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Loans And The Allowance For Credit Losses
 9 Months Ended
Sep. 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:
September 30, 2024December 31, 2023
 (In millions)
Commercial and industrial$49,565 $50,865 
Commercial real estate mortgage—owner-occupied4,873 4,887 
Commercial real estate construction—owner-occupied341 281 
Total commercial54,779 56,033 
Commercial investor real estate mortgage6,562 6,605 
Commercial investor real estate construction2,250 2,245 
Total investor real estate8,812 8,850 
Residential first mortgage20,125 20,207 
Home equity lines3,130 3,221 
Home equity loans2,404 2,439 
Consumer credit card1,372 1,341 
Other consumer—exit portfolio9 43 
Other consumer6,158 6,245 
Total consumer33,198 33,496 
Total loans, net of unearned income$96,789 $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 nine months ended September 30, 2024, and 2023.
 Three Months Ended September 30, 2024
 CommercialInvestor Real
Estate		ConsumerTotal
 (In millions)
Allowance for loan losses, July 1, 2024$736 $233 $652 $1,621 
Provision for loan losses47 10 46 103 
Loan losses:
Charge-offs(71)(12)(60)(143)
Recoveries15 — 11 26 
Net loan losses(56)(12)(49)(117)
Allowance for loan losses, September 30, 2024727 231 649 1,607 
Reserve for unfunded credit commitments, July 1, 202485 8 18 111 
Provision for (benefit from) unfunded credit commitments8 2 — 10 
Reserve for unfunded credit commitments, September 30, 202493 10 18 121 
Allowance for credit losses, September 30, 2024$820 $241 $667 $1,728 
 Three Months Ended September 30, 2023
 CommercialInvestor Real
Estate		ConsumerTotal
 (In millions)
Allowance for loan losses, July 1, 2023$708 $151 $654 $1,513 
Provision for loan losses25 17 93 135 
Loan losses:
Charge-offs(54)— (70)(124)
Recoveries13 — 10 23 
Net loan losses(41)— (60)(101)
Allowance for loan losses, September 30, 2023692 168 687 1,547 
Reserve for unfunded credit commitments, July 1, 202382 19 19 120 
Provision for unfunded credit commitments8 — 2 10 
Reserve for unfunded credit commitments, September 30, 202390 19 21 130 
Allowance for credit losses, September 30, 2023$782 $187 $708 $1,677 
 Nine Months Ended September 30, 2024
 CommercialInvestor Real
Estate		ConsumerTotal
 (In millions)
Allowance for loan losses, January 1, 2024$722 $192 $662 $1,576 
Provision for loan losses166 54 150 370
Loan losses:
Charge-offs(194)(17)(196)(407)
Recoveries33 2 33 68 
Net loan losses(161)(15)(163)(339)
Allowance for loan losses, September 30, 20247272316491,607
Reserve for unfunded credit commitments, January 1, 202492 13 19 124 
Provision for (benefit from) unfunded credit losses1 (3)(1)(3)
Reserve for unfunded credit commitments, September 30, 202493 10 18 121 
Allowance for credit losses, September 30, 2024$820 $241 $667 $1,728 
 Nine Months Ended September 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 losses141 50 195 386 
Loan losses:
Charge-offs(155)— (186)(341)
Recoveries44 — 32 76 
Net loan losses(111)— (154)(265)
Allowance for loan losses, September 30, 2023692 168 687 1,547 
Reserve for unfunded credit commitments, January 1, 202372 21 25 118 
Provision for (benefit from) unfunded credit losses18 (2)(4)12 
Reserve for unfunded credit commitments, September 30, 202390 19 21 130 
Allowance for credit losses, September 30, 2023$782 $187 $708 $1,677 
_____
(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, and home prices 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 September 30, 2024 and December 31, 2023 and gross charge-offs for the year to date period ended September 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.
September 30, 2024
Term LoansRevolving Loans Revolving Loans Converted to Amortizing
Unallocated (1)
Total
20242023202220212020Prior
(In millions)
Commercial and industrial:
Risk rating:
   Pass$5,714 $5,710 $6,969 $3,774 $1,775 $3,855 $18,878 $— $99 $46,774 
   Special Mention76 292 177 19 54 8 327 — — $953 
   Substandard Accrual52 278 263 93 8 73 641 — — $1,408 
   Non-accrual10 104 165 26 5 23 97 — — $430 
Total commercial and industrial$5,852 $6,384 $7,574 $3,912 $1,842 $3,959 $19,943 $— $99 $49,565 
Commercial real estate mortgage—owner-occupied:
Risk rating:
   Pass$630 $705 $845 $858 $544 $883 $94 $— $(5)$4,554 
   Special Mention4 18 47 26 13 48 1 — — $157 
   Substandard Accrual2 5 32 34 11 33 2 — — $119 
   Non-accrual3 2 6 18 5 9 — — — $43 
Total commercial real estate mortgage—owner-occupied:$639 $730 $930 $936 $573 $973 $97 $— $(5)$4,873 
Commercial real estate construction—owner-occupied:
Risk rating:
   Pass$98 $74 $43 $33 $21 $42 $6 $— $— $317 
   Special Mention— 6 8 — — — — — — $14 
   Substandard Accrual— — 4 — — — — — — $4 
   Non-accrual— — — — 1 5 — — — $6 
Total commercial real estate construction—owner-occupied:$98 $80 $55 $33 $22 $47 $6 $— $— $341 
Total commercial$6,589 $7,194 $8,559 $4,881 $2,437 $4,979 $20,046 $— $94 $54,779 
Commercial investor real estate mortgage:
Risk rating:
   Pass$979 $854 $1,645 $996 $326 $248 $325 $— $(2)$5,371 
   Special Mention63 38 209 39 79 9 4 — — $441 
   Substandard Accrual146 63 120 24 — 2 108 — — $463 
   Non-accrual139 46 51 — — 51 — — — $287 
Total commercial investor real estate mortgage$1,327 $1,001 $2,025 $1,059 $405 $310 $437 $— $(2)$6,562 
Commercial investor real estate construction:
Risk rating:
   Pass$123 $340 $641 $— $— $2 $791 $— $(14)$1,883 
   Special Mention— 28 183 — — — 71 — — $282 
   Substandard Accrual— — 63 — — — 22 — — $85 
   Non-accrual— — — — — — — — — $— 
Total commercial investor real estate construction$123 $368 $887 $— $— $2 $884 $— $(14)$2,250 
Total investor real estate$1,450 $1,369 $2,912 $1,059 $405 $312 $1,321 $— $(16)$8,812 
Residential first mortgage:
FICO scores:
   Above 720$825 $1,986 $2,798 $4,154 $4,087 $2,830 $— $— $— $16,680 
   681-72088 198 265 284 236 307 — — — 1,378 
   620-68038 83 130 134 103 300 — — — 788 
   Below 6208 60 131 141 95 425 — — — 860 
   Data not available19 32 17 41 45 90 3 — 172 419 
Total residential first mortgage$978 $2,359 $3,341 $4,754 $4,566 $3,952 $3 $— $172 $20,125 
September 30, 2024
Term LoansRevolving Loans Revolving Loans Converted to Amortizing
Unallocated (1)
Total
20242023202220212020Prior
(In millions)
Home equity lines:
FICO scores:
   Above 720$— $— $— $— $— $— $2,314 $48 $— $2,362 
   681-720— — — — — — 344 10 — 354 
   620-680— — — — — — 184 10 — 194 
   Below 620— — — — — — 95 7 — 102 
   Data not available— — — — — — 83 5 30 118 
Total home equity lines$— $— $— $— $— $— $3,020 $80 $30 $3,130 
Home equity loans:
FICO scores:
   Above 720$252 $278 $322 $344 $171 $506 $— $— $— $1,873 
   681-72040 44 51 42 18 60 — — — 255 
   620-68016 20 24 21 9 51 — — — 141 
   Below 6201 6 13 14 5 38 — — — 77 
   Data not available1 1 4 6 4 26 — — 16 58 
Total home equity loans$310 $349 $414 $427 $207 $681 $— $— $16 $2,404 
Consumer credit card:
FICO scores:
Above 720$— $— $— $— $— $— $790 $— $— $790 
681-720— — — — — — 266 — — 266 
620-680— — — — — — 218 — — 218 
Below 620— — — — — — 106 — — 106 
Data not available— — — — — — 23 — (31)(8)
Total consumer credit card$— $— $— $— $— $— $1,403 $— $(31)$1,372 
Other consumer—exit portfolios:
FICO scores:
   Above 720$— $— $— $— $— $5 $— $— $— $5 
   681-720— — — — — 1 — — — 1 
   620-680— — — — — 2 — — — 2 
   Below 620— — — — — 2 — — — 2 
   Data not available— — — — — — — — (1)(1)
Total other consumer—exit portfolios$— $— $— $— $— $10 $— $— $— $(1)$9 
Other consumer(2):
FICO scores:
   Above 720$717 $1,091 $1,387 $441 $246 $227 $116 $— $— $4,225 
   681-720122 215 306 102 54 43 62 — — 904 
   620-68063 126 203 72 33 28 51 — — 576 
   Below 62012 47 120 45 21 16 32 — — 293 
   Data not available82 4 10 7 5 161 2 — (111)160 
Total other consumer$996 $1,483 $2,026 $667 $359 $475 $263 $— $(111)$6,158 
Total consumer loans$2,284 $4,191 $5,781 $5,848 $5,132 $5,118 $4,689 $80 $75 $33,198 
Total Loans$10,323 $12,754 $17,252 $11,788 $7,974 $10,409 $26,056 $80 $153 $96,789 
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 nine months ended September 30, 2024 and 2023.
Nine Months Ended September 30, 2024
Term LoansRevolving LoansTotal
20242023202220212020Prior
(In millions)
Commercial and industrial$6 $52 $51 $12 $6 $9 $56 $192 
Commercial real estate mortgage—owner-occupied— — — 1 — 1 — 2 
Total commercial6 52 51 13 6 10 56 194 
Commercial investor real estate mortgage— — 6 5 — 6 — 17 
Total investor real estate— — 6 5 — 6 — 17 
Residential first mortgage— — — — — 1 — 1 
Home equity lines— — — — — — 3 3 
Consumer credit card— — — — — — 47 47 
Other consumer—exit portfolios— — — — — 1 — 1 
Other consumer(1)
28 30 46 15 7 11 7 144 
Total consumer28 30 46 15 7 13 57 196 
Total gross charge-offs$34 $82 $103 $33 $13 $29 $113 $407 
Nine Months Ended September 30, 2023
Term LoansRevolving LoansTotal
20232022202120202019Prior
(In millions)
Commercial and industrial$3 $49 $47 $22 $12 $12 $9 $154 
Commercial real estate mortgage—owner-occupied1 — — — — — — 1 
Total commercial4 49 47 22 12 12 9 155 
Residential first mortgage— — — — — 1 — 1 
Home equity lines— — — — — — 3 3 
Home equity loans— — — — — 1 — 1 
Consumer credit card— — — — — — 38 38 
Other consumer—exit portfolios— — — — 4 7 — 11 
Other consumer(1)
38 40 25 13 7 9 — 132 
Total consumer38 40 25 13 11 18 41 186 
Total gross charge-offs$42 $89 $72 $35 $23 $30 $50 $341 
______
(1)Other consumer class includes overdraft gross charge-offs. The majority of overdraft gross charge-offs for the nine months ended September 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 September 30, 2024 and December 31, 2023. Loans on non-accrual status with no related allowance totaled $195 million and $280 million and were comprised of commercial and investor real estate loans at September 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.
 September 30, 2024
 Accrual Loans   
 30-59 DPD60-89 DPD90+ DPDTotal
30+ DPD		Total
Accrual		Non-accrualTotal
 (In millions)
Commercial and industrial$39 $43 $3 $85 $49,135 $430 $49,565 
Commercial real estate mortgage—owner-occupied3 1 1 5 4,830 43 4,873 
Commercial real estate construction—owner-occupied— — — — 335 6 341 
Total commercial42 44 4 90 54,300 479 54,779 
Commercial investor real estate mortgage45 — 40 85 6,275 287 6,562 
Commercial investor real estate construction— — — — 2,250 — 2,250 
Total investor real estate45 — 40 85 8,525 287 8,812 
Residential first mortgage112 55 121 288 20,102 23 20,125 
Home equity lines15 9 16 40 3,104 26 3,130 
Home equity loans8 4 7 19 2,398 6 2,404 
Consumer credit card10 9 19 38 1,372 — 1,372 
Other consumer—exit portfolios1 — — 1 9 — 9 
Other consumer45 22 22 89 6,158 — 6,158 
Total consumer191 99 185 475 33,143 55 33,198 
$278 $143 $229 $650 $95,968 $821 $96,789 
 
 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 September 30, 2024 and December 31, 2023, the Company had collateral-dependent commercial loans of $218 million and $220 million, respectively. At September 30, 2024 and December 31, 2023, the Company had collateral-dependent investor
real estate loans of $199 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 September 30, 2024 and December 31, 2023, the Company had collateral-dependent residential mortgage and home equity loans and lines totaling $113 million and $93 million, respectively. The collateral for these loans consists of residential real estate. 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 details for the criteria of collateral dependent loans.
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 nine months ended September 30, 2024 and 2023.
Three Months Ended September 30, 2024
Term ExtensionPayment DeferralTerm Extension and Interest Rate ModificationOtherTotal
$
%(1)
$
%(1)
$
%(1)
$
%(1)
$
%(1)
(Dollars in millions)
Commercial and industrial$21 0.04 %$— — %$33 0.07 %$— — %$54 0.11 %
Commercial real estate mortgage—owner-occupied2 0.04 %— — %— — %— — %2 0.04 %
Total commercial23 0.04 %— — %33 0.06 %— — %56 0.10 %
Commercial investor real estate mortgage72 1.10 %— — %— — %29 0.44 %101 1.54 %
Total investor real estate72 0.82 %— — %— — %29 0.33 %101 1.14 %
Residential first mortgage37 0.18 %1 0.01 %2 0.01 %— — %40 0.20 %
Home equity lines— — %— — %4 0.13 %— — %4 0.13 %
Home equity loans1 0.05 %— — %2 0.08 %— — %3 0.13 %
Total consumer38 0.11 %1 — %8 0.02 %— — %47 0.14 %
$133 0.14 %$1 — %$41 0.04 %$29 0.03 %$204 0.21 %
Three Months Ended September 30, 2023
Term ExtensionPayment DeferralTerm Extension and Interest Rate ModificationTerm Extension and Payment DeferralTotal
$
%(1)
$
%(1)
$
%(1)
$
%(1)
$
%(1)
(Dollars in millions)
Commercial and industrial$197 0.38 %$9 0.02 %$— — %$48 0.09 %$254 0.49 %
Commercial real estate mortgage—owner-occupied3 0.06 %— — %— — %— — %3 0.06 %
Total commercial200 0.35 %9 0.02 %— — %48 0.08 %257 0.45 %
Commercial investor real estate mortgage89 1.39 %— — %— — %— — %89 1.39 %
Commercial investor real estate construction2 0.08 %— — %— — %— — %2 0.08 %
Total investor real estate91 1.04 %— — %— — %— — %91 1.04 %
Residential first mortgage25 0.12 %2 0.01 %1 0.01 %— — %28 0.14 %
Home equity lines— — %— — %2 0.04 %— — %2 0.05 %
Home equity loans1 0.04 %— — %1 0.05 %— — %2 0.09 %
Total consumer26 0.08 %2 0.01 %4 0.01 %— — %32 0.10 %
Total$317 0.32 %$11 0.01 %$4 — %$48 0.05 %$380 0.38 %
Nine Months Ended September 30, 2024
Term ExtensionPayment DeferralTerm Extension and Interest Rate ModificationOtherTotal
$
%(1)
$
%(1)
$
%(1)
$
%(1)
$
%(1)
(Dollars in millions)
Commercial and industrial$51 0.10 %$— — %$33 0.07 %$— — %$84 0.17 %
Commercial real estate mortgage—owner-occupied4 0.08 %— — %— — %— — %4 0.09 %
Total commercial55 0.10 %— — %33 0.06 %— — %88 0.16 %
Commercial investor real estate mortgage99 1.51 %— — %— — %29 0.44 %128 1.95 %
Total investor real estate99 1.13 %— — %— — %29 0.33 %128 1.46 %
Residential first mortgage115 0.57 %2 0.01 %4 0.02 %— — %121 0.60 %
Home equity lines— 0.01 %— — %7 0.21 %— — %7 0.22 %
Home equity loans3 0.13 %— — %6 0.24 %— — %9 0.37 %
Total consumer118 0.36 %2 0.01 %17 0.05 %— — %137 0.41 %
$272 0.28 %$2 — %$50 0.05 %$29 0.03 %$353 0.36 %
Nine Months Ended September 30, 2023
Term ExtensionPayment DeferralTerm Extension and Interest Rate ModificationTerm Extension and Payment DeferralTotal
$
%(1)
$
%(1)
$
%(1)
$
%(1)
$
%(1)
(Dollars in millions)
Commercial and industrial$255 0.49 %$148 0.29 %$— — %$48 0.09 %$451 0.87 %
Commercial real estate mortgage—owner-occupied9 0.18 %— — %— — %— — %9 0.18 %
Commercial real estate construction—owner-occupied2 0.71 %— — %— — %— — %2 0.86 %
Total commercial266 0.47 %148 0.26 %— — %48 0.08 %462 0.81 %
Commercial investor real estate mortgage151 2.35 %— — %— — %— — %151 2.35 %
Commercial investor real estate construction2 0.08 %— — %— — %— — %2 0.08 %
Total investor real estate153 1.75 %— — %— — %— — %153 1.75 %
Residential first mortgage72 0.36 %3 0.01 %3 0.02 %— — %78 0.39 %
Home equity lines1 0.02 %— — %2 0.08 %— — %3 0.10 %
Home equity loans3 0.13 %— — %4 0.15 %— — %7 0.29 %
Total consumer76 0.23 %3 0.01 %9 0.03 %— — %88 0.26 %
Total$495 0.45 %$151 0.15 %$9 0.01 %$48 0.05 %$703 0.71 %
____
(1) Amounts calculated based upon whole dollar values.
The end of period balance of unfunded commitments related to modifications to troubled borrowers at September 30, 2024 was $65 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 nine months ended September 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 September 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 industrial1.08— 1.17less than 2%
Commercial real estate mortgage—owner-occupied1.42— — — 
Commercial investor real estate mortgage0.17— — — 
Residential first mortgage70.424less than 1%
Home equity lines— — 242 %
Home equity loans16— 243 %
Three Months Ended September 30, 2023
Term ExtensionPayment DeferralTerm Extension and Interest Rate ModificationTerm Extension and Payment Deferral
Weighted-Average Term Extension Weighted-Average Payment Deferral Weighted-Average Term Extension Weighted-Average Reduction in Interest RateWeighted-Average Term Extension Weighted-Average Payment Deferral
(In years, except for percentage data)
Commercial and industrial0.670.25— — 22
Commercial real estate mortgage—owner-occupied0.92— — — — — 
Commercial investor real estate mortgage0.58— — — — — 
Commercial investor real estate construction0.42— — — — — 
Residential first mortgage70.9271 %— — 
Home equity lines— — 202 %— — 
Home equity loans12— 152 %— — 

Nine Months Ended September 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 industrial1.83— 1.17less than 2%
Commercial real estate mortgage—owner-occupied1.00— — — 
Commercial investor real estate mortgage0.75— — — 
Residential first mortgage70.55less than 1%
Home equity lines— — 232 %
Home equity loans12— 252 %
Nine Months Ended September 30, 2023
Term ExtensionPayment DeferralTerm Extension and Interest Rate ModificationTerm Extension and Payment Deferral
Weighted-Average Term ExtensionWeighted-Average Payment Deferral Weighted-Average Term Extension Weighted-Average Reduction in Interest RateWeighted-Average Term Extension Weighted-Average Payment Deferral
(In years, except for percentage data)
Commercial and industrial0.750.5— — 22
Commercial real estate mortgage—owner-occupied0.83— — — — — 
Commercial real estate construction—owner-occupied0.25— — — 
Commercial investor real estate mortgage0.67— — — — — 
Commercial investor real estate construction0.42— — — — — 
Residential first mortgage60.9271 %— — 
Home equity lines18— 192 %— — 
Home equity loans14— 152 %— — 
In addition to the financial impacts in the table above, during the three and nine months ended September 30, 2024, the Company had an other modification type in which a commercial investor real estate loan was modified from amortizing to an interest-only structure. Under this structure the interest was extended for an average of two months and principal payments were deferred. Also during the nine months ended September 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 September 30, 2024 and in the previous nine-month period since adoption of the related accounting guidance by portfolio segment and class as of September 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.
September 30, 2024
Current30-89 DPD90+ DPDNon-Performing LoansTotal
(In millions)
Commercial and industrial$101 $— $— $46 $147 
Commercial real estate mortgage—owner-occupied3 — — 2 5 
Total commercial104 — — 48 152 
Commercial investor real estate mortgage103 27 — 134 264 
Total investor real estate103 27 — 134 264 
Residential first mortgage106 20 11 5 142 
Home equity lines7 — — 1 8 
Home equity loans8 1 — 1 10 
Total consumer121 21 11 7 160 
$328 $48 $11 $189 $576 
September 30, 2023
Current30-89 DPD90+ DPDNon-Performing LoansTotal
(In millions)
Commercial and industrial$258 $2 $5 $186 $451 
Commercial real estate mortgage—owner-occupied4 — — 5 9 
Commercial real estate construction—owner-occupied— — — 2 2 
Total commercial262 2 5 193 462 
Commercial investor real estate mortgage40 48 — 63 151 
Commercial investor real estate construction2 — — — 2 
Total investor real estate42 48 — 63 153 
Residential first mortgage63 10 3 2 78 
Home equity lines3 — — — 3 
Home equity loans5 — — 2 7 
Total consumer71 10 3 4 88 
$375 $60 $8 $260 $703 
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 September 30, 2024, subsequent defaults of the loans restructured as a modification to a troubled borrower during the three and nine months ended September 30, 2024 totaled $49 million and $183 million, respectively. These amounts were immaterial for the three and nine months ended September 30, 2023.