LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES

6 Months Ended

Jun. 30, 2025

LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES

Loans, Leases, and Loans Held for Sale

The following schedule presents our loan and lease portfolio according to major portfolio segment and specific class:


(In millions)	June 30, 2025		December 31, 2024

Loans held for sale	$	172	$	74
Commercial:
Commercial and industrial	$	17,526	$	16,891
Owner-occupied	9,377		9,333
Municipal	4,376		4,364
Leasing	367		377
Total commercial	31,646		30,965
Commercial real estate:
Term	11,186		10,703
Construction and land development	2,425		2,774
Total commercial real estate	13,611		13,477
Consumer:
1-4 family residential	10,431		9,939
Home equity credit line	3,784		3,641
Construction and other consumer real estate	743		810
Bankcard and other revolving plans	496		457
Other	122		121
Total consumer	15,576		14,968

Total loans and leases	$	60,833	$	59,410

Loans and leases classified as held for investment are measured and presented at their amortized cost basis, which includes net unamortized purchase premiums, discounts, and deferred loan fees and costs totaling $52 million and $43 million at June 30, 2025 and December 31, 2024, respectively. The amortized cost basis of the loans does not include accrued interest receivables of $279 million and $281 million at June 30, 2025 and December 31, 2024, respectively. These receivables are included in “Other assets” on the consolidated balance sheet.

Municipal loans typically consist of obligations that are repaid from, or secured by, the general funds or pledged revenues of municipalities, as well as by real estate or equipment. This portfolio also includes loans extended to private commercial and 501(c)(3) not-for-profit organizations that utilize a pass-through municipal structure to benefit from favorable tax treatment.

Land acquisition and development loans included in the construction and land development loan portfolio were $261 million at June 30, 2025 and $260 million at December 31, 2024.

Loans with a carrying value of $41.6 billion at June 30, 2025 and $40.4 billion at December 31, 2024 have been pledged at the Federal Reserve (“FRB”) and the Federal Home Loan Bank (“FHLB”) of Des Moines as collateral for current and potential borrowings.

Loans held for sale are measured individually at fair value or the lower of cost or fair value and primarily consist of CRE loans sold into securitization entities, and conforming residential mortgages generally sold to U.S. government agencies. The following schedule presents loans added to, or sold from, the held for sale category during the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2025		2024		2025		2024

Loans added to held for sale	$	272	$	270	$	448	$	399
Loans sold from held for sale	211		171		350		341

Occasionally, we have continuing involvement in sold loans through retained servicing rights or guarantees. At June 30, 2025 and December 31, 2024, the principal balance of sold loans for which we retained servicing rights was approximately $693 million and $615 million, respectively. Income generated from sold loans, excluding servicing, totaled $2 million and $5 million for the three and six months ended June 30, 2025, respectively, and $2 million and $3 million for the corresponding periods in 2024.

Allowance for Credit Losses

The allowance for credit losses (“ACL”), which consists of the allowance for loan and lease losses (“ALLL”) and the reserve for unfunded lending commitments (“RULC”), represents our estimate of current expected credit losses related to the loan and lease portfolio and unfunded lending commitments as of the balance sheet date. For additional information regarding our policies and methodologies used to estimate the ACL, see Note 6 of our 2024 Form 10-K.

The ACL on AFS and HTM debt securities is estimated independently from the ACL on loans. For HTM securities, the ACL is evaluated using the same methodology applied to loans and leases measured at amortized cost. For more information regarding our methodology used to estimate the ACL on AFS and HTM debt securities, see Note 5 of our 2024 Form 10-K.

Changes in the ACL are summarized as follows:


	Three Months Ended June 30, 2025
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan losses
Balance at beginning of period	$	337	$	271	$	89	$	697
Provision for loan losses	31		(40)		12		3
Gross loan and lease charge-offs	12		1		3		16
Recoveries	5		—		1		6
Net loan and lease charge-offs (recoveries)	7		1		2		10
Balance at end of period	$	361	$	230	$	99	$	690
Reserve for unfunded lending commitments


Balance at beginning of period	$	28	$	10	$	8	$	46
Provision for unfunded lending commitments	(6)		2		—		(4)
Balance at end of period	$	22	$	12	$	8	$	42
Total allowance for credit losses at end of period
Allowance for loan losses	$	361	$	230	$	99	$	690
Reserve for unfunded lending commitments	22		12		8		42
Total allowance for credit losses	$	383	$	242	$	107	$	732


	Six Months Ended June 30, 2025
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan losses
Balance at beginning of period	$	308	$	300	$	88	$	696
Provision for loan losses	72		(69)		17		20
Gross loan and lease charge-offs	31		1		8		40
Recoveries	12		—		2		14
Net loan and lease charge-offs (recoveries)	19		1		6		26
Balance at end of period	$	361	$	230	$	99	$	690
Reserve for unfunded lending commitments
Balance at beginning of period	$	26	$	11	$	8	$	45
Provision for unfunded lending commitments	(4)		1		—		(3)
Balance at end of period	$	22	$	12	$	8	$	42
Total allowance for credit losses at end of period
Allowance for loan losses	$	361	$	230	$	99	$	690
Reserve for unfunded lending commitments	22		12		8		42
Total allowance for credit losses	$	383	$	242	$	107	$	732


	Three Months Ended June 30, 2024
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan losses
Balance at beginning of period	$	296	$	299	$	104	$	699
Provision for loan losses	10		12		(10)		12
Gross loan and lease charge-offs	8		11		2		21
Recoveries	4		—		2		6
Net loan and lease charge-offs (recoveries)	4		11		—		15
Balance at end of period	$	302	$	300	$	94	$	696
Reserve for unfunded lending commitments


Balance at beginning of period	$	19	$	10	$	8	$	37
Provision for unfunded lending commitments	(3)		(3)		(1)		(7)
Balance at end of period	$	16	$	7	$	7	$	30
Total allowance for credit losses at end of period
Allowance for loan losses	$	302	$	300	$	94	$	696
Reserve for unfunded lending commitments	16		7		7		30
Total allowance for credit losses	$	318	$	307	$	101	$	726


	Six Months Ended June 30, 2024
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan losses
Balance at beginning of period	$	302	$	241	$	141	$	684
Provision for loan losses	8		69		(44)		33
Gross loan and lease charge-offs	18		11		6		35
Recoveries	10		1		3		14
Net loan and lease charge-offs (recoveries)	8		10		3		21
Balance at end of period	$	302	$	300	$	94	$	696
Reserve for unfunded lending commitments
Balance at beginning of period	$	19	$	17	$	9	$	45
Provision for unfunded lending commitments	(3)		(10)		(2)		(15)
Balance at end of period	$	16	$	7	$	7	$	30
Total allowance for credit losses at end of period
Allowance for loan losses	$	302	$	300	$	94	$	696
Reserve for unfunded lending commitments	16		7		7		30
Total allowance for credit losses	$	318	$	307	$	101	$	726

Nonaccrual Loans

Loans are generally placed on nonaccrual status when the full collection of principal and interest is not expected, or when the loan is 90 days or more past due with respect to principal or interest, unless it is both well-secured and in the process of collection. We consider several factors when placing a loan on nonaccrual status, including delinquency status, collateral valuation, borrower or guarantor financial condition, bankruptcy status, and other indicators that suggest uncertainty regarding the full and timely recovery of principal and interest.

A nonaccrual loan may be returned to accrual status when the following conditions are met: (1) all delinquent principal and interest have been brought current in accordance with the loan agreement; (2) the loan, if secured, is well secured; (3) the borrower has made timely payments under the contractual terms for a minimum of six months; and (4) a credit analysis indicates reasonable assurance of the borrower's ability and willingness to continue making payments.

The following schedule presents the amortized cost basis of loans on nonaccrual:


	June 30, 2025
	Amortized cost basis				Total amortized cost basis
(In millions)	with no allowance		with allowance				Related allowance


Commercial:
Commercial and industrial	$	10	$	103	$	113	$	14
Owner-occupied	11		28		39		2
Municipal	—		5		5		2
Leasing	—		2		2		—
Total commercial	21		138		159		18
Commercial real estate:
Term	3		57		60		3

Total commercial real estate	3		57		60		3
Consumer:
1-4 family residential	8		50		58		5
Home equity credit line	1		29		30		8

Bankcard and other revolving plans	—		1		1		1

Total consumer	9		80		89		14
Total	$	33	$	275	$	308	$	35


	December 31, 2024
	Amortized cost basis				Total amortized cost basis
(In millions)	with no allowance		with allowance				Related allowance



Commercial:
Commercial and industrial	$	45	$	69	$	114	$	19
Owner-occupied	18		13		31		1
Municipal	5		6		11		2
Leasing	—		2		2		1
Total commercial	68		90		158		23
Commercial real estate:
Term	27		32		59		4

Total commercial real estate	27		32		59		4
Consumer:
1-4 family residential	12		37		49		4
Home equity credit line	5		25		30		5

Bankcard and other revolving plans	—		1		1		1

Total consumer	17		63		80		10
Total	$	112	$	185	$	297	$	37

For accruing loans, interest is accrued, and interest payments are recognized as interest income in accordance with the contractual terms of the loan agreement. For nonaccruing loans, the accrual of interest is discontinued, and any previously accrued but uncollected interest is promptly reversed from interest income, generally within one month. Payments received on nonaccrual loans are not recognized as interest income, but are applied to reduce the outstanding principal balance. However, when the collectability of the amortized cost basis of a nonaccrual loan is no longer in doubt, interest payments may be recognized as interest income on a cash basis. For the three and six months ended June 30, 2025 and 2024, no interest income was recognized on a cash basis for nonaccrual loans.

The following schedule presents the amount of accrued interest receivables reversed from interest income, categorized by loan portfolio segment during the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
(In millions)	2025		2024		2025		2024

Commercial	$	4	$	4	$	7	$	6
Commercial real estate	1		1		3		3
Consumer	1		1		2		2
Total	$	6	$	6	$	12	$	11

Past Due Loans

Closed-end loans with payments scheduled monthly are reported as past due when the borrower is in arrears for two or more monthly payments. Similarly, open-end credits, such as bankcard and other revolving credit plans, are reported as past due when the minimum payment has not been made for two or more billing cycles. Other multi-payment obligations (i.e., quarterly, semi-annual, etc.), single payment, and demand notes, are reported as past due when either principal or interest is due and unpaid for a period of 30 days or more.

Past due loans (accruing and nonaccruing) are summarized as follows:


	June 30, 2025
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total loans		Accruing loans 90+ days past due		Nonaccrual loans that are current 1

Commercial:
Commercial and industrial	$	17,458	$	32	$	36	$	68	$	17,526	$	2	$	75
Owner-occupied	9,350		6		21		27		9,377		—		17
Municipal	4,376		—		—		—		4,376		1		5
Leasing	365		1		1		2		367		—		—
Total commercial	31,549		39		58		97		31,646		3		97
Commercial real estate:
Term	11,151		3		32		35		11,186		—		27
Construction and land development	2,424		1		—		1		2,425		—		—
Total commercial real estate	13,575		4		32		36		13,611		—		27
Consumer:
1-4 family residential	10,382		12		37		49		10,431		—		20
Home equity credit line	3,762		12		10		22		3,784		—		16
Construction and other consumer real estate	742		1		—		1		743		—		—
Bankcard and other revolving plans	492		3		1		4		496		1		—
Other	121		1		—		1		122		—		—
Total consumer	15,499		29		48		77		15,576		1		36
Total	$	60,623	$	72	$	138	$	210	$	60,833	$	4	$	160


	December 31, 2024
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total loans		Accruing loans 90+ days past due		Nonaccrual loans that are current 1

Commercial:
Commercial and industrial	$	16,857	$	20	$	14	$	34	$	16,891	$	1	$	98
Owner-occupied	9,309		10		14		24		9,333		3		16
Municipal	4,348		6		10		16		4,364		10		11
Leasing	377		—		—		—		377		—		2
Total commercial	30,891		36		38		74		30,965		14		127
Commercial real estate:
Term	10,667		2		34		36		10,703		3		28
Construction and land development	2,774		—		—		—		2,774		—		—
Total commercial real estate	13,441		2		34		36		13,477		3		28
Consumer:
1-4 family residential	9,896		16		27		43		9,939		—		15
Home equity credit line	3,609		20		12		32		3,641		—		13
Construction and other consumer real estate	810		—		—		—		810		—		—
Bankcard and other revolving plans	453		2		2		4		457		1		—
Other	121		—		—		—		121		—		—
Total consumer	14,889		38		41		79		14,968		1		28
Total	$	59,221	$	76	$	113	$	189	$	59,410	$	18	$	183

1 Represents nonaccrual loans that are not past due more than 30 days; however, full payment of principal and interest is not expected.

Credit Quality Indicators

In addition to the nonaccrual and past due criteria, we also analyze loans using loan risk-grading systems, which vary based on the size and type of credit risk exposure. The internal risk grades assigned to loans follow our definition of Pass, Special Mention, Substandard, and Doubtful, which align with published regulatory risk classifications.

Definitions of Pass, Special Mention, Substandard, and Doubtful are summarized as follows:

•Pass — A Pass asset is higher-quality and does not fit any of the other categories described below. The likelihood of loss is considered low.

•Special Mention — A Special Mention asset has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or our credit position at some future date.

•Substandard — A Substandard asset is inadequately protected by the current sound worth and paying capacity of the obligor or the collateral pledged, if any. Assets classified as Substandard have well-defined weaknesses and are characterized by the distinct possibility that we may sustain some loss if deficiencies are not corrected.

•Doubtful — A Doubtful asset has all the weaknesses inherent in a Substandard asset, with the added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable.

The amount of loans classified as Doubtful totaled less than $1 million at June 30, 2025, compared with $14 million at December 31, 2024.

For commercial and CRE loans with commitments greater than $1 million, we assign one of multiple grades within the Pass classification or one of the previously described risk classifications. We assess our internal risk grades quarterly, or as soon as we identify information that affects the credit risk of the loan.

For consumer loans and for commercial and CRE loans with commitments of $1 million or less, we generally assign internal risk grades similar to those previously described based on automated rules that consider refreshed credit scores, payment performance, and other risk indicators. These loans are generally assigned either a Pass, Special Mention, or Substandard grade, and are reviewed as we identify information that might warrant a grade change.

The following schedule presents the amortized cost basis of loans and leases categorized by year of origination and by credit quality classification as monitored by management. Loans that have been modified resulting in substantially different terms than the original loan are included in the period in which the modification occurred.


	June 30, 2025
	Term loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2025		2024		2023		2022		2021		Prior						Total
Commercial:
Commercial and industrial
Pass	$	1,699	$	2,300	$	1,688	$	1,042	$	554	$	861	$	8,356	$	148	$	16,648
Special Mention	3		23		16		27		5		17		158		3		252
Accruing Substandard	1		65		47		191		17		15		166		11		513
Nonaccrual	12		3		2		27		5		24		13		27		113
Total commercial and industrial	1,715		2,391		1,753		1,287		581		917		8,693		189		17,526
Owner-occupied
Pass	637		1,291		773		1,494		1,530		2,754		241		47		8,767
Special Mention	1		66		1		19		30		29		—		1		147
Accruing Substandard	2		30		28		124		102		113		20		5		424
Nonaccrual	—		7		2		8		2		18		2		—		39
Total owner-occupied	640		1,394		804		1,645		1,664		2,914		263		53		9,377
Municipal
Pass	293		597		478		877		907		1,156		—		41		4,349
Special Mention	—		3		—		—		—		—		—		—		3
Accruing Substandard	—		—		—		—		—		19		—		—		19
Nonaccrual	—		—		—		—		5		—		—		—		5
Total municipal	293		600		478		877		912		1,175		—		41		4,376
Leasing
Pass	41		98		70		84		20		34		—		—		347
Special Mention	—		1		—		—		—		—		—		—		1
Accruing Substandard	—		2		2		10		2		1		—		—		17
Nonaccrual	—		—		1		1		—		—		—		—		2
Total leasing	41		101		73		95		22		35		—		—		367
Total commercial	2,689		4,486		3,108		3,904		3,179		5,041		8,956		283		31,646
Commercial real estate:
Term
Pass	1,139		1,485		1,283		2,089		1,147		2,169		322		155		9,789
Special Mention	—		41		—		44		—		1		—		—		86
Accruing Substandard	246		156		78		466		140		84		1		80		1,251
Nonaccrual	27		—		—		23		—		10		—		—		60
Total term	1,412		1,682		1,361		2,622		1,287		2,264		323		235		11,186
Construction and land development
Pass	161		453		563		194		1		1		745		44		2,162
Special Mention	—		—		61		32		—		—		—		—		93
Accruing Substandard	95		9		19		47		—		—		—		—		170
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and land development	256		462		643		273		1		1		745		44		2,425
Total commercial real estate	1,668		2,144		2,004		2,895		1,288		2,265		1,068		279		13,611


	June 30, 2025
	Term loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2025		2024		2023		2022		2021		Prior						Total














Consumer:
1-4 family residential
Pass	$	462	$	1,010	$	919	$	3,115	$	1,872	$	2,992	$	—	$	—	$	10,370
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		1		2		—		—		3
Nonaccrual	—		1		4		11		12		30		—		—		58
Total 1-4 family residential	462		1,011		923		3,126		1,885		3,024		—		—		10,431
Home equity credit line
Pass	—		—		—		—		—		—		3,643		104		3,747
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		7		—		7
Nonaccrual	—		—		—		—		—		—		25		5		30
Total home equity credit line	—		—		—		—		—		—		3,675		109		3,784
Construction and other consumer real estate
Pass	66		281		136		241		16		3		—		—		743
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and other consumer real estate	66		281		136		241		16		3		—		—		743
Bankcard and other revolving plans
Pass	—		—		—		—		—		—		492		1		493
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		2		—		2
Nonaccrual	—		—		—		—		—		—		1		—		1
Total bankcard and other revolving plans	—		—		—		—		—		—		495		1		496
Other consumer
Pass	39		34		25		16		6		2		—		—		122
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total other consumer	39		34		25		16		6		2		—		—		122
Total consumer	567		1,326		1,084		3,383		1,907		3,029		4,170		110		15,576
Total loans	$	4,924	$	7,956	$	6,196	$	10,182	$	6,374	$	10,335	$	14,194	$	672	$	60,833


	December 31, 2024
	Term loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2024		2023		2022		2021		2020		Prior						Total
Commercial:
Commercial and industrial
Pass	$	2,479	$	1,951	$	1,504	$	759	$	387	$	679	$	8,043	$	150	$	15,952
Special Mention	37		24		47		8		2		34		85		5		242
Accruing Substandard	53		43		200		26		28		21		200		12		583
Nonaccrual	7		13		31		17		1		4		38		3		114
Total commercial and industrial	2,576		2,031		1,782		810		418		738		8,366		170		16,891
Owner-occupied
Pass	1,346		907		1,606		1,657		900		2,097		234		47		8,794
Special Mention	38		—		38		31		2		18		18		1		146
Accruing Substandard	23		28		75		66		25		133		7		5		362
Nonaccrual	5		1		4		1		—		15		5		—		31
Total owner-occupied	1,412		936		1,723		1,755		927		2,263		264		53		9,333
Municipal
Pass	604		498		939		960		553		753		—		29		4,336
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	10		4		—		—		—		3		—		—		17
Nonaccrual	3		—		—		5		—		3		—		—		11
Total municipal	617		502		939		965		553		759		—		29		4,364
Leasing
Pass	109		79		94		26		12		36		—		—		356
Special Mention	—		—		2		—		—		—		—		—		2
Accruing Substandard	1		3		10		2		1		—		—		—		17
Nonaccrual	—		1		1		—		—		—		—		—		2
Total leasing	110		83		107		28		13		36		—		—		377
Total commercial	4,715		3,552		4,551		3,558		1,911		3,796		8,630		252		30,965
Commercial real estate:
Term
Pass	1,687		1,198		2,093		1,278		1,053		1,608		254		175		9,346
Special Mention	48		—		87		—		—		5		—		—		140
Accruing Substandard	298		105		443		144		13		102		27		26		1,158
Nonaccrual	—		—		23		—		—		10		—		26		59
Total term	2,033		1,303		2,646		1,422		1,066		1,725		281		227		10,703
Construction and land development
Pass	361		701		445		4		1		9		680		52		2,253
Special Mention	—		22		21		17		—		—		—		25		85
Accruing Substandard	57		52		249		78		—		—		—		—		436
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and land development	418		775		715		99		1		9		680		77		2,774
Total commercial real estate	2,451		2,078		3,361		1,521		1,067		1,734		961		304		13,477


	December 31, 2024
	Term loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2024		2023		2022		2021		2020		Prior						Total














Consumer:
1-4 family residential
Pass	$	1,062	$	870	$	2,959	$	1,877	$	925	$	2,197	$	—	$	—	$	9,890
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		3		8		9		2		27		—		—		49
Total 1-4 family residential	1,062		873		2,967		1,886		927		2,224		—		—		9,939
Home equity credit line
Pass	—		—		—		—		—		—		3,506		99		3,605
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		6		—		6
Nonaccrual	—		—		—		—		—		—		22		8		30
Total home equity credit line	—		—		—		—		—		—		3,534		107		3,641
Construction and other consumer real estate
Pass	157		191		420		34		5		3		—		—		810
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and other consumer real estate	157		191		420		34		5		3		—		—		810
Bankcard and other revolving plans
Pass	—		—		—		—		—		—		453		1		454
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		2		—		2
Nonaccrual	—		—		—		—		—		—		1		—		1
Total bankcard and other revolving plans	—		—		—		—		—		—		456		1		457
Other consumer
Pass	52		35		22		8		2		2		—		—		121
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total other consumer	52		35		22		8		2		2		—		—		121
Total consumer	1,271		1,099		3,409		1,928		934		2,229		3,990		108		14,968
Total loans	$	8,437	$	6,729	$	11,321	$	7,007	$	3,912	$	7,759	$	13,581	$	664	$	59,410

The following schedules present gross charge-offs by year of loan origination for the periods presented.


	Three Months Ended June 30, 2025
	Term loans												Revolving loans gross charge-offs		Revolving loans converted to term loans gross charge-offs
	Gross charge-offs by year of loan origination
(In millions)	2025		2024		2023		2022		2021		Prior						Total
Commercial:
Commercial and industrial	$	—	$	1	$	1	$	1	$	2	$	1	$	6	$	—	$	12




Commercial real estate:
Term	1		—		—		—		—		—		—		—		1


Consumer:
1-4 family residential	—		—		—		—		—		1		—		—		1


Bankcard and other revolving plans	—		—		—		—		—		—		2		—		2

Total consumer	—		—		—		—		—		1		2		—		3
Total gross charge-offs	$	1	$	1	$	1	$	1	$	2	$	2	$	8	$	—	$	16

	Six Months Ended June 30, 2025
	Term loans												Revolving loans gross charge-offs		Revolving loans converted to term loans gross charge-offs
	Gross charge-offs by year of loan origination
(In millions)	2025		2024		2023		2022		2021		Prior						Total
Commercial:
Commercial and industrial	$	—	$	1	$	2	$	1	$	3	$	11	$	13	$	—	$	31




Commercial real estate:
Term	1		—		—		—		—		—		—		—		1


Consumer:
1-4 family residential	—		—		—		—		1		2		—		—		3
Home equity credit line	—		—		—		—		—		—		1		—		1

Bankcard and other revolving plans	—		—		—		—		—		—		4		—		4

Total consumer	—		—		—		—		1		2		5		—		8
Total gross charge-offs	$	1	$	1	$	2	$	1	$	4	$	13	$	18	$	—	$	40


	Three Months Ended June 30, 2024
	Term loans												Revolving loans gross charge-offs		Revolving loans converted to term loans gross charge-offs
	Gross charge-offs by year of loan origination
(In millions)	2024		2023		2022		2021		2020		Prior						Total
Commercial:
Commercial and industrial	$	—	$	1	$	1	$	1	$	—	$	3	$	2	$	—	$	8




Commercial real estate:
Term	—		7		4		—		—		—		—		—		11


Consumer:



Bankcard and other revolving plans	—		—		—		—		—		—		2		—		2


Total gross charge-offs	$	—	$	8	$	5	$	1	$	—	$	3	$	4	$	—	$	21

	Six Months Ended June 30, 2024
	Term loans												Revolving loans gross charge-offs		Revolving loans converted to term loans gross charge-offs
	Gross charge-offs by year of loan origination
(In millions)	2024		2023		2022		2021		2020		Prior						Total
Commercial:
Commercial and industrial	$	—	$	2	$	4	$	2	$	—	$	3	$	6	$	1	$	18




Commercial real estate:
Term	—		7		4		—		—		—		—		—		11


Consumer:
1-4 family residential	—		—		—		—		—		1		—		—		1


Bankcard and other revolving plans	—		—		—		—		—		—		4		—		4
Other	—		—		—		—		—		1		—		—		1
Total consumer	—		—		—		—		—		2		4		—		6
Total gross charge-offs	$	—	$	9	$	8	$	2	$	—	$	5	$	10	$	1	$	35

Loan Modifications

Loans may be modified in the normal course of business for competitive reasons or to strengthen our collateral position. Loan modifications may also occur when the borrower experiences financial difficulty and needs temporary or permanent relief from the original contractual terms of the loan. For loans that have been modified with a borrower experiencing financial difficulty, we use the same credit loss estimation methods that we use for the rest of the loan portfolio. These methods incorporate the post-modification loan terms, as well as defaults and charge-offs associated with historical modified loans. All nonaccruing loans more than $1 million are evaluated individually, regardless of modification.

We consider many factors in determining whether to agree to a loan modification and we seek a solution that will both minimize potential loss to us and attempt to help the borrower. We evaluate borrowers’ current and forecasted future cash flows, their ability and willingness to make current contractual or proposed modified payments, the value of the underlying collateral (if applicable), the possibility of obtaining additional security or guarantees, and the potential costs related to a repossession or foreclosure and the subsequent sale of the collateral.

A modified loan on nonaccrual will generally remain on nonaccrual until the borrower has proven the ability to perform under the modified structure for a minimum of six months, and there is evidence that such payments can and are likely to continue as agreed. Performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual at the time of modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual.

On an ongoing basis, we monitor the performance of all modified loans in accordance with their modified terms. For the three and six months ended June 30, 2025, the amortized cost of modified loans that experienced a payment default within 12 months of modification and remained in default at period end was approximately zero and $2 million, respectively. For the three and six months ended June 30, 2024, the corresponding amounts were $3 million and $27 million.

The amortized cost of loans to borrowers experiencing financial difficulty that were modified during the period, by loan class and modification type, is summarized in the following schedule:


	Three Months Ended June 30, 2025
	Amortized cost associated with the following modification types:
(Dollar amounts in millions)	Interest rate reduction		Maturity or term extension		Principal forgiveness		Payment deferral		Multiple modification types 1		Total 2		Percentage of total loans 3
Commercial:
Commercial and industrial	$	—	$	45	$	—	$	—	$	—	$	45	0.3	%
Owner-occupied	—		1		—		—		—		1		—

Total commercial	—		46		—		—		—		46		0.1
Commercial real estate:
Term	—		180		—		—		7		187		1.7
Construction and land development	—		25		—		—		—		25		1.0
Total commercial real estate	—		205		—		—		7		212		1.6
Consumer:
1-4 family residential	—		—		—		—		1		1		—





Total	$	—	$	251	$	—	$	—	$	8	$	259	0.4


	Six Months Ended June 30, 2025
	Amortized cost associated with the following modification types:
(Dollar amounts in millions)	Interest rate reduction		Maturity or term extension		Principal forgiveness		Payment deferral		Multiple modification types 1		Total 2		Percentage of total loans 3
Commercial:
Commercial and industrial	$	—	$	67	$	—	$	—	$	—	$	67	0.4	%
Owner-occupied	—		5		—		—		—		5		0.1

Total commercial	—		72		—		—		—		72		0.2
Commercial real estate:
Term	—		301		—		8		7		316		2.8
Construction and land development	—		25		—		—		—		25		1.0
Total commercial real estate	—		326		—		8		7		341		2.5
Consumer:
1-4 family residential	—		—		—		—		7		7		0.1





Total	$	—	$	398	$	—	$	8	$	14	$	420	0.7


	Three Months Ended June 30, 2024
	Amortized cost associated with the following modification types:
(Dollar amounts in millions)	Interest rate reduction		Maturity or term extension		Principal forgiveness		Payment deferral		Multiple modification types 1		Total 2		Percentage of total loans 3
Commercial:
Commercial and industrial	$	—	$	27	$	—	$	—	$	1	$	28	0.2	%
Owner-occupied	—		2		—		—		—		2		—

Total commercial	—		29		—		—		1		30		0.1
Commercial real estate:
Term	—		16		—		—		—		16		0.1


Consumer:
1-4 family residential	—		—		1		—		—		1		—





Total	$	—	$	45	$	1	$	—	$	1	$	47	0.1


	Six Months Ended June 30, 2024
	Amortized cost associated with the following modification types:
(Dollar amounts in millions)	Interest rate reduction		Maturity or term extension		Principal forgiveness		Payment deferral		Multiple modification types 1		Total 2		Percentage of total loans 3
Commercial:
Commercial and industrial	$	—	$	55	$	—	$	1	$	4	$	60	0.4	%
Owner-occupied	—		2		—		—		2		4		—
Municipal	—		3		—		—		—		3		0.1
Total commercial	—		60		—		1		6		67		0.2
Commercial real estate:
Term	—		103		—		—		—		103		1.0
Construction and land development	—		2		—		—		—		2		0.1
Total commercial real estate	—		105		—		—		—		105		0.8
Consumer:
1-4 family residential	—		—		2		—		2		4		—
Home equity credit line	—		—		—		—		1		1		—



Total consumer	—		—		2		—		3		5		—
Total	$	—	$	165	$	2	$	1	$	9	$	177	0.3

1 Includes modifications that resulted from a combination of interest rate reduction, maturity or term extension, principal forgiveness, and payment deferral modifications.

2 Unfunded lending commitments related to loans modified to borrowers experiencing financial difficulty totaled $38 million and $10 million at June 30, 2025 and June 30, 2024, respectively.

3 Amounts less than 0.05% are rounded to zero.

The financial impact of loan modifications to borrowers experiencing financial difficulty is summarized in the following schedules:


	Three Months Ended June 30, 2025			Six Months Ended June 30, 2025
	Weighted-average interest rate reduction (in percentage points)		Weighted-average term extension (in months)	Weighted-average interest rate reduction (in percentage points)		Weighted-average term extension (in months)
Commercial:
Commercial and industrial	—	%	15	—	%	13
Owner-occupied	—		3	—		89


Total commercial	—		14	—		18
Commercial real estate:
Term	0.1		10	0.1		10
Construction and land development	—		9	—		9
Total commercial real estate	0.1		9	0.1		10
Consumer:1
1-4 family residential	—		3	—		3




Total consumer	—		3	—		3
Total weighted average financial impact	0.1		10	0.1		11


	Three Months Ended June 30, 2024			Six Months Ended June 30, 2024
	Weighted-average interest rate reduction (in percentage points)		Weighted-average term extension (in months)	Weighted-average interest rate reduction (in percentage points)		Weighted-average term extension (in months)
Commercial:
Commercial and industrial	0.6	%	3	0.1	%	8
Owner-occupied	—		1	0.1		4
Municipal	—		0	—		61

Total commercial	0.6		3	0.1		10
Commercial real estate:
Term	—		3	—		11
Construction and land development	—		5	—		14
Total commercial real estate	—		3	—		11
Consumer:1
1-4 family residential	—		0	1.3		78
Home equity credit line	—		0	6.8		42


Other	—		0	—		71
Total consumer	—		0	4.8		67
Total weighted average financial impact	0.6		3	1.0		12

1 Primarily relates to a small number of loans within each consumer loan class.

Loan modifications to borrowers experiencing financial difficulty during the three and six months ended June 30, 2025 and 2024, resulted in less than $1 million in principal forgiveness across the total loan portfolio for all periods.

The following schedule presents the aging of loans to borrowers experiencing financial difficulty that were modified on or after July 1, 2024 through June 30, 2025, presented by portfolio segment and loan class:


	June 30, 2025
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total amortized cost of loans

Commercial:
Commercial and industrial	$	63	$	1	$	3	$	4	$	67
Owner-occupied	4		1		—		1		5


Total commercial	67		2		3		5		72
Commercial real estate:
Term	306		—		10		10		316
Construction and land development	25		—		—		—		25
Total commercial real estate	331		—		10		10		341
Consumer:
1-4 family residential	6		—		1		1		7





Total	$	404	$	2	$	14	$	16	$	420

The following schedule presents the aging of loans to borrowers experiencing financial difficulty that were modified on or after July 1, 2023 through June 30, 2024, presented by portfolio segment and loan class:


	June 30, 2024
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total amortized cost of loans

Commercial:
Commercial and industrial	$	83	$	1	$	4	$	5	$	88
Owner-occupied	8		—		—		—		8
Municipal	11		—		—		—		11

Total commercial	102		1		4		5		107
Commercial real estate:
Term	156		26		2		28		184
Construction and land development	19		—		2		2		21
Total commercial real estate	175		26		4		30		205
Consumer:
1-4 family residential	4		—		—		—		4
Home equity credit line	1		—		—		—		1


Other	1		—		—		—		1
Total consumer	6		—		—		—		6
Total	$	283	$	27	$	8	$	35	$	318

Collateral-Dependent Loans

When a loan is individually evaluated for expected credit losses, we estimate a specific reserve for the loan based on (1) the projected present value of the loan’s future cash flows discounted at the loan’s effective interest rate, (2) the observable market price of the loan, or (3) the fair value of the loan’s underlying collateral.

Select information on loans for which the borrower is experiencing financial difficulties and repayment is expected to be provided substantially through the operation or sale of the underlying collateral, including the type of collateral and the extent to which the collateral secures the loans, is summarized as follows:


	June 30, 2025
(Dollar amounts in millions)	Amortized cost		Major types of collateral	Weighted average LTV 1
Commercial:
Commercial and industrial	$	1	Equipment and machinery	101%
Owner-occupied	9		Industrial building	56%
Municipal	5		Multifamily apartments	169%


Commercial real estate:
Term	51		Office building	96%


Consumer:
1-4 family residential	3		Single family residential	48%


Total	$	69


	December 31, 2024
(Dollar amounts in millions)	Amortized cost		Major types of collateral	Weighted average LTV 1
Commercial:

Owner occupied	$	6	Retail facility	64%
Municipal	5		Multifamily apartments	174%


Commercial real estate:
Term	49		Office building	98%


Consumer:
1-4 family residential	3		Single family residential	38%
Home equity credit line	3		Single family residential	29%




Total	$	66

1 The fair value is based on the most recent appraisal or other collateral evaluation.

Foreclosed Residential Real Estate

The balance of foreclosed residential real estate property was $1 million at June 30, 2025, compared with less than $1 million at December 31, 2024. The amortized cost basis of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure was $18 million and $14 million for the same periods, respectively.