v3.25.3
Loans and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2025
Credit Loss [Abstract]  
Net Loans
The following table presents our recorded investment in loans, by segment, as of the dates indicated:
(In millions)September 30, 2025December 31, 2024
Domestic(1):
Commercial and financial:
Fund finance(2)
$17,776 $16,347 
Leveraged loans2,829 2,742 
Overdrafts1,497 1,208 
Collateralized loan obligations
100 50 
Other(3)
2,556 3,220 
Commercial real estate2,549 2,842 
Total domestic$27,307 $26,409 
Foreign(1):
Commercial and financial:
Fund finance(2)
$7,125 $6,601 
Leveraged loans1,114 1,082 
Overdrafts1,392 772 
Collateralized loan obligations
9,722 8,336 
Total foreign19,353 16,791 
Total loans(4)
46,660 43,200 
Allowance for credit losses(190)(174)
Loans, net of allowance$46,470 $43,026 
(1) Domestic and foreign categorization is based on the borrower’s country of domicile.
(2) Fund finance loans include primarily $12.75 billion private equity capital call finance loans, $7.48 billion loans to real money funds and $1.62 billion loans to business development companies as of September 30, 2025, compared to $11.54 billion private equity capital call finance loans, $8.09 billion loans to real money funds and $1.44 billion loans to business development companies as of December 31, 2024.
(3) Includes $2.39 billion securities finance loans and $170 million loans to municipalities as of September 30, 2025 and $3.01 billion securities finance loans and $214 million loans to municipalities as of December 31, 2024.
(4) As of September 30, 2025, excluding overdrafts, floating rate loans totaled $41.20 billion and fixed rate loans totaled $2.57 billion. We have entered into interest rate swap agreements to hedge the forecasted cash flows associated with EURIBOR indexed floating-rate loans. See Note 10 to the consolidated financial statements in our 2024 Form 10-K for additional details.
Recorded Investment in Each Class of Total Loans and Leases by Credit Quality Indicator
The following tables present our recorded investment in loans to counterparties by risk rating, as noted above, as of the dates indicated:
September 30, 2025Commercial and FinancialCommercial Real EstateTotal Loans
(In millions)
Investment grade$39,350 $1,551 $40,901 
Sub-investment grade
4,473 588 5,061 
Special mention200 45 245 
Substandard32 174 206 
Doubtful41 191 232 
Total(1)(2)
$44,096 $2,549 $46,645 
December 31, 2024Commercial and FinancialCommercial Real EstateTotal Loans 
(In millions)
Investment grade$35,831 $1,969 $37,800 
Sub-investment grade
4,278 409 4,687 
Special mention187 62 249 
Substandard48 211 259 
Doubtful— 191 191 
Total(1)(2)
$40,344 $2,842 $43,186 
(1) Loans include $2.89 billion and $1.98 billion of overdrafts as of September 30, 2025 and December 31, 2024, respectively. Overdrafts are short-term in nature and do not present a significant credit risk to us. As of September 30, 2025, $2.76 billion overdrafts were investment grade and $0.13 billion overdrafts were sub-investment grade.
(2) Total does not include $15 million and $14 million of loans classified as held-for-sale as of September 30, 2025 and December 31, 2024, respectively.
The following table presents the amortized cost basis, by year of origination and credit quality indicator, as of September 30, 2025. For origination years before the fifth annual period, we present the aggregate amortized cost basis of loans. For purchased loans, the date of issuance is used to determine the year of origination, not the date of acquisition. For modified, extended or renewed lending arrangements, we evaluate whether a credit event has occurred which would consider the loan to be a new arrangement.
(In millions)20252024202320222021PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$2,673 $856 $184 $39 $32 $173 $17,432 $21,389 
Sub-investment grade
931 1,340 164 82 234 95 461 3,307 
Special mention— 49 — — — — — 49 
Substandard— — — 12 — — — 12 
Total commercial and financing$3,604 $2,245 $348 $133 $266 $268 $17,893 $24,757 
Commercial real estate:
Risk Rating:
Investment grade$— $41 $168 $344 $317 $681 $— $1,551 
Sub-investment grade
— — 47 20 31 490 — 588 
Special mention— — — — — 45 — 45 
Substandard— — — — — 174 — 174 
Doubtful67 — — — — 124 — 191 
Total commercial real estate$67 $41 $215 $364 $348 $1,514 $— $2,549 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$4,796 $3,713 $1,052 $616 $1,368 $— $6,416 $17,961 
Sub-investment grade
275 556 34 — 108 72 121 1,166 
Special mention47 73 — — 5 26 — 151 
Substandard— — 20 — — — — 20 
Doubtful— — — — 41 — — 41 
Total commercial and financing$5,118 $4,342 $1,106 $616 $1,522 $98 $6,537 $19,339 
Total loans(2)
$8,789 $6,628 $1,669 $1,113 $2,136 $1,880 $24,430 $46,645 
(1) Any reserve associated with accrued interest is not material. As of September 30, 2025, accrued interest receivable of $334 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2) Total does not include $15 million of loans classified as held-for-sale as of September 30, 2025.
The following table presents the amortized cost basis, by year of origination and credit quality indicator as of December 31, 2024:
(In millions)20242023202220212020PriorRevolving Loans
Total(1)
Domestic loans:
Commercial and financial:
Risk Rating:
Investment grade$1,946 $223 $89 $47 $6 $197 $18,044 $20,552 
Sub-investment grade
1,834 173 154 387 53 155 136 2,892 
Special mention47 10 — 54 — — — 111 
Substandard— — 12 — — — — 12 
Total commercial and financing$3,827 $406 $255 $488 $59 $352 $18,180 $23,567 
Commercial real estate:
Risk Rating:
Investment grade$41 $63 $488 $278 $128 $971 $— $1,969 
Sub-investment grade
— 153 20 69 100 67 — 409 
Special mention— — — — — 62 — 62 
Substandard— — — — — 211 — 211 
Doubtful— — — — — 191 — 191 
Total commercial real estate$41 $216 $508 $347 $228 $1,502 $— $2,842 
Non-U.S. loans:
Commercial and financial:
Risk Rating:
Investment grade$4,243 $1,796 $1,152 $2,187 $— $— $5,901 $15,279 
Sub-investment grade
607 174 44 246 46 43 226 1,386 
Special mention— 35 26 15 — — — 76 
Substandard— — — 36 — — — 36 
Total commercial and financing$4,850 $2,005 $1,222 $2,484 $46 $43 $6,127 $16,777 
Total loans(2)
$8,718 $2,627 $1,985 $3,319 $333 $1,897 $24,307 $43,186 
(1) Any reserve associated with accrued interest is not material. As of December 31, 2024, accrued interest receivable of $327 million included in the amortized cost basis of loans has been excluded from the amortized cost basis within this table.
(2) Total does not include $14 million of loans classified as held-for-sale as of December 31, 2024.
Schedule of Activity in the Allowance for Loan Losses
The following tables present the activity in the allowance for credit losses by portfolio and class for the periods indicated:
Three Months Ended September 30, 2025
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateOff-Balance Sheet CommitmentsAll Other Total
Allowance for credit losses:
Beginning balance$71 $7 $101 $12 $1 $192 
Provision7 (2)6 (1)(1)9 
Ending balance$78 $5 $107 $11 $— $201 
(1) Includes $4 million allowance for credit losses on fund finance loans and $1 million on other loans.
Nine Months Ended September 30, 2025
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateOff-Balance Sheet CommitmentsTotal
Allowance for credit losses:
Beginning balance$68 $4 $102 $9 $183 
Provision20 1 28 2 51 
Charge-offs(2)
(10)— (23)— (33)
Ending balance$78 $5 $107 $11 $201 
(1) Includes $4 million allowance for credit losses on fund finance loans and $1 million on other loans.
(2) Related to the restructuring of a commercial real estate loan and the sale of certain leveraged loans in the nine months ended September 30, 2025.
Three Months Ended September 30, 2024
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsTotal
Allowance for credit losses:
Beginning balance$56 $4 $76 $1 $8 $145 
Provision
12 — 14 — — 26 
Ending balance$68 $4 $90 $1 $8 $171 
(1) Includes $3 million allowance for credit losses on fund finance loans and $1 million on other loans.
Nine Months Ended September 30, 2024
Commercial and Financial
(In millions)Leveraged Loans
Other Loans(1)
Commercial Real EstateHeld-to-Maturity SecuritiesOff-Balance Sheet CommitmentsTotal
Allowance for credit losses:
Beginning balance$72 $3 $60 $1 $14 150 
Provision13 1 55 — (6)63 
Charge-offs(2)
(17)— (25)— — (42)
Ending balance$68 $4 $90 $1 $8 $171 
(1) Includes $3 million allowance for credit losses on fund finance loans and $1 million on other loans.
(2) Related to the sale of commercial real estate and leveraged loans in the nine months ended September 30, 2024.