these segments comprises multiple loan classes. Classes are characterized by similarities in risk attributes and the manner in which we monitor and assess credit risk.
Commercial |  | Consumer
• Commercial and industrial |  | • Residential real estate
• Commercial real estate |  | • Home equity
• Equipment lease financing |  | • Automobile
|  | • Credit card
|  | • Education
|  | • Other consumer
See Note 1 Accounting Policies for additional information on our loan related policies. Credit Quality We closely monitor economic conditions and loan performance trends to manage and evaluate our exposure to credit risk within the loan portfolio based on our defined loan classes. In doing so, we use several credit quality indicators, including trends in delinquency rates, nonperforming status, analysis of PD and LGD ratings, updated credit scores and originated and updated LTV ratios. We manage credit risk based on the risk profile of the borrower, repayment sources, underlying collateral and other support given current events, economic conditions and expectations. We refine our practices to meet the changing environment, such as inflation levels, industry specific risks, interest rate levels, the level of consumer savings and deposit balances, and structural and secular changes fostered by the pandemic. To mitigate losses and enhance customer support, we offer loan modifications and collection programs to assist our customers. Table 40 presents the composition and delinquency status of our loan portfolio at December 31, 2023 and December 31, 2022. Loan delinquencies include government insured or guaranteed loans and loans accounted for under the fair value option. Table 40: Analysis of Loan Portfolio (a) (b) (c)
| Accruing |  |  |  |  |
Dollars in millions | Current or Less Than 30 Days Past Due | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Total Past Due (d) |  | Nonperforming Loans | Fair Value Option Nonaccrual Loans (e) | Total Loans (f) (g) |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 176,796 |  | $ | 104 |  | $ | 45 |  | $ | 76 |  |  | $ | 225 |  |  | $ | 559 |  |  | $ | 177,580 |  |
Commercial real estate | 34,685 |  | 7 |  |  |  | 9 |  |  | 16 |  |  | 735 |  |  | 35,436 |  |
Equipment lease financing | 6,480 |  | 41 |  | 8 |  |  |  | 49 |  |  | 13 |  |  | 6,542 |  |
Total commercial | 217,961 |  | 152 |  | 53 |  | 85 |  |  | 290 |  |  | 1,307 |  |  | 219,558 |  |
Consumer |  |  |  |  |  |  |  |  |  |  |
Residential real estate | 46,159 |  | 282 |  | 101 |  | 192 |  |  | 575 |  | (d) | 294 |  | $ | 516 |  | 47,544 |  |
Home equity | 25,533 |  | 63 |  | 27 |  |  |  | 90 |  |  | 458 |  | 69 |  | 26,150 |  |
Automobile | 14,638 |  | 91 |  | 20 |  | 7 |  |  | 118 |  |  | 104 |  |  | 14,860 |  |
Credit card | 6,991 |  | 54 |  | 39 |  | 86 |  |  | 179 |  |  | 10 |  |  | 7,180 |  |
Education | 1,850 |  | 27 |  | 19 |  | 49 |  |  | 95 |  | (d) |  |  | 1,945 |  |
Other consumer | 4,227 |  | 16 |  | 11 |  | 10 |  |  | 37 |  |  | 7 |  |  | 4,271 |  |
Total consumer | 99,398 |  | 533 |  | 217 |  | 344 |  |  | 1,094 |  |  | 873 |  | 585 |  | 101,950 |  |
Total | $ | 317,359 |  | $ | 685 |  | $ | 270 |  | $ | 429 |  |  | $ | 1,384 |  |  | $ | 2,180 |  | $ | 585 |  | $ | 321,508 |  |
Percentage of total loans | 98.71 | % | 0.21 | % | 0.08 | % | 0.13 | % |  | 0.43 | % |  | 0.68 | % | 0.18 | % | 100.00 | % |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 181,223 |  | $ | 169 |  | $ | 27 |  | $ | 137 |  |  | $ | 333 |  |  | $ | 663 |  |  | $ | 182,219 |  |
Commercial real estate | 36,104 |  | 19 |  | 4 |  |  |  |  | 23 |  |  | 189 |  |  | 36,316 |  |
Equipment lease financing | 6,484 |  | 20 |  | 4 |  |  |  | 24 |  |  | 6 |  |  | 6,514 |  |
Total commercial | 223,811 |  | 208 |  | 35 |  | 137 |  |  | 380 |  |  | 858 |  |  | 225,049 |  |
Consumer |  |  |  |  |  |  |  |  |  |  |
Residential real estate | 44,306 |  | 281 |  | 112 |  | 199 |  |  | 592 |  | (d) | 424 |  | $ | 567 |  | 45,889 |  |
Home equity | 25,305 |  | 53 |  | 20 |  |  |  | 73 |  |  | 526 |  | 79 |  | 25,983 |  |
Automobile | 14,543 |  | 106 |  | 25 |  | 7 |  |  | 138 |  |  | 155 |  |  | 14,836 |  |
Credit card | 6,906 |  | 50 |  | 35 |  | 70 |  |  | 155 |  |  | 8 |  |  | 7,069 |  |
Education | 2,058 |  | 34 |  | 22 |  | 59 |  |  | 115 |  | (d) |  |  | 2,173 |  |
Other consumer | 4,975 |  | 15 |  | 12 |  | 10 |  |  | 37 |  |  | 14 |  |  | 5,026 |  |
Total consumer | 98,093 |  | 539 |  | 226 |  | 345 |  |  | 1,110 |  |  | 1,127 |  | 646 |  | 100,976 |  |
Total | $ | 321,904 |  | $ | 747 |  | $ | 261 |  | $ | 482 |  |  | $ | 1,490 |  |  | $ | 1,985 |  | $ | 646 |  | $ | 326,025 |  |
Percentage of total loans | 98.73 | % | 0.23 | % | 0.08 | % | 0.15 | % |  | 0.46 | % |  | 0.61 | % | 0.20 | % | 100.00 | % |
(a)Amounts in table represent loans held for investment and do not include any associated ALLL. (b)The CARES Act credit reporting rules expired in the third quarter of 2023 and, as such, delinquency status at December 31, 2023 is being reported for all loans based on the contractual terms of the loan. Amounts as of December 31, 2022 continue to be presented in accordance with the credit reporting rules under the CARES Act, which required certain loans modified due to pandemic related hardships to not be reported as past due based on the contractual terms of the loan, even when borrowers may not have made payments on their loans during the modification period. (c)The accrued interest associated with our loan portfolio totaled $1.5 billion and $1.2 billion at December 31, 2023 and 2022, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet. (d)Past due loan amounts include government insured or guaranteed Residential real estate loans and Education loans totaling $0.3 billion and $0.1 billion at both December 31, 2023 and 2022, respectively. (e)Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policy criteria. Given that these loans are not accounted for at amortized cost, they have been excluded from the nonperforming loan population. (f)Includes unearned income, unamortized deferred fees and costs on originated loans and premiums or discounts on purchased loans totaling $1.0 billion and $0.9 billion at December 31, 2023 and 2022, respectively. (g)Collateral dependent loans totaled $1.4 billion and $1.3 billion at December 31, 2023 and 2022, respectively. In the normal course of business, we originate or purchase loan products with contractual characteristics that, when concentrated, may increase our exposure as a holder of those loan products. Possible product features that may create a concentration of credit risk would include a high original or updated LTV ratio, terms that may expose the borrower to future increases in repayments above increases in market interest rates and interest-only loans, among others. We originate interest-only loans to commercial borrowers. Such credit arrangements are usually designed to match borrower cash flow expectations (e.g., working capital lines, revolvers). These products are standard in the financial services industry and product features are considered during the underwriting process to mitigate the increased risk that the interest-only feature may result in borrowers not being able to make interest and principal payments when due. We do not believe that these product features create a concentration of credit risk. At December 31, 2023, we pledged $51.3 billion of commercial and other loans to the Federal Reserve Bank and $89.5 billion of residential real estate and other loans to the FHLB as collateral for the ability to borrow, if necessary. The comparable amounts at December 31, 2022 were $28.1 billion and $90.4 billion, respectively. Amounts pledged reflect the unpaid principal balances. Nonperforming Assets Nonperforming assets include nonperforming loans and leases, OREO and foreclosed assets. Nonperforming loans are those loans accounted for at amortized cost whose credit quality has deteriorated to the extent that full collection of contractual principal and interest is not probable. Interest income is not recognized on these loans. Loans accounted for under the fair value option are reported as performing loans; however, when nonaccrual criteria is met, interest income is not recognized on these loans. Additionally, certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest are not reported as nonperforming loans and continue to accrue interest. See Note 1 Accounting Policies for additional information on our nonperforming loan and lease policies. The following table presents our nonperforming assets as of December 31, 2023 and 2022: Table 41: Nonperforming Assets
Dollars in millions |  | December 31, 2023 |  | December 31, 2022 |
Nonperforming loans (a) |  |  |  |  |
Commercial |  | $ | 1,307 |  |  | $ | 858 |  |
Consumer (b) |  | 873 |  |  | 1,127 |  |
Total nonperforming loans (c) |  | 2,180 |  |  | 1,985 |  |
OREO and foreclosed assets |  | 36 |  |  | 34 |  |
Total nonperforming assets |  | $ | 2,216 |  |  | $ | 2,019 |  |
Nonperforming loans to total loans |  | 0.68 | % |  | 0.61 | % |
Nonperforming assets to total loans, OREO and foreclosed assets |  | 0.69 | % |  | 0.62 | % |
Nonperforming assets to total assets |  | 0.39 | % |  | 0.36 | % |
(a)In connection with the adoption of ASU 2022-02, nonperforming loans as of December 31, 2023 include certain loans where terms were modified as a result of a borrower’s financial difficulty. Prior period amounts included nonperforming TDRs, for which accounting guidance was eliminated effective January 1, 2023. See Note 1 Accounting Policies and the Loan Modifications to Borrowers Experiencing Financial Difficulty section of this Note 3 for more information on our adoption of this ASU. (b)Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status. (c)Nonperforming loans for which there is no related ALLL totaled $0.5 billion at December 31, 2023 and primarily include loans with a fair value of collateral that exceeds the amortized cost basis. The comparable amount at December 31, 2022 was $0.7 billion. Additional Credit Quality Indicators by Loan Class Commercial and Industrial For commercial and industrial loans, we monitor the performance of the borrower in a disciplined and regular manner based upon the level of credit risk inherent in the loan. To evaluate the level of credit risk, we assign an internal risk rating reflecting the borrower’s PD and LGD. This two-dimensional credit risk rating methodology provides granularity in the risk monitoring process. These ratings are generally reviewed and updated at least once per year. For small balance homogeneous pools of commercial and industrial loans and leases, we apply scoring techniques to assist in determining the PD. The combination of the PD and LGD ratings assigned to commercial and industrial loans, capturing both the combination of expectations of default and loss severity in the event of default, reflects credit quality characteristics as of the reporting date and are used as inputs into our loss forecasting process. Based upon the amount of the lending arrangement and our risk rating assessment, we follow a formal schedule of written periodic reviews. Quarterly, we conduct formal reviews of a market’s or business unit’s loan portfolio, focusing on those loans which we perceive to be of higher risk, based upon PDs and LGDs, or loans for which credit quality is weakening. If circumstances warrant, it is our practice to review any customer obligation and its level of credit risk more frequently. We attempt to proactively manage our loans by using various procedures that are customized to the risk of a given loan, including ongoing outreach, contact, and assessment of obligor financial conditions, collateral inspection and appraisal. Commercial Real Estate We manage credit risk associated with our commercial real estate projects and commercial mortgages similar to commercial and industrial loans by evaluating PD and LGD. Risks associated with commercial real estate projects and commercial mortgage activities tend to be correlated to the loan structure and collateral location, project progress and business environment. As a result, these attributes are also monitored and utilized in assessing credit risk. As with the commercial and industrial loan class, a formal schedule of periodic reviews is also performed to assess market/geographic risk and business unit/industry risk. Often as a result of these reviews, more in-depth reviews and increased scrutiny are placed on areas of higher risk, such as adverse changes in risk ratings, deteriorating operating trends, and/or areas that concern management. These reviews are designed to assess risk and facilitate actions to mitigate such risks. Equipment Lease Financing We manage credit risk associated with our equipment lease financing loan class similar to commercial and industrial loans by analyzing PD and LGD. Based upon the dollar amount of the lease and the level of credit risk, we follow a formal schedule of periodic reviews. Generally, this occurs quarterly, although we have established practices to review such credit risk more frequently if circumstances warrant. Our review process entails analysis of the following factors: equipment value/residual value, exposure levels, jurisdiction risk, industry risk, guarantor requirements and regulatory compliance as applicable. The following table presents credit quality indicators for our commercial loan classes: Table 42: Commercial Credit Quality Indicators (a)
| Term Loans by Origination Year |  |  |
December 31, 2023 In millions | 2023 |  | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total
Commercial and industrial |  |  |  |  |  |  |  |  |  |
Pass Rated | $ | 23,019 |  |  | $ | 26,657 |  | $ | 7,562 |  | $ | 5,783 |  | $ | 4,110 |  | $ | 11,982 |  | $ | 88,467 |  | $ | 573 |  | $ | 168,153 |
Criticized | 838 |  |  | 1,781 |  | 739 |  | 331 |  | 281 |  | 698 |  | 4,708 |  | 51 |  | 9,427 |
Total commercial and industrial loans | 23,857 |  | 28,438 | 8,301 | 6,114 | 4,391 | 12,680 | 93,175 | 624 | 177,580
Gross charge-offs (b) | 25 | (c) | 32 | 33 | 8 | 3 | 26 | 105 | 12 | 244
Commercial real estate |  |  |  |  |  |  |  |  |  |
Pass Rated | 4,182 |  |  | 8,571 |  | 2,986 |  | 2,190 |  | 4,887 |  | 7,411 |  | 383 |  |  |  | 30,610 |
Criticized | 155 |  |  | 1,300 |  | 455 |  | 490 |  | 622 |  | 1,753 |  | 51 |  |  |  | 4,826 |
Total commercial real estate loans | 4,337 |  | 9,871 | 3,441 | 2,680 | 5,509 | 9,164 | 434 |  | 35,436
Gross charge-offs (b) |  |  |  |  | 12 | 31 | 137 |  |  | 180
Equipment lease financing |  |  |  |  |  |  |  |  |  |
Pass Rated | 1,522 |  |  | 1,424 |  | 689 |  | 690 |  | 452 |  | 1,378 |  |  |  |  |  | 6,155 |
Criticized | 90 |  |  | 81 |  | 81 |  | 51 |  | 35 |  | 49 |  |  |  |  |  | 387 |
Total equipment lease financing loans | 1,612 |  | 1,505 |  | 770 | 741 | 487 | 1,427 |  |  | 6,542
Gross charge-offs (b) | 4 |  | 4 | 4 | 4 | 1 | 1 |  |  | 18
Total commercial loans | $ | 29,806 |  |  | $ | 39,814 |  | $ | 12,512 |  | $ | 9,535 |  | $ | 10,387 |  | $ | 23,271 |  | $ | 93,609 |  | $ | 624 |  | $ | 219,558 |
Total commercial gross charge-offs | $ | 29 |  |  | $ | 36 |  | $ | 37 |  | $ | 24 |  | $ | 35 |  | $ | 164 |  | $ | 105 |  | $ | 12 |  | $ | 442 |
| Term Loans by Origination Year |  |  |
December 31, 2022 In millions | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total Loans
Commercial and industrial |  |  |  |  |  |  |  |  |
Pass Rated | $ | 41,685 |  | $ | 12,493 |  | $ | 8,134 |  | $ | 6,261 |  | $ | 4,209 |  | $ | 13,165 |  | $ | 89,384 |  | $ | 69 |  | $ | 175,400 |
Criticized | 1,259 | 423 |  | 277 |  | 299 |  | 297 |  | 551 |  | 3,682 |  | 31 |  | 6,819 |
Total commercial and industrial | 42,944 |  | 12,916 |  | 8,411 |  | 6,560 |  | 4,506 |  | 13,716 |  | 93,066 |  | 100 |  | 182,219 |
Commercial real estate |  |  |  |  |  |  |  |  |
Pass Rated | 8,835 |  | 4,153 |  | 3,266 |  | 5,511 |  | 3,005 |  | 7,454 |  | 450 |  |  | 32,674 |
Criticized | 348 |  | 37 |  | 322 |  | 758 |  | 807 |  | 1,367 |  | 3 |  |  | 3,642 |
Total commercial real estate | 9,183 |  | 4,190 |  | 3,588 |  | 6,269 |  | 3,812 |  | 8,821 |  | 453 |  |  | 36,316 |
Equipment lease financing |  |  |  |  |  |  |  |  |
Pass Rated | 1,797 |  | 962 |  | 942 |  | 670 |  | 410 |  | 1,495 |  |  |  | 6,276 |
Criticized | 60 |  | 55 |  | 56 |  | 39 |  | 17 |  | 11 |  |  |  | 238 |
Total equipment lease financing | 1,857 |  | 1,017 |  | 998 |  | 709 |  | 427 |  | 1,506 |  |  |  | 6,514 |
Total commercial | $ | 53,984 |  | $ | 18,123 |  | $ | 12,997 |  | $ | 13,538 |  | $ | 8,745 |  | $ | 24,043 |  | $ | 93,519 |  | $ | 100 |  | $ | 225,049 |
(a)Loans in our commercial portfolio are classified as Pass Rated or Criticized based on the regulatory definitions, which are driven by the PD and LGD ratings that we assign. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of December 31, 2023 and 2022. (b)Gross charge-offs are presented on a year-to-date basis, as of the reporting date. (c)Includes charge-offs of deposit overdrafts. Residential Real Estate and Home Equity We use several credit quality indicators, including delinquency information, nonperforming loan information, updated credit scores and originated and updated LTV ratios, to monitor and manage credit risk within the residential real estate and home equity loan classes. A summary of credit quality indicators follows: Delinquency/Delinquency Rates: We monitor trending of delinquency/delinquency rates for residential real estate and home equity loans. See Table 40 for additional information. Nonperforming Loans: We monitor trending of nonperforming loans for residential real estate and home equity loans. See Table 40 for additional information. Credit Scores: We use a national third-party provider to update FICO credit scores for residential real estate and home equity loans at least quarterly. The updated scores are incorporated into a series of credit management reports, which are utilized to monitor the risk in the loan classes. LTV (inclusive of CLTV for first and subordinate lien positions): At least quarterly, we update the property values of real estate collateral and calculate an updated LTV ratio. For open-end credit lines secured by real estate in regions experiencing significant declines in property values, more frequent valuations may occur. We examine LTV migration and stratify LTV into categories to monitor the risk in the loan classes. We use a combination of original LTV and updated LTV for internal risk management and reporting purposes (e.g., line management, loss mitigation strategies). In addition to the fact that estimated property values by their nature are estimates, given certain data limitations, it is important to note that updated LTVs may be based upon management’s assumptions (i.e., if an updated LTV is not provided by the third-party service provider, HPI changes will be incorporated in arriving at management’s estimate of updated LTV). Updated LTV is estimated using modeled property values. The related estimates and inputs are based upon an approach that uses a combination of third-party automated valuation models, broker price opinions, HPI indices, property location, internal and external balance information, origination data and management assumptions. We generally utilize origination lien balances provided by a third-party, where applicable, which do not include an amortization assumption when calculating updated LTV. Accordingly, the results of the calculations do not represent actual appraised loan level collateral or updated LTV based upon lien balances held by others, and as such, are necessarily imprecise and subject to change as we refine our methodology. The following table presents credit quality indicators for our residential real estate and home equity loan classes: Table 43: Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes
| Term Loans by Origination Year |  |  |
December 31, 2023 In millions | 2023 | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total
Residential real estate |  |  |  |  |  |  |  |  |
Current estimated LTV ratios |  |  |  |  |  |  |  |  |
Greater than 100% | $ | 15 |  | $ | 139 |  | $ | 79 |  | $ | 31 |  | $ | 10 |  | $ | 28 |  |  |  | $ | 302 |
Greater than or equal to 80% to 100% | 1,665 |  | 1,928 |  | 955 |  | 221 |  | 69 |  | 92 |  |  |  | 4,930 |
Less than 80% | 3,585 |  | 7,977 |  | 14,421 |  | 6,514 |  | 2,154 |  | 6,935 |  |  |  | 41,586 |
No LTV available | 56 |  |  |  | 13 |  |  |  |  |  | 4 |  |  |  | 73 |
Government insured or guaranteed loans | 14 |  | 20 |  | 16 |  | 66 |  | 37 |  | 500 |  |  |  | 653 |
Total residential real estate loans | $ | 5,335 |  | $ | 10,064 |  | $ | 15,484 |  | $ | 6,832 |  | $ | 2,270 |  | $ | 7,559 |  |  |  | $ | 47,544 |
Updated FICO scores |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 3,206 |  | $ | 7,797 |  | $ | 12,197 |  | $ | 5,035 |  | $ | 1,492 |  | $ | 4,004 |  |  |  | $ | 33,731 |
720 to 779 | 1,482 |  | 1,659 |  | 2,389 |  | 1,107 |  | 432 |  | 1,388 |  |  |  | 8,457 |
660 to 719 | 400 |  | 508 |  | 657 |  | 334 |  | 171 |  | 721 |  |  |  | 2,791 |
Less than 660 | 93 |  | 71 |  | 133 |  | 122 |  | 82 |  | 680 |  |  |  | 1,181 |
No FICO score available | 140 |  | 9 |  | 92 |  | 168 |  | 56 |  | 266 |  |  |  | 731 |
Government insured or guaranteed loans | 14 |  | 20 |  | 16 |  | 66 |  | 37 |  | 500 |  |  |  | 653 |
Total residential real estate loans | $ | 5,335 |  | $ | 10,064 |  | $ | 15,484 |  | $ | 6,832 |  | $ | 2,270 |  | $ | 7,559 |  |  |  | $ | 47,544 |
Gross charge-offs (a) |  |  | $ | 2 |  | $ | 1 |  | $ | 1 |  |  |  | $ | 4 |  |  |  |  |  | $ | 8 |
Home equity |  |  |  |  |  |  |  |  |
Current estimated LTV ratios |  |  |  |  |  |  |  |  |
Greater than 100% |  |  | $ | 1 |  | $ | 12 |  | $ | 6 |  | $ | 14 |  | $ | 306 |  | $ | 309 |  | $ | 648 |
Greater than or equal to 80% to 100% |  |  | 4 |  | 40 |  | 17 |  | 22 |  | 1,116 |  | 1,743 |  | 2,942 |
Less than 80% |  |  | 157 |  | 1,866 |  | 845 |  | 2,556 |  | 6,843 |  | 10,293 |  | 22,560 |
Total home equity loans |  |  |  |  | $ | 162 |  | $ | 1,918 |  | $ | 868 |  | $ | 2,592 |  | $ | 8,265 |  | $ | 12,345 |  | $ | 26,150 |
Updated FICO scores |  |  |  |  |  |  |  |  |
Greater than or equal to 780 |  |  | $ | 102 |  | $ | 1,254 |  | $ | 489 |  | $ | 1,605 |  | $ | 4,604 |  | $ | 6,083 |  | $ | 14,137 |
720 to 779 |  |  | 38 |  | 423 |  | 216 |  | 488 |  | 2,222 |  | 3,225 |  | 6,612 |
660 to 719 |  |  | 17 |  | 174 |  | 110 |  | 271 |  | 1,207 |  | 1,894 |  | 3,673 |
Less than 660 |  |  | 5 |  | 65 |  | 52 |  | 220 |  | 223 |  | 1,089 |  | 1,654 |
No FICO score available |  |  |  |  | 2 |  | 1 |  | 8 |  | 9 |  | 54 |  | 74 |
Total home equity loans |  |  |  |  | $ | 162 |  | $ | 1,918 |  | $ | 868 |  | $ | 2,592 |  | $ | 8,265 |  | $ | 12,345 |  | $ | 26,150 |
Gross charge-offs (a) |  |  |  |  |  |  |  |  |  |  | $ | 4 |  | $ | 7 |  | $ | 10 |  | $ | 21 |
(Continued from previous page) | Term Loans by Origination Year |  |  |
December 31, 2022 In millions | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total Loans
Residential real estate |  |  |  |  |  |  |  |  |
Current estimated LTV ratios |  |  |  |  |  |  |  |  |
Greater than 100% | $ | 4 |  | $ | 52 |  | $ | 20 |  | $ | 10 |  | $ | 4 |  | $ | 41 |  |  |  | $ | 131 |
Greater than or equal to 80% to 100% | 1,185 |  | 678 |  | 232 |  | 84 |  | 24 |  | 92 |  |  |  | 2,295 |
Less than 80% | 9,396 |  | 15,844 |  | 7,074 |  | 2,346 |  | 822 |  | 7,220 |  |  |  | 42,702 |
No LTV available |  |  | 61 |  |  |  | 3 |  |  |  | 4 |  |  |  | 68 |
Government insured or guaranteed loans | 9 |  | 15 |  | 66 |  | 39 |  | 28 |  | 536 |  |  |  | 693 |
Total residential real estate | $ | 10,594 |  | $ | 16,650 |  | $ | 7,392 |  | $ | 2,482 |  | $ | 878 |  | $ | 7,893 |  |  |  | $ | 45,889 |
Updated FICO scores |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 6,825 |  | $ | 12,596 |  | $ | 5,276 |  | $ | 1,623 |  | $ | 463 |  | $ | 4,027 |  |  |  | $ | 30,810 |
720 to 779 | 3,172 |  | 3,024 |  | 1,369 |  | 476 |  | 180 |  | 1,457 |  |  |  | 9,678 |
660 to 719 | 514 |  | 744 |  | 378 |  | 189 |  | 98 |  | 796 |  |  |  | 2,719 |
Less than 660 | 63 |  | 108 |  | 110 |  | 88 |  | 71 |  | 740 |  |  |  | 1,180 |
No FICO score available | 11 |  | 163 |  | 193 |  | 67 |  | 38 |  | 337 |  |  |  | 809 |
Government insured or guaranteed loans | 9 |  | 15 |  | 66 |  | 39 |  | 28 |  | 536 |  |  |  | 693 |
Total residential real estate | $ | 10,594 |  | $ | 16,650 |  | $ | 7,392 |  | $ | 2,482 |  | $ | 878 |  | $ | 7,893 |  |  |  | $ | 45,889 |
Home equity |  |  |  |  |  |  |  |  |
Current estimated LTV ratios |  |  |  |  |  |  |  |  |
Greater than 100% |  |  | $ | 4 |  | $ | 14 |  | $ | 9 |  | $ | 2 |  | $ | 15 |  | $ | 268 |  | $ | 137 |  | $ | 449 |
Greater than or equal to 80% to 100% |  |  | 4 |  | 51 |  | 27 |  | 4 |  | 31 |  | 854 |  | 1,149 |  | 2,120 |
Less than 80% |  | 172 |  | 2,078 |  | 961 |  | 285 |  | 2,851 |  | 7,780 |  | 9,287 |  | 23,414 |
Total home equity |  |  | $ | 180 |  | $ | 2,143 |  | $ | 997 |  | $ | 291 |  | $ | 2,897 |  | $ | 8,902 |  | $ | 10,573 |  | $ | 25,983 |
Updated FICO scores |  |  |  |  |  |  |  |  |
Greater than or equal to 780 |  |  | $ | 110 |  | $ | 1,357 |  | $ | 554 |  | $ | 155 |  | $ | 1,791 |  | $ | 5,093 |  | $ | 5,545 |  | $ | 14,605 |
720 to 779 |  |  | 47 |  | 515 |  | 248 |  | 64 |  | 567 |  | 2,305 |  | 2,843 |  | 6,589 |
660 to 719 |  |  | 19 |  | 211 |  | 140 |  | 42 |  | 288 |  | 1,146 |  | 1,449 |  | 3,295 |
Less than 660 |  | 4 | 57 |  | 54 |  | 29 |  | 242 |  | 342 |  | 671 |  | 1,399 |
No FICO score available |  |  |  |  | 3 |  | 1 |  | 1 |  | 9 |  | 16 |  | 65 |  | 95 |
Total home equity |  |  | $ | 180 |  | $ | 2,143 |  | $ | 997 |  | $ | 291 |  | $ | 2,897 |  | $ | 8,902 |  | $ | 10,573 |  | $ | 25,983 |
(a)Gross charge-offs are presented on a year-to-date basis, as of the reporting date. Automobile, Credit Card, Education and Other Consumer We monitor a variety of credit quality information in the management of these consumer loan classes. For all loan types, we generally use a combination of internal loan parameters as well as an updated FICO score. We use FICO scores as a primary credit quality indicator for automobile and credit card loans, as well as non-government guaranteed or non-insured education loans and other secured and unsecured lines and loans. Internal credit metrics, such as delinquency status, are heavily relied upon as credit quality indicators for government guaranteed or insured education loans and consumer loans to high net worth individuals, as internal credit metrics are more relevant than FICO scores for these types of loans. Along with the monitoring of delinquency trends and losses for each class, FICO credit score updates are obtained at least quarterly along with a variety of credit bureau attributes. Loans with high FICO scores tend to have a lower likelihood of loss. Conversely, loans with low FICO scores tend to have a higher likelihood of loss. The following table presents credit quality indicators for our automobile, credit card, education and other consumer loan classes: Table 44: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes
| Term Loans by Origination Year |  |  |
December 31, 2023 In millions | 2023 |  | 2022 | 2021 | 2020 | 2019 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total
Automobile |  |  |  |  |  |  |  |  |  |
Updated FICO scores |  |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 2,722 |  |  | $ | 1,650 |  | $ | 1,483 |  | $ | 535 |  | $ | 368 |  | $ | 88 |  |  |  | $ | 6,846 |
720 to 779 | 1,797 |  |  | 1,104 |  | 778 |  | 301 |  | 250 |  | 80 |  |  |  | 4,310 |
660 to 719 | 1,014 |  |  | 604 |  | 408 |  | 186 |  | 186 |  | 70 |  |  |  | 2,468 |
Less than 660 | 264 |  |  | 272 |  | 243 |  | 152 |  | 200 |  | 105 |  |  |  | 1,236 |
Total automobile loans | $ | 5,797 |  |  | $ | 3,630 |  | $ | 2,912 |  | $ | 1,174 |  | $ | 1,004 |  | $ | 343 |  |  |  | $ | 14,860 |
Gross charge-offs (a) | $ | 8 |  |  | $ | 24 |  | $ | 22 |  | $ | 17 |  | $ | 30 |  | $ | 20 |  |  |  |  |  | $ | 121 |
Credit card |  |  |  |  |  |  |  |  |  |
Updated FICO scores |  |  |  |  |  |  |  |  |  |
Greater than or equal to 780 |  |  |  |  |  |  |  | $ | 2,017 |  | $ | 1 |  | $ | 2,018 |
720 to 779 |  |  |  |  |  |  |  | 1,976 |  | 4 |  | 1,980 |
660 to 719 |  |  |  |  |  |  |  | 1,979 |  | 13 |  | 1,992 |
Less than 660 |  |  |  |  |  |  |  | 1,036 |  | 48 |  | 1,084 |
No FICO score available or required (b) |  |  |  |  |  |  |  | 103 |  | 3 |  | 106 |
Total credit card loans |  |  |  |  |  |  |  | $ | 7,111 |  | $ | 69 |  | $ | 7,180 |
Gross charge-offs (a) |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 290 |  | $ | 29 |  | $ | 319 |
Education |  |  |  |  |  |  |  |  |  |
Updated FICO scores |  |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 35 |  |  | $ | 88 |  | $ | 45 |  | $ | 40 |  | $ | 51 |  | $ | 331 |  |  |  | $ | 590 |
720 to 779 | 32 |  |  | 47 |  | 24 |  | 19 |  | 24 |  | 131 |  |  |  | 277 |
660 to 719 | 20 |  |  | 17 |  | 8 |  | 6 |  | 8 |  | 54 |  |  |  | 113 |
Less than 660 | 4 |  |  | 3 |  | 2 |  | 1 |  | 2 |  | 21 |  |  |  | 33 |
No FICO score available or required (b) | 15 |  |  | 5 |  | 4 |  | 2 |  |  | 1 |  |  |  | 27 |
Total loans using FICO credit metric | 106 |  |  | 160 |  | 83 |  | 68 |  | 85 |  | 538 |  |  |  | 1,040 |
Other internal credit metrics |  |  |  |  |  |  | 905 |  |  |  | 905 |
Total education loans | $ | 106 |  |  | $ | 160 |  | $ | 83 |  | $ | 68 |  | $ | 85 |  | $ | 1,443 |  |  |  | $ | 1,945 |
Gross charge-offs (a) |  |  |  |  |  | $ | 1 |  | $ | 1 |  | $ | 2 |  | $ | 13 |  |  |  |  |  | $ | 17 |
Other consumer |  |  |  |  |  |  |  |  |  |
Updated FICO scores |  |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 241 |  |  | $ | 127 |  | $ | 47 |  | $ | 21 |  | $ | 14 |  | $ | 11 |  | $ | 39 |  | $ | 1 |  | $ | 501 |
720 to 779 | 286 |  |  | 157 |  | 54 |  | 26 |  | 17 |  | 11 |  | 80 |  | 1 |  | 632 |
660 to 719 | 147 |  |  | 140 |  | 57 |  | 27 |  | 21 |  | 11 |  | 87 |  | 2 |  | 492 |
Less than 660 | 19 |  |  | 52 |  | 31 |  | 17 |  | 14 |  | 8 |  | 43 |  | 1 |  | 185 |
Total loans using FICO credit metric | 693 |  |  | 476 |  | 189 |  | 91 |  | 66 |  | 41 |  | 249 |  | 5 |  | 1,810 |
Other internal credit metrics | 19 |  |  | 97 |  | 33 |  | 48 |  | 71 |  | 34 |  | 2,149 |  | 10 |  | 2,461 |
Total other consumer loans | $ | 712 |  |  | $ | 573 |  | $ | 222 |  | $ | 139 |  | $ | 137 |  | $ | 75 |  | $ | 2,398 |  | $ | 15 |  | $ | 4,271 |
Gross charge-offs (a) | $ | 75 |  | (c) | $ | 23 |  | $ | 18 |  | $ | 14 |  | $ | 14 |  | $ | 8 |  | $ | 11 |  | $ | 1 |  | $ | 164 |
(Continued from previous page) | Term Loans by Origination Year |  |  |
December 31, 2022 In millions | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Revolving Loans Converted to Term | Total Loans
Updated FICO Scores |  |  |  |  |  |  |  |  |
Automobile |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 2,390 |  | $ | 2,162 |  | $ | 922 |  | $ | 760 |  | $ | 241 |  | $ | 75 |  |  |  | $ | 6,550 |
720 to 779 | 1,702 |  | 1,312 |  | 561 |  | 538 |  | 222 |  | 69 |  |  |  | 4,404 |
660 to 719 | 854 |  | 660 |  | 341 |  | 401 |  | 187 |  | 56 |  |  |  | 2,499 |
Less than 660 | 193 |  | 290 |  | 230 |  | 368 |  | 228 |  | 74 |  |  |  | 1,383 |
Total automobile | $ | 5,139 |  | $ | 4,424 |  | $ | 2,054 |  | $ | 2,067 |  | $ | 878 |  | $ | 274 |  |  |  | $ | 14,836 |
Credit card |  |  |  |  |  |  |  |  |
Greater than or equal to 780 |  |  |  |  |  |  | $ | 1,954 |  | $ | 2 |  | $ | 1,956 |
720 to 779 |  |  |  |  |  |  | 1,994 |  | 6 |  | 2,000 |
660 to 719 |  |  |  |  |  |  | 1,957 |  | 13 |  | 1,970 |
Less than 660 |  |  |  |  |  |  | 1,001 |  | 35 |  | 1,036 |
No FICO score available or required (b) |  |  |  |  |  |  | 104 |  | 3 |  | 107 |
Total credit card |  |  |  |  |  |  | $ | 7,010 |  | $ | 59 |  | $ | 7,069 |
Education |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 42 |  | $ | 53 |  | $ | 48 |  | $ | 61 |  | $ | 51 |  | $ | 357 |  |  |  | $ | 612 |
720 to 779 | 39 |  | 27 |  | 24 |  | 30 |  | 24 |  | 143 |  |  |  | 287 |
660 to 719 | 21 |  | 8 |  | 8 |  | 9 |  | 8 |  | 59 |  |  |  | 113 |
Less than 660 | 4 |  | 1 |  | 1 |  | 2 |  | 2 |  | 24 |  |  |  | 34 |
No FICO score available or required (b) | 20 |  | 8 |  | 7 |  | 3 |  |  | 1 |  |  |  | 39 |
Education loans using FICO credit metric | 126 |  | 97 |  | 88 |  | 105 |  | 85 |  | 584 |  |  |  | 1,085 |
Other internal credit metrics |  |  |  |  |  | 1,088 |  |  |  | 1,088 |
Total education | $ | 126 |  | $ | 97 |  | $ | 88 |  | $ | 105 |  | $ | 85 |  | $ | 1,672 |  |  |  | $ | 2,173 |
Other consumer |  |  |  |  |  |  |  |  |
Greater than or equal to 780 | $ | 224 |  | $ | 97 |  | $ | 53 |  | $ | 46 |  | $ | 14 |  | $ | 18 |  | $ | 47 |  | $ | 2 |  | $ | 501 |
720 to 779 | 302 |  | 122 |  | 68 |  | 62 |  | 20 |  | 15 |  | 89 |  | 2 |  | 680 |
660 to 719 | 229 |  | 110 |  | 68 |  | 66 |  | 28 |  | 8 |  | 95 |  | 2 |  | 606 |
Less than 660 | 32 |  | 48 |  | 37 |  | 40 |  | 20 |  | 6 |  | 44 |  | 2 |  | 229 |
Other consumer loans using FICO credit metric | 787 |  | 377 |  | 226 |  | 214 |  | 82 |  | 47 |  | 275 |  | 8 |  | 2,016 |
Other internal credit metrics | 125 |  | 43 |  | 40 |  | 34 |  | 7 |  | 29 |  | 2,720 |  | 12 |  | 3,010 |
Total other consumer | $ | 912 |  | $ | 420 |  | $ | 266 |  | $ | 248 |  | $ | 89 |  | $ | 76 |  | $ | 2,995 |  | $ | 20 |  | $ | 5,026 |
(a)Gross charge-offs are presented on a year-to-date basis, as of the reporting date. (b)Loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk. (c)Includes charge-offs of deposit overdrafts. Loan Modifications to Borrowers Experiencing Financial Difficulty On January 1, 2023, we adopted ASU 2022-02, which eliminates the accounting guidance for TDRs and enhances the disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty (FDMs). FDMs result from our loss mitigation activities and include principal forgiveness, interest rate reductions, term extensions, payment delays or combinations thereof. See Note 1 Accounting Policies for additional information on FDMs. The following table presents the amortized cost basis, as of December 31, 2023, of FDMs granted during the twelve months ended December 31, 2023: Table 45: Loan Modifications Granted to Borrowers Experiencing Financial Difficulty (a) (b)
Year ended December 31, 2023 Dollars in millions |  | Interest Rate Reduction | Term Extension | Payment Delay | Repayment Plan | Interest Rate Reduction and Payment Delay | Interest Rate Reduction and Term Extension | Payment Delay and Term Extension | Other (c) | Total | % of Loan Class |
Commercial |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  | $ | 13 |  | $ | 683 |  | $ | 65 |  |  |  | $ | 14 |  | $ | 18 |  | $ | 156 |  | $ | 150 |  | $ | 1,099 |  | 0.62 | % |
Commercial real estate |  | 47 | 816 |  |  |  |  |  |  |  |  | 17 |  | 87 |  | 967 |  | 2.73 | % |
Total commercial |  | 60 |  | 1,499 |  | 65 |  |  |  | 14 |  | 18 |  | 173 |  | 237 |  | 2,066 |  | 0.94 | % |
Consumer |  |  |  |  |  |  |  |  |  |  |  |
Residential real estate |  | 2 |  | 1 |  | 95 |  |  |  |  | 5 |  |  | 6 |  | 109 |  | 0.23 | % |
Home equity |  |  |  | 1 |  | 10 |  |  |  |  | 8 |  |  | 12 |  | 31 |  | 0.12 | % |
Credit card |  |  |  |  |  |  |  | $ | 58 |  |  |  |  |  |  |  | 58 |  | 0.81 | % |
Education |  |  |  | 5 |  |  |  |  |  |  |  |  |  |  |  | 5 |  | 0.26 | % |
Other consumer |  |  |  |  |  |  |  | 1 |  |  |  |  |  |  |  | 1 |  | 0.02 | % |
Total consumer |  | 2 |  | 7 |  | 105 |  | 59 |  |  | 13 |  |  | 18 |  | 204 |  | 0.20 | % |
Total |  | $ | 62 |  | $ | 1,506 |  | $ | 170 |  | $ | 59 |  | $ | 14 |  | $ | 31 |  | $ | 173 |  | $ | 255 |  | $ | 2,270 |  | 0.71 | % |
(a)At December 31, 2023, there were $0.4 billion of unfunded lending related commitments associated with FDMs. (b)Excludes the amortized cost basis of modified loans that were paid off, charged off or otherwise liquidated as of period end. (c)Includes loans where we have received notification that a borrower has filed for Chapter 7 bankruptcy relief, but specific instructions as to the terms of the relief have not been formally ruled upon by the court. Amounts also include trial modifications. Table 46 presents the financial effect of FDMs granted during the twelve months ended December 31, 2023: Table 46: Financial Effect of FDMs (a)
Year ended December 31, 2023 Dollars in millions |  |  | Weighted-Average Interest Rate Reduction | Weighted-Average Term Extension (in Months) | Weighted-Average Payment Delay (in Months)
Commercial |  |  |  |  |
Commercial and industrial |  |  | 2.70 | % | 12 | 3
Commercial real estate |  |  | 4.54 | % | 14 | 5
Consumer |  |  |  |  |
Residential real estate |  |  | 1.34 | % | 80 | 9
Home equity |  |  | 1.17 | % | 56 | 4
Education |  |  |  |  | 20 |
(a)Excludes the financial effects of modifications for loans that were paid off, charged off or otherwise liquidated as of period end. Repayment plans are excluded from Table 46. The terms of these programs, which are offered for certain credit card and unsecured line of credit products, are as follows: •Short-term programs are granted for periods of 6 and 12 months. These programs are structurally similar such that the interest rate is reduced to a standard rate of 4.99% and the minimum payment percentage is adjusted to 1.90% of the outstanding balance. At the end of the 6 or 12 months, the borrower is returned to the original contractual interest rate and minimum payment amount specified in the original lending agreement. •Fully-amortized repayment plans are also granted, the most common of which being a 60 month program. In this program, we convert the borrower’s drawn and unpaid balances into a fully-amortized repayment plan consisting of an interest rate of 4.99% and an adjusted minimum payment percentage of 1.90% of the outstanding balance. This fully-amortized program is designed in a manner that allows the drawn and unpaid amounts to be recaptured at the end of the 60 months. After we modify a loan, we continue to track its performance under its most recent modified terms. The following table presents the performance, as of December 31, 2023, of FDMs granted during the twelve months ended December 31, 2023: Table 47: Delinquency Status of FDMs (a)
Year ended December 31, 2023 Dollars in millions | Current or Less Than 30 Days Past Due | 30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More Past Due | Nonperforming Loans | Total
Commercial |  |  |  |  |  |
Commercial and industrial | $ | 828 |  | $ | 14 |  |  |  |  |  | $ | 257 |  | $ | 1,099 |
Commercial real estate | 863 |  |  |  |  |  |  |  | 104 |  | 967 |
Total commercial | 1,691 |  | 14 |  |  |  |  |  | 361 |  | 2,066 |
Consumer |  |  |  |  |  |  |
Residential real estate | 15 |  | 1 |  |  |  |  |  | 93 |  | 109 |
Home equity | 4 |  |  |  |  |  |  |  | 27 |  | 31 |
Credit card | 41 |  | 5 |  | $ | 4 |  | $ | 7 |  | 1 |  | 58 |
Education | 5 |  |  |  |  |  |  |  |  |  | 5 |
Other consumer |  |  |  |  |  |  |  |  | 1 |  | 1 |
Total consumer | 65 |  | 6 |  | 4 |  | 7 |  | 122 |  | 204 |
Total | $ | 1,756 |  | $ | 20 |  | $ | 4 |  | $ | 7 |  | $ | 483 |  | $ | 2,270 |
(a)Represents amortized cost basis. We generally consider FDMs to have subsequently defaulted when they become 60 days past due after the most recent date the loan was modified. The following table presents loans that were both (i) classified as FDMs, and (ii) subsequently defaulted during the period. Table 48: Subsequently Defaulted FDMs (a)
Year ended December 31, 2023 Dollars in millions | Interest Rate Reduction | Term Extension | Payment Delay | All Other Modifications (b) | Total
Commercial |  |  |  |  |
Commercial and industrial |  | $ | 38 |  | $ | 166 |  | $ | 7 |  | $ | 211 |
Commercial real estate | $ | 46 |  | 15 |  |  |  | 61 |
Total commercial | 46 |  | 53 |  | 166 |  | 7 |  | 272 |
Consumer |  |  |  |  |  |
Residential real estate | 1 |  |  | 28 |  | 2 |  | 31 |
Home equity |  |  | 2 |  | 10 |  | 12 |
Credit card |  |  |  | 16 |  | 16 |
Total consumer | 1 |  |  |  | 30 |  | 28 |  | 59 |
Total | $ | 47 |  | $ | 53 |  | $ | 196 |  | $ | 35 |  | $ | 331 |
(a)Represents amortized cost basis. (b)Includes the following modification categories: principal forgiveness, repayment plans, combinations of interest rate reduction/payment delay and interest rate reduction/ term extension and other. Troubled Debt Restructuring Disclosures Prior to the Adoption of ASU 2022-02 Table 49 quantifies the number of loans that were classified as TDRs as well as the change in the loans’ balance as a result of becoming a TDR during the years ended December 31, 2022 and 2021. Additionally, the table provides information about the types of TDR concessions. See Note 1 Accounting Policies for additional discussion of TDRs. Table 49: Financial Impact and TDRs by Concession Type (a)
|  | Number of Loans |  | Pre-TDR Amortized Cost Basis (b) |  | Post-TDR Amortized Cost Basis (c)
During the year ended December 31, 2022 Dollars in millions |  | Principal Forgiveness |  | Rate Reduction |  | Other |  | Total
Commercial |  | 57 |  |  | $ | 363 |  |  | $ | 9 |  |  | $ | 58 |  |  | $ | 202 |  |  | $ | 269 |
Consumer |  | 10,809 |  |  | 162 |  |  |  |  | 123 |  |  | 22 |  |  | 145 |
Total TDRs |  | 10,866 |  |  | $ | 525 |  |  | $ | 9 |  |  | $ | 181 |  |  | $ | 224 |  |  | $ | 414 |
During the year ended December 31, 2021 Dollars in millions |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | 57 |  |  | $ | 536 |  |  | $ | 6 |  |  |  |  | $ | 510 |  |  | $ | 516 |
Consumer |  | 6,109 |  |  | 108 |  |  |  |  | $ | 64 |  |  | 33 |  |  | 97 |
Total TDRs |  | 6,166 |  |  | $ | 644 |  |  | $ | 6 |  |  | $ | 64 |  |  | $ | 543 |  |  | $ | 613 |
(a)Impact of partial charge-offs at TDR date are included in this table. (b)Represents the amortized cost basis of the loans as of the quarter end prior to TDR designation. (c)Represents the amortized cost basis of the TDRs as of the end of the quarter in which the TDR occurs. After a loan was determined to be a TDR, we continued to track its performance under its most recent restructured terms. We considered a TDR to have subsequently defaulted when it became 60 days past due after the most recent date the loan was restructured. Loans that were both (i) classified as TDRs, and (ii) subsequently defaulted during the period totaled $0.1 billion for each of the years ended December 31, 2022 and 2021. Allowance for Credit Losses We maintain the ACL related to loans at levels that we believe to be appropriate to absorb expected credit losses in the portfolios as of the balance sheet date. See Note 1 Accounting Policies for a discussion of the methodologies used to determine this allowance. A rollforward of the ACL related to loans follows: Table 50: Rollforward of Allowance for Credit Losses
At or for the year ended December 31 | 2023 |  |  | 2022 |  | 2021 |
In millions | Commercial | Consumer | Total |  |  | Commercial | Consumer | Total |  | Commercial | Consumer | Total |
Allowance for loan and lease losses |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 3,114 |  | $ | 1,627 |  | $ | 4,741 |  |  |  | $ | 3,185 |  | $ | 1,683 |  | $ | 4,868 |  |  | $ | 3,337 |  | $ | 2,024 |  | $ | 5,361 |  |
Adoption of ASU 2022-02 (a) |  | (35) |  | (35) |  |  |  |  |  |  |  |  |  |  |
Beginning balance, adjusted | 3,114 |  | 1,592 |  | 4,706 |  |  |  | 3,185 |  | 1,683 |  | 4,868 |  |  | 3,337 |  | 2,024 |  | 5,361 |  |
Acquisition PCD reserves |  |  |  |  |  |  |  |  |  | 774 |  | 282 |  | 1,056 |  |
Charge-offs | (442) |  | (650) |  | (1,092) |  |  |  | (307) |  | (678) |  | (985) |  |  | (434) |  | (667) |  | (1,101) |  |
Recoveries | 137 |  | 245 |  | 382 |  |  |  | 114 |  | 308 |  | 422 |  |  | 106 |  | 338 |  | 444 |  |
Net (charge-offs) | (305) |  | (405) |  | (710) |  |  |  | (193) |  | (370) |  | (563) |  |  | (328) |  | (329) |  | (657) |  |
Provision for (recapture of) credit losses | 447 |  | 345 |  | 792 |  |  |  | 126 |  | 313 |  | 439 |  |  | (594) |  | (293) |  | (887) |  |
Other | 3 |  |  |  | 3 |  |  |  | (4) |  | 1 |  | (3) |  |  | (4) |  | (1) |  | (5) |  |
Ending balance | $ | 3,259 |  | $ | 1,532 |  | $ | 4,791 |  |  |  | $ | 3,114 |  | $ | 1,627 |  | $ | 4,741 |  |  | $ | 3,185 |  | $ | 1,683 |  | $ | 4,868 |  |
Allowance for unfunded lending related commitments (b) |  |  |  |  |  |  |  |  |  |
Beginning balance | $ | 613 |  | $ | 81 |  | $ | 694 |  |  |  | $ | 564 |  | $ | 98 |  | $ | 662 |  |  | $ | 485 |  | $ | 99 |  | $ | 584 |  |
Acquisition PCD reserves |  |  |  |  |  |  |  |  |  |  | 43 |  | 3 |  | 46 |  |
Provision for (recapture of) credit losses | (68) |  | 37 |  | (31) |  |  |  | 49 |  | (17) |  | 32 |  |  | 36 |  | (4) |  | 32 |  |
Ending balance | $ | 545 |  | $ | 118 |  | $ | 663 |  |  |  | $ | 613 |  | $ | 81 |  | $ | 694 |  |  | $ | 564 |  | $ | 98 |  | $ | 662 |  |
Allowance for credit losses at December 31 (c) | $ | 3,804 |  | $ | 1,650 |  | $ | 5,454 |  |  |  | $ | 3,727 |  | $ | 1,708 |  | $ | 5,435 |  |  | $ | 3,749 |  | $ | 1,781 |  | $ | 5,530 |  |
(a) Represents the impact of adopting ASU 2022-02 on January 1, 2023. As a result of adoption, we eliminated the accounting guidance for TDRs, including the use of a discounted cash flow approach to measure the allowance for TDRs. (b) See Note 10 Commitments for additional information about the underlying commitments related to this allowance. (c) Represents the ALLL plus allowance for unfunded lending related commitments and excludes allowances for investment securities and other financial assets, which together totaled $120 million, $176 million and $171 million at December 31, 2023, 2022 and 2021 respectively. The ACL related to loans totaled $5.5 billion at December 31, 2023, and was relatively stable in comparison to reserves at December 31, 2022. The slight increase in reserves was primarily driven by portfolio activity, including changes in credit quality related to the commercial real estate portfolio, partially offset by an updated economic outlook.

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