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CREDIT QUALITY AND THE ALLOWANCE FOR CREDIT LOSSES (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of changes in the allowance for credit losses

The following table presents a summary of changes in the ACL for the three months ended March 31, 2025:


	Three Months Ended March 31, 2025
(dollars in millions)	Commercial	Retail	Total
Allowance for loan and lease losses, beginning of period	$1,140	$921	$2,061



Charge-offs	(85)	(149)	(234)
Recoveries	4	30	34
Net charge-offs	(81)	(119)	(200)
Provision expense (benefit) for loans and leases	89	64	153
Allowance for loan and lease losses, end of period	1,148	866	2,014
Allowance for unfunded lending commitments, beginning of period	155	43	198


Provision expense (benefit) for unfunded lending commitments	9	(9)	—

Allowance for unfunded lending commitments, end of period	164	34	198
Total allowance for credit losses, end of period	$1,312	$900	$2,212

The following table presents a summary of changes in the ACL for the three months ended March 31, 2024:


	Three Months Ended March 31, 2024
(dollars in millions)	Commercial	Retail	Total
Allowance for loan and lease losses, beginning of period	$1,250	$848	$2,098



Charge-offs	(102)	(129)	(231)
Recoveries	17	33	50
Net charge-offs	(85)	(96)	(181)
Provision expense (benefit) for loans and leases	69	100	169
Allowance for loan and lease losses, end of period	1,234	852	2,086
Allowance for unfunded lending commitments, beginning of period	175	45	220


Provision expense (benefit) for unfunded lending commitments	16	(14)	2

Allowance for unfunded lending commitments, end of period	191	31	222
Total allowance for credit losses, end of period	$1,425	$883	$2,308

The following tables present gross charge-offs by vintage date for the Company’s loan and lease portfolios:


	Three Months Ended March 31, 2025
	Term Loans and Leases by Origination Year						Revolving Loans
(dollars in millions)	2025	2024	2023	2022	2021	Prior to 2021	Within the Revolving Period	Converted to Term	Total
Commercial and industrial	$—	$—	$1	$2	$22	$—	$9	$—	$34
Commercial real estate	—	—	—	8	—	43	—	—	51
Total commercial	—	—	1	10	22	43	9	—	85
Residential mortgages	—	—	—	—	—	1	—	—	1
Home equity	—	—	—	—	—	1	4	—	5
Automobile	—	—	2	7	7	4	—	—	20
Education	—	1	2	5	13	35	—	—	56
Other retail	4	15	8	4	2	2	32	—	67
Total retail	4	16	12	16	22	43	36	—	149
Total loans and leases	$4	$16	$13	$26	$44	$86	$45	$—	$234


	Three Months Ended March 31, 2024
	Term Loans and Leases by Origination Year						Revolving Loans
(dollars in millions)	2024	2023	2022	2021	2020	Prior to 2020	Within the Revolving Period	Converted to Term	Total
Commercial and industrial	$—	$5	$1	$4	$—	$1	$3	$—	$14
Commercial real estate	—	—	—	—	59	29	—	—	88
Total commercial	—	5	1	4	59	30	3	—	102
Residential mortgages	—	—	—	—	—	2	—	—	2
Home equity	—	—	—	—	—	1	2	1	4
Automobile	—	2	9	11	3	3	—	—	28
Education	—	—	1	6	7	18	—	—	32
Other retail	4	9	4	3	—	4	39	—	63
Total retail	4	11	14	20	10	28	41	1	129
Total loans and leases	$4	$16	$15	$24	$69	$58	$44	$1	$231

Schedule of classes of loans and leases, amortized cost basis by credit quality indicator

The following table presents the amortized cost basis of commercial loans and leases by vintage date and internal risk rating as of March 31, 2025:


	Term Loans and Leases by Origination Year						Revolving Loans
(dollars in millions)	2025	2024	2023	2022	2021	Prior to 2021	Within the Revolving Period	Converted to Term	Total
Commercial and industrial
Pass	$1,178	$5,502	$2,312	$3,878	$2,531	$2,593	$23,129	$73	$41,196
Special Mention	—	5	77	71	227	139	190	—	709
Substandard Accrual	—	12	55	144	296	294	776	16	1,593
Nonaccrual	—	—	4	83	45	62	83	6	283
Total commercial and industrial	1,178	5,519	2,448	4,176	3,099	3,088	24,178	95	43,781
Commercial real estate
Pass	774	2,558	1,099	5,193	5,066	5,923	1,361	4	21,978
Special Mention	—	—	100	1,005	355	433	80	6	1,979
Substandard Accrual	—	3	79	519	217	1,127	9	116	2,070
Nonaccrual	—	—	3	81	65	545	2	4	700
Total commercial real estate	774	2,561	1,281	6,798	5,703	8,028	1,452	130	26,727
Total commercial
Pass	1,952	8,060	3,411	9,071	7,597	8,516	24,490	77	63,174
Special Mention	—	5	177	1,076	582	572	270	6	2,688
Substandard Accrual	—	15	134	663	513	1,421	785	132	3,663
Nonaccrual	—	—	7	164	110	607	85	10	983
Total commercial	$1,952	$8,080	$3,729	$10,974	$8,802	$11,116	$25,630	$225	$70,508

The following table presents the amortized cost basis of commercial loans and leases by vintage date and internal risk rating as of December 31, 2024:


	Term Loans and Leases by Origination Year						Revolving Loans
(dollars in millions)	2024	2023	2022	2021	2020	Prior to 2020	Within the Revolving Period	Converted to Term	Total
Commercial and industrial
Pass	$5,945	$2,525	$4,194	$2,923	$895	$2,066	$21,323	$66	$39,937
Special Mention	2	79	98	236	48	48	211	—	722
Substandard Accrual	9	64	207	269	139	253	697	13	1,651
Nonaccrual	—	11	68	62	5	55	34	6	241
Total commercial and industrial	5,956	2,679	4,567	3,490	1,087	2,422	22,265	85	42,551
Commercial real estate
Pass	2,720	1,305	5,748	5,412	1,919	4,199	1,434	4	22,741
Special Mention	1	—	911	362	175	257	80	6	1,792
Substandard Accrual	3	22	359	253	275	875	9	120	1,916
Nonaccrual	—	67	89	58	90	470	2	—	776
Total commercial real estate	2,724	1,394	7,107	6,085	2,459	5,801	1,525	130	27,225
Total commercial
Pass	8,665	3,830	9,942	8,335	2,814	6,265	22,757	70	62,678
Special Mention	3	79	1,009	598	223	305	291	6	2,514
Substandard Accrual	12	86	566	522	414	1,128	706	133	3,567
Nonaccrual	—	78	157	120	95	525	36	6	1,017
Total commercial	$8,680	$4,073	$11,674	$9,575	$3,546	$8,223	$23,790	$215	$69,776

The following table presents the amortized cost basis of retail loans by vintage date and current FICO score as of March 31, 2025:


	Term Loans by Origination Year						Revolving Loans
(dollars in millions)	2025	2024	2023	2022	2021	Prior to 2021	Within the Revolving Period	Converted to Term	Total
Residential mortgages
800+	$232	$1,568	$1,369	$3,343	$5,149	$6,701	$—	$—	$18,362
740-799	520	1,410	817	1,537	2,142	3,031	—	—	9,457
680-739	119	382	295	546	713	1,193	—	—	3,248
620-679	11	46	76	149	180	494	—	—	956
<620	—	18	133	118	163	643	—	—	1,075
No FICO available(1)	—	1	—	3	1	11	—	—	16
Total residential mortgages	882	3,425	2,690	5,696	8,348	12,073	—	—	33,114
Home equity
800+	—	1	—	3	3	75	5,770	193	6,045
740-799	—	—	—	1	3	52	5,382	224	5,662
680-739	—	—	—	1	1	43	3,064	206	3,315
620-679	—	—	1	1	1	19	788	178	988
<620	—	—	3	2	3	16	501	313	838
No FICO available(1)	—	—	—	—	—	—	5	—	5
Total home equity	—	1	4	8	11	205	15,510	1,114	16,853
Automobile
800+	—	—	63	343	575	177	—	—	1,158
740-799	—	—	87	376	482	172	—	—	1,117
680-739	—	—	82	289	322	114	—	—	807
620-679	—	—	46	166	167	64	—	—	443
<620	—	—	49	189	200	81	—	—	519
No FICO available(1)	—	—	—	—	—	—	—	—	—
Total automobile	—	—	327	1,363	1,746	608	—	—	4,044
Education
800+	52	282	347	543	1,104	2,081	—	—	4,409
740-799	75	321	320	463	556	1,064	—	—	2,799
680-739	29	145	139	193	186	397	—	—	1,089
620-679	4	42	43	48	45	123	—	—	305
<620	1	9	15	22	24	72	—	—	143
No FICO available(1)	4	1	—	—	—	29	—	—	34
Total education	165	800	864	1,269	1,915	3,766	—	—	8,779
Other retail
800+	28	155	55	34	13	13	473	—	771
740-799	39	209	77	42	14	14	836	—	1,231
680-739	28	162	69	36	12	11	808	1	1,127
620-679	12	79	38	24	8	5	318	1	485
<620	2	35	28	30	8	4	236	1	344
No FICO available(1)	2	2	—	—	—	—	375	—	379
Total other retail	111	642	267	166	55	47	3,046	3	4,337
Total retail
800+	312	2,006	1,834	4,266	6,844	9,047	6,243	193	30,745
740-799	634	1,940	1,301	2,419	3,197	4,333	6,218	224	20,266
680-739	176	689	585	1,065	1,234	1,758	3,872	207	9,586
620-679	27	167	204	388	401	705	1,106	179	3,177
<620	3	62	228	361	398	816	737	314	2,919
No FICO available(1)	6	4	—	3	1	40	380	—	434
Total retail	$1,158	$4,868	$4,152	$8,502	$12,075	$16,699	$18,556	$1,117	$67,127

(1) Represents loans for which an updated FICO score was unavailable (e.g., due to recent profile changes).

The following table presents the amortized cost basis of retail loans by vintage date and current FICO score as of December 31, 2024:


	Term Loans by Origination Year						Revolving Loans
(dollars in millions)	2024	2023	2022	2021	2020	Prior to 2020	Within the Revolving Period	Converted to Term	Total
Residential mortgages
800+	$1,230	$1,302	$3,299	$5,109	$2,919	$3,869	$—	$—	$17,728
740-799	1,757	873	1,568	2,213	1,338	1,923	—	—	9,672
680-739	425	281	552	697	385	938	—	—	3,278
620-679	31	61	126	151	101	494	—	—	964
<620	15	37	76	147	89	703	—	—	1,067
No FICO available(1)	1	—	—	1	1	14	—	—	17
Total residential mortgages	3,459	2,554	5,621	8,318	4,833	7,941	—	—	32,726
Home equity
800+	1	—	3	4	1	76	5,634	200	5,919
740-799	—	—	1	2	1	65	5,275	224	5,568
680-739	—	—	1	—	1	76	2,995	183	3,256
620-679	—	1	4	3	2	60	752	141	963
<620	—	2	6	3	1	59	459	259	789
No FICO available(1)	—	—	—	—	—	—	—	—	—
Total home equity	1	3	15	12	6	336	15,115	1,007	16,495
Automobile
800+	—	65	380	665	183	58	—	—	1,351
740-799	—	92	430	581	176	61	—	—	1,340
680-739	—	91	338	385	115	45	—	—	974
620-679	—	51	189	194	56	29	—	—	519
<620	—	47	197	216	62	38	—	—	560
No FICO available(1)	—	—	—	—	—	—	—	—	—
Total automobile	—	346	1,534	2,041	592	231	—	—	4,744
Education
800+	227	373	657	1,517	1,256	1,475	—	—	5,505
740-799	290	359	571	804	637	811	—	—	3,472
680-739	110	150	229	261	211	337	—	—	1,298
620-679	27	48	55	58	51	111	—	—	350
<620	5	12	21	28	25	60	—	—	151
No FICO available(1)	5	—	—	—	—	31	—	—	36
Total education	664	942	1,533	2,668	2,180	2,825	—	—	10,812
Other retail
800+	186	65	36	15	11	10	512	—	835
740-799	259	96	46	18	13	11	895	1	1,339
680-739	201	87	39	15	11	7	845	1	1,206
620-679	97	47	27	10	6	3	335	1	526
<620	32	31	34	15	7	3	234	1	357
No FICO available(1)	5	—	—	—	—	—	382	—	387
Total other retail	780	326	182	73	48	34	3,203	4	4,650
Total retail
800+	1,644	1,805	4,375	7,310	4,370	5,488	6,146	200	31,338
740-799	2,306	1,420	2,616	3,618	2,165	2,871	6,170	225	21,391
680-739	736	609	1,159	1,358	723	1,403	3,840	184	10,012
620-679	155	208	401	416	216	697	1,087	142	3,322
<620	52	129	334	409	184	863	693	260	2,924
No FICO available(1)	11	—	—	1	1	45	382	—	440
Total retail	$4,904	$4,171	$8,885	$13,112	$7,659	$11,367	$18,318	$1,011	$69,427

(1) Represents loans for which an updated FICO score was unavailable (e.g., due to recent profile changes).

Schedule of nonaccrual loans and leases and loans accruing and 90 days or more past due

The following tables present an aging analysis of accruing and nonaccrual loans and leases as of March 31, 2025 and December 31, 2024:


	March 31, 2025
		Days Past Due and Accruing
(dollars in millions)	Current	30-59	60-89	90+	Nonaccrual	Total	Nonaccrual with no related ACL
Commercial and industrial	$43,420	$56	$13	$9	$283	$43,781	$45
Commercial real estate	25,887	131	5	4	700	26,727	19
Total commercial	69,307	187	18	13	983	70,508	64
Residential mortgages	32,682	60	36	138	198	33,114	147
Home equity	16,450	94	27	—	282	16,853	178
Automobile	3,900	80	25	—	39	4,044	6
Education	8,699	39	18	3	20	8,779	2
Other retail	4,207	42	27	1	60	4,337	1
Total retail	65,938	315	133	142	599	67,127	334
Total	$135,245	$502	$151	$155	$1,582	$137,635	$398
Guaranteed residential mortgages(1)	$824	$32	$19	$137	$—	$1,012	$—


	December 31, 2024
		Days Past Due and Accruing
(dollars in millions)	Current	30-59	60-89	90+	Nonaccrual	Total	Nonaccrual with no related ACL
Commercial and industrial	$42,247	$35	$20	$8	$241	$42,551	$31
Commercial real estate	26,212	204	27	6	776	27,225	32
Total commercial	68,459	239	47	14	1,017	69,776	63
Residential mortgages	32,011	251	93	179	192	32,726	142
Home equity	16,097	88	27	—	283	16,495	182
Automobile	4,563	100	33	—	48	4,744	6
Education	10,686	45	23	2	56	10,812	4
Other retail	4,504	46	31	1	68	4,650	1
Total retail	67,861	530	207	182	647	69,427	335
Total	$136,320	$769	$254	$196	$1,664	$139,203	$398
Guaranteed residential mortgages(1)	$696	$119	$55	$172	$—	$1,042	$—

(1) Guaranteed residential mortgages represent loans fully or partially guaranteed by the FHA, VA, and USDA, and are included in the amounts presented for Residential mortgages.

Troubled debt restructurings on financing receivables

The following tables present the period-end amortized cost of loans to borrowers experiencing financial difficulty that were modified during the three months ended March 31, 2025 and 2024, disaggregated by class of financing receivable and modification type. The modification type reflects the cumulative effect of all FDMs received during the indicated period.


	Three Months Ended March 31, 2025
(dollars in millions)	Interest Rate Reduction	Term Extension	Payment Delay	Principal Forgiveness	Interest Rate Reduction and Term Extension	Term Extension and Payment Delay	Total	Total as a % of Loan Class(1)
Commercial and industrial	$32	$141	$2	$—	$—	$1	$176	0.40	%
Commercial real estate	10	172	73	—	—	25	280	1.05
Total commercial	42	313	75	—	—	26	456	0.65
Residential mortgages	1	15	2	—	4	1	23	0.07
Home equity	1	—	2	—	1	—	4	0.02
Automobile	—	—	—	—	—	—	—	—
Education	2	—	—	—	—	—	2	0.02
Other retail	6	—	—	—	—	—	6	0.14
Total retail	10	15	4	—	5	1	35	0.05
Total	$52	$328	$79	$—	$5	$27	$491	0.36	%


	Three Months Ended March 31, 2024
(dollars in millions)	Interest Rate Reduction	Term Extension	Payment Delay	Principal Forgiveness	Interest Rate Reduction and Term Extension	Term Extension and Payment Delay	Total	Total as a % of Loan Class(1)
Commercial and industrial	$—	$85	$65	$—	$1	$32	$183	0.42	%
Commercial real estate	—	443	24	—	40	1	508	1.76
Total commercial	—	528	89	—	41	33	691	0.95
Residential mortgages	1	37	5	—	3	—	46	0.15
Home equity	1	1	—	—	4	—	6	0.04
Automobile	—	—	—	—	—	—	—	—
Education	3	—	18	—	—	—	21	0.18
Other retail	5	—	—	—	—	—	5	0.10
Total retail	10	38	23	—	7	—	78	0.11
Total	$10	$566	$112	$—	$48	$33	$769	0.54	%

(1) Represents the total amortized cost as of period-end divided by the period-end amortized cost of the corresponding loan class. Accrued interest receivable is excluded from amortized cost and is immaterial.

The following tables present the financial effect of loans to borrowers experiencing financial difficulty that were modified during the three months ended March 31, 2025 and 2024, disaggregated by class of financing receivable.


	Three Months Ended March 31, 2025
(dollars in millions)	Weighted-Average Interest Rate Reduction(1)		Weighted-Average Term Extension (in Months)(1)	Weighted-Average Payment Deferral(1)	Amount of Principal Forgiven(2)
Commercial and industrial	0.81	%	10	$—	$—
Commercial real estate	0.75		10	1	—
Residential mortgages	0.98		111	—	—
Home equity	4.55		74	—	—
Automobile	—		—	—	—
Education	4.96		—	—	—
Other retail	20.30		—	—	2


	Three Months Ended March 31, 2024
(dollars in millions)	Weighted-Average Interest Rate Reduction(1)		Weighted-Average Term Extension (in Months)(1)	Weighted-Average Payment Deferral(1)	Amount of Principal Forgiven(2)
Commercial and industrial	4.49	%	9	$1	$—
Commercial real estate	0.53		16	1	—
Residential mortgages	2.01		88	—	—
Home equity	3.16		88	—	—
Automobile	—		—	—	—
Education	4.31		—	—	—
Other retail	19.80		—	—	2

(1) Weighted based on period-end amortized cost.

(2) Amounts are recorded as charge-offs.

The following tables present an aging analysis of the period-end amortized cost of loans to borrowers experiencing financial difficulty that were modified during the twelve month period ending March 31, 2025 and 2024, disaggregated by class of financing receivable. A loan in a forbearance or repayment plan is reported as past due according to its contractual terms until contractually modified. Subsequent to modification, it is reported as past due based on its restructured terms.


	March 31, 2025
		Days Past Due and Accruing
(dollars in millions)	Current	30-59	60-89	90+	Nonaccrual	Total
Commercial and industrial	$311	$17	$—	$3	$51	$382
Commercial real estate	380	33	—	—	385	798
Total commercial	691	50	—	3	436	1,180
Residential mortgages	51	4	3	17	19	94
Home equity	9	—	1	—	12	22
Automobile	—	—	—	—	—	—
Education	8	—	—	—	1	9
Other retail	13	2	1	—	1	17
Total retail	81	6	5	17	33	142
Total	$772	$56	$5	$20	$469	$1,322


	March 31, 2024
		Days Past Due and Accruing
(dollars in millions)	Current	30-59	60-89	90+	Nonaccrual	Total
Commercial and industrial	$223	$1	$5	$—	$144	$373
Commercial real estate	667	38	5	33	136	879
Total commercial	890	39	10	33	280	1,252
Residential mortgages	71	17	—	22	15	125
Home equity	5	—	—	—	10	15
Automobile	—	—	—	—	—	—
Education	51	1	—	—	6	58
Other retail	10	1	1	—	1	13
Total retail	137	19	1	22	32	211
Total	$1,027	$58	$11	$55	$312	$1,463

Financing receivable, modified, subsequent default

The following tables present the period-end amortized cost of loans to borrowers experiencing financial difficulty that defaulted during the period presented and were modified within the previous 12 months preceding the default, disaggregated by class of financing receivable and modification type. The modification type reflects the cumulative effect of all FDMs at the time of default. A loan is considered to be in default if, subsequent to modification, it becomes 90 or more days past due or is placed on nonaccrual status.


	Three Months Ended March 31, 2025
(dollars in millions)	Interest Rate Reduction	Term Extension	Payment Delay	Interest Rate Reduction and Term Extension	Total
Commercial and industrial	$—	$—	$—	$—	$—
Commercial real estate	—	71	—	—	71
Total commercial	—	71	—	—	71
Residential mortgages	—	5	1	2	8
Home equity	1	—	—	1	2
Automobile	—	—	—	—	—
Education	—	—	—	—	—
Other retail	1	—	—	—	1
Total retail	2	5	1	3	11
Total	$2	$76	$1	$3	$82


	Three Months Ended March 31, 2024
(dollars in millions)	Interest Rate Reduction	Term Extension	Payment Delay	Interest Rate Reduction and Term Extension	Total
Commercial and industrial	$—	$34	$—	$—	$34
Commercial real estate	—	38	—	—	38
Total commercial	—	72	—	—	72
Residential mortgages	—	6	—	—	6
Home equity	—	—	—	—	—
Automobile	—	—	—	—	—
Education	2	—	—	—	2
Other retail	—	—	—	—	—
Total retail	2	6	—	—	8
Total	$2	$78	$—	$—	$80