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Loans, Leases, and Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES
Loans, Leases, and Loans Held for Sale
Loans and leases are summarized as follows according to major portfolio segment and specific loan class:
(In millions)March 31,
2024		December 31,
2023
Loans held for sale$12 $53 
Commercial:
Commercial and industrial$16,519 $16,684 
Leasing388 383 
Owner-occupied9,295 9,219 
Municipal4,277 4,302 
Total commercial30,479 30,588 
Commercial real estate:
Construction and land development2,686 2,669 
Term10,892 10,702 
Total commercial real estate13,578 13,371 
Consumer:
Home equity credit line3,382 3,356 
1-4 family residential8,778 8,415 
Construction and other consumer real estate1,321 1,442 
Bankcard and other revolving plans439 474 
Other132 133 
Total consumer14,052 13,820 
Total loans and leases
$58,109 $57,779 
Loans and leases are measured and presented at their amortized cost basis, which includes net unamortized purchase premiums, discounts, and deferred loan fees and costs totaling $32 million and $37 million at March 31, 2024 and December 31, 2023, respectively. Amortized cost basis does not include accrued interest receivables of $300 million and $299 million at March 31, 2024 and December 31, 2023, respectively. These receivables are presented in the consolidated balance sheet within the “Other assets” line item.
Municipal loans generally include loans to state and local governments (“municipalities”) with the debt service being repaid from general funds or pledged revenues of the municipal entity, or to private commercial entities or 501(c)(3) not-for-profit entities utilizing a pass-through municipal entity to achieve favorable tax treatment.
Land acquisition and development loans included in the construction and land development loan portfolio were $237 million at March 31, 2024 and $219 million at December 31, 2023.
Loans with a carrying value of $38.7 billion at March 31, 2024 and $36.3 billion at December 31, 2023 have been pledged at the Federal Reserve (“FRB”) and the Federal Home Loan Bank (“FHLB”) of Des Moines as collateral for current and potential borrowings.
At the time of origination, we determine the classification of loans as either held for investment or held for sale. Loans held for sale are measured at fair value or the lower of cost or fair value and primarily consist of (1) commercial real estate (“CRE”) loans that are sold into securitization entities, and (2) conforming residential mortgages that are generally sold to U.S. government agencies. The following schedule presents loans added to, or sold from, the held for sale category during the periods presented:
Three Months Ended
March 31,
(In millions)20242023
Loans added to held for sale$129 $86 
Loans sold from held for sale170 89 
Occasionally, we have continuing involvement in the sold loans in the form of servicing rights or guarantees. The principal balance of sold loans for which we retain servicing was $0.5 billion and $0.4 billion at March 31, 2024 and December 31, 2023, respectively. Income from sold loans, excluding servicing, was $1 million for the three months ended March 31, 2024, and $5 million for the three months ended March 31, 2023. Other income from loans sold includes fair value adjustments on loans that are included in “Capital markets fees” on the consolidated statement of income.
Allowance for Credit Losses
The allowance for credit losses (“ACL”), which consists of the allowance for loan and lease losses (“ALLL”) and the reserve for unfunded lending commitments (“RULC”), represents our estimate of current expected credit losses related to the loan and lease portfolio and unfunded lending commitments as of the balance sheet date. For additional information regarding our policies and methodologies used to estimate the ACL, see Note 6 of our 2023 Form 10-K.
The ACL for AFS and HTM debt securities is estimated separately from loans. For HTM securities, the ACL is estimated consistent with the approach for loans measured at amortized cost. See Note 5 of our 2023 Form 10-K for further discussion of our methodology used to estimate the ACL on AFS and HTM debt securities.
Changes in the ACL are summarized as follows:
Three Months Ended March 31, 2024
(In millions)CommercialCommercial
real estate		ConsumerTotal
Allowance for loan losses
Balance at beginning of period$302 $241 $141 $684 
Provision for loan losses(2)57 (34)21 
Gross loan and lease charge-offs10 — 4 14 
Recoveries6 1 1 8 
Net loan and lease charge-offs (recoveries)4 (1)3 6 
Balance at end of period$296 $299 $104 $699 
Reserve for unfunded lending commitments
Balance at beginning of period$19 $17 $9 $45 
Provision for unfunded lending commitments— (7)(1)(8)
Balance at end of period$19 $10 $8 $37 
Total allowance for credit losses at end of period
Allowance for loan losses$296 $299 $104 $699 
Reserve for unfunded lending commitments19 10 8 37 
Total allowance for credit losses$315 $309 $112 $736 
Three Months Ended March 31, 2023
(In millions)CommercialCommercial real estateConsumerTotal
Allowance for loan losses
Balance at beginning of period$300 $152 $120 $572 
Provision for loan losses10 8 28 46 
Gross loan and lease charge-offs3 — 4 7 
Recoveries6 — 1 7 
Net loan and lease charge-offs (recoveries)(3)— 3 — 
Balance at end of period$313 $160 $145 $618 
Reserve for unfunded lending commitments
Balance at beginning of period$16 $33 $12 $61 
Provision for unfunded lending commitments3 (5)1 (1)
Balance at end of period$19 $28 $13 $60 
Total allowance for credit losses at end of period
Allowance for loan losses$313 $160 $145 $618 
Reserve for unfunded lending commitments19 28 13 60 
Total allowance for credit losses$332 $188 $158 $678 
Nonaccrual Loans
Loans are generally placed on nonaccrual status when payment in full of principal and interest is not expected, or the loan is 90 days or more past due as to principal or interest, unless the loan is both well-secured and in the process of collection. Factors we consider in determining whether a loan is placed on nonaccrual include delinquency status, collateral value, borrower or guarantor financial statement information, bankruptcy status, and other information which would indicate that the full and timely collection of interest and principal is uncertain.
A nonaccrual loan may be returned to accrual status when (1) all delinquent interest and principal become current in accordance with the terms of the loan agreement, (2) the loan, if secured, is well-secured, (3) the borrower has paid according to the contractual terms for a minimum of six months, and (4) an analysis of the borrower indicates a reasonable assurance of the borrower's ability and willingness to maintain payments.
The amortized cost basis of nonaccrual loans is summarized as follows:
March 31, 2024
Amortized cost basisTotal amortized cost basis
(In millions)with no allowancewith allowanceRelated allowance
Commercial:
Commercial and industrial$7 $103 $110 $25 
Leasing— 2 2 1 
Owner-occupied13 7 20 1 
Total commercial20 112 132 27 
Commercial real estate:
Construction and land development— 1 1 — 
Term34 8 42 1 
Total commercial real estate34 9 43 1 
Consumer:
Home equity credit line4 23 27 4 
1-4 family residential8 36 44 6 
Bankcard and other revolving plans— 1 1 1 
Other— 1 1 — 
Total consumer loans12 61 73 11 
Total$66 $182 $248 $39 

December 31, 2023
Amortized cost basisTotal amortized cost basis
(In millions)with no allowancewith allowanceRelated allowance
Commercial:
Commercial and industrial$11 $71 $82 $30 
Leasing— 2 2 1 
Owner-occupied12 8 20 1 
Total commercial23 81 104 32 
Commercial real estate:
Construction and land development22 — 22 — 
Term37 2 39 1 
Total commercial real estate59 2 61 1 
Consumer:
Home equity credit line1 16 17 5 
1-4 family residential8 32 40 5 
Total consumer loans9 48 57 10 
Total$91 $131 $222 $43 
For accruing loans, interest is accrued and interest payments are recognized into interest income according to the contractual loan agreement. For nonaccruing loans, the accrual of interest is discontinued, any uncollected or accrued interest is reversed from interest income in a timely manner (generally within one month), and any payments received on these loans are not recognized into interest income, but are applied as a reduction to the principal outstanding. When the collectability of the amortized cost basis for a nonaccrual loan is no longer in doubt, then interest payments may be recognized in interest income on a cash basis. For the three months ended March 31, 2024 and 2023, there was no interest income recognized on a cash basis during the period the loans were on nonaccrual.
The amount of accrued interest receivables reversed from interest income during the periods presented is summarized by loan portfolio segment as follows:
Three Months Ended
March 31,
(In millions)20242023
Commercial$3 $2 
Commercial real estate1 1 
Consumer1 — 
Total$5 $3 
Past Due Loans
Closed-end loans with payments scheduled monthly are reported as past due when the borrower is in arrears for two or more monthly payments. Similarly, open-end credits, such as bankcard and other revolving credit plans, are reported as past due when the minimum payment has not been made for two or more billing cycles. Other multi-payment obligations (i.e., quarterly, semi-annual, etc.), single payment, and demand notes, are reported as past due when either principal or interest is due and unpaid for a period of 30 days or more.
Past due loans (accruing and nonaccruing) are summarized as follows:
March 31, 2024
(In millions)Current30-89 days
past due		90+ days
past due		Total
past due		Total
loans		Accruing
loans
90+ days
past due
Nonaccrual
loans
that are
current 1
Commercial:
Commercial and industrial$16,480 $17 $22 $39 $16,519 $2 $87 
Leasing386 2 — 2 388 — — 
Owner-occupied9,288 5 2 7 9,295 — 18 
Municipal4,276 1 — 1 4,277 — — 
Total commercial30,430 25 24 49 30,479 2 105 
Commercial real estate:
Construction and land development
2,682 3 1 4 2,686 — — 
Term10,818 44 30 74 10,892 — 3 
Total commercial real estate13,500 47 31 78 13,578 — 3 
Consumer:
Home equity credit line3,361 11 10 21 3,382 — 14 
1-4 family residential8,740 15 23 38 8,778 — 16 
Construction and other consumer real estate
1,321 — — — 1,321 — — 
Bankcard and other revolving plans
436 2 1 3 439 1 — 
Other131 1 — 1 132 — 1 
Total consumer loans13,989 29 34 63 14,052 1 31 
Total$57,919 $101 $89 $190 $58,109 $3 $139 
December 31, 2023
(In millions)Current30-89 days
past due		90+ days
past due		Total
past due		Total
loans		Accruing
loans
90+ days
past due
Nonaccrual
loans
that are
current 1
Commercial:
Commercial and industrial$16,631 $38 $15 $53 $16,684 $1 $65 
Leasing381 2 — 2 383 — — 
Owner-occupied9,206 11 2 13 9,219 1 18 
Municipal4,301 1 — 1 4,302 — — 
Total commercial30,519 52 17 69 30,588 2 83 
Commercial real estate:
Construction and land development
2,645 2 22 24 2,669 — — 
Term10,661 14 27 41 10,702 — 3 
Total commercial real estate13,306 16 49 65 13,371 — 3 
Consumer:
Home equity credit line3,334 17 5 22 3,356 — 9 
1-4 family residential8,375 17 23 40 8,415 — 13 
Construction and other consumer real estate
1,442 — — — 1,442 — — 
Bankcard and other revolving plans
468 5 1 6 474 1 — 
Other132 1 — 1 133 — — 
Total consumer loans13,751 40 29 69 13,820 1 22 
Total$57,576 $108 $95 $203 $57,779 $3 $108 
1 Represents nonaccrual loans that are not past due more than 30 days; however, full payment of principal and interest is not expected.
Credit Quality Indicators
In addition to the nonaccrual and past due criteria, we also analyze loans using loan risk-grading systems, which vary based on the size and type of credit risk exposure. The internal risk grades assigned to loans follow our definition of Pass, Special Mention, Substandard, and Doubtful, which are consistent with published definitions of regulatory risk classifications.
•Pass – A Pass asset is higher-quality and does not fit any of the other categories described below. The likelihood of loss is considered low.
•Special Mention – A Special Mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in our credit position at some future date.
•Substandard – A Substandard asset is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have well-defined weaknesses and are characterized by the distinct possibility that we may sustain some loss if deficiencies are not corrected.
•Doubtful – A Doubtful asset has all the weaknesses inherent in a Substandard asset with the added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable.
The balance of loans classified as Doubtful was $5 million at March 31, 2024, compared with zero at December 31, 2023.
For consumer loans and for CRE loans with commitments greater than $1 million, we generally assign internal risk grades similar to those described previously based on automated rules that depend on refreshed credit scores, payment performance, and other risk indicators. These are generally assigned either a Pass, Special Mention, or Substandard grade, and are reviewed as we identify information that might warrant a grade change.
The following schedule presents the amortized cost basis of loans and leases categorized by year of origination and by credit quality classification as monitored by management. The schedule also summarizes the current period gross charge-offs by year of origination.
March 31, 2024
Term loansRevolving loans amortized cost basisRevolving loans converted to term loans amortized cost basis
Amortized cost basis by year of origination
(In millions)
2024
2023
2022
2021
2020
PriorTotal
Commercial:
Commercial and industrial
Pass$361 $2,617 $2,200 $1,133 $568 $968 $7,978 $166 $15,991 
Special Mention— 7 90 20 3 4 72 2 198 
Accruing Substandard19 30 9 13 5 40 100 4 220 
Nonaccrual— 4 32 1 2 47 18 6 110 
Total commercial and industrial380 2,658 2,331 1,167 578 1,059 8,168 178 16,519 
Gross charge-offs— 1 3 1 — — 4 1 10 
Leasing
Pass39 94 116 42 26 57 — — 374 
Special Mention— 2 8 1 1 — — — 12 
Accruing Substandard— — — — — — — — — 
Nonaccrual— — 2 — — — — — 2 
Total leasing39 96 126 43 27 57 — — 388 
Gross charge-offs— — — — — — — — — 
Owner-occupied
Pass248 1,126 1,852 1,979 975 2,524 209 50 8,963 
Special Mention— 5 9 21 14 25 15 5 94 
Accruing Substandard6 10 31 28 20 115 8 — 218 
Nonaccrual— — 1 1 7 11 — — 20 
Total owner-occupied254 1,141 1,893 2,029 1,016 2,675 232 55 9,295 
Gross charge-offs— — — — — — — — — 
Municipal
Pass121 598 1,056 1,014 599 855 2 3 4,248 
Special Mention— — — — — — — — — 
Accruing Substandard— 15 — 6 3 5 — — 29 
Nonaccrual— — — — — — — — — 
Total municipal121 613 1,056 1,020 602 860 2 3 4,277 
Gross charge-offs— — — — — — — — — 
Total commercial794 4,508 5,406 4,259 2,223 4,651 8,402 236 30,479 
Total commercial gross charge-offs— 1 3 1 — — 4 1 10 
Commercial real estate:
Construction and land development
Pass95 613 933 273 35 12 501 124 2,586 
Special Mention— — 8 70 — — — — 78 
Accruing Substandard— 19 1 — 1 — — — 21 
Nonaccrual— — — — — — 1 — 1 
Total construction and land development95 632 942 343 36 12 502 124 2,686 
Gross charge-offs— — — — — — — — — 
Term
Pass431 1,735 2,375 1,680 1,286 2,136 286 109 10,038 
Special Mention95 74 183 103 109 4 — 10 578 
Accruing Substandard41 69 30 12 17 30 — 35 234 
Nonaccrual— 4 26 — — 12 — — 42 
Total term567 1,882 2,614 1,795 1,412 2,182 286 154 10,892 
Gross charge-offs— — — — — — — — — 
Total commercial real estate662 2,514 3,556 2,138 1,448 2,194 788 278 13,578 
Total commercial real estate gross charge-offs— — — — — — — — — 
March 31, 2024
Term loansRevolving loans amortized cost basisRevolving loans converted to term loans amortized cost basis
Amortized cost basis by year of origination
(In millions)
2024
2023
2022
2021
2020
PriorTotal
Consumer:
Home equity credit line
Pass— — — — — — 3,256 95 3,351 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — 4 — 4 
Nonaccrual— — — — — — 21 6 27 
Total home equity credit line— — — — — — 3,281 101 3,382 
Gross charge-offs— — — — — — — — — 
1-4 family residential
Pass196 819 2,448 1,890 976 2,405 — — 8,734 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — — — — 
Nonaccrual— 1 4 5 2 32 — — 44 
Total 1-4 family residential196 820 2,452 1,895 978 2,437 — — 8,778 
Gross charge-offs— — — — — 1 — — 1 
Construction and other consumer real estate
Pass12 272 907 110 10 10 — — 1,321 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — — — — 
Nonaccrual— — — — — — — — — 
Total construction and other consumer real estate12 272 907 110 10 10 — — 1,321 
Gross charge-offs— — — — — — — — — 
Bankcard and other revolving plans
Pass— — — — — — 435 1 436 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — 2 — 2 
Nonaccrual— — — — — — 1 — 1 
Total bankcard and other revolving plans— — — — — — 438 1 439 
Gross charge-offs— — — — — — 2 — 2 
Other consumer
Pass22 51 33 16 5 4 — — 131 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — — — — 
Nonaccrual— 1 — — — — — — 1 
Total other consumer22 52 33 16 5 4 — — 132 
Gross charge-offs— — — — — 1 — — 1 
Total consumer230 1,144 3,392 2,021 993 2,451 3,719 102 14,052 
Total consumer gross charge-offs— — — — — 2 2 — 4 
Total loans$1,686 $8,166 $12,354 $8,418 $4,664 $9,296 $12,909 $616 $58,109 
Total gross charge-offs$— $1 $3 $1 $— $2 $6 $1 $14 
December 31, 2023
Term loansRevolving loans amortized cost basisRevolving loans converted to term loans amortized cost basis
Amortized cost basis by year of origination
(In millions)
2023
2022
2021
2020
2018PriorTotal
Commercial:
Commercial and industrial
Pass$2,654 $2,420 $1,204 $639 $494 $598 $7,973 $151 $16,133 
Special Mention8 98 34 2 20 37 103 — 302 
Accruing Substandard11 18 7 2 19 8 99 3 167 
Nonaccrual5 36 1 2 11 1 21 5 82 
Total commercial and industrial2,678 2,572 1,246 645 544 644 8,196 159 16,684 
Gross charge-offs1 10 6 — — 2 24 2 45
Leasing
Pass104 125 47 29 45 18 — — 368 
Special Mention2 9 1 1 — — — — 13 
Accruing Substandard— — — — — — — — — 
Nonaccrual— 2 — — — — — — 2 
Total leasing106 136 48 30 45 18 — — 383 
Gross charge-offs— — — — — — — — — 
Owner-occupied
Pass1,080 1,945 2,020 1,002 721 1,907 212 52 8,939 
Special Mention2 5 17 5 17 15 — — 61 
Accruing Substandard10 31 29 21 16 90 2 — 199 
Nonaccrual— 1 1 7 3 8 — — 20 
Total owner-occupied1,092 1,982 2,067 1,035 757 2,020 214 52 9,219 
Gross charge-offs— — — — — — — — — 
Municipal
Pass601 1,080 1,069 623 382 512 — 3 4,270 
Special Mention7 — — — — 6 — — 13 
Accruing Substandard8 — 6 3 1 1 — — 19 
Nonaccrual— — — — — — — — — 
Total municipal616 1,080 1,075 626 383 519 — 3 4,302 
Gross charge-offs— — — — — — — — — 
Total commercial4,492 5,770 4,436 2,336 1,729 3,201 8,410 214 30,588 
Total commercial gross charge-offs1 10 6 — — 2 24 2 45 
Commercial real estate:
Construction and land development
Pass553 938 355 56 7 4 518 127 2,558 
Special Mention— — 29 30 — — — — 59 
Accruing Substandard23 2 — 5 — — — — 30 
Nonaccrual— — — — 21 — 1 — 22 
Total construction and land development576 940 384 91 28 4 519 127 2,669 
Gross charge-offs— — — — 1 — — — 1 
Term
Pass1,861 2,385 1,833 1,449 804 1,438 238 110 10,118 
Special Mention55 108 65 78 44 6 — — 356 
Accruing Substandard79 18 12 16 5 24 — 35 189 
Nonaccrual— 26 — — 3 10 — — 39 
Total term1,995 2,537 1,910 1,543 856 1,478 238 145 10,702 
Gross charge-offs— 2 — — — — — — 2 
Total commercial real estate2,571 3,477 2,294 1,634 884 1,482 757 272 13,371 
Total commercial real estate gross charge-offs— 2 — — 1 — — — 3 
December 31, 2023
Term loansRevolving loans amortized cost basisRevolving loans converted to term loans amortized cost basis
Amortized cost basis by year of origination
(In millions)
2023
2022
2021
2020
2018PriorTotal
Consumer:
Home equity credit line
Pass— — — — — — 3,237 97 3,334 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — 4 1 5 
Nonaccrual— — — — — — 15 2 17 
Total home equity credit line— — — — — — 3,256 100 3,356 
Gross charge-offs— — — — — — 3 — 3 
1-4 family residential
Pass814 2,264 1,823 988 594 1,891 — — 8,374 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — 1 — — 1 
Nonaccrual— 3 3 3 4 27 — — 40 
Total 1-4 family residential814 2,267 1,826 991 598 1,919 — — 8,415 
Gross charge-offs— — — — — 2 — — 2 
Construction and other consumer real estate
Pass212 1,002 200 15 7 6 — — 1,442 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — — — — 
Nonaccrual— — — — — — — — — 
Total construction and other consumer real estate212 1,002 200 15 7 6 — — 1,442 
Gross charge-offs— — — — — — — — — 
Bankcard and other revolving plans
Pass— — — — — — 471 1 472 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — 2 — 2 
Nonaccrual— — — — — — — — — 
Total bankcard and other revolving plans— — — — — — 473 1 474 
Gross charge-offs— — — — — — 9 — 9 
Other consumer
Pass66 37 18 6 4 2 — — 133 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — — — — 
Nonaccrual— — — — — — — — — 
Total other consumer66 37 18 6 4 2 — — 133 
Gross charge-offs— — — — — — — — — 
Total consumer1,092 3,306 2,044 1,012 609 1,927 3,729 101 13,820 
Total consumer gross charge-offs— — — — — 2 12 — 14 
Total loans$8,155 $12,553 $8,774 $4,982 $3,222 $6,610 $12,896 $587 $57,779 
Total gross charge-offs$1 $12 $6 $— $1 $4 $36 $2 $62 
Loan Modifications
Loans may be modified in the normal course of business for competitive reasons or to strengthen our collateral position. Loan modifications may also occur when the borrower experiences financial difficulty and needs temporary or permanent relief from the original contractual terms of the loan. For loans that have been modified with a borrower experiencing financial difficulty, we use the same credit loss estimation methods that we use for the
rest of the loan portfolio. These methods incorporate the post-modification loan terms, as well as defaults and charge-offs associated with historical modified loans. All nonaccruing loans more than $1 million are evaluated individually, regardless of modification.
We consider many factors in determining whether to agree to a loan modification and we seek a solution that will both minimize potential loss to us and attempt to help the borrower. We evaluate borrowers’ current and forecasted future cash flows, their ability and willingness to make current contractual or proposed modified payments, the value of the underlying collateral (if applicable), the possibility of obtaining additional security or guarantees, and the potential costs related to a repossession or foreclosure and the subsequent sale of the collateral.
A modified loan on nonaccrual will generally remain on nonaccrual until the borrower has proven the ability to perform under the modified structure for a minimum of six months, and there is evidence that such payments can and are likely to continue as agreed. Performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual at the time of modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual.
On an ongoing basis, we monitor the performance of all modified loans according to their modified terms. The amortized cost of modified loans that had a payment default during the three months ended March 31, 2024 and 2023, which were still in default at period end, and were within 12 months or less of being modified was approximately $18 million, primarily commercial real estate loans, and less than $1 million, respectively.
The amortized cost of loans to borrowers experiencing financial difficulty that were modified during the period, by loan class and modification type, is summarized in the following schedule:
Three Months Ended March 31, 2024
Amortized cost associated with
the following modification types:
(Dollar amounts in millions)Interest
rate reduction		Maturity
or term
extension		Principal
forgiveness		Payment
deferral
Multiple modification types 1
Total 2
Percentage of total loans 3
Commercial:
Commercial and industrial$— $26 $— $— $4 $30 0.2 %
Owner-occupied— 3 — — — 3 — 
Total commercial— 29 — — 4 33 0.1 
Commercial real estate:
Construction and land development
— 1 — — — 1 — 
Term— 83 — — — 83 0.8 
Total commercial real estate— 84 — — — 84 0.6 
Consumer:
Home equity credit line— — — — 1 1 — 
1-4 family residential— — 2 — 2 4 — 
Bankcard and other revolving plans
— — — — — — — 
Other— 1 — — — 1 0.8 
Total consumer loans— 1 2 — 3 6 — 
Total$— $114 $2 $— $7 $123 0.2 %
Three Months Ended March 31, 2023
Amortized cost associated with
the following modification types:
(Dollar amounts in millions)Interest
rate reduction		Maturity
or term
extension		Principal
forgiveness		Payment
deferral
Multiple modification types 1
Total 2
Percentage of total loans 3
Commercial:
Commercial and industrial$— $36 $— $— $— $36 0.2 %
Owner-occupied4 6 — — — 10 0.1 
Total commercial4 42 — — — 46 0.2 
Commercial real estate:
Construction and land development
— — — — — — — 
Term— 49 — — — 49 0.5 
Total commercial real estate— 49 — — — 49 0.4 
Consumer:
Home equity credit line— — — — — — — 
1-4 family residential— — — — 1 1 — 
Bankcard and other revolving plans
— 1 — — — 1 0.2 
Other— — — — — — — 
Total consumer loans— 1 — — 1 2 — 
Total$4 $92 $— $— 1 $97 0.2 %
1 Includes modifications that resulted from a combination of interest rate reduction, maturity or term extension, principal forgiveness, and payment deferral modifications.
2 Unfunded lending commitments related to loans modified to borrowers experiencing financial difficulty totaled $3 million and $8 million at March 31, 2024 and March 31, 2023, respectively.
3 Amounts less than 0.05% are rounded to zero.
The financial impact of loan modifications to borrowers experiencing financial difficulty is summarized in the following schedules:
Three Months Ended
March 31, 2024		Three Months Ended
March 31, 2023
Weighted-average interest rate reduction (in percentage points)Weighted-average term extension
(in months)		Weighted-average interest rate reduction (in percentage points)Weighted-average term extension
(in months)
Commercial:
Commercial and industrial0.1 %13— %10
Owner-occupied— 584.4 5
Total commercial0.1 174.4 9
Commercial real estate:
Construction and land development
— 14— 6
Term— 13— 9
Total commercial real estate— 13— 9
Consumer: 1
Home equity credit line6.8 38— 0
1-4 family residential1.3 761.3 110
Bankcard and other revolving plans
— 0— 65
Other— 71— 0
Total consumer loans4.7 641.3 84
Total weighted average financial impact1.3 %154.0 %10
1 Primarily relates to a small number of loans within each consumer loan class.
Loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023 did not result in principal forgiveness for any class of loan for each respective period.
The following schedule presents the aging of loans to borrowers experiencing financial difficulty that were modified on or after April 1, 2023 through March 31, 2024, presented by portfolio segment and loan class:
March 31, 2024
(In millions)Current30-89 days
past due		90+ days
past due		Total
past due		Total
amortized cost of loans
Commercial:
Commercial and industrial$62 $— $6 $6 $68 
Owner-occupied10 — — — 10 
Municipal8 — — — 8 
Total commercial80 — 6 6 86 
Commercial real estate:
Construction and land development
23 1 1 2 25 
Term199 17 4 21 220 
Total commercial real estate222 18 5 23 245 
Consumer:
Home equity credit line2 — — — 2 
1-4 family residential2 — 2 2 4 
Bankcard and other revolving plans
— — — — — 
Other1 — — — 1 
Total consumer loans5 — 2 2 7 
Total$307 $18 $13 $31 $338 
The following schedule presents the aging of loans to borrowers experiencing financial difficulty that were modified on or after January 1, 2023, the date we adopted ASU 2022-02, through March 31, 2023, presented by portfolio segment and loan class:
March 31, 2023
(In millions)Current30-89 days
past due		90+ days
past due		Total
past due		Total
amortized cost of loans
Commercial:
Commercial and industrial$20 $16 $— $16 $36 
Owner-occupied10 — — — 10 
Municipal— — — — — 
Total commercial30 16 — 16 46 
Commercial real estate:
Construction and land development
— — — — — 
Term49 — — — 49 
Total commercial real estate49 — — — 49 
Consumer:
Home equity credit line— — — — — 
1-4 family residential— 1 — 1 1 
Bankcard and other revolving plans
1 — — — 1 
Other— — — — — 
Total consumer loans1 1 — 1 2 
Total$80 $17 $— $17 $97 
Collateral-Dependent Loans
When a loan is individually evaluated for expected credit losses, we estimate a specific reserve for the loan based on (1) the projected present value of the loan’s future cash flows discounted at the loan’s effective interest rate, (2) the observable market price of the loan, or (3) the fair value of the loan’s underlying collateral.
Select information on loans for which the borrower is experiencing financial difficulties and repayment is expected to be provided substantially through the operation or sale of the underlying collateral, including the type of collateral and the extent to which the collateral secures the loans, is summarized as follows:
March 31, 2024
(Dollar amounts in millions)Amortized costMajor types of collateral
Weighted average LTV 1
Commercial:
Owner-occupied$7 Hospital51%
Commercial real estate:
Construction and land development1 Lots / Homes107%
Term31 Office Building86%
Consumer:
Home equity credit line3 Residential21%
Total$42 
December 31, 2023
(Dollar amounts in millions)Amortized costMajor types of collateral
Weighted average LTV 1
Commercial:
Owner-occupied$7 Hospital17%
Commercial real estate:
Construction and land development22 Office Building92%
Term28 Office Building87%
Consumer:
Home equity credit line— 
Total$57 
1 The fair value is based on the most recent appraisal or other collateral evaluation.
Foreclosed Residential Real Estate
The balance of foreclosed residential real estate property was less than $1 million at March 31, 2024, compared with zero at December 31, 2023. The amortized cost basis of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure was $11 million for both periods.