LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES

3 Months Ended

Mar. 31, 2026

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)	March 31, 2026		December 31, 2025

Loans held for sale	$	140	$	201
Commercial:
Commercial and industrial 1	$	18,263	$	18,111
Owner-occupied	9,323		9,274
Municipal	4,272		4,294

Total commercial	31,858		31,679
Commercial real estate:
Term	11,387		11,234
Construction and land development	2,271		2,162
Total commercial real estate	13,658		13,396
Consumer:
1-4 family residential	10,406		10,462
Home equity credit line	3,976		3,950
Construction and other consumer real estate	786		782
Bankcard and other revolving plans	515		515
Other	113		116
Total consumer	15,796		15,825

Total loans and leases	$	61,312	$	60,900

1 Effective March 31, 2026, balances previously reported as “Leasing” are now included in the “Commercial and industrial” loan segment. Prior period amounts have been reclassified to conform to the current presentation. At March 31, 2026 and December 31, 2025, the leasing portfolio totaled $374 million and $367 million, respectively.

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 $56 million and $61 million at March 31, 2026 and December 31, 2025, respectively. The amortized cost basis of the loans does not include accrued interest receivables of $267 million and $276 million at March 31, 2026 and December 31, 2025, respectively. These receivables are included in “Other assets” on the consolidated balance sheet.

Municipal loans generally include loans to state and local governments (“municipalities”), with the debt service being repaid from general funds or pledged revenues of the municipal entity, or to private commercial entities or 501(c)(3) not-for-profit entities utilizing a pass-through municipal entity to achieve favorable tax treatment.

Land acquisition and development loans included in the construction and land development loan portfolio were $247 million at March 31, 2026 and $257 million at December 31, 2025.

Loans with a carrying value of $43.4 billion at March 31, 2026 and $43.2 billion at December 31, 2025 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 March 31,
(In millions)	2026		2025

Loans added to held for sale	$	562	$	175
Loans sold from held for sale	563		139

From time to time, we retain continuing involvement in loans sold through servicing rights or guarantees. At March 31, 2026, the principal balance of loans sold for which servicing was retained was approximately $771 million, compared with $679 million at December 31, 2025. Income generated from sold loans, excluding servicing income, totaled $7 million for the three months ended March 31, 2026, and $2 million for the corresponding period in 2025.

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 2025 Form 10-K.

The ACL on AFS and HTM debt securities is estimated separately from the ACL on loans. For HTM debt 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 2025 Form 10-K.

Changes in the ACL are summarized as follows:


	Three Months Ended March 31, 2026
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan losses
Balance at beginning of period	$	391	$	185	$	102	$	678
Provision for loan losses	5		(25)		13		(7)
Gross loan and lease charge-offs	7		—		4		11
Recoveries	5		1		1		7
Net loan and lease charge-offs (recoveries)	2		(1)		3		4
Balance at end of period	$	394	$	161	$	112	$	667
Reserve for unfunded lending commitments


Balance at beginning of period	$	19	$	19	$	8	$	46
Provision for unfunded lending commitments	(1)		1		—		—
Balance at end of period	$	18	$	20	$	8	$	46
Total allowance for credit losses at end of period
Allowance for loan losses	$	394	$	161	$	112	$	667
Reserve for unfunded lending commitments	18		20		8		46
Total allowance for credit losses	$	412	$	181	$	120	$	713


	Three Months Ended March 31, 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	41		(29)		5		17
Gross loan and lease charge-offs	19		—		5		24
Recoveries	7		—		1		8
Net loan and lease charge-offs (recoveries)	12		—		4		16
Balance at end of period	$	337	$	271	$	89	$	697
Reserve for unfunded lending commitments


Balance at beginning of period	$	26	$	11	$	8	$	45
Provision for unfunded lending commitments	2		(1)		—		1
Balance at end of period	$	28	$	10	$	8	$	46
Total allowance for credit losses at end of period
Allowance for loan losses	$	337	$	271	$	89	$	697
Reserve for unfunded lending commitments	28		10		8		46
Total allowance for credit losses	$	365	$	281	$	97	$	743

Nonaccrual Loans

Loans are generally placed on nonaccrual when the full collection of principal and interest is not expected, or when the loan is 90 days or more past due on principal or interest, unless the loan is both well secured and in the process of collection. The decision to place a loan on nonaccrual considers factors such as delinquency status, collateral valuation, the financial condition of the borrower or guarantor, bankruptcy proceedings, pending litigation, and any other indicators that create uncertainty regarding the full and timely collection of principal and interest.

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

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


	March 31, 2026
	Amortized cost basis				Total amortized cost basis
(In millions)	with no allowance 1		with allowance				Related allowance


Commercial:
Commercial and industrial	$	38	$	45	$	83	$	20
Owner-occupied	18		32		50		2
Municipal	—		2		2		—

Total commercial	56		79		135		22
Commercial real estate:
Term	23		19		42		1

Total commercial real estate	23		19		42		1
Consumer:
1-4 family residential	14		53		67		6
Home equity credit line	—		33		33		9

Bankcard and other revolving plans	—		1		1		1
Other	—		1		1		—
Total consumer	14		88		102		16
Total	$	93	$	186	$	279	$	39


	December 31, 2025
	Amortized cost basis				Total amortized cost basis
(In millions)	with no allowance 1		with allowance				Related allowance



Commercial:
Commercial and industrial	$	44	$	49	$	93	$	19
Owner-occupied	33		18		51		1
Municipal	—		2		2		—
Leasing	—		—		—		—
Total commercial	77		69		146		20
Commercial real estate:
Term	4		68		72		2
Construction and land development	—		1		1		—
Total commercial real estate	4		69		73		2
Consumer:
1-4 family residential	14		51		65		5
Home equity credit line	—		30		30		8

Bankcard and other revolving plans	—		1		1		1

Total consumer	14		82		96		14
Total	$	95	$	220	$	315	$	36

1 Nonaccrual loans with no allowance primarily consist of loans for which a specific reserve is estimated based on the fair value of the collateral. As a result, we generally charge off the portion of the loan balance that exceeds that fair value, and no reserve or related allowance is established for these loans.

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 nonaccrual 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 applied to reduce the outstanding principal balance and are not recognized as interest income. 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 months ended March 31, 2026 and 2025, 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 March 31,
(In millions)	2026		2025

Commercial	$	3	$	4
Commercial real estate	1		1
Consumer	1		1
Total	$	5	$	6

Past Due Loans

Closed-end loans with monthly scheduled payments are reported as past due when the borrower is delinquent for two or more monthly payments. Similarly, open-end credit arrangements, including bankcard and other revolving credit plans, are reported as past due when the minimum required payment has not been received for two or more billing cycles. Other multi-payment obligations (e.g., quarterly or semi-annual), as well as single payment and demand notes, are reported as past due when either principal or interest remains due and unpaid 30 days or more.

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


	March 31, 2026
(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	$	18,201	$	36	$	26	$	62	$	18,263	$	2	$	56
Owner-occupied	9,282		20		21		41		9,323		—		24
Municipal	4,272		—		—		—		4,272		—		2

Total commercial	31,755		56		47		103		31,858		2		82
Commercial real estate:
Term	11,360		6		21		27		11,387		—		20
Construction and land development	2,271		—		—		—		2,271		—		—
Total commercial real estate	13,631		6		21		27		13,658		—		20
Consumer:
1-4 family residential	10,354		26		26		52		10,406		—		29
Home equity credit line	3,953		14		9		23		3,976		—		20
Construction and other consumer real estate	786		—		—		—		786		—		—
Bankcard and other revolving plans	510		3		2		5		515		1		1
Other	112		1		—		1		113		—		—
Total consumer	15,715		44		37		81		15,796		1		50
Total	$	61,101	$	106	$	105	$	211	$	61,312	$	3	$	152


	December 31, 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	$	18,025	$	75	$	11	$	86	$	18,111	$	2	$	73
Owner-occupied	9,235		11		28		39		9,274		1		17
Municipal	4,293		1		—		1		4,294		—		2

Total commercial	31,553		87		39		126		31,679		3		92
Commercial real estate:
Term	11,211		1		22		23		11,234		1		50
Construction and land development	2,161		—		1		1		2,162		—		—
Total commercial real estate	13,372		1		23		24		13,396		1		50
Consumer:
1-4 family residential	10,411		10		41		51		10,462		—		21
Home equity credit line	3,920		19		11		30		3,950		—		15
Construction and other consumer real estate	782		—		—		—		782		—		—
Bankcard and other revolving plans	510		3		2		5		515		1		1
Other	115		1		—		1		116		—		—
Total consumer	15,738		33		54		87		15,825		1		37
Total	$	60,663	$	121	$	116	$	237	$	60,900	$	5	$	179

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 nonaccrual and past due criteria, we evaluate loans using internal risk-grading systems that vary based on the size and type of credit risk exposure. Loans are assigned internal risk grades of Pass, Special Mention, Substandard, and Doubtful, which are aligned with published regulatory risk classifications.

The definitions of these risk grades are summarized as follows:

•Pass — Pass-rated assets are considered higher quality and do not meet the criteria for any of the other risk categories. The likelihood of loss is considered low.

•Special Mention — Special Mention assets have potential weaknesses that warrant management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the borrower's repayment capacity or our credit position at a future date.

•Substandard — Substandard assets are inadequately protected by the borrower's current net worth and repayment capacity or by the collateral pledged, if any. These assets have well-defined weaknesses and are characterized by the distinct possibility that a loss may be sustained if the deficiencies are not corrected.

•Doubtful — Doubtful assets exhibit all of the weaknesses inherent in Substandard assets, with the added characteristic that collection or liquidation in full is highly questionable and improbable.

There were no loans classified as Doubtful at March 31, 2026 or December 31, 2025.

For commercial and CRE loans with commitments greater than $1 million, we assign either one of several grades within the Pass classification or one of the previously described regulatory risk classifications. Internal risk grades for these loans are reviewed at least quarterly, or more frequently when information becomes available that may affect the credit risk of the loan.

For consumer loans and for commercial and CRE loans with commitments of $1 million or less, internal risk grades generally consistent with the classifications described above are assigned using automated processes that incorporate refreshed credit scores, payment performance, and other relevant risk indicators. These loans are typically assigned a Pass, Special Mention, or Substandard grade and are reviewed as information is identified that might warrant a change in risk grade.

The following schedules present the amortized cost of loans and leases by vintage year, defined as the year of origination or, when applicable, the year of the most recent renewal, extension, or significant modification that resets the loan’s vintage. As a result, certain loans presented in the current‑year vintage were originated in prior periods and do not represent new credit originations. The schedules also present balances by the credit quality classifications used by management in monitoring portfolio risk.


	March 31, 2026
	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)	2026		2025		2024		2023		2022		Prior						Total
Commercial:
Commercial and industrial
Pass	$	871	$	3,487	$	1,873	$	1,030	$	827	$	892	$	8,193	$	154	$	17,327
Special Mention	—		13		38		49		2		58		46		1		207
Accruing Substandard	52		120		111		85		48		41		180		9		646
Nonaccrual	14		2		4		3		21		5		14		20		83
Total commercial and industrial	937		3,622		2,026		1,167		898		996		8,433		184		18,263
Owner-occupied
Pass	391		1,113		1,115		697		1,366		3,892		234		63		8,871
Special Mention	—		7		16		1		20		20		1		—		65
Accruing Substandard	5		5		49		12		104		135		23		4		337
Nonaccrual	—		6		2		2		6		28		6		—		50
Total owner-occupied	396		1,131		1,182		712		1,496		4,075		264		67		9,323
Municipal
Pass	115		488		632		402		724		1,865		6		35		4,267
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		3		—		—		—		—		—		—		3
Nonaccrual	—		—		—		—		—		2		—		—		2
Total municipal	115		491		632		402		724		1,867		6		35		4,272






Total commercial	1,448		5,244		3,840		2,281		3,118		6,938		8,703		286		31,858
Commercial real estate:
Term
Pass	615		2,456		1,311		1,132		1,612		2,506		364		138		10,134
Special Mention	—		9		21		87		80		15		—		—		212
Accruing Substandard	132		249		35		137		338		92		1		15		999
Nonaccrual	—		20		—		16		1		5		—		—		42
Total term	747		2,734		1,367		1,372		2,031		2,618		365		153		11,387
Construction and land development
Pass	84		577		471		241		64		2		698		59		2,196
Special Mention	—		—		9		—		—		—		—		—		9
Accruing Substandard	—		32		24		6		—		—		4		—		66
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and land development	84		609		504		247		64		2		702		59		2,271
Total commercial real estate	831		3,343		1,871		1,619		2,095		2,620		1,067		212		13,658


	March 31, 2026
	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)	2026		2025		2024		2023		2022		Prior						Total














Consumer:
1-4 family residential
Pass	$	346	$	808	$	716	$	806	$	3,135	$	4,525	$	—	$	—	$	10,336
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		2		1		—		—		3
Nonaccrual	—		1		3		6		14		43		—		—		67
Total 1-4 family residential	346		809		719		812		3,151		4,569		—		—		10,406
Home equity credit line
Pass	—		—		—		—		—		—		3,818		116		3,934
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		9		—		9
Nonaccrual	—		—		—		—		—		—		28		5		33
Total home equity credit line	—		—		—		—		—		—		3,855		121		3,976
Construction and other consumer real estate
Pass	21		340		318		56		48		3		—		—		786
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and other consumer real estate	21		340		318		56		48		3		—		—		786
Bankcard and other revolving plans
Pass	—		—		—		—		—		—		511		1		512
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		2		—		2
Nonaccrual	—		—		—		—		—		—		1		—		1
Total bankcard and other revolving plans	—		—		—		—		—		—		514		1		515
Other consumer
Pass	18		44		23		14		9		4		—		—		112
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		1		—		—		—		—		1
Total other consumer	18		44		23		15		9		4		—		—		113
Total consumer	385		1,193		1,060		883		3,208		4,576		4,369		122		15,796
Total loans	$	2,664	$	9,780	$	6,771	$	4,783	$	8,421	$	14,134	$	14,139	$	620	$	61,312


	December 31, 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		2020		Prior						Total
Commercial:
Commercial and industrial
Pass	$	3,746	$	2,058	$	1,143	$	898	$	350	$	698	$	8,141	$	197	$	17,231
Special Mention	14		29		13		16		28		30		99		1		230
Accruing Substandard	60		140		82		41		18		30		177		9		557
Nonaccrual	4		5		4		37		3		3		14		23		93
Total commercial and industrial	3,824		2,232		1,242		992		399		761		8,431		230		18,111
Owner-occupied
Pass	1,112		1,234		727		1,414		1,492		2,515		227		67		8,788
Special Mention	3		28		—		9		9		30		1		—		80
Accruing Substandard	4		37		15		111		71		89		24		4		355
Nonaccrual	6		8		2		6		3		19		7		—		51
Total owner-occupied	1,125		1,307		744		1,540		1,575		2,653		259		71		9,274
Municipal
Pass	542		614		409		745		849		1,070		1		41		4,271
Special Mention	—		3		—		—		—		—		—		—		3
Accruing Substandard	—		—		—		—		—		18		—		—		18
Nonaccrual	—		—		—		—		2		—		—		—		2
Total municipal	542		617		409		745		851		1,088		1		41		4,294






Total commercial	5,491		4,156		2,395		3,277		2,825		4,502		8,691		342		31,679
Commercial real estate:
Term
Pass	2,643		1,223		1,167		1,741		956		1,747		318		140		9,935
Special Mention	51		—		35		71		—		1		—		—		158
Accruing Substandard	328		43		142		426		53		36		26		15		1,069
Nonaccrual	21		—		16		1		—		5		—		29		72
Total term	3,043		1,266		1,360		2,239		1,009		1,789		344		184		11,234
Construction and land development
Pass	446		540		375		47		1		1		624		49		2,083
Special Mention	—		8		5		—		—		—		—		—		13
Accruing Substandard	53		6		—		—		—		—		6		—		65
Nonaccrual	—		—		1		—		—		—		—		—		1
Total construction and land development	499		554		381		47		1		1		630		49		2,162
Total commercial real estate	3,542		1,820		1,741		2,286		1,010		1,790		974		233		13,396


	December 31, 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		2020		Prior						Total














Consumer:
1-4 family residential
Pass	$	917	$	847	$	867	$	3,144	$	1,808	$	2,812	$	—	$	—	$	10,395
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		1		—		—		—		1		—		—		2
Nonaccrual	1		4		5		15		13		27		—		—		65
Total 1-4 family residential	918		852		872		3,159		1,821		2,840		—		—		10,462
Home equity credit line
Pass	—		—		—		—		—		—		3,799		111		3,910
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		10		—		10
Nonaccrual	—		—		—		—		—		—		26		4		30
Total home equity credit line	—		—		—		—		—		—		3,835		115		3,950
Construction and other consumer real estate
Pass	246		351		87		91		5		2		—		—		782
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and other consumer real estate	246		351		87		91		5		2		—		—		782
Bankcard and other revolving plans
Pass	—		—		—		—		—		—		511		1		512
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		2		—		2
Nonaccrual	—		—		—		—		—		—		1		—		1
Total bankcard and other revolving plans	—		—		—		—		—		—		514		1		515
Other consumer
Pass	55		26		19		11		4		1		—		—		116
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total other consumer	55		26		19		11		4		1		—		—		116
Total consumer	1,219		1,229		978		3,261		1,830		2,843		4,349		116		15,825
Total loans	$	10,252	$	7,205	$	5,114	$	8,824	$	5,665	$	9,135	$	14,014	$	691	$	60,900

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


	Three Months Ended March 31, 2026
	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)	2026		2025		2024		2023		2022		Prior						Total
Commercial:
Commercial and industrial	$	—	$	4	$	—	$	—	$	—	$	1	$	2	$	—	$	7








Consumer:



Bankcard and other revolving plans	—		—		—		—		—		—		3		—		3
Other	—		—		—		—		—		1		—		—		1
Total consumer	—		—		—		—		—		1		3		—		4
Total gross charge-offs	$	—	$	4	$	—	$	—	$	—	$	2	$	5	$	—	$	11


	Three Months Ended March 31, 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	$	10	$	7	$	—	$	19








Consumer:
1-4 family residential	—		—		—		—		1		1		—		—		2


Bankcard and other revolving plans	—		—		—		—		—		—		2		—		2
Other	—		—		—		—		—		—		1		—		1
Total consumer	—		—		—		—		1		1		3		—		5
Total gross charge-offs	$	—	$	—	$	1	$	—	$	2	$	11	$	10	$	—	$	24

Loan Modifications

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

We generally consider a borrower to be experiencing financial difficulty when available information indicates the borrower is unlikely to meet its contractual obligations without a modification of the loan terms. Indicators include actual or probable payment default; bankruptcy or the likelihood thereof; substantial doubt about the borrower’s ability to continue as a going concern; insufficient expected cash flows to service debt; or an inability to obtain financing at market terms. A borrower is also considered to be experiencing financial difficulty when repayment is dependent on support from a sponsor or guarantor. Additional indicators may include liquidity constraints, declining collateral values, failure to meet loan covenants, adverse industry changes, and sustained deterioration in financial performance.

A modified loan on nonaccrual will generally remain on nonaccrual until the borrower has demonstrated the ability to perform under the modified terms 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 considered 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.

We monitor the performance of all modified loans on an ongoing basis in accordance with their modified terms. Modified loans are considered to be in default if they become past due after modification. Commercial loans are considered to be in default when they are 90 days or more past due, while consumer loans are considered to be in default when they are 60 days or more past due. For the three months ended March 31, 2026 and March 31, 2025, there were no modified loans to borrowers experiencing financial difficulty that defaulted during the period and were modified within the previous 12 months preceding the default.

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 March 31, 2026
	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	$	—	$	62	$	—	$	—	$	3	$	65	0.4	%
Owner-occupied	—		19		—		—		—		19		0.2

Total commercial	—		81		—		—		3		84		0.3
Commercial real estate:
Term	—		139		—		—		—		139		1.2


Consumer:
1-4 family residential	—		—		—		—		2		2		—





Total	$	—	$	220	$	—	$	—	$	5	$	225	0.4


	Three Months Ended March 31, 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	$	—	$	35	$	—	$	—	$	—	$	35	0.2	%
Owner-occupied	—		5		—		—		—		5		0.1

Total commercial	—		40		—		—		—		40		0.1
Commercial real estate:
Term	—		211		—		8		—		219		2.0
Construction and land development	—		31		—		—		—		31		1.1
Total commercial real estate	—		242		—		8		—		250		1.8
Consumer:
1-4 family residential	—		—		—		—		10		10		0.1




Total consumer	—		—		—		—		10		10		0.1
Total	$	—	$	282	$	—	$	8	$	10	$	300	0.5

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 $18 million and
$8 million at March 31, 2026 and March 31, 2025, respectively.

3 Amounts less than 0.05% are rounded to zero.

The following schedule presents the financial impact of loan modifications to borrowers experiencing financial difficulty:


	Three Months Ended March 31, 2026
	Weighted-average interest rate reduction (in percentage points)		Weighted-average term extension (in months)
Commercial:
Commercial and industrial	1.9	%	18
Owner-occupied	—		6


Total commercial	1.9		16
Commercial real estate:
Term	—		7


Consumer:1
1-4 family residential	3.1		34





Total weighted average financial impact	2.7		11


	Three Months Ended March 31, 2025
	Weighted-average interest rate reduction (in percentage points)		Weighted-average term extension (in months)
Commercial:
Commercial and industrial	0.5	%	8
Owner-occupied	—		83


Total commercial	0.5		18
Commercial real estate:
Term	—		6
Construction and land development	—		12
Total commercial real estate	—		7
Consumer:
1-4 family residential	—		3





Total weighted average financial impact	0.5		8

Loan modifications to borrowers experiencing financial difficulty during the three months ended March 31, 2026, resulted in no principal forgiveness across the total loan portfolio, compared with principal forgiveness of less than $1 million during the corresponding period in 2025.

The following schedule presents the aging of loans to borrowers experiencing financial difficulty that were modified on or after April 1, 2025 through March 31, 2026, categorized by portfolio segment and loan class:


	March 31, 2026
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total amortized cost of loans

Commercial:
Commercial and industrial	$	177	$	15	$	3	$	18	$	195
Owner-occupied	22		—		6		6		28


Total commercial	199		15		9		24		223
Commercial real estate:
Term	374		—		—		—		374
Construction and land development	5		—		—		—		5
Total commercial real estate	379		—		—		—		379
Consumer:
1-4 family residential	5		—		—		—		5
Home equity credit line	1		—		—		—		1



Total consumer	6		—		—		—		6
Total	$	584	$	15	$	9	$	24	$	608

The following schedule presents the aging of loans to borrowers experiencing financial difficulty that were modified on or after April 1, 2024 through March 31, 2025, categorized by portfolio segment and loan class:


	March 31, 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	$	84	$	2	$	—	$	2	$	86
Owner-occupied	17		—		—		—		17
Municipal	—		—		8		8		8

Total commercial	101		2		8		10		111
Commercial real estate:
Term	339		8		—		8		347
Construction and land development	36		12		—		12		48
Total commercial real estate	375		20		—		20		395
Consumer:
1-4 family residential	14		—		—		—		14
Home equity credit line	1		—		—		—		1

Bankcard and other revolving plans	1		—		—		—		1

Total consumer	16		—		—		—		16
Total	$	492	$	22	$	8	$	30	$	522

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 difficulty 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:


	March 31, 2026
(Dollar amounts in millions)	Amortized cost		Major types of collateral	Weighted average LTV 1
Commercial:
Commercial and industrial	$	2	Semi-trailers and semi-tractors	82%
Owner-occupied	16		Agriculture production and industrial buildings	68%
Municipal	2		Multifamily apartments	81%


Commercial real estate:
Term	41		Office building	57%


Consumer:
1-4 family residential	3		Single family residential	53%


Total	$	64


	December 31, 2025
(Dollar amounts in millions)	Amortized cost		Major types of collateral	Weighted average LTV 1
Commercial:
Commercial and industrial	$	3	Single family residential	71%
Owner occupied	23		Agriculture production and industrial buildings	67%
Municipal	2		Multifamily apartments	93%


Commercial real estate:
Term	37		Office building	98%


Consumer:
1-4 family residential	5		Single family residential	62%





Total	$	70

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 totaled approximately $1 million at both March 31, 2026 and December 31, 2025. The amortized cost basis of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure was $17 million and $20 million at both March 31, 2026 and December 31, 2025, respectively.