Realized gain (loss) on payments services equity investments with readily determinable fair values

[Table of Contents](#i6f5a02f7aeae4b00b01c55901eb4a1a5_4)investments in these entities of $377 million and $388 million, respectively, and related contingent liabilities for unconditional and legally binding delayed equity contributions of $77 million and $92 million, respectively. Of the above outstanding equity investments, the Company had $342 million and $350 million of investments related to affordable housing projects as of March 31, 2022 and December 31, 2021, respectively, which had $68 million and $80 million of related contingent liabilities for unconditional and legally binding delayed equity contributions, respectively.The Company holds non-controlling equity positions in several payment services entities. Most of these investments are not subject to equity method accounting because the Company does not have significant influence over the investee. The common or preferred equity securities that the Company holds typically do not have readily determinable fair values. As a result, the majority of these investments are carried at cost minus impairment, if any. As of March 31, 2022 and December 31, 2021, the carrying value of these investments, which are recorded within other assets on the Company's condensed consolidated statements of financial condition, was $33 million and $36 million, respectively.The Company also holds non-controlling equity positions in payment service entities that have actively traded stock and therefore have readily determinable fair values. As a result, these investments are carried at fair value based on the quoted share prices. As of March 31, 2022 and December 31, 2021, the carrying value of these investments, which are recorded within other assets on the Company's condensed consolidated statements of financial condition, was $272 million and $461 million, respectively. During the three months ended March 31, 2022, the Company recognized unrealized losses of $188 million and realized gains of approximately $23 million on the condensed consolidated statements of income related to these investments. The Company recognized no unrealized or realized losses or gains during the three months ended March 31, 2021.3.    Loan ReceivablesThe Company has two loan portfolio segments: credit card loans and other loans.The Company's classes of receivables within the two portfolio segments are depicted in the following table (dollars in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |
|  | March 31,2022 |  | December 31,2021 |
| Credit card loans(1)(2) | $ | 73,783  |  |  | $ | 74,369  |  |
| Other loans(3) |  |  |  |
| Private student loans(4) | 10,314  |  |  | 10,113  |  |
| Personal loans | 6,904  |  |  | 6,936  |  |
| Other loans | 2,470  |  |  | 2,266  |  |
| Total other loans | 19,688  |  |  | 19,315  |  |
| Total loan receivables | 93,471  |  |  | 93,684  |  |
| Allowance for credit losses | (6,647) |  |  | (6,822) |  |
| Net loan receivables | $ | 86,824  |  |  | $ | 86,862  |  |
|  |  |  |  |

(1)Amounts include carrying values of $10.7 billion and $13.3 billion underlying investors' interest in trust debt at March 31, 2022 and December 31, 2021, respectively, and $13.3 billion and $11.9 billion in seller's interest at March 31, 2022 and December 31, 2021, respectively. See Note 4: Credit Card and Private Student Loan Securitization Activities for additional information.(2)Unbilled accrued interest receivable on credit card loans, which is presented as part of other assets in the Company's condensed consolidated statements of financial condition, was $424 million and $423 million at March 31, 2022 and December 31, 2021, respectively.(3)Accrued interest receivable on private student, personal and other loans, which is presented as part of other assets in the Company's condensed consolidated statements of financial condition, was $457 million, $41 million and $6 million, respectively, at March 31, 2022 and $443 million, $42 million and $6 million, respectively, at December 31, 2021.(4)Amounts include carrying values of $196 million and $207 million in loans pledged as collateral against the note issued from a private student loan securitization trust at March 31, 2022 and December 31, 2021, respectively. See Note 4: Credit Card and Private Student Loan Securitization Activities for additional information.9
