Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2025

The composition of the loan portfolio, by class and underlying specific portfolio type, was as follows:


	March 31, 2025				December 31, 2024
(Dollars in Millions)	Amount		Percent of Total		Amount		Percent of Total
Commercial
Commercial	$	139,840	36.6	%	$	135,254	35.6	%
Lease financing	4,241		1.1		4,230		1.1
Total commercial	144,081		37.7		139,484		36.7
Commercial Real Estate
Commercial mortgages	38,064		10.0		38,619		10.2
Construction and development	10,270		2.7		10,240		2.7
Total commercial real estate	48,334		12.7		48,859		12.9
Residential Mortgages
Residential mortgages	113,112		29.6		112,806		29.7
Home equity loans, first liens	5,795		1.5		6,007		1.6
Total residential mortgages	118,907		31.1		118,813		31.3
Credit Card	29,223		7.7		30,350		8.0
Other Retail
Retail leasing	3,928		1.0		4,040		1.0
Home equity and second mortgages	13,540		3.6		13,565		3.6
Revolving credit	3,791		1.0		3,747		1.0
Installment	14,190		3.7		14,373		3.8
Automobile	5,825		1.5		6,601		1.7
Total other retail	41,274		10.8		42,326		11.1
Total loans	$	381,819	100.0	%	$	379,832	100.0	%

Activity in Allowance for Credit Losses by Portfolio Class

Activity in the allowance for credit losses by portfolio class was as follows:


Three Months Ended March 31 (Dollars in Millions)	Commercial		Commercial Real Estate		Residential Mortgages		Credit Card		Other Retail		Total Loans
2025
Balance at beginning of period	$	2,175	$	1,508	$	783	$	2,640	$	819	$	7,925
Add


Provision for credit losses	200		(80)		6		329		82		537
Deduct
Loans charged-off	187		25		4		386		88		690
Less recoveries of loans charged-off	(24)		(29)		(4)		(61)		(25)		(143)
Net loan charge-offs (recoveries)	163		(4)		—		325		63		547
Balance at end of period	$	2,212	$	1,432	$	789	$	2,644	$	838	$	7,915
2024
Balance at beginning of period	$	2,119	$	1,620	$	827	$	2,403	$	870	$	7,839
Add


Provision for credit losses	156		30		16		318		33		553
Deduct
Loans charged-off	139		34		4		337		81		595
Less recoveries of loans charged-off	(23)		(13)		(4)		(41)		(26)		(107)
Net loan charge-offs (recoveries)	116		21		—		296		55		488
Balance at end of period	$	2,159	$	1,629	$	843	$	2,425	$	848	$	7,904

Credit Quality Indicators

The following table provides a summary of loans charged-off by portfolio class and year of origination:


Three Months Ended March 31 (Dollars in Millions)	Commercial		Commercial Real Estate		Residential Mortgages		Credit Card(a)		Other Retail		Total Loans
2025
Originated in 2025	$	10	$	—	$	—	$	—	$	—	$	10
Originated in 2024	31		6		—		—		11		48
Originated in 2023	29		14		—		—		15		58
Originated in 2022	32		4		—		—		13		49
Originated in 2021	4		1		—		—		15		20
Originated prior to 2021	9		—		4		—		9		22
Revolving	72		—		—		386		25		483

Total charge-offs	$	187	$	25	$	4	$	386	$	88	$	690

2024
Originated in 2024	$	—	$	5	$	—	$	—	$	2	$	7
Originated in 2023	26		4		—		—		10		40
Originated in 2022	18		24		—		—		14		56
Originated in 2021	8		—		—		—		11		19
Originated in 2020	4		—		—		—		8		12
Originated prior to 2020	10		1		4		—		11		26
Revolving	73		—		—		337		25		435

Total charge-offs	$	139	$	34	$	4	$	337	$	81	$	595

Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended. Predominantly all current year and near term loan origination years for gross charge-offs relate to existing loans that have had recent maturity date, pricing or commitment amount amendments.

(a)Predominantly all credit card loans are considered revolving loans. Includes an immaterial amount of charge-offs related to revolving converted to term loans.

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:


	March 31, 2025										December 31, 2024
			Criticized										Criticized
(Dollars in Millions)	Pass		Special Mention		Classified(a)		Total Criticized		Total		Pass		Special Mention		Classified(a)		Total Criticized		Total
Commercial
Originated in 2025	$	16,275	$	62	$	240	$	302	$	16,577	$	—	$	—	$	—	$	—	$	—
Originated in 2024	50,854		473		874		1,347		52,201		57,578		503		1,034		1,537		59,115
Originated in 2023	15,423		152		378		530		15,953		19,128		173		564		737		19,865
Originated in 2022	17,944		127		344		471		18,415		19,718		231		370		601		20,319
Originated in 2021	4,410		12		58		70		4,480		4,677		60		92		152		4,829
Originated prior to 2021	6,039		146		273		419		6,458		6,812		76		143		219		7,031
Revolving(b)	29,017		320		660		980		29,997		27,344		169		812		981		28,325
Total commercial	139,962		1,292		2,827		4,119		144,081		135,257		1,212		3,015		4,227		139,484
Commercial real estate
Originated in 2025	3,190		6		387		393		3,583		—		—		—		—		—
Originated in 2024	8,731		212		1,384		1,596		10,327		9,652		261		1,772		2,033		11,685
Originated in 2023	4,880		26		742		768		5,648		5,213		42		760		802		6,015
Originated in 2022	8,241		304		1,073		1,377		9,618		9,047		661		913		1,574		10,621
Originated in 2021	5,883		150		216		366		6,249		6,515		100		196		296		6,811
Originated prior to 2021	9,947		201		680		881		10,828		10,822		148		608		756		11,578
Revolving	2,031		—		47		47		2,078		2,078		—		68		68		2,146
Revolving converted to term	3		—		—		—		3		3		—		—		—		3
Total commercial real estate	42,906		899		4,529		5,428		48,334		43,330		1,212		4,317		5,529		48,859
Residential mortgages(c)
Originated in 2025	1,906		—		—		—		1,906		—		—		—		—		—
Originated in 2024	9,993		—		2		2		9,995		10,291		—		—		—		10,291
Originated in 2023	8,661		—		13		13		8,674		8,764		—		11		11		8,775
Originated in 2022	28,220		—		49		49		28,269		28,484		—		43		43		28,527
Originated in 2021	34,316		—		34		34		34,350		34,694		—		35		35		34,729
Originated prior to 2021	35,437		—		276		276		35,713		36,211		—		280		280		36,491

Total residential mortgages	118,533		—		374		374		118,907		118,444		—		369		369		118,813
Credit card(d)	28,814		—		409		409		29,223		29,915		—		435		435		30,350
Other retail
Originated in 2025	1,456		—		—		—		1,456		—		—		—		—		—
Originated in 2024	6,899		—		6		6		6,905		7,398		—		3		3		7,401
Originated in 2023	3,685		—		10		10		3,695		3,966		—		9		9		3,975
Originated in 2022	3,696		—		11		11		3,707		4,085		—		11		11		4,096
Originated in 2021	5,755		—		12		12		5,767		6,537		—		14		14		6,551
Originated prior to 2021	5,091		—		20		20		5,111		5,543		—		21		21		5,564
Revolving	13,741		—		115		115		13,856		13,846		—		120		120		13,966
Revolving converted to term	737		—		40		40		777		731		—		42		42		773
Total other retail	41,060		—		214		214		41,274		42,106		—		220		220		42,326
Total loans	$	371,275	$	2,191	$	8,353	$	10,544	$	381,819	$	369,052	$	2,424	$	8,356	$	10,780	$	379,832
Total outstanding commitments	$	785,384	$	2,950	$	10,584	$	13,534	$	798,918	$	778,155	$	3,875	$	10,441	$	14,316	$	792,471

Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended. Predominately all current year and nearer term loan origination years for criticized loans relate to existing loans that have had recent maturity date, pricing or commitment amount amendments.

(a)Classified rating on consumer loans primarily based on delinquency status.

(b)Includes an immaterial amount of revolving converted to term loans.

(c)At March 31, 2025, $2.5 billion of GNMA loans 90 days or more past due and $1.4 billion of modified GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $2.3 billion and $1.4 billion at December 31, 2024, respectively.

(d)Predominately all credit card loans are considered revolving loans. Includes an immaterial amount of revolving converted to term loans.

Loans by Portfolio Class, Including Delinquency Status

The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:


	Accruing
(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Nonperforming(b)		Total
March 31, 2025
Commercial	$	143,066	$	303	$	96	$	616	$	144,081
Commercial real estate	47,490		59		5		780		48,334
Residential mortgages(a)	118,242		295		229		141		118,907
Credit card	28,432		382		409		—		29,223
Other retail	40,862		207		57		148		41,274
Total loans	$	378,092	$	1,246	$	796	$	1,685	$	381,819
December 31, 2024
Commercial	$	138,362	$	356	$	96	$	670	$	139,484
Commercial real estate	47,948		78		9		824		48,859
Residential mortgages(a)	118,267		188		206		152		118,813
Credit card	29,487		428		435		—		30,350
Other retail	41,886		229		64		147		42,326
Total loans	$	375,950	$	1,279	$	810	$	1,793	$	379,832

(a)At March 31, 2025, $512 million of loans 30–89 days past due and $2.5 billion of loans 90 days or more past due purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $660 million and $2.3 billion at December 31, 2024, respectively.

(b)Substantially all nonperforming loans at March 31, 2025 and December 31, 2024, had an associated allowance for credit losses. The Company recognized interest income on nonperforming loans of $4 million and $5 million for the three months ended March 31, 2025 and 2024, respectively.

Loans Modified

The following table provides a summary of period-end balances of loans modified during the periods presented, by portfolio class and modification granted:


Three Months Ended March 31 (Dollars in Millions)	Interest Rate Reduction		Payment Delay		Term Extension		Multiple Modifications(a)		Total Modifications		Percent of Class Total
2025
Commercial	$	27	$	2	$	143	$	21	$	193	.1	%
Commercial real estate	—		—		242		3		245		.5
Residential mortgages(b)	—		281		2		5		288		.2
Credit card	134		3		—		—		137		.5
Other retail	2		7		30		4		43		.1
Total loans, excluding loans purchased from GNMA mortgage pools	163		293		417		33		906		.2
Loans purchased from GNMA mortgage pools(b)	—		380		104		123		607		.5
Total loans	$	163	$	673	$	521	$	156	$	1,513	.4	%
2024
Commercial	$	25	$	—	$	328	$	—	$	353	.3	%
Commercial real estate	—		—		282		50		332		.6
Residential mortgages(b)	—		20		5		2		27		—
Credit card	126		—		—		—		126		.5
Other retail	3		1		38		—		42		.1
Total loans, excluding loans purchased from GNMA mortgage pools	154		21		653		52		880		.2
Loans purchased from GNMA mortgage pools(b)	1		490		68		93		652		.6
Total loans	$	155	$	511	$	721	$	145	$	1,532	.4	%

(a)Includes $76 million of total loans receiving a payment delay and term extension, $65 million of total loans receiving an interest rate reduction and term extension and $15 million of total loans receiving an interest rate reduction, payment delay and term extension for the three months ended March 31, 2025, compared with $88 million, $53 million and $4 million for the three months ended March 31, 2024, respectively.

(b)Percent of class total amounts expressed as a percent of total residential mortgage loan balances.

The following table summarizes the effects of loan modifications made to borrowers on loans modified:


Three Months Ended March 31	Weighted-Average Interest Rate Reduction		Weighted-Average Months of Term Extension
2025
Commercial(a)	11.5	%	6
Commercial real estate	2.1		7
Residential mortgages	1.4		92
Credit card	16.1		—
Other retail	5.3		26
Loans purchased from GNMA mortgage pools	.5		97
2024
Commercial(a)	19.3	%	7
Commercial real estate	4.3		9
Residential mortgages	2.5		84
Credit card	16.4		—
Other retail	9.3		4
Loans purchased from GNMA mortgage pools	.4		114

Note: The weighted-average payment deferral for all portfolio classes was less than $1 million for the three months ended March 31, 2025 and 2024. Forbearance payments are required to be paid at the end of the original term loan.

(a)The weighted-average interest rate reduction was primarily driven by commercial cards.

Loans Modified by Delinquency Status

The following table provides a summary of loan balances as of March 31, which were modified during the prior twelve months, by portfolio class and delinquency status:


(Dollars in Millions)	Current		30-89 Days Past Due		90 Days or More Past Due		Total
2025
Commercial	$	472	$	18	$	130	$	620
Commercial real estate	755		13		238		1,006
Residential mortgages(a)	1,414		3		7		1,424
Credit card	310		68		38		416
Other retail	107		16		6		129
Total loans	$	3,058	$	118	$	419	$	3,595
2024
Commercial	$	498	$	16	$	83	$	597
Commercial real estate	712		2		281		995
Residential mortgages(a)	1,509		17		15		1,541
Credit card	275		67		34		376
Other retail	130		18		7		155
Total loans	$	3,124	$	120	$	420	$	3,664

(a)At March 31, 2025, $322 million of loans 30-89 days past due and $289 million of loans 90 days or more past due purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $333 million and $198 million at March 31, 2024 respectively.

Loans Modified During the year that Defaulted

The following table provides a summary of loans that defaulted (fully or partially charged-off or became 90 days or more past due) that were modified within twelve months prior to default:


Three Months Ended March 31 (Dollars in Millions)	Interest Rate Reduction		Payment Delay		Term Extension		Multiple Modifications(a)
2025
Commercial	$	9	$	—	$	16	$	—
Commercial real estate	—		—		—		—
Residential mortgages	—		1		—		—
Credit card	35		—		—		—
Other retail	1		—		4		—
Total loans, excluding loans purchased from GNMA mortgage pools	45		1		20		—
Loans purchased from GNMA mortgage pools	—		84		34		70
Total loans	$	45	$	85	$	54	$	70
2024
Commercial	$	6	$	—	$	—	$	—
Commercial real estate	—		—		—		—
Residential mortgages	—		5		3		2
Credit card	29		—		—		—
Other retail	—		1		6		—
Total loans, excluding loans purchased from GNMA mortgage pools	35		6		9		2
Loans purchased from GNMA mortgage pools	—		77		31		42
Total loans	$	35	$	83	$	40	$	44

(a)Includes $41 million of total loans receiving a payment delay and term extension, $27 million of total loans receiving an interest rate reduction and term extension, and $2 million of total loans receiving an interest rate reduction, payment delay and term extension for the three months ended March 31, 2025. Includes $43 million of total loans receiving a payment delay and term extension and $1 million of total loans receiving an interest rate reduction, payment delay and term extension for the three months ended March 31, 2024.