v3.26.1
Loans and allowance for loan losses
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans and allowance for loan losses


3. Loans and allowance for loan losses
A summary of current, past due and nonaccrual loans as of March 31, 2026 and December 31, 2025 follows.
(Dollars in millions)Current30-89 Days
Past Due		Accruing Loans Past Due 90 Days or MoreNonaccrualTotal (a) (b)
March 31, 2026
Commercial and industrial$64,543 $311 $2 $535 $65,391 
Real estate:   
Commercial (c)19,607 129 — 294 20,030 
Residential builder and developer 110 — — — 110 
Other commercial construction3,091 104 — 10 3,205 
Residential (d) (e)23,398 553 634 272 24,857 
Consumer:   
Home equity lines and loans (e)4,681 31 — 84 4,796 
Recreational finance14,003 109 — 32 14,144 
Automobile4,947 60 — 9 5,016 
Other2,314 37 10 4 2,365 
Total$136,694 $1,334 $646 $1,240 $139,914 
December 31, 2025
Commercial and industrial$62,626 $390 $5 $527 $63,548 
Real estate:   
Commercial (c)19,505 364 3 320 20,192 
Residential builder and developer69 — — — 69 
Other commercial construction3,436 109 — 13 3,558 
Residential (d) (e)23,410 657 543 264 24,874 
Consumer:   
Home equity lines and loans (e)4,690 35 — 82 4,807 
Recreational finance13,946 116 — 30 14,092 
Automobile5,097 59 — 11 5,167 
Other2,357 23 10 5 2,395 
Total$135,136 $1,753 $561 $1,252 $138,702 
__________________________________________________________________________________
(a)Balances include net discounts, comprised of unamortized premiums, discounts and net deferred loan fees and costs of $269 million and $276 million at March 31, 2026 and December 31, 2025, respectively.
(b)Balances exclude accrued interest receivable of $616 million and $627 million at March 31, 2026 and December 31, 2025, respectively, which is included in Accrued interest and other assets in the Consolidated Balance Sheet.
(c)Commercial real estate loans held for sale were $359 million at March 31, 2026 and $484 million at December 31, 2025.
(d)Residential real estate loans held for sale were $327 million at March 31, 2026 and $441 million at December 31, 2025.
(e)There were $185 million and $182 million at March 31, 2026 and December 31, 2025, respectively, of loans secured by residential real estate that were in the process of foreclosure. At March 31, 2026, approximately 55% of those residential real estate loans in the process of foreclosure were government guaranteed.
3. Loans and allowance for loan losses
At March 31, 2026, approximately $22.0 billion of commercial and industrial loans, $13.6 billion of commercial real estate loans, $19.6 billion of one-to-four family residential real estate loans, $3.0 billion of home equity loans and lines of credit and $15.1 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. At December 31, 2025, approximately $20.7 billion of commercial and industrial loans, $13.4 billion of commercial real estate loans, $19.5 billion of one-to-four family residential real estate loans, $3.0 billion of home equity loans and lines of credit and $15.2 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. As further described in notes 4 and 11, loans totaling $2.4 billion and $2.1 billion at March 31, 2026 and December 31, 2025, 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 March 31, 2026 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 period ended March 31, 2026 by origination year.
 Term Loans by Origination YearRevolving
Loans		Revolving Loans Converted to Term
Loans		Total
(Dollars in millions)20262025202420232022Prior
Commercial and industrial:
Pass$3,057 $9,161 $6,171 $3,664 $3,746 $6,752 $29,241 $101 $61,893 
Criticized accrual12 231 353 452 310 349 1,219 37 2,963 
Criticized nonaccrual1 16 63 74 78 175 111 17 535 
Total commercial and industrial$3,070 $9,408 $6,587 $4,190 $4,134 $7,276 $30,571 $155 $65,391 
Gross charge-offs three months ended March 31, 2026$— $4 $6 $5 $4 $4 $23 $— $46 
Real estate:
Commercial:
Pass$999 $3,317 $423 $1,556 $1,579 $9,598 $337 $— $17,809 
Criticized accrual— 9 2 275 275 1,366 — — 1,927 
Criticized nonaccrual— 24 — 1 23 246 — — 294 
Total commercial real estate$999 $3,350 $425 $1,832 $1,877 $11,210 $337 $— $20,030 
Gross charge-offs three months ended March 31, 2026$— $— $— $1 $2 $14 $— $— $17 
Residential builder and developer:
Pass$41 $14 $1 $1 $1 $5 $34 $— $97 
Criticized accrual— — — — 13 — — — 13 
Criticized nonaccrual— — — — — — — — — 
Total residential builder and developer$41 $14 $1 $1 $14 $5 $34 $— $110 
Gross charge-offs three months ended March 31, 2026$— $— $— $— $— $— $— $— $— 
Other commercial construction:
Pass$59 $419 $229 $932 $521 $162 $63 $— $2,385 
Criticized accrual— — 9 152 438 210 1 — 810 
Criticized nonaccrual— — — — 8 2 — — 10 
Total other commercial construction$59 $419 $238 $1,084 $967 $374 $64 $— $3,205 
Gross charge-offs three months ended March 31, 2026$— $— $— $— $— $1 $— $— $1 
3. Loans and allowance for loan losses
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 March 31, 2026 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 period ended March 31, 2026 by origination year follows.
 Term Loans by Origination YearRevolving
Loans		Revolving Loans Converted to Term
Loans		 Total
(Dollars in millions)20262025202420232022Prior
Residential real estate:
Current$1,029 $3,214 $1,696 $1,128 $4,001 $12,197 $133 $— $23,398 
30-89 days past due— 13 8 23 91 418 — — 553 
Accruing loans past due 90 days or more— 2 10 27 158 437 — — 634 
Nonaccrual— 1 5 4 43 219 — — 272 
Total residential real estate$1,029 $3,230 $1,719 $1,182 $4,293 $13,271 $133 $— $24,857 
Gross charge-offs three months ended March 31, 2026$— $— $— $— $— $1 $— $— $1 
Consumer:  
Home equity lines and loans:  
Current$— $— $— $— $— $72 $3,340 $1,269 $4,681 
30-89 days past due— — — — — 1 — 30 31 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual— — — — — 4 1 79 84 
Total home equity lines and loans$— $— $— $— $— $77 $3,341 $1,378 $4,796 
Gross charge-offs three months ended March 31, 2026$— $— $— $— $— $— $— $1 $1 
Recreational finance:  
Current$853 $3,817 $2,876 $1,626 $1,598 $3,233 $— $— $14,003 
30-89 days past due— 11 19 17 17 45 — — 109 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual— 3 4 10 4 11 — — 32 
Total recreational finance$853 $3,831 $2,899 $1,653 $1,619 $3,289 $— $— $14,144 
Gross charge-offs three months ended March 31, 2026$— $5 $9 $10 $7 $15 $— $— $46 
Automobile: 
Current$385 $1,796 $1,523 $495 $407 $341 $— $— $4,947 
30-89 days past due— 11 17 13 10 9 — — 60 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual— 3 2 1 1 2 — — 9 
Total automobile$385 $1,810 $1,542 $509 $418 $352 $— $— $5,016 
Gross charge-offs three months ended March 31, 2026$— $3 $5 $2 $2 $1 $— $— $13 
Other:  
Current$88 $266 $134 $76 $48 $43 $1,658 $1 $2,314 
30-89 days past due2 2 2 1 1 1 27 1 37 
Accruing loans past due 90 days or more— — — — — — 10 — 10 
Nonaccrual1 1 1 — — 1 — — 4 
Total other$91 $269 $137 $77 $49 $45 $1,695 $2 $2,365 
Gross charge-offs three months ended March 31, 2026$— $6 $3 $1 $— $— $18 $— $28 
Total loans at March 31, 2026$6,527 $22,331 $13,548 $10,528 $13,371 $35,899 $36,175 $1,535 $139,914 
Total gross charge-offs for the three months ended
   March 31, 2026
$— $18 $23 $19 $15 $36 $41 $1 $153 
3. Loans and allowance for loan losses
The following table summarizes the loan grades applied at December 31, 2025 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)20252024202320222021PriorTotal
Commercial and industrial: 
 Pass$9,462 $6,640 $4,075 $4,086 $2,203 $5,059 $28,124 $95 $59,744 
 Criticized accrual216 337 479 390 116 348 1,355 36 3,277 
 Criticized nonaccrual8 49 72 65 25 155 136 17 527 
Total commercial and industrial$9,686 $7,026 $4,626 $4,541 $2,344 $5,562 $29,615 $148 $63,548 
Real estate: 
Commercial: 
 Pass$3,757 $400 $1,535 $1,681 $1,121 $8,970 $367 $— $17,831 
 Criticized accrual— 29 283 244 80 1,404 1 — 2,041 
 Criticized nonaccrual24 — 4 25 49 218 — — 320 
Total commercial real estate$3,781 $429 $1,822 $1,950 $1,250 $10,592 $368 $— $20,192 
Residential builder and developer: 
 Pass$9 $1 $2 $2 $— $5 $38 $— $57 
 Criticized accrual— — — 12 — — — — 12 
 Criticized nonaccrual— — — — — — — — — 
Total residential builder and developer$9 $1 $2 $14 $— $5 $38 $— $69 
Other commercial construction: 
 Pass$313 $221 $1,031 $606 $63 $198 $45 $— $2,477 
 Criticized accrual— 8 251 493 136 174 6 — 1,068 
 Criticized nonaccrual— — — 8 1 4 — — 13 
Total other commercial construction$313 $229 $1,282 $1,107 $200 $376 $51 $— $3,558 
3. Loans and allowance for loan losses
A summary of loans in accrual and nonaccrual status at December 31, 2025 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)20252024202320222021Prior
Residential real estate:
Current$3,769 $1,797 $1,188 $4,040 $3,433 $9,056 $127 $— $23,410 
30-89 days past due10 11 19 117 93 407 — — 657 
Accruing loans past due 90 days or more1 8 21 126 90 297 — — 543 
Nonaccrual— 4 3 40 19 197 1 — 264 
Total residential real estate$3,780 $1,820 $1,231 $4,323 $3,635 $9,957 $128 $— $24,874 
Consumer:
Home equity lines and loans:
Current$— $— $— $— $1 $76 $3,362 $1,251 $4,690 
30-89 days past due— — — — — 2 — 33 35 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual— — — — — 2 1 79 82 
Total home equity lines and loans$— $— $— $— $1 $80 $3,363 $1,363 $4,807 
Recreational finance:
Current$4,081 $3,052 $1,729 $1,673 $1,345 $2,066 $— $— $13,946 
30-89 days past due10 20 25 17 15 29 — — 116 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual2 5 6 4 4 9 — — 30 
Total recreational finance$4,093 $3,077 $1,760 $1,694 $1,364 $2,104 $— $— $14,092 
Automobile:
Current$1,933 $1,690 $561 $473 $336 $104 $— $— $5,097 
30-89 days past due8 17 13 10 7 4 — — 59 
Accruing loans past due 90 days or more— — — — — — — — — 
Nonaccrual2 3 1 2 2 1 — — 11 
Total automobile$1,943 $1,710 $575 $485 $345 $109 $— $— $5,167 
Other:
Current$312 $155 $89 $56 $42 $22 $1,680 $1 $2,357 
30-89 days past due3 2 1 1 — — 15 1 23 
Accruing loans past due 90 days or more— — — — — — 10 — 10 
Nonaccrual2 1 1 — — 1 — — 5 
Total other$317 $158 $91 $57 $42 $23 $1,705 $2 $2,395 
Total loans at December 31, 2025$23,922 $14,450 $11,389 $14,171 $9,181 $28,808 $35,268 $1,513 $138,702 
3. Loans and allowance for loan losses
Allowance for loan losses
For purposes of determining the level of the allowance for loan losses, the Company evaluates its portfolios by loan type. Changes in the allowance for loan losses and the reserve for unfunded credit commitments for the three-month periods ended March 31, 2026 and 2025 were as follows.
Allowance for Loan LossesReserve for Unfunded Credit Commitments (a)
Commercial
and Industrial		Real Estate   
(Dollars in millions)Commercial Residential Consumer Total
Three Months Ended March 31, 2026
Beginning balance$771 $472 $100 $773 $2,116 $80 
Provision for credit losses71 (34)(2)90 125 15 
Net charge-offs:
Charge-offs(46)(18)(1)(88)(153)— 
Recoveries21 1 2 24 48 — 
Net charge-offs(25)(17)1 (64)(105)— 
Ending balance$817 $421 $99 $799 $2,136 $95 
Three Months Ended March 31, 2025
Beginning balance$769 $599 $108 $708 $2,184 $60 
Provision for credit losses22 30 (3)81 130 — 
Net charge-offs:
Charge-offs(50)(22)(2)(86)(160)— 
Recoveries21 3 2 20 46 — 
Net charge-offs(29)(19)— (66)(114)— 
Ending balance$762 $610 $105 $723 $2,200 $60 
__________________________________________________________________________________
(a)Further information about unfunded credit commitments is included in note 13.
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 evaluated collectively, generally through the use of statistically developed credit models or other quantitative methodologies. The statistically developed models project principal balances over the remaining contractual lives of the loan portfolios and 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 March 31, 2026 and December 31, 2025, 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
3. Loans and allowance for loan losses
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.
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 periods ended March 31, 2026 and 2025 follows.
 Amortized Cost with AllowanceAmortized Cost without AllowanceTotalAmortized CostInterest Income Recognized
(Dollars in millions)March 31, 2026January 1, 2026Three Months
Ended
March 31, 2026
Commercial and industrial$466 $69 $535 $527 $7 
Real estate:     
Commercial201 93 294 320 1 
Residential builder and developer— — — — — 
Other commercial construction2 8 10 13 — 
Residential107 165 272 264 2 
Consumer:     
Home equity lines and loans41 43 84 82 2 
Recreational finance17 15 32 30 — 
Automobile7 2 9 11 — 
Other4 — 4 5 — 
Total$845 $395 $1,240 $1,252 $12 
March 31, 2025January 1, 2025Three Months
Ended
March 31, 2025
Commercial and industrial$522 $140 $662 $696 $6 
Real estate:
Commercial341 53 394 468 7 
Residential builder and developer1 — 1 2 — 
Other commercial construction23 5 28 66 — 
Residential135 149 284 279 3 
Consumer:
Home equity lines and loans36 42 78 81 2 
Recreational finance17 9 26 31 — 
Automobile8 3 11 12 — 
Other56 — 56 55 — 
Total$1,139 $401 $1,540 $1,690 $18 
3. Loans and allowance for loan losses
Loan modifications
The table that follows summarizes the Company’s loan modification activities to borrowers experiencing financial difficulty for the three-month periods ended March 31, 2026 and 2025.
Amortized Cost (a)
(Dollars in millions)Term ExtensionOther (b)Combination of Modification Types (c)Total (d) (e)Percent of Total Loan Class
Three Months Ended March 31, 2026
Commercial and industrial$78 $10 $35 $123 .19 %
Real estate:
Commercial261 8 74 343 1.71 
Residential builder and developer9 — — 9 7.86 
Other commercial construction61 — — 61 1.90 
Residential14 3 4 21 .09 
Consumer:
Home equity lines and loans— — 1 1 .01 
Recreational finance— — — — — 
Automobile— — — — — 
Other— — — — — 
Total$423 $21 $114 $558 .40 %
Three Months Ended March 31, 2025
Commercial and industrial$35 $2 $74 $111 .18 %
Real estate:
Commercial131 — — 131 .65 
Residential builder and developer— — — — — 
Other commercial construction225 — — 225 4.53 
Residential40 3 7 50 .22 
Consumer:
Home equity lines and loans— — — — — 
Recreational finance— — — — — 
Automobile— — — — — 
Other— — — — — 
Total$431 $5 $81 $517 .38 %
__________________________________________________________________________________
(a)As of the respective period end.
(b)Loan modifications comprised of payment deferrals or interest rate reductions.
(c)Primarily term extensions combined with payment deferrals or interest rate reductions.
(d)Includes approximately $14 million and $36 million of loans guaranteed by government-related entities (predominantly first lien residential mortgage loans) for the three-month periods ended March 31, 2026 and 2025, respectively.
(e)Excludes unfunded commitments to extend credit totaling $31 million and $9 million for the three-month periods ended March 31, 2026 and 2025, respectively.
3. Loans and allowance for loan losses
The financial effects of the modifications on the weighted-average remaining term of modified loans for the three-month periods ended March 31, 2026 and 2025 are summarized in the following table.
Three Months Ended March 31,
(In years)20262025
Increase to weighted-average remaining term
Commercial and industrial2.00.8
Real estate:
Commercial (a)1.00.8
Residential11.29.0
__________________________________________________________________________________
(a)Inclusive of residential builder and developer loans and other commercial construction loans.
The following table summarizes the payment status, at March 31, 2026 and 2025, of loans to borrowers experiencing financial difficulty that were modified during the twelve-month periods ended March 31, 2026 and 2025, respectively.
Amortized Cost (a)
(Dollars in millions)Current30-89 Days Past Due
Past Due 90 Days or More (b)
Total
Twelve Months Ended March 31, 2026
Commercial and industrial$198 $13 $14 $225 
Real estate:
Commercial626 31 16 673 
Residential builder and developer12 — — 12 
Other commercial construction120 32 — 152 
Residential (c)89 34 54 177 
Consumer:
Home equity lines and loans2 — — 2 
Recreational finance1 — — 1 
Automobile— — — — 
Other3 8 — 11 
Total$1,051 $118 $84 $1,253 
Twelve Months Ended March 31, 2025
Commercial and industrial$293 $3 $17 $313 
Real estate:
Commercial419 49 — 468 
Residential builder and developer1 — — 1 
Other commercial construction289 30 9 328 
Residential (c)104 35 41 180 
Consumer:
Home equity lines and loans1 — — 1 
Recreational finance1 — — 1 
Automobile— — — — 
Other— — — — 
Total$1,108 $117 $67 $1,292 
__________________________________________________________________________________
(a) At the respective period end.
(b) Predominantly loan modifications of term extensions or term extensions combined with interest rate reductions.
(c) Includes loans guaranteed by government-related entities classified as 30 to 89 days past due of $31 million and $29 million and as past due 90 days or more of $51 million and $34 million at March 31, 2026 and 2025, 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.