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Credit Quality And Allowance For Credit Losses
 9 Months Ended
Sep. 30, 2024
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		TotalNonaccrual
Loans		Current
Loans		Total 
Loans
September 30, 2024
Business loans:
Commercial$24 $44 $14 $82 $97 $25,774 $25,953 
Real estate construction:
Commercial Real Estate business line (a)— — — — — 3,571 3,571 
Other business lines (b)4 — — 4 — 284 288 
Total real estate construction4 — — 4 — 3,855 3,859 
Commercial mortgage:
Commercial Real Estate business line (a)6 — — 6 18 6,172 6,196 
Other business lines (b)32 6 7 45 70 8,463 8,578 
Total commercial mortgage38 6 7 51 88 14,635 14,774 
Lease financing5 — — 5 1 761 767 
International— — — — 3 1,000 1,003 
Total business loans71 50 21 142 189 46,025 46,356 
Retail loans:
Residential mortgage11 3 — 14 36 1,851 1,901 
Consumer:
Home equity8 2 — 10 25 1,759 1,794 
Other consumer2 — — 2 — 464 466 
Total consumer10 2 — 12 25 2,223 2,260 
Total retail loans21 5 — 26 61 4,074 4,161 
Total loans$92 $55 $21 $168 $250 $50,099 $50,517 
December 31, 2023
Business loans:
Commercial$48 $14 $10 $72 $75 $27,104 $27,251 
Real estate construction:
Commercial Real Estate business line (a)— — — — — 4,570 4,570 
Other business lines (b)3 — — 3 2 508 513 
Total real estate construction3 — — 3 2 5,078 5,083 
Commercial mortgage:
Commercial Real Estate business line (a)5 — — 5 18 4,704 4,727 
Other business lines (b)49 12 9 70 23 8,866 8,959 
Total commercial mortgage54 12 9 75 41 13,570 13,686 
Lease financing4 — — 4 — 803 807 
International— — 1 1 20 1,081 1,102 
Total business loans109 26 20 155 138 47,636 47,929 
Retail loans:
Residential mortgage10 6 — 16 19 1,854 1,889 
Consumer:
Home equity11 5 — 16 21 1,755 1,792 
Other consumer31 — — 31 — 472 503 
Total consumer42 5 — 47 21 2,227 2,295 
Total retail loans52 11 — 63 40 4,081 4,184 
Total loans$161 $37 $20 $218 $178 $51,717 $52,113 
(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.
September 30, 2024
Vintage Year
(in millions)20242023202220212020PriorRevolversRevolvers Converted to TermTotal
Business loans:
Commercial
    Pass (a)$2,365 $2,327 $2,067 $1,223 $453 $1,239 $14,934 $16 $24,624 
    Criticized (b)59 116 201 217 32 74 629 1 1,329 
Total commercial2,424 2,443 2,268 1,440 485 1,313 15,563 17 25,953 
Commercial gross charge-offs1 1 7 18 9 8 5 1 50 
Real estate construction
    Pass (a)104 661 2,005 730 39 26 256 — 3,821 
    Criticized (b)— — 36 — — 2 — — 38 
Total real estate construction104 661 2,041 730 39 28 256 — 3,859 
Commercial mortgage
    Pass (a)1,014 1,613 3,481 2,726 1,505 2,677 810 — 13,826 
    Criticized (b)76 185 262 66 54 287 18 — 948 
Total commercial mortgage1,090 1,798 3,743 2,792 1,559 2,964 828 — 14,774 
Commercial mortgage gross charge-offs— — 11 — — 5 — — 16 
Lease financing
    Pass (a)221 228 91 92 34 91 — — 757 
    Criticized (b)2 5 1 — — 2 — — 10 
Total lease financing223 233 92 92 34 93 — — 767 
Lease financing gross charge-offs1 — 3 — — — — — 4 
International
    Pass (a)211 104 140 64 24 28 413 — 984 
    Criticized (b)7 2 2 6 — 1 1 — 19 
Total international218 106 142 70 24 29 414 — 1,003 
International gross charge-offs1 — — — — — — — 1 
Total business loans4,059 5,241 8,286 5,124 2,141 4,427 17,061 17 46,356 
Retail loans:
Residential mortgage
    Pass (a)120 240 281 360 426 436 — — 1,863 
    Criticized (b)4 1 1 2 — 30 — — 38 
Total residential mortgage124 241 282 362 426 466 — — 1,901 
Consumer:
Home equity
    Pass (a)— — — — — 6 1,680 76 1,762 
    Criticized (b)— — — — — — 26 6 32 
Total home equity— — — — — 6 1,706 82 1,794 
Other consumer
    Pass (a)25 12 28 16 7 49 326 — 463 
    Criticized (b)— — 2 — — — 1 — 3 
Total other consumer25 12 30 16 7 49 327 — 466 
Other consumer gross charge-offs— — — — — 1 — — 1 
Total consumer25 12 30 16 7 55 2,033 82 2,260 
Total retail loans149 253 312 378 433 521 2,033 82 4,161 
Total loans$4,208 $5,494 $8,598 $5,502 $2,574 $4,948 $19,094 $99 $50,517 
Table continues on the following page.
December 31, 2023Vintage Year
20232022202120202019PriorRevolversRevolvers Converted to TermTotal
Business loans:
Commercial
    Pass (a)$3,105 $3,013 $2,072 $593 $610 $1,033 $15,394 $13 $25,833 
    Criticized (b)85 169 226 42 59 75 760 2 1,418 
Total commercial3,190 3,182 2,298 635 669 1,108 16,154 15 27,251 
Commercial gross charge-offs1 11 2 1 11 12 3 1 42 
Real estate construction
    Pass (a)503 2,205 1,581 329 43 36 288 — 4,985 
    Criticized (b)2 53 34 2 7 — — — 98 
Total real estate construction505 2,258 1,615 331 50 36 288 — 5,083 
Commercial mortgage
    Pass (a)1,680 3,129 2,173 1,786 981 2,271 893 — 12,913 
    Criticized (b)15 232 99 34 248 141 4 — 773 
Total commercial mortgage1,695 3,361 2,272 1,820 1,229 2,412 897 — 13,686 
Commercial mortgage gross charge-offs— — — — 3 1 — — 4 
Lease financing
    Pass (a)173 319 110 47 34 94 — — 777 
    Criticized (b)5 8 3 3 7 4 — — 30 
Total lease financing178 327 113 50 41 98 — — 807 
International
    Pass (a)286 168 89 35 76 2 415 — 1,071 
    Criticized (b)15 2 7 — — 6 1 — 31 
Total international 301 170 96 35 76 8 416 — 1,102 
International gross charge-offs12 — — — — 1 — — 13 
Total business loans5,869 9,298 6,394 2,871 2,065 3,662 17,755 15 47,929 
Retail loans:
Residential mortgage
    Pass (a)254 296 373 450 131 360 — — 1,864 
    Criticized (b)2 — 1 — — 22 — — 25 
Total residential mortgage256 296 374 450 131 382 — — 1,889 
Consumer:
Home equity
    Pass (a)— — — — — 8 1,695 59 1,762 
    Criticized (b)— — — — — — 28 2 30 
Total home equity— — — — — 8 1,723 61 1,792 
Home equity gross charge-offs— — — — — — 2 — 2 
Other consumer
    Pass (a)23 38 22 8 4 46 362 — 503 
Total other consumer23 38 22 8 4 46 362 — 503 
Other consumer gross charge-offs— — — — 1 — — — 1 
Total consumer23 38 22 8 4 54 2,085 61 2,295 
Total retail loans279 334 396 458 135 436 2,085 61 4,184 
Total loans$6,148 $9,632 $6,790 $3,329 $2,200 $4,098 $19,840 $76 $52,113 
(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-52 in the Corporation's 2023 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 $277 million and $313 million at September 30, 2024 and December 31, 2023, 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.
 20242023
(in millions)Business LoansRetail LoansTotalBusiness LoansRetail LoansTotal
Three Months Ended September 30
Balance at beginning of period:
Allowance for loan losses$620 $66 $686 $614 $70 $684 
Allowance for credit losses on lending-related commitments23 8 31 34 10 44 
Allowance for credit losses643 74 717 648 80 728 
Loan charge-offs(23)— (23)(13)(1)(14)
Recoveries on loans previously charged-off12 — 12 7 1 8 
Net loan charge-offs(11)— (11)(6)— (6)
Provision for credit losses:
Provision for loan losses9 2 11 18 (2)16 
Provision for credit losses on lending-related commitments3 — 3 (1)(1)(2)
Provision for credit losses12 2 14 17 (3)14 
Balance at end of period:
Allowance for loan losses618 68 686 626 68 694 
Allowance for credit losses on lending-related commitments26 8 34 33 9 42 
Allowance for credit losses$644 $76 $720 $659 $77 $736 
Nine Months Ended September 30
Balance at beginning of period
Allowance for loan losses$620 $68 $688 $541 $69 $610 
Allowance for credit losses on lending-related commitments31 9 40 40 11 51 
Allowance for credit losses651 77 728 581 80 661 
Loan charge-offs(71)(1)(72)(34)(3)(37)
Recoveries on loans previously charged-off34 2 36 33 2 35 
Net loan (charge-offs) recoveries(37)1 (36)(1)(1)(2)
Provision for credit losses:
Provision for loan losses35 (1)34 86 — 86 
Provision for credit losses on lending-related commitments(5)(1)(6)(7)(2)(9)
Provision for credit losses30 (2)28 79 (2)77 
Balance at end of period:
Allowance for loan losses618 68 686 626 68 694 
Allowance for credit losses on lending-related commitments26 8 34 33 9 42 
Allowance for credit losses$644 $76 $720 $659 $77 $736 
Allowance for loan losses as a percentage of total loans1.33 %1.63 %1.36 %1.27 %1.62 %1.30 %
Allowance for credit losses as a percentage of total loans1.39 1.83 1.43 1.34 1.84 1.38 
Nonaccrual Loans
The following table presents additional information regarding nonaccrual loans. Interest income of $2 million was recognized on nonaccrual loans at both the three-month periods ended September 30, 2024 and 2023. The Corporation recognized interest income on nonaccrual loans of $8 million at both nine months ended September 30, 2024 and 2023.
(in millions)Nonaccrual Loans with No Related AllowanceNonaccrual Loans with Related AllowanceTotal Nonaccrual Loans
September 30, 2024
Business loans:
Commercial$22 $75 $97 
Commercial mortgage:
Commercial Real Estate business line (a)— 18 18 
Other business lines (b)8 62 70 
Total commercial mortgage8 80 88 
Lease financing— 1 1 
International— 3 3 
Total business loans30 159 189 
Retail loans:
Residential mortgage36 — 36 
Consumer:
Home equity25 — 25 
Total retail loans61 — 61 
Total nonaccrual loans$91 $159 $250 
December 31, 2023
Business loans:
Commercial$47 $28 $75 
Real estate construction:
Other business lines (b)2 — 2 
Commercial mortgage:
Commercial Real Estate business line (a)— 18 18 
Other business lines (b)17 6 23 
Total commercial mortgage17 24 41 
International3 17 20 
Total business loans69 69 138 
Retail loans:
Residential mortgage19 — 19 
Consumer:
Home equity21 — 21 
Total consumer21 — 21 
Total retail loans40 — 40 
Total nonaccrual loans$109 $69 $178 
(a)Primarily loans to real estate developers.
(b)Primarily loans secured by owner-occupied real estate.
Foreclosed Properties
Foreclosed properties were insignificant at both September 30, 2024 and December 31, 2023. Retail loans secured by residential real estate properties in process of foreclosure included in nonaccrual loans were $4 million at September 30, 2024 and insignificant at December 31, 2023.
Loan Modifications Made to Borrowers Experiencing Financial Difficulty
As part of its loss mitigation efforts, the Corporation may modify loans to borrowers experiencing financial difficulty in a manner resulting in an interest rate reduction, other-than-insignificant payment delay, a term extension, principal forgiveness or a combination thereof (collectively referred to as Financially Distressed Modifications, or FDMs).
The following table displays the amortized cost basis of FDMs at September 30, 2024 and 2023 that were restructured during the three- and nine-month periods ended September 30, 2024 and 2023 by type of modification.
(in millions)Term Extension (a)Payment Delay (a)Interest Rate ReductionCombinations (b)TotalPercent of Total Class
Three Months Ended September 30, 2024
Business loans:
Commercial$93 $— $— $5 $98 0.38 %
Commercial mortgage:
Other business lines (c)9 — — — 9 0.11 
Total commercial mortgage9 — — — 9 0.06 
International2 — — — 2 0.16 
    Total business loans104 — — 5 109 0.24 
Retail loans:
Residential mortgage5 — — — 5 0.27 %
Consumer:
Home equity— 3 3 1 7 0.39 
Total consumer— 3 3 1 7 0.31 
    Total retail loans5 3 3 1 12 0.29 
Total loans$109 $3 $3 $6 $121 0.24 %
Three Months Ended September 30, 2023
Business loans:
Commercial$54 $— $4 $— $58 0.20 %
Real estate construction:
Other business lines (c)8 — — — 8 1.44 
Total real estate construction8 — — — 8 0.17 
Commercial mortgage:
Other business lines (c)1 — — 6 7 0.08 
Total commercial mortgage1 — — 6 7 0.05 
Total business loans63 — 4 6 73 0.15 
Consumer:
Home equity— — 1 1 2 0.11 
Total consumer— — 1 1 2 0.09 
    Total retail loans— — 1 1 2 0.05 
Total loans$63 $— $5 $7 $75 0.14 %
Table continues on the following page.
(in millions)Term Extension (a)Payment Delay (a)Interest Rate ReductionCombinations (b)TotalPercent of Total Class
Nine Months Ended September 30, 2024
Business loans:
Commercial$204 $— $— $19 $223 0.86 %
Commercial mortgage:
Other business lines (c)22 — — — 22 0.26 
Total commercial mortgage22 — — — 22 0.15 
International4 — — — 4 0.37 
Total business loans230 — — 19 249 0.54 
Retail loans:
Residential mortgage5 — — — 5 0.27 
Consumer:
Home equity1 3 4 2 10 0.55 
Total consumer1 3 4 2 10 0.43 
Total retail loans6 3 4 2 15 0.36 
Total loans$236 $3 $4 $21 $264 0.52 %
Nine Months Ended September 30, 2023
Business loans:
Commercial$87 $21 $4 $1 $113 0.39 %
Real estate construction:
Other business lines (c)8 — — — 8 1.44 
Total real estate construction8 — — — 8 0.17 
Commercial mortgage:
Other business lines (c)4 — 1 11 16 0.18 
Total commercial mortgage4 — 1 11 16 0.12 
Total business loans99 21 5 12 137 0.28 
Consumer:
Home equity1 — 1 1 3 0.15 
Total consumer1 — 1 1 3 0.13 
Total retail loans1 — 1 1 3 0.07 
Total loans$100 $21 $6 $13 $140 0.26 %
(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.
(b)Relates to FDMs where more than one type of modification was made. For the three- and nine-month periods ended September 30, 2024 and 2023, this primarily related to modifications where the interest rate was reduced and the term was extended.
(c)Primarily loans secured by owner-occupied real estate.
(d)Primarily loans to real estate developers.
There were no commitments to lend additional funds to borrowers experiencing financial difficulty whose terms had been restructured at September 30, 2024 and December 31, 2023.
The following table summarizes the financial impacts of loan modifications made during the three- and nine-month periods ended September 30, 2024 and 2023.
Weighted-Average Term Extension
(in months)		Weighted-Average Interest Rate Reduction
Three Months Ended September 30, 2024
Business loans:
Commercial12.7 (1.00)%
Commercial mortgage:
Other business lines (a)16.9 — 
Total commercial mortgage16.9 — 
International10.7 — 
Total business loans13.0 (1.00)
Retail loans:
Residential mortgage95.1 — 
Consumer:
Home equity120.0 (4.34)
Total consumer120.0 (4.34)
Total retail loans100.0 (4.34)
Total loans17.8 (2.51)%
Three Months Ended September 30, 2023
Business loans:
Commercial7.4 (0.50)%
Real estate construction:
Other business lines (a)6.0 — 
Total real estate construction6.0 — 
Commercial mortgage:
Other business lines (a)8.7 (1.00)
Total commercial mortgage8.7 (1.00)
Total business loans7.4 (0.81)
Retail loans:
Consumer:
Home equity131.1 (2.85)
Total consumer131.1 (2.85)
Total retail loans131.1 (2.85)
Total loans9.2 (1.09)%
Table continues on the following page.
Weighted-Average Term Extension
(in months)		Weighted-Average Interest Rate Reduction
Nine Months Ended September 30, 2024
Business loans:
Commercial12.7 (1.23)%
Commercial mortgage:
Other business lines (a)12.3 — 
Total commercial mortgage12.3 — 
International11.4 — 
Total business loans12.6 (1.23)
Retail loans:
Residential mortgage95.1 — 
Consumer:
Home equity119.3 (4.01)
Total consumer119.3 (4.01)
Total retail loans103.2 (4.01)
Total loans15.3 (1.91)%
Nine Months Ended September 30, 2023
Business loans:
Commercial8.0 (0.49)%
Real estate construction:
Other business lines (a)6.0 — 
Total real estate construction6.0 — 
Commercial mortgage:
Other business lines (a)22.0 (0.79)
Total commercial mortgage22.0 (0.79)
Total business loans9.7 (0.70)
Retail loans:
Consumer:
Home equity129.0 (2.64)
Total consumer129.0 (2.64)
Total retail loans129.0 (2.64)
Total loans11.0 (0.89)%
(a)Primarily loans secured by owner-occupied real estate.
(b)Primarily loans to real estate developers.
On an ongoing basis, the Corporation monitors the performance of modified loans related to their restructured terms. Loans restructured during the three- and nine-month periods ended September 30, 2024 and 2023 were current under modified terms at September 30, 2024 and September 30, 2023. Nonperforming restructured loans are classified as nonaccrual loans and are individually evaluated for 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 nine-month period ended September 30, 2024, there were $7 million of commercial loans that subsequently defaulted. There were no subsequent defaults on loans restructured during the three-month period ended September 30, 2024 and three- and nine-month periods ended September 30, 2023.