
(Dollars in millions)	Current		30-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Nonaccrual		Total (a)
December 31, 2024
Commercial and industrial	$	60,374	$	399	$	12	$	696	$	61,481
Real estate:
Commercial (b)	20,054		255		3		468		20,780
Residential builder and developer	830		3		—		2		835
Other commercial construction	5,018		65		—		66		5,149
Residential (c)	21,853		719		315		279		23,166
Consumer:
Home equity lines and loans	4,482		29		—		81		4,592
Recreational finance	12,429		104		—		31		12,564
Automobile	4,724		58		—		12		4,794
Other	2,134		23		8		55		2,220
Total	$	131,898	$	1,655	$	338	$	1,690	$	135,581

December 31, 2023
Commercial and industrial	$	56,091	$	238	$	11	$	670	$	57,010
Real estate:
Commercial (b)	24,072		311		25		869		25,277
Residential builder and developer	1,065		5		—		3		1,073
Other commercial construction	6,322		159		1		171		6,653
Residential (c)	21,905		794		295		270		23,264
Consumer:
Home equity lines and loans	4,528		40		—		81		4,649
Recreational finance	9,935		87		—		36		10,058
Automobile	3,918		60		—		14		3,992
Other	2,003		30		7		52		2,092
Total	$	129,839	$	1,724	$	339	$	2,166	$	134,068

At December 31, 2024, approximately $20.7 billion of commercial and industrial loans, $14.6 billion of commercial real estate loans, $18.6 billion of one-to-four family residential real estate loans, $2.7 billion of home equity loans and lines of credit and $13.1 billion of other consumer loans were pledged to secure outstanding borrowings and available lines of credit from the FHLB and the FRB of New York as described in note 8. As further described in notes 8 and 18 at December 31, 2024, approximately $1.5 billion of loans and leases remain in special purpose trusts as collateral for certain asset-backed notes issued by M&T Bank.

The Company utilizes a loan grading system to differentiate risk amongst its commercial and industrial loans and commercial real estate loans. Loans with a lower expectation of default are assigned one of ten possible "pass" loan grades and are generally ascribed lower loss factors when determining the allowance for credit losses. Loans with an elevated level of credit risk are designated as "criticized" and are ascribed a higher loss factor when determining the allowance for credit losses. Criticized loans may be designated as "nonaccrual" if the Company no longer expects to collect all amounts according to the contractual terms of the loan agreement or the loan is delinquent 90 days or more.

Line of business personnel in different geographic locations with support from and review by the Company’s credit risk personnel review and reassign loan grades based on their detailed knowledge of individual borrowers and their judgment of the impact on such borrowers resulting from changing conditions in their respective regions. Factors considered in assigning loan grades include borrower-specific information related to expected future cash flows and operating results, collateral values, geographic location, financial condition and performance, payment status, and other information. The Company’s policy is that, at least annually, updated financial information be obtained from commercial borrowers associated with pass grade loans and additional analysis performed. On a quarterly basis, the Company’s credit personnel reviews criticized commercial and industrial loans and commercial real estate loans greater than $5 million to determine the appropriateness of the assigned loan grade, including whether the loan should be reported as accruing or nonaccruing.


	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term Loans
(Dollars in millions)	2024		2023		2022		2021		2020		Prior						Total
Commercial and industrial:

Pass	$	9,021	$	6,454	$	5,845	$	3,258	$	1,534	$	5,147	$	26,262	$	79	$	57,600
Criticized accrual	189		385		402		210		75		528		1,359		37		3,185
Criticized nonaccrual	11		56		98		41		59		220		194		17		696
Total commercial and industrial	$	9,221	$	6,895	$	6,345	$	3,509	$	1,668	$	5,895	$	27,815	$	133	$	61,481
Gross charge-offs year ended December 31, 2024	$	7	$	33	$	60	$	23	$	30	$	37	$	126	$	—	$	316
Real estate:
Commercial:

Pass	$	674	$	1,477	$	1,358	$	1,222	$	1,774	$	9,611	$	413	$	—	$	16,529
Criticized accrual	39		389		665		253		591		1,839		7		—		3,783
Criticized nonaccrual	1		1		53		26		17		369		1		—		468
Total commercial real estate	$	714	$	1,867	$	2,076	$	1,501	$	2,382	$	11,819	$	421	$	—	$	20,780
Gross charge-offs year ended December 31, 2024	$	—	$	4	$	—	$	1	$	5	$	104	$	—	$	—	$	114
Residential builder and developer:

Pass	$	380	$	236	$	40	$	12	$	4	$	10	$	60	$	—	$	742
Criticized accrual	15		42		34		—		—		—		—		—		91
Criticized nonaccrual	1		—		—		—		—		1		—		—		2
Total residential builder and developer	$	396	$	278	$	74	$	12	$	4	$	11	$	60	$	—	$	835
Gross charge-offs year ended December 31, 2024	$	—	$	—	$	—	$	—	$	—	$	3	$	—	$	—	$	3
Other commercial construction:

Pass	$	108	$	1,395	$	1,091	$	269	$	175	$	379	$	42	$	—	$	3,459
Criticized accrual	42		104		687		346		297		145		3		—		1,624
Criticized nonaccrual	—		—		17		33		—		16		—		—		66
Total other commercial construction	$	150	$	1,499	$	1,795	$	648	$	472	$	540	$	45	$	—	$	5,149
Gross charge-offs year ended December 31, 2024	$	—	$	—	$	2	$	—	$	—	$	13	$	2	$	—	$	17


	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term Loans
(Dollars in millions)	2024		2023		2022		2021		2020		Prior						Total
Residential:
Current	$	2,264	$	1,354	$	4,394	$	3,488	$	2,376	$	7,874	$	103	$	—	$	21,853
30-89 days past due	12		9		111		77		38		472		—		—		719
Accruing loans past due 90 days or more	1		7		39		47		20		201		—		—		315
Nonaccrual	—		2		27		16		5		226		3		—		279
Total residential	$	2,277	$	1,372	$	4,571	$	3,628	$	2,439	$	8,773	$	106	$	—	$	23,166
Gross charge-offs year ended December 31, 2024	$	—	$	—	$	—	$	—	$	—	$	6	$	—	$	—	$	6
Consumer:
Home equity lines and loans:
Current	$	—	$	—	$	—	$	2	$	2	$	91	$	3,085	$	1,302	$	4,482
30-89 days past due	—		—		—		—		—		2		—		27		29
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		2		—		79		81
Total home equity lines and loans	$	—	$	—	$	—	$	2	$	2	$	95	$	3,085	$	1,408	$	4,592
Gross charge-offs year ended December 31, 2024	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	4	$	4
Recreational finance:
Current	$	3,918	$	2,203	$	2,044	$	1,661	$	1,100	$	1,503	$	—	$	—	$	12,429
30-89 days past due	13		18		15		20		15		23		—		—		104
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	3		6		6		5		4		7		—		—		31
Total recreational finance	$	3,934	$	2,227	$	2,065	$	1,686	$	1,119	$	1,533	$	—	$	—	$	12,564
Gross charge-offs year ended December 31, 2024	$	8	$	20	$	24	$	20	$	16	$	27	$	—	$	—	$	115
Automobile:
Current	$	2,264	$	775	$	740	$	632	$	220	$	93	$	—	$	—	$	4,724
30-89 days past due	11		13		13		12		5		4		—		—		58
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	2		2		3		2		1		2		—		—		12
Total automobile	$	2,277	$	790	$	756	$	646	$	226	$	99	$	—	$	—	$	4,794
Gross charge-offs year ended December 31, 2024	$	3	$	9	$	9	$	7	$	3	$	3	$	—	$	—	$	34
Other:
Current	$	259	$	152	$	102	$	71	$	16	$	18	$	1,515	$	1	$	2,134
30-89 days past due	4		2		1		1		—		—		14		1		23
Accruing loans past due 90 days or more	—		—		—		—		—		—		8		—		8
Nonaccrual	2		1		1		—		—		—		51		—		55
Total other	$	265	$	155	$	104	$	72	$	16	$	18	$	1,588	$	2	$	2,220
Gross charge-offs year ended December 31, 2024	$	16	$	11	$	9	$	5	$	1	$	2	$	60	$	—	$	104
Total loans and leases at December 31, 2024	$	19,234	$	15,083	$	17,786	$	11,704	$	8,328	$	28,783	$	33,120	$	1,543	$	135,581
Total gross charge-offs for the year ended December 31, 2024	$	34	$	77	$	104	$	56	$	55	$	195	$	188	$	4	$	713


	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term Loans		Total
(Dollars in millions)	2023		2022		2021		2020		2019		Prior
Commercial and industrial:

Pass	$	8,689	$	8,087	$	4,800	$	2,248	$	2,169	$	4,843	$	22,345	$	70	$	53,251
Criticized accrual	292		279		277		142		127		481		1,460		31		3,089
Criticized nonaccrual	29		68		56		75		36		150		243		13		670
Total commercial and industrial	$	9,010	$	8,434	$	5,133	$	2,465	$	2,332	$	5,474	$	24,048	$	114	$	57,010
Gross charge-offs year ended December 31, 2023	$	10	$	45	$	18	$	13	$	10	$	19	$	17	$	—	$	132
Real estate:
Commercial:

Pass	$	2,048	$	1,742	$	1,367	$	2,011	$	3,059	$	8,491	$	440	$	—	$	19,158
Criticized accrual	227		891		465		456		966		2,238		7		—		5,250
Criticized nonaccrual	—		46		3		113		93		611		3		—		869
Total commercial real estate	$	2,275	$	2,679	$	1,835	$	2,580	$	4,118	$	11,340	$	450	$	—	$	25,277
Gross charge-offs year ended December 31, 2023	$	—	$	—	$	—	$	—	$	112	$	129	$	—	$	—	$	241
Residential builder and developer:

Pass	$	530	$	252	$	41	$	6	$	2	$	12	$	116	$	—	$	959
Criticized accrual	1		18		30		—		59		—		3		—		111
Criticized nonaccrual	—		—		3		—		—		—		—		—		3
Total residential builder and developer	$	531	$	270	$	74	$	6	$	61	$	12	$	119	$	—	$	1,073
Gross charge-offs year ended December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	—	$	2	$	—	$	2
Other commercial construction:

Pass	$	813	$	1,366	$	651	$	373	$	646	$	187	$	30	$	—	$	4,066
Criticized accrual	53		391		390		691		565		326		—		—		2,416
Criticized nonaccrual	—		14		10		46		50		49		2		—		171
Total other commercial construction	$	866	$	1,771	$	1,051	$	1,110	$	1,261	$	562	$	32	$	—	$	6,653
Gross charge-offs year ended December 31, 2023	$	—	$	—	$	—	$	—	$	3	$	7	$	—	$	—	$	10


	Term Loans by Origination Year												Revolving Loans		Revolving Loans Converted to Term Loans
(Dollars in millions)	2023		2022		2021		2020		2019		Prior						Total
Residential:
Current	$	1,726	$	4,709	$	3,732	$	2,543	$	1,215	$	7,885	$	95	$	—	$	21,905
30-89 days past due	18		120		88		52		28		488		—		—		794
Accruing loans past due 90 days or more	1		30		28		17		14		205		—		—		295
Nonaccrual	1		17		10		3		4		234		1		—		270
Total residential	$	1,746	$	4,876	$	3,858	$	2,615	$	1,261	$	8,812	$	96	$	—	$	23,264
Gross charge-offs year ended December 31, 2023	$	—	$	—	$	1	$	—	$	3	$	6	$	—	$	—	$	10
Consumer:
Home equity lines and loans:
Current	$	—	$	—	$	2	$	2	$	13	$	98	$	3,022	$	1,391	$	4,528
30-89 days past due	—		—		—		—		—		3		—		37		40
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		5		3		73		81
Total home equity lines and loans	$	—	$	—	$	2	$	2	$	13	$	106	$	3,025	$	1,501	$	4,649
Gross charge-offs year ended December 31, 2023	$	—	$	—	$	—	$	—	$	—	$	—	$	1	$	5	$	6
Recreational finance:
Current	$	2,653	$	2,338	$	1,857	$	1,286	$	781	$	1,020	$	—	$	—	$	9,935
30-89 days past due	11		16		19		14		11		16		—		—		87
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	3		5		8		6		5		9		—		—		36
Total recreational finance	$	2,667	$	2,359	$	1,884	$	1,306	$	797	$	1,045	$	—	$	—	$	10,058
Gross charge-offs year ended December 31, 2023	$	4	$	13	$	14	$	12	$	9	$	16	$	—	$	—	$	68
Automobile:
Current	$	1,063	$	1,096	$	1,047	$	427	$	198	$	87	$	—	$	—	$	3,918
30-89 days past due	8		15		17		9		6		5		—		—		60
Accruing loans past due 90 days or more	—		—		—		—		—		—		—		—		—
Nonaccrual	2		3		3		2		2		2		—		—		14
Total automobile	$	1,073	$	1,114	$	1,067	$	438	$	206	$	94	$	—	$	—	$	3,992
Gross charge-offs year ended December 31, 2023	$	2	$	6	$	7	$	3	$	2	$	3	$	—	$	—	$	23
Other:
Current	$	250	$	176	$	118	$	33	$	13	$	18	$	1,392	$	3	$	2,003
30-89 days past due	3		3		2		—		—		1		20		1		30
Accruing loans past due 90 days or more	—		—		—		—		—		—		7		—		7
Nonaccrual	2		1		1		—		—		—		48		—		52
Total other	$	255	$	180	$	121	$	33	$	13	$	19	$	1,467	$	4	$	2,092
Gross charge-offs year ended December 31, 2023	$	18	$	17	$	7	$	3	$	3	$	10	$	20	$	—	$	78
Total loans and leases at December 31, 2023	$	18,423	$	21,683	$	15,025	$	10,555	$	10,062	$	27,464	$	29,237	$	1,619	$	134,068
Total gross charge-offs for the year ended December 31, 2023	$	34	$	81	$	47	$	31	$	142	$	190	$	40	$	5	$	570


	Commercial and Industrial		Real Estate				Consumer		Total
(Dollars in millions)			Commercial		Residential
2024
Beginning balance	$	620	$	764	$	116	$	629	$	2,129
Provision for credit losses	429		(89)		(8)		278		610
Net charge-offs:
Charge-offs	(316)		(134)		(6)		(257)		(713)
Recoveries	36		58		6		58		158
Net charge-offs	(280)		(76)		—		(199)		(555)
Ending balance	$	769	$	599	$	108	$	708	$	2,184

2023
Beginning balance	$	568	$	611	$	115	$	631	$	1,925
Provision for credit losses	132		394		4		115		645
Net charge-offs:
Charge-offs	(132)		(253)		(10)		(175)		(570)
Recoveries	52		12		7		58		129
Net charge-offs	(80)		(241)		(3)		(117)		(441)
Ending balance	$	620	$	764	$	116	$	629	$	2,129

2022
Beginning balance	$	335	$	506	$	72	$	556	$	1,469
Allowance on acquired PCD loans	48		49		2		—		99
Provision for credit losses (a)	244		93		43		137		517
Net charge-offs:
Charge-offs (b)	(119)		(60)		(12)		(112)		(303)
Recoveries	60		23		10		50		143
Net charge-offs	(59)		(37)		(2)		(62)		(160)
Ending balance	$	568	$	611	$	115	$	631	$	1,925

Despite the allocation in the preceding tables, the allowance for credit losses is general in nature and is available to absorb losses from any loan or lease type. In determining the allowance for credit losses, accruing loans with similar risk characteristics are generally evaluated collectively. The Company utilizes statistically developed models to project principal balances over the remaining contractual lives of the loan portfolios and to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators, including loan grade and borrower repayment performance, can inform the models, which have been statistically developed based on historical correlations of credit losses with prevailing economic metrics, including unemployment, GDP and real estate prices. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model

performance to actual realized results. At each of December 31, 2024 and 2023, the Company utilized a reasonable and supportable forecast period of two years. Subsequent to this forecast period the Company reverted, ratably over a one-year period, to historical loss experience to inform its estimate of losses for the remaining contractual life of each portfolio. In determining the allowance for credit losses, the Company may adjust forecasted loss estimates for inherent limitations or biases in the models as well as for other factors that may not be adequately considered in its quantitative methodologies including the impact of portfolio concentrations, imprecision in its economic forecasts, geopolitical conditions and other risk factors that might influence its loss estimation process.

The Company also estimates losses attributable to specific troubled credits identified through both normal and targeted credit review processes. The amounts of specific loss components in the Company’s loan and lease portfolios are determined through a loan-by-loan analysis of larger balance commercial and industrial loans and commercial real estate loans that are in nonaccrual status. Such loss estimates are typically based on expected future cash flows, collateral values and other factors that may impact the borrower’s ability to pay. To the extent that those loans are collateral-dependent, they are evaluated based on the fair value of the loan’s collateral as estimated at or near the financial statement date. As the quality of a loan deteriorates to the point of designating the loan as "criticized nonaccrual," the process of obtaining updated collateral valuation information is usually initiated, unless it is not considered warranted given factors such as the relative size of the loan, the characteristics of the collateral or the age of the last valuation. In those cases where current appraisals may not yet be available, prior appraisals are utilized with adjustments, as deemed necessary, for estimates of subsequent declines in values as determined by line of business and/or loan workout personnel. Those adjustments are reviewed and assessed for reasonableness by the Company’s credit risk personnel. Accordingly, for real estate collateral securing larger nonaccrual commercial and industrial loans and commercial real estate loans, estimated collateral values are generally based on current appraisals and estimates of value. For non-real estate loans, collateral is assigned a discounted estimated liquidation value and, depending on the nature of the collateral, is verified through field exams or other procedures. In assessing collateral, real estate and non-real estate values are reduced by an estimate of selling costs.

For residential real estate loans, including home equity loans and lines of credit, the excess of the loan balance over the net realizable value of the property collateralizing the loan is charged-off when the loan becomes 150 days delinquent. That charge-off is based on recent indications of value from external parties that are generally obtained shortly after a loan becomes nonaccrual. Loans to consumers that file for bankruptcy are generally charged-off to estimated net collateral value shortly after the Company is notified of such filings. When evaluating individual home equity loans and lines of credit for charge-off and for purposes of estimating losses in determining the allowance for credit losses, the Company gives consideration to the required repayment of any first lien positions related to collateral property. Other consumer loans are generally charged-off when the loans are 91 to 180 days past due, depending on whether the loan is collateralized and the status of repossession activities with respect to such collateral.


	Amortized Cost with Allowance		Amortized Cost without Allowance		Total		Amortized Cost		Interest Income Recognized

(Dollars in millions)	December 31, 2024						January 1, 2024		Year Ended December 31, 2024
Commercial and industrial	$	516	$	180	$	696	$	670	$	23
Real estate:
Commercial	328		140		468		869		43
Residential builder and developer	2		—		2		3		1
Other commercial construction	60		6		66		171		4
Residential	137		142		279		270		15
Consumer:
Home equity lines and loans	36		45		81		81		6
Recreational finance	21		10		31		36		—
Automobile	9		3		12		14		—
Other	54		1		55		52		—
Total	$	1,163	$	527	$	1,690	$	2,166	$	92

(Dollars in millions)	December 31, 2023						January 1, 2023		Year Ended December 31, 2023
Commercial and industrial	$	397	$	273	$	670	$	504	$	22
Real estate:
Commercial	288		581		869		1,240		29
Residential builder and developer	3		—		3		1		—
Other commercial construction	71		100		171		125		2
Residential	100		170		270		350		17
Consumer:
Home equity lines and loans	42		39		81		85		7
Recreational finance	24		12		36		45		1
Automobile	9		5		14		40		—
Other	52		—		52		49		—
Total	$	986	$	1,180	$	2,166	$	2,439	$	78

(Dollars in millions)	December 31, 2022						January 1, 2022		Year Ended December 31, 2022
Commercial and industrial	$	212	$	292	$	504	$	371	$	26
Real estate:
Commercial	366		874		1,240		919		14
Residential builder and developer	1		—		1		3		2
Other commercial construction	59		66		125		111		4
Residential	195		155		350		479		26
Consumer:
Home equity lines and loans	43		42		85		70		4
Recreational finance	37		8		45		28		1
Automobile	35		5		40		34		—
Other	49		—		49		45		—
Total	$	997	$	1,442	$	2,439	$	2,060	$	77

During the normal course of business, the Company modifies loans to maximize recovery efforts from borrowers experiencing financial difficulty. Such loan modifications typically include extensions of maturity dates but may also include other modified terms. Those modified loans may be considered nonaccrual if the Company does not expect to collect the contractual cash flows owed under the loan agreement. On January 1, 2023, the Company adopted amended guidance that eliminated the accounting guidance for troubled debt restructurings while expanding disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The amended guidance also requires disclosure of current period gross charge-offs by year of origination. The table that follows summarizes the Company’s loan modification activities to borrowers experiencing financial difficulty for the years ended December 31, 2024 and 2023:


	Amortized Cost (a)
(Dollars in millions)	Term Extension		Other (b)		Combination of Modification Types (c)		Total (d) (e)		Percent of Total Loan Class
Year Ended December 31, 2024
Commercial and industrial	$	212	$	84	$	7	$	303	.49	%
Real estate:
Commercial	509		2		4		515		2.48
Residential builder and developer	2		—		—		2		.29
Other commercial construction	130		—		—		130		2.53
Residential	146		14		17		177		.76
Consumer:
Home equity lines and loans	1		—		1		2		.04
Recreational finance	1		—		—		1		.01
Automobile	—		—		—		—		—
Other	—		—		—		—		—
Total	$	1,001	$	100	$	29	$	1,130	.83%


Year Ended December 31, 2023
Commercial and industrial	$	169	$	27	$	2	$	198	.35	%
Real estate:
Commercial	610		—		41		651		2.57
Residential builder and developer	69		2		—		71		6.63
Other commercial construction	480		—		8		488		7.34
Residential	148		23		6		177		.76
Consumer:
Home equity lines and loans	—		—		1		1		.03
Recreational finance	—		—		—		—		—
Automobile	—		—		—		—		—
Other	—		—		—		—		—
Total	$	1,476	$	52	$	58	$	1,586	1.18%

__________________________________________________________________________________

The financial effects of the modifications for the year ended December 31, 2024 include an increase in the weighted-average remaining term for commercial and industrial loans of 0.9 years, for commercial real estate loans, inclusive of residential builder and development loans and other commercial construction loans, of 1.0 years and for residential real estate loans of 10.4 years. The financial effects of the modifications for the year ended December 31, 2023 include an increase in the weighted-average remaining term for commercial and industrial loans of 1.3 years, for commercial real estate loans, inclusive of residential builder and development loans and other commercial construction loans, of 1.1 years and for residential real estate loans of 10.6 years.

Modified loans to borrowers experiencing financial difficulty are subject to the allowance for credit losses methodology described herein, including the use of models to inform credit loss estimates and, to the extent larger balance commercial and industrial and commercial real estate loans are in nonaccrual status, a loan-by-loan analysis of expected credit losses on those individual loans. The following table summarizes the payment status, at December 31, 2024 and 2023, of loans to borrowers experiencing financial difficulty that were modified during 2024 and 2023.


	Payment Status (Amortized Cost) (a)
(Dollars in millions)	Current		30-89 Days Past Due		Past Due 90 Days or More (b)		Total
Year Ended December 31, 2024
Commercial and industrial	$	276	$	14	$	13	$	303
Real estate:
Commercial	478		37		—		515
Residential builder and developer	1		—		1		2
Other commercial construction	101		25		4		130
Residential (c)	94		41		42		177
Consumer:
Home equity lines and loans	2		—		—		2
Recreational finance	1		—		—		1
Automobile	—		—		—		—
Other	—		—		—		—
Total	$	953	$	117	$	60	$	1,130

Prior to January 1, 2023, if a borrower was experiencing financial difficulty such that the Company did not expect to collect the contractual cash flows owed under the original loan agreement and a concession in loan terms was granted, the Company considered the loan modification as a troubled debt restructuring. The table that follows summarizes the Company’s loan modification activities that were considered troubled debt restructurings for the year ended December 31, 2022. The table is not comparative to the preceding tables presenting loan modification activities to borrowers experiencing financial difficulty. The Company no longer designates modified loans as a troubled debt restructuring in conjunction with the adoption of amended accounting guidance on January 1, 2023.


				Post-modification (a)
(Dollars in millions)	Number	Pre- modification Recorded Investment		Principal Deferral		Other		Combination of Concession Types		Total















Year Ended December 31, 2022
Commercial and industrial	231	$	98	$	58	$	3	$	37	$	98
Real estate:
Commercial	12	25		9		—		16		25
Residential builder and developer	1	—		—		—		—		—
Other commercial construction	1	—		—		—		—		—
Residential	282	72		56		—		20		76
Consumer:
Home equity lines and loans	144	10		9		—		1		10
Recreational finance	729	28		28		—		—		28
Automobile	2,092	42		42		—		—		42
Other	149	1		1		—		—		1
Total	3,641	$	276	$	203	$	3	$	74	$	280

The Company provides financing and operating lease arrangements to commercial customers for construction and industrial equipment and machinery, railroad cars, commercial trucks and trailers, and aircraft. Certain leases contain payment schedules that are tied to variable interest rate indices. In general, early termination options are provided if the lessee is not in default, returns the leased equipment and pays an early termination fee. Additionally, options to purchase the underlying asset by the lessee are generally at the fair market value of the equipment.


	December 31,
(Dollars in millions)	2024		2023
Commercial leases:
Direct financing:
Lease payments receivable	$	2,710	$	2,431
Estimated residual value of leased assets (a)	296		274
Amounts representing interest	(339)		(248)
Investment in direct financing leases	2,667		2,457
Leveraged:
Lease payments receivable	41		57
Estimated residual value of leased assets	43		52
Amounts representing interest	(10)		(15)
Investment in leveraged leases	74		94
Total investment in financing leases	$	2,741	$	2,551
Deferred taxes payable arising from leveraged leases	$	25	$	36

Leased assets provided to customers under operating lease arrangements, net of accumulated depreciation, were $204 million at December 31, 2024 and $200 million at December 31, 2023, and were recorded as Accrued interest and other assets in the Company's Consolidated Balance Sheet. The Company, as a lessor, recognized operating lease income, inclusive of gains and losses on the disposal of leased assets, of $44 million, $56 million and $43 million for the years ended December 31, 2024, 2023 and 2022, respectively, in Other revenues from operations in the Consolidated Statement of Income.