v3.25.1
Loans (Tables)
 3 Months Ended
Mar. 31, 2025
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Components of Loans
Loans consisted of the following:
March 31, 2025December 31, 2024
 (in millions)
Commercial loans:
Real estate, including construction$6,341 $6,612 
Business and corporate banking
26,212 25,426 
Other commercial:
Affiliates(1)
5,257 5,449 
Other3,532 3,564 
Total other commercial8,789 9,013 
Total commercial41,342 41,051 
Consumer loans:
Residential mortgages21,430 21,035 
Home equity mortgages388 393 
Credit cards177 195 
Other consumer(2)
77 79 
Total consumer22,072 21,702 
Total loans$63,414 $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 $10 million and $11 million at March 31, 2025 and December 31, 2024, respectively. See Note 9, "Fair Value Option," for further details.
Summary of Past Due Status of Loans
 Past DueTotal Past Due 30 Days or More  
30 - 89 Days90+ Days
Current(1)
Total Loans
 (in millions)
At March 31, 2025
Commercial loans:
Real estate, including construction$— $20 $20 $6,321 $6,341 
Business and corporate banking
1 51 52 26,160 26,212 
Other commercial82 — 82 8,707 8,789 
Total commercial83 71 154 41,188 41,342 
Consumer loans:
Residential mortgages177 97 274 21,156 21,430 
Home equity mortgages2 6 8 380 388 
Credit cards2 2 4 173 177 
Other consumer2 1 3 74 77 
Total consumer183 106 289 21,783 22,072 
Total loans$266 $177 $443 $62,971 $63,414 
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 commercial31 — 31 8,982 9,013 
Total commercial98 201 299 40,752 41,051 
Consumer loans:
Residential mortgages
174 105 279 20,756 21,035 
Home equity mortgages2 4 6 387 393 
Credit cards2 2 4 191 195 
Other consumer2 1 3 76 79 
Total consumer180 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.
Summary of Nonaccrual Loans and Accruing Receivables 90 Days or More Delinquent 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, 2025
Commercial loans:
Real estate, including construction$384 $— $19 
Business and corporate banking336 46 63 
Total commercial720 46 82 
Consumer loans:
Residential mortgages(1)(2)(3)
168 — 74 
Home equity mortgages(1)(2)
8 — 6 
Credit cards— 2 — 
Other consumer— 1 — 
Total consumer176 3 80 
Total nonperforming loans$896 $49 $162 
At December 31, 2024
Commercial loans:
Real estate, including construction$261 $— $21 
Business and corporate banking280 147 33 
Total commercial541 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 consumer179 4 85 
Total nonperforming loans$720 $151 $139 
(1)At March 31, 2025 and December 31, 2024, nonaccrual consumer mortgage loans include $102 million and $106 million, respectively, of loans that are carried at the lower of amortized cost or fair value of the collateral less cost to sell.
(2)Nonaccrual consumer mortgage loans include all loans which are 90 or more days contractually delinquent as well as loans discharged under Chapter 7 bankruptcy and not re-affirmed and second lien loans where the first lien loan that we own or service is 90 or more days contractually delinquent.
(3)Nonaccrual consumer mortgage loans for all periods does not include guaranteed loans purchased from the Government National Mortgage Association. Repayment of these loans is predominantly insured by the Federal Housing Administration and as such, these loans have different risk characteristics from the rest of our consumer loan portfolio.
Summary of Modified Loans
The following table presents information about loan payment modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025 and 2024 by type of modification, including the period-end carrying value and as a percentage of total loans.
Interest Rate ReductionPrincipal ForgivenessTerm Extension / Significant Payment Deferral
Combination(1)
Total% of Total Loans
(dollars are in millions)
Three Months Ended March 31, 2025
Commercial loans:
Business and corporate banking$— $— $14 $— $14 .1 %
Total commercial$— $— $14 $— $14 .0 
Three Months Ended March 31, 2024
Commercial loans:
Business and corporate banking$— $— $65 $— $65 .2 %
Total commercial$— $— $65 $— $65 .2 
(1)Represents loans with more than one type of payment modification during the period.
The following table summarizes the financial effect of loan payment modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025 and 2024 by type of modification:
Weighted-Average Interest Rate ReductionPrincipal Forgiven
(in millions)		Weighted-Average Term Extension / Payment Deferral
(in years)
Three Months Ended March 31, 2025
Commercial loans:
Business and corporate banking— %$— 1.1
Three Months Ended March 31, 2024
Commercial loans:
Business and corporate banking— %$— 1.8
The following table presents loans to borrowers experiencing financial difficulty with a payment modification during the previous 12 months which subsequently became 90 days or greater contractually delinquent during the three months ended March 31, 2025 and 2024 by type of modification:
Interest Rate ReductionPrincipal ForgivenessTerm Extension / Significant Payment Deferral
Combination(1)
Total
(in millions)
Three Months Ended March 31, 2025
Consumer loans:
Residential mortgages$— $— $1 $— $1 
Total consumer$— $— $1 $— $1 
Three Months Ended March 31, 2024
Commercial loans:
Business and corporate banking$— $— $1 $— $1 
Total commercial$— $— $1 $— $1 
(1)Represents loans with more than one type of payment modification during the period.
Summary of Past Due Status of Loans with Payment Modification
The following table presents the past due status of loans to borrowers experiencing financial difficulty with a payment modification during the previous 12 months at March 31, 2025 and December 31, 2024:
 Past Due  
30 - 89 Days90+ Days
Current(1)
Total
 (in millions)
At March 31, 2025
Commercial loans:
Real estate, including construction$— $— $236 $236 
Business and corporate banking— 28 134 162 
Total commercial— 28 370 398 
Consumer loans:
Residential mortgages— 1 4 5 
Total consumer— 1 4 5 
Total$— $29 $374 $403 
At December 31, 2024
Commercial loans:
Real estate, including construction$— $— $232 $232 
Business and corporate banking— 29 177 206 
Total commercial— 29 409 438 
Consumer loans:
Residential mortgages
1 — 4 5 
Total consumer1 — 4 5 
Total$1 $29 $413 $443 
(1)Loans less than 30 days past due are presented as current.
Commercial loans  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of Criticized Commercial Loans
The following table summarizes our criticized commercial loans, including a disaggregation of the loans by year of origination as of March 31, 2025 and December 31, 2024:
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Mar. 31, 2025
 (in millions)
Real estate, including construction:
Special mention$— $— $— $105 $— $69 $— $— $174 
Substandard2 — — 54 — 303 — — 359 
Doubtful— — — — 32 332 — — 364 
Total real estate, including construction2 — — 159 32 704 — — 897 
Business and corporate banking:
Special mention97 195 155 92 25 240 154 10 968 
Substandard40 163 135 47 44 235 402 13 1,079 
Doubtful— 4 — 37 — 172 63 — 276 
Total business and corporate banking137 362 290 176 69 647 619 23 2,323 
Total commercial$139 $362 $290 $335 $101 $1,351 $619 $23 $3,220 
Total commercial:
Special mention$97 $195 $155 $197 $25 $309 $154 $10 $1,142 
Substandard42 163 135 101 44 538 402 13 1,438 
Doubtful— 4 — 37 32 504 63 — 640 
Total commercial$139 $362 $290 $335 $101 $1,351 $619 $23 $3,220 
20242023202220212020PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Dec. 31, 2024
 (in millions)
Real estate, including construction:
Special mention$— $— $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 mention194 235 126 27 3 178 143 18 924 
Substandard141 103 44 43 — 210 541 5 1,087 
Doubtful1 10 — — — 178 44 — 233 
Total business and corporate banking336 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 
Substandard141 103 108 43 — 642 569 5 1,611 
Doubtful1 10 — 32 — 385 44 — 472 
Total commercial$336 $348 $338 $102 $3 $1,205 $756 $23 $3,111 
Summary of Nonperforming Status The following table summarizes the nonperforming status of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of March 31, 2025 and December 31, 2024:
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Mar. 31, 2025
 (in millions)
Real estate, including construction:
Performing loans$50 $1,673 $618 $1,026 $718 $1,856 $14 $2 $5,957 
Nonaccrual loans— — — — 32 334 18 — 384 
Total real estate, including construction50 1,673 618 1,026 750 2,190 32 2 6,341 
Business and corporate banking:
Performing loans611 2,503 2,437 1,832 1,853 7,799 8,490 305 25,830 
Nonaccrual loans— 4 1 39 — 219 73 — 336 
Accruing loans contractually past due 90 days or more— — — — — 46 — — 46 
Total business and corporate banking611 2,507 2,438 1,871 1,853 8,064 8,563 305 26,212 
Other commercial:
Performing loans10 596 126 276 79 1,781 5,921 — 8,789 
Total other commercial10 596 126 276 79 1,781 5,921 — 8,789 
Total commercial$671 $4,776 $3,182 $3,173 $2,682 $12,035 $14,516 $307 $41,342 
Total commercial:
Performing loans$671 $4,772 $3,181 $3,134 $2,650 $11,436 $14,425 $307 $40,576 
Nonaccrual loans— 4 1 39 32 553 91 — 720 
Accruing loans contractually past due 90 days or more— — — — — 46 — — 46 
Total commercial$671 $4,776 $3,182 $3,173 $2,682 $12,035 $14,516 $307 $41,342 
20242023202220212020PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal 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 construction1,035 946 1,109 882 262 2,339 36 3 6,612 
Business and corporate banking:
Performing loans2,322 2,734 1,721 1,986 276 7,477 8,188 295 24,999 
Nonaccrual loans2 11 1 — — 205 61 — 280 
Accruing loans contractually past due 90 days or more— 40 — — — 47 60 — 147 
Total business and corporate banking2,324 2,785 1,722 1,986 276 7,729 8,309 295 25,426 
Other commercial:
Performing loans493 90 281 136 504 1,565 5,944 — 9,013 
Total other commercial493 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 loans2 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 $41,051 
Summary of Credit Quality Indicators The following table summarizes the credit risk profile of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of March 31, 2025 and December 31, 2024:
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Mar. 31, 2025
 (in millions)
Real estate, including construction:
Investment grade$— $317 $— $— $— $286 $— $— $603 
Non-investment grade50 1,356 618 1,026 750 1,904 32 2 5,738 
Total real estate, including construction50 1,673 618 1,026 750 2,190 32 2 6,341 
Business and corporate banking:
Investment grade413 1,158 1,186 1,008 1,025 4,398 3,956 40 13,184 
Non-investment grade198 1,349 1,252 863 828 3,666 4,607 265 13,028 
Total business and corporate banking611 2,507 2,438 1,871 1,853 8,064 8,563 305 26,212 
Other commercial:
Investment grade10 302 66 114 71 1,310 5,745 — 7,618 
Non-investment grade— 294 60 162 8 471 176 — 1,171 
Total other commercial10 596 126 276 79 1,781 5,921 — 8,789 
Total commercial$671 $4,776 $3,182 $3,173 $2,682 $12,035 $14,516 $307 $41,342 
Total commercial:
Investment grade$423 $1,777 $1,252 $1,122 $1,096 $5,994 $9,701 $40 $21,405 
Non-investment grade248 2,999 1,930 2,051 1,586 6,041 4,815 267 19,937 
Total commercial$671 $4,776 $3,182 $3,173 $2,682 $12,035 $14,516 $307 $41,342 
20242023202220212020PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Dec. 31, 2024
 (in millions)
Real estate, including construction:
Investment grade$67 $307 $27 $— $165 $757 $— $— $1,323 
Non-investment grade968 639 1,082 882 97 1,582 36 3 5,289 
Total real estate, including construction1,035 946 1,109 882 262 2,339 36 3 6,612 
Business and corporate banking:
Investment grade1,325 1,668 981 1,357 190 4,896 4,752 88 15,257 
Non-investment grade999 1,117 741 629 86 2,833 3,557 207 10,169 
Total business and corporate banking2,324 2,785 1,722 1,986 276 7,729 8,309 295 25,426 
Other commercial:
Investment grade365 71 141 86 220 1,258 5,783 — 7,924 
Non-investment grade128 19 140 50 284 307 161 — 1,089 
Total other commercial493 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 grade2,095 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 $41,051 
The following table summarizes gross charge-off dollars in our commercial loan portfolio, disaggregated by year of origination, during the three months ended March 31, 2025 and 2024:
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal
 (in millions)
Three Months Ended March 31, 2025
Business and corporate banking$— $— $7 $— $— $— $8 $— $15 
Total commercial$— $— $7 $— $— $— $8 $— $15 
20242023202220212020PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal
(in millions)
Three Months Ended March 31, 2024
Business and corporate banking$— $— $— $— $— $— $1 $— $1 
Total commercial$— $— $— $— $— $— $1 $— $1 
Consumer loans  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of Nonperforming Status The following table summarizes the nonperforming status of our consumer loan portfolio, including a disaggregation of the loans by year of origination as of March 31, 2025 and December 31, 2024:
20252024202320222021PriorRevolving
Loans		Total at Mar. 31, 2025
 (in millions)
Residential mortgages:
Performing loans$858 $4,115 $2,258 $2,581 $3,871 $7,579 $— $21,262 
Nonaccrual loans
— 2 6 12 9 139 — 168 
Total residential mortgages858 4,117 2,264 2,593 3,880 7,718 — 21,430 
Home equity mortgages:
Performing loans13 47 76 59 8 177 — 380 
Nonaccrual loans
— — 1 — 1 6 — 8 
Total home equity mortgages13 47 77 59 9 183 — 388 
Credit cards:
Performing loans— — — — — — 175 175 
Accruing loans contractually past due 90 days or more
— — — — — — 2 2 
Total credit cards— — — — — — 177 177 
Other consumer:
Performing loans— 2 1 3 8 58 4 76 
Accruing loans contractually past due 90 days or more
— — — — — 1 — 1 
Total other consumer— 2 1 3 8 59 4 77 
Total consumer$871 $4,166 $2,342 $2,655 $3,897 $7,960 $181 $22,072 
Total consumer:
Performing loans$871 $4,164 $2,335 $2,643 $3,887 $7,814 $179 $21,893 
Nonaccrual loans— 2 7 12 10 145 — 176 
Accruing loans contractually past due 90 days or more
— — — — — 1 2 3 
Total consumer$871 $4,166 $2,342 $2,655 $3,897 $7,960 $181 $22,072 
20242023202220212020PriorRevolving
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 mortgages4,237 2,319 2,625 3,932 2,611 5,311 — 21,035 
Home equity mortgages:
Performing loans47 81 60 9 18 172 — 387 
Nonaccrual loans
— — — — — 6 — 6 
Total home equity mortgages47 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 
Summary of Credit Quality Indicators 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 as of March 31, 2025 and December 31, 2024:
20252024202320222021PriorRevolving
Loans		Total at Mar. 31, 2025
 (in millions)
Residential mortgages(1)(2)
$— $— $2 $10 $7 $107 $— $126 
Home equity mortgages(1)(2)
— — 1 — 1 5 — 7 
Credit cards— — — — — — 3 3 
Other consumer— — — — 1 — 1 
Total consumer$— $— $3 $10 $8 $113 $3 $137 
20242023202220212020PriorRevolving
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 March 31, 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 March 31, 2025 and December 31, 2024, consumer mortgage loans include $39 million and $32 million, respectively, of loans that were in the process of foreclosure.
The following table summarizes gross charge-off dollars in our consumer loan portfolio, disaggregated by year of origination, during the three months ended March 31, 2025 and 2024:
20252024202320222021PriorRevolving
Loans		Total
 (in millions)
Three Months Ended March 31, 2025
Credit cards$— $— $— $— $— $— $2 $2 
Total consumer$— $— $— $— $— $— $2 $2 
20242023202220212020PriorRevolving
Loans		Total
(in millions)
Three Months Ended March 31, 2024
Credit cards$— $— $— $— $— $— $2 $2 
Total consumer$— $— $— $— $— $— $2 $2