v3.25.2
Loans and allowance for loan losses
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Loans and allowance for loan losses


4. Loans and allowance for loan losses
A summary of current, past due and nonaccrual loans as of June 30, 2025 and December 31, 2024 follows:
(Dollars in millions)Current30-89 Days
Past Due		Accruing Loans Past Due 90 Days or MoreNonaccrualTotal (a) (b)
June 30, 2025
Commercial and industrial$60,632 $219 $22 $787 $61,660 
Real estate:   
Commercial (c)19,447 321 11 376 20,155 
Residential builder and developer (d)150 — — 1 151 
Other commercial construction4,199 35 4 23 4,261 
Residential (e)22,796 606 450 265 24,117 
Consumer:   
Home equity lines and loans4,530 29 — 75 4,634 
Recreational finance13,555 86 — 25 13,666 
Automobile5,199 52 — 9 5,260 
Other2,171 20 9 12 2,212 
Total$132,679 $1,368 $496 $1,573 $136,116 
December 31, 2024
Commercial and industrial$60,374 $399 $12 $696 $61,481 
Real estate:   
Commercial (c)20,054 255 3 468 20,780 
Residential builder and developer830 3 — 2 835 
Other commercial construction5,018 65 — 66 5,149 
Residential (e)21,853 719 315 279 23,166 
Consumer:   
Home equity lines and loans4,482 29 — 81 4,592 
Recreational finance12,429 104 — 31 12,564 
Automobile4,724 58 — 12 4,794 
Other2,134 23 8 55 2,220 
Total$131,898 $1,655 $338 $1,690 $135,581 
__________________________________________________________________________________
(a)Balances include net discounts, comprised of unamortized premiums, discounts and net deferred loan fees and costs of $301 million and $277 million at June 30, 2025 and December 31, 2024, respectively.
(b)Balances exclude accrued interest receivable of $617 million and $628 million at June 30, 2025 and December 31, 2024, respectively, which is included in Accrued interest and other assets in the Company's Consolidated Balance Sheet.
(c)Commercial real estate loans held for sale were $361 million at June 30, 2025 and $310 million at December 31, 2024.
(d)In June 2025, the Company sold $661 million of residential builder and developer loans and recognized a gain on sale of $15 million, which is included in Other revenues from operations in the Consolidated Statement of Income. Residential builder and developer loans held for sale were $24 million at June 30, 2025.
(e)One-to-four family residential mortgage loans held for sale were $222 million at June 30, 2025 and $211 million at December 31, 2024.
The amount of foreclosed property held by the Company, predominantly consisting of residential real estate, was $30 million and $35 million at June 30, 2025 and December 31, 2024, respectively. There were $194 million and $173 million at June 30, 2025 and December 31, 2024, respectively, of loans secured by residential real estate that were in the process of foreclosure. At June 30, 2025, approximately 46% of those residential real estate loans in the process of foreclosure were government guaranteed.
At June 30, 2025, approximately $20.9 billion of commercial and industrial loans, $13.6 billion of commercial real estate loans, $19.0 billion of one-to-four family residential real estate loans, $2.8 billion of home equity loans and lines of credit and $13.2 billion of other consumer loans were pledged to secure outstanding borrowings and available lines of credit from the FHLB and the FRB of New York. At December 31, 2024, approximately $20.7 billion of commercial and industrial loans, $14.6 billion of commercial real estate loans, $18.6 billion of one-to-four family residential real estate loans, $2.7 billion of home equity loans and lines of credit and $13.1 billion of other consumer loans were pledged to secure outstanding borrowings and available lines of credit from the FHLB and the FRB of New York. As further described in notes 5 and 12, loans totaling $2.5 billion and $1.5 billion at June 30, 2025 and December 31, 2024, respectively, were held in special purpose trusts to settle the obligations of certain asset-backed notes issued by those trusts which have been included in the Company's consolidated financial statements.
Credit quality indicators
The Company utilizes a loan grading system to differentiate risk amongst its commercial and industrial loans and commercial real estate loans. The following table summarizes the loan grades applied at June 30, 2025 to the various classes of the Company’s commercial and industrial loans and commercial real estate loans and gross charge-offs for those types of loans for the three-month and six-month periods ended June 30, 2025 by origination year.
 Term Loans by Origination YearRevolving
Loans		Revolving Loans Converted to Term
Loans		Total
(Dollars in millions)20252024202320222021Prior
Commercial and industrial:
Pass$4,712 $7,842 $5,186 $5,022 $2,719 $5,746 $26,527 $100 $57,854 
Criticized accrual56 239 473 391 170 485 1,169 36 3,019 
Criticized nonaccrual1 26 84 88 38 254 279 17 787 
Total commercial and industrial$4,769 $8,107 $5,743 $5,501 $2,927 $6,485 $27,975 $153 $61,660 
Gross charge-offs three months ended June 30, 2025$4 $5 $11 $4 $2 $4 $27 $— $57 
Gross charge-offs six months ended June 30, 2025$4 $8 $19 $13 $4 $9 $50 $— $107 
Real estate:
Commercial:
Pass$1,382 $383 $1,543 $1,510 $1,234 $10,332 $460 $— $16,844 
Criticized accrual— 37 385 433 221 1,853 6 — 2,935 
Criticized nonaccrual— — 1 49 20 306 — — 376 
Total commercial real estate$1,382 $420 $1,929 $1,992 $1,475 $12,491 $466 $— $20,155 
Gross charge-offs three months ended June 30, 2025$— $— $— $4 $— $18 $— $— $22 
Gross charge-offs six months ended June 30, 2025$— $— $— $4 $— $40 $— $— $44 
Residential builder and developer:
Pass$26 $— $6 $26 $2 $9 $68 $— $137 
Criticized accrual— — — 13 — — — — 13 
Criticized nonaccrual— — — — — 1 — — 1 
Total residential builder and developer$26 $— $6 $39 $2 $10 $68 $— $151 
Gross charge-offs three months ended June 30, 2025$— $— $— $— $— $— $— $— $— 
Gross charge-offs six months ended June 30, 2025$— $— $— $— $— $— $— $— $— 
Other commercial construction:
Pass$43 $186 $1,379 $845 $149 $380 $50 $— $3,032 
Criticized accrual— 3 108 637 144 308 6 — 1,206 
Criticized nonaccrual— — — 11 2 10 — — 23 
Total other commercial construction$43 $189 $1,487 $1,493 $295 $698 $56 $— $4,261 
Gross charge-offs three months ended June 30, 2025$— $— $— $3 $— $— $— $— $3 
Gross charge-offs six months ended June 30, 2025$— $— $— $3 $— $— $— $— $3 
The Company considers repayment performance a significant indicator of credit quality for its residential real estate loan and consumer loan portfolios. A summary of loans in accrual and nonaccrual status at June 30, 2025 for the various classes of the Company’s residential real estate loans and consumer loans and gross charge-offs for those types of loans for the three-month and six-month periods ended June 30, 2025 by origination year follows:
 Term Loans by Origination YearRevolving
Loans		Revolving Loans Converted to Term
Loans		 Total
(Dollars in millions)20252024202320222021Prior
Residential real estate:
Current$1,802 $1,976 $1,273 $4,333 $3,610 $9,681 $121 $— $22,796 
30-89 days past due4 9 13 100 70 410 — — 606 
Accruing loans past due 90 days or more— 3 10 63 107 267 — — 450 
Nonaccrual— 4 6 38 17 199 1 — 265 
Total residential real estate$1,806 $1,992 $1,302 $4,534 $3,804 $10,557 $122 $— $24,117 
Gross charge-offs three months ended June 30, 2025$— $— $— $1 $— $— $— $— $1 
Gross charge-offs six months ended June 30, 2025$— $— $— $1 $— $2 $— $— $3 
Consumer:  
Home equity lines and loans:  
Current$— $— $— $— $1 $84 $3,155 $1,290 $4,530 
30-89 days past due— — — — — 1 — 28 29 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual— — — — — 2 1 72 75 
Total home equity lines and loans$— $— $— $— $1 $87 $3,156 $1,390 $4,634 
Gross charge-offs three months ended June 30, 2025$— $— $— $— $— $— $— $1 $1 
Gross charge-offs six months ended June 30, 2025$— $— $— $— $— $— $— $2 $2 
Recreational finance:  
Current$2,459 $3,462 $1,953 $1,855 $1,494 $2,332 $— $— $13,555 
30-89 days past due2 16 15 15 13 25 — — 86 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual1 4 5 4 4 7 — — 25 
Total recreational finance$2,462 $3,482 $1,973 $1,874 $1,511 $2,364 $— $— $13,666 
Gross charge-offs three months ended June 30, 2025$1 $6 $6 $6 $5 $9 $— $— $33 
Gross charge-offs six months ended June 30, 2025$1 $11 $14 $13 $12 $22 $— $— $73 
Automobile: 
Current$1,116 $2,056 $709 $628 $493 $197 $— $— $5,199 
30-89 days past due3 13 12 11 8 5 — — 52 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual1 2 2 2 1 1 — — 9 
Total automobile$1,120 $2,071 $723 $641 $502 $203 $— $— $5,260 
Gross charge-offs three months ended June 30, 2025$— $4 $2 $3 $1 $1 $— $— $11 
Gross charge-offs six months ended June 30, 2025$— $7 $5 $6 $3 $2 $— $— $23 
Other:  
Current$204 $199 $119 $75 $56 $27 $1,490 $1 $2,171 
30-89 days past due2 2 2 1 — — 12 1 20 
Accruing loans past due 90 days or more— — — — — — 9 — 9 
Nonaccrual2 1 1 — — — 8 — 12 
Total other$208 $202 $122 $76 $56 $27 $1,519 $2 $2,212 
Gross charge-offs three months ended June 30, 2025$6 $2 $2 $1 $— $— $17 $— $28 
Gross charge-offs six months ended June 30, 2025$7 $8 $5 $2 $1 $1 $37 $— $61 
Total loans at June 30, 2025$11,816 $16,463 $13,285 $16,150 $10,573 $32,922 $33,362 $1,545 $136,116 
Total gross charge-offs for the three months ended
   June 30, 2025
$11 $17 $21 $22 $8 $32 $44 $1 $156 
Total gross charge-offs for the six months ended
   June 30, 2025
$12 $34 $43 $42 $20 $76 $87 $2 $316 
The following table summarizes the loan grades applied at December 31, 2024 to the various classes of the Company’s commercial and industrial loans and commercial real estate loans by origination year.
Term Loans by Origination YearRevolving
Loans		Revolving Loans Converted to Term
Loans		 
(Dollars in millions)20242023202220212020PriorTotal
Commercial and industrial: 
 Pass$9,021 $6,454 $5,845 $3,258 $1,534 $5,147 $26,262 $79 $57,600 
 Criticized accrual189 385 402 210 75 528 1,359 37 3,185 
 Criticized nonaccrual11 56 98 41 59 220 194 17 696 
Total commercial and industrial$9,221 $6,895 $6,345 $3,509 $1,668 $5,895 $27,815 $133 $61,481 
Real estate: 
Commercial: 
 Pass$674 $1,477 $1,358 $1,222 $1,774 $9,611 $413 $— $16,529 
 Criticized accrual39 389 665 253 591 1,839 7 — 3,783 
 Criticized nonaccrual1 1 53 26 17 369 1 — 468 
Total commercial real estate$714 $1,867 $2,076 $1,501 $2,382 $11,819 $421 $— $20,780 
Residential builder and developer: 
 Pass$380 $236 $40 $12 $4 $10 $60 $— $742 
 Criticized accrual15 42 34 — — — — — 91 
 Criticized nonaccrual1 — — — — 1 — — 2 
Total residential builder and developer$396 $278 $74 $12 $4 $11 $60 $— $835 
Other commercial construction: 
 Pass$108 $1,395 $1,091 $269 $175 $379 $42 $— $3,459 
 Criticized accrual42 104 687 346 297 145 3 — 1,624 
 Criticized nonaccrual— — 17 33 — 16 — — 66 
Total other commercial construction$150 $1,499 $1,795 $648 $472 $540 $45 $— $5,149 
A summary of loans in accrual and nonaccrual status at December 31, 2024 for the various classes of the Company’s residential real estate loans and consumer loans by origination year follows:
Term Loans by Origination YearRevolving
Loans		Revolving Loans Converted to Term
Loans		Total
(Dollars in millions)20242023202220212020Prior
Residential real estate:
Current$2,264 $1,354 $4,394 $3,488 $2,376 $7,874 $103 $— $21,853 
30-89 days past due12 9 111 77 38 472 — — 719 
Accruing loans past due 90 days or more1 7 39 47 20 201 — — 315 
Nonaccrual— 2 27 16 5 226 3 — 279 
Total residential real estate$2,277 $1,372 $4,571 $3,628 $2,439 $8,773 $106 $— $23,166 
Consumer:
Home equity lines and loans:
Current$— $— $— $2 $2 $91 $3,085 $1,302 $4,482 
30-89 days past due— — — — — 2 — 27 29 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual— — — — — 2 — 79 81 
Total home equity lines and loans$— $— $— $2 $2 $95 $3,085 $1,408 $4,592 
Recreational finance:
Current$3,918 $2,203 $2,044 $1,661 $1,100 $1,503 $— $— $12,429 
30-89 days past due13 18 15 20 15 23 — — 104 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual3 6 6 5 4 7 — — 31 
Total recreational finance$3,934 $2,227 $2,065 $1,686 $1,119 $1,533 $— $— $12,564 
Automobile:
Current$2,264 $775 $740 $632 $220 $93 $— $— $4,724 
30-89 days past due11 13 13 12 5 4 — — 58 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual2 2 3 2 1 2 — — 12 
Total automobile$2,277 $790 $756 $646 $226 $99 $— $— $4,794 
Other:
Current$259 $152 $102 $71 $16 $18 $1,515 $1 $2,134 
30-89 days past due4 2 1 1 — — 14 1 23 
Accruing loans past due 90 days or more— — — — — — 8 — 8 
Nonaccrual2 1 1 — — — 51 — 55 
Total other$265 $155 $104 $72 $16 $18 $1,588 $2 $2,220 
Total loans at December 31, 2024$19,234 $15,083 $17,786 $11,704 $8,328 $28,783 $33,120 $1,543 $135,581 
Allowance for loan losses
For purposes of determining the level of the allowance for loan losses, the Company evaluates its portfolio by loan type. Changes in the allowance for loan losses and the reserve for unfunded credit commitments for the three-month and six-month periods ended June 30, 2025 and 2024 were as follows:
Allowance for Loan Losses
Commercial
and Industrial		Real Estate   Reserve for Unfunded Credit Commitments (a)
(Dollars in millions)Commercial Residential Consumer Total
Three Months Ended June 30, 2025
Beginning balance$762 $610 $105 $723 $2,200 $60 
Provision for credit losses69 (43)5 74 105 20 
Net charge-offs:
Charge-offs(57)(25)(1)(73)(156)— 
Recoveries19 2 1 26 48 — 
Net charge-offs(38)(23)— (47)(108)— 
Ending balance$793 $544 $110 $750 $2,197 $80 
Three Months Ended June 30, 2024
Beginning balance$684 $754 $118 $635 $2,191 $60 
Provision for credit losses176 (70)(8)52 150 — 
Net charge-offs:
Charge-offs(78)(43)(2)(57)(180)— 
Recoveries8 17 2 16 43 — 
Net charge-offs(70)(26)— (41)(137)— 
Ending balance$790 $658 $110 $646 $2,204 $60 
Six Months Ended June 30, 2025
Beginning balance$769 $599 $108 $708 $2,184 $60 
Provision for credit losses91 (13)2 155 235 20 
Net charge-offs:
Charge-offs(107)(47)(3)(159)(316)— 
Recoveries40 5 3 46 94 — 
Net charge-offs(67)(42)— (113)(222)— 
Ending balance$793 $544 $110 $750 $2,197 $80 
Six Months Ended June 30, 2024
Beginning balance$620 $764 $116 $629 $2,129 $60 
Provision for credit losses313 (61)(6)104 350 — 
Net charge-offs:
Charge-offs(156)(68)(3)(116)(343)— 
Recoveries13 23 3 29 68 — 
Net charge-offs (143)(45)— (87)(275)— 
Ending balance$790 $658 $110 $646 $2,204 $60 
__________________________________________________________________________________
(a)Further information about unfunded credit commitments is included in note 14.
Despite the allocation in the preceding tables, the allowance for loan losses is general in nature and is available to absorb losses from any loan or lease type. In determining the allowance for loan losses, accruing loans with similar risk characteristics are generally evaluated collectively. The Company utilizes statistically developed models to project principal balances over the remaining contractual lives of the loan portfolios and to determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators, including loan grade and borrower repayment performance, can inform the models, which have been statistically developed based on historical correlations of credit losses with prevailing economic metrics, including unemployment, GDP and real estate prices. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results. At each of June 30, 2025 and December 31, 2024, the Company utilized a reasonable and supportable forecast period of two years. Subsequent to this forecast period the Company reverted, ratably over a one-year period, to historical loss experience to inform its estimate of losses for the remaining contractual life of each portfolio. In determining the allowance for loan losses, the Company may adjust forecasted loss estimates for inherent limitations or biases in the models as well as for other factors that may not be adequately considered in its quantitative methodologies including the impact of portfolio concentrations, imprecision in its economic forecasts, geopolitical conditions and other risk factors that might influence its loss estimation process.
The Company also estimates losses attributable to specific troubled credits identified through both normal and targeted credit review processes. The amounts of specific loss components in the Company’s loan portfolios are determined through a loan-by-loan analysis of larger balance commercial and industrial loans and commercial real estate loans that are in nonaccrual status. Such loss estimates are typically based on expected future cash flows, collateral values and other factors that may impact the borrower’s ability to pay. To the extent that those loans are collateral-dependent, they are evaluated based on the fair value of the loan’s collateral as estimated at or near the financial statement date. As the quality of a loan deteriorates to the point of designating the loan as “criticized nonaccrual,” the process of obtaining updated collateral valuation information is usually initiated, unless it is not considered warranted given factors such as the relative size of the loan, the characteristics of the collateral or the age of the last valuation. In those cases where current appraisals may not yet be available, prior appraisals are utilized with adjustments, as deemed necessary, for estimates of subsequent declines in values as determined by line of business and/or loan workout personnel. Those adjustments are reviewed and assessed for reasonableness by the Company’s credit risk personnel. Accordingly, for real estate collateral securing larger nonaccrual commercial and industrial loans and commercial real estate loans, estimated collateral values are generally based on current appraisals and estimates of value. For non-real estate loans, collateral is assigned a discounted estimated liquidation value and, depending on the nature of the collateral, is verified through field exams or other procedures. In assessing collateral, real estate and non-real estate values are reduced by an estimate of selling costs.
For residential real estate loans, including home equity loans and lines of credit, the excess of the loan balance over the net realizable value of the property collateralizing the loan is charged-off when the loan becomes 150 days delinquent. That charge-off is based on recent indications of value from external parties that are generally obtained shortly after a loan becomes nonaccrual. Loans to consumers that file for bankruptcy are generally charged-off to estimated net collateral value shortly after the Company is notified of such filings. When evaluating individual home equity loans and lines of credit for charge-off and for purposes of estimating losses in determining the allowance for loan losses, the Company gives consideration to the required repayment of any first lien positions related to collateral property. Other consumer loans are generally charged-off when the loans are 91 to 180 days past due, depending on whether the loan is collateralized and the status of repossession activities with respect to such collateral.
Changes in the amount of the allowance for loan losses reflect the outcome of the procedures described herein, including the impact of changes in macroeconomic forecasts as compared with previous forecasts, as well as the impact of portfolio concentrations, imprecision in economic forecasts, geopolitical conditions and other risk factors that might influence the loss estimation process.
Information with respect to loans that were considered nonaccrual at the beginning and end of the reporting period and the interest income recognized on such loans for the three-month and six-month periods ended June 30, 2025 and 2024 follows:
 Amortized Cost with AllowanceAmortized Cost without AllowanceTotalAmortized CostInterest Income Recognized
(Dollars in millions)June 30, 2025March 31, 2025January 1, 2025Three Months
Ended
June 30,
2025		Six Months
Ended
June 30,
2025
Commercial and industrial$663 $124 $787 $662 $696 $6 $12 
Real estate:       
Commercial289 87 376 394 468 10 17 
Residential builder and developer1 — 1 1 2 — — 
Other commercial construction23 — 23 28 66 — — 
Residential115 150 265 284 279 4 7 
Consumer:       
Home equity lines and loans34 41 75 78 81 2 4 
Recreational finance15 10 25 26 31 — — 
Automobile7 2 9 11 12 — — 
Other5 7 12 56 55 — — 
Total$1,152 $421 $1,573 $1,540 $1,690 $22 $40 
June 30, 2024March 31, 2024January 1, 2024Three Months
Ended
June 30,
2024		Six Months
Ended
June 30,
2024
Commercial and industrial$494 $311 $805 $864 $670 $7 $9 
Real estate:
Commercial315 392 707 855 869 20 26 
Residential builder and developer2 — 2 3 3 — — 
Other commercial construction13 64 77 141 171 3 3 
Residential115 145 260 255 270 3 7 
Consumer:
Home equity lines and loans37 42 79 87 81 1 2 
Recreational finance15 10 25 30 36 — — 
Automobile7 4 11 13 14 — — 
Other58 — 58 54 52 — — 
Total$1,056 $968 $2,024 $2,302 $2,166 $34 $47 
Loan modifications
During the normal course of business, the Company modifies loans to maximize recovery efforts from borrowers experiencing financial difficulty. Such loan modifications typically include extensions of maturity dates but may also include other modified terms. Those modified loans may be considered nonaccrual if the Company does not expect to collect the contractual cash flows owed under the loan agreement. The table that follows summarizes the Company’s loan modification activities to borrowers experiencing financial difficulty for the three-month and six-month periods ended June 30, 2025 and 2024:
Amortized Cost
(Dollars in millions)Term ExtensionOther (a)Combination of Modification Types (b)Total (c) (d)Percent of Total Loan Class
Three Months Ended June 30, 2025
Commercial and industrial$68 $16 $3 $87 .14 %
Real estate:
Commercial266 53 — 319 1.58 
Residential builder and developer— — — — — 
Other commercial construction12 — — 12 .27 
Residential37 1 6 44 .18 
Consumer:
Home equity lines and loans— — — — — 
Recreational finance— — — — — 
Automobile— — — — — 
Other10 — — 10 .44 
Total$393 $70 $9 $472 .35 %
Six Months Ended June 30, 2025
Commercial and industrial$130 $17 $76 $223 .36 %
Real estate:
Commercial399 53 — 452 2.24 
Residential builder and developer— — — — — 
Other commercial construction214 — — 214 5.03 
Residential71 4 12 87 .36 
Consumer:
Home equity lines and loans— — — — — 
Recreational finance— — — — — 
Automobile— — — — — 
Other10 — — 10 .44 
Total$824 $74 $88 $986 .73 %
__________________________________________________________________________________
(a)Predominantly payment deferrals.
(b)Predominantly term extensions combined with payment deferrals or interest rate reductions.
(c)Includes approximately $36 million and $70 million of loans guaranteed by government-related entities (predominantly first lien residential mortgage loans) for the three-month and six-month periods ended June 30, 2025, respectively.
(d)Excludes unfunded commitments to extend credit totaling $10 million and $18 million for the three-month and six-month periods ended June 30, 2025, respectively.
Amortized Cost
(Dollars in millions)Term ExtensionOther (a)Combination of Modification Types (b)Total (c) (d)Percent of Total Loan Class
Three Months Ended June 30, 2024
Commercial and industrial$51 $13 $— $64 .11 %
Real estate:
Commercial168 — — 168 .74 
Residential builder and developer26 — — 26 2.49 
Other commercial construction125 — — 125 2.18 
Residential53 4 1 58 .25 
Consumer:
Home equity lines and loans— — — — — 
Recreational finance— — — — — 
Automobile— — — — — 
Other— — — — — 
Total$423 $17 $1 $441 .33 %
Six Months Ended June 30, 2024
Commercial and industrial$152 $57 $— $209 .35 %
Real estate:
Commercial373 — 4 377 1.66 
Residential builder and developer27 — — 27 2.62 
Other commercial construction197 — — 197 3.44 
Residential95 8 2 105 .46 
Consumer:
Home equity lines and loans— — 1 1 .03 
Recreational finance— — — — — 
Automobile— — — — — 
Other— — — — — 
Total$844 $65 $7 $916 .68 %
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(a)Predominantly payment deferrals or interest rate reductions.
(b)Predominantly term extensions combined with interest rate reductions.
(c)Includes approximately $47 million and $88 million of loans guaranteed by government-related entities (predominantly first lien residential mortgage loans) for the three-month and six-month periods ended June 30, 2024, respectively.
(d)Excludes unfunded commitments to extend credit totaling $1 million and $27 million for the three-month and six-month periods ended June 30, 2024, respectively.
The financial effects of the modifications for the three-month and six-month periods ended June 30, 2025 include an increase in the weighted-average remaining term for commercial and industrial loans of 0.6 years and 0.8 years, respectively, for commercial real estate loans, inclusive of residential builder and development loans and other commercial construction loans, of 0.8 years for each period, and for residential real estate loans of 9.2 years and 9.7 years, respectively.
The financial effects of the modifications for the three-month and six-month periods ended June 30, 2024 include an increase in the weighted-average remaining term for commercial and industrial loans of 0.7 years and 0.8 years, respectively, for commercial real estate loans, inclusive of residential builder and development loans and other commercial construction loans, of 0.6 years and 0.8 years, respectively, and for residential real estate loans, of 8.9 years and 10.2 years, respectively.
Modified loans to borrowers experiencing financial difficulty are subject to the allowance for loan losses methodology described herein, including the use of models to inform credit loss estimates and, to the extent larger balance commercial and industrial loans and commercial real estate loans are in nonaccrual status, a loan-by-loan analysis of expected credit losses on those individual loans. The following table summarizes the payment status, at June 30, 2025 and 2024, of loans that were modified during the twelve-month periods ended June 30, 2025 and 2024.
Payment Status (Amortized Cost) (a)
(Dollars in millions)Current30-89 Days Past Due
Past Due 90 Days or More (b)
Total
Twelve Months Ended June 30, 2025
Commercial and industrial$281 $7 $63 $351 
Real estate:
Commercial598 54 1 653 
Residential builder and developer— — — — 
Other commercial construction279 — 5 284 
Residential (c)77 48 41 166 
Consumer:
Home equity lines and loans1 — — 1 
Recreational finance1 — — 1 
Automobile— — — — 
Other10 — — 10 
Total$1,247 $109 $110 $1,466 
Twelve Months Ended June 30, 2024
Commercial and industrial$294 $15 $3 $312 
Real estate:
Commercial545 42 14 601 
Residential builder and developer28 — — 28 
Other commercial construction344 2 — 346 
Residential (c)110 54 29 193 
Consumer:
Home equity lines and loans2 — — 2 
Recreational finance— — — — 
Automobile— — — — 
Other— — — — 
Total$1,323 $113 $46 $1,482 
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(a) At the respective period end.
(b) Loan modifications predominantly comprised of term extensions or term extensions combined with payment deferrals.
(c) Includes loans guaranteed by government-related entities classified as 30 to 89 days past due of $40 million and $45 million and as past due 90 days or more of $35 million and $27 million at June 30, 2025 and 2024, respectively.