Loans

9 Months Ended

Sep. 30, 2025

Receivables [Abstract]

Loans

Loans

In connection with changes to our business segments as discussed further in Note 13, "Business Segments," during the first quarter of 2025, we changed our presentation for what was previously reported as global banking to include such activity within business and corporate banking. As a result, we have reclassified prior year amounts to conform to the current year presentation. All tables below have been recasted to reflect this reclassification, as applicable.

Loans consisted of the following:

	September 30, 2025		December 31, 2024
	(in millions)
Commercial loans:
Real estate, including construction	$	6,241	$	6,612
Business and corporate banking	25,802		25,426
Other commercial:
Affiliates(1)	6,417		5,449
Other	3,410		3,564
Total other commercial	9,827		9,013
Total commercial	41,870		41,051
Consumer loans:
Residential mortgages	21,994		21,035
Home equity mortgages	388		393
Credit cards	175		195
Other consumer(2)	76		79
Total consumer	22,633		21,702
Total loans	$	64,503	$	62,753

(1)See Note 12, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.

(2)Includes certain student loans that we have elected to designate under the fair value option and are therefore carried at fair value, which totaled $9 million and $11 million at September 30, 2025 and December 31, 2024, respectively. See Note 9, "Fair Value Option," for further details.

Net deferred origination costs totaled $28 million and $32 million at September 30, 2025 and December 31, 2024, respectively. At September 30, 2025 and December 31, 2024, we had a net unamortized discount on our loans of $8 million and $10 million, respectively.

Aging Analysis of Past Due Loans  The following table summarizes the past due status of our loans at September 30, 2025 and December 31, 2024. The aging of past due amounts is determined based on the contractual delinquency status of payments under the loan. An account is generally considered to be contractually delinquent when payments have not been made in accordance with the loan terms. Delinquency status is affected by customer account management policies and practices such as re-age, which results in the re-setting of the contractual delinquency status to current.

	Past Due				Total Past Due 30 Days or More
	30 - 89 Days		90+ Days				Current(1)		Total Loans
	(in millions)
At September 30, 2025
Commercial loans:
Real estate, including construction	$	—	$	8	$	8	$	6,233	$	6,241
Business and corporate banking	2		59		61		25,741		25,802
Other commercial	173		2		175		9,652		9,827
Total commercial	175		69		244		41,626		41,870
Consumer loans:
Residential mortgages	179		95		274		21,720		21,994
Home equity mortgages	2		4		6		382		388
Credit cards	2		2		4		171		175
Other consumer	1		1		2		74		76
Total consumer	184		102		286		22,347		22,633
Total loans	$	359	$	171	$	530	$	63,973	$	64,503
At December 31, 2024
Commercial loans:
Real estate, including construction	$	4	$	19	$	23	$	6,589	$	6,612
Business and corporate banking	63		182		245		25,181		25,426
Other commercial	31		—		31		8,982		9,013
Total commercial	98		201		299		40,752		41,051
Consumer loans:
Residential mortgages	174		105		279		20,756		21,035
Home equity mortgages	2		4		6		387		393
Credit cards	2		2		4		191		195
Other consumer	2		1		3		76		79
Total consumer	180		112		292		21,410		21,702
Total loans	$	278	$	313	$	591	$	62,162	$	62,753

(1)Loans less than 30 days past due are presented as current.

Nonperforming Loans  Nonperforming loans, including nonaccrual loans and accruing loans contractually 90 days or more past due, consisted of the following:

	Nonaccrual Loans		Accruing Loans Contractually Past Due 90 Days or More		Nonaccrual Loans With No Allowance For Credit Losses
	(in millions)
At September 30, 2025
Commercial loans:
Real estate, including construction	$	324	$	—	$	1
Business and corporate banking	263		45		38
Other commercial	5		—		5
Total commercial	592		45		44
Consumer loans:
Residential mortgages(1)(2)(3)	199		—		75
Home equity mortgages(1)(2)	9		—		5
Credit cards	—		2		—
Other consumer	—		1		—
Total consumer	208		3		80
Total nonperforming loans	$	800	$	48	$	124
At December 31, 2024
Commercial loans:
Real estate, including construction	$	261	$	—	$	21
Business and corporate banking	280		147		33
Total commercial	541		147		54
Consumer loans:
Residential mortgages(1)(2)(3)	173		—		80
Home equity mortgages(1)(2)	6		—		5
Credit cards	—		3		—
Other consumer	—		1		—
Total consumer	179		4		85
Total nonperforming loans	$	720	$	151	$	139

(1)At September 30, 2025 and December 31, 2024, nonaccrual consumer mortgage loans include $108 million and $106 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

(2)Nonaccrual consumer mortgage loans include all loans which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent.

(3)Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association. Repayment of these loans is predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our consumer loan portfolio.

Interest income that was recorded on nonaccrual loans and included in interest income totaled nil and $3 million during the three and nine months ended September 30, 2025, respectively, compared with $11 million and $19 million during the three and nine months ended September 30, 2024, respectively.

Collateral-Dependent Loans Loans for which the repayment is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty are considered to be collateral-dependent loans. Collateral can have a significant financial effect in mitigating our exposure to credit risk.

Collateral-dependent residential mortgage loans are carried at the lower of amortized cost or fair value of the collateral less costs to sell, with any excess in the carrying amount of the loan generally charged off at the time foreclosure is initiated or when settlement is reached with the borrower, but not to exceed the end of the month in which the account becomes six months contractually delinquent. Collateral values are based on broker price opinions or appraisals which are updated at least every 180 days less estimated costs to sell. During the quarterly period between updates, real estate price trends are reviewed on a geographic basis and incorporated as necessary. At September 30, 2025 and December 31, 2024, we had collateral-dependent residential mortgage loans totaling $270 million and $282 million, respectively.

For collateral-dependent commercial loans, the allowance for expected credit losses is individually assessed based on the fair value of the collateral. Various types of collateral are used, including real estate, inventory, equipment, accounts receivable, securities and cash, among others. For commercial real estate loans, collateral values are generally based on appraisals which are updated based on management judgment under the specific circumstances on a case-by-case basis. In situations where an appraisal is not used, borrower-specific factors such as operating results, cash flows and debt service ratios are reviewed along with relevant market data of comparable properties in order to create a 10-year cash flow model to be discounted at appropriate rates to present value. The collateral value for securities is based on their quoted market prices or broker quotes. The collateral value for other financial assets is generally based on appraisals or is estimated using a discounted cash flow analysis. Commercial loan balances are charged off at the time all or a portion of the balance is deemed uncollectible. At September 30, 2025 and December 31, 2024, we had collateral-dependent commercial loans totaling $568 million and $524 million, respectively.

Loan Modifications In conjunction with our loss mitigation activities, we modify certain loans to borrowers experiencing financial difficulty. Modifications may include changes to one or more terms of the loan, including, but not limited to, a change in interest rate, extension of the term, reduction in payment amount and partial forgiveness or deferment of principal, accrued interest or other loan covenants.

The following disclosures provide information about loan payment modifications made to borrowers experiencing financial difficulty in the form of an interest rate reduction, principal forgiveness, a term extension or significant payment deferral, or a combination thereof. Not included are loans with short-term payment modifications (e.g., deferrals of three months or less) and other insignificant modifications, such as covenant waivers and amendments, and deferrals of financial statement and covenant compliance reporting requirements. Commercial loan payment modifications typically involve term extensions. In certain cases, the term extension is coupled with an interest rate increase which is intended to reduce the financial effect of extending the life of the loan. The effects of these interest rate increases are not included in the following disclosures. For consumer loans, payment modifications typically involve payment deferrals or interest rate reductions which lower the amount of interest income we are contractually entitled to receive in future periods. Through lowering the interest rate, we believe we are able to increase the amount of cash flow that will ultimately be collected from the loan, given the borrower's financial condition.

The following table presents information about loan payment modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2025 and 2024 by type of modification, including the period-end carrying value and as a percentage of total loans.

	Interest Rate Reduction		Principal Forgiveness		Term Extension / Significant Payment Deferral		Combination(1)		Total		% of Total Loans
	(dollars are in millions)
Three Months Ended September 30, 2025
Commercial loans:
Real estate, including construction	$	—	$	—	$	226	$	—	$	226	3.6	%
Business and corporate banking	27		—		23		—		50		.2
Total commercial	27		—		249		—		276		.7
Consumer loans:
Residential mortgages(2)	—		—		3		—		3		.0
Total consumer	—		—		3		—		3		.0
Total	$	27	$	—	$	252	$	—	$	279	.4

	Interest Rate Reduction		Principal Forgiveness		Term Extension / Significant Payment Deferral		Combination(1)		Total		% of Total Loans
	(dollars are in millions)
Three Months Ended September 30, 2024
Commercial loans:
Real estate, including construction	$	—	$	33	$	43	$	—	$	76	1.1	%
Business and corporate banking	—		—		6		—		6		.0
Total commercial	$	—	$	33	$	49	$	—	$	82	.2
Nine Months Ended September 30, 2025
Commercial loans:
Real estate, including construction	$	—	$	—	$	226	$	—	$	226	3.6	%
Business and corporate banking	51		—		113		3		167		.6
Total commercial	51		—		339		3		393		.9
Consumer loans:
Residential mortgages(2)	—		—		36		2		38		.2
Total consumer	—		—		36		2		38		.2
Total	$	51	$	—	$	375	$	5	$	431	.7
Nine Months Ended September 30, 2024
Commercial loans:
Real estate, including construction	$	—	$	33	$	43	$	159	$	235	3.5	%
Business and corporate banking	—		—		72		5		77		.3
Total commercial	—		33		115		164		312		.8
Consumer loans:
Residential mortgages(2)	—		—		—		1		1		.0
Total consumer	—		—		—		1		1		.0
Total	$	—	$	33	$	115	$	165	$	313	.5

(1)Represents loans with more than one type of payment modification during the period.

(2)During the nine months ended September 30, 2025, the carrying value of consumer mortgage loans with a payment modification primarily includes loans where the borrowers were provided with payment deferrals as a result of the recent California wildfires. During the nine months ended September 30, 2024, the carrying value of consumer mortgage loans with a payment modification includes loans that were recorded at the lower of amortized cost or fair value of the collateral less cost to sell.

At September 30, 2025 and December 31, 2024, additional commitments to lend to commercial borrowers who were provided with a loan payment modification during the respective year-to-date periods totaled $172 million and $25 million, respectively.

The following table summarizes the financial effect of loan payment modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2025 and 2024 by type of modification:

	Weighted-Average Interest Rate Reduction		Principal Forgiven (in millions)		Weighted-Average Term Extension / Payment Deferral (in years)
Three Months Ended September 30, 2025
Commercial loans:
Real estate, including construction	—	%	$	—	0.3
Business and corporate banking	1.1		—		2.7
Consumer loans:
Residential mortgages	—		—		0.5
Three Months Ended September 30, 2024
Commercial loans:
Real estate, including construction	—	%	$	—	2.2
Business and corporate banking	—		—		1.6
Nine Months Ended September 30, 2025
Commercial loans:
Real estate, including construction	—	%	$	—	0.3
Business and corporate banking	.7		—		1.4
Consumer loans:
Residential mortgages	1.0		—		0.7
Nine Months Ended September 30, 2024
Commercial loans:
Real estate, including construction	5.6	%	$	—	3.1
Business and corporate banking	.3		—		1.7
Consumer loans:
Residential mortgages	.5		—		0.6

The effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the methodology used to estimate lifetime ECL, which considers historical loss information including losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a material change to the allowance for credit losses is generally not recorded upon modification. In instances when a loan is modified in the form of principal forgiveness, the amount of principal forgiven is deemed uncollectible and that portion of the loan balance is charged off with a corresponding reduction to the allowance for credit losses.

We closely monitor the performance of modified loans to understand the effectiveness of our loss mitigation efforts. Upon determination that a modified loan or a portion of a modified loan has subsequently been deemed uncollectible, the loan or a portion of the loan is charged off in accordance with our accounting policies with a corresponding reduction to the allowance for credit losses.

The following table presents loans to borrowers experiencing financial difficulty with a payment modification during the previous 12 months which subsequently became 90 days or greater contractually delinquent during the three and nine months ended September 30, 2025 and 2024 by type of modification:

	Interest Rate Reduction		Principal Forgiveness		Term Extension / Significant Payment Deferral		Combination(1)		Total
	(in millions)
Nine Months Ended September 30, 2025
Consumer loans:
Residential mortgages	$	—	$	—	$	1	$	—	$	1
Total consumer	$	—	$	—	$	1	$	—	$	1
Nine Months Ended September 30, 2024
Commercial loans:
Business and corporate banking	$	—	$	—	$	1	$	—	$	1
Total commercial	$	—	$	—	$	1	$	—	$	1

(1)Represents loans with more than one type of payment modification during the period.

The following table presents the past due status of loans to borrowers experiencing financial difficulty with a payment modification during the previous 12 months at September 30, 2025 and December 31, 2024:

	Past Due
	30 - 89 Days		90+ Days		Current(1)		Total
	(in millions)
At September 30, 2025
Commercial loans:
Real estate, including construction	$	—	$	—	$	318	$	318
Business and corporate banking	—		13		197		210
Total commercial	—		13		515		528
Consumer loans:
Residential mortgages	2		—		37		39
Total consumer	2		—		37		39
Total	$	2	$	13	$	552	$	567
At December 31, 2024
Commercial loans:
Real estate, including construction	$	—	$	—	$	232	$	232
Business and corporate banking	—		29		177		206
Total commercial	—		29		409		438
Consumer loans:
Residential mortgages	1		—		4		5
Total consumer	1		—		4		5
Total	$	1	$	29	$	413	$	443

(1)Loans less than 30 days past due are presented as current.

Commercial Loan Credit Quality Indicators and Gross Charge-offs by Year of Origination

The following credit quality indicators are utilized to monitor our commercial loan portfolio:

Criticized loans  Criticized loan classifications presented in the table below are determined by the assignment of various criticized facility risk ratings based on the risk rating standards of our regulator. The following facility risk ratings are deemed to be criticized:

Special Mention - generally includes loans that are protected by collateral and/or the credit worthiness of the customer, but are potentially weak based upon economic or market circumstances which, if not checked or corrected, could weaken our credit position at some future date.

Substandard - includes loans that are inadequately protected by the underlying collateral and/or general credit worthiness of the customer. These loans present a distinct possibility that we will sustain some loss if the deficiencies are not corrected.

Doubtful - includes loans that have all the weaknesses exhibited by substandard loans, with the added characteristic that the weaknesses make collection or liquidation in full of the recorded loan highly improbable. However, although the possibility of loss is extremely high, certain factors exist which may strengthen the credit at some future date, and therefore the decision to charge-off the loan is deferred. Loans graded as doubtful are required to be placed in nonaccrual status.

The following table summarizes our criticized commercial loans, including a disaggregation of the loans by year of origination at September 30, 2025 and December 31, 2024:

	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total at Sep. 30, 2025
	(in millions)
Real estate, including construction:
Special mention	$	—	$	—	$	—	$	60	$	—	$	28	$	—	$	—	$	88
Substandard	2		—		—		55		—		371		—		—		428
Doubtful	—		—		—		—		27		275		17		—		319
Total real estate, including construction	2		—		—		115		27		674		17		—		835
Business and corporate banking:
Special mention	145		138		111		118		49		260		156		7		984
Substandard	160		259		62		96		27		368		289		12		1,273
Doubtful	4		60		10		23		—		47		33		—		177
Total business and corporate banking	309		457		183		237		76		675		478		19		2,434
Other commercial:
Substandard	—		—		1		—		—		—		—		—		1
Total other commercial	—		—		1		—		—		—		—		—		1
Total commercial	$	311	$	457	$	184	$	352	$	103	$	1,349	$	495	$	19	$	3,270
Total commercial:
Special mention	$	145	$	138	$	111	$	178	$	49	$	288	$	156	$	7	$	1,072
Substandard	162		259		63		151		27		739		289		12		1,702
Doubtful	4		60		10		23		27		322		50		—		496
Total commercial	$	311	$	457	$	184	$	352	$	103	$	1,349	$	495	$	19	$	3,270

	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total at Dec. 31, 2024
	(in millions)
Real estate, including construction:
Special mention	$	—	$	—	$	104	$	—	$	—	$	—	$	—	$	—	$	104
Substandard	—		—		64		—		—		432		28		—		524
Doubtful	—		—		—		32		—		207		—		—		239
Total real estate, including construction	—		—		168		32		—		639		28		—		867
Business and corporate banking:
Special mention	194		235		126		27		3		178		143		18		924
Substandard	141		103		44		43		—		210		541		5		1,087
Doubtful	1		10		—		—		—		178		44		—		233
Total business and corporate banking	336		348		170		70		3		566		728		23		2,244
Total commercial	$	336	$	348	$	338	$	102	$	3	$	1,205	$	756	$	23	$	3,111
Total commercial:
Special mention	$	194	$	235	$	230	$	27	$	3	$	178	$	143	$	18	$	1,028
Substandard	141		103		108		43		—		642		569		5		1,611
Doubtful	1		10		—		32		—		385		44		—		472
Total commercial	$	336	$	348	$	338	$	102	$	3	$	1,205	$	756	$	23	$	3,111

Nonperforming  The following table summarizes the nonperforming status of our commercial loan portfolio, including a disaggregation of the loans by year of origination at September 30, 2025 and December 31, 2024:

	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total at Sep. 30, 2025
	(in millions)
Real estate, including construction:
Performing loans	$	583	$	1,471	$	508	$	915	$	552	$	1,873	$	13	$	2	$	5,917
Nonaccrual loans	—		—		—		—		28		278		18		—		324
Total real estate, including construction	583		1,471		508		915		580		2,151		31		2		6,241
Business and corporate banking:
Performing loans	1,782		2,978		1,687		1,430		1,373		7,920		8,009		315		25,494
Nonaccrual loans	4		65		11		24		—		125		34		—		263
Accruing loans contractually past due 90 days or more	—		—		—		—		—		45		—		—		45
Total business and corporate banking	1,786		3,043		1,698		1,454		1,373		8,090		8,043		315		25,802
Other commercial:
Performing loans	148		439		105		203		76		1,509		7,342		—		9,822
Nonaccrual loans	—		—		1		—		—		4		—		—		5
Total other commercial	148		439		106		203		76		1,513		7,342		—		9,827
Total commercial	$	2,517	$	4,953	$	2,312	$	2,572	$	2,029	$	11,754	$	15,416	$	317	$	41,870
Total commercial:
Performing loans	$	2,513	$	4,888	$	2,300	$	2,548	$	2,001	$	11,302	$	15,364	$	317	$	41,233
Nonaccrual loans	4		65		12		24		28		407		52		—		592
Accruing loans contractually past due 90 days or more	—		—		—		—		—		45		—		—		45
Total commercial	$	2,517	$	4,953	$	2,312	$	2,572	$	2,029	$	11,754	$	15,416	$	317	$	41,870

	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total at Dec. 31, 2024
	(in millions)
Real estate, including construction:
Performing loans	$	1,035	$	946	$	1,109	$	850	$	262	$	2,129	$	17	$	3	$	6,351
Nonaccrual loans	—		—		—		32		—		210		19		—		261
Total real estate, including construction	1,035		946		1,109		882		262		2,339		36		3		6,612
Business and corporate banking:
Performing loans	2,322		2,734		1,721		1,986		276		7,477		8,188		295		24,999
Nonaccrual loans	2		11		1		—		—		205		61		—		280
Accruing loans contractually past due 90 days or more	—		40		—		—		—		47		60		—		147
Total business and corporate banking	2,324		2,785		1,722		1,986		276		7,729		8,309		295		25,426
Other commercial:
Performing loans	493		90		281		136		504		1,565		5,944		—		9,013
Total other commercial	493		90		281		136		504		1,565		5,944		—		9,013
Total commercial	$	3,852	$	3,821	$	3,112	$	3,004	$	1,042	$	11,633	$	14,289	$	298	$	41,051
Total commercial:
Performing loans	$	3,850	$	3,770	$	3,111	$	2,972	$	1,042	$	11,171	$	14,149	$	298	$	40,363
Nonaccrual loans	2		11		1		32		—		415		80		—		541
Accruing loans contractually past due 90 days or more	—		40		—		—		—		47		60		—		147
Total commercial	$	3,852	$	3,821	$	3,112	$	3,004	$	1,042	$	11,633	$	14,289	$	298	$	41,051

Credit risk profile  Commercial loans are assigned a credit rating based on the estimated probability of default. Investment grade includes loans with credit ratings of at least BBB- or above or the equivalent based on our internal credit rating system. The following table summarizes the credit risk profile of our commercial loan portfolio, including a disaggregation of the loans by year of origination at September 30, 2025 and December 31, 2024:

	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total at Sep. 30, 2025
	(in millions)
Real estate, including construction:
Investment grade	$	122	$	711	$	283	$	23	$	196	$	525	$	10	$	—	$	1,870
Non-investment grade	461		760		225		892		384		1,626		21		2		4,371
Total real estate, including construction	583		1,471		508		915		580		2,151		31		2		6,241
Business and corporate banking:
Investment grade	1,272		1,841		939		887		767		5,190		4,708		71		15,675
Non-investment grade	514		1,202		759		567		606		2,900		3,335		244		10,127
Total business and corporate banking	1,786		3,043		1,698		1,454		1,373		8,090		8,043		315		25,802
Other commercial:
Investment grade	71		293		55		70		76		1,132		6,519		—		8,216
Non-investment grade	77		146		51		133		—		381		823		—		1,611
Total other commercial	148		439		106		203		76		1,513		7,342		—		9,827
Total commercial	$	2,517	$	4,953	$	2,312	$	2,572	$	2,029	$	11,754	$	15,416	$	317	$	41,870
Total commercial:
Investment grade	$	1,465	$	2,845	$	1,277	$	980	$	1,039	$	6,847	$	11,237	$	71	$	25,761
Non-investment grade	1,052		2,108		1,035		1,592		990		4,907		4,179		246		16,109
Total commercial	$	2,517	$	4,953	$	2,312	$	2,572	$	2,029	$	11,754	$	15,416	$	317	$	41,870

	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total at Dec. 31, 2024
	(in millions)
Real estate, including construction:
Investment grade	$	67	$	307	$	27	$	—	$	165	$	757	$	—	$	—	$	1,323
Non-investment grade	968		639		1,082		882		97		1,582		36		3		5,289
Total real estate, including construction	1,035		946		1,109		882		262		2,339		36		3		6,612
Business and corporate banking:
Investment grade	1,325		1,668		981		1,357		190		4,896		4,752		88		15,257
Non-investment grade	999		1,117		741		629		86		2,833		3,557		207		10,169
Total business and corporate banking	2,324		2,785		1,722		1,986		276		7,729		8,309		295		25,426
Other commercial:
Investment grade	365		71		141		86		220		1,258		5,783		—		7,924
Non-investment grade	128		19		140		50		284		307		161		—		1,089
Total other commercial	493		90		281		136		504		1,565		5,944		—		9,013
Total commercial	$	3,852	$	3,821	$	3,112	$	3,004	$	1,042	$	11,633	$	14,289	$	298	$	41,051
Total commercial:
Investment grade	$	1,757	$	2,046	$	1,149	$	1,443	$	575	$	6,911	$	10,535	$	88	$	24,504
Non-investment grade	2,095		1,775		1,963		1,561		467		4,722		3,754		210		16,547
Total commercial	$	3,852	$	3,821	$	3,112	$	3,004	$	1,042	$	11,633	$	14,289	$	298	$	41,051

Gross Charge-offs  The following table summarizes gross charge-off dollars in our commercial loan portfolio, disaggregated by year of origination, during the nine months ended September 30, 2025 and 2024:

	2025		2024		2023		2022		2021		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(in millions)
Nine Months Ended September 30, 2025
Real estate, including construction	$	—	$	—	$	—	$	—	$	2	$	27	$	—	$	—	$	29
Business and corporate banking	—		1		18		—		—		3		55		—		77
Total commercial	$	—	$	1	$	18	$	—	$	2	$	30	$	55	$	—	$	106
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term Loans		Total
	(in millions)
Nine Months Ended September 30, 2024
Business and corporate banking	$	—	$	—	$	—	$	32	$	—	$	24	$	1	$	—	$	57
Total commercial	$	—	$	—	$	—	$	32	$	—	$	24	$	1	$	—	$	57

Consumer Loan Credit Quality Indicators and Gross Charge-offs by Year of Origination

The following credit quality indicators are utilized to monitor our consumer loan portfolio:

Delinquency  The following table summarizes dollars of two-months-and-over contractual delinquency for our consumer loan portfolio, including a disaggregation of the loans by year of origination at September 30, 2025 and December 31, 2024:

	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total at Sep. 30, 2025
	(in millions)
Residential mortgages(1)(2)	$	1	$	2	$	6	$	5	$	3	$	107	$	—	$	124
Home equity mortgages(1)(2)	—		—		—		1		—		4		—		5
Credit cards	—		—		—		—		—		—		3		3
Other consumer	—		—		—		—				1		—		1
Total consumer	$	1	$	2	$	6	$	6	$	3	$	112	$	3	$	133

	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total at Dec. 31, 2024
	(in millions)
Residential mortgages(1)(2)	$	1	$	5	$	11	$	2	$	12	$	103	$	—	$	134
Home equity mortgages(1)(2)	—		—		—		—		—		4		—		4
Credit cards	—		—		—		—		—		—		3		3
Other consumer	—		—		—		—		—		1		—		1
Total consumer	$	1	$	5	$	11	$	2	$	12	$	108	$	3	$	142

(1)At September 30, 2025 and December 31, 2024, consumer mortgage loan delinquency includes $62 million and $67 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.

(2)At both September 30, 2025 and December 31, 2024, consumer mortgage loans include $32 million of loans that were in the process of foreclosure.

Nonperforming  The following table summarizes the nonperforming status of our consumer loan portfolio, including a disaggregation of the loans by year of origination at September 30, 2025 and December 31, 2024:

	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total at Sep. 30, 2025
	(in millions)
Residential mortgages:
Performing loans	$	2,684	$	3,703	$	2,086	$	2,500	$	3,767	$	7,055	$	—	$	21,795
Nonaccrual loans	—		7		13		13		11		155		—		199
Total residential mortgages	2,684		3,710		2,099		2,513		3,778		7,210		—		21,994
Home equity mortgages:
Performing loans	43		46		65		60		8		157		—		379
Nonaccrual loans	—		—		2		1		1		5		—		9
Total home equity mortgages	43		46		67		61		9		162		—		388
Credit cards:
Performing loans	—		—		—		—		—		—		173		173
Accruing loans contractually past due 90 days or more	—		—		—		—		—		—		2		2
Total credit cards	—		—		—		—		—		—		175		175
Other consumer:
Performing loans	—		1		1		—		8		60		5		75
Accruing loans contractually past due 90 days or more	—		—		—		—		—		1		—		1
Total other consumer	—		1		1		—		8		61		5		76
Total consumer	$	2,727	$	3,757	$	2,167	$	2,574	$	3,795	$	7,433	$	180	$	22,633
Total consumer:
Performing loans	$	2,727	$	3,750	$	2,152	$	2,560	$	3,783	$	7,272	$	178	$	22,422
Nonaccrual loans	—		7		15		14		12		160		—		208
Accruing loans contractually past due 90 days or more	—		—		—		—		—		1		2		3
Total consumer	$	2,727	$	3,757	$	2,167	$	2,574	$	3,795	$	7,433	$	180	$	22,633

	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total at Dec. 31, 2024
	(in millions)
Residential mortgages:
Performing loans	$	4,237	$	2,314	$	2,615	$	3,924	$	2,601	$	5,171	$	—	$	20,862
Nonaccrual loans	—		5		10		8		10		140		—		173
Total residential mortgages	4,237		2,319		2,625		3,932		2,611		5,311		—		21,035
Home equity mortgages:
Performing loans	47		81		60		9		18		172		—		387
Nonaccrual loans	—		—		—		—		—		6		—		6
Total home equity mortgages	47		81		60		9		18		178		—		393
Credit cards:
Performing loans	—		—		—		—		—		—		192		192
Accruing loans contractually past due 90 days or more	—		—		—		—		—		—		3		3
Total credit cards	—		—		—		—		—		—		195		195
Other consumer:
Performing loans	—		—		3		8		4		59		4		78
Accruing loans contractually past due 90 days or more	—		—		—		—		—		1		—		1
Total other consumer	—		—		3		8		4		60		4		79
Total consumer	$	4,284	$	2,400	$	2,688	$	3,949	$	2,633	$	5,549	$	199	$	21,702
Total consumer:
Performing loans	$	4,284	$	2,395	$	2,678	$	3,941	$	2,623	$	5,402	$	196	$	21,519
Nonaccrual loans	—		5		10		8		10		146		—		179
Accruing loans contractually past due 90 days or more	—		—		—		—		—		1		3		4
Total consumer	$	4,284	$	2,400	$	2,688	$	3,949	$	2,633	$	5,549	$	199	$	21,702

Gross Charge-offs  The following table summarizes gross charge-off dollars in our consumer loan portfolio, disaggregated by year of origination, during the nine months ended September 30, 2025 and 2024:

	2025		2024		2023		2022		2021		Prior		Revolving Loans		Total
	(in millions)
Nine Months Ended September 30, 2025
Residential mortgages	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	1
Credit cards	—		—		—		—		—		—		5		5
Total consumer	$	—	$	—	$	—	$	—	$	—	$	1	$	5	$	6
	2024		2023		2022		2021		2020		Prior		Revolving Loans		Total
	(in millions)
Nine Months Ended September 30, 2024
Credit cards	$	—	$	—	$	—	$	—	$	—	$	—	$	6	$	6
Other consumer	—		—		—		—		—		1		—		1
Total consumer	$	—	$	—	$	—	$	—	$	—	$	1	$	6	$	7

Concentration of Credit Risk  At September 30, 2025 and December 31, 2024, our loan portfolios included interest-only residential mortgage and home equity mortgage loans totaling $4,668 million and $4,650 million, respectively. An interest-only residential mortgage loan allows a customer to pay the interest-only portion of the monthly payment for a period of time which results in lower payments during the initial loan period. However, subsequent events affecting a customer's financial position could affect the ability of customers to repay the loan in the future when the principal payments are required which increases the credit risk of this loan type.