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Credit Quality And Allowance For Credit Losses | 6 Months Ended
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Jun. 30, 2023
Credit Loss [Abstract] |
Credit Quality And Allowance For Credit Losses | CREDIT QUALITY AND ALLOWANCE FOR CREDIT LOSSES The following table presents an aging analysis of the amortized cost basis of loans.
| Loans Past Due and Still Accruing |  |  |  |  |  |
(in millions) | 30-59 Days |  | 60-89 Days |  | 90 Days or More |  | Total |  | Nonaccrual Loans |  | Current Loans |  | Total Loans
June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |  |
Business loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 52 |  |  | $ | 11 |  |  | $ | 7 |  |  | $ | 70 |  |  | $ | 93 |  |  | $ | 31,582 |  |  | $ | 31,745 |
Real estate construction: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Real Estate business line (a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,422 |  |  | 3,422 |
Other business lines (b) | 13 |  |  | 13 |  |  | — |  |  | 26 |  |  | 2 |  |  | 533 |  |  | 561 |
Total real estate construction | 13 |  |  | 13 |  |  | — |  |  | 26 |  |  | 2 |  |  | 3,955 |  |  | 3,983 |
Commercial mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Real Estate business line (a) | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 4,982 |  |  | 4,983 |
Other business lines (b) | 24 |  |  | 8 |  |  | 1 |  |  | 33 |  |  | 36 |  |  | 8,799 |  |  | 8,868 |
Total commercial mortgage | 24 |  |  | 8 |  |  | 1 |  |  | 33 |  |  | 37 |  |  | 13,781 |  |  | 13,851 |
Lease financing | 5 |  |  | — |  |  | — |  |  | 5 |  |  | — |  |  | 751 |  |  | 756 |
International | 3 |  |  | — |  |  | — |  |  | 3 |  |  | 4 |  |  | 1,275 |  |  | 1,282 |
Total business loans | 97 |  |  | 32 |  |  | 8 |  |  | 137 |  |  | 136 |  |  | 51,344 |  |  | 51,617 |
Retail loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 8 |  |  | — |  |  | — |  |  | 8 |  |  | 33 |  |  | 1,853 |  |  | 1,894 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity | 6 |  |  | 2 |  |  | — |  |  | 8 |  |  | 17 |  |  | 1,747 |  |  | 1,772 |
Other consumer | 3 |  |  | 2 |  |  | 1 |  |  | 6 |  |  | — |  |  | 475 |  |  | 481 |
Total consumer | 9 |  |  | 4 |  |  | 1 |  |  | 14 |  |  | 17 |  |  | 2,222 |  |  | 2,253 |
Total retail loans | 17 |  |  | 4 |  |  | 1 |  |  | 22 |  |  | 50 |  |  | 4,075 |  |  | 4,147 |
Total loans | $ | 114 |  |  | $ | 36 |  |  | $ | 9 |  |  | $ | 159 |  |  | $ | 186 |  |  | $ | 55,419 |  |  | $ | 55,764 |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |
Business loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 238 |  |  | $ | 13 |  |  | $ | 20 |  |  | $ | 271 |  |  | $ | 142 |  |  | $ | 30,496 |  |  | $ | 30,909 |
Real estate construction: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Real Estate business line (a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 2,505 |  |  | 2,505 |
Other business lines (b) | 2 |  |  | — |  |  | — |  |  | 2 |  |  | 3 |  |  | 595 |  |  | 600 |
Total real estate construction | 2 |  |  | — |  |  | — |  |  | 2 |  |  | 3 |  |  | 3,100 |  |  | 3,105 |
Commercial mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial Real Estate business line (a) | — |  |  | 6 |  |  | — |  |  | 6 |  |  | 1 |  |  | 4,674 |  |  | 4,681 |
Other business lines (b) | 64 |  |  | 5 |  |  | 3 |  |  | 72 |  |  | 22 |  |  | 8,531 |  |  | 8,625 |
Total commercial mortgage | 64 |  |  | 11 |  |  | 3 |  |  | 78 |  |  | 23 |  |  | 13,205 |  |  | 13,306 |
Lease financing | 6 |  |  | — |  |  | — |  |  | 6 |  |  | — |  |  | 754 |  |  | 760 |
International | — |  |  | 9 |  |  | — |  |  | 9 |  |  | 3 |  |  | 1,185 |  |  | 1,197 |
Total business loans | 310 |  |  | 33 |  |  | 23 |  |  | 366 |  |  | 171 |  |  | 48,740 |  |  | 49,277 |
Retail loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 22 |  |  | — |  |  | — |  |  | 22 |  |  | 53 |  |  | 1,739 |  |  | 1,814 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity | 4 |  |  | 3 |  |  | — |  |  | 7 |  |  | 15 |  |  | 1,754 |  |  | 1,776 |
Other consumer | 5 |  |  | 1 |  |  | — |  |  | 6 |  |  | 1 |  |  | 528 |  |  | 535 |
Total consumer | 9 |  |  | 4 |  |  | — |  |  | 13 |  |  | 16 |  |  | 2,282 |  |  | 2,311 |
Total retail loans | 31 |  |  | 4 |  |  | — |  |  | 35 |  |  | 69 |  |  | 4,021 |  |  | 4,125 |
Total loans | $ | 341 |  |  | $ | 37 |  |  | $ | 23 |  |  | $ | 401 |  |  | $ | 240 |  |  | $ | 52,761 |  |  | $ | 53,402 |
(a)Primarily loans to real estate developers. (b)Primarily loans secured by owner-occupied real estate. The following table presents loans by credit quality indicator and vintage year. Credit quality indicator is based on internal risk ratings assigned to each business loan at the time of approval and subjected to subsequent reviews, generally at least annually, and to pools of retail loans with similar risk characteristics. Vintage year is the year of origination or major modification.
| June 30, 2023 |  |
| Vintage Year |  |  |  |  |  |  |  |
(in millions) | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior |  | Revolvers |  | Revolvers Converted to Term |  | Total |  |
Business loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | $ | 2,304 |  |  | $ | 3,532 |  |  | $ | 2,931 |  |  | $ | 775 |  |  | $ | 760 |  |  | $ | 1,223 |  |  | $ | 18,699 |  |  | $ | 10 |  |  | $ | 30,234 |  |  |
Criticized (b) | 15 |  |  | 104 |  |  | 273 |  |  | 48 |  |  | 107 |  |  | 85 |  |  | 877 |  |  | 2 |  |  | 1,511 |  |  |
Total commercial | 2,319 |  |  | 3,636 |  |  | 3,204 |  |  | 823 |  |  | 867 |  |  | 1,308 |  |  | 19,576 |  |  | 12 |  |  | 31,745 |  |  |
Commercial gross charge-offs | — |  |  | 2 |  |  | 2 |  |  | 1 |  |  | 2 |  |  | 10 |  |  | 3 |  |  | — |  |  | 20 |  |  |
Real estate construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 181 |  |  | 1,401 |  |  | 1,473 |  |  | 472 |  |  | 115 |  |  | 53 |  |  | 249 |  |  | — |  |  | 3,944 |  |  |
Criticized (b) | — |  |  | 29 |  |  | 8 |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 39 |  |  |
Total real estate construction | 181 |  |  | 1,430 |  |  | 1,481 |  |  | 474 |  |  | 115 |  |  | 53 |  |  | 249 |  |  | — |  |  | 3,983 |  |  |
Real estate construction gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |
Commercial mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 1,058 |  |  | 3,316 |  |  | 2,390 |  |  | 1,867 |  |  | 1,275 |  |  | 2,780 |  |  | 798 |  |  | — |  |  | 13,484 |  |  |
Criticized (b) | — |  |  | 79 |  |  | 40 |  |  | 13 |  |  | 86 |  |  | 148 |  |  | 1 |  |  | — |  |  | 367 |  |  |
Total commercial mortgage | 1,058 |  |  | 3,395 |  |  | 2,430 |  |  | 1,880 |  |  | 1,361 |  |  | 2,928 |  |  | 799 |  |  | — |  |  | 13,851 |  |  |
Commercial mortgage gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |
Lease financing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 102 |  |  | 275 |  |  | 121 |  |  | 56 |  |  | 41 |  |  | 129 |  |  | — |  |  | — |  |  | 724 |  |  |
Criticized (b) | 5 |  |  | 9 |  |  | 3 |  |  | 2 |  |  | 7 |  |  | 6 |  |  | — |  |  | — |  |  | 32 |  |  |
Total lease financing | 107 |  |  | 284 |  |  | 124 |  |  | 58 |  |  | 48 |  |  | 135 |  |  | — |  |  | — |  |  | 756 |  |  |
Lease financing gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |
International |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 344 |  |  | 156 |  |  | 119 |  |  | 44 |  |  | 71 |  |  | 24 |  |  | 487 |  |  | — |  |  | 1,245 |  |  |
Criticized (b) | 1 |  |  | 3 |  |  | 5 |  |  | 1 |  |  | — |  |  | 11 |  |  | 16 |  |  | — |  |  | 37 |  |  |
Total international | 345 |  |  | 159 |  |  | 124 |  |  | 45 |  |  | 71 |  |  | 35 |  |  | 503 |  |  | — |  |  | 1,282 |  |  |
International gross charge-offs | 1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  |
Total business loans | 4,010 |  |  | 8,904 |  |  | 7,363 |  |  | 3,280 |  |  | 2,462 |  |  | 4,459 |  |  | 21,127 |  |  | 12 |  |  | 51,617 |  |  |
Retail loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 180 |  |  | 306 |  |  | 388 |  |  | 467 |  |  | 135 |  |  | 385 |  |  | — |  |  | — |  |  | 1,861 |  |  |
Criticized (b) | 1 |  |  | 2 |  |  | 1 |  |  | — |  |  | 1 |  |  | 28 |  |  | — |  |  | — |  |  | 33 |  |  |
Total residential mortgage | 181 |  |  | 308 |  |  | 389 |  |  | 467 |  |  | 136 |  |  | 413 |  |  | — |  |  | — |  |  | 1,894 |  |  |
Residential mortgage gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8 |  |  | 1,698 |  |  | 42 |  |  | 1,748 |  |  |
Criticized (b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 21 |  |  | 3 |  |  | 24 |  |  |
Total home equity | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8 |  |  | 1,719 |  |  | 45 |  |  | 1,772 |  |  |
Home equity gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | 1 |  |  |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 23 |  |  | 44 |  |  | 32 |  |  | 9 |  |  | 7 |  |  | 8 |  |  | 353 |  |  | — |  |  | 476 |  |  |
Criticized (b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 2 |  |  | — |  |  | 5 |  |  |
Total other consumer | 23 |  |  | 44 |  |  | 32 |  |  | 9 |  |  | 7 |  |  | 11 |  |  | 355 |  |  | — |  |  | 481 |  |  |
Other consumer gross charge-offs | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  |
Total consumer | 23 |  |  | 44 |  |  | 32 |  |  | 9 |  |  | 7 |  |  | 19 |  |  | 2,074 |  |  | 45 |  |  | 2,253 |  |  |
Total retail loans | 204 |  |  | 352 |  |  | 421 |  |  | 476 |  |  | 143 |  |  | 432 |  |  | 2,074 |  |  | 45 |  |  | 4,147 |  |  |
Total loans | $ | 4,214 |  |  | $ | 9,256 |  |  | $ | 7,784 |  |  | $ | 3,756 |  |  | $ | 2,605 |  |  | $ | 4,891 |  |  | $ | 23,201 |  |  | $ | 57 |  |  | $ | 55,764 |  |  |
| December 31, 2022 |  |
| Vintage Year |  |  |  |  |  |  |  |
| 2022 |  | 2021 |  | 2020 |  | 2019 |  | 2018 |  | Prior |  | Revolvers |  | Revolvers Converted to Term |  | Total |  |
Business loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | $ | 3,946 |  |  | $ | 3,509 |  |  | $ | 917 |  |  | $ | 1,041 |  |  | $ | 598 |  |  | $ | 1,030 |  |  | $ | 18,604 |  |  | $ | 9 |  |  | $ | 29,654 |  |  |
Criticized (b) | 75 |  |  | 274 |  |  | 81 |  |  | 69 |  |  | 45 |  |  | 78 |  |  | 632 |  |  | 1 |  |  | 1,255 |  |  |
Total commercial | 4,021 |  |  | 3,783 |  |  | 998 |  |  | 1,110 |  |  | 643 |  |  | 1,108 |  |  | 19,236 |  |  | 10 |  |  | 30,909 |  |  |
Real estate construction: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 836 |  |  | 1,134 |  |  | 633 |  |  | 162 |  |  | 102 |  |  | 28 |  |  | 207 |  |  | — |  |  | 3,102 |  |  |
Criticized (b) | — |  |  | — |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  |
Total real estate construction | 836 |  |  | 1,134 |  |  | 636 |  |  | 162 |  |  | 102 |  |  | 28 |  |  | 207 |  |  | — |  |  | 3,105 |  |  |
Commercial mortgage: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 3,349 |  |  | 2,501 |  |  | 1,825 |  |  | 1,394 |  |  | 1,050 |  |  | 2,182 |  |  | 838 |  |  | — |  |  | 13,139 |  |  |
Criticized (b) | 7 |  |  | 5 |  |  | 7 |  |  | 32 |  |  | 31 |  |  | 75 |  |  | 10 |  |  | — |  |  | 167 |  |  |
Total commercial mortgage | 3,356 |  |  | 2,506 |  |  | 1,832 |  |  | 1,426 |  |  | 1,081 |  |  | 2,257 |  |  | 848 |  |  | — |  |  | 13,306 |  |  |
Lease financing |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 316 |  |  | 140 |  |  | 64 |  |  | 47 |  |  | 37 |  |  | 130 |  |  | — |  |  | — |  |  | 734 |  |  |
Criticized (b) | 10 |  |  | — |  |  | 2 |  |  | 8 |  |  | 5 |  |  | 1 |  |  | — |  |  | — |  |  | 26 |  |  |
Total lease financing | 326 |  |  | 140 |  |  | 66 |  |  | 55 |  |  | 42 |  |  | 131 |  |  | — |  |  | — |  |  | 760 |  |  |
International |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 317 |  |  | 161 |  |  | 55 |  |  | 88 |  |  | 19 |  |  | 14 |  |  | 498 |  |  | — |  |  | 1,152 |  |  |
Criticized (b) | 12 |  |  | — |  |  | 3 |  |  | — |  |  | 3 |  |  | 10 |  |  | 17 |  |  | — |  |  | 45 |  |  |
Total international | 329 |  |  | 161 |  |  | 58 |  |  | 88 |  |  | 22 |  |  | 24 |  |  | 515 |  |  | — |  |  | 1,197 |  |  |
Total business loans | 8,868 |  |  | 7,724 |  |  | 3,590 |  |  | 2,841 |  |  | 1,890 |  |  | 3,548 |  |  | 20,806 |  |  | 10 |  |  | 49,277 |  |  |
Retail loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 327 |  |  | 398 |  |  | 480 |  |  | 133 |  |  | 68 |  |  | 355 |  |  | — |  |  | — |  |  | 1,761 |  |  |
Criticized (b) | 4 |  |  | — |  |  | — |  |  | 9 |  |  | 1 |  |  | 39 |  |  | — |  |  | — |  |  | 53 |  |  |
Total residential mortgage | 331 |  |  | 398 |  |  | 480 |  |  | 142 |  |  | 69 |  |  | 394 |  |  | — |  |  | — |  |  | 1,814 |  |  |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | 1,708 |  |  | 40 |  |  | 1,757 |  |  |
Criticized (b) | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 17 |  |  | 2 |  |  | 19 |  |  |
Total home equity | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9 |  |  | 1,725 |  |  | 42 |  |  | 1,776 |  |  |
Other consumer |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass (a) | 69 |  |  | 38 |  |  | 50 |  |  | 8 |  |  | 1 |  |  | 10 |  |  | 355 |  |  | — |  |  | 531 |  |  |
Criticized (b) | — |  |  | — |  |  | — |  |  | 1 |  |  | — |  |  | — |  |  | 3 |  |  | — |  |  | 4 |  |  |
Total other consumer | 69 |  |  | 38 |  |  | 50 |  |  | 9 |  |  | 1 |  |  | 10 |  |  | 358 |  |  | — |  |  | 535 |  |  |
Total consumer | 69 |  |  | 38 |  |  | 50 |  |  | 9 |  |  | 1 |  |  | 19 |  |  | 2,083 |  |  | 42 |  |  | 2,311 |  |  |
Total retail loans | 400 |  |  | 436 |  |  | 530 |  |  | 151 |  |  | 70 |  |  | 413 |  |  | 2,083 |  |  | 42 |  |  | 4,125 |  |  |
Total loans | $ | 9,268 |  |  | $ | 8,160 |  |  | $ | 4,120 |  |  | $ | 2,992 |  |  | $ | 1,960 |  |  | $ | 3,961 |  |  | $ | 22,889 |  |  | $ | 52 |  |  | $ | 53,402 |  |  |
(a)Includes all loans not included in the categories of special mention, substandard or nonaccrual. (b)Includes loans with an internal rating of special mention, substandard loans for which the accrual of interest has not been discontinued and nonaccrual loans. Special mention loans have potential credit weaknesses that deserve management’s close attention, such as loans to borrowers who may be experiencing financial difficulties that may result in deterioration of repayment prospects from the borrower at some future date. Accruing substandard loans have a well-defined weakness, or weaknesses, such as loans to borrowers who may be experiencing losses from operations or inadequate liquidity of a degree and duration that jeopardizes the orderly repayment of the loan. Substandard loans are also distinguished by the distinct possibility of loss in the future if these weaknesses are not corrected. Nonaccrual loans are loans for which the accrual of interest has been discontinued. For further information regarding nonaccrual loans, refer to the Nonperforming Assets subheading in Note 1 - Basis of Presentation and Accounting Policies on page F-49 in the Corporation's 2022 Annual Report. These categories are generally consistent with the "special mention" and "substandard" categories as defined by regulatory authorities. A minority of nonaccrual loans are consistent with the "doubtful" category. Loan interest receivable totaled $307 million and $261 million at June 30, 2023 and December 31, 2022, respectively, and was included in accrued income and other assets on the Consolidated Balance Sheets. Allowance for Credit Losses The following table details the changes in the allowance for credit losses.
| 2023 |  | 2022
(in millions) | Business Loans |  | Retail Loans |  | Total |  | Business Loans |  | Retail Loans |  | Total
Three Months Ended June 30 |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period: |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses | $ | 570 |  |  | $ | 71 |  |  | $ | 641 |  |  | $ | 493 |  |  | $ | 61 |  |  | $ | 554 |
Allowance for credit losses on lending-related commitments | 39 |  |  | 13 |  |  | 52 |  |  | 33 |  |  | 12 |  |  | 45 |
Allowance for credit losses | 609 |  |  | 84 |  |  | 693 |  |  | 526 |  |  | 73 |  |  | 599 |
Loan charge-offs | (10) |  |  | (1) |  |  | (11) |  |  | (13) |  |  | — |  |  | (13) |
Recoveries on loans previously charged-off | 13 |  |  | — |  |  | 13 |  |  | 12 |  |  | 1 |  |  | 13 |
Net loan recoveries (charge-offs) | 3 |  |  | (1) |  |  | 2 |  |  | (1) |  |  | 1 |  |  | — |
Provision for credit losses: |  |  |  |  |  |  |  |  |  |  |
Provision for loan losses | 41 |  |  | — |  |  | 41 |  |  | 10 |  |  | (1) |  |  | 9 |
Provision for credit losses on lending-related commitments | (5) |  |  | (3) |  |  | (8) |  |  | 1 |  |  | — |  |  | 1 |
Provision for credit losses | 36 |  |  | (3) |  |  | 33 |  |  | 11 |  |  | (1) |  |  | 10 |
Balance at end of period: |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses | 614 |  |  | 70 |  |  | 684 |  |  | 502 |  |  | 61 |  |  | 563 |
Allowance for credit losses on lending-related commitments | 34 |  |  | 10 |  |  | 44 |  |  | 34 |  |  | 12 |  |  | 46 |
Allowance for credit losses | $ | 648 |  |  | $ | 80 |  |  | $ | 728 |  |  | $ | 536 |  |  | $ | 73 |  |  | $ | 609 |
Six Months Ended June 30 |  |  |  |  |  |  |  |  |  |  |
Balance at beginning of period |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses | $ | 541 |  |  | $ | 69 |  |  | $ | 610 |  |  | $ | 531 |  |  | $ | 57 |  |  | $ | 588 |
Allowance for credit losses on lending-related commitments | 40 |  |  | 11 |  |  | 51 |  |  | 24 |  |  | 6 |  |  | 30 |
Allowance for credit losses | 581 |  |  | 80 |  |  | 661 |  |  | 555 |  |  | 63 |  |  | 618 |
Loan charge-offs | (21) |  |  | (2) |  |  | (23) |  |  | (30) |  |  | (1) |  |  | (31) |
Recoveries on loans previously charged-off | 26 |  |  | 1 |  |  | 27 |  |  | 21 |  |  | 2 |  |  | 23 |
Net loan recoveries (charge-offs) | 5 |  |  | (1) |  |  | 4 |  |  | (9) |  |  | 1 |  |  | (8) |
Provision for credit losses: |  |  |  |  |  |  |  |  |  |  |
Provision for loan losses | 68 |  |  | 2 |  |  | 70 |  |  | (20) |  |  | 3 |  |  | (17) |
Provision for credit losses on lending-related commitments | (6) |  |  | (1) |  |  | (7) |  |  | 10 |  |  | 6 |  |  | 16 |
Provision for credit losses | 62 |  |  | 1 |  |  | 63 |  |  | (10) |  |  | 9 |  |  | (1) |
Balance at end of period: |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses | 614 |  |  | 70 |  |  | 684 |  |  | 502 |  |  | 61 |  |  | 563 |
Allowance for credit losses on lending-related commitments | 34 |  |  | 10 |  |  | 44 |  |  | 34 |  |  | 12 |  |  | 46 |
Allowance for credit losses | $ | 648 |  |  | $ | 80 |  |  | $ | 728 |  |  | $ | 536 |  |  | $ | 73 |  |  | $ | 609 |
Allowance for loan losses as a percentage of total loans | 1.19 | % |  | 1.70 | % |  | 1.23 | % |  | 1.06 | % |  | 1.55 | % |  | 1.09 | %
Allowance for credit losses as a percentage of total loans | 1.26 |  |  | 1.95 |  |  | 1.31 |  |  | 1.13 |  |  | 1.85 |  |  | 1.18 |
Nonaccrual Loans The following table presents additional information regarding nonaccrual loans. Interest income of $2 million was recognized on nonaccrual loans for both the three-month periods ended June 30, 2023 and 2022. For the six months ended June 30, 2023 and 2022, the Corporation recognized interest income of $6 million and $4 million, respectively, on nonaccrual loans.
(in millions) | Nonaccrual Loans with No Related Allowance |  | Nonaccrual Loans with Related Allowance |  | Total Nonaccrual Loans
June 30, 2023 |  |  |  |  |
Business loans: |  |  |  |  |
Commercial | $ | 49 |  |  | $ | 44 |  |  | $ | 93 |
Real estate construction: |  |  |  |  |
Other business lines (a) | — |  |  | 2 |  |  | 2 |
Commercial mortgage: |  |  |  |  |
Commercial Real Estate business line (b) | — |  |  | 1 |  |  | 1 |
Other business lines (a) | 9 |  |  | 27 |  |  | 36 |
Total commercial mortgage | 9 |  |  | 28 |  |  | 37 |
International | — |  |  | 4 |  |  | 4 |
Total business loans | 58 |  |  | 78 |  |  | 136 |
Retail loans: |  |  |  |  |
Residential mortgage | 30 |  |  | 3 |  |  | 33 |
Consumer: |  |  |  |  |
Home equity | 17 |  |  | — |  |  | 17 |
Total retail loans | 47 |  |  | 3 |  |  | 50 |
Total nonaccrual loans | $ | 105 |  |  | $ | 81 |  |  | $ | 186 |
December 31, 2022 |  |  |  |  |
Business loans: |  |  |  |  |
Commercial | $ | 64 |  |  | $ | 78 |  |  | $ | 142 |
Real estate construction: |  |  |  |  |
Other business lines (a) | — |  |  | 3 |  |  | 3 |
Commercial mortgage: |  |  |  |  |
Commercial Real Estate business line (b) | — |  |  | 1 |  |  | 1 |
Other business lines (a) | 4 |  |  | 18 |  |  | 22 |
Total commercial mortgage | 4 |  |  | 19 |  |  | 23 |
International | 3 |  |  | — |  |  | 3 |
Total business loans | 71 |  |  | 100 |  |  | 171 |
Retail loans: |  |  |  |  |
Residential mortgage | 53 |  |  | — |  |  | 53 |
Consumer: |  |  |  |  |
Home equity | 15 |  |  | — |  |  | 15 |
Other consumer | 1 |  |  | — |  |  | 1 |
Total consumer | 16 |  |  | — |  |  | 16 |
Total retail loans | 69 |  |  | — |  |  | 69 |
Total nonaccrual loans | $ | 140 |  |  | $ | 100 |  |  | $ | 240 |
(a)Primarily loans secured by owner-occupied real estate. (b)Primarily loans to real estate developers. Foreclosed Properties Foreclosed properties were insignificant at both June 30, 2023 and December 31, 2022. Retail loans secured by residential real estate properties in process of foreclosure included in nonaccrual loans were insignificant at both June 30, 2023 and December 31, 2022. Loan Modifications Made to Borrowers Experiencing Financial Difficulty Effective January 1, 2023, the Corporation adopted the provisions of ASU 2022-02, which eliminated the accounting for TDRs while expanding loan modification and vintage disclosure requirements. The update specifically required additional disclosures on loan modifications to borrowers experiencing financial difficulties that involved an interest rate reduction, other-than-insignificant payment delay, a term extension, principal forgiveness or a combination thereof. The following table displays the amortized cost basis at June 30, 2023 of loan modifications made to borrowers experiencing financial difficulty that were restructured during the three- and six-month periods ended June 30, 2023 by type of modification.
(in millions) | Term Extension (a) |  | Payment Delay (a) |  | Interest Rate Reduction |  | Combinations (b) |  | Total |  | Percent of Total Class
For the Three Months Ended June 30, 2023 |  |  |  |  |  |  |  |
Business loans: |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 25 |  |  | $ | 22 |  |  | $ | — |  |  | $ | — |  |  | $ | 47 |  |  | 0.15 | %
Commercial mortgage: |  |  |  |  |  |  |  |  |  |  |
Other business lines (d) | 2 |  |  | — |  |  | 2 |  |  | — |  |  | 4 |  |  | 0.05 |
Total commercial mortgage | 2 |  |  | — |  |  | 2 |  |  | — |  |  | 4 |  |  | 0.03 |
International | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |  |  | 0.10 |
Total business loans | 27 |  |  | 22 |  |  | 2 |  |  | 1 |  |  | 52 |  |  | 0.10 |
Total loans | $ | 27 |  |  | $ | 22 |  |  | $ | 2 |  |  | $ | 1 |  |  | $ | 52 |  |  | 0.09 | %
For the Six Months Ended June 30, 2023 |  |  |  |  |  |  |  |
Business loans: |  |  |  |  |  |  |  |  |  |  |
Commercial | $ | 30 |  |  | $ | 22 |  |  | $ | — |  |  | $ | 1 |  |  | $ | 53 |  |  | 0.17 | %
Commercial mortgage: |  |  |  |  |  |  |  |  |  |  |
Commercial Real Estate business line (c) | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 0.02 |
Other business lines (d) | 4 |  |  | — |  |  | 2 |  |  | 5 |  |  | 11 |  |  | 0.11 |
Total commercial mortgage | 5 |  |  | — |  |  | 2 |  |  | 5 |  |  | 12 |  |  | 0.08 |
International | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |  |  | 0.10 |
Total business loans | 35 |  |  | 22 |  |  | 2 |  |  | 7 |  |  | 66 |  |  | 0.13 |
Total loans | $ | 35 |  |  | $ | 22 |  |  | $ | 2 |  |  | $ | 7 |  |  | $ | 66 |  |  | 0.12 | %
(a)Represents loan balances where terms were extended or payments were delayed by a more than an insignificant time period, typically more than 180 days, at or above contractual interest rates. Please see Note 1 to the consolidated financial statements for further information. (b)Relates to FDMs where more than one type of modification was made. For the three months ended June 30, 2023, this primarily related to a modification where an other-than- insignificant payment delay was agreed upon and a portion of principal was forgiven. For the six months ended June 30, 2023, this also includes modifications where the interest rate was reduced and the term was extended. (c)Primarily loans to real estate developers. (d)Primarily loans secured by owner-occupied real estate. There were no commitments to lend additional funds to borrowers experiencing financial difficulty whose terms had been restructured at June 30, 2023. The following table summarizes the financial impacts of loan modifications made to specific loans during the three- and six-month periods ended June 30, 2023.
| Weighted-Average Term Extension (in months) |  | Weighted-Average Interest Rate Reduction
For the Three Months Ended June 30, 2023 |  |  |
Business loans: |  |  |
Commercial | 6.6 |  | — | %
Commercial mortgage: |  |  |
Other business lines (b) | 60.1 |  | (1.92) |
Total commercial mortgage | 60.1 |  | (1.92) |
Total business loans | 11.5 |  |  | (1.92) |
Total loans | 11.5 |  |  | (1.92) | %
For the Six Months Ended June 30, 2023 |  |  |
Business loans: |  |  |
Commercial | 9.2 |  |  | (0.44) | %
Commercial mortgage: |  |  |
Commercial Real Estate business line (a) | 6.0 |  |  | — |
Other business lines (b) | 31.9 |  |  | (0.71) |
Total commercial mortgage | 29.5 |  |  | (0.71) |
Total business loans | 13.8 |  |  | (0.67) |
Total loans | 13.8 |  |  | (0.67) | %
(a)Primarily loans to real estate developers. (b)Primarily loans secured by owner-occupied real estate During the three- and six-month periods ended June 30, 2023, modifications to borrowers experiencing financial difficulty included restructurings with other-than-insignificant payment delays of $5 million and $1 million in the Commercial and International loan categories, respectively. On an ongoing basis, the Corporation monitors the performance of modified loans related to their restructured terms. Loans restructured during the six months ended June 30, 2023 were current under modified terms at June 30, 2023. Nonperforming restructured loans are classified as nonaccrual loans and are individually evaluated in the allowance for loan losses. For restructured loans, a subsequent payment default is defined in terms of delinquency, when a principal or interest payment is 90 days past due or classified into nonaccrual status during the reporting period. Of the loans restructured during the three- and six-month periods ended June 30, 2023 (since adoption of ASU 2022-02), there were no subsequent defaults as of June 30, 2023. Troubled Debt Restructurings Prior to the Adoption of ASU 2022-02 The following table details the amortized cost basis at June 30, 2022 of loans considered to be TDRs that were restructured during the three- and six-month periods ended June 30, 2022 by type of modification. In cases of loans with more than one type of modification, the loans were categorized based on the most significant modification.
(in millions) | Principal Deferrals (a)
Three Months Ended June 30, 2022 |
Business loans: |
Commercial | $ | 15 |
Real estate construction: |
Other business lines (b) | 3 |
Commercial mortgage: |
Other business lines (b) | 8 |
Total loans | $ | 26 |
Six Months Ended June 30, 2022 |
Business loans: |
Commercial | $ | 21 |
Real estate construction: |
Other business lines (b) | 3 |
Commercial mortgage: |
Other business lines (b) | 15
Total business loans | 39 |
Consumer: |
Home equity (c) | 1
Total loans | $ | 40 |
(a)Primarily represents loan balances where terms were extended by more than an insignificant time period, typically more than 180 days, at or above contractual interest rates. Also includes commercial loans restructured in bankruptcy. (b)Primarily loans secured by owner-occupied real estate. (c)Includes bankruptcy loans for which the court has discharged the borrower's obligation and the borrower has not reaffirmed the debt. The Corporation charges interest on principal balances outstanding during deferral periods. Additionally, none of the modifications involved forgiveness of principal. There were no significant commitments to lend additional funds to borrowers whose terms had been modified in TDRs at December 31, 2022. For principal deferrals, incremental deterioration in the credit quality of the loan, represented by a downgrade in the risk rating of the loan, for example, due to missed interest payments or a reduction of collateral value, was considered a subsequent default. For interest rate reductions, a subsequent payment default was defined in terms of delinquency, when a principal or interest payment was 90 days past due. Of the TDRs modified during the twelve-month period ended June 30, 2022, there were no subsequent defaults of principal deferrals or interest rate reductions in the three- and six-month periods ended June 30, 2022.

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