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Loans and asset quality

9 Months Ended

Sep. 30, 2025

Loans

The table below provides the details of our loan portfolio.


Loans	Sept. 30, 2025		Dec. 31, 2024
(in millions)
Commercial	$	1,333	$	1,420
Commercial real estate	6,767		6,782
Financial institutions	13,038		13,167
Lease financings	93		603
Wealth management loans	9,180		8,698
Wealth management mortgages	8,707		8,950
Other residential mortgages	1,767		1,068
Capital call financing	4,990		5,163
Other	3,584		3,063
Overdrafts	2,652		3,519
Margin loans	23,084		19,137
Total loans (a)	$	75,195	$	71,570

(a) Net of unearned income of $94 million at Sept. 30, 2025 and $230 million at Dec. 31, 2024 primarily related to lease financings.

We disclose information related to our loans and asset quality by the class of the financing receivable in the following tables.

Allowance for credit losses

Activity in the allowance for credit losses on loans and lending-related commitments is presented below. This does not include activity in the allowance for credit losses related to other financial instruments, including cash and due from banks, interest-bearing deposits with banks, federal funds sold and securities purchased under resale agreements, available-for-sale securities, held-to-maturity securities and accounts receivable.


Allowance for credit losses activity for the quarter ended Sept. 30, 2025							Wealth management loans	Wealth management mortgages		Other residential mortgages		Capital call financing
(in millions)	Commercial		Commercial real estate		Financial institutions											Total
Beginning balance	$	13	$	291	$	25		$	1	$	6	$	2	$	7	$	345
Charge-offs	—		(5)		—			—		—		—		—		(5)
Recoveries	—		—		—			—		—		1		—		1
Net (charge-offs) recoveries	—		(5)		—			—		—		1		—		(4)
Provision (a)	(6)		4		(3)			—		—		(1)		—		(6)
Ending balance	$	7	$	290	$	22		$	1	$	6	$	2	$	7	$	335
Allowance for:
Loan losses	$	1	$	247	$	10		$	1	$	6	$	2	$	5	$	272
Lending-related commitments	6		43		12			—		—		—		2		63
Individually evaluated for impairment:
Loan balance (b)	$	—	$	315	$	—		$	—	$	8	$	—	$	—	$	323
Allowance for loan losses	—		42		—			—		—		—		—		42

(a) Does not include the provision for credit losses benefit related to other financial instruments of $1 million for the quarter ended Sept. 30, 2025.

(b) Includes collateral-dependent loans of $323 million with $350 million of collateral value.


Allowance for credit losses activity for the quarter ended June 30, 2025							Wealth management loans	Wealth management mortgages		Other residential mortgages		Capital call financing
(in millions)	Commercial		Commercial real estate		Financial institutions											Total
Beginning balance	$	15	$	326	$	16		$	1	$	6	$	2	$	4	$	370
Charge-offs	—		(10)		—			—		—		—		—		(10)
Recoveries	—		5		—			—		—		—		—		5
Net (charge-offs)	—		(5)		—			—		—		—		—		(5)
Provision (a)	(2)		(30)		9			—		—		—		3		(20)
Ending balance	$	13	$	291	$	25		$	1	$	6	$	2	$	7	$	345
Allowance for:
Loan losses	$	2	$	245	$	13		$	1	$	6	$	2	$	6	$	275
Lending-related commitments	11		46		12			—		—		—		1		70
Individually evaluated for impairment:
Loan balance (b)	$	—	$	198	$	—		$	—	$	1	$	—	$	—	$	199
Allowance for loan losses	—		52		—			—		—		—		—		52

(a) Does not include the provision for credit losses related to other financial instruments of $3 million for the quarter ended June 30, 2025.

(b) Includes collateral-dependent loans of $199 million with $169 million of collateral value.


Allowance for credit losses activity for the quarter ended Sept. 30, 2024							Wealth management loans	Wealth management mortgages		Other residential mortgages		Capital call financing				Total
(in millions)	Commercial		Commercial real estate		Financial institutions
Beginning balance	$	27	$	298	$	21		$	1	$	6	$	3	$	3		$	359
Charge-offs	—		(10)		—			—		—		—		—			(10)
Recoveries	—		—		—			—		—		—		—			—
Net (charge-offs)	—		(10)		—			—		—		—		—			(10)
Provision (a)	3		20		—			—		—		(1)		—			22
Ending balance	$	30	$	308	$	21		$	1	$	6	$	2	$	3		$	371
Allowance for:
Loan losses	$	16	$	258	$	12		$	1	$	5	$	2	$	2		$	296
Lending-related commitments	14		50		9			—		1		—		1			75
Individually evaluated for impairment:
Loan balance (b)	$	—	$	273	$	—		$	—	$	13	$	—	$	—		$	286
Allowance for loan losses	—		64		—			—		—		—		—			64

(a) Does not include the provision for credit losses related to other financial instruments of $1 million for the quarter ended Sept. 30, 2024.

(b) Includes collateral-dependent loans of $286 million with $291 million of collateral value.


Allowance for credit losses activity for the nine months ended Sept. 30, 2025									Other residential mortgages		Capital call financing				Total
(in millions)	Commercial		Commercial real estate		Financial institutions		Wealth management loans						Wealth management mortgages
Beginning balance	$	20	$	315	$	19	$	1	$	6	$	2	$	3		$	366
Charge-offs	—		(25)		—		—		—		—		—			(25)
Recoveries	—		5		—		—		—		2		—			7
Net (charge-offs) recoveries	—		(20)		—		—		—		2		—			(18)
Provision (a)	(13)		(5)		3		—		—		(2)		4			(13)
Ending balance	$	7	$	290	$	22	$	1	$	6	$	2	$	7		$	335

(a) Does not include provision for credit losses related to other financial instruments of $7 million for the nine months ended Sept. 30, 2025.


Allowance for credit losses activity for the nine months ended Sept. 30, 2024													Other residential mortgages		Capital call financing		Total
(in millions)	Commercial		Commercial real estate		Financial institutions		Lease financings		Wealth management loans		Wealth management mortgages
Beginning balance	$	27	$	325	$	19	$	1	$	1	$	9	$	4	$	4	$	390
Charge-offs	—		(53)		—		—		—		(1)		—		—		(54)
Recoveries	—		—		—		—		—		—		—		—		—
Net (charge-offs)	—		(53)		—		—		—		(1)		—		—		(54)
Provision (a)	3		36		2		(1)		—		(2)		(2)		(1)		35
Ending balance	$	30	$	308	$	21	$	—	$	1	$	6	$	2	$	3	$	371

(a) Does not include provision for credit losses related to other financial instruments of $15 million for the nine months ended Sept. 30, 2024.

Nonperforming assets

The table below presents our nonperforming assets.


Nonperforming assets	Sept. 30, 2025						Dec. 31, 2024
	Recorded investment						Recorded investment
	With an allowance		Without an allowance				With an allowance		Without an allowance
(in millions)					Total						Total
Nonperforming loans:
Commercial real estate	$	125	$	—	$	125	$	104	$	39	$	143
Wealth management mortgages	9		8		17		6		9		15
Other residential mortgages	16		—		16		18		1		19


Total nonperforming loans	150		8		158		128		49		177
Other assets owned	—		2		2		—		2		2
Total nonperforming assets	$	150	$	10	$	160	$	128	$	51	$	179

Past due loans

The table below presents our past due loans.


Past due loans and still accruing interest	Sept. 30, 2025							Dec. 31, 2024
	Days past due						Total past due			Days past due			Total past due
(in millions)	30-59		60-89		≥90						30-59				60-89		≥90
Commercial real estate	$	11	$	42	$	—		$	53		$	15	$	—	$	—	$	15
Wealth management loans	37		—		—			37			47		—		—		47
Other residential mortgages	13		4		—			17			7		1		—		8
Wealth management mortgages	—		2		—			2			34		2		—		36




Total past due loans	$	61	$	48	$	—		$	109		$	103	$	3	$	—	$	106

Loan modifications

Modified loans are evaluated to determine whether a modification or restructuring with a borrower experiencing financial difficulty results in principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension. The modification could result in a new loan or a continuation of the existing loan.

In the third quarter of 2025, we modified one commercial real estate loan, with a recorded investment of $123 million, by extending the maturity

date. We also modified one residential mortgage loan, with a recorded investment of less than $1 million, by extending the maturity date and providing payment modifications.

At Sept. 30, 2025, other residential mortgages loans that were modified in the previous 12 months and now past due by more than 90 days totaled less than $1 million.

There were no loan modifications in the second quarter of 2025.

In the third quarter of 2024, we modified one commercial real estate exposure, with a recorded investment of $42 million, by extending the maturity

date. We also modified one residential mortgage loan, with a recorded investment of less than $1 million, by providing payment modifications.

Credit quality indicators

Our credit strategy is to focus on investment-grade clients that are active users of our non-credit services. Each customer is assigned an internal credit rating, which is mapped to an external rating agency grade equivalent, if possible, based upon a number of dimensions, which are continually evaluated and may change over time.

The tables below provide information about the credit profile of the loan portfolio by the period of origination.


Credit profile of the loan portfolio													Sept. 30, 2025
													Revolving loans
	Originated, at amortized cost												Amortized cost		Converted to term loans – Amortized cost				Accrued interest receivable
(in millions)	YTD25		2024		2023		2022		2021		Prior to 2021						Total (a)
Commercial:
Investment grade	$	11	$	24	$	54	$	16	$	51	$	115	$	998	$	—	$	1,269
Non-investment grade	14		11		14		—		—		—		25		—		64
Total commercial	25		35		68		16		51		115		1,023		—		1,333		$	1
Commercial real estate: (b)
Investment grade	503		461		616		748		301		1,455		146		—		4,230
Non-investment grade	149		298		219		660		292		854		47		18		2,537
Total commercial real estate	652		759		835		1,408		593		2,309		193		18		6,767		25
Financial institutions:
Investment grade	295		373		75		10		25		42		10,404		—		11,224
Non-investment grade	53		50		—		—		—		—		1,711		—		1,814
Total financial institutions	348		423		75		10		25		42		12,115		—		13,038		119
Wealth management loans:
Investment grade	11		—		29		26		51		91		8,773		175		9,156
Non-investment grade	—		—		—		—		—		—		24		—		24
Total wealth management loans	11		—		29		26		51		91		8,797		175		9,180		57
Wealth management mortgages (b)	462		276		766		1,514		1,747		3,927		15		—		8,707		24
Lease financings	—		—		—		—		7		86		—		—		93		—
Other residential mortgages (b)	389		357		173		501		175		172		—		—		1,767		6
Capital call financing	230		130		—		—		—		—		4,630		—		4,990		24
Other loans	—		—		—		—		—		—		3,584		—		3,584		6
Margin loans	10,452		—		—		—		—		—		12,632		—		23,084		35
Total loans	$	12,569	$	1,980	$	1,946	$	3,475	$	2,649	$	6,742	$	42,989	$	193	$	72,543	$	297

(a) Excludes overdrafts of $2,652 million. Overdrafts occur on a daily basis primarily in the custody and securities clearance business and are generally repaid within two business days.

(b) In the first nine months of 2025, the gross write-offs related to commercial real estate loans were $25 million, wealth management mortgages were $1 million, and other residential mortgages were less than $1 million.


Credit profile of the loan portfolio													Dec. 31, 2024
													Revolving loans
	Originated, at amortized cost												Amortized cost		Converted to term loans – Amortized cost				Accrued interest receivable
(in millions)	2024		2023		2022		2021		2020		Prior to 2020						Total (a)
Commercial:
Investment grade	$	41	$	69	$	20	$	55	$	—	$	116	$	1,010	$	—	$	1,311
Non-investment grade	14		29		—		17		—		—		49		—		109
Total commercial	55		98		20		72		—		116		1,059		—		1,420		$	2
Commercial real estate: (b)
Investment grade	396		567		762		392		460		1,384		126		—		4,087
Non-investment grade	335		315		751		351		214		617		94		18		2,695
Total commercial real estate	731		882		1,513		743		674		2,001		220		18		6,782		28
Financial institutions:
Investment grade	491		370		20		26		42		—		10,363		—		11,312
Non-investment grade	131		—		10		—		—		—		1,714		—		1,855
Total financial institutions	622		370		30		26		42		—		12,077		—		13,167		157
Wealth management loans:
Investment grade	3		29		33		110		33		109		8,261		100		8,678
Non-investment grade	—		—		—		—		—		—		20		—		20
Total wealth management loans	3		29		33		110		33		109		8,281		100		8,698		50
Wealth management mortgages (b)	495		798		1,585		1,812		818		3,423		19		—		8,950		23
Lease financings	—		—		—		10		31		562		—		—		603		—
Other residential mortgages (b)	15		148		529		184		5		187		—		—		1,068		4
Capital call financing	91		—		—		—		—		—		5,072		—		5,163		28
Other loans	—		—		—		—		—		—		3,063		—		3,063		6
Margin loans	7,732		—		—		—		—		—		11,405		—		19,137		38
Total loans	$	9,744	$	2,325	$	3,710	$	2,957	$	1,603	$	6,398	$	41,196	$	118	$	68,051	$	336

(a) Excludes overdrafts of $3,519 million. Overdrafts occur on a daily basis primarily in the custody and securities clearance business and are generally repaid within two business days.

(b) The gross write-offs related to commercial real estate loans were $82 million, other residential mortgage loans were $1 million and wealth management mortgage loans were less than $1 million in 2024.

Commercial loans

The commercial loan portfolio is divided into investment grade and non-investment grade categories based on the assigned internal credit ratings, which are generally consistent with those of the public rating agencies. Customers with ratings consistent with BBB- (S&P)/Baa3 (Moody’s) or better are considered to be investment grade. Those clients with ratings lower than this threshold are considered to be non-investment grade.

Commercial real estate

Our income-producing commercial real estate facilities are focused on experienced owners and are structured with moderate leverage based on existing cash flows. Our commercial real estate lending activities also include construction and renovation facilities.

Financial institutions

Financial institution exposures are high quality, with 96% of the exposures meeting the investment grade equivalent criteria of our internal credit rating classification at Sept. 30, 2025. In addition, 66% of the financial institutions exposure is secured. For example, securities industry clients and asset managers often borrow against marketable securities held in custody. The exposure to financial institutions is generally short term, with 82% expiring within one year.

Wealth management loans

Wealth management loans are not typically rated by external rating agencies. A majority of the wealth management loans are secured by the customers’ investment management accounts or custody accounts. Eligible assets pledged for these loans are typically investment grade fixed-income securities, equities and/or mutual funds. Internal ratings for this portion of the wealth management loan portfolio, therefore, would equate to investment grade external

ratings. Wealth management loans are provided to select customers based on the pledge of other types of assets. For the loans collateralized by other assets, the credit quality of the obligor is carefully analyzed, but we do not consider this portion of our wealth management loan portfolio to be investment grade.

Wealth management mortgages

Credit quality indicators for wealth management mortgages are not correlated to external ratings. Wealth management mortgages are typically loans to high-net-worth individuals, which are secured primarily by residential property. These loans are primarily interest-only, adjustable-rate mortgages with a weighted-average loan-to-value ratio of 61% at origination. Delinquency rate is a key indicator of credit quality in our wealth management portfolio. At Sept. 30, 2025, less than 1% of the mortgages were past due.

At Sept. 30, 2025, the wealth management mortgage portfolio consisted of the following geographic concentrations: California – 20%; New York – 14%; Florida – 11%; Massachusetts – 8%; and other – 47%.

Lease financings

At Sept. 30, 2025, all of the leasing exposure was investment grade, or investment grade equivalent, and concentrated in the U.S.

Other residential mortgages

The other residential mortgages portfolio primarily consists of 1-4 family residential mortgage loans and totaled $1.8 billion at Sept. 30, 2025 and $1.1 billion at Dec. 31, 2024. These loans are not typically correlated to external ratings.

Capital call financing

Capital call financing includes loans to private equity funds that are secured by the fund investors’ capital commitments and the funds’ right to call capital.

Other loans

Other loans primarily include loans to consumers that are fully collateralized with equities, mutual funds and fixed-income securities.

Margin loans

We had $23.1 billion of secured margin loans at Sept. 30, 2025, compared with $19.1 billion at Dec. 31, 2024. Margin loans are collateralized with marketable securities, and borrowers are required to maintain a daily collateral margin in excess of 100% of the value of the loan. We have rarely suffered a loss on these types of loans.

Overdrafts

Overdrafts primarily relate to custody and securities clearance clients and totaled $2.7 billion at Sept. 30, 2025 and $3.5 billion at Dec. 31, 2024. Overdrafts occur on a daily basis and are generally repaid within two business days.

Reverse repurchase agreements

Reverse repurchase agreements at Sept. 30, 2025 and Dec. 31, 2024 were fully secured with high-quality collateral. As a result, there was no allowance for credit losses related to these assets at Sept. 30, 2025 and Dec. 31, 2024.