v3.25.2
Loans (Tables)
 6 Months Ended
Jun. 30, 2025
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Components of Loans
Loans consisted of the following:
June 30, 2025December 31, 2024
 (in millions)
Commercial loans:
Real estate, including construction$6,346 $6,612 
Business and corporate banking
26,750 25,426 
Other commercial:
Affiliates(1)
5,494 5,449 
Other3,114 3,564 
Total other commercial8,608 9,013 
Total commercial41,704 41,051 
Consumer loans:
Residential mortgages21,846 21,035 
Home equity mortgages399 393 
Credit cards177 195 
Other consumer(2)
73 79 
Total consumer22,495 21,702 
Total loans$64,199 $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 $11 million at June 30, 2025 and December 31, 2024, respectively. See Note 9, "Fair Value Option," for further details.
Summary of Past Due Status of Loans
 Past DueTotal Past Due 30 Days or More  
30 - 89 Days90+ Days
Current(1)
Total Loans
 (in millions)
At June 30, 2025
Commercial loans:
Real estate, including construction$— $18 $18 $6,328 $6,346 
Business and corporate banking
74 71 145 26,605 26,750 
Other commercial88 — 88 8,520 8,608 
Total commercial162 89 251 41,453 41,704 
Consumer loans:
Residential mortgages197 111 308 21,538 21,846 
Home equity mortgages3 5 8 391 399 
Credit cards2 2 4 173 177 
Other consumer2 1 3 70 73 
Total consumer204 119 323 22,172 22,495 
Total loans$366 $208 $574 $63,625 $64,199 
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 June 30, 2025
Commercial loans:
Real estate, including construction$351 $— $1 
Business and corporate banking385 45 30 
Total commercial736 45 31 
Consumer loans:
Residential mortgages(1)(2)(3)
202 — 76 
Home equity mortgages(1)(2)
10 — 6 
Credit cards— 2 — 
Other consumer— 1 — 
Total consumer212 3 82 
Total nonperforming loans$948 $48 $113 
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 June 30, 2025 and December 31, 2024, nonaccrual consumer mortgage loans include $103 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 and six months ended June 30, 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 June 30, 2025
Commercial loans:
Business and corporate banking$23 $— $103 $3 $129 .5 %
Total commercial23 — 103 3 129 .3 
Consumer loans:
Residential mortgages(2)
— — 36 2 38 .2 
Total consumer— — 36 2 38 .2 
Total$23 $— $139 $5 $167 .3 
Interest Rate ReductionPrincipal ForgivenessTerm Extension / Significant Payment Deferral
Combination(1)
Total% of Total Loans
(dollars are in millions)
Three Months Ended June 30, 2024
Commercial loans:
Real estate, including construction$— $— $— $161 $161 2.4 %
Business and corporate banking— — 54 7 61 .2 
Total commercial— — 54 168 222 .5 
Consumer loans:
Residential mortgages(2)
— — — 1 1 .0 
Total consumer— — — 1 1 .0 
Total$— $— $54 $169 $223 .4 
Six Months Ended June 30, 2025
Commercial loans:
Business and corporate banking$23 $— $113 $3 $139 .5 %
Total commercial23 — 113 3 139 .3 
Consumer loans:
Residential mortgages(2)
— — 36 2 38 .2 
Total consumer— — 36 2 38 .2 
Total$23 $— $149 $5 $177 .3 
Six Months Ended June 30, 2024
Commercial loans:
Real estate, including construction$— $— $— $161 $161 2.4 %
Business and corporate banking— — 113 7 120 .4 
Total commercial— — 113 168 281 .7 
Consumer loans:
Residential mortgages(2)
— — — 1 1 .0 
Total consumer— — — 1 1 .0 
Total$— $— $113 $169 $282 .5 
(1)Represents loans with more than one type of payment modification during the period.
(2)During the three and six months ended June 30, 2025, the carrying value of consumer mortgage loans with a payment modification primarily includes loans where the borrowers were provided with payment deferrals as a result of the recent California wildfires. During the three and six months ended June 30, 2024, the carrying value of consumer mortgage loans with a payment modification includes loans that were recorded at the lower of amortized cost or fair value of the collateral less cost to sell.
The following table summarizes the financial effect of loan payment modifications made to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 and 2024 by type of modification:
Weighted-Average Interest Rate ReductionPrincipal Forgiven
(in millions)		Weighted-Average Term Extension / Payment Deferral
(in years)
Three Months Ended June 30, 2025
Commercial loans:
Business and corporate banking.2 %$— 1.0
Consumer loans:
Residential mortgages1.0 — 0.7
Three Months Ended June 30, 2024
Commercial loans:
Real estate, including construction5.6 %$— 4.0
Business and corporate banking.3 — 1.7
Consumer loans:
Residential mortgages.5 — 0.6
Six Months Ended June 30, 2025
Commercial loans:
Business and corporate banking.2 %$— 1.0
Consumer loans:
Residential mortgages1.0 — 0.7
Six Months Ended June 30, 2024
Commercial loans:
Real estate, including construction5.6 %$— 4.0
Business and corporate banking.3 — 1.7
Consumer loans:
Residential mortgages.5 — 0.6
The following table presents loans to borrowers experiencing financial difficulty with a payment modification during the previous 12 months which subsequently became 90 days or greater contractually delinquent during the three and six months ended June 30, 2025 and 2024 by type of modification:
Interest Rate ReductionPrincipal ForgivenessTerm Extension / Significant Payment Deferral
Combination(1)
Total
(in millions)
Six Months Ended June 30, 2025
Consumer loans:
Residential mortgages$— $— $1 $— $1 
Total consumer$— $— $1 $— $1 
Six Months Ended June 30, 2024
Commercial loans:
Business and corporate banking$— $— $1 $— $1 
Total commercial$— $— $1 $— $1 
(1)Represents loans with more than one type of payment modification during the period.
Summary of Past Due Status of Loans with Payment Modification
The following table presents the past due status of loans to borrowers experiencing financial difficulty with a payment modification during the previous 12 months at June 30, 2025 and December 31, 2024:
 Past Due  
30 - 89 Days90+ Days
Current(1)
Total
 (in millions)
At June 30, 2025
Commercial loans:
Real estate, including construction$— $— $235 $235 
Business and corporate banking— 27 263 290 
Total commercial— 27 498 525 
Consumer loans:
Residential mortgages3 — 39 42 
Total consumer3 — 39 42 
Total$3 $27 $537 $567 
At December 31, 2024
Commercial loans:
Real estate, including construction$— $— $232 $232 
Business and corporate banking— 29 177 206 
Total commercial— 29 409 438 
Consumer loans:
Residential mortgages
1 — 4 5 
Total consumer1 — 4 5 
Total$1 $29 $413 $443 
(1)Loans less than 30 days past due are presented as current.
Commercial loans  
Accounts, Notes, Loans and Financing Receivable [Line Items]  
Summary of Criticized Commercial Loans
The following table summarizes our criticized commercial loans, including a disaggregation of the loans by year of origination as of June 30, 2025 and December 31, 2024:
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Jun. 30, 2025
 (in millions)
Real estate, including construction:
Special mention$— $— $— $42 $— $113 $— $2 $157 
Substandard1 — — 54 — 308 3 — 366 
Doubtful— — — — 31 300 18 — 349 
Total real estate, including construction1 — — 96 31 721 21 2 872 
Business and corporate banking:
Special mention135 144 120 128 45 232 179 10 993 
Substandard112 301 79 44 27 238 319 13 1,133 
Doubtful— 1 37 27 — 202 58 — 325 
Total business and corporate banking247 446 236 199 72 672 556 23 2,451 
Other commercial:
Special mention— — — — — 3 — — 3 
Total other commercial— — — — — 3 — — 3 
Total commercial$248 $446 $236 $295 $103 $1,396 $577 $25 $3,326 
Total commercial:
Special mention$135 $144 $120 $170 $45 $348 $179 $12 $1,153 
Substandard113 301 79 98 27 546 322 13 1,499 
Doubtful— 1 37 27 31 502 76 — 674 
Total commercial$248 $446 $236 $295 $103 $1,396 $577 $25 $3,326 
20242023202220212020PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Dec. 31, 2024
 (in millions)
Real estate, including construction:
Special mention$— $— $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 June 30, 2025 and December 31, 2024:
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Jun. 30, 2025
 (in millions)
Real estate, including construction:
Performing loans$309 $1,623 $567 $958 $612 $1,911 $13 $2 $5,995 
Nonaccrual loans— — — — 31 302 18 — 351 
Total real estate, including construction309 1,623 567 958 643 2,213 31 2 6,346 
Business and corporate banking:
Performing loans1,356 2,277 2,360 2,169 2,113 7,236 8,499 310 26,320 
Nonaccrual loans— 6 37 27 — 257 58 — 385 
Accruing loans contractually past due 90 days or more— — — — — 45 — — 45 
Total business and corporate banking1,356 2,283 2,397 2,196 2,113 7,538 8,557 310 26,750 
Other commercial:
Performing loans109 452 109 275 76 1,564 6,023 — 8,608 
Total other commercial109 452 109 275 76 1,564 6,023 — 8,608 
Total commercial$1,774 $4,358 $3,073 $3,429 $2,832 $11,315 $14,611 $312 $41,704 
Total commercial:
Performing loans$1,774 $4,352 $3,036 $3,402 $2,801 $10,711 $14,535 $312 $40,923 
Nonaccrual loans— 6 37 27 31 559 76 — 736 
Accruing loans contractually past due 90 days or more— — — — — 45 — — 45 
Total commercial$1,774 $4,358 $3,073 $3,429 $2,832 $11,315 $14,611 $312 $41,704 
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 $41,051 
Summary of Credit Quality Indicators The following table summarizes the credit risk profile of our commercial loan portfolio, including a disaggregation of the loans by year of origination as of June 30, 2025 and December 31, 2024:
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal at Jun. 30, 2025
 (in millions)
Real estate, including construction:
Investment grade$— $317 $230 $10 $260 $492 $— $— $1,309 
Non-investment grade309 1,306 337 948 383 1,721 31 2 5,037 
Total real estate, including construction309 1,623 567 958 643 2,213 31 2 6,346 
Business and corporate banking:
Investment grade882 1,330 1,368 1,220 1,333 4,468 5,143 97 15,841 
Non-investment grade474 953 1,029 976 780 3,070 3,414 213 10,909 
Total business and corporate banking1,356 2,283 2,397 2,196 2,113 7,538 8,557 310 26,750 
Other commercial:
Investment grade22 327 59 137 71 1,108 5,618 — 7,342 
Non-investment grade87 125 50 138 5 456 405 — 1,266 
Total other commercial109 452 109 275 76 1,564 6,023 — 8,608 
Total commercial$1,774 $4,358 $3,073 $3,429 $2,832 $11,315 $14,611 $312 $41,704 
Total commercial:
Investment grade$904 $1,974 $1,657 $1,367 $1,664 $6,068 $10,761 $97 $24,492 
Non-investment grade870 2,384 1,416 2,062 1,168 5,247 3,850 215 17,212 
Total commercial$1,774 $4,358 $3,073 $3,429 $2,832 $11,315 $14,611 $312 $41,704 
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 $41,051 
The following table summarizes gross charge-off dollars in our commercial loan portfolio, disaggregated by year of origination, during the six months ended June 30, 2025 and 2024:
20252024202320222021PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal
 (in millions)
Six Months Ended June 30, 2025
Real estate, including construction$— $— $— $— $— $27 $— $— $27 
Business and corporate banking— — 7 — — — 33 — 40 
Total commercial$— $— $7 $— $— $27 $33 $— $67 
20242023202220212020PriorRevolving
Loans		Revolving Loans Converted to Term LoansTotal
(in millions)
Six Months Ended June 30, 2024
Business and corporate banking$— $— $— $28 $— $23 $1 $— $52 
Total commercial$— $— $— $28 $— $23 $1 $— $52 
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 June 30, 2025 and December 31, 2024:
20252024202320222021PriorRevolving
Loans		Total at Jun. 30, 2025
 (in millions)
Residential mortgages:
Performing loans$1,912 $3,898 $2,163 $2,534 $3,818 $7,319 $— $21,644 
Nonaccrual loans
— 8 17 12 10 155 — 202 
Total residential mortgages1,912 3,906 2,180 2,546 3,828 7,474 — 21,846 
Home equity mortgages:
Performing loans28 47 72 65 8 169 — 389 
Nonaccrual loans
— — 2 1 1 6 — 10 
Total home equity mortgages28 47 74 66 9 175 — 399 
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— 1 — 1 7 56 7 72 
Accruing loans contractually past due 90 days or more
— — — — — 1 — 1 
Total other consumer— 1 — 1 7 57 7 73 
Total consumer$1,940 $3,954 $2,254 $2,613 $3,844 $7,706 $184 $22,495 
Total consumer:
Performing loans$1,940 $3,946 $2,235 $2,600 $3,833 $7,544 $182 $22,280 
Nonaccrual loans— 8 19 13 11 161 — 212 
Accruing loans contractually past due 90 days or more
— — — — — 1 2 3 
Total consumer$1,940 $3,954 $2,254 $2,613 $3,844 $7,706 $184 $22,495 
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 June 30, 2025 and December 31, 2024:
20252024202320222021PriorRevolving
Loans		Total at Jun. 30, 2025
 (in millions)
Residential mortgages(1)(2)
$— $2 $2 $12 $6 $122 $— $144 
Home equity mortgages(1)(2)
— — 1 — — 5 — 6 
Credit cards— — — — — — 3 3 
Other consumer— — — — 1 — 1 
Total consumer$— $2 $3 $12 $6 $128 $3 $154 
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 June 30, 2025 and December 31, 2024, consumer mortgage loan delinquency includes $69 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 June 30, 2025 and December 31, 2024, consumer mortgage loans include $37 million and $32 million, respectively, of loans that were in the process of foreclosure.
The following table summarizes gross charge-off dollars in our consumer loan portfolio, disaggregated by year of origination, during the six months ended June 30, 2025 and 2024:
20252024202320222021PriorRevolving
Loans		Total
 (in millions)
Six Months Ended June 30, 2025
Credit cards$— $— $— $— $— $— $4 $4 
Total consumer$— $— $— $— $— $— $4 $4 
20242023202220212020PriorRevolving
Loans		Total
(in millions)
Six Months Ended June 30, 2024
Credit cards$— $— $— $— $— $— $4 $4 
Total consumer$— $— $— $— $— $— $4 $4