XML 22 R9.htm IDEA: XBRL DOCUMENT

Loans and Related Allowance for Credit Losses

3 Months Ended

Mar. 31, 2024

LOANS AND RELATED ALLOWANCE FOR CREDIT LOSSES

Loan Portfolio

Our loan portfolio consists of two portfolio segments – Commercial and Consumer. Each of these segments comprises multiple loan classes. Classes are characterized by similarities in risk attributes and the manner in which we monitor and assess credit risk.


Commercial						Consumer

• Commercial and industrial						• Residential real estate
• Commercial real estate						• Home equity
• Equipment lease financing						• Automobile
						• Credit card
						• Education
						• Other consumer

See Note 1 Accounting Policies in our 2023 Form 10-K for additional information on our loan related policies.

Credit Quality

We closely monitor economic conditions and loan performance trends to manage and evaluate our exposure to credit risk within the loan portfolio based on our defined loan classes. In doing so, we use several credit quality indicators, including, but not limited to, trends in delinquency rates, nonperforming status, analyses of PD and LGD ratings, updated credit scores and originated and updated LTV ratios.

We manage credit risk based on the risk profile of the borrower, repayment sources, underlying collateral and other support given current events, economic conditions and expectations. We refine our practices to meet the changing environment such as inflation levels, industry specific risks, interest rate levels, the level of consumer savings and deposit balances, and structural and secular changes fostered by the pandemic. To mitigate losses and enhance customer support, we offer loan modifications and collection programs to assist our customers.

Table 39 presents the composition and delinquency status of our loan portfolio at March 31, 2024 and December 31, 2023. Loan delinquencies include government insured or guaranteed loans and loans accounted for under the fair value option.

Table 39: Analysis of Loan Portfolio (a) (b)


	Accruing
Dollars in millions	Current or Less Than 30 Days Past Due			30-59 Days Past Due			60-89 Days Past Due			90 Days or More Past Due			Total Past Due (c)				Nonperforming Loans			Fair Value Option Nonaccrual Loans (d)			Total Loans (e)(f)
March 31, 2024
Commercial
Commercial and industrial	$	175,964		$	125		$	35		$	90		$	250			$	578					$	176,792
Commercial real estate	34,666			2									2				923						35,591
Equipment lease financing	6,423			22			4						26				13						6,462
Total commercial	217,053			149			39			90			278				1,514						218,845
Consumer
Residential real estate	46,072			257			92			175			524			(c)	284			$	506		47,386
Home equity	25,278			64			24						88				464			66			25,896
Automobile	14,586			81			19			5			105				97						14,788
Credit card	6,706			49			37			82			168				13						6,887
Education	1,774			25			17			43			85			(c)							1,859
Other consumer	4,085			11			7			9			27				8						4,120
Total consumer	98,501			487			196			314			997				866			572			100,936
Total	$	315,554		$	636		$	235		$	404		$	1,275			$	2,380		$	572		$	319,781
Percentage of total loans	98.68		%	0.20		%	0.07		%	0.13		%	0.40		%		0.74		%	0.18		%	100.00		%
December 31, 2023
Commercial
Commercial and industrial	$	176,796		$	104		$	45		$	76		$	225			$	559					$	177,580
Commercial real estate	34,685			7						9			16				735						35,436
Equipment lease financing	6,480			41			8						49				13						6,542
Total commercial	217,961			152			53			85			290				1,307						219,558
Consumer
Residential real estate	46,159			282			101			192			575			(c)	294			$	516		47,544
Home equity	25,533			63			27						90				458			69			26,150
Automobile	14,638			91			20			7			118				104						14,860
Credit card	6,991			54			39			86			179				10						7,180
Education	1,850			27			19			49			95			(c)							1,945
Other consumer	4,227			16			11			10			37				7						4,271
Total consumer	99,398			533			217			344			1,094				873			585			101,950
Total	$	317,359		$	685		$	270		$	429		$	1,384			$	2,180		$	585		$	321,508
Percentage of total loans	98.71		%	0.21		%	0.08		%	0.13		%	0.43		%		0.68		%	0.18		%	100.00		%

(a)Amounts in table represent loans held for investment and do not include any associated ALLL.

(b)The accrued interest associated with our loan portfolio totaled $1.5 billion at both March 31, 2024 and December 31, 2023. These amounts are included in Other assets on the Consolidated Balance Sheet.

(c)Past due loan amounts include government insured or guaranteed residential real estate loans and education loans totaling $0.3 billion and $0.1 billion at both March 31, 2024 and December 31, 2023.

(d)Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policy criteria. Given that these loans are not accounted for at amortized cost, they have been excluded from the nonperforming loan population.

(e)Includes unearned income, unamortized deferred fees and costs on originated loans and premiums or discounts on purchased loans totaling $0.9 billion and $1.0 billion at March 31, 2024 and December 31, 2023, respectively.

(f)Collateral dependent loans totaled $1.4 billion at both March 31, 2024 and December 31, 2023, respectively.

At March 31, 2024, we pledged $50.8 billion of commercial and other loans to the Federal Reserve Bank and $90.9 billion of residential real estate and other loans to the FHLB as collateral for the ability to borrow, if necessary. The comparable amounts at December 31, 2023 were $51.3 billion and $89.5 billion, respectively. Amounts pledged reflect the unpaid principal balances.

Nonperforming Assets

Nonperforming assets include nonperforming loans and leases, OREO and foreclosed assets. Nonperforming loans are those loans accounted for at amortized cost whose credit quality has deteriorated to the extent that full collection of contractual principal and interest is not probable. Interest income is not recognized on these loans. Loans accounted for under the fair value option are reported as performing loans; however, when nonaccrual criteria is met, interest income is not recognized on these loans. Additionally, certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest are not reported as nonperforming loans and continue to accrue interest. See Note 1 Accounting Policies in our 2023 Form 10-K for additional information on our nonperforming loan and lease policies.

The following table presents our nonperforming assets as of March 31, 2024 and December 31, 2023:

Table 40: Nonperforming Assets


Dollars in millions	March 31, 2024			December 31, 2023
Nonperforming loans
Commercial	$	1,514		$	1,307
Consumer (a)	866			873
Total nonperforming loans (b)	2,380			2,180
OREO and foreclosed assets	35			36
Total nonperforming assets	$	2,415		$	2,216
Nonperforming loans to total loans	0.74		%	0.68		%
Nonperforming assets to total loans, OREO and foreclosed assets	0.76		%	0.69		%
Nonperforming assets to total assets	0.43		%	0.39		%

(a)Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.

(b)Nonperforming loans for which there is no related ALLL totaled $0.5 billion at both March 31, 2024 and December 31, 2023. This primarily includes loans with a fair value of collateral that exceeds the amortized cost basis.

Additional Credit Quality Indicators by Loan Class

Commercial Loan Classes

See Note 3 Loans and Related Allowance for Credit Losses in our 2023 Form 10-K for additional information related to these loan classes, including discussion around the credit quality indicators that we use to monitor and manage the credit risk associated with each loan class.

The following table presents credit quality indicators for our commercial loan classes:

Table 41: Commercial Credit Quality Indicators (a)


	Term Loans by Origination Year
March 31, 2024 In millions	2024			2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial
Pass Rated	$	5,497		$	20,187	$	23,601	$	6,708	$	5,544	$	14,938	$	88,965	$	760	$	166,200
Criticized	181			949		2,336		810		298		855		5,115		48		10,592
Total commercial and industrial loans	5,678			21,136		25,937		7,518		5,842		15,793		94,080		808		176,792
Gross charge-offs (b)	4		(c)	8		9		17		1		2		42		1		84
Commercial real estate
Pass Rated	474			4,666		8,362		2,949		2,019		11,485		453				30,408
Criticized	87			183		1,549		507		503		2,302		1		51		5,183
Total commercial real estate loans	561			4,849		9,911		3,456		2,522		13,787		454		51		35,591
Gross charge-offs (b)										1		55						56
Equipment lease financing
Pass Rated	307			1,456		1,360		642		637		1,648						6,050
Criticized	12			110		82		77		46		85						412
Total equipment lease financing loans	319			1,566		1,442		719		683		1,733						6,462
Gross charge-offs (b)				2		2		2		1		1						8
Total commercial loans	$	6,558		$	27,551	$	37,290	$	11,693	$	9,047	$	31,313	$	94,534	$	859	$	218,845
Total commercial gross charge-offs	$	4		$	10	$	11	$	19	$	3	$	58	$	42	$	1	$	148


	Term Loans by Origination Year
December 31, 2023 In millions	2023			2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial
Pass Rated	$	23,019		$	26,657	$	7,562	$	5,783	$	4,110	$	11,982	$	88,467	$	573	$	168,153
Criticized	838			1,781		739		331		281		698		4,708		51		9,427
Total commercial and industrial loans	23,857			28,438		8,301		6,114		4,391		12,680		93,175		624		177,580
Gross charge-offs (b)	25		(c)	32		33		8		3		26		105		12		244
Commercial real estate
Pass Rated	4,182			8,571		2,986		2,190		4,887		7,411		383				30,610
Criticized	155			1,300		455		490		622		1,753		51				4,826
Total commercial real estate loans	4,337			9,871		3,441		2,680		5,509		9,164		434				35,436
Gross charge-offs (b)								12		31		137						180
Equipment lease financing
Pass Rated	1,522			1,424		689		690		452		1,378						6,155
Criticized	90			81		81		51		35		49						387
Total equipment lease financing loans	1,612			1,505		770		741		487		1,427						6,542
Gross charge-offs (b)	4			4		4		4		1		1						18
Total commercial loans	$	29,806		$	39,814	$	12,512	$	9,535	$	10,387	$	23,271	$	93,609	$	624	$	219,558
Total commercial gross charge-offs	$	29		$	36	$	37	$	24	$	35	$	164	$	105	$	12	$	442

(a)Loans in our commercial portfolio are classified as Pass Rated or Criticized based on the regulatory definitions, which are driven by the PD and LGD ratings that we assign. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of March 31, 2024 and December 31, 2023.

(b)Gross charge-offs are presented on a year-to-date basis, as of the period end date.

(c)Includes charge-offs of deposit overdrafts.

Consumer Loan Classes

Residential Real Estate and Home Equity

The following table presents credit quality indicators for our residential real estate and home equity loan classes:

Table 42: Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes


	Term Loans by Origination Year
March 31, 2024 In millions	2024		2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Residential real estate
Current estimated LTV ratios
Greater than 100%			$	33	$	148	$	82	$	30	$	38					$	331
Greater than or equal to 80% to 100%	$	307	902		1,727		937		219		150						4,242
Less than 80%	382		4,146		8,039		14,270		6,417		8,852						42,106
No LTV available			49				13				4						66
Government insured or guaranteed loans			15		21		16		65		524						641
Total residential real estate loans	$	689	$	5,145	$	9,935	$	15,318	$	6,731	$	9,568					$	47,386
Updated FICO scores
Greater than or equal to 780	$	286	$	3,306	$	7,574	$	11,926	$	4,840	$	5,258					$	33,190
720 to 779	354		1,241		1,740		2,442		1,178		1,827						8,782
660 to 719	49		337		518		707		364		887						2,862
Less than 660			107		74		136		124		763						1,204
No FICO score available			139		8		91		160		309						707
Government insured or guaranteed loans			15		21		16		65		524						641
Total residential real estate loans	$	689	$	5,145	$	9,935	$	15,318	$	6,731	$	9,568					$	47,386
Gross charge-offs (a)							$	1									$	1
Home equity
Current estimated LTV ratios
Greater than 100%							$	2	$	14	$	19	$	330	$	358	$	723
Greater than or equal to 80% to 100%							5		38		39		1,073		1,670		2,825
Less than 80%							153		1,819		3,246		6,673		10,457		22,348
Total home equity loans							$	160	$	1,871	$	3,304	$	8,076	$	12,485	$	25,896
Updated FICO scores
Greater than or equal to 780							$	100	$	1,211	$	1,983	$	4,507	$	6,138	$	13,939
720 to 779							39		415		690		2,170		3,224		6,538
660 to 719							16		176		354		1,179		1,917		3,642
Less than 660							5		67		269		212		1,155		1,708
No FICO score available									2		8		8		51		69
Total home equity loans							$	160	$	1,871	$	3,304	$	8,076	$	12,485	$	25,896
Gross charge-offs (a)											$	1	$	4	$	5	$	10


(Continued from previous page)	Term Loans by Origination Year
December 31, 2023 In millions	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Residential real estate
Current estimated LTV ratios
Greater than 100%	$	15	$	139	$	79	$	31	$	10	$	28					$	302
Greater than or equal to 80% to 100%	1,665		1,928		955		221		69		92						4,930
Less than 80%	3,585		7,977		14,421		6,514		2,154		6,935						41,586
No LTV available	56				13						4						73
Government insured or guaranteed loans	14		20		16		66		37		500						653
Total residential real estate loans	$	5,335	$	10,064	$	15,484	$	6,832	$	2,270	$	7,559					$	47,544
Updated FICO scores
Greater than or equal to 780	$	3,206	$	7,797	$	12,197	$	5,035	$	1,492	$	4,004					$	33,731
720 to 779	1,482		1,659		2,389		1,107		432		1,388						8,457
660 to 719	400		508		657		334		171		721						2,791
Less than 660	93		71		133		122		82		680						1,181
No FICO score available	140		9		92		168		56		266						731
Government insured or guaranteed loans	14		20		16		66		37		500						653
Total residential real estate loans	$	5,335	$	10,064	$	15,484	$	6,832	$	2,270	$	7,559					$	47,544
Gross charge-offs (a)			$	2	$	1	$	1			$	4					$	8
Home equity
Current estimated LTV ratios
Greater than 100%					$	1	$	12	$	6	$	14	$	306	$	309	$	648
Greater than or equal to 80% to 100%					4		40		17		22		1,116		1,743		2,942
Less than 80%					157		1,866		845		2,556		6,843		10,293		22,560
Total home equity loans					$	162	$	1,918	$	868	$	2,592	$	8,265	$	12,345	$	26,150
Updated FICO scores
Greater than or equal to 780					$	102	$	1,254	$	489	$	1,605	$	4,604	$	6,083	$	14,137
720 to 779					38		423		216		488		2,222		3,225		6,612
660 to 719					17		174		110		271		1,207		1,894		3,673
Less than 660					5		65		52		220		223		1,089		1,654
No FICO score available							2		1		8		9		54		74
Total home equity loans					$	162	$	1,918	$	868	$	2,592	$	8,265	$	12,345	$	26,150
Gross charge-offs (a)											$	4	$	7	$	10	$	21

(a)Gross charge-offs are presented on a year-to-date basis, as of the period end date.

Automobile, Credit Card, Education and Other Consumer

The following table presents credit quality indicators for our automobile, credit card, education and other consumer loan classes:

Table 43: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes


	Term Loans by Origination Year
March 31, 2024 In millions	2024			2023		2022		2021		2020		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Automobile
Updated FICO scores
Greater than or equal to 780	$	927		$	2,230	$	1,480	$	1,288	$	443	$	340					$	6,708
720 to 779	438			1,727		983		689		250		252						4,339
660 to 719	206			1,009		549		368		159		195						2,486
Less than 660	11			352		271		233		139		249						1,255

Total automobile loans	$	1,582		$	5,318	$	3,283	$	2,578	$	991	$	1,036					$	14,788
Gross charge-offs (a)				$	11	$	6	$	5	$	3	$	7					$	32
Credit card
Updated FICO scores
Greater than or equal to 780														$	1,938	$	1	$	1,939
720 to 779														1,879		4		1,883
660 to 719														1,901		14		1,915
Less than 660														989		51		1,040
No FICO score available or required (b)														107		3		110
Total credit card loans														$	6,814	$	73	$	6,887
Gross charge-offs (a)														$	83	$	9	$	92
Education
Updated FICO scores
Greater than or equal to 780	$	1		$	61	$	85	$	44	$	37	$	360					$	588
720 to 779	4			44		45		23		18		146						280
660 to 719	4			17		17		7		6		60						111
Less than 660	1			3		3		1		1		23						32
No FICO score available or required (b)	3			8		5		3		2		1						22
Total loans using FICO credit metric	13			133		155		78		64		590						1,033
Other internal credit metrics												826						826
Total education loans	$	13		$	133	$	155	$	78	$	64	$	1,416					$	1,859
Gross charge-offs (a)												$	4					$	4
Other consumer
Updated FICO scores
Greater than or equal to 780	$	49		$	219	$	104	$	37	$	15	$	17	$	36	$	1	$	478
720 to 779	77			242		130		43		19		19		75		1		606
660 to 719	44			126		125		46		21		21		83		2		468
Less than 660				28		51		27		14		16		42		1		179

Total loans using FICO credit metric	170			615		410		153		69		73		236		5		1,731
Other internal credit metrics	3			11		101		30		13		101		2,119		11		2,389
Total other consumer loans	$	173		$	626	$	511	$	183	$	82	$	174	$	2,355	$	16	$	4,120
Gross charge-offs (a)	$	17	(c)	$	6	$	6	$	5	$	2	$	4	$	3			$	43


(Continued from previous page)	Term Loans by Origination Year
December 31, 2023 In millions	2023			2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Automobile
Updated FICO Scores
Greater than or equal to 780	$	2,722		$	1,650	$	1,483	$	535	$	368	$	88					$	6,846
720 to 779	1,797			1,104		778		301		250		80						4,310
660 to 719	1,014			604		408		186		186		70						2,468
Less than 660	264			272		243		152		200		105						1,236
Total automobile loans	$	5,797		$	3,630	$	2,912	$	1,174	$	1,004	$	343					$	14,860
Gross charge-offs (a)	$	8		$	24	$	22	$	17	$	30	$	20					$	121
Credit card
Updated FICO scores
Greater than or equal to 780														$	2,017	$	1	$	2,018
720 to 779														1,976		4		1,980
660 to 719														1,979		13		1,992
Less than 660														1,036		48		1,084
No FICO score available or required (b)														103		3		106
Total credit card loans														$	7,111	$	69	$	7,180
Gross charge-offs (a)														$	290	$	29	$	319
Education
Updated FICO scores
Greater than or equal to 780	$	35		$	88	$	45	$	40	$	51	$	331					$	590
720 to 779	32			47		24		19		24		131						277
660 to 719	20			17		8		6		8		54						113
Less than 660	4			3		2		1		2		21						33
No FICO score available or required (b)	15			5		4		2				1						27
Total loans using FICO credit metric	106			160		83		68		85		538						1,040
Other internal credit metrics												905						905
Total education loans	$	106		$	160	$	83	$	68	$	85	$	1,443					$	1,945
Gross charge-offs (a)						$	1	$	1	$	2	$	13					$	17
Other consumer
Updated FICO scores
Greater than or equal to 780	$	241		$	127	$	47	$	21	$	14	$	11	$	39	$	1	$	501
720 to 779	286			157		54		26		17		11		80		1		632
660 to 719	147			140		57		27		21		11		87		2		492
Less than 660	19			52		31		17		14		8		43		1		185
Total loans using FICO credit metric	693			476		189		91		66		41		249		5		1,810
Other internal credit metrics	19			97		33		48		71		34		2,149		10		2,461
Total other consumer loans	$	712		$	573	$	222	$	139	$	137	$	75	$	2,398	$	15	$	4,271
Gross charge-offs (a)	$	75	(c)	$	23	$	18	$	14	$	14	$	8	$	11	$	1	$	164

(a)Gross charge-offs are presented on a year-to-date basis, as of the period end date.

(b)Loans where FICO scores are not available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.

(c)Includes charge-offs of deposit overdrafts.

Loan Modifications to Borrowers Experiencing Financial Difficulty

Loan modifications to borrowers experiencing financial difficulty (FDMs) result from our loss mitigation activities and include principal forgiveness, interest rate reductions, term extensions, payment delays, repayment plans or combinations thereof. See Note 1 Accounting Policies in our 2023 Form 10-K for additional information on FDMs.

The following table presents the amortized cost basis, as of the period end date, of FDMs granted during the three months ended March 31, 2024 and 2023:

Table 44: Loan Modifications Granted to Borrowers Experiencing Financial Difficulty (a) (b)


Three months ended March 31, 2024 Dollars in millions	Term Extension		Payment Delay		Repayment Plan		Payment Delay and Term Extension		Interest Rate Reduction and Term Extension		Interest Rate Reduction and Payment Delay		Other (c)		Total		% of Loan Class
Commercial
Commercial and industrial	$	443	$	85			$	27	$	10	$	14	$	31	$	610	0.35	%
Commercial real estate	387		56				65								508		1.43	%

Total commercial	830		141				92		10		14		31		1,118		0.51	%
Consumer
Residential real estate			40										3		43		0.09	%
Home equity			5		$	1							5		11		0.04	%

Credit card					22										22		0.32	%
Education	2														2		0.11	%

Total consumer	2		45		23								8		78		0.08	%
Total	$	832	$	186	$	23	$	92	$	10	$	14	$	39	$	1,196	0.37	%


Three months ended March 31, 2023 Dollars in millions	Principal Forgiveness		Term Extension		Payment Delay		Repayment Plan		Interest Rate Reduction and Term Extension		Other (c)		Total		% of Loan Class
Commercial
Commercial and industrial	$	1	$	198	$	20					$	5	$	224	0.12	%
Commercial real estate			273										273		0.76	%

Total commercial	1		471		20						5		497		0.22	%
Consumer
Residential real estate					46				$	2	1		49		0.11	%
Home equity					1		$	2			2		5		0.02	%

Credit card							13						13		0.19	%
Education			1										1		0.05	%
Other consumer							1						1		0.02	%
Total consumer			1		47		16		2		3		69		0.07	%
Total	$	1	$	472	$	67	$	16	$	2	$	8	$	566	0.17	%

(a)The unfunded lending related commitments on FDMs granted during the three months ended March 31, 2024 and 2023 were $0.1 billion at both dates.

(b)Excludes the amortized cost basis of modified loans that were paid off, charged off or otherwise liquidated as of the period end date.

(c)Represents all other modifications, and includes trial modifications and loans where we have received notification that a borrower has filed for Chapter 7 bankruptcy relief, but specific instructions as to the terms of the relief have not been formally ruled upon by the court.

Table 45 presents the financial effect of FDMs granted during the three months ended March 31, 2024 and 2023.

Table 45: Financial Effect of FDMs (a)


Three months ended March 31, 2024 Dollars in millions	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in Months)	Weighted-Average Payment Delay (in Months)
Commercial
Commercial and industrial	4.06	%	11	5
Commercial real estate			12	8

Consumer
Residential real estate				8
Home equity				4


Education			10


Three Months Ended March 31, 2023 Dollars in millions	Total Principal Forgiveness		Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in Months)	Weighted-Average Payment Delay (in Months)
Commercial
Commercial and industrial	$	2			5	2
Commercial real estate					13

Consumer
Residential real estate			1.71	%	145	8
Home equity						6


Education					12

(a)Excludes the financial effects of modifications for loans that were paid off, charged off or otherwise liquidated as of the period end date.

Repayment plans are excluded from Table 45. The terms of these programs, which are offered for certain consumer products, are as follows:

•Credit card and unsecured lines of credit

•Short-term programs are granted for periods of 6 and 12 months. These programs are structurally similar such that the interest rate is reduced to a standard rate of 4.99% and the minimum payment percentage is adjusted to 1.90% of the outstanding balance. At the end of the 6 or 12 months, the borrower is returned to the original contractual interest rate and minimum payment amount specified in the original lending agreement.

•Fully-amortized repayment plans are also granted, the most common of which being a 60 month program. In this program, we convert the borrower’s drawn and unpaid balances into a fully-amortized repayment plan consisting of an interest rate of 4.99% and an adjusted minimum payment percentage of 1.90% of the outstanding balance. This fully-amortized program is designed in a manner that allows the drawn and unpaid amounts to be recaptured at the end of the 60 months.

•Home equity loans and lines of credit

•Fixed payment plan programs establish a modified monthly payment that is informed by the borrower’s financial situation and the current market environment at the time of modification, among other factors. As such, we may change the borrower’s interest rate, modify the term of the loan, and/or defer payment to arrive at the modified monthly payment. Each of the aforementioned terms may increase or decrease, and may vary from loan to loan, based on the individual loan and borrower characteristics.

After we modify a loan, we continue to track its performance under its most recent modified terms. The following table presents the performance, as of the period end date, of FDMs granted during the twelve months preceding March 31, 2024.

Table 46: Payment Performance of FDMs Modified in the Last 12 Months (a)


Twelve Months Ended March 31, 2024 Dollars in millions	Current or Less Than 30 Days Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Nonperforming Loans		Total
Commercial
Commercial and industrial	$	1,126	$	16	$	2			$	291	$	1,435
Commercial real estate	816								367		1,183

Total commercial	1,942		16		2				658		2,618
Consumer
Residential real estate	8				1		$	1	92		102
Home equity	2								29		31

Credit card	44		4		4		7		1		60
Education	5										5
Other consumer									1		1
Total consumer	59		4		5		8		123		199
Total	$	2,001	$	20	$	7	$	8	$	781	$	2,817

(a)Represents amortized cost basis.

The following table presents the performance as of March 31, 2023 for FDMs granted since January 1, 2023:

Table 47: Payment Performance of FDMs (a)


Three Months Ended March 31, 2023 Dollars in millions	Current or Less Than 30 Days Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Nonperforming Loans		Total
Commercial
Commercial and industrial	$	193			$	1			$	30	$	224
Commercial real estate	249								24		273

Total commercial	442				1				54		497
Consumer
Residential real estate	10		$	3			$	1	35		49
Home equity									5		5

Credit card	7		2		2		2				13
Education	1										1
Other consumer									1		1
Total consumer	18		5		2		3		41		69
Total	$	460	$	5	$	3	$	3	$	95	$	566

(a)Represents amortized cost basis.

We generally consider FDMs to have subsequently defaulted when they become 60 days past due after the most recent date the loan was modified. At March 31, 2024, loans that both (i) subsequently defaulted during the three months ended and (ii) were classified as FDMs during the twelve months preceding the default date were $49 million. Subsequently defaulted loans were not material during the three months ended March 31, 2023.

Allowance for Credit Losses

We maintain the ACL related to loans at levels that we believe to be appropriate to absorb expected credit losses in the portfolios as of the balance sheet date. See Note 1 Accounting Policies in our 2023 Form 10-K for a discussion of the methodologies used to determine this allowance. A rollforward of the ACL related to loans follows:

Table 48: Rollforward of Allowance for Credit Losses


	Three months ended March 31
	2024						2023
In millions	Commercial		Consumer		Total		Commercial		Consumer		Total
Allowance for loan and lease losses
Beginning balance	$	3,259	$	1,532	$	4,791	$	3,114	$	1,627	$	4,741
Adoption of ASU 2022-02 (a)									(35)		(35)
Beginning balance, adjusted	3,259		1,532		4,791		3,114		1,592		4,706
Charge-offs	(148)		(182)		(330)		(120)		(162)		(282)
Recoveries	23		64		87		25		62		87
Net (charge-offs)	(125)		(118)		(243)		(95)		(100)		(195)
Provision for credit losses	85		62		147		25		204		229
Other	(2)				(2)		2		(1)		1
Ending balance	$	3,217	$	1,476	$	4,693	$	3,046	$	1,695	$	4,741
Allowance for unfunded lending related commitments (b)
Beginning balance	$	545	$	118	$	663	$	613	$	81	$	694
Provision for (recapture of) credit losses	(17)		26		9		(53)		31		(22)
Ending balance	$	528	$	144	$	672	$	560	$	112	$	672
Allowance for credit losses at March 31 (c)	$	3,745	$	1,620	$	5,365	$	3,606	$	1,807	$	5,413

(a)Represents the impact of adopting ASU 2022-02 Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023. As a result of adoption, we eliminated the accounting guidance for TDRs, including the use of a discounted cash flow approach to measure the allowance for TDRs.

(b)See Note 8 Commitments for additional information about the underlying commitments related to this allowance.

(c)Represents the ALLL plus allowance for unfunded lending related commitments and excludes allowances for investment securities and other financial assets, which together totaled $117 million and $205 million at March 31, 2024 and 2023, respectively.

The ACL related to loans totaled $5.4 billion at March 31, 2024 and $5.5 billion at December 31, 2023. During the three months ended March 31, 2024, this reserve was driven by improved macroeconomic factors as well as portfolio activity.