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Loans and Allowance for Credit Losses (Tables)
 3 Months Ended
Mar. 31, 2025
Credit Loss [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)March 31, 2025December 31, 2024
Domestic(1):
Commercial and financial:
Fund finance(2)
$16,413 $16,347 
Leveraged loans2,795 2,742 
Overdrafts1,596 1,208 
Collateralized loan obligations in loan form95 50 
Other(3)
2,691 3,220 
Commercial real estate2,696 2,842 
Total domestic$26,286 $26,409 
Foreign(1):
Commercial and financial:
Fund finance(2)
$6,736 $6,601 
Leveraged loans1,069 1,082 
Overdrafts1,424 772 
Collateralized loan obligations in loan form9,170 8,336 
Total foreign18,399 16,791 
Total loans(4)
44,685 43,200 
Allowance for credit losses(176)(174)
Loans, net of allowance$44,509 $43,026 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $11.78 billion private equity capital call finance loans, $7.84 billion loans to real money funds and $1.50 billion loans to business development companies as of March 31, 2025, compared to $11.54 billion private equity capital call finance loans, $8.09 billion loans to real money funds and $1.44 billion loans to business development companies as of December 31, 2024.
(3) Includes $2.48 billion securities finance loans and $214 million loans to municipalities as of March 31, 2025 and $3.01 billion securities finance loans and $214 million loans to municipalities as of December 31, 2024.
(4) As of March 31, 2025, excluding overdrafts, floating rate loans totaled $38.90 billion and fixed rate loans totaled $2.76 billion. We have entered into interest rate swap agreements to hedge the forecasted cash flows associated with EURIBOR indexed floating-rate loans. See Note 10 to the consolidated financial statements in our 2024 Form 10-K for additional details.
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator
The following tables present our recorded loans to counterparties by risk rating, as noted above, as of the dates indicated:
March 31, 2025Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$37,104 $1,747 $38,851 
Speculative4,651 463 5,114 
Special mention165 85 250 
Substandard49 174 223 
Doubtful— 227 227 
Total(1)(2)
$41,969 $2,696 $44,665 
December 31, 2024Commercial and FinancialCommercial Real EstateTotal Loans 
(In millions)
Investment grade$35,831 $1,969 $37,800 
Speculative4,278 409 4,687 
Special mention187 62 249 
Substandard48 211 259 
Doubtful— 191 191 
Total(1)(2)
$40,344 $2,842 $43,186 
(1) Loans include $3.02 billion and $1.98 billion of overdrafts as of March 31, 2025 and December 31, 2024, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of March 31, 2025, $2.70 billion overdrafts were investment grade and $0.32 billion overdrafts were speculative.
(2) Total does not include $20 million and $14 million of loans classified as held-for-sale as of March 31, 2025 and December 31, 2024, respectively.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of March 31, 2025. For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement.
(In millions)20252024202320222021PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,812 $875 $222 $39 $47 $203 $17,163 $20,361 
Speculative418 1,651 133 133 284 116 405 3,140 
Special mention— 47 — — 15 — — 62 
Substandard— — — 12 — — — 12 
Total commercial and financing$2,230 $2,573 $355 $184 $346 $319 $17,568 $23,575 
Commercial real estate:
Risk Rating:
Investment grade$— $41 $63 $344 $317 $982 $— $1,747 
Speculative— — 153 20 31 259 — 463 
Special mention— — — — — 85 — 85 
Substandard— — — — — 174 — 174 
Doubtful— — — — — 227 — 227 
Total commercial real estate$— $41 $216 $364 $348 $1,727 $— $2,696 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$2,786 $3,836 $1,634 $724 $1,696 $— $6,067 $16,743 
Speculative376 660 50 51 186 57 131 1,511 
Special mention43 — 36 — — 24 — 103 
Substandard— — — — 37 — — 37 
Total commercial and financing$3,205 $4,496 $1,720 $775 $1,919 $81 $6,198 $18,394 
Total loans(2)
$5,435 $7,110 $2,291 $1,323 $2,613 $2,127 $23,766 $44,665 
(1) Any reserve associated with accrued interest is not material. As of March 31, 2025, accrued interest receivable of $340 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2) Total does not include $20 million of loans classified as held-for-sale as of March 31, 2025.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2024:
(In millions)20242023202220212020PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,946 $223 $89 $47 $6 $197 $18,044 $20,552 
Speculative1,834 173 154 387 53 155 136 2,892 
Special mention47 10 — 54 — — — 111 
Substandard— — 12 — — — — 12 
Total commercial and financing$3,827 $406 $255 $488 $59 $352 $18,180 $23,567 
Commercial real estate:
Risk Rating:
Investment grade$41 $63 $488 $278 $128 $971 $— $1,969 
Speculative— 153 20 69 100 67 — 409 
Special mention— — — — — 62 — 62 
Substandard— — — — — 211 — 211 
Doubtful— — — — — 191 — 191 
Total commercial real estate$41 $216 $508 $347 $228 $1,502 $— $2,842 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$4,243 $1,796 $1,152 $2,187 $— $— $5,901 $15,279 
Speculative607 174 44 246 46 43 226 1,386 
Special mention— 35 26 15 — — — 76 
Substandard— — — 36 — — — 36 
Total commercial and financing$4,850 $2,005 $1,222 $2,484 $46 $43 $6,127 $16,777 
Total loans(2)
$8,718 $2,627 $1,985 $3,319 $333 $1,897 $24,307 $43,186 
(1) Any reserve associated with accrued interest is not material. As of December 31, 2024, accrued interest receivable of $327 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2) Total does not include $14 million of loans classified as held-for-sale as of December 31, 2024.
Schedule of Activity in the Allowance for Loan Losses
The following tables present the activity in the allowance for credit losses by portfolio and class for the periods indicated:
Three Months Ended March 31, 2025
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateOff-Balance Sheet CommitmentsTotal
Allowance for credit losses:
Beginning balance$68 $4 $102 $9 $183 
Provision6 2 3 1 12 
Charge-offs(2)
(9)— — — (9)
Ending balance$65 $6 $105 $10 $186 
(1) Includes $4 million allowance for credit losses on Fund Finance loans and $2 million on other loans.
(2) Related to the sale of leveraged loans in the first quarter of 2025.
Three Months Ended March 31, 2024
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$72 $4 $60 $1 $14 $(1)$150 
Provision
5 1 25 — (4)— 27 
Charge-offs(2)
(6)— (25)— — — (31)
Ending balance$71 $5 $60 $1 $10 $(1)$146 
(1) Includes $4 million allowance for credit losses on Fund Finance loans and $1 million on other loans.
(2) Related to the sale of commercial real estate and leveraged loans in the first quarter of 2024.