v3.26.1
Loans and Allowance for Credit Losses (Tables)
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Composition of Loan Portfolio
The composition of the loan portfolio, by class and underlying specific portfolio type, was as follows:
June 30, 2026December 31, 2025
(Dollars in Millions)AmountPercent of Total AmountPercent of Total
Commercial
Commercial$155,160 37.8 %$143,725 36.7 %
Lease financing4,495 1.1 4,436 1.2 
Total commercial159,655 38.9 148,161 37.9 
Commercial Real Estate
Commercial mortgages42,700 10.4 39,476 10.1 
Construction and development9,648 2.4 9,444 2.4 
Total commercial real estate52,348 12.8 48,920 12.5 
Residential Mortgages
Residential mortgages112,630 27.5 110,788 28.3 
Home equity loans, first liens4,681 1.1 5,097 1.3 
Total residential mortgages117,311 28.6 115,885 29.6 
Credit Card39,079 9.5 38,031 9.7 
Other Retail
Retail leasing4,087 1.0 3,524 .9 
Home equity and second mortgages14,131 3.4 14,025 3.6 
Revolving credit5,409 1.3 4,561 1.2 
Installment15,032 3.7 14,653 3.7 
Automobile3,248 .8 3,575 .9 
Total other retail41,907 10.2 40,338 10.3 
Total loans$410,300 100.0 %$391,335 100.0 %
Activity in Allowance for Credit Losses by Portfolio Class
Activity in the allowance for credit losses by portfolio class was as follows:
Three Months Ended June 30
(Dollars in Millions)		Commercial
Commercial
Real Estate
Residential
Mortgages
Credit Card
Other Retail
Total Loans
2026
Balance at beginning of period$1,825 $1,249 $725 $3,343 $835 $7,977 
Add
Provision for credit losses63 (6)9 397 75 538 
Deduct
Loans charged-off122 20 5 446 83 676 
Less recoveries of loans charged-off(26)(7)(5)(79)(23)(140)
Net loan charge-offs (recoveries)96 13 — 367 60 536 
Balance at end of period$1,792 $1,230 $734 $3,373 $850 $7,979 
2025
Balance at beginning of period$1,694 $1,432 $789 $3,162 $838 $7,915 
Add
Provision for credit losses87 9 (33)406 32 501 
Deduct
Loans charged-off86 74 4 442 77 683 
Less recoveries of loans charged-off(21)(17)(5)(62)(24)(129)
Net loan charge-offs (recoveries)65 57 (1)380 53 554 
Balance at end of period$1,716 $1,384 $757 $3,188 $817 $7,862 
Six Months Ended June 30
(Dollars in Millions)		Commercial
Commercial
Real Estate
Residential
Mortgages
Credit Card
Other Retail
Total Loans
2026
Balance at beginning of period$1,806 $1,288 $747 $3,274 $832 $7,947 
Add
Provision for credit losses203 (53)(14)831 147 1,114 
Deduct
Loans charged-off266 24 8 885 176 1,359 
Less recoveries of loans charged-off(49)(19)(9)(153)(47)(277)
Net loan charge-offs (recoveries)217 5 (1)732 129 1,082 
Balance at end of period$1,792 $1,230 $734 $3,373 $850 $7,979 
2025
Balance at beginning of period$1,671 $1,508 $783 $3,144 $819 $7,925 
Add
Provision for credit losses211 (71)(27)811 114 1,038 
Deduct
Loans charged-off205 99 8 896 165 1,373 
Less recoveries of loans charged-off(39)(46)(9)(129)(49)(272)
Net loan charge-offs (recoveries)166 53 (1)767 116 1,101 
Balance at end of period$1,716 $1,384 $757 $3,188 $817 $7,862 
Credit Quality Indicators
The following table provides a summary of loans charged-off by portfolio class and year of origination:
Three Months Ended June 30
(Dollars in Millions)		Commercial
Commercial
Real Estate
Residential
Mortgages
Credit Card(a)
Other RetailTotal Loans
2026
Originated in 2026$21 $— $— $— $1 $22 
Originated in 20254 — — — 9 13 
Originated in 202448 1 — — 10 59 
Originated in 202325 18 — — 14 57 
Originated in 20226 1 1 — 10 18 
Originated prior to 202212 — 4 — 11 27 
Revolving6 — — 446 28 480 
Total charge-offs$122 $20 $5 $446 $83 $676 
2025
Originated in 2025$10 $— $— $— $— $10 
Originated in 202427 25 — — 12 64 
Originated in 20239 7 — — 14 30 
Originated in 20227 35 1 — 11 54 
Originated in 20215 — 1 — 10 16 
Originated prior to 202116 1 2 — 8 27 
Revolving12 6 — 442 22 482 
Total charge-offs$86 $74 $4 $442 $77 $683 
Six Months Ended June 30
(Dollars in Millions)		Commercial
Commercial
Real Estate
Residential
Mortgages
Credit Card(a)
Other RetailTotal Loans
2026
Originated in 2026$24 $— $— $— $1 $25 
Originated in 202517 — — — 17 34 
Originated in 2024108 4 — — 20 132 
Originated in 202370 18 — — 30 118 
Originated in 202215 2 3 — 24 44 
Originated prior to 202222 — 5 — 28 55 
Revolving10 — — 885 56 951 
Total charge-offs$266 $24 $8 $885 $176 $1,359 
2025
Originated in 2025$20 $— $— $— $— $20 
Originated in 202458 31 — — 23 112 
Originated in 202338 21 — — 29 88 
Originated in 202239 39 1 — 24 103 
Originated in 20219 1 1 — 25 36 
Originated prior to 202125 1 6 — 17 49 
Revolving16 6 — 896 47 965 
Total charge-offs$205 $99 $8 $896 $165 $1,373 
Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended. Predominantly all current year and near term loan origination years for gross charge-offs relate to existing loans that have had recent maturity date, pricing or commitment amount amendments.
(a)     Predominantly all credit card loans are considered revolving loans. Includes an immaterial amount of charge-offs related to revolving converted to term loans.
The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:
June 30, 2026December 31, 2025
CriticizedCriticized
(Dollars in Millions)Pass
Special
Mention
Classified(a)
Total
Criticized
TotalPass
Special
Mention
Classified(a)
Total
Criticized
Total
Commercial
Originated in 2026$39,772 $472 $475 $947 $40,719 $— $— $— $— $— 
Originated in 202556,378 224 527 751 57,129 72,416 219 762 981 73,397 
Originated in 202417,410 188 353 541 17,951 24,344 168 637 805 25,149 
Originated in 20235,084 8 88 96 5,180 7,532 47 278 325 7,857 
Originated in 20225,474 89 90 179 5,653 10,045 23 287 310 10,355 
Originated prior to 20225,888 2 38 40 5,928 6,934 23 84 107 7,041 
Revolving(b)
26,329 398 368 766 27,095 23,494 484 384 868 24,362 
Total commercial156,335 1,381 1,939 3,320 159,655 144,765 964 2,432 3,396 148,161 
Commercial real estate
Originated in 202610,513 73 586 659 11,172 — — — — — 
Originated in 202514,113 114 590 704 14,817 15,466 143 981 1,124 16,590 
Originated in 20245,387 85 286 371 5,758 6,368 88 338 426 6,794 
Originated in 20232,245 51 219 270 2,515 3,232 65 444 509 3,741 
Originated in 20223,770 81 627 708 4,478 5,211 242 613 855 6,066 
Originated prior to 202210,741 203 408 611 11,352 12,784 301 558 859 13,643 
Revolving2,178 70 1 71 2,249 1,991 82 7 89 2,080 
Revolving converted to term6 — 1 1 7 5 — 1 1 6 
Total commercial real estate48,953 677 2,718 3,395 52,348 45,057 921 2,942 3,863 48,920 
Residential mortgages(c)
Originated in 20269,267 — — — 9,267 — — — — — 
Originated in 20259,836 — 2 2 9,838 11,917 — 1 1 11,918 
Originated in 20245,790 — 14 14 5,804 7,249 — 14 14 7,263 
Originated in 20237,028 — 32 32 7,060 7,758 — 35 35 7,793 
Originated in 202223,803 — 69 69 23,872 24,620 — 61 61 24,681 
Originated prior to 202261,170 — 300 300 61,470 63,891 — 339 339 64,230 
Total residential mortgages116,894 — 417 417 117,311 115,435 — 450 450 115,885 
Credit card(d)
38,638 — 441 441 39,079 37,548 — 483 483 38,031 
Other retail
Originated in 20264,353 — 1 1 4,354 — — — — — 
Originated in 20255,466 — 5 5 5,471 6,290 — 4 4 6,294 
Originated in 20244,401 — 11 11 4,412 5,075 — 10 10 5,085 
Originated in 20232,224 — 10 10 2,234 2,720 — 11 11 2,731 
Originated in 20222,035 — 9 9 2,044 2,571 — 11 11 2,582 
Originated prior to 20226,567 — 22 22 6,589 7,875 — 26 26 7,901 
Revolving15,794 — 118 118 15,912 14,780 — 123 123 14,903 
Revolving converted to term853 — 38 38 891 799 — 43 43 842 
Total other retail41,693 — 214 214 41,907 40,110 — 228 228 40,338 
Total loans$402,513 $2,058 $5,729 $7,787 $410,300 $382,915 $1,885 $6,535 $8,420 $391,335 
Total outstanding commitments$862,862 $3,387 $7,070 $10,457 $873,319 $828,343 $3,094 $8,348 $11,442 $839,785 
Note: Year of origination is based on the origination date of a loan, or for existing loans the date when the maturity date, pricing or commitment amount is amended. Predominately all current year and nearer term loan origination years for criticized loans relate to existing loans that have had recent maturity date, pricing or commitment amount amendments.
(a)Classified rating on consumer loans primarily based on delinquency status.
(b)Includes an immaterial amount of revolving converted to term loans.
(c)At June 30, 2026, $3.9 billion of GNMA loans 90 days or more past due and $976 million of modified GNMA loans whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs were classified with a pass rating, compared with $3.5 billion and $1.3 billion at December 31, 2025, respectively.
(d)Predominately all credit card loans are considered revolving loans. Includes an immaterial amount of revolving converted to term loans.
Loans by Portfolio Class, Including Delinquency Status
The following table provides a summary of loans by portfolio class, including the delinquency status of those that continue to accrue interest, and those that are nonperforming:
Accruing
(Dollars in Millions)Current
30-89 Days
Past Due
90 Days or
More Past Due
Nonperforming(b)
Total
June 30, 2026
Commercial$159,030 $211 $12 $402 $159,655 
Commercial real estate51,707 68 5 568 52,348 
Residential mortgages(a)
116,724 180 236 171 117,311 
Credit card38,179 459 441 — 39,079 
Other retail41,541 163 41 162 41,907 
Total loans$407,181 $1,081 $735 $1,303 $410,300 
December 31, 2025
Commercial$147,077 $347 $20 $717 $148,161 
Commercial real estate48,340 49 13 518 48,920 
Residential mortgages(a)
115,235 214 285 151 115,885 
Credit card37,037 511 483 — 38,031 
Other retail39,938 187 52 161 40,338 
Total loans$387,627 $1,308 $853 $1,547 $391,335 
(a)At June 30, 2026, $374 million of loans 30–89 days past due and $3.9 billion of loans 90 days or more past due purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $606 million and $3.5 billion at December 31, 2025, respectively.
(b)The Company recognized interest income on nonperforming loans of $4 million and $6 million for the three months ended June 30, 2026 and 2025, respectively, and $8 million and $10 million for the six months ended June 30, 2026 and 2025, respectively.
Loans Modified
The following table provides a summary of period-end balances of loans modified during the periods presented, by portfolio class and modification granted:
Three Months Ended June 30
(Dollars in Millions)
Interest Rate
Reduction
Payment
Delay
Term
Extension
Multiple
Modifications(a)
Total
Modifications
Percent of
Class Total
2026
Commercial$— $— $131 $— $131 .1 %
Commercial real estate— — 276 48 324 .6 
Residential mortgages(b)
— 23 9 4 36 — 
Credit card152 — — — 152 .4 
Other retail2 1 22 1 26 .1 
Total loans, excluding loans purchased from GNMA mortgage pools154 24 438 53 669 .2 
Loans purchased from GNMA mortgage pools(b)
— 92120217429.4 
Total loans$154 $116 $558 $270 $1,098 .3 %
2025
Commercial$— $— $158 $69 $227 .2 %
Commercial real estate— — 283 — 283 .6 
Residential mortgages(b)
— 77 3 12 92 .1 
Credit card147 — — — 147 .4 
Other retail2 4 25 3 34 .1 
Total loans, excluding loans purchased from GNMA mortgage pools149 81 469 84 783 .2 
Loans purchased from GNMA mortgage pools(b)
— 375 138 172 685 .6 
Total loans$149 $456 $607 $256 $1,468 .4 %
Six Months Ended June 30
(Dollars in Millions)		Interest Rate Reduction
Payment
Delay
Term
Extension
Multiple
Modifications(a)
Total
Modifications
Percent of
Class Total
2026
Commercial$— $— $299 $— $299 .2 %
Commercial real estate— — 587 48 635 1.2 
Residential mortgages(b)
— 45 16 18 79 .1 
Credit card303 1 — — 304 .8 
Other retail3 1 45 1 50 .1 
Total loans, excluding loans purchased from GNMA mortgage pools306 47 947 67 1,367 .3 
Loans purchased from GNMA mortgage pools(b)
1 186 203 270 660 .6 
Total loans$307 $233 $1,150 $337 $2,027 .5 %
2025
Commercial$— $— $260 $87 $347 .2 %
Commercial real estate— — 451 2 453 .9 
Residential mortgages(b)
— 293 5 17 315 .3 
Credit card287 5 — — 292 .8 
Other retail4 5 50 7 66 .2 
Total loans, excluding loans purchased from GNMA mortgage pools291 303 766 113 1,473 .4 
Loans purchased from GNMA mortgage pools(b)
— 696 233 284 1,213 1.1 
Total loans$291 $999 $999 $397 $2,686 .7 %
(a)Includes $38 million of total loans receiving a payment delay and term extension, $204 million of total loans receiving an interest rate reduction and term extension and $28 million of total loans receiving an interest rate reduction, payment delay and term extension for the three months ended June 30, 2026, compared with $97 million, $134 million and $25 million for the three months ended June 30, 2025, respectively. Includes $61 million of total loans receiving a payment delay and term extension, $231 million of total loans receiving an interest rate reduction and term extension and $45 million of total loans receiving an interest rate reduction, payment delay and term extension for the six months ended June 30, 2026, compared with $166 million, $191 million and $40 million for the six months ended June 30, 2025, respectively.
(b)Percent of class total amounts expressed as a percent of total residential mortgage loan balances.
The following table summarizes the effects of loan modifications made to borrowers on loans modified:
Three Months Ended June 30
Weighted-Average
Interest Rate
Reduction
Weighted-Average
Months of Term
Extension
2026
Commercial— %10
Commercial real estate4.0 8
Residential mortgages.6 45
Credit card16.1 —
Other retail6.1 6
Loans purchased from GNMA mortgage pools.7 89
2025
Commercial1.2 %14
Commercial real estate— 4
Residential mortgages1.3 95
Credit card16.6 —
Other retail4.6 12
Loans purchased from GNMA mortgage pools.4 100
Six Months Ended June 30
Weighted-Average
Interest Rate
Reduction
Weighted-Average
Months of Term
Extension
2026
Commercial— %35
Commercial real estate4.0 9
Residential mortgages.9 69
Credit card16.3 —
Other retail7.4 6
Loans purchased from GNMA mortgage pools.6 92
2025
Commercial1.6 %12
Commercial real estate2.1 5
Residential mortgages1.4 94
Credit card16.7 —
Other retail5.0 19
Loans purchased from GNMA mortgage pools.4 99
Note: The weighted-average payment deferral for all portfolio classes was less than $1 million for the three and six months ended June 30, 2026 and 2025. Forbearance payments are required to be paid at the end of the original term loan.
Loans Modified by Delinquency Status
The following table provides a summary of loan balances as of June 30, which were modified during the prior twelve months, by portfolio class and delinquency status:
(Dollars in Millions)  Current
30-89 Days
Past Due
90 Days or
More Past Due
Total
2026
Commercial$503 $4 $130 $637 
Commercial real estate917 — 159 1,076 
Residential mortgages(a)
1,009 6 10 1,025 
Credit card400 85 46 531 
Other retail78 12 5 95 
Total loans$2,907 $107 $350 $3,364 
2025
Commercial$504 $22 $98 $624 
Commercial real estate799 — 111 910 
Residential mortgages(a)
1,433 5 8 1,446 
Credit card368 80 45 493 
Other retail96 13 6 115 
Total loans$3,200 $120 $268 $3,588 
(a)At June 30, 2026, $186 million of loans 30-89 days past due and $218 million of loans 90 days or more past due purchased and that could be purchased from GNMA mortgage pools under delinquent loan repurchase options whose payments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs, were classified as current, compared with $413 million and $239 million at June 30, 2025 respectively.
Loans Modified During the year that Defaulted
The following table provides a summary of loans that defaulted (fully or partially charged-off or became 90 days or more past due) that were modified within twelve months prior to default:
Three Months Ended June 30
(Dollars in Millions)		Interest Rate ReductionPayment DelayTerm Extension
Multiple Modifications(a)
2026
Commercial$— $— $51 $— 
Commercial real estate— — 80 — 
Residential mortgages— — 1 2 
Credit card45 — — — 
Other retail1 — 4 — 
Total loans, excluding loans purchased from GNMA mortgage pools46 — 136 2 
Loans purchased from GNMA mortgage pools— 25 24 24 
Total loans$46 $25 $160 $26 
2025
Commercial$— $— $1 $— 
Commercial real estate36 — — — 
Residential mortgages— — — 3 
Credit card43 — — — 
Other retail— — 5 — 
Total loans, excluding loans purchased from GNMA mortgage pools79 — 6 3 
Loans purchased from GNMA mortgage pools— 61 29 50 
Total loans$79 $61 $35 $53 
Six Months Ended June 30
(Dollars in Millions)		Interest Rate Reduction
Payment Delay
Term Extension
Multiple Modifications(a)
2026
Commercial$— $— $52 $— 
Commercial real estate— — 103 — 
Residential mortgages— — 2 4 
Credit card95 — — — 
Other retail1 — 8 — 
Total loans, excluding loans purchased from GNMA mortgage pools96 — 165 4 
Loans purchased from GNMA mortgage pools— 71 69 88 
Total loans$96 $71 $234 $92 
2025
Commercial$— $— $21 $— 
Commercial real estate36 — — — 
Residential mortgages— — — 3 
Credit card88 — — — 
Other retail1 — 10 — 
Total loans, excluding loans purchased from GNMA mortgage pools125 — 31 3 
Loans purchased from GNMA mortgage pools— 100 44 89 
Total loans$125 $100 $75 $92 
(a)Includes $14 million of total loans receiving a payment delay and term extension, $9 million of total loans receiving an interest rate reduction and term extension, and $3 million of total loans receiving an interest rate reduction, payment delay and term extension for the three months ended June 30, 2026, compared with $29 million, $20 million, and $4 million for the three months ended June 30, 2025, respectively. Includes $46 million of total loans receiving a payment delay and term extension, $37 million of total loans receiving an interest rate reduction and term extension, and $9 million of total loans receiving an interest rate reduction, payment delay and term extension for the six months ended June 30, 2026, compared with $54 million, $33 million, and $5 million for the six months ended June 30, 2025, respectively.