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Loans And The Allowance For Credit Losses
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Loans And The Allowance For Credit Losses
NOTE 4. LOANS AND THE ALLOWANCE FOR CREDIT LOSSES
LOANS
The following table presents the distribution of Regions' loan portfolio by segment and class, net of unearned income:
June 30, 2024December 31, 2023
 (In millions)
Commercial and industrial$50,222 $50,865 
Commercial real estate mortgage—owner-occupied4,781 4,887 
Commercial real estate construction—owner-occupied370 281 
Total commercial55,373 56,033 
Commercial investor real estate mortgage6,536 6,605 
Commercial investor real estate construction2,301 2,245 
Total investor real estate8,837 8,850 
Residential first mortgage20,206 20,207 
Home equity lines3,142 3,221 
Home equity loans2,410 2,439 
Consumer credit card1,349 1,341 
Other consumer—exit portfolio17 43 
Other consumer6,174 6,245 
Total consumer33,298 33,496 
Total loans, net of unearned income$97,508 $98,379 
ALLOWANCE FOR CREDIT LOSSES
Regions determines the appropriate level of the allowance on a quarterly basis. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2023, for a description of the methodology.
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES
The following tables present analyses of the allowance for credit losses by portfolio segment for three and six months ended June 30, 2024, and 2023.
 Three Months Ended June 30, 2024
 CommercialInvestor Real
Estate		ConsumerTotal
 (In millions)
Allowance for loan losses, April 1, 2024$756 $211 $650 $1,617 
Provision for loan losses31 21 53 105 
Loan losses:
Charge-offs(61)— (62)(123)
Recoveries10 1 11 22 
Net loan (losses) recoveries(51)1 (51)(101)
Allowance for loan losses, June 30, 2024736 233 652 1,621 
Reserve for unfunded credit commitments, April 1, 202487 10 17 114 
Provision for (benefit from) unfunded credit commitments(2)(2)1 (3)
Reserve for unfunded credit commitments, June 30, 202485 8 18 111 
Allowance for credit losses, June 30, 2024$821 $241 $670 $1,732 
 Three Months Ended June 30, 2023
 CommercialInvestor Real
Estate		ConsumerTotal
 (In millions)
Allowance for loan losses, April 1, 2023$693 $126 $653 $1,472 
Provision for loan losses46 25 51 122 
Loan losses:
Charge-offs(52)— (60)(112)
Recoveries21 — 10 31 
Net loan (losses) recoveries(31)— (50)(81)
Allowance for loan losses, June 30, 2023708 151 654 1,513 
Reserve for unfunded credit commitments, April 1, 202377 27 20 124 
Provision for unfunded credit commitments5 (8)(1)(4)
Reserve for unfunded credit commitments, June 30, 202382 19 19 120 
Allowance for credit losses, June 30, 2023$790 $170 $673 $1,633 
 Six Months Ended June 30, 2024
 CommercialInvestor Real
Estate		ConsumerTotal
 (In millions)
Allowance for loan losses, January 1, 2024$722 $192 $662 $1,576 
Provision for loan losses119 44 104 267
Loan losses:
Charge-offs(123)(5)(136)(264)
Recoveries18 2 22 42 
Net loan (losses) recoveries(105)(3)(114)(222)
Allowance for loan losses, June 30, 20247362336521,621
Reserve for unfunded credit commitments, January 1, 202492 13 19 124 
Provision for (benefit from) unfunded credit losses(7)(5)(1)(13)
Reserve for unfunded credit commitments, June 30, 202485 8 18 111 
Allowance for credit losses, June 30, 2024$821 $241 $670 $1,732 

 Six Months Ended June 30, 2023
 CommercialInvestor Real
Estate		ConsumerTotal
 (In millions)
Allowance for loan losses, December 31, 2022$665 $121 $678 $1,464 
Cumulative effect of accounting guidance (1)
(3)(3)(32)(38)
Allowance for loan losses, January 1, 2023 (adjusted for change in accounting guidance)$662 $118 $646 $1,426 
Provision for loan losses116 33 102 251 
Loan losses:
Charge-offs(101)— (116)(217)
Recoveries31 — 22 53 
Net loan (losses) recoveries(70)— (94)(164)
Allowance for loan losses, June 30, 2023708 151 654 1,513 
Reserve for unfunded credit commitments, January 1, 202372 21 25 118 
Provision for (benefit from) unfunded credit losses10 (2)(6)2 
Reserve for unfunded credit commitments, June 30, 202382 19 19 120 
Allowance for credit losses, June 30, 2023$790 $170 $673 $1,633 
_____
(1) See Note 1 in the Annual Report on Form 10-K for the year ended December 31, 2023 for additional information.
PORTFOLIO SEGMENT RISK FACTORS
Regions' portfolio segments are commercial, investor real estate, and consumer. Classes within each segment present unique credit risks. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2023 for information regarding Regions' portfolio segments and related classes, as well as the risks specific to each.
CREDIT QUALITY INDICATORS
The commercial and investor real estate portfolio segments' primary credit quality indicator is internal risk ratings which are detailed by categories related to underlying credit quality and probability of default. Regions assigns these risk ratings at loan origination and reviews the relationship utilizing a risk-based approach on, at minimum, an annual basis or at any time management becomes aware of information affecting the borrowers' ability to fulfill their obligations. Both quantitative and qualitative factors are considered in this review process. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2023 for information regarding commercial risk ratings.
Regions' consumer portfolio segment has various classes that present unique credit risks. Regions considers factors such as periodic updates of FICO scores, accrual status, days past due status, unemployment rates, home prices, and geography as credit quality indicators for the consumer loan portfolio. FICO scores are obtained at origination as part of Regions' formal underwriting process. Refreshed FICO scores are obtained by the Company quarterly for all consumer loans, including residential first mortgage loans. Current FICO data is not available for certain loans in the portfolio for various reasons; for example, if customers do not use sufficient credit, an updated score may not be available. These categories are utilized to develop the associated allowance for credit losses. The higher the FICO score the less probability of default and vice versa.
The following tables present applicable credit quality indicators for the loan portfolio segments and classes, excluding loans held for sale as of June 30, 2024 and December 31, 2023 and gross charge-offs for the year to date period ended June 30, 2024 and 2023, both by vintage year. Regions defines the vintage date for the purposes of disclosure as the date of the most recent credit decision. In general, renewals that are categorized as new credit decisions reflect the renewal date as the vintage date. Classes in the commercial and investor real estate portfolio segments are disclosed by risk rating. Classes in the consumer portfolio segment are disclosed by current FICO scores. Refer to Note 5 "Allowance for Credit Losses" in the Annual Report on Form 10-K for the year ended December 31, 2023 for more information regarding Regions' credit quality indicators.

June 30, 2024
Term LoansRevolving Loans Revolving Loans Converted to Amortizing
Unallocated (1)
Total
20242023202220212020Prior
(In millions)
Commercial and industrial:
Risk rating:
   Pass$3,976 $6,405 $7,644 $4,295 $2,042 $4,271 $18,696 $— $47 $47,376 
   Special Mention80 286 154 7 56 19 526 — — 1,128 
   Substandard Accrual13 45 268 90 11 67 801 — — 1,295 
   Non-accrual6 127 111 33 4 27 115 — — 423 
Total commercial and industrial$4,075 $6,863 $8,177 $4,425 $2,113 $4,384 $20,138 $— $47 $50,222 
Commercial real estate mortgage—owner-occupied:
Risk rating:
   Pass$374 $741 $895 $892 $568 $938 $92 $— $(4)$4,496 
   Special Mention1 5 16 24 12 48 1 — — 107 
   Substandard Accrual3 3 35 44 15 33 2 — — 135 
   Non-accrual2 2 5 16 5 12 1 — — 43 
Total commercial real estate mortgage—owner-occupied:$380 $751 $951 $976 $600 $1,031 $96 $— $(4)$4,781 
June 30, 2024
Term LoansRevolving Loans Revolving Loans Converted to Amortizing
Unallocated (1)
Total
20242023202220212020Prior
(In millions)
Commercial real estate construction—owner-occupied:
Risk rating:
   Pass$93 $75 $42 $34 $21 $44 $4 $— $— $313 
   Special Mention— 34 8 — — — — — — 42 
   Substandard Accrual— — 4 — 2 — — — — 6 
   Non-accrual— 2 — — 2 5 — — — 9 
Total commercial real estate construction—owner-occupied:$93 $111 $54 $34 $25 $49 $4 $— $— $370 
Total commercial$4,548 $7,725 $9,182 $5,435 $2,738 $5,464 $20,238 $— $43 $55,373 
Commercial investor real estate mortgage:
Risk rating:
   Pass$581 $1,065 $1,437 $1,054 $369 $291 $321 $— $(3)$5,115 
   Special Mention175 26 316 39 20 14 17 — — 607 
   Substandard Accrual180 81 69 24 18 31 94 — — 497 
   Non-accrual142 59 57 — — 59 — — — 317 
Total commercial investor real estate mortgage$1,078 $1,231 $1,879 $1,117 $407 $395 $432 $— $(3)$6,536 
Commercial investor real estate construction:
Risk rating:
   Pass$77 $287 $767 $155 $— $2 $772 $— $(13)$2,047 
   Special Mention— — 199 — — — 33 — — 232 
   Substandard Accrual— — — — — — 22 — — 22 
   Non-accrual— — — — — — — — — 
Total commercial investor real estate construction$77 $287 $966 $155 $— $2 $827 $— $(13)$2,301 
Total investor real estate$1,155 $1,518 $2,845 $1,272 $407 $397 $1,259 $— $(16)$8,837 
Residential first mortgage:
FICO scores:
   Above 720$541 $1,996 $2,851 $4,235 $4,190 $2,949 $— $— $— $16,762 
   681-72059 213 261 294 240 323 — — — 1,390 
   620-68026 86 139 152 106 300 — — — 809 
   Below 6203 51 118 128 93 432 — — — 825 
   Data not available13 30 20 43 45 93 2 — 174 420 
Total residential first mortgage$642 $2,376 $3,389 $4,852 $4,674 $4,097 $2 $— $174 $20,206 
Home equity lines:
FICO scores:
   Above 720$— $— $— $— $— $— $2,336 $45 $— $2,381 
   681-720— — — — — — 337 10 — 347 
   620-680— — — — — — 182 10 — 192 
   Below 620— — — — — — 95 6 — 101 
   Data not available— — — — — — 85 5 31 121 
Total home equity lines$— $— $— $— $— $— $3,035 $76 $31 $3,142 
Home equity loans:
FICO scores:
   Above 720$167 $298 $337 $359 $185 $543 $— $— $— $1,889 
   681-72026 42 57 46 17 65 — — — 253 
   620-6809 20 25 22 10 51 — — — 137 
   Below 6201 4 11 13 5 39 — — — 73 
   Data not available— 1 4 6 3 28 — — 16 58 
Total home equity loans$203 $365 $434 $446 $220 $726 $— $— $16 $2,410 
June 30, 2024
Term LoansRevolving Loans Revolving Loans Converted to Amortizing
Unallocated (1)
Total
20242023202220212020Prior
(In millions)
Consumer credit card:
FICO scores:
Above 720$— $— $— $— $— $— $779 $— $— $779 
681-720— — — — — — 258 — — 258 
620-680— — — — — — 211 — — 211 
Below 620— — — — — — 95 — — 95 
Data not available— — — — — — 26 — (20)6 
Total consumer credit card$— $— $— $— $— $— $1,369 $— $(20)$1,349 
Other consumer—exit portfolios:
FICO scores:
   Above 720$— $— $— $— $— $9 $— $— $— $9 
   681-720— — — — — 2 — — — 2 
   620-680— — — — — 3 — — — 3 
   Below 620— — — — — 4 — — — 4 
   Data not available— — — — — — — — (1)(1)
Total other consumer—exit portfolios$— $— $— $— $— $18 $— $— $— $(1)$17 
Other consumer(2):
FICO scores:
   Above 720$491 $1,193 $1,456 $471 $265 $246 $118 $— $— $4,240 
   681-72070 244 336 112 57 47 64 — — 930 
   620-68034 137 213 76 36 30 50 — — 576 
   Below 6206 42 116 45 21 18 30 — — 278 
   Data not available74 7 9 6 5 167 2 — (120)150 
Total other consumer$675 $1,623 $2,130 $710 $384 $508 $264 $— $(120)$6,174 
Total consumer loans$1,520 $4,364 $5,953 $6,008 $5,278 $5,349 $4,670 $76 $80 $33,298 
Total Loans$7,223 $13,607 $17,980 $12,715 $8,423 $11,210 $26,167 $76 $107 $97,508 
December 31, 2023
Term LoansRevolving Loans Revolving Loans Converted to Amortizing
Unallocated (1)
Total
20232022202120202019Prior
(In millions)
Commercial and industrial:
Risk rating:
   Pass$8,272 $9,123 $5,267 $2,326 $1,376 $3,210 $18,561 $— $53 $48,188 
   Special Mention87 186 71 109 26 90 484 — — 1,053 
   Substandard Accrual141 212 74 38 7 3 678 — — 1,153 
   Non-accrual128 102 37 6 20 10 168 — — 471 
Total commercial and industrial$8,628 $9,623 $5,449 $2,479 $1,429 $3,313 $19,891 $— $53 $50,865 
Commercial real estate mortgage—owner-occupied:
Risk rating:
   Pass$799 $954 $988 $658 $343 $801 $76 $— $(5)$4,614 
   Special Mention21 13 33 20 7 13 14 — — 121 
   Substandard Accrual3 34 32 14 8 24 1 — — 116 
   Non-accrual4 3 10 8 3 8 — — — 36 
Total commercial real estate mortgage—owner-occupied:$827 $1,004 $1,063 $700 $361 $846 $91 $— $(5)$4,887 
Commercial real estate construction—owner-occupied:
Risk rating:
   Pass$89 $53 $44 $24 $11 $38 $3 $— $— $262 
   Special Mention— 7 — — — 1 — — — 8 
   Substandard Accrual— 1 — 1 — 1 — — — 3 
   Non-accrual2 — — 2 — 4 — — — 8 
Total commercial real estate construction—owner-occupied:$91 $61 $44 $27 $11 $44 $3 $— $— $281 
Total commercial$9,546 $10,688 $6,556 $3,206 $1,801 $4,203 $19,985 $— $48 $56,033 
Commercial investor real estate mortgage:
Risk rating:
   Pass$1,130 $1,587 $1,135 $488 $296 $110 $383 $— $(4)$5,125 
   Special Mention269 247 52 59 30 — 90 — — 747 
   Substandard Accrual134 197 — 67 67 3 32 — — 500 
   Non-accrual99 57 37 — 12 28 — — — 233 
Total commercial investor real estate mortgage$1,632 $2,088 $1,224 $614 $405 $141 $505 $— $(4)$6,605 
Commercial investor real estate construction:
Risk rating:
   Pass$256 $836 $280 $26 $2 $1 $649 $— $(15)$2,035 
   Special Mention— 122 — — — — 59 — — 181 
   Substandard Accrual— 25 — — — — 4 — — 29 
   Non-accrual— — — — — — — — — — 
Total commercial investor real estate construction$256 $983 $280 $26 $2 $1 $712 $— $(15)$2,245 
Total investor real estate$1,888 $3,071 $1,504 $640 $407 $142 $1,217 $— $(19)$8,850 
Residential first mortgage:
FICO scores:
   Above 720$1,939 $2,863 $4,358 $4,390 $816 $2,353 $— $— $— $16,719 
   681-720226 298 355 255 52 294 — — — 1,480 
   620-68086 153 153 112 43 270 — — — 817 
   Below 62021 90 122 87 53 389 — — — 762 
   Data not available33 16 49 46 11 92 1 — 181 429 
Total residential first mortgage$2,305 $3,420 $5,037 $4,890 $975 $3,398 $1 $— $181 $20,207 
December 31, 2023
Term LoansRevolving Loans Revolving Loans Converted to Amortizing
Unallocated (1)
Total
20232022202120202019Prior
(In millions)
Home equity lines:
FICO scores:
   Above 720$— $— $— $— $— $— $2,399 $45 $— $2,444 
   681-720— — — — — — 346 11 — 357 
   620-680— — — — — — 184 9 — 193 
   Below 620— — — — — — 97 7 — 104 
   Data not available— — — — — — 85 5 33 123 
Total home equity lines$— $— $— $— $— $— $3,111 $77 $33 $3,221 
Home equity loans:
FICO scores:
   Above 720$322 $370 $397 $205 $93 $529 $— $— $— $1,916 
   681-72053 62 49 22 14 60 — — — 260 
   620-68019 27 23 8 8 52 — — — 137 
   Below 6202 8 12 5 7 35 — — — 69 
   Data not available1 4 5 3 3 25 — — 16 57 
Total home equity loans$397 $471 $486 $243 $125 $701 $— $— $16 $2,439 
Consumer credit card:
FICO scores:
Above 720$— $— $— $— $— $— $780 $— $— $780 
681-720— — — — — — 254 — — 254 
620-680— — — — — — 210 — — 210 
Below 620— — — — — — 95 — — 95 
Data not available— — — — — — 20 — (18)2 
Total consumer credit card$— $— $— $— $— $— $1,359 $— $(18)$1,341 
Other consumer—exit portfolios:
FICO scores:
   Above 720$— $— $— $— $2 $22 $— $— $— $24 
   681-720— — — — 1 4 — — — 5 
   620-680— — — — — 5 — — — 5 
   Below 620— — — — 1 7 — — — 8 
   Data not available— — — — — 1 — — — 1 
Total other consumer—exit portfolios$— $— $— $— $4 $39 $— $— $— $43 
Other consumer(2):
FICO scores:
   Above 720$1,312 $1,519 $501 $284 $155 $118 $119 $— $— $4,008 
   681-720270 409 136 74 34 29 67 — — 1,019 
   620-680178 294 103 50 21 20 53 — — 719 
   Below 62052 147 65 31 14 13 30 — — 352 
   Data not available94 10 7 5 114 65 1 — (149)147 
Total other consumer$1,906 $2,379 $812 $444 $338 $245 $270 $— $(149)$6,245 
Total consumer loans$4,608 $6,270 $6,335 $5,577 $1,442 $4,383 $4,741 $77 $63 $33,496 
Total Loans$16,042 $20,029 $14,395 $9,423 $3,650 $8,728 $25,943 $77 $92 $98,379 
________
(1)These amounts consist of fees that are not allocated at the loan level and loans serviced by third parties wherein Regions does not receive FICO or vintage information.
(2)Other consumer class includes overdrafts which are included in the current vintage year.
The following tables present gross charge-offs by vintage year for the six months ended June 30, 2024 and 2023.
Six Months Ended June 30, 2024
Term LoansRevolving LoansTotal
20242023202220212020Prior
(In millions)
Commercial and industrial$5 $33 $36 $8 $4 $8 $28 $122 
Commercial real estate mortgage—owner-occupied— — — 1 — — — 1 
Total commercial5 33 36 9 4 8 28 123 
Commercial investor real estate mortgage— — — 5 — — — 5 
Total investor real estate— — — 5 — — — 5 
Residential first mortgage— — — — — 1 — 1 
Home equity lines— — — — — — 2 2 
Consumer credit card— — — — — — 31 31 
Other consumer—exit portfolios— — — — — 1 — 1 
Other consumer(1)
17 23 34 11 5 7 4 101 
Total consumer17 23 34 11 5 9 37 136 
Total gross charge-offs$22 $56 $70 $25 $9 $17 $65 $264 
Six Months Ended June 30, 2023
Term LoansRevolving LoansTotal
20232022202120202019Prior
(In millions)
Commercial and industrial$— $34 $25 $19 $9 $9 $5 $101 
Total commercial— 34 25 19 9 9 5 101 
Residential first mortgage— — — — — 1 — 1 
Home equity lines— — — — — — 2 2 
Consumer credit card— — — — — — 24 24 
Other consumer—exit portfolios— — — — 3 5 — 8 
Other consumer(1)
20 26 17 8 4 6 — 81 
Total consumer20 26 17 8 7 12 26 116 
Total gross charge-offs$20 $60 $42 $27 $16 $21 $31 $217 
______
(1)Other consumer class includes overdraft gross charge-offs. The majority of overdraft gross charge-offs for the six months ended June 30, 2024 and 2023 are included in the current vintage year.
AGING AND NON-ACCRUAL ANALYSIS
The following tables include an aging analysis of DPD and loans on non-accrual status for each portfolio segment and class as of June 30, 2024 and December 31, 2023. Loans on non-accrual status with no related allowance totaled $174 million and $280 million comprised of commercial and investor real estate loans at June 30, 2024 and December 31, 2023, respectively. Non–accrual loans with no related allowance typically include loans where the underlying collateral is deemed sufficient to recover all remaining principal. Loans that have been fully charged-off do not appear in the tables below.
 June 30, 2024
 Accrual Loans   
 30-59 DPD60-89 DPD90+ DPDTotal
30+ DPD		Total
Accrual		Non-accrualTotal
 (In millions)
Commercial and industrial$40 $16 $6 $62 $49,799 $423 $50,222 
Commercial real estate mortgage—owner-occupied3 1 1 5 4,738 43 4,781 
Commercial real estate construction—owner-occupied— — — — 361 9 370 
Total commercial43 17 7 67 54,898 475 55,373 
Commercial investor real estate mortgage— 10 23 33 6,219 317 6,536 
Commercial investor real estate construction— — — — 2,301 — 2,301 
Total investor real estate— 10 23 33 8,520 317 8,837 
Residential first mortgage109 50 113 272 20,184 22 20,206 
Home equity lines17 6 18 41 3,115 27 3,142 
Home equity loans7 6 6 19 2,404 6 2,410 
Consumer credit card11 7 18 36 1,349 — 1,349 
Other consumer—exit portfolios1 1 — 2 17 — 17 
Other consumer43 22 21 86 6,174 — 6,174 
Total consumer188 92 176 456 33,243 55 33,298 
$231 $119 $206 $556 $96,661 $847 $97,508 
 
 December 31, 2023
 Accrual Loans   
 30-59 DPD60-89 DPD90+ DPDTotal
30+ DPD		Total
Accrual		Non-accrualTotal
 (In millions)
Commercial and industrial$43 $21 $11 $75 $50,394 $471 $50,865 
Commercial real estate mortgage—owner-occupied3 2 — 5 4,851 36 4,887 
Commercial real estate construction—owner-occupied— 1 — 1 273 8 281 
Total commercial46 24 11 81 55,518 515 56,033 
Commercial investor real estate mortgage— — 23 23 6,372 233 6,605 
Commercial investor real estate construction— — — — 2,245 — 2,245 
Total investor real estate— — 23 23 8,617 233 8,850 
Residential first mortgage104 48 95 247 20,185 22 20,207 
Home equity lines17 10 20 47 3,192 29 3,221 
Home equity loans10 4 7 21 2,433 6 2,439 
Consumer credit card11 8 20 39 1,341 — 1,341 
Other consumer—exit portfolios2 1 — 3 43 — 43 
Other consumer60 31 29 120 6,245 — 6,245 
Total consumer204 102 171 477 33,439 57 33,496 
$250 $126 $205 $581 $97,574 $805 $98,379 
At June 30, 2024 and December 31, 2023, the Company had collateral-dependent commercial loans of $234 million and $220 million, respectively. At June 30, 2024 and December 31, 2023, the Company had collateral-dependent investor real estate loans of $256 million and $92 million, respectively. The collateral for commercial and investor real estate loans generally
consists of business assets including real estate, receivables and equipment. At June 30, 2024 and December 31, 2023, the Company had collateral-dependent residential mortgage and home equity loans and lines totaling $108 million and $93 million, respectively. The collateral for these loans consists of residential real estate.
MODIFICATIONS TO BORROWERS EXPERIENCING FINANCIAL DIFFICULTY
The majority of Regions' commercial and investor real estate modifications to troubled borrowers are the result of renewals of classified loans wherein there has been an interest rate reduction and/or maturity extension (that is considered other than insignificant). Similarly, Regions works to meet the individual needs of troubled consumer borrowers through its CAP. Regions designed the program to allow for customer-tailored modifications with the goal of keeping customers in their homes and avoiding foreclosure where possible. Modifications may be offered to any borrower experiencing financial hardship regardless of the borrower's payment status. Consumer modifications to troubled borrowers primarily involve an interest rate reduction and/or a payment deferral or maturity extension that is considered other than insignificant. All CAP modifications that involve an interest rate reduction, principal forgiveness, other than insignificant payment deferral or term extension and/or a combination of these are disclosed as modifications to troubled borrowers because the customer documents a financial hardship in order to participate. Refer to Note 1 "Summary of Significant Accounting Policies" in the Annual Report on Form 10-K for the year ended December 31, 2023 for additional information regarding the Company's modifications to troubled borrowers.
For each portfolio segment and class, the following tables present the end of period balances of new modifications to troubled borrowers and the related percentage of the loan portfolio period-end balance by the type of modification that occurred in the three and six months ended June 30, 2024 and 2023.
Three Months Ended June 30, 2024
Term ExtensionPayment DeferralTerm Extension and Interest Rate ModificationTotal
$
%(1)
$
%(1)
$
%(1)
$
%(1)
(Dollars in millions)
Commercial and industrial$23 0.05 %$— — %$— — %$23 0.05 %
Commercial real estate mortgage—owner-occupied3 0.05 %— — %— — %3 0.05 %
Total commercial26 0.05 %— — %— — %26 0.05 %
Residential first mortgage43 0.21 %1 — %1 — %45 0.22 %
Home equity lines— — %— — %1 0.05 %1 0.06 %
Home equity loans1 0.05 %— — %2 0.08 %3 0.13 %
Total consumer44 0.13 %1 — %4 0.01 %49 0.15 %
$70 0.07 %$1 — %$4 — %$75 0.08 %
Three Months Ended June 30, 2023
Term ExtensionPayment DeferralTerm Extension and Interest Rate ModificationTotal
$
%(1)
$
%(1)
$
%(1)
$
%(1)
(Dollars in millions)
Commercial and industrial$57 0.11 %$24 0.05 %$— — %$81 0.15 %
Commercial real estate mortgage—owner-occupied8 0.17 %— — %— — %8 0.17 %
Commercial real estate construction—owner-occupied3 0.66 %— 0.15 %— — %3 0.81 %
Total commercial68 0.12 %24 0.04 %— — %92 0.16 %
Commercial investor real estate mortgage63 0.98 %— — %— — %63 0.98 %
Total investor real estate63 0.73 %— — %— — %63 0.73 %
Residential first mortgage27 0.14 %— — %— — %27 0.14 %
Home equity lines— — %— — %1 0.02 %1 0.03 %
Home equity loans2 0.06 %— — %1 0.06 %3 0.11 %
Total consumer29 0.09 %— — %2 0.01 %31 0.09 %
Total$160 0.16 %$24 0.02 %$2 — %$186 0.19 %
Six Months Ended June 30, 2024
Term ExtensionPayment DeferralTerm Extension and Interest Rate ModificationTotal
$
%(1)
$
%(1)
$
%(1)
$
%(1)
(Dollars in millions)
Commercial and industrial$35 0.07 %$— — %$1 — %$36 0.07 %
Commercial real estate mortgage—owner-occupied3 0.06 %— — %— — %3 0.06 %
Total commercial38 0.07 %— — %1 — %39 0.07 %
Commercial investor real estate mortgage100 1.53 %— — %— — %100 1.53 %
Total investor real estate100 1.14 %— — %— — %100 1.14 %
Residential first mortgage80 0.40 %1 0.01 %2 0.01 %83 0.41 %
Home equity lines1 0.01 %— — %2 0.07 %3 0.08 %
Home equity loans2 0.08 %— — %4 0.16 %6 0.24 %
Total consumer83 0.25 %1 — %8 0.02 %92 0.28 %
$221 0.23 %$1 — %$9 0.01 %$231 0.24 %
Six Months Ended June 30, 2023
Term ExtensionPayment DeferralTerm Extension and Interest Rate ModificationTotal
$
%(1)
$
%(1)
$
%(1)
$
%(1)
(Dollars in millions)
Commercial and industrial$61 0.12 %$182 0.35 %$— — %$243 0.47 %
Commercial real estate mortgage—owner-occupied10 0.21 %— — %— — %10 0.21 %
Commercial real estate construction—owner-occupied3 0.66 %— — %— — %3 0.81 %
Total commercial74 0.13 %182 0.32 %— — %256 0.45 %
Commercial investor real estate mortgage63 0.98 %— — %— — %63 0.98 %
Total investor real estate63 0.73 %— — %— — %63 0.73 %
Residential first mortgage49 0.24 %— — %1 0.01 %50 0.25 %
Home equity lines1 0.02 %— — %1 0.04 %2 0.06 %
Home equity loans2 0.10 %— — %3 0.11 %5 0.21 %
Total consumer52 0.16 %— — %5 0.02 %57 0.17 %
Total$189 0.19 %$182 0.18 %$5 0.01 %$376 0.38 %
____
(1) Amounts calculated based upon whole dollar values.
The end of period balance of unfunded commitments related to modifications to troubled borrowers at June 30, 2024 was $52 million and at December 31, 2023 was $106 million.
The following tables present the financial impact of modifications to troubled borrowers during the three and six months ended June 30, 2024 and 2023 by portfolio segment, class of financing receivable, and the type of modification. The tables include new modifications to troubled borrowers, as well as renewals of existing modifications to troubled borrowers.
Three Months Ended June 30, 2024
Term ExtensionPayment DeferralTerm Extension and Interest Rate Modification
Weighted-Average Term Extension Weighted-Average Payment DeferralWeighted-Average Term Extension Weighted-Average Reduction in Interest Rate
(In years, except for percentage data)
Commercial and industrial0.92— — — 
Commercial real estate mortgage—owner-occupied0.67— — — 
Residential first mortgage70.51less than 1%
Home equity lines— — 212 %
Home equity loans7— 253 %
Three Months Ended June 30, 2023
Term ExtensionPayment DeferralTerm Extension and Interest Rate Modification
Weighted-Average Term Extension Weighted-Average Payment Deferral Weighted-Average Term Extension Weighted-Average Reduction in Interest Rate
(In years, except for percentage data)
Commercial and industrial10.5— — 
Commercial real estate mortgage—owner-occupied0.75— — — 
Commercial real estate construction—owner-occupied0.25— — — 
Commercial investor real estate mortgage0.67— — — 
Residential first mortgage5— — — 
Home equity lines— — 201 %
Home equity loans18— 143 %

Six Months Ended June 30, 2024
Term ExtensionPayment DeferralTerm Extension and Interest Rate Modification
Weighted-Average Term Extension Weighted-Average Payment Deferral Weighted-Average Term Extension Weighted-Average Reduction in Interest Rate
(In years, except for percentage data)
Commercial and industrial1.58— — — 
Commercial real estate mortgage—owner-occupied0.67— — — 
Commercial investor real estate mortgage0.58— — — — 
Residential first mortgage70.56less than 1%
Home equity lines— — 212 %
Home equity loans9— 252 %
Six Months Ended June 30, 2023
Term ExtensionPayment DeferralTerm Extension and Interest Rate Modification
Weighted-Average Term Extension Weighted-Average Payment Deferral Weighted-Average Term Extension Weighted-Average Reduction in Interest Rate
(In years, except for percentage data)
Commercial and industrial10.5— — 
Commercial real estate mortgage—owner-occupied0.67— — — 
Commercial real estate construction—owner-occupied0.25— — — 
Commercial investor real estate mortgage0.67— — — 
Residential first mortgage5— 81 %
Home equity lines19— 181 %
Home equity loans15— 162 %
In addition to the financial impacts in the table above, during the six months ended June 30, 2023 there were instances of commercial and industrial payment deferrals in which the amortization period was doubled to maturity.
The following tables include the end of period balances of aging and non-accrual performance for modifications to troubled borrowers modified in the previous twelve-month period by portfolio segment and class as of June 30, 2024 and in the previous six-month period since adoption of the related accounting guidance by portfolio segment and class as of June 30, 2023. Refer to Note 1 and Note 5 in the Annual Report on Form 10-K for the year ended December 31, 2023 for additional information on the adoption of new accounting guidance.
June 30, 2024
Current30-89 DPD90+ DPDNon-Performing LoansTotal
(In millions)
Commercial and industrial$149 $— $— $74 $223 
Commercial real estate mortgage—owner-occupied2 — — 1 3 
Total commercial151 — — 75 226 
Commercial investor real estate mortgage130 — — 136 266 
Total investor real estate130 — — 136 266 
Residential first mortgage99 16 10 4 129 
Home equity lines4 — — — 4 
Home equity loans8 1 — 1 10 
Total consumer111 17 10 5 143 
$392 $17 $10 $216 $635 
June 30, 2023
Current30-89 DPD90+ DPDNon-Performing LoansTotal
(In millions)
Commercial and industrial$198 $2 $— $43 $243 
Commercial real estate mortgage—owner-occupied6 — — 4 10 
Commercial real estate construction—owner-occupied2 — — 1 3 
Total commercial206 2 — 48 256 
Commercial investor real estate mortgage48 — — 15 63 
Total investor real estate48 — — 15 63 
Residential first mortgage44 4 1 1 50 
Home equity lines1 — — 1 2 
Home equity loans4 — — 1 5 
Total consumer49 4 1 3 57 
$303 $6 $1 $66 $376 
For modifications to troubled borrowers, a subsequent payment default is defined in terms of delinquency, when a principal or interest payment is 90 days past due or classified as non-accrual status during the reporting period. As of June 30, 2024, subsequent defaults of the loans restructured as a modification to a troubled borrower during the three and six month periods ended June 30, 2024 totaled $56 million and $135 million, respectively. These amounts were immaterial for the three and six month periods ended June 30, 2023.