v3.26.1
LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES 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,
2026		December 31,
2025
Loans held for sale$77 $201 
Commercial:
Commercial and industrial 1
$19,131 $18,111 
Owner-occupied9,336 9,274 
Municipal4,173 4,294 
Total commercial32,640 31,679 
Commercial real estate:
Term11,850 11,234 
Construction and land development2,213 2,162 
Total commercial real estate14,063 13,396 
Consumer:
1-4 family residential10,293 10,462 
Home equity credit line4,077 3,950 
Construction and other consumer real estate757 782 
Bankcard and other revolving plans537 515 
Other114 116 
Total consumer15,778 15,825 
Total loans and leases
$62,481 $60,900 
1 Effective March 31, 2026, balances previously reported as “Leasing” were reclassified to the “Commercial and industrial” loan segment. Prior period amounts have been reclassified to conform to the current presentation. At June 30, 2026 and December 31, 2025, the leasing portfolio totaled $352 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 $55 million and $61 million at June 30, 2026 and December 31, 2025, respectively. The amortized cost basis of the loans does not include accrued interest receivables of $272 million and $276 million at June 30, 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 $251 million at June 30, 2026 and $257 million at December 31, 2025.
Loans with a carrying value of $44.0 billion at June 30, 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
June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
Loans added to held for sale$582 $272 $1,144 448
Loans sold from held for sale641 211 1,204 350
From time to time, we retain continuing involvement in loans sold through servicing rights or guarantees. At June 30, 2026, the principal balance of loans sold for which servicing was retained was $987 million, compared with $679 million at December 31, 2025. Income generated from sold loans, excluding servicing income, totaled $5 million and $12 million for the three and six months ended June 30, 2026, and $2 million and $5 million for the corresponding periods 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 June 30, 2026
(In millions)CommercialCommercial real estateConsumerTotal
Allowance for loan losses
Balance at beginning of period$394 $161 $112 $667 
Provision for loan losses7 3 (6)4 
Gross loan and lease charge-offs8 3 3 14 
Recoveries4 — 1 5 
Net loan and lease charge-offs (recoveries)4 3 2 9 
Balance at end of period$397 $161 $104 $662 
Reserve for unfunded lending commitments
Balance at beginning of period$18 $20 $8 $46 
Provision for unfunded lending commitments— — (1)(1)
Balance at end of period$18 $20 $7 $45 
Total allowance for credit losses at end of period
Allowance for loan losses$397 $161 $104 $662 
Reserve for unfunded lending commitments18 20 7 45 
Total allowance for credit losses$415 $181 $111 $707 
Six Months Ended June 30, 2026
(In millions)CommercialCommercial real estateConsumerTotal
Allowance for loan losses
Balance at beginning of period$391 $185 $102 $678 
Provision for loan losses12 (22)7 (3)
Gross loan and lease charge-offs15 3 7 25 
Recoveries9 1 2 12 
Net loan and lease charge-offs (recoveries)6 2 5 13 
Balance at end of period$397 $161 $104 $662 
Reserve for unfunded lending commitments
Balance at beginning of period$19 $19 $8 $46 
Provision for unfunded lending commitments(1)1 (1)(1)
Balance at end of period$18 $20 $7 $45 
Total allowance for credit losses at end of period
Allowance for loan losses$397 $161 $104 $662 
Reserve for unfunded lending commitments18 20 7 45 
Total allowance for credit losses$415 $181 $111 $707 
Three Months Ended June 30, 2025
(In millions)CommercialCommercial real estateConsumerTotal
Allowance for loan losses
Balance at beginning of period$337 $271 $89 $697 
Provision for loan losses31 (40)12 3 
Gross loan and lease charge-offs12 1 3 16 
Recoveries5 — 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 commitments22 12 8 42 
Total allowance for credit losses$383 $242 $107 $732 
Six Months Ended June 30, 2025
(In millions)CommercialCommercial real estateConsumerTotal
Allowance for loan losses
Balance at beginning of period$308 $300 $88 $696 
Provision for loan losses72 (69)17 20 
Gross loan and lease charge-offs31 1 8 40 
Recoveries12 — 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 commitments22 12 8 42 
Total allowance for credit losses$383 $242 $107 $732 
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:
June 30, 2026
Amortized cost basisTotal amortized cost basis
(In millions)
with no allowance 1
with allowanceRelated allowance
Commercial:
Commercial and industrial$18 $78 $96 $21 
Owner-occupied28 26 54 1 
Municipal2 — 2 — 
Total commercial48 104 152 22 
Commercial real estate:
Term32 2 34 — 
Total commercial real estate32 2 34 — 
Consumer:
1-4 family residential16 53 69 5 
Home equity credit line— 35 35 9 
Bankcard and other revolving plans— 1 1 1 
Other— 1 1 1 
Total consumer16 90 106 16 
Total$96 $196 $292 $38 
December 31, 2025
Amortized cost basisTotal amortized cost basis
(In millions)
with no allowance 1
with allowanceRelated allowance
Commercial:
Commercial and industrial$44 $49 $93 $19 
Owner-occupied33 18 51 1 
Municipal— 2 2 — 
Total commercial77 69 146 20 
Commercial real estate:
Term 4 68 72 2 
Construction and land development— 1 1 — 
Total commercial real estate4 69 73 2 
Consumer:
1-4 family residential14 51 65 5 
Home equity credit line— 30 30 8 
Bankcard and other revolving plans— 1 1 1 
Total consumer14 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 and six months ended June 30, 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
June 30,		Six Months Ended
June 30,
(In millions)2026202520262025
Commercial$4 $4 $7 $7 
Commercial real estate1 1 2 3 
Consumer1 1 2 2 
Total$6 $6 $11 $12 
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:
June 30, 2026
(In millions)Current30-89 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$19,065 $30 $36 $66 $19,131 $2 $62 
Owner-occupied9,292 24 20 44 9,336 — 26 
Municipal4,173 — — — 4,173 — 2 
Total commercial32,530 54 56 110 32,640 2 90 
Commercial real estate:
Term
11,820 25 5 30 11,850 — 29 
Construction and land development2,213 — — — 2,213 — — 
Total commercial real estate14,033 25 5 30 14,063 — 29 
Consumer:
1-4 family residential10,242 11 40 51 10,293 — 27 
Home equity credit line4,053 15 9 24 4,077 — 21 
Construction and other consumer real estate
757 — — — 757 — — 
Bankcard and other revolving plans
534 2 1 3 537 1 1 
Other114 — — — 114 — — 
Total consumer15,700 28 50 78 15,778 1 49 
Total$62,263 $107 $111 $218 $62,481 $3 $168 
December 31, 2025
(In millions)Current30-89 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-occupied9,235 11 28 39 9,274 1 17 
Municipal4,293 1 — 1 4,294 — 2 
Total commercial31,553 87 39 126 31,679 3 92 
Commercial real estate:
Term
11,211 1 22 23 11,234 1 50 
Construction and land development2,161 — 1 1 2,162 — — 
Total commercial real estate13,372 1 23 24 13,396 1 50 
Consumer:
1-4 family residential10,411 10 41 51 10,462 — 21 
Home equity credit line3,920 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 
Other115 1 — 1 116 — — 
Total consumer15,738 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 June 30, 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 previously described 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.
June 30, 2026
Term loansRevolving loans amortized cost basisRevolving loans converted to term loans amortized cost basis
Amortized cost basis by year of origination
(In millions)
2026
2025
2024
2023
2022
PriorTotal
Commercial:
Commercial and industrial
Pass$1,825 $3,240 $1,669 $963 $715 $770 $8,864 $141 $18,187 
Special Mention1 8 34 47 1 63 54 2 210 
Accruing Substandard7 147 110 84 43 61 165 21 638 
Nonaccrual15 2 6 5 21 5 24 18 96 
Total commercial and industrial1,848 3,397 1,819 1,099 780 899 9,107 182 19,131 
Owner-occupied
Pass712 1,040 1,096 675 1,323 3,684 277 63 8,870 
Special Mention— 10 14 5 20 28 — — 77 
Accruing Substandard21 14 58 12 78 122 27 3 335 
Nonaccrual— 6 1 4 8 30 5 — 54 
Total owner-occupied733 1,070 1,169 696 1,429 3,864 309 66 9,336 
Municipal
Pass222 435 556 403 715 1,810 — 30 4,171 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — — — — 
Nonaccrual— — — — — 2 — — 2 
Total municipal222 435 556 403 715 1,812 — 30 4,173 
Total commercial2,803 4,902 3,544 2,198 2,924 6,575 9,416 278 32,640 
Commercial real estate:
Term
Pass1,704 2,302 1,305 1,094 1,447 2,281 372 134 10,639 
Special Mention69 8 13 25 35 30 — — 180 
Accruing Substandard294 135 59 127 318 33 1 30 997 
Nonaccrual— 19 — — 1 14 — — 34 
Total term2,067 2,464 1,377 1,246 1,801 2,358 373 164 11,850 
Construction and land development
Pass114 732 339 181 8 1 687 59 2,121 
Special Mention— — 22 — — — — — 22 
Accruing Substandard9 32 24 — — — 5 — 70 
Nonaccrual— — — — — — — — — 
Total construction and land development123 764 385 181 8 1 692 59 2,213 
Total commercial real estate2,190 3,228 1,762 1,427 1,809 2,359 1,065 223 14,063 
June 30, 2026
Term loansRevolving loans amortized cost basisRevolving loans converted to term loans amortized cost basis
Amortized cost basis by year of origination
(In millions)
2026
2025
2024
2023
2022
PriorTotal
Consumer:
1-4 family residential
Pass$604 $751 $695 $716 $3,090 $4,366 $— $— $10,222 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — 2 — — 2 
Nonaccrual— 1 4 8 16 40 — — 69 
Total 1-4 family residential604 752 699 724 3,106 4,408 — — 10,293 
Home equity credit line
Pass— — — — — — 3,915 121 4,036 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — 6 — 6 
Nonaccrual— — — — — — 30 5 35 
Total home equity credit line— — — — — — 3,951 126 4,077 
Construction and other consumer real estate
Pass51 401 253 27 22 3 — — 757 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — — — — 
Nonaccrual— — — — — — — — — 
Total construction and other consumer real estate51 401 253 27 22 3 — — 757 
Bankcard and other revolving plans
Pass— — — — — — 533 1 534 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — 2 — 2 
Nonaccrual— — — — — — 1 — 1 
Total bankcard and other revolving plans— — — — — — 536 1 537 
Other consumer
Pass32 37 19 13 8 3 — 1 113 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — — — — 
Nonaccrual— — — 1 — — — — 1 
Total other consumer32 37 19 14 8 3 — 1 114 
Total consumer687 1,190 971 765 3,136 4,414 4,487 128 15,778 
Total loans$5,680 $9,320 $6,277 $4,390 $7,869 $13,348 $14,968 $629 $62,481 
December 31, 2025
Term loansRevolving loans amortized cost basisRevolving loans converted to term loans amortized cost basis
Amortized cost basis by year of origination
(In millions)
2025
2024
2023
2022
2021PriorTotal
Commercial:
Commercial and industrial
Pass$3,746 $2,058 $1,143 $898 $350 $698 $8,141 $197 $17,231 
Special Mention14 29 13 16 28 30 99 1 230 
Accruing Substandard60 140 82 41 18 30 177 9 557 
Nonaccrual4 5 4 37 3 3 14 23 93 
Total commercial and industrial3,824 2,232 1,242 992 399 761 8,431 230 18,111 
Owner-occupied
Pass1,112 1,234 727 1,414 1,492 2,515 227 67 8,788 
Special Mention3 28 — 9 9 30 1 — 80 
Accruing Substandard4 37 15 111 71 89 24 4 355 
Nonaccrual6 8 2 6 3 19 7 — 51 
Total owner-occupied1,125 1,307 744 1,540 1,575 2,653 259 71 9,274 
Municipal
Pass542 614 409 745 849 1,070 1 41 4,271 
Special Mention— 3 — — — — — — 3 
Accruing Substandard— — — — — 18 — — 18 
Nonaccrual— — — — 2 — — — 2 
Total municipal542 617 409 745 851 1,088 1 41 4,294 
Total commercial5,491 4,156 2,395 3,277 2,825 4,502 8,691 342 31,679 
Commercial real estate:
Term
Pass2,643 1,223 1,167 1,741 956 1,747 318 140 9,935 
Special Mention51 — 35 71 — 1 — — 158 
Accruing Substandard328 43 142 426 53 36 26 15 1,069 
Nonaccrual21 — 16 1 — 5 — 29 72 
Total term3,043 1,266 1,360 2,239 1,009 1,789 344 184 11,234 
Construction and land development
Pass446 540 375 47 1 1 624 49 2,083 
Special Mention— 8 5 — — — — — 13 
Accruing Substandard53 6 — — — — 6 — 65 
Nonaccrual— — 1 — — — — — 1 
Total construction and land development499 554 381 47 1 1 630 49 2,162 
Total commercial real estate3,542 1,820 1,741 2,286 1,010 1,790 974 233 13,396 
December 31, 2025
Term loansRevolving loans amortized cost basisRevolving loans converted to term loans amortized cost basis
Amortized cost basis by year of origination
(In millions)
2025
2024
2023
2022
2021PriorTotal
Consumer:
1-4 family residential
Pass$917 $847 $867 $3,144 $1,808 $2,812 $— $— $10,395 
Special Mention— — — — — — — — — 
Accruing Substandard— 1 — — — 1 — — 2 
Nonaccrual1 4 5 15 13 27 — — 65 
Total 1-4 family residential918 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
Pass246 351 87 91 5 2 — — 782 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — — — — 
Nonaccrual— — — — — — — — — 
Total construction and other consumer real estate246 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
Pass55 26 19 11 4 1 — — 116 
Special Mention— — — — — — — — — 
Accruing Substandard— — — — — — — — — 
Nonaccrual— — — — — — — — — 
Total other consumer55 26 19 11 4 1 — — 116 
Total consumer1,219 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 $60,900 
The following schedules present gross charge-offs categorized by year of loan origination for the periods presented:
Three Months Ended June 30, 2026
Term loansRevolving loans
gross charge-offs		Revolving loans converted to term loans gross charge-offs
Gross charge-offs by year of loan origination
(In millions)20262025202420232022PriorTotal
Commercial:
Commercial and industrial$— $— $2 $— $— $1 $3 $1 $7 
Owner-occupied— — — — — — 1 — 1 
Total commercial— — 2 — — 1 4 1 8 
Commercial real estate:
Term— — — — — 3 — — 3 
Consumer:
Bankcard and other revolving plans— — — — — — 2 — 2 
Other— — — — — 1 — — 1 
Total consumer— — — — — 1 2 — 3 
Total gross charge-offs$— $— $2 $— $— $5 $6 $1 $14 
Six Months Ended June 30, 2026
Term loansRevolving loans
gross charge-offs		Revolving loans converted to term loans gross charge-offs
Gross charge-offs by year of loan origination
(In millions)20262025202420232022PriorTotal
Commercial:
Commercial and industrial$— $4 $2 $— $— $2 $5 $1 $14 
Owner occupied— — — — — — 1 — 1 
Total commercial— 4 2 — — 2 6 1 15 
Commercial real estate:
Term— — — — — 3 — — 3 
Consumer:
Bankcard and other revolving plans— — — — — — 5 — 5 
Other— — — — — 2 — — 2 
Total consumer— — — — — 2 5 — 7 
Total gross charge-offs$— $4 $2 $— $— $7 $11 $1 $25 
Three Months Ended June 30, 2025
Term loansRevolving loans
gross charge-offs		Revolving loans converted to term loans gross charge-offs
Gross charge-offs by year of loan origination
(In millions)20252024202320222021PriorTotal
Commercial:
Commercial and industrial$— $1 $1 $1 $2 $1 $6 $— $12 
Commercial real estate:
Term1 — — — — — — — 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 $— $16 
Six Months Ended June 30, 2025
Term loansRevolving loans
gross charge-offs		Revolving loans converted to term loans gross charge-offs
Gross charge-offs by year of loan origination
(In millions)20252024202320222021PriorTotal
Commercial:
Commercial and industrial$— $1 $2 $1 $3 $11 $13 $— $31 
Commercial real estate:
Term1 — — — — — — — 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 
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 and six months ended June 30, 2026, modified loans to borrowers experiencing financial difficulty that defaulted during the period and were modified within the preceding 12 months totaled less than $1 million and $1 million, respectively. For the corresponding periods ended June 30, 2025, such loans totaled less than $1 million and $2 million, respectively.
The amortized cost of loans to borrowers experiencing financial difficulty that were modified during the period, by loan class and modification type, is summarized in the following schedule:
Three Months Ended June 30, 2026
Amortized cost associated with
the following modification types:
(Dollar amounts in millions)Interest
rate reduction		Maturity
or term
extension		Principal
forgiveness		Payment
deferral
Multiple modification types 1
Total 2
Percentage of total loans 3
Commercial:
Commercial and industrial$— $32 $— $— $2 $34 0.2 %
Commercial real estate:
Term
— 148 — — 68 216 1.8 
Construction and land development
— 9 — — — 9 0.4 
Total commercial real estate— 157 — — 68 225 1.6 
Total$— $189 $— $— $70 $259 0.4 
Six Months Ended June 30, 2026
Amortized cost associated with
the following modification types:
(Dollar amounts in millions)Interest
rate reduction		Maturity
or term
extension		Principal
forgiveness		Payment
deferral
Multiple modification types 1
Total 2
Percentage of total loans 3
Commercial:
Commercial and industrial$— $59 $— $— $4 $63 0.3 %
Owner-occupied— 33 — — — 33 0.4 
Total commercial— 92 — — 4 96 0.3 
Commercial real estate:
Term
— 248 — — 68 316 2.7 
Construction and land development
— 9 — — — 9 0.4 
Total commercial real estate— 257 — — 68 325 2.3 
Consumer:
1-4 family residential— — — — 2 2 — 
Total$— $349 $— $— $74 $423 0.7 
Three Months Ended June 30, 2025
Amortized cost associated with
the following modification types:
(Dollar amounts in millions)Interest
rate reduction		Maturity
or term
extension		Principal
forgiveness		Payment
deferral
Multiple modification types 1
Total 2
Percentage of total loans 3
Commercial:
Commercial and industrial$— $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 
1 Includes modifications that resulted from a combination of interest rate reduction, maturity or term extension, principal forgiveness, and payment deferral modifications. During the three and six months ended June 30, 2026, modified loans totaling $67 million and $68 million, respectively, included both interest rate reductions and maturity or term extensions.
2 Unfunded lending commitments related to loans modified to borrowers experiencing financial difficulty totaled $19 million and
$38 million at June 30, 2026 and June 30, 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
June 30, 2026		Six Months Ended
June 30, 2026
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— %81.9 %17
Owner-occupied— 0— 12
Total commercial— 81.9 15
Commercial real estate:
Term
0.9 120.9 11
Construction and land development— 11— 11
Total commercial real estate0.9 120.9 11
Consumer:1
1-4 family residential— 03.1 34
Total weighted average financial impact0.9 110.9 12
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
0.1 100.1 10
Construction and land development— 9— 9
Total commercial real estate0.1 90.1 10
Consumer:
1-4 family residential— 3— 3
Total consumer— 3— 3
Total weighted average financial impact0.1 100.1 11
Loan modifications to borrowers experiencing financial difficulty during the three and six months ended June 30, 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 July 1, 2025 through June 30, 2026, categorized by portfolio segment and loan class:
June 30, 2026
(In millions)Current30-89 days
past due		90+ days
past due		Total
past due		Total
amortized cost of loans
Commercial:
Commercial and industrial$118 $5 $2 $7 $125 
Owner-occupied35 — 5 5 40 
Total commercial153 5 7 12 165 
Commercial real estate:
Term477 — — — 477 
Construction and land development9 — — — 9 
Total commercial real estate486 — — — 486 
Consumer:
1-4 family residential5 — — — 5 
Home equity credit line1 — — — 1 
Total consumer6 — — — 6 
Total$645 $5 $7 $12 $657 
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, categorized by portfolio segment and loan class:
June 30, 2025
(In millions)Current30-89 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-occupied4 1 — 1 5 
Total commercial67 2 3 5 72 
Commercial real estate:
Term306 — 10 10 316 
Construction and land development25 — — — 25 
Total commercial real estate331 — 10 10 341 
Consumer:
1-4 family residential6 — 1 1 7 
Total$404 $2 $14 $16 $420 
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:
June 30, 2026
(Dollar amounts in millions)Amortized costMajor types of collateral
Weighted average LTV 1
Commercial:
Commercial and industrial$2 Semi-trailers and semi-tractors80%
Owner-occupied32 Office buildings and agriculture production59%
Municipal2 Multifamily apartments82%
Commercial real estate:
Term32 Office and industrial buildings45%
Consumer:
1-4 family residential2 Single family residential43%
Total$70 
December 31, 2025
(Dollar amounts in millions)Amortized costMajor types of collateral
Weighted average LTV 1
Commercial:
Commercial and industrial$3 Single family residential71%
Owner occupied23 Agriculture production and industrial buildings67%
Municipal2 Multifamily apartments93%
Commercial real estate:
Term37 Office building98%
Consumer:
1-4 family residential5 Single family residential62%
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 was $2 million at June 30, 2026 and $1 million at 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 $19 million and $20 million at June 30, 2026 and December 31, 2025, respectively.