Loans and Related Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Summary of the Classification of Portfolio Segments

Commercial	Consumer
• Commercial and industrial	• Residential real estate
• Commercial real estate	• Home equity
• Equipment lease financing	• Automobile
	• Credit card
	• Education
	• Other consumer

Analysis of Loan Portfolio

Table 40 presents the composition and delinquency status of our loan portfolio at June 30, 2024 and December 31, 2023. Loan delinquencies include government insured or guaranteed loans and loans accounted for under the fair value option.

Table 40: Analysis of Loan Portfolio (a) (b)

	Accruing
Dollars in millions	Current or Less Than 30 Days Past Due			30-59 Days Past Due			60-89 Days Past Due			90 Days or More Past Due			Total Past Due (c)				Nonperforming Loans			Fair Value Option Nonaccrual Loans (d)			Total Loans (e)(f)
June 30, 2024
Commercial
Commercial and industrial	$	177,853		$	95		$	53		$	86		$	234			$	702					$	178,789
Commercial real estate	34,559			8			2			1			11				928						35,498
Equipment lease financing	6,514			19			6						25				16						6,555
Total commercial	218,926			122			61			87			270				1,646						220,842
Consumer
Residential real estate	45,984			278			91			155			524			(c)	275			$	400		47,183
Home equity	25,296			64			24						88				468			65			25,917
Automobile	14,607			92			22			6			120				93						14,820
Credit card	6,673			50			37			76			163				13						6,849
Education	1,654			27			15			36			78			(c)							1,732
Other consumer	4,049			12			9			8			29				8						4,086
Total consumer	98,263			523			198			281			1,002				857			465			100,587
Total	$	317,189		$	645		$	259		$	368		$	1,272			$	2,503		$	465		$	321,429
Percentage of total loans	98.68		%	0.20		%	0.08		%	0.11		%	0.40		%		0.78		%	0.14		%	100.00		%
December 31, 2023
Commercial
Commercial and industrial	$	176,796		$	104		$	45		$	76		$	225			$	559					$	177,580
Commercial real estate	34,685			7						9			16				735						35,436
Equipment lease financing	6,480			41			8						49				13						6,542
Total commercial	217,961			152			53			85			290				1,307						219,558
Consumer
Residential real estate	46,159			282			101			192			575			(c)	294			$	516		47,544
Home equity	25,533			63			27						90				458			69			26,150
Automobile	14,638			91			20			7			118				104						14,860
Credit card	6,991			54			39			86			179				10						7,180
Education	1,850			27			19			49			95			(c)							1,945
Other consumer	4,227			16			11			10			37				7						4,271
Total consumer	99,398			533			217			344			1,094				873			585			101,950
Total	$	317,359		$	685		$	270		$	429		$	1,384			$	2,180		$	585		$	321,508
Percentage of total loans	98.71		%	0.21		%	0.08		%	0.13		%	0.43		%		0.68		%	0.18		%	100.00		%

(a)Amounts in table represent loans held for investment and do not include any associated ALLL.

(b)The accrued interest associated with our loan portfolio totaled $1.5 billion at both June 30, 2024 and December 31, 2023. These amounts are included in Other assets on the Consolidated Balance Sheet.

(c)Past due loan amounts include government insured or guaranteed residential real estate loans and education loans totaling $0.2 billion and $0.1 billion at June 30, 2024. Comparable amounts at December 31, 2023 were $0.3 billion and $0.1 billion, respectively.

(d)Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policy criteria. Given that these loans are not accounted for at amortized cost, they have been excluded from the nonperforming loan population.

(e)Includes unearned income, unamortized deferred fees and costs on originated loans and premiums or discounts on purchased loans totaling $0.9 billion and $1.0 billion at June 30, 2024 and December 31, 2023, respectively.

(f)Collateral dependent loans totaled $1.6 billion and $1.4 billion at June 30, 2024 and December 31, 2023, respectively.

Nonperforming Assets

The following table presents our nonperforming assets as of June 30, 2024 and December 31, 2023:

Table 41: Nonperforming Assets

Dollars in millions	June 30, 2024			December 31, 2023
Nonperforming loans
Commercial	$	1,646		$	1,307
Consumer (a)	857			873
Total nonperforming loans (b)	2,503			2,180
OREO and foreclosed assets	34			36
Total nonperforming assets	$	2,537		$	2,216
Nonperforming loans to total loans	0.78		%	0.68		%
Nonperforming assets to total loans, OREO and foreclosed assets	0.79		%	0.69		%
Nonperforming assets to total assets	0.46		%	0.39		%

(a)Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.

(b)Nonperforming loans for which there is no related ALLL totaled $0.5 billion at both June 30, 2024 and December 31, 2023. This primarily includes loans with a fair value of collateral that exceeds the amortized cost basis.

Credit Quality Indicators By Loan Class

The following table presents credit quality indicators for our commercial loan classes:

Table 42: Commercial Credit Quality Indicators (a)

	Term Loans by Origination Year
June 30, 2024 In millions	2024			2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial
Pass Rated	$	11,419		$	18,080	$	19,842	$	6,104	$	5,190	$	14,021	$	92,363	$	695	$	167,714
Criticized	298			1,094		2,448		803		189		803		5,361		79		11,075
Total commercial and industrial loans	11,717			19,174		22,290		6,907		5,379		14,824		97,724		774		178,789
Gross charge-offs (b)	11		(c)	14		21		18		3		4		42		48		161
Commercial real estate
Pass Rated	1,113			5,125		8,166		2,759		1,761		10,946		420				30,290
Criticized	91			190		1,632		461		477		2,286		20		51		5,208
Total commercial real estate loans	1,204			5,315		9,798		3,220		2,238		13,232		440		51		35,498
Gross charge-offs (b)				5				2		1		161						169
Equipment lease financing
Pass Rated	746			1,392		1,281		591		580		1,590						6,180
Criticized	24			107		85		72		42		45						375
Total equipment lease financing loans	770			1,499		1,366		663		622		1,635						6,555
Gross charge-offs (b)				5		6		2		2		1						16
Total commercial loans	$	13,691		$	25,988	$	33,454	$	10,790	$	8,239	$	29,691	$	98,164	$	825	$	220,842
Total commercial gross charge-offs	$	11		$	24	$	27	$	22	$	6	$	166	$	42	$	48	$	346

	Term Loans by Origination Year
December 31, 2023 In millions	2023			2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial
Pass Rated	$	23,019		$	26,657	$	7,562	$	5,783	$	4,110	$	11,982	$	88,467	$	573	$	168,153
Criticized	838			1,781		739		331		281		698		4,708		51		9,427
Total commercial and industrial loans	23,857			28,438		8,301		6,114		4,391		12,680		93,175		624		177,580
Gross charge-offs (b)	25		(c)	32		33		8		3		26		105		12		244
Commercial real estate
Pass Rated	4,182			8,571		2,986		2,190		4,887		7,411		383				30,610
Criticized	155			1,300		455		490		622		1,753		51				4,826
Total commercial real estate loans	4,337			9,871		3,441		2,680		5,509		9,164		434				35,436
Gross charge-offs (b)								12		31		137						180
Equipment lease financing
Pass Rated	1,522			1,424		689		690		452		1,378						6,155
Criticized	90			81		81		51		35		49						387
Total equipment lease financing loans	1,612			1,505		770		741		487		1,427						6,542
Gross charge-offs (b)	4			4		4		4		1		1						18
Total commercial loans	$	29,806		$	39,814	$	12,512	$	9,535	$	10,387	$	23,271	$	93,609	$	624	$	219,558
Total commercial gross charge-offs	$	29		$	36	$	37	$	24	$	35	$	164	$	105	$	12	$	442

(a)Loans in our commercial portfolio are classified as Pass Rated or Criticized based on the regulatory definitions, which are driven by the PD and LGD ratings that we assign. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of June 30, 2024 and December 31, 2023.

(b)Gross charge-offs are presented on a year-to-date basis, as of the period end date.

(c)Includes charge-offs of deposit overdrafts.

Residential Real Estate and Home Equity

The following table presents credit quality indicators for our residential real estate and home equity loan classes:

Table 43: Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes

	Term Loans by Origination Year
June 30, 2024 In millions	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Residential real estate
Current estimated LTV ratios
Greater than 100%	$	5	$	39	$	133	$	68	$	30	$	33					$	308
Greater than or equal to 80% to 100%	507		838		1,256		740		199		147						3,687
Less than 80%	976		4,054		8,374		14,236		6,315		8,554						42,509
No LTV available			41				11				3						55
Government insured or guaranteed loans			14		21		15		64		510						624
Total residential real estate loans	$	1,488	$	4,986	$	9,784	$	15,070	$	6,608	$	9,247					$	47,183
Updated FICO scores
Greater than or equal to 780	$	813	$	3,411	$	7,691	$	12,061	$	4,889	$	5,190					$	34,055
720 to 779	601		1,030		1,581		2,160		1,042		1,684						8,098
660 to 719	71		286		399		594		346		827						2,523
Less than 660	2		111		84		150		110		733						1,190
No FICO score available	1		134		8		90		157		303						693
Government insured or guaranteed loans			14		21		15		64		510						624
Total residential real estate loans	$	1,488	$	4,986	$	9,784	$	15,070	$	6,608	$	9,247					$	47,183
Gross charge-offs (a)											$	2					$	2
Home equity (b)
Current estimated LTV ratios
Greater than 100%							$	2	$	12	$	17	$	336	$	356	$	723
Greater than or equal to 80% to 100%							5		34		32		1,068		1,631		2,770
Less than 80%							149		1,773		3,106		6,733		10,663		22,424
Total home equity loans							$	156	$	1,819	$	3,155	$	8,137	$	12,650	$	25,917
Updated FICO scores
Greater than or equal to 780							$	100	$	1,209	$	1,930	$	4,597	$	6,203	$	14,039
720 to 779							36		383		643		2,179		3,243		6,484
660 to 719							15		166		320		1,155		1,967		3,623
Less than 660							5		59		255		199		1,188		1,706
No FICO score available									2		7		7		49		65
Total home equity loans							$	156	$	1,819	$	3,155	$	8,137	$	12,650	$	25,917
Gross charge-offs (a)											$	1	$	9	$	9	$	19

(Continued from previous page)	Term Loans by Origination Year
December 31, 2023 In millions	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Residential real estate
Current estimated LTV ratios
Greater than 100%	$	15	$	139	$	79	$	31	$	10	$	28					$	302
Greater than or equal to 80% to 100%	1,665		1,928		955		221		69		92						4,930
Less than 80%	3,585		7,977		14,421		6,514		2,154		6,935						41,586
No LTV available	56				13						4						73
Government insured or guaranteed loans	14		20		16		66		37		500						653
Total residential real estate loans	$	5,335	$	10,064	$	15,484	$	6,832	$	2,270	$	7,559					$	47,544
Updated FICO scores
Greater than or equal to 780	$	3,206	$	7,797	$	12,197	$	5,035	$	1,492	$	4,004					$	33,731
720 to 779	1,482		1,659		2,389		1,107		432		1,388						8,457
660 to 719	400		508		657		334		171		721						2,791
Less than 660	93		71		133		122		82		680						1,181
No FICO score available	140		9		92		168		56		266						731
Government insured or guaranteed loans	14		20		16		66		37		500						653
Total residential real estate loans	$	5,335	$	10,064	$	15,484	$	6,832	$	2,270	$	7,559					$	47,544
Gross charge-offs (a)			$	2	$	1	$	1			$	4					$	8
Home equity (b)
Current estimated LTV ratios
Greater than 100%					$	1	$	12	$	6	$	14	$	306	$	309	$	648
Greater than or equal to 80% to 100%					4		40		17		22		1,116		1,743		2,942
Less than 80%					157		1,866		845		2,556		6,843		10,293		22,560
Total home equity loans					$	162	$	1,918	$	868	$	2,592	$	8,265	$	12,345	$	26,150
Updated FICO scores
Greater than or equal to 780					$	102	$	1,254	$	489	$	1,605	$	4,604	$	6,083	$	14,137
720 to 779					38		423		216		488		2,222		3,225		6,612
660 to 719					17		174		110		271		1,207		1,894		3,673
Less than 660					5		65		52		220		223		1,089		1,654
No FICO score available							2		1		8		9		54		74
Total home equity loans					$	162	$	1,918	$	868	$	2,592	$	8,265	$	12,345	$	26,150
Gross charge-offs (a)											$	4	$	7	$	10	$	21

(a)Gross charge-offs are presented on a year-to-date basis, as of the period end date.

(b)Beginning January 1, 2022, new originations consist of revolving Home Equity Lines of Credit.

Automobile, Credit Card, Education and Other Consumer

The following table presents credit quality indicators for our automobile, credit card, education and other consumer loan classes:

Table 44: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes

	Term Loans by Origination Year
June 30, 2024 In millions	2024			2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Automobile
Updated FICO scores
Greater than or equal to 780	$	1,663		$	2,086	$	1,387	$	1,171	$	377	$	259					$	6,943
720 to 779	1,000			1,496		842		578		202		184						4,302
660 to 719	469			860		473		307		129		144						2,382
Less than 660	67			352		252		209		119		194						1,193
Total automobile loans	$	3,199		$	4,794	$	2,954	$	2,265	$	827	$	781					$	14,820
Gross charge-offs (a)				$	23	$	13	$	9	$	6	$	13					$	64
Credit card
Updated FICO scores
Greater than or equal to 780														$	1,975	$	1	$	1,976
720 to 779														1,885		4		1,889
660 to 719														1,857		14		1,871
Less than 660														952		53		1,005
No FICO score available or required (b)														105		3		108
Total credit card loans														$	6,774	$	75	$	6,849
Gross charge-offs (a)														$	164	$	18	$	182
Education
Updated FICO scores
Greater than or equal to 780	$	7		$	65	$	87	$	42	$	37	$	347					$	585
720 to 779	7			41		41		22		16		131						258
660 to 719	4			14		15		7		5		55						100
Less than 660	1			3		3		1		1		22						31
No FICO score available or required (b)	3			6		4		3		1		1						18
Total loans using FICO credit metric	22			129		150		75		60		556						992
Other internal credit metrics												740						740
Total education loans	$	22		$	129	$	150	$	75	$	60	$	1,296					$	1,732
Gross charge-offs (a)						$	1			$	1	$	7					$	9
Other consumer
Updated FICO scores
Greater than or equal to 780	$	123		$	190	$	90	$	30	$	11	$	12	$	37	$	1	$	494
720 to 779	156			205		109		36		14		13		75		1		609
660 to 719	101			114		104		37		16		14		82		1		469
Less than 660	2			30		45		22		11		10		41		1		162
Total loans using FICO credit metric	382			539		348		125		52		49		235		4		1,734
Other internal credit metrics	7			10		95		18		13		94		2,105		10		2,352
Total other consumer loans	$	389		$	549	$	443	$	143	$	65	$	143	$	2,340	$	14	$	4,086
Gross charge-offs (a)	$	34	(c)	$	12	$	13	$	8	$	4	$	6	$	6			$	83

(Continued from previous page)	Term Loans by Origination Year
December 31, 2023 In millions	2023			2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Automobile
Updated FICO Scores
Greater than or equal to 780	$	2,722		$	1,650	$	1,483	$	535	$	368	$	88					$	6,846
720 to 779	1,797			1,104		778		301		250		80						4,310
660 to 719	1,014			604		408		186		186		70						2,468
Less than 660	264			272		243		152		200		105						1,236
Total automobile loans	$	5,797		$	3,630	$	2,912	$	1,174	$	1,004	$	343					$	14,860
Gross charge-offs (a)	$	8		$	24	$	22	$	17	$	30	$	20					$	121
Credit card
Updated FICO scores
Greater than or equal to 780														$	2,017	$	1	$	2,018
720 to 779														1,976		4		1,980
660 to 719														1,979		13		1,992
Less than 660														1,036		48		1,084
No FICO score available or required (b)														103		3		106
Total credit card loans														$	7,111	$	69	$	7,180
Gross charge-offs (a)														$	290	$	29	$	319
Education
Updated FICO scores
Greater than or equal to 780	$	35		$	88	$	45	$	40	$	51	$	331					$	590
720 to 779	32			47		24		19		24		131						277
660 to 719	20			17		8		6		8		54						113
Less than 660	4			3		2		1		2		21						33
No FICO score available or required (b)	15			5		4		2				1						27
Total loans using FICO credit metric	106			160		83		68		85		538						1,040
Other internal credit metrics												905						905
Total education loans	$	106		$	160	$	83	$	68	$	85	$	1,443					$	1,945
Gross charge-offs (a)						$	1	$	1	$	2	$	13					$	17
Other consumer
Updated FICO scores
Greater than or equal to 780	$	241		$	127	$	47	$	21	$	14	$	11	$	39	$	1	$	501
720 to 779	286			157		54		26		17		11		80		1		632
660 to 719	147			140		57		27		21		11		87		2		492
Less than 660	19			52		31		17		14		8		43		1		185
Total loans using FICO credit metric	693			476		189		91		66		41		249		5		1,810
Other internal credit metrics	19			97		33		48		71		34		2,149		10		2,461
Total other consumer loans	$	712		$	573	$	222	$	139	$	137	$	75	$	2,398	$	15	$	4,271
Gross charge-offs (a)	$	75	(c)	$	23	$	18	$	14	$	14	$	8	$	11	$	1	$	164

(a)Gross charge-offs are presented on a year-to-date basis, as of the period end date.

(b)Loans where FICO scores are not available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.

(c)Includes charge-offs of deposit overdrafts.

Financing Receivable, Modified

The following table presents the amortized cost basis, as of the period end date, of FDMs granted during the three and six months ended June 30, 2024 and 2023:

Table 45: Loan Modifications Granted to Borrowers Experiencing Financial Difficulty (a) (b)

Three months ended June 30, 2024 Dollars in millions	Interest Rate Reduction		Term Extension		Payment Delay		Repayment Plan		Payment Delay and Term Extension		Interest Rate Reduction and Term Extension		Other (c)		Total		% of Loan Class
Commercial
Commercial and industrial	$	18	$	372	$	94			$	65	$	102	$	67	$	718	0.40	%
Commercial real estate			454						84						538		1.52	%
Total commercial	18		826		94				149		102		67		1,256		0.57	%
Consumer
Residential real estate					30						1		5		36		0.08	%
Home equity					5		$	1					6		12		0.05	%
Credit card							21								21		0.31	%
Education			1												1		0.06	%
Total consumer			1		35		22				1		11		70		0.07	%
Total	$	18	$	827	$	129	$	22	$	149	$	103	$	78	$	1,326	0.41	%
Three months ended June 30, 2023 Dollars in millions
Commercial
Commercial and industrial			$	366	$	59							$	87	$	512	0.29	%
Commercial real estate			228										60		288		0.80	%
Total commercial			594		59								147		800		0.36	%
Consumer
Residential real estate	$	1			35						$	1	2		39		0.08	%
Home equity					3		$	2					5		10		0.04	%
Credit card							18								18		0.25	%
Education			1												1		0.05	%
Other consumer							1								1		0.02	%
Total consumer	1		1		38		21				1		7		69		0.07	%
Total	$	1	$	595	$	97	$	21			$	1	$	154	$	869	0.27	%

Six months ended June 30, 2024 Dollars in millions	Principal Forgiveness		Interest Rate Reduction		Term Extension		Payment Delay		Repayment Plan		Payment Delay and Term Extension		Interest Rate Reduction and Term Extension		Interest Rate Reduction and Payment Delay		Other (c)		Total		% of Loan Class
Commercial
Commercial and industrial			$	18	$	720	$	83			$	109	$	112	$	15	$	97	$	1,154	0.65	%
Commercial real estate					779		25				148								952		2.68	%
Total commercial			18		1,499		108				257		112		15		97		2,106		0.95	%
Consumer
Residential real estate							55						1				8		64		0.14	%
Home equity							8		$	2							10		20		0.08	%
Credit card									39										39		0.57	%
Education					3														3		0.17	%
Other consumer									1										1		0.02	%
Total consumer					3		63		42				1				18		127		0.13	%
Total			$	18	$	1,502	$	171	$	42	$	257	$	113	$	15	$	115	$	2,233	0.69	%
Six months ended June 30, 2023 Dollars in millions
Commercial
Commercial and industrial	$	1			$	432	$	72									$	91	$	596	0.34	%
Commercial real estate					493												60		553		1.54	%
Total commercial	1				925		72										151		1,149		0.52	%
Consumer
Residential real estate			$	1			72						$	2			3		78		0.17	%
Home equity							4		$	5							6		15		0.06	%
Credit card									30										30		0.42	%
Education					2														2		0.10	%
Other consumer									1										1		0.02	%
Total consumer			1		2		76		36				2				9		126		0.12	%
Total	$	1	$	1	$	927	$	148	$	36			$	2			$	160	$	1,275	0.40	%

(a)The unfunded lending related commitments on FDMs granted during the six months ended June 30, 2024 and 2023 were $0.3 billion and $0.1 billion, respectively.

(b)Excludes the amortized cost basis of modified loans that were paid off, charged off or otherwise liquidated as of the period end date.

(c)Represents all other modifications, and includes trial modifications and loans where we have received notification that a borrower has filed for Chapter 7 bankruptcy relief, but specific instructions as to the terms of the relief have not been formally ruled upon by the court.

Table 46 presents the weighted average financial effect of FDMs granted during the three and six months ended June 30, 2024 and 2023.

Table 46: Financial Effect of FDMs (a)

Three months ended June 30, 2024 Dollars in millions	Amortized cost basis (b)	Financial Effect
Term Extension
Commercial and industrial	$539	Extended contractual term by 15 months.
Commercial real estate	$538	Extended contractual term by 14 months.
Residential real estate	$1	Extended contractual term by 105 months.
Education	$1	Extended contractual term by 16 months.
Interest Rate Reduction
Commercial and industrial	$120	Reduced contractual interest rate by 1.12%.
Residential real estate	$1	Reduced contractual interest rate by 1.30%.
Payment Delay
Commercial and industrial	$159	Provided 5 months of payment deferral.
Commercial real estate	$84	Provided 23 months of payment deferral.
Residential real estate	$30	Provided 10 months of payment deferral.
Home equity	$5	Provided 5 months of payment deferral.
Three months ended June 30, 2023 Dollars in millions	Amortized cost basis (b)	Financial Effect
Term Extension
Commercial and industrial	$366	Extended contractual term by 9 months.
Commercial real estate	$228	Extended contractual term by 20 months.
Residential real estate	$1	Extended contractual term by 123 months.
Education	$1	Extended contractual term by 19 months.
Interest Rate Reduction
Residential real estate	$2	Reduced contractual interest rate by 1.17%.
Payment Delay
Commercial and industrial	$59	Provided 10 months of payment deferral.
Residential real estate	$35	Provided 8 months of payment deferral.
Home equity	$3	Provided 3 months of payment deferral.

Six months ended June 30, 2024 Dollars in millions	Amortized cost basis (b)		Financial Effect
Term Extension
Commercial and industrial	$941		Extended contractual term by 14 months.
Commercial real estate	$927		Extended contractual term by 14 months.
Residential real estate	$1		Extended contractual term by 98 months.
Education	$3		Extended contractual term by 12 months.
Interest Rate Reduction
Commercial and industrial	$145		Reduced contractual interest rate by 1.64%.
Residential real estate	$1		Reduced contractual interest rate by 1.15%.
Payment Delay
Commercial and industrial	$207		Provided 7 months of payment deferral.
Commercial real estate	$173		Provided 9 months of payment deferral.
Residential real estate	$55		Provided 9 months of payment deferral.
Home equity	$8		Provided 4 months of payment deferral.
Six months ended June 30, 2023 Dollars in millions	Amortized cost basis (b)		Financial Effect
Principal Forgiveness
Commercial and industrial	$1	(c)	Forgave $2 million of principal balances.
Term Extension
Commercial and industrial	$432		Extended contractual term by 10 months.
Commercial real estate	$493		Extended contractual term by 17 months.
Residential real estate	$2		Extended contractual term by 111 months.
Education	$2		Extended contractual term by 17 months.
Interest Rate Reduction
Residential real estate	$3		Reduced contractual interest rate by 1.34%.
Payment Delay
Commercial and industrial	$72		Provided 6 months of payment deferral.
Residential real estate	$72		Provided 8 months of payment deferral.
Home equity	$4		Provided 4 months of payment deferral.

(a)Excludes the financial effects of modifications for loans that were paid off, charged off or otherwise liquidated as of the period end date.

(b)The amortized cost basis presented in Table 46 includes combination modification categories in addition to the standalone modification categories presented in Table 45. Primarily due to this reason, the amortized cost basis presented in Table 46 may not agree to the amortized cost basis presented alongside the standalone modification categories in Table 45. Amortized cost basis is as of the period end date.

(c)Amounts are recorded as charge-offs.

The following table presents the performance, as of the period end date, of FDMs granted during the twelve months preceding June 30, 2024.

Table 47: Payment Performance of FDMs Modified in the Last 12 Months (a) (b)

Twelve months ended June 30, 2024 Dollars in millions	Current or Less Than 30 Days Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Nonperforming Loans		Total
Commercial
Commercial and industrial	$	1,318	$	1	$	8			$	235	$	1,562
Commercial real estate	978								433		1,411
Total commercial	2,296		1		8				668		2,973
Consumer
Residential real estate	9		1				$	1	86		97
Home equity	3								29		32
Credit card	45		4		4		7		1		61
Education	6										6
Other consumer	1								1		2
Total consumer	64		5		4		8		117		198
Total	$	2,360	$	6	$	12	$	8	$	785	$	3,171

(a)Represents amortized cost basis.

(b)Loans in our Payment Delay category are reported as past due in accordance with their contractual terms. Once contractually modified, these loans are reported as past due in accordance with their restructured terms.

The following table presents the performance as of June 30, 2023 for FDMs granted since January 1, 2023:

Table 48: Payment Performance of FDMs (a) (b)

Six months ended June 30, 2023 Dollars in millions	Current or Less Than 30 Days Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Nonperforming Loans		Total
Commercial
Commercial and industrial	$	494			$	4	$	1	$	97	$	596
Commercial real estate	520								33		553
Total commercial	1,014				4		1		130		1,149
Consumer
Residential real estate	1								77		78
Home equity									15		15
Credit card	20		$	3	3		4				30
Education	2										2
Other consumer									1		1
Total consumer	23		3		3		4		93		126
Total	$	1,037	$	3	$	7	$	5	$	223	$	1,275

(a)Represents amortized cost basis.

(b)Loans in our Payment Delay category are reported as past due in accordance with their contractual terms. Once contractually modified, these loans are reported as past due in accordance with their restructured terms.

Financing Receivable, Modified, Subsequent Default

Table 49: Subsequently Defaulted FDMs (a)

Three months ended June 30, 2024 Dollars in millions	Term Extension		Payment Delay		Repayment Plan		Payment Delay/Term Extension		All Other Modifications (b)		Total
Commercial
Commercial and industrial	$	14	$	1							$	15
Commercial real estate			32				$	37			69
Total commercial	14		33				37				84
Consumer
Residential real estate			6						$	1	7
Home equity			1						3		4
Credit card					$	7					7
Total consumer			7		7				4		18
Total	$	14	$	40	$	7	$	37	$	4	$	102

Six months ended June 30, 2024 Dollars in millions	Term Extension		Payment Delay		Repayment Plan		Payment Delay/Term Extension		All Other Modifications (b)		Total
Commercial
Commercial and industrial	$	26	$	9							$	35
Commercial real estate	1		33				$	37			71
Total commercial	27		42				37				106
Consumer
Residential real estate			19						$	2	21
Home equity			1		$	1			5		7
Credit card					16						16
Total consumer			20		17				7		44
Total	$	27	$	62	$	17	$	37	$	7	$	150

(a)Represents amortized cost basis.

(b)Includes the following modification categories: interest rate reduction, combinations of interest rate reduction/payment delay and interest rate reduction/term extension and other.

Rollforward of Allowance for Credit Losses

A rollforward of the ACL related to loans follows:

Table 50: Rollforward of Allowance for Credit Losses

	Three months ended June 30												Six months ended June 30
	2024						2023						2024						2023
In millions	Commercial		Consumer		Total		Commercial		Consumer		Total		Commercial		Consumer		Total		Commercial		Consumer		Total
Allowance for loan and lease losses
Beginning balance	$	3,217	$	1,476	$	4,693	$	3,046	$	1,695	$	4,741	$	3,259	$	1,532	$	4,791	$	3,114	$	1,627	$	4,741
Adoption of ASU 2022-02 (a)																					(35)		(35)
Beginning balance, adjusted	3,217		1,476		4,693		3,046		1,695		4,741		3,259		1,532		4,791		3,114		1,592		4,706
Charge-offs	(198)		(177)		(375)		(135)		(158)		(293)		(346)		(359)		(705)		(255)		(320)		(575)
Recoveries	52		61		113		36		63		99		75		125		200		61		125		186
Net (charge-offs)	(146)		(116)		(262)		(99)		(95)		(194)		(271)		(234)		(505)		(194)		(195)		(389)
Provision for (recapture of) credit losses	172		32		204		195		(6)		189		257		94		351		220		198		418
Other			1		1				1		1		(2)		1		(1)		2				2
Ending balance	$	3,243	$	1,393	$	4,636	$	3,142	$	1,595	$	4,737	$	3,243	$	1,393	$	4,636	$	3,142	$	1,595	$	4,737
Allowance for unfunded lending related commitments (b)
Beginning balance	$	528	$	144	$	672	$	560	$	112	$	672	$	545	$	118	$	663	$	613	$	81	$	694
Provision for (recapture of) credit losses	53		(8)		45		(5)		(4)		(9)		36		18		54		(58)		27		(31)
Ending balance	$	581	$	136	$	717	$	555	$	108	$	663	$	581	$	136	$	717	$	555	$	108	$	663
Allowance for credit losses at June 30 (c)	$	3,824	$	1,529	$	5,353	$	3,697	$	1,703	$	5,400	$	3,824	$	1,529	$	5,353	$	3,697	$	1,703	$	5,400

(a)Represents the impact of adopting ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023. As a result of adoption, we eliminated the accounting guidance for TDRs, including the use of a discounted cash flow approach to measure the allowance for TDRs.

(b)See Note 8 Commitments for additional information about the underlying commitments related to this allowance.

(c)Represents the ALLL plus allowance for unfunded lending related commitments and excludes allowances for investment securities and other financial assets, which together totaled $112 million and $171 million at June 30, 2024 and 2023, respectively.