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Loans
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans Loans
In connection with the simplification of our organizational structure and to better reflect how we manage our remaining commercial mortgage loan exposure, in the first quarter of 2026, we updated our presentation of commercial loans. Commercial mortgages previously reported within real estate, including construction are now presented as a separate category. Unsecured loans and loans that are indirectly secured by commercial real estate are now included within business and corporate banking. As a result, we have reclassified $3.2 billion of loans to business and corporate banking at December 31, 2025 to conform to the current year presentation. All tables below have been recast, as applicable, to reflect this change.
Loans consisted of the following:
March 31, 2026December 31, 2025
 (in millions)
Commercial loans:
Commercial mortgages$1,263 $1,439 
Business and corporate banking
30,635 28,305 
Other commercial:
Affiliates(1)
5,852 6,035 
Other3,484 3,565 
Total other commercial9,336 9,600 
Total commercial41,234 39,344 
Consumer loans:
Residential mortgages19,609 19,789 
Other consumer743 761 
Total consumer20,352 20,550 
Total loans$61,586 $59,894 
(1)See Note 11, "Related Party Transactions," for additional information regarding loans to HSBC affiliates.
At March 31, 2026 and December 31, 2025, net deferred origination costs and net unamortized discounts on our loans were immaterial.
Aging Analysis of Past Due Loans  The following table summarizes the past due status of our loans. The aging of past due amounts is determined based on the contractual delinquency status of payments under the loan. An account is generally considered to be contractually delinquent when payments have not been made in accordance with the loan terms. Delinquency status is affected by customer account management policies and practices such as re-age, which results in the re-setting of the contractual delinquency status to current.
 Past DueTotal Past Due 30 Days or More  
30 - 89 Days90+ Days
Current(1)
Total Loans
 (in millions)
At March 31, 2026
Commercial loans:
Commercial mortgages$— $105 $105 $1,158 $1,263 
Business and corporate banking
103 81 184 30,451 30,635 
Other commercial138 — 138 9,198 9,336 
Total commercial241 186 427 40,807 41,234 
Consumer loans:
Residential mortgages178 112 290 19,319 19,609 
Other consumer7 8 15 728 743 
Total consumer185 120 305 20,047 20,352 
Total loans$426 $306 $732 $60,854 $61,586 
At December 31, 2025
Commercial loans:
Commercial mortgages$— $106 $106 $1,333 $1,439 
Business and corporate banking
239 15 254 28,051 28,305 
Other commercial41 — 41 9,559 9,600 
Total commercial280 121 401 38,943 39,344 
Consumer loans:
Residential mortgages
178 100 278 19,511 19,789 
Other consumer6 8 14 747 761 
Total consumer184 108 292 20,258 20,550 
Total loans$464 $229 $693 $59,201 $59,894 
(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 LoansAccruing Loans Contractually Past Due 90 Days or MoreNonaccrual Loans With No Allowance For Credit Losses
 (in millions)
At March 31, 2026
Commercial loans:
Commercial mortgages$251 $— $1 
Business and corporate banking306 — 76 
Total commercial557 — 77 
Consumer loans:
Residential mortgages(1)
211 — 84 
Other consumer8 4 6 
Total consumer219 4 90 
Total nonperforming loans$776 $4 $167 
At December 31, 2025
Commercial loans:
Commercial mortgages$257 $— $2 
Business and corporate banking273 — 46 
Other commercial3 — 2 
Total commercial533 — 50 
Consumer loans:
Residential mortgages(1)
206 — 67 
Other consumer9 4 6 
Total consumer215 4 73 
Total nonperforming loans$748 $4 $123 
(1)At March 31, 2026 and December 31, 2025, includes $116 million and $99 million, respectively, of residential mortgage loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.
Interest income that was recorded on nonaccrual loans and included in interest income was immaterial during the three months ended March 31, 2026 and 2025.
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 March 31, 2026 and December 31, 2025, we had collateral-dependent residential mortgage loans totaling $269 million and $256 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 real estate, 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 March 31, 2026 and December 31, 2025, we had collateral-dependent commercial loans totaling $544 million and $513 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.
Loan payment modifications made to consumer borrowers experiencing financial difficulty were immaterial during the three months ended March 31, 2026 and 2025.
The following table presents information about loan payment modifications made to commercial borrowers experiencing financial difficulty by type of modification, including the period-end carrying value and as a percentage of total loans:
Interest Rate ReductionPrincipal ForgivenessTerm Extension / Significant Payment Deferral
Combination(1)
Total% of Total Loans
(dollars are in millions)
Three Months Ended March 31, 2026
Commercial loans:
Commercial mortgages$— $— $17 $— $17 1.3 %
Business and corporate banking— — 152 — 152 .5 
Total commercial$— $— $169 $— $169 .4 
Three Months Ended March 31, 2025
Commercial loans:
Business and corporate banking$— $— $14 $— $14 .1 %
Total commercial$— $— $14 $— $14 .0 
(1)Represents loans with more than one type of payment modification during the period.
At March 31, 2026 and December 31, 2025, additional commitments to lend to commercial borrowers who were provided with a loan payment modification during the respective year-to-date periods totaled $106 million and $116 million, respectively.
The following table summarizes the financial effect of loan payment modifications made to commercial borrowers experiencing financial difficulty by type of modification:
Weighted-Average Interest Rate ReductionPrincipal Forgiven
(in millions)		Weighted-Average Term Extension / Payment Deferral
(in years)
Three Months Ended March 31, 2026
Commercial loans:
Commercial mortgages— %$— 0.5
Business and corporate banking— — 2.0
Three Months Ended March 31, 2025
Commercial loans:
Business and corporate banking— %$— 1.1
The effect of most modifications made to borrowers experiencing financial difficulty is already included in the allowance for credit losses because of the methodology used to estimate lifetime ECL, which considers historical loss information including losses from modifications of loans to borrowers experiencing financial difficulty. As a result, a material change to the allowance for credit losses is generally not recorded upon modification. In instances when a loan is modified in the form of
principal forgiveness, the amount of principal forgiven is deemed uncollectible and that portion of the loan balance is charged off with a corresponding reduction to the allowance for credit losses.
We closely monitor the performance of modified loans to understand the effectiveness of our loss mitigation efforts. Upon determination that a modified loan or a portion of a modified loan has subsequently been deemed uncollectible, the loan or a portion of the loan is charged off in accordance with our accounting policies with a corresponding reduction to the allowance for credit losses.
Loans to commercial borrowers experiencing financial difficulty with a payment modification during the previous 12 months which subsequently became 90 days or greater contractually delinquent were immaterial during the three months ended March 31, 2026 and 2025.
The following table presents the past due status of loans to commercial borrowers experiencing financial difficulty with a payment modification during the previous 12 months:
 Past Due  
30 - 89 Days90+ Days
Current(1)
Total
 (in millions)
At March 31, 2026
Commercial loans:
Commercial mortgages$— $17 $— $17 
Business and corporate banking— 69 286 355 
Total commercial$— $86 $286 $372 
At December 31, 2025
Commercial loans:
Commercial mortgages$— $18 $77 $95 
Business and corporate banking— 9 249 258 
Total commercial$— $27 $326 $353 
(1)Loans less than 30 days past due are presented as current.
Commercial Loan Credit Quality Indicator and Gross Charge-offs by Year of Origination
Criticized The primary credit quality indicator utilized to monitor our commercial loan portfolio is our internal classification of pass rated or criticized, which is determined by the assignment of various facility risk ratings based on the risk rating standards of our regulators. The criticized classification includes loans that are rated special mention, substandard or doubtful, which have an elevated level of risk.
The following table summarizes the criticized status of our commercial loans, including a disaggregation of the loans by year of origination:
20262025202420232022PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Mar. 31, 2026
 (in millions)
Commercial mortgages:
Pass rated$— $1 $— $234 $196 $305 $— $— $736 
Criticized— — 19 — 136 372 — — 527 
Total commercial mortgages— 1 19 234 332 677 — — 1,263 
Business and corporate banking:
Pass rated1,568 4,732 3,130 1,544 1,074 5,537 9,835 1,131 28,551 
Criticized6 402 566 154 124 292 530 10 2,084 
Total business and corporate banking1,574 5,134 3,696 1,698 1,198 5,829 10,365 1,141 30,635 
Other commercial:
Pass rated35 394 255 96 314 1,560 6,682 — 9,336 
Total other commercial35 394 255 96 314 1,560 6,682 — 9,336 
Total commercial$1,609 $5,529 $3,970 $2,028 $1,844 $8,066 $17,047 $1,141 $41,234 
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Dec. 31, 2025
 (in millions)
Commercial mortgages:
Pass rated$2 $18 $237 $266 $34 $278 $— $— $835 
Criticized— 1 — 120 — 483 — — 604 
Total commercial mortgages2 19 237 386 34 761 — — 1,439 
Business and corporate banking:
Pass rated4,634 3,496 1,504 1,486 798 4,887 8,316 1,040 26,161 
Criticized326 609 183 162 75 307 471 11 2,144 
Total business and corporate banking4,960 4,105 1,687 1,648 873 5,194 8,787 1,051 28,305 
Other commercial:
Pass rated484 319 87 319 338 1,192 6,861 — 9,600 
Total other commercial484 319 87 319 338 1,192 6,861 — 9,600 
Total commercial$5,446 $4,443 $2,011 $2,353 $1,245 $7,147 $15,648 $1,051 $39,344 
Gross Charge-offs  The following table summarizes gross charge-off dollars in our commercial loan portfolio, disaggregated by year of origination:
20262025202420232022PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal
 (in millions)
Three Months Ended March 31, 2026
Business and corporate banking$— $— $— $— $— $13 $— $— $13 
Total commercial$— $— $— $— $— $13 $— $— $13 
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal
(in millions)
Three Months Ended March 31, 2025
Business and corporate banking$— $— $7 $— $— $— $8 $— $15 
Total commercial$— $— $7 $— $— $— $8 $— $15 
Consumer Loan Credit Quality Indicator and Gross Charge-offs by Year of Origination
Delinquency  The primary credit quality indicator utilized to monitor our consumer loan portfolio is delinquency. At March 31, 2026 and December 31, 2025, delinquency for other consumer loans was immaterial.
The following table summarizes dollars of two-months-and-over contractual delinquency for our residential mortgage loan portfolio, including a disaggregation of the loans by year of origination:
20262025202420232022PriorRevolving
Loans		Total at Mar. 31, 2026
 (in millions)
Residential mortgages:
Current - 59 days past due$605 $3,035 $2,333 $1,306 $2,074 $10,111 $— $19,464 
60 days or more past due(1)(2)
— — — 10 8 127 — 145 
Total residential mortgages$605 $3,035 $2,333 $1,316 $2,082 $10,238 $— $19,609 
20252024202320222021PriorRevolving
Loans		Total at Dec. 31, 2025
 (in millions)
Residential mortgages:
Current - 59 days past due$3,203 $2,575 $1,378 $2,100 $3,673 $6,723 $— $19,652 
60 days or more past due(1)(2)
— 3 9 10 — 115 — 137 
Total residential mortgages$3,203 $2,578 $1,387 $2,110 $3,673 $6,838 $— $19,789 
(1)At March 31, 2026 and December 31, 2025, includes $74 million and $57 million, respectively, of residential mortgage loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.
(2)At March 31, 2026 and December 31, 2025, includes $46 million and $30 million, respectively, of residential mortgage loans that were in the process of foreclosure.
Gross Charge-offs  Gross charge-off dollars in our consumer loan portfolio were immaterial during the three months ended March 31, 2026 and 2025.