XML 22 R11.htm IDEA: XBRL DOCUMENT v3.25.1
Loans and leases and the allowance for credit losses
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Loans and leases and the allowance for credit losses
A summary of current, past due and nonaccrual loans as of March 31, 2025 and December 31, 2024 follows:
(Dollars in millions)Current30-89 Days
Past Due		Accruing Loans Past Due 90 Days or MoreNonaccrualTotal (a) (b)
March 31, 2025
Commercial and industrial$59,671 $256 $7 $662 $60,596 
Real estate:   
Commercial (c)19,351 351 — 394 20,096 
Residential builder and developer (d)819 6 — 1 826 
Other commercial construction4,867 50 — 28 4,945 
Residential (e)22,053 579 368 284 23,284 
Consumer:   
Home equity lines and loans4,450 28 — 78 4,556 
Recreational finance12,794 93 — 26 12,913 
Automobile5,064 52 — 11 5,127 
Other2,134 32 9 56 2,231 
Total$131,203 $1,447 $384 $1,540 $134,574 
December 31, 2024
Commercial and industrial$60,374 $399 $12 $696 $61,481 
Real estate:   
Commercial (c)20,054 255 3 468 20,780 
Residential builder and developer830 3 — 2 835 
Other commercial construction5,018 65 — 66 5,149 
Residential (e)21,853 719 315 279 23,166 
Consumer:   
Home equity lines and loans4,482 29 — 81 4,592 
Recreational finance12,429 104 — 31 12,564 
Automobile4,724 58 — 12 4,794 
Other2,134 23 8 55 2,220 
Total$131,898 $1,655 $338 $1,690 $135,581 
__________________________________________________________________________________
(a)Balances include net discounts, comprised of unamortized premiums, discounts and net deferred loan fees and costs of $265 million and $277 million at March 31, 2025 and December 31, 2024, respectively.
(b)Balances exclude accrued interest receivable of $603 million and $628 million at March 31, 2025 and December 31, 2024, respectively, which is included as Accrued interest and other assets in the Company's Consolidated Balance Sheet.
(c)Commercial real estate loans held for sale were $192 million at March 31, 2025 and $310 million at December 31, 2024.
(d)Residential builder and developer loans held for sale were $693 million at March 31, 2025.
(e)One-to-four family residential mortgage loans held for sale were $179 million at March 31, 2025 and $211 million at December 31, 2024.
The amount of foreclosed property held by the Company, predominantly consisting of residential real estate, was $34 million and $35 million at March 31, 2025 and December 31, 2024, respectively. There were $177 million and $173 million at March 31, 2025 and December 31, 2024, respectively, of loans secured by residential real estate that were in the process of foreclosure. Of all loans in the process of foreclosure at March 31, 2025, approximately 41% were government guaranteed.
At March 31, 2025, approximately $21.3 billion of commercial and industrial loans, $14.4 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 $12.7 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. 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 further described in notes 4 and 11, loans and leases totaling $2.1 billion and $1.5 billion at March 31, 2025 and December 31, 2024, respectively, were held in special purpose trusts to settle the obligations of certain asset-backed notes issued by those trusts which have been included in the Company's consolidated financial statements.
Credit quality indicators
The Company utilizes a loan grading system to differentiate risk amongst its commercial and industrial loans and commercial real estate loans. The following table summarizes the loan grades applied at March 31, 2025 to the various classes of the Company’s commercial and industrial loans and commercial real estate loans and gross charge-offs for those types of loans for the three-month period ended March 31, 2025 by origination year.
 Term Loans by Origination YearRevolving
Loans		Revolving Loans Converted to Term
Loans		Total
(Dollars in millions)20252024202320222021Prior
Commercial and industrial:
Pass$2,222 $8,230 $5,812 $5,456 $2,918 $6,474 $25,358 $94 $56,564 
Criticized accrual29 272 393 403 188 588 1,461 36 3,370 
Criticized nonaccrual— 11 66 102 41 270 154 18 662 
Total commercial and industrial$2,251 $8,513 $6,271 $5,961 $3,147 $7,332 $26,973 $148 $60,596 
Gross charge-offs three months ended March 31, 2025$— $3 $8 $9 $2 $5 $23 $— $50 
Real estate:
Commercial:
Pass$538 $402 $1,492 $1,310 $1,196 $11,051 $447 $— $16,436 
Criticized accrual— 39 352 560 279 2,029 7 — 3,266 
Criticized nonaccrual— 1 1 55 25 311 1 — 394 
Total commercial real estate$538 $442 $1,845 $1,925 $1,500 $13,391 $455 $— $20,096 
Gross charge-offs three months ended March 31, 2025$— $— $— $— $— $22 $— $— $22 
Residential builder and developer:
Pass$124 $327 $171 $41 $11 $14 $66 $— $754 
Criticized accrual1 18 22 30 — — — — 71 
Criticized nonaccrual— 1 — — — — — — 1 
Total residential builder and developer$125 $346 $193 $71 $11 $14 $66 $— $826 
Gross charge-offs three months ended March 31, 2025$— $— $— $— $— $— $— $— $— 
Other commercial construction:
Pass$4 $165 $1,407 $982 $213 $500 $39 $— $3,310 
Criticized accrual— 2 126 729 309 435 6 — 1,607 
Criticized nonaccrual— — 1 16 1 10 — — 28 
Total other commercial construction$4 $167 $1,534 $1,727 $523 $945 $45 $— $4,945 
Gross charge-offs three months ended March 31, 2025$— $— $— $— $— $— $— $— $— 
The Company considers repayment performance a significant indicator of credit quality for its residential real estate loan and consumer loan portfolios. A summary of loans in accrual and nonaccrual status at March 31, 2025 for the various classes of the Company’s residential real estate loans and consumer loans and gross charge-offs for those types of loans for the three-month period ended March 31, 2025 by origination year follows:
 Term Loans by Origination YearRevolving
Loans		Revolving Loans Converted to Term
Loans		 Total
(Dollars in millions)20252024202320222021Prior
Residential real estate:
Current$776 $2,031 $1,317 $4,347 $3,432 $10,044 $106 $— $22,053 
30-89 days past due— 11 15 94 62 397 — — 579 
Accruing loans past due 90 days or more— 3 12 44 75 234 — — 368 
Nonaccrual— 1 4 38 17 222 2 — 284 
Total residential real estate$776 $2,046 $1,348 $4,523 $3,586 $10,897 $108 $— $23,284 
Gross charge-offs three months ended March 31, 2025$— $— $— $— $— $2 $— $— $2 
Consumer:  
Home equity lines and loans:  
Current$— $— $— $— $1 $88 $3,065 $1,296 $4,450 
30-89 days past due— — — — — 1 — 27 28 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual— — — — — 3 — 75 78 
Total home equity lines and loans$— $— $— $— $1 $92 $3,065 $1,398 $4,556 
Gross charge-offs three months ended March 31, 2025$— $— $— $— $— $— $— $1 $1 
Recreational finance:  
Current$995 $3,701 $2,075 $1,956 $1,589 $2,478 $— $— $12,794 
30-89 days past due1 13 17 15 16 31 — — 93 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual— 4 6 4 4 8 — — 26 
Total recreational finance$996 $3,718 $2,098 $1,975 $1,609 $2,517 $— $— $12,913 
Gross charge-offs three months ended March 31, 2025$— $5 $8 $7 $7 $13 $— $— $40 
Automobile: 
Current$471 $2,250 $772 $715 $582 $274 $— $— $5,064 
30-89 days past due— 13 13 11 9 6 — — 52 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual— 3 2 2 2 2 — — 11 
Total automobile$471 $2,266 $787 $728 $593 $282 $— $— $5,127 
Gross charge-offs three months ended March 31, 2025$— $3 $3 $3 $2 $1 $— $— $12 
Other:  
Current$103 $222 $134 $90 $64 $30 $1,490 $1 $2,134 
30-89 days past due2 2 2 1 — — 24 1 32 
Accruing loans past due 90 days or more— — — — — — 9 — 9 
Nonaccrual1 1 1 1 — — 52 — 56 
Total other$106 $225 $137 $92 $64 $30 $1,575 $2 $2,231 
Gross charge-offs three months ended March 31, 2025$1 $6 $3 $1 $1 $1 $20 $— $33 
Total loans and leases at March 31, 2025$5,267 $17,723 $14,213 $17,002 $11,034 $35,500 $32,287 $1,548 $134,574 
Total gross charge-offs for the three months ended
   March 31, 2025
$1 $17 $22 $20 $12 $44 $43 $1 $160 
The following table summarizes the loan grades applied at December 31, 2024 to the various classes of the Company’s commercial and industrial loans and commercial real estate loans by origination year.
Term Loans by Origination YearRevolving
Loans		Revolving Loans Converted to Term
Loans		 
(Dollars in millions)20242023202220212020PriorTotal
Commercial and industrial: 
 Pass$9,021 $6,454 $5,845 $3,258 $1,534 $5,147 $26,262 $79 $57,600 
 Criticized accrual189 385 402 210 75 528 1,359 37 3,185 
 Criticized nonaccrual11 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 
Real estate: 
Commercial: 
 Pass$674 $1,477 $1,358 $1,222 $1,774 $9,611 $413 $— $16,529 
 Criticized accrual39 389 665 253 591 1,839 7 — 3,783 
 Criticized nonaccrual1 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 
Residential builder and developer: 
 Pass$380 $236 $40 $12 $4 $10 $60 $— $742 
 Criticized accrual15 42 34 — — — — — 91 
 Criticized nonaccrual1 — — — — 1 — — 2 
Total residential builder and developer$396 $278 $74 $12 $4 $11 $60 $— $835 
Other commercial construction: 
 Pass$108 $1,395 $1,091 $269 $175 $379 $42 $— $3,459 
 Criticized accrual42 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 
A summary of loans in accrual and nonaccrual status at December 31, 2024 for the various classes of the Company’s residential real estate loans and consumer loans by origination year follows:
Term Loans by Origination YearRevolving
Loans		Revolving Loans Converted to Term
Loans		Total
(Dollars in millions)20242023202220212020Prior
Residential real estate:
Current$2,264 $1,354 $4,394 $3,488 $2,376 $7,874 $103 $— $21,853 
30-89 days past due12 9 111 77 38 472 — — 719 
Accruing loans past due 90 days or more1 7 39 47 20 201 — — 315 
Nonaccrual— 2 27 16 5 226 3 — 279 
Total residential real estate$2,277 $1,372 $4,571 $3,628 $2,439 $8,773 $106 $— $23,166 
Consumer:
Home equity lines and loans:
Current$— $— $— $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 
Recreational finance:
Current$3,918 $2,203 $2,044 $1,661 $1,100 $1,503 $— $— $12,429 
30-89 days past due13 18 15 20 15 23 — — 104 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual3 6 6 5 4 7 — — 31 
Total recreational finance$3,934 $2,227 $2,065 $1,686 $1,119 $1,533 $— $— $12,564 
Automobile:
Current$2,264 $775 $740 $632 $220 $93 $— $— $4,724 
30-89 days past due11 13 13 12 5 4 — — 58 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual2 2 3 2 1 2 — — 12 
Total automobile$2,277 $790 $756 $646 $226 $99 $— $— $4,794 
Other:
Current$259 $152 $102 $71 $16 $18 $1,515 $1 $2,134 
30-89 days past due4 2 1 1 — — 14 1 23 
Accruing loans past due 90 days or more— — — — — — 8 — 8 
Nonaccrual2 1 1 — — — 51 — 55 
Total other$265 $155 $104 $72 $16 $18 $1,588 $2 $2,220 
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 
Allowance for credit losses
For purposes of determining the level of the allowance for credit losses, the Company evaluates its loan and lease portfolios by type. Changes in the allowance for credit losses for the three months ended March 31, 2025 and 2024 were as follows:
Commercial
and Industrial		Real Estate   
(Dollars in millions)Commercial Residential Consumer Total
Three Months Ended March 31, 2025
Beginning balance$769 $599 $108 $708 $2,184 
Provision for credit losses22 30 (3)81 130 
Net charge-offs:
Charge-offs(50)(22)(2)(86)(160)
Recoveries21 3 2 20 46 
Net charge-offs(29)(19)— (66)(114)
Ending balance$762 $610 $105 $723 $2,200 
Three Months Ended March 31, 2024
Beginning balance$620 $764 $116 $629 $2,129 
Provision for credit losses137 9 2 52 200 
Net charge-offs:
Charge-offs(78)(25)(1)(59)(163)
Recoveries5 6 1 13 25 
Net charge-offs(73)(19)— (46)(138)
Ending balance$684 $754 $118 $635 $2,191 
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 March 31, 2025 and December 31, 2024, 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.
Changes in the amount of the allowance for credit losses reflect the outcome of the procedures described herein, including the impact of changes in macroeconomic forecasts as compared with previous forecasts, as well as the impact of portfolio concentrations, imprecision in economic forecasts, geopolitical conditions and other risk factors that might influence the loss estimation process.
The Company’s reserve for off-balance sheet credit exposures was not material at March 31, 2025 and December 31, 2024.
Information with respect to loans and leases that were considered nonaccrual at the beginning and end of the reporting period and the interest income recognized on such loans for the three-month periods ended March 31, 2025 and 2024 follows:
 Amortized Cost with AllowanceAmortized Cost without AllowanceTotalAmortized CostInterest Income Recognized
(Dollars in millions)March 31, 2025January 1, 2025Three Months
Ended
March 31,
2025
Commercial and industrial$522 $140 $662 $696 $6 
Real estate:     
Commercial341 53 394 468 7 
Residential builder and developer1 — 1 2 — 
Other commercial construction23 5 28 66 — 
Residential135 149 284 279 3 
Consumer:     
Home equity lines and loans36 42 78 81 2 
Recreational finance17 9 26 31 — 
Automobile8 3 11 12 — 
Other56 — 56 55 — 
Total$1,139 $401 $1,540 $1,690 $18 
(Dollars in millions)March 31, 2024January 1, 2024Three Months
Ended
March 31,
2024
Commercial and industrial$590 $274 $864 $670 $2 
Real estate:
Commercial379 476 855 869 6 
Residential builder and developer3 — 3 3 — 
Other commercial construction33 108 141 171 — 
Residential100 155 255 270 4 
Consumer:
Home equity lines and loans48 39 87 81 1 
Recreational finance18 12 30 36 — 
Automobile7 6 13 14 — 
Other54 — 54 52 — 
Total$1,232 $1,070 $2,302 $2,166 $13 
Loan modifications
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. The table that follows summarizes the Company’s loan modification activities to borrowers experiencing financial difficulty for the three-month periods ended March 31, 2025 and 2024:
Amortized Cost
(Dollars in millions)Term ExtensionOther (a)Combination of Modification Types (b)Total (c) (d)Percent of Total Loan Class
Three Months Ended March 31, 2025
Commercial and industrial$35 $2 $74 $111 .18 %
Real estate:
Commercial131 — — 131 .65 
Residential builder and developer— — — — — 
Other commercial construction225 — — 225 4.53 
Residential40 3 7 50 .22 
Consumer:
Home equity lines and loans— — — — — 
Recreational finance— — — — — 
Automobile— — — — — 
Other— — — — — 
Total$431 $5 $81 $517 .38 %
Three Months Ended March 31, 2024
Commercial and industrial$139 $45 $— $184 .32 %
Real estate:
Commercial267 — 3 270 1.07 
Residential builder and developer2 — — 2 .18 
Other commercial construction131 — — 131 2.11 
Residential45 5 1 51 .22 
Consumer:
Home equity lines and loans— — — — — 
Recreational finance— — — — — 
Automobile— — — — — 
Other— — — — — 
Total$584 $50 $4 $638 .47 %
__________________________________________________________________________________
(a)Predominantly payment deferrals.
(b)Predominantly term extensions combined with payment deferrals or interest rate reductions for the three-month periods ended March 31, 2025 and 2024, respectively.
(c)Includes approximately $36 million and $44 million of loans guaranteed by government-related entities (predominantly first lien residential mortgage loans) for the three-month periods ended March 31, 2025 and 2024, respectively.
(d)Excludes unfunded commitments to extend credit totaling $9 million and $29 million for the three-month periods ended March 31, 2025 and 2024, respectively.
The financial effects of the modifications for the three-month periods ended March 31, 2025 and 2024 include an increase in the weighted-average remaining term for commercial and industrial loans of 0.8 years and 0.7 years, respectively, for commercial real estate loans, inclusive of residential builder and development loans and other commercial construction loans, of 0.8 years for each period, and for residential real estate loans of 9.0 years and 11.4 years, respectively.
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 loans 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 March 31, 2025 and 2024, of loans that were modified during the twelve-month period ended March 31, 2025 and 2024.
Payment Status (Amortized Cost) (a)
(Dollars in millions)Current30-89 Days Past Due
Past Due 90 Days or More (b)
Total
Twelve Months Ended March 31, 2025
Commercial and industrial$293 $3 $17 $313 
Real estate:
Commercial419 49 — 468 
Residential builder and developer1 — — 1 
Other commercial construction289 30 9 328 
Residential (c)104 35 41 180 
Consumer:
Home equity lines and loans1 — — 1 
Recreational finance1 — — 1 
Automobile— — — — 
Other— — — — 
Total$1,108 $117 $67 $1,292 
Twelve Months Ended March 31, 2024
Commercial and industrial$310 $7 $10 $327 
Real estate:
Commercial715 33 24 772 
Residential builder and developer14 39 — 53 
Other commercial construction534 5 — 539 
Residential (c)118 37 30 185 
Consumer:
Home equity lines and loans2 — — 2 
Recreational finance— — — — 
Automobile— — — — 
Other— — — — 
Total$1,693 $121 $64 $1,878 
__________________________________________________________________________________
(a) As of respective period end.
(b) Predominantly loan modifications with term extensions.
(c) Includes loans guaranteed by government-related entities classified as 30 to 89 days past due of $29 million and $30 million and as past due 90 days or more of $34 million and $27 million at March 31, 2025 and 2024, respectively.