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LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended
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Sep. 30, 2025
Receivables [Abstract] |
LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES | LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES Loans, Leases, and Loans Held for Sale The following schedule presents our loan and lease portfolio according to major portfolio segment and specific class:
(In millions) | September 30, 2025 |  | December 31, 2024
Loans held for sale | $ | 215 |  |  | $ | 74 |
Commercial: |  |  |
Commercial and industrial | $ | 17,222 |  |  | $ | 16,891 |
Owner-occupied | 9,267 |  |  | 9,333 |
Municipal | 4,341 |  |  | 4,364 |
Leasing | 349 |  |  | 377 |
Total commercial | 31,179 |  |  | 30,965 |
Commercial real estate: |  |  |
Term | 11,008 |  |  | 10,703 |
Construction and land development | 2,469 |  |  | 2,774 |
Total commercial real estate | 13,477 |  |  | 13,477 |
Consumer: |  |  |
1-4 family residential | 10,423 |  |  | 9,939 |
Home equity credit line | 3,848 |  |  | 3,641 |
Construction and other consumer real estate | 769 |  |  | 810 |
Bankcard and other revolving plans | 477 |  |  | 457 |
Other | 129 |  |  | 121 |
Total consumer | 15,646 |  |  | 14,968 |
Total loans and leases | $ | 60,302 |  |  | $ | 59,410 |
Loans and leases classified as held for investment are measured and presented at their amortized cost basis, which includes net unamortized purchase premiums, discounts, and deferred loan fees and costs totaling $56 million and $43 million at September 30, 2025 and December 31, 2024, respectively. The amortized cost basis of the loans does not include accrued interest receivables of $278 million and $281 million at September 30, 2025 and December 31, 2024, respectively. These receivables are included in “Other assets” on the consolidated balance sheet. Municipal loans typically consist of obligations that are repaid from, or secured by, the general funds or pledged revenues of municipalities, as well as by real estate or equipment. This portfolio also includes loans extended to private commercial and 501(c)(3) not-for-profit organizations that utilize a pass-through municipal structure to benefit from favorable tax treatment. Land acquisition and development loans included in the construction and land development loan portfolio were $234 million at September 30, 2025 and $260 million at December 31, 2024. Loans with a carrying value of $42.6 billion at September 30, 2025 and $40.4 billion at December 31, 2024 have been pledged at the Federal Reserve (“FRB”) and the Federal Home Loan Bank (“FHLB”) of Des Moines as collateral for current and potential borrowings. Loans held for sale are measured individually at fair value or the lower of cost or fair value and primarily consist of CRE loans sold into securitization entities, and conforming residential mortgages generally sold to U.S. government agencies. The following schedule presents loans added to, or sold from, the held for sale category during the periods presented:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Loans added to held for sale | $ | 267 |  |  | $ | 289 |  |  | $ | 715 |  |  | $ | 688 |
Loans sold from held for sale | 222 |  |  | 304 |  |  | 572 |  |  | 644 |
Occasionally, we have continuing involvement in sold loans through retained servicing rights or guarantees. At September 30, 2025 and December 31, 2024, the principal balance of sold loans for which we retained servicing rights was approximately $702 million and $615 million, respectively. Income generated from sold loans, excluding servicing, totaled $4 million and $9 million for the three and nine months ended September 30, 2025, respectively, and $2 million and $5 million for the corresponding periods in 2024. Allowance for Credit Losses The allowance for credit losses (“ACL”), which consists of the allowance for loan and lease losses (“ALLL”) and the reserve for unfunded lending commitments (“RULC”), represents our estimate of current expected credit losses related to the loan and lease portfolio and unfunded lending commitments as of the balance sheet date. For additional information regarding our policies and methodologies used to estimate the ACL, see Note 6 of our 2024 Form 10-K. The ACL on AFS and HTM debt securities is estimated independently from the ACL on loans. For HTM securities, the ACL is evaluated using the same methodology applied to loans and leases measured at amortized cost. For more information regarding our methodology used to estimate the ACL on AFS and HTM debt securities, see Note 5 of our 2024 Form 10-K. Changes in the ACL are summarized as follows:
| Three Months Ended September 30, 2025
(In millions) | Commercial |  | Commercial real estate |  | Consumer |  | Total
Allowance for loan losses |  |  |  |  |  |  |
Balance at beginning of period | $ | 361 |  |  | $ | 230 |  |  | $ | 99 |  |  | $ | 690 |
Provision for loan losses | 57 |  |  | (11) |  |  | (1) |  |  | 45 |
Gross loan and lease charge-offs | 61 |  |  | 3 |  |  | 3 |  |  | 67 |
Recoveries | 9 |  |  | 1 |  |  | 1 |  |  | 11 |
Net loan and lease charge-offs (recoveries) | 52 |  |  | 2 |  |  | 2 |  |  | 56 |
Balance at end of period | $ | 366 |  |  | $ | 217 |  |  | $ | 96 |  |  | $ | 679 |
Reserve for unfunded lending commitments |  |  |  |  |  |  |
Balance at beginning of period | $ | 22 |  |  | $ | 12 |  |  | $ | 8 |  |  | $ | 42 |
Provision for unfunded lending commitments | 1 |  |  | 4 |  |  | (1) |  |  | 4 |
Balance at end of period | $ | 23 |  |  | $ | 16 |  |  | $ | 7 |  |  | $ | 46 |
Total allowance for credit losses at end of period |  |  |  |  |  |  |
Allowance for loan losses | $ | 366 |  |  | $ | 217 |  |  | $ | 96 |  |  | $ | 679 |
Reserve for unfunded lending commitments | 23 |  |  | 16 |  |  | 7 |  |  | 46 |
Total allowance for credit losses | $ | 389 |  |  | $ | 233 |  |  | $ | 103 |  |  | $ | 725 |
| Nine Months Ended September 30, 2025
(In millions) | Commercial |  | Commercial real estate |  | Consumer |  | Total
Allowance for loan losses |  |  |  |  |  |  |
Balance at beginning of period | $ | 308 |  |  | $ | 300 |  |  | $ | 88 |  |  | $ | 696 |
Provision for loan losses | 129 |  |  | (80) |  |  | 16 |  |  | 65 |
Gross loan and lease charge-offs | 92 |  |  | 4 |  |  | 11 |  |  | 107 |
Recoveries | 21 |  |  | 1 |  |  | 3 |  |  | 25 |
Net loan and lease charge-offs (recoveries) | 71 |  |  | 3 |  |  | 8 |  |  | 82 |
Balance at end of period | $ | 366 |  |  | $ | 217 |  |  | $ | 96 |  |  | $ | 679 |
Reserve for unfunded lending commitments |  |  |  |  |  |  |
Balance at beginning of period | $ | 26 |  |  | $ | 11 |  |  | $ | 8 |  |  | $ | 45 |
Provision for unfunded lending commitments | (3) |  |  | 5 |  |  | (1) |  |  | 1 |
Balance at end of period | $ | 23 |  |  | $ | 16 |  |  | $ | 7 |  |  | $ | 46 |
Total allowance for credit losses at end of period |  |  |  |  |  |  |
Allowance for loan losses | $ | 366 |  |  | $ | 217 |  |  | $ | 96 |  |  | $ | 679 |
Reserve for unfunded lending commitments | 23 |  |  | 16 |  |  | 7 |  |  | 46 |
Total allowance for credit losses | $ | 389 |  |  | $ | 233 |  |  | $ | 103 |  |  | $ | 725 |
| Three Months Ended September 30, 2024
(In millions) | Commercial |  | Commercial real estate |  | Consumer |  | Total
Allowance for loan losses |  |  |  |  |  |  |
Balance at beginning of period | $ | 302 |  |  | $ | 300 |  |  | $ | 94 |  |  | $ | 696 |
Provision for loan losses | 7 |  |  | (13) |  |  | 7 |  |  | 1 |
Gross loan and lease charge-offs | 12 |  |  | — |  |  | 3 |  |  | 15 |
Recoveries | 9 |  |  | 2 |  |  | 1 |  |  | 12 |
Net loan and lease charge-offs (recoveries) | 3 |  |  | (2) |  |  | 2 |  |  | 3 |
Balance at end of period | $ | 306 |  |  | $ | 289 |  |  | $ | 99 |  |  | $ | 694 |
Reserve for unfunded lending commitments |  |  |  |  |  |  |
Balance at beginning of period | $ | 16 |  |  | $ | 7 |  |  | $ | 7 |  |  | $ | 30 |
Provision for unfunded lending commitments | 4 |  |  | 5 |  |  | 3 |  |  | 12 |
Balance at end of period | $ | 20 |  |  | $ | 12 |  |  | $ | 10 |  |  | $ | 42 |
Total allowance for credit losses at end of period |  |  |  |  |  |  |
Allowance for loan losses | $ | 306 |  |  | $ | 289 |  |  | $ | 99 |  |  | $ | 694 |
Reserve for unfunded lending commitments | 20 |  |  | 12 |  |  | 10 |  |  | 42 |
Total allowance for credit losses | $ | 326 |  |  | $ | 301 |  |  | $ | 109 |  |  | $ | 736 |
| Nine Months Ended September 30, 2024
(In millions) | Commercial |  | Commercial real estate |  | Consumer |  | Total
Allowance for loan losses |  |  |  |  |  |  |
Balance at beginning of period | $ | 302 |  |  | $ | 241 |  |  | $ | 141 |  |  | $ | 684 |
Provision for loan losses | 15 |  |  | 56 |  |  | (37) |  |  | 34 |
Gross loan and lease charge-offs | 30 |  |  | 11 |  |  | 9 |  |  | 50 |
Recoveries | 19 |  |  | 3 |  |  | 4 |  |  | 26 |
Net loan and lease charge-offs (recoveries) | 11 |  |  | 8 |  |  | 5 |  |  | 24 |
Balance at end of period | $ | 306 |  |  | $ | 289 |  |  | $ | 99 |  |  | $ | 694 |
Reserve for unfunded lending commitments |  |  |  |  |  |  |
Balance at beginning of period | $ | 19 |  |  | $ | 17 |  |  | $ | 9 |  |  | $ | 45 |
Provision for unfunded lending commitments | 1 |  |  | (5) |  |  | 1 |  |  | (3) |
Balance at end of period | $ | 20 |  |  | $ | 12 |  |  | $ | 10 |  |  | $ | 42 |
Total allowance for credit losses at end of period |  |  |  |  |  |  |
Allowance for loan losses | $ | 306 |  |  | $ | 289 |  |  | $ | 99 |  |  | $ | 694 |
Reserve for unfunded lending commitments | 20 |  |  | 12 |  |  | 10 |  |  | 42 |
Total allowance for credit losses | $ | 326 |  |  | $ | 301 |  |  | $ | 109 |  |  | $ | 736 |
Nonaccrual Loans Loans are generally placed on nonaccrual status when the full collection of principal and interest is not expected, or when the loan is 90 days or more past due with respect to principal or interest, unless it is both well-secured and in the process of collection. We consider several factors when placing a loan on nonaccrual status, including delinquency status, collateral valuation, borrower or guarantor financial condition, bankruptcy status, and other indicators that suggest uncertainty regarding the full and timely recovery of principal and interest. A nonaccrual loan may be returned to accrual status when the following conditions are met: (1) all delinquent principal and interest have been brought current in accordance with the loan agreement; (2) the loan, if secured, is well secured; (3) the borrower has made timely payments under the contractual terms for a minimum of six months; and (4) a credit analysis indicates reasonable assurance of the borrower's ability and willingness to continue making payments. The following schedule presents the amortized cost basis of loans on nonaccrual:
| September 30, 2025
| Amortized cost basis |  | Total amortized cost basis |  |
(In millions) | with no allowance |  | with allowance |  |  | Related allowance
Commercial: |  |  |  |  |  |  |
Commercial and industrial | $ | 50 |  |  | $ | 57 |  |  | $ | 107 |  |  | $ | 22 |
Owner-occupied | 13 |  |  | 27 |  |  | 40 |  |  | 2 |
Municipal | — |  |  | 2 |  |  | 2 |  |  | — |
Leasing | — |  |  | 4 |  |  | 4 |  |  | 1 |
Total commercial | 63 |  |  | 90 |  |  | 153 |  |  | 25 |
Commercial real estate: |  |  |  |  |  |  |
Term | 1 |  |  | 69 |  |  | 70 |  |  | 3 |
Total commercial real estate | 1 |  |  | 69 |  |  | 70 |  |  | 3 |
Consumer: |  |  |  |  |  |  |
1-4 family residential | 11 |  |  | 52 |  |  | 63 |  |  | 4 |
Home equity credit line | — |  |  | 32 |  |  | 32 |  |  | 7 |
Bankcard and other revolving plans | — |  |  | 1 |  |  | 1 |  |  | 1 |
Total consumer | 11 |  |  | 85 |  |  | 96 |  |  | 12 |
Total | $ | 75 |  |  | $ | 244 |  |  | $ | 319 |  |  | $ | 40 |
| December 31, 2024
| Amortized cost basis |  | Total amortized cost basis |  |
(In millions) | with no allowance |  | with allowance |  |  | Related allowance
Commercial: |  |  |  |  |  |  |
Commercial and industrial | $ | 45 |  |  | $ | 69 |  |  | $ | 114 |  |  | $ | 19 |
Owner-occupied | 18 |  |  | 13 |  |  | 31 |  |  | 1 |
Municipal | 5 |  |  | 6 |  |  | 11 |  |  | 2 |
Leasing | — |  |  | 2 |  |  | 2 |  |  | 1 |
Total commercial | 68 |  |  | 90 |  |  | 158 |  |  | 23 |
Commercial real estate: |  |  |  |  |  |  |
Term | 27 |  |  | 32 |  |  | 59 |  |  | 4 |
Total commercial real estate | 27 |  |  | 32 |  |  | 59 |  |  | 4 |
Consumer: |  |  |  |  |  |  |
1-4 family residential | 12 |  |  | 37 |  |  | 49 |  |  | 4 |
Home equity credit line | 5 |  |  | 25 |  |  | 30 |  |  | 5 |
Bankcard and other revolving plans | — |  |  | 1 |  |  | 1 |  |  | 1 |
Total consumer | 17 |  |  | 63 |  |  | 80 |  |  | 10 |
Total | $ | 112 |  |  | $ | 185 |  |  | $ | 297 |  |  | $ | 37 |
For accruing loans, interest is accrued, and interest payments are recognized as interest income in accordance with the contractual terms of the loan agreement. For nonaccruing loans, the accrual of interest is discontinued, and any previously accrued but uncollected interest is promptly reversed from interest income, generally within one month. Payments received on nonaccrual loans are not recognized as interest income, but are applied to reduce the outstanding principal balance. However, when the collectability of the amortized cost basis of a nonaccrual loan is no longer in doubt, interest payments may be recognized as interest income on a cash basis. For the three and nine months ended September 30, 2025 and 2024, no interest income was recognized on a cash basis for nonaccrual loans. The following schedule presents the amount of accrued interest receivables reversed from interest income, categorized by loan portfolio segment during the periods presented:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Commercial | $ | 4 |  |  | $ | 5 |  |  | $ | 5 |  |  | $ | 10 |
Commercial real estate | 1 |  |  | 1 |  |  | 4 |  |  | 4 |
Consumer | 1 |  |  | 1 |  |  | 3 |  |  | 3 |
Total | $ | 6 |  |  | $ | 7 |  |  | $ | 12 |  |  | $ | 17 |
Past Due Loans Closed-end loans with payments scheduled monthly are reported as past due when the borrower is in arrears for two or more monthly payments. Similarly, open-end credits, such as bankcard and other revolving credit plans, are reported as past due when the minimum payment has not been made for two or more billing cycles. Other multi-payment obligations (i.e., quarterly, semi-annual, etc.), single payment, and demand notes, are reported as past due when either principal or interest is due and unpaid for a period of 30 days or more. Past due loans (accruing and nonaccruing) are summarized as follows:
| September 30, 2025
(In millions) | Current |  | 30-89 days past due |  | 90+ days past due |  | Total past due |  | Total loans |  | Accruing loans 90+ days past due |  | Nonaccrual loans that are current 1
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 17,188 |  |  | $ | 18 |  |  | $ | 16 |  |  | $ | 34 |  |  | $ | 17,222 |  |  | $ | 3 |  |  | $ | 92 |
Owner-occupied | 9,231 |  |  | 17 |  |  | 19 |  |  | 36 |  |  | 9,267 |  |  | — |  |  | 15 |
Municipal | 4,341 |  |  | — |  |  | — |  |  | — |  |  | 4,341 |  |  | — |  |  | 2 |
Leasing | 347 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 349 |  |  | — |  |  | 2 |
Total commercial | 31,107 |  |  | 36 |  |  | 36 |  |  | 72 |  |  | 31,179 |  |  | 3 |  |  | 111 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |
Term | 10,941 |  |  | 35 |  |  | 32 |  |  | 67 |  |  | 11,008 |  |  | 1 |  |  | 23 |
Construction and land development | 2,469 |  |  | — |  |  | — |  |  | — |  |  | 2,469 |  |  | — |  |  | — |
Total commercial real estate | 13,410 |  |  | 35 |  |  | 32 |  |  | 67 |  |  | 13,477 |  |  | 1 |  |  | 23 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential | 10,374 |  |  | 12 |  |  | 37 |  |  | 49 |  |  | 10,423 |  |  | — |  |  | 23 |
Home equity credit line | 3,820 |  |  | 16 |  |  | 12 |  |  | 28 |  |  | 3,848 |  |  | — |  |  | 15 |
Construction and other consumer real estate | 768 |  |  | 1 |  |  | — |  |  | 1 |  |  | 769 |  |  | — |  |  | — |
Bankcard and other revolving plans | 473 |  |  | 3 |  |  | 1 |  |  | 4 |  |  | 477 |  |  | 1 |  |  | — |
Other | 129 |  |  | — |  |  | — |  |  | — |  |  | 129 |  |  | — |  |  | 1 |
Total consumer | 15,564 |  |  | 32 |  |  | 50 |  |  | 82 |  |  | 15,646 |  |  | 1 |  |  | 39 |
Total | $ | 60,081 |  |  | $ | 103 |  |  | $ | 118 |  |  | $ | 221 |  |  | $ | 60,302 |  |  | $ | 5 |  |  | $ | 173 |
| December 31, 2024
(In millions) | Current |  | 30-89 days past due |  | 90+ days past due |  | Total past due |  | Total loans |  | Accruing loans 90+ days past due |  | Nonaccrual loans that are current 1
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 16,857 |  |  | $ | 20 |  |  | $ | 14 |  |  | $ | 34 |  |  | $ | 16,891 |  |  | $ | 1 |  |  | $ | 98 |
Owner-occupied | 9,309 |  |  | 10 |  |  | 14 |  |  | 24 |  |  | 9,333 |  |  | 3 |  |  | 16 |
Municipal | 4,348 |  |  | 6 |  |  | 10 |  |  | 16 |  |  | 4,364 |  |  | 10 |  |  | 11 |
Leasing | 377 |  |  | — |  |  | — |  |  | — |  |  | 377 |  |  | — |  |  | 2 |
Total commercial | 30,891 |  |  | 36 |  |  | 38 |  |  | 74 |  |  | 30,965 |  |  | 14 |  |  | 127 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |
Term | 10,667 |  |  | 2 |  |  | 34 |  |  | 36 |  |  | 10,703 |  |  | 3 |  |  | 28 |
Construction and land development | 2,774 |  |  | — |  |  | — |  |  | — |  |  | 2,774 |  |  | — |  |  | — |
Total commercial real estate | 13,441 |  |  | 2 |  |  | 34 |  |  | 36 |  |  | 13,477 |  |  | 3 |  |  | 28 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential | 9,896 |  |  | 16 |  |  | 27 |  |  | 43 |  |  | 9,939 |  |  | — |  |  | 15 |
Home equity credit line | 3,609 |  |  | 20 |  |  | 12 |  |  | 32 |  |  | 3,641 |  |  | — |  |  | 13 |
Construction and other consumer real estate | 810 |  |  | — |  |  | — |  |  | — |  |  | 810 |  |  | — |  |  | — |
Bankcard and other revolving plans | 453 |  |  | 2 |  |  | 2 |  |  | 4 |  |  | 457 |  |  | 1 |  |  | — |
Other | 121 |  |  | — |  |  | — |  |  | — |  |  | 121 |  |  | — |  |  | — |
Total consumer | 14,889 |  |  | 38 |  |  | 41 |  |  | 79 |  |  | 14,968 |  |  | 1 |  |  | 28 |
Total | $ | 59,221 |  |  | $ | 76 |  |  | $ | 113 |  |  | $ | 189 |  |  | $ | 59,410 |  |  | $ | 18 |  |  | $ | 183 |
1 Represents nonaccrual loans that are not past due more than 30 days; however, full payment of principal and interest is not expected. Credit Quality Indicators In addition to the nonaccrual and past due criteria, we also analyze loans using loan risk-grading systems, which vary based on the size and type of credit risk exposure. The internal risk grades assigned to loans follow our definition of Pass, Special Mention, Substandard, and Doubtful, which align with published regulatory risk classifications. Definitions of Pass, Special Mention, Substandard, and Doubtful are summarized as follows: •Pass — A Pass asset is higher-quality and does not fit any of the other categories described below. The likelihood of loss is considered low. •Special Mention — A Special Mention asset has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or our credit position at some future date. •Substandard — A Substandard asset is inadequately protected by the current sound worth and paying capacity of the obligor or the collateral pledged, if any. Assets classified as Substandard have well-defined weaknesses and are characterized by the distinct possibility that we may sustain some loss if deficiencies are not corrected. •Doubtful — A Doubtful asset has all the weaknesses inherent in a Substandard asset, with the added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable. The amount of loans classified as Doubtful totaled $10 million at September 30, 2025, compared with $14 million at December 31, 2024, and are included in the nonaccrual balances in the schedule below. For commercial and CRE loans with commitments greater than $1 million, we assign one of multiple grades within the Pass classification or one of the previously described risk classifications. We assess our internal risk grades quarterly, or as soon as we identify information that affects the credit risk of the loan. For consumer loans and for commercial and CRE loans with commitments of $1 million or less, we generally assign internal risk grades similar to those previously described based on automated rules that consider refreshed credit scores, payment performance, and other risk indicators. These loans are generally assigned either a Pass, Special Mention, or Substandard grade, and are reviewed as we identify information that might warrant a grade change. The following schedule presents the amortized cost basis of loans and leases categorized by year of origination and by credit quality classification as monitored by management. Loans that have been modified resulting in substantially different terms than the original loan are included in the period in which the modification occurred.
| September 30, 2025
| Term loans | Revolving loans amortized cost basis | Revolving loans converted to term loans amortized cost basis |
| Amortized cost basis by year of origination |
(In millions) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total
Commercial: |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |
Pass | $ | 2,491 |  | $ | 2,136 |  | $ | 1,453 |  | $ | 1,014 |  | $ | 434 |  | $ | 749 |  | $ | 8,082 |  | $ | 149 |  | $ | 16,508 |
Special Mention | 10 |  | 58 |  | 7 |  | 2 |  | 11 |  | 14 |  | 87 |  | 5 |  | 194 |
Accruing Substandard | 1 |  | 60 |  | 59 |  | 70 |  | 19 |  | 31 |  | 162 |  | 11 |  | 413 |
Nonaccrual | 4 |  | 4 |  | 3 |  | 39 |  | 3 |  | 6 |  | 21 |  | 27 |  | 107 |
Total commercial and industrial | 2,506 |  | 2,258 |  | 1,522 |  | 1,125 |  | 467 |  | 800 |  | 8,352 |  | 192 |  | 17,222 |
Owner-occupied |  |  |  |  |  |  |  |  |
Pass | 809 |  | 1,323 |  | 757 |  | 1,457 |  | 1,506 |  | 2,651 |  | 237 |  | 50 |  | 8,790 |
Special Mention | 2 |  | 2 |  | — |  | 11 |  | 12 |  | 24 |  | — |  | 1 |  | 52 |
Accruing Substandard | 11 |  | 24 |  | 17 |  | 112 |  | 93 |  | 101 |  | 24 |  | 3 |  | 385 |
Nonaccrual | 6 |  | 7 |  | 2 |  | 6 |  | 2 |  | 15 |  | 2 |  | — |  | 40 |
Total owner-occupied | 828 |  | 1,356 |  | 776 |  | 1,586 |  | 1,613 |  | 2,791 |  | 263 |  | 54 |  | 9,267 |
Municipal |  |  |  |  |  |  |  |  |
Pass | 350 |  | 624 |  | 422 |  | 869 |  | 886 |  | 1,124 |  | 2 |  | 41 |  | 4,318 |
Special Mention | — |  | 3 |  | — |  | — |  | — |  | — |  | — |  | — |  | 3 |
Accruing Substandard | — |  | — |  | — |  | — |  | — |  | 18 |  | — |  | — |  | 18 |
Nonaccrual | — |  | — |  | — |  | — |  | 2 |  | — |  | — |  | — |  | 2 |
Total municipal | 350 |  | 627 |  | 422 |  | 869 |  | 888 |  | 1,142 |  | 2 |  | 41 |  | 4,341 |
Leasing |  |  |  |  |  |  |  |  |
Pass | 46 |  | 95 |  | 63 |  | 78 |  | 18 |  | 30 |  | — |  | — |  | 330 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | — |  | 1 |  | 2 |  | 10 |  | 1 |  | 1 |  | — |  | — |  | 15 |
Nonaccrual | — |  | 1 |  | 1 |  | 2 |  | — |  | — |  | — |  | — |  | 4 |
Total leasing | 46 |  | 97 |  | 66 |  | 90 |  | 19 |  | 31 |  | — |  | — |  | 349 |
Total commercial | 3,730 |  | 4,338 |  | 2,786 |  | 3,670 |  | 2,987 |  | 4,764 |  | 8,617 |  | 287 |  | 31,179 |
Commercial real estate: |  |  |  |  |  |  |  |  |
Term |  |  |  |  |  |  |
Pass | 1,954 |  | 1,301 |  | 1,174 |  | 1,788 |  | 1,102 |  | 1,951 |  | 268 |  | 154 |  | 9,692 |
Special Mention | 9 |  | 13 |  | 10 |  | 99 |  | — |  | 1 |  | — |  | — |  | 132 |
Accruing Substandard | 270 |  | 101 |  | 135 |  | 388 |  | 78 |  | 61 |  | 27 |  | 54 |  | 1,114 |
Nonaccrual | 22 |  | — |  | 16 |  | 22 |  | — |  | 10 |  | — |  | — |  | 70 |
Total term | 2,255 |  | 1,415 |  | 1,335 |  | 2,297 |  | 1,180 |  | 2,023 |  | 295 |  | 208 |  | 11,008 |
Construction and land development |  |  |  |  |  |  |  |
Pass | 293 |  | 530 |  | 513 |  | 127 |  | 1 |  | 2 |  | 739 |  | 41 |  | 2,246 |
Special Mention | — |  | 1 |  | 36 |  | 32 |  | — |  | — |  | — |  | — |  | 69 |
Accruing Substandard | 51 |  | 8 |  | 47 |  | 48 |  | — |  | — |  | — |  | — |  | 154 |
Nonaccrual | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total construction and land development | 344 |  | 539 |  | 596 |  | 207 |  | 1 |  | 2 |  | 739 |  | 41 |  | 2,469 |
Total commercial real estate | 2,599 |  | 1,954 |  | 1,931 |  | 2,504 |  | 1,181 |  | 2,025 |  | 1,034 |  | 249 |  | 13,477 |
| September 30, 2025
| Term loans | Revolving loans amortized cost basis | Revolving loans converted to term loans amortized cost basis |
| Amortized cost basis by year of origination |
(In millions) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total
Consumer: |  |  |  |  |  |  |  |  |
1-4 family residential |  |  |  |  |  |  |  |  |
Pass | $ | 595 |  | $ | 966 |  | $ | 921 |  | $ | 3,135 |  | $ | 1,844 |  | $ | 2,898 |  | $ | — |  | $ | — |  | $ | 10,359 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | — |  | — |  | — |  | — |  | — |  | 1 |  | — |  | — |  | 1 |
Nonaccrual | 1 |  | 2 |  | 5 |  | 13 |  | 14 |  | 28 |  | — |  | — |  | 63 |
Total 1-4 family residential | 596 |  | 968 |  | 926 |  | 3,148 |  | 1,858 |  | 2,927 |  | — |  | — |  | 10,423 |
Home equity credit line |  |  |  |  |  |  |  |  |
Pass | — |  | — |  | — |  | — |  | — |  | — |  | 3,702 |  | 106 |  | 3,808 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | — |  | — |  | — |  | — |  | — |  | — |  | 8 |  | — |  | 8 |
Nonaccrual | — |  | — |  | — |  | — |  | — |  | — |  | 28 |  | 4 |  | 32 |
Total home equity credit line | — |  | — |  | — |  | — |  | — |  | — |  | 3,738 |  | 110 |  | 3,848 |
Construction and other consumer real estate |  |  |  |  |  |  |
Pass | 147 |  | 336 |  | 108 |  | 170 |  | 6 |  | 2 |  | — |  | — |  | 769 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Nonaccrual | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total construction and other consumer real estate | 147 |  | 336 |  | 108 |  | 170 |  | 6 |  | 2 |  | — |  | — |  | 769 |
Bankcard and other revolving plans |  |  |  |  |  |  |  |
Pass | — |  | — |  | — |  | — |  | — |  | — |  | 474 |  | — |  | 474 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | — |  | — |  | — |  | — |  | — |  | — |  | 2 |  | — |  | 2 |
Nonaccrual | — |  | — |  | — |  | — |  | — |  | — |  | 1 |  | — |  | 1 |
Total bankcard and other revolving plans | — |  | — |  | — |  | — |  | — |  | — |  | 477 |  | — |  | 477 |
Other consumer |  |  |  |  |  |  |  |  |
Pass | 58 |  | 30 |  | 22 |  | 13 |  | 4 |  | 2 |  | — |  | — |  | 129 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Nonaccrual | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total other consumer | 58 |  | 30 |  | 22 |  | 13 |  | 4 |  | 2 |  | — |  | — |  | 129 |
Total consumer | 801 |  | 1,334 |  | 1,056 |  | 3,331 |  | 1,868 |  | 2,931 |  | 4,215 |  | 110 |  | 15,646 |
Total loans | $ | 7,130 |  | $ | 7,626 |  | $ | 5,773 |  | $ | 9,505 |  | $ | 6,036 |  | $ | 9,720 |  | $ | 13,866 |  | $ | 646 |  | $ | 60,302 |
| December 31, 2024
| Term loans | Revolving loans amortized cost basis | Revolving loans converted to term loans amortized cost basis |
| Amortized cost basis by year of origination |
(In millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total
Commercial: |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  |  |  |  |  |  |  |
Pass | $ | 2,479 |  | $ | 1,951 |  | $ | 1,504 |  | $ | 759 |  | $ | 387 |  | $ | 679 |  | $ | 8,043 |  | $ | 150 |  | $ | 15,952 |
Special Mention | 37 |  | 24 |  | 47 |  | 8 |  | 2 |  | 34 |  | 85 |  | 5 |  | 242 |
Accruing Substandard | 53 |  | 43 |  | 200 |  | 26 |  | 28 |  | 21 |  | 200 |  | 12 |  | 583 |
Nonaccrual | 7 |  | 13 |  | 31 |  | 17 |  | 1 |  | 4 |  | 38 |  | 3 |  | 114 |
Total commercial and industrial | 2,576 |  | 2,031 |  | 1,782 |  | 810 |  | 418 |  | 738 |  | 8,366 |  | 170 |  | 16,891 |
Owner-occupied |  |  |  |  |  |  |  |  |
Pass | 1,346 |  | 907 |  | 1,606 |  | 1,657 |  | 900 |  | 2,097 |  | 234 |  | 47 |  | 8,794 |
Special Mention | 38 |  | — |  | 38 |  | 31 |  | 2 |  | 18 |  | 18 |  | 1 |  | 146 |
Accruing Substandard | 23 |  | 28 |  | 75 |  | 66 |  | 25 |  | 133 |  | 7 |  | 5 |  | 362 |
Nonaccrual | 5 |  | 1 |  | 4 |  | 1 |  | — |  | 15 |  | 5 |  | — |  | 31 |
Total owner-occupied | 1,412 |  | 936 |  | 1,723 |  | 1,755 |  | 927 |  | 2,263 |  | 264 |  | 53 |  | 9,333 |
Municipal |  |  |  |  |  |  |  |  |
Pass | 604 |  | 498 |  | 939 |  | 960 |  | 553 |  | 753 |  | — |  | 29 |  | 4,336 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | 10 |  | 4 |  | — |  | — |  | — |  | 3 |  | — |  | — |  | 17 |
Nonaccrual | 3 |  | — |  | — |  | 5 |  | — |  | 3 |  | — |  | — |  | 11 |
Total municipal | 617 |  | 502 |  | 939 |  | 965 |  | 553 |  | 759 |  | — |  | 29 |  | 4,364 |
Leasing |  |  |  |  |  |  |  |  |
Pass | 109 |  | 79 |  | 94 |  | 26 |  | 12 |  | 36 |  | — |  | — |  | 356 |
Special Mention | — |  | — |  | 2 |  | — |  | — |  | — |  | — |  | — |  | 2 |
Accruing Substandard | 1 |  | 3 |  | 10 |  | 2 |  | 1 |  | — |  | — |  | — |  | 17 |
Nonaccrual | — |  | 1 |  | 1 |  | — |  | — |  | — |  | — |  | — |  | 2 |
Total leasing | 110 |  | 83 |  | 107 |  | 28 |  | 13 |  | 36 |  | — |  | — |  | 377 |
Total commercial | 4,715 |  | 3,552 |  | 4,551 |  | 3,558 |  | 1,911 |  | 3,796 |  | 8,630 |  | 252 |  | 30,965 |
Commercial real estate: |  |  |  |  |  |  |  |  |
Term |  |  |  |  |  |  |
Pass | 1,687 |  | 1,198 |  | 2,093 |  | 1,278 |  | 1,053 |  | 1,608 |  | 254 |  | 175 |  | 9,346 |
Special Mention | 48 |  | — |  | 87 |  | — |  | — |  | 5 |  | — |  | — |  | 140 |
Accruing Substandard | 298 |  | 105 |  | 443 |  | 144 |  | 13 |  | 102 |  | 27 |  | 26 |  | 1,158 |
Nonaccrual | — |  | — |  | 23 |  | — |  | — |  | 10 |  | — |  | 26 |  | 59 |
Total term | 2,033 |  | 1,303 |  | 2,646 |  | 1,422 |  | 1,066 |  | 1,725 |  | 281 |  | 227 |  | 10,703 |
Construction and land development |  |  |  |  |  |  |  |
Pass | 361 |  | 701 |  | 445 |  | 4 |  | 1 |  | 9 |  | 680 |  | 52 |  | 2,253 |
Special Mention | — |  | 22 |  | 21 |  | 17 |  | — |  | — |  | — |  | 25 |  | 85 |
Accruing Substandard | 57 |  | 52 |  | 249 |  | 78 |  | — |  | — |  | — |  | — |  | 436 |
Nonaccrual | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total construction and land development | 418 |  | 775 |  | 715 |  | 99 |  | 1 |  | 9 |  | 680 |  | 77 |  | 2,774 |
Total commercial real estate | 2,451 |  | 2,078 |  | 3,361 |  | 1,521 |  | 1,067 |  | 1,734 |  | 961 |  | 304 |  | 13,477 |
| December 31, 2024
| Term loans | Revolving loans amortized cost basis | Revolving loans converted to term loans amortized cost basis |
| Amortized cost basis by year of origination |
(In millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total
Consumer: |  |  |  |  |  |  |  |  |
1-4 family residential |  |  |  |  |  |  |  |  |
Pass | $ | 1,062 |  | $ | 870 |  | $ | 2,959 |  | $ | 1,877 |  | $ | 925 |  | $ | 2,197 |  | $ | — |  | $ | — |  | $ | 9,890 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Nonaccrual | — |  | 3 |  | 8 |  | 9 |  | 2 |  | 27 |  | — |  | — |  | 49 |
Total 1-4 family residential | 1,062 |  | 873 |  | 2,967 |  | 1,886 |  | 927 |  | 2,224 |  | — |  | — |  | 9,939 |
Home equity credit line |  |  |  |  |  |  |  |  |
Pass | — |  | — |  | — |  | — |  | — |  | — |  | 3,506 |  | 99 |  | 3,605 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | — |  | — |  | — |  | — |  | — |  | — |  | 6 |  | — |  | 6 |
Nonaccrual | — |  | — |  | — |  | — |  | — |  | — |  | 22 |  | 8 |  | 30 |
Total home equity credit line | — |  | — |  | — |  | — |  | — |  | — |  | 3,534 |  | 107 |  | 3,641 |
Construction and other consumer real estate |  |  |  |  |  |  |
Pass | 157 |  | 191 |  | 420 |  | 34 |  | 5 |  | 3 |  | — |  | — |  | 810 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Nonaccrual | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total construction and other consumer real estate | 157 |  | 191 |  | 420 |  | 34 |  | 5 |  | 3 |  | — |  | — |  | 810 |
Bankcard and other revolving plans |  |  |  |  |  |  |  |
Pass | — |  | — |  | — |  | — |  | — |  | — |  | 453 |  | 1 |  | 454 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | — |  | — |  | — |  | — |  | — |  | — |  | 2 |  | — |  | 2 |
Nonaccrual | — |  | — |  | — |  | — |  | — |  | — |  | 1 |  | — |  | 1 |
Total bankcard and other revolving plans | — |  | — |  | — |  | — |  | — |  | — |  | 456 |  | 1 |  | 457 |
Other consumer |  |  |  |  |  |  |  |  |
Pass | 52 |  | 35 |  | 22 |  | 8 |  | 2 |  | 2 |  | — |  | — |  | 121 |
Special Mention | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Accruing Substandard | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Nonaccrual | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total other consumer | 52 |  | 35 |  | 22 |  | 8 |  | 2 |  | 2 |  | — |  | — |  | 121 |
Total consumer | 1,271 |  | 1,099 |  | 3,409 |  | 1,928 |  | 934 |  | 2,229 |  | 3,990 |  | 108 |  | 14,968 |
Total loans | $ | 8,437 |  | $ | 6,729 |  | $ | 11,321 |  | $ | 7,007 |  | $ | 3,912 |  | $ | 7,759 |  | $ | 13,581 |  | $ | 664 |  | $ | 59,410 |
The following schedules present gross charge-offs by year of loan origination for the periods presented.
| Three Months Ended September 30, 2025
| Term loans | Revolving loans gross charge-offs | Revolving loans converted to term loans gross charge-offs |
| Gross charge-offs by year of loan origination |
(In millions) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total
Commercial: |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | — |  | $ | 1 |  | $ | — |  | $ | 1 |  | $ | — |  | $ | 1 |  | $ | 55 |  | $ | — |  | $ | 58 |
Municipal | — |  | — |  | — |  | — |  | 3 |  | — |  | — |  | — |  | 3 |
Total commercial | — |  | 1 |  | — |  | 1 |  | 3 |  | 1 |  | 55 |  | — |  | 61 |
Commercial real estate: |  |  |  |  |  |  |  |  |
Term | — |  | — |  | 3 |  | — |  | — |  | — |  | — |  | — |  | 3 |
Consumer: |  |  |  |  |  |  |  |  |
Bankcard and other revolving plans | — |  | — |  | — |  | — |  | — |  | — |  | 2 |  | — |  | 2 |
Other | — |  | — |  | — |  | — |  | — |  | 1 |  | — |  | — |  | 1 |
Total consumer | — |  | — |  | — |  | — |  | — |  | 1 |  | 2 |  | — |  | 3 |
Total gross charge-offs | $ | — |  | $ | 1 |  | $ | 3 |  | $ | 1 |  | $ | 3 |  | $ | 2 |  | $ | 57 |  | $ | — |  | $ | 67 |
| Nine Months Ended September 30, 2025
| Term loans | Revolving loans gross charge-offs | Revolving loans converted to term loans gross charge-offs |
| Gross charge-offs by year of loan origination |
(In millions) | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total
Commercial: |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | — |  | $ | 2 |  | $ | 2 |  | $ | 2 |  | $ | 3 |  | $ | 12 |  | $ | 68 |  | $ | — |  | $ | 89 |
Municipal | — |  | — |  | — |  | — |  | 3 |  | — |  | — |  | — |  | 3 |
Leasing | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |
Total commercial | — |  | 2 |  | 2 |  | 2 |  | 6 |  | 12 |  | 68 |  | — |  | 92 |
Commercial real estate: |  |  |  |  |  |  |  |  |
Term | 1 |  | — |  | 3 |  | — |  | — |  | — |  | — |  | — |  | 4 |
Consumer: |  |  |  |  |  |  |  |  |
1-4 family residential | — |  | — |  | — |  | — |  | 1 |  | 2 |  | — |  | — |  | 3 |
Home equity credit line | — |  | — |  | — |  | — |  | — |  | — |  | 1 |  | — |  | 1 |
Bankcard and other revolving plans | — |  | — |  | — |  | — |  | — |  | — |  | 6 |  | — |  | 6 |
Other | — |  | — |  | — |  | — |  | — |  | 1 |  | — |  | — |  | 1 |
Total consumer | — |  | — |  | — |  | — |  | 1 |  | 3 |  | 7 |  | — |  | 11 |
Total gross charge-offs | $ | 1 |  | $ | 2 |  | $ | 5 |  | $ | 2 |  | $ | 7 |  | $ | 15 |  | $ | 75 |  | $ | — |  | $ | 107 |
| Three Months Ended September 30, 2024
| Term loans | Revolving loans gross charge-offs | Revolving loans converted to term loans gross charge-offs |
| Gross charge-offs by year of loan origination |
(In millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total
Commercial: |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | — |  | $ | 1 |  | $ | 4 |  | $ | — |  | $ | — |  | $ | 1 |  | $ | 4 |  | $ | 1 |  | $ | 11 |
Owner-occupied | — |  | — |  | 1 |  | — |  | — |  | — |  | — |  | — |  | 1 |
Total commercial | — |  | 1 |  | 5 |  | — |  | — |  | 1 |  | 4 |  | 1 |  | 12 |
Consumer: |  |  |  |  |  |  |  |  |
Home equity credit line | — |  | — |  | — |  | — |  | — |  | — |  | 1 |  | — |  | 1 |
Bankcard and other revolving plans | — |  | — |  | — |  | — |  | — |  | — |  | 2 |  | — |  | 2 |
Total consumer | — |  | — |  | — |  | — |  | — |  | — |  | 3 |  | — |  | 3 |
Total gross charge-offs | $ | — |  | $ | 1 |  | $ | 5 |  | $ | — |  | $ | — |  | $ | 1 |  | $ | 7 |  | $ | 1 |  | $ | 15 |
| Nine Months Ended September 30, 2024
| Term loans | Revolving loans gross charge-offs | Revolving loans converted to term loans gross charge-offs |
| Gross charge-offs by year of loan origination |
(In millions) | 2024 | 2023 | 2022 | 2021 | 2020 | Prior | Total
Commercial: |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | — |  | $ | 3 |  | $ | 8 |  | $ | 2 |  | $ | — |  | $ | 4 |  | $ | 10 |  | $ | 2 |  | $ | 29 |
Owner occupied | — |  | — |  | 1 |  | — |  | — |  | — |  | — |  | — |  | 1 |
Total commercial | — |  | 3 |  | 9 |  | 2 |  | — |  | 4 |  | 10 |  | 2 |  | 30 |
Commercial real estate: |  |  |  |  |  |  |  |  |
Term | — |  | 7 |  | 4 |  | — |  | — |  | — |  | — |  | — |  | 11 |
Consumer: |  |  |  |  |  |  |  |  |
1-4 family residential | — |  | — |  | — |  | — |  | — |  | 1 |  | — |  | — |  | 1 |
Home equity credit line | — |  | — |  | — |  | — |  | — |  | — |  | 1 |  | — |  | 1 |
Bankcard and other revolving plans | — |  | — |  | — |  | — |  | — |  | — |  | 6 |  | — |  | 6 |
Other | — |  | — |  | — |  | — |  | — |  | 1 |  | — |  | — |  | 1 |
Total consumer | — |  | — |  | — |  | — |  | — |  | 2 |  | 7 |  | — |  | 9 |
Total gross charge-offs | $ | — |  | $ | 10 |  | $ | 13 |  | $ | 2 |  | $ | — |  | $ | 6 |  | $ | 17 |  | $ | 2 |  | $ | 50 |
Loan Modifications Loans may be modified in the normal course of business for competitive reasons or to strengthen our collateral position. Loan modifications may also occur when the borrower experiences financial difficulty and needs temporary or permanent relief from the original contractual terms of the loan. For loans that have been modified with a borrower experiencing financial difficulty, we use the same credit loss estimation methods that we use for the rest of the loan portfolio. These methods incorporate the post-modification loan terms, as well as defaults and charge-offs associated with historical modified loans. All nonaccruing loans more than $1 million are evaluated individually, regardless of modification. We consider many factors in determining whether to agree to a loan modification and we seek a solution that will both minimize potential loss to us and attempt to help the borrower. We evaluate borrowers’ current and forecasted future cash flows, their ability and willingness to make current contractual or proposed modified payments, the value of the underlying collateral (if applicable), the possibility of obtaining additional security or guarantees, and the potential costs related to a repossession or foreclosure and the subsequent sale of the collateral. A modified loan on nonaccrual will generally remain on nonaccrual until the borrower has proven the ability to perform under the modified structure for a minimum of six months, and there is evidence that such payments can and are likely to continue as agreed. Performance prior to the modification, or significant events that coincide with the modification, are included in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual at the time of modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual. On an ongoing basis, we monitor the performance of all modified loans in accordance with their modified terms. For the three and nine months ended September 30, 2025, the amortized cost of modified loans that experienced a payment default within 12 months of modification and remained in default at period end was approximately $2 million and $4 million, respectively. For the three and nine months ended September 30, 2024, the corresponding amounts were $5 million for both periods. The amortized cost of loans to borrowers experiencing financial difficulty that were modified during the period, by loan class and modification type, is summarized in the following schedule:
| Three Months Ended September 30, 2025
| Amortized cost associated with the following modification types: |  |  |  |
(Dollar amounts in millions) | Interest rate reduction |  | Maturity or term extension |  | Principal forgiveness |  | Payment deferral |  |  |  | Multiple modification types 1 |  | Total 2 |  | Percentage of total loans 3
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | — |  |  | $ | 58 |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 58 |  |  | 0.3 | %
Owner-occupied | — |  |  | 23 |  |  | — |  |  | — |  |  |  |  | — |  |  | 23 |  |  | 0.2 |
Total commercial | — |  |  | 81 |  |  | — |  |  | — |  |  |  |  | — |  |  | 81 |  |  | 0.3 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Term | — |  |  | 128 |  |  | — |  |  | — |  |  |  |  | — |  |  | 128 |  |  | 1.2 |
Construction and land development | — |  |  | 1 |  |  | — |  |  | — |  |  |  |  | — |  |  | 1 |  |  | — |
Total commercial real estate | — |  |  | 129 |  |  | — |  |  | — |  |  |  |  | — |  |  | 129 |  |  | 1.0 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential | — |  |  | — |  |  | 2 |  |  | — |  |  |  |  | 4 |  |  | 6 |  |  | 0.1 |
Total | $ | — |  |  | $ | 210 |  |  | $ | 2 |  |  | $ | — |  |  |  |  | $ | 4 |  |  | $ | 216 |  |  | 0.4 |
| Nine Months Ended September 30, 2025
| Amortized cost associated with the following modification types: |  |  |  |
(Dollar amounts in millions) | Interest rate reduction |  | Maturity or term extension |  | Principal forgiveness |  | Payment deferral |  | Multiple modification types 1 |  | Total 2 |  | Percentage of total loans 3
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | — |  |  | $ | 106 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 106 |  |  | 0.6 | %
Owner-occupied | — |  |  | 25 |  |  | — |  |  | — |  |  | — |  |  | 25 |  |  | 0.3 |
Total commercial | — |  |  | 131 |  |  | — |  |  | — |  |  | — |  |  | 131 |  |  | 0.4 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |
Term | — |  |  | 322 |  |  | — |  |  | 8 |  |  | 7 |  |  | 337 |  |  | 3.1 |
Construction and land development | — |  |  | 26 |  |  | — |  |  | — |  |  | — |  |  | 26 |  |  | 1.1 |
Total commercial real estate | — |  |  | 348 |  |  | — |  |  | 8 |  |  | 7 |  |  | 363 |  |  | 2.7 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential | — |  |  | — |  |  | 2 |  |  | — |  |  | 7 |  |  | 9 |  |  | 0.1 |
Home equity credit line | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |  |  | — |
Total consumer | — |  |  | — |  |  | 2 |  |  | — |  |  | 8 |  |  | 10 |  |  | 0.1 |
Total | $ | — |  |  | $ | 479 |  |  | $ | 2 |  |  | $ | 8 |  |  | $ | 15 |  |  | $ | 504 |  |  | 0.8 |
| Three Months Ended September 30, 2024
| Amortized cost associated with the following modification types: |  |  |  |
(Dollar amounts in millions) | Interest rate reduction |  | Maturity or term extension |  | Principal forgiveness |  | Payment deferral |  |  |  | Multiple modification types 1 |  | Total 2 |  | Percentage of total loans 3
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 9 |  |  | $ | 11 |  |  | $ | — |  |  | $ | 1 |  |  |  |  | $ | 13 |  |  | $ | 34 |  |  | 0.2 | %
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Term | — |  |  | 33 |  |  | — |  |  | — |  |  |  |  | 36 |  |  | 69 |  |  | 0.6 |
Construction and land development | — |  |  | 5 |  |  | — |  |  | — |  |  |  |  | — |  |  | 5 |  |  | 0.2 |
Total commercial real estate | — |  |  | 38 |  |  | — |  |  | — |  |  |  |  | 36 |  |  | 74 |  |  | 0.5 |
Total | $ | 9 |  |  | $ | 49 |  |  | $ | — |  |  | $ | 1 |  |  |  |  | $ | 49 |  |  | $ | 108 |  |  | 0.2 |
| Nine Months Ended September 30, 2024
| Amortized cost associated with the following modification types: |  |  |  |
(Dollar amounts in millions) | Interest rate reduction |  | Maturity or term extension |  | Principal forgiveness |  | Payment deferral |  | Multiple modification types 1 |  | Total 2 |  | Percentage of total loans 3
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 9 |  |  | $ | 44 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 22 |  |  | $ | 77 |  |  | 0.5 | %
Owner-occupied | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | — |
Municipal | — |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 3 |  |  | 0.1 |
Total commercial | 9 |  |  | 48 |  |  | — |  |  | 2 |  |  | 22 |  |  | 81 |  |  | 0.3 |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |
Term | — |  |  | 110 |  |  | — |  |  | — |  |  | 36 |  |  | 146 |  |  | 1.4 |
Construction and land development | — |  |  | 7 |  |  | — |  |  | — |  |  | — |  |  | 7 |  |  | 0.2 |
Total commercial real estate | — |  |  | 117 |  |  | — |  |  | — |  |  | 36 |  |  | 153 |  |  | 1.1 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential | — |  |  | — |  |  | 2 |  |  | — |  |  | 2 |  |  | 4 |  |  | — |
Home equity credit line | — |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 1 |  |  | — |
Other | — |  |  | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |  |  | 0.8 |
Total consumer | — |  |  | 1 |  |  | 2 |  |  | — |  |  | 3 |  |  | 6 |  |  | — |
Total | $ | 9 |  |  | $ | 166 |  |  | $ | 2 |  |  | $ | 2 |  |  | $ | 61 |  |  | $ | 240 |  |  | 0.4 |
1 Includes modifications that resulted from a combination of interest rate reduction, maturity or term extension, principal forgiveness, and payment deferral modifications. 2 Unfunded lending commitments related to loans modified to borrowers experiencing financial difficulty totaled $29 million and $8 million at September 30, 2025 and September 30, 2024, respectively. 3 Amounts less than 0.05% are rounded to zero. The financial impact of loan modifications to borrowers experiencing financial difficulty is summarized in the following schedules:
| Three Months Ended September 30, 2025 |  | Nine Months Ended September 30, 2025 |  |
| Weighted-average interest rate reduction (in percentage points) |  | Weighted-average term extension (in months) |  | Weighted-average interest rate reduction (in percentage points) |  | Weighted-average term extension (in months) |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial | — | % |  | 8 |  | — | % |  | 10 |  |  |  |  |  |  |  |
Owner-occupied | — |  |  | 3 |  | — |  |  | 19 |  |  |  |  |  |  |  |
Total commercial | — |  |  | 7 |  | — |  |  | 11 |  |  |  |  |  |  |  |
Commercial real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Term | — |  |  | 8 |  | 0.1 |  |  | 12 |  |  |  |  |  |  |  |
Construction and land development | — |  |  | 3 |  | — |  |  | 8 |  |  |  |  |  |  |  |
Total commercial real estate | — |  |  | 8 |  | 0.1 |  |  | 12 |  |  |  |  |  |  |  |
Consumer:1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1-4 family residential | — |  |  | 11 |  | 0.9 |  |  | 7 |  |  |  |  |  |  |  |
Home equity credit line | — |  |  | 0 |  | 2.8 |  |  | 43 |  |  |  |  |  |  |  |
Total consumer | — |  |  | 11 |  | 2.4 |  |  | 9 |  |  |  |  |  |  |  |
Total weighted average financial impact | — |  |  | 7 |  | 0.3 |  |  | 11 |  |  |  |  |  |  |  |
| Three Months Ended September 30, 2024 |  | Nine Months Ended September 30, 2024
| Weighted-average interest rate reduction (in percentage points) |  | Weighted-average term extension (in months) |  | Weighted-average interest rate reduction (in percentage points) |  | Weighted-average term extension (in months)
Commercial: |  |  |  |  |  |  |
Commercial and industrial | 0.3 | % |  | 5 |  | 0.4 | % |  | 7
Owner-occupied | — |  |  | 0 |  | — |  |  | 3
Municipal | — |  |  | 0 |  | — |  |  | 61
Total commercial | 0.3 |  |  | 5 |  | 0.4 |  |  | 9
Commercial real estate: |  |  |  |  |  |  |
Term | 0.2 |  |  | 3 |  | 0.2 |  |  | 10
Construction and land development | — |  |  | 8 |  | — |  |  | 1
Total commercial real estate | 0.2 |  |  | 8 |  | 0.2 |  |  | 10
Consumer:1 |  |  |  |  |  |  |
1-4 family residential | — |  |  | 0 |  | 1.3 |  |  | 78
Home equity credit line | — |  |  | 0 |  | 6.8 |  |  | 44
Other | — |  |  | 0 |  | — |  |  | 71
Total consumer | — |  |  | 0 |  | 8.0 |  |  | 67
Total weighted average financial impact | 0.3 |  |  | 7 |  | 0.4 |  |  | 11
1 Primarily relates to a small number of loans within each consumer loan class. For the three and nine months ended September 30, 2025, loan modifications granted to borrowers experiencing financial difficulty resulted in approximately $2 million in principal forgiveness across the total loan portfolio, compared with less than $1 million during the corresponding periods in 2024. The following schedule presents the aging of loans to borrowers experiencing financial difficulty that were modified on or after October 1, 2024 through September 30, 2025, presented by portfolio segment and loan class:
| September 30, 2025
(In millions) | Current |  | 30-89 days past due |  | 90+ days past due |  | Total past due |  | Total amortized cost of loans
Commercial: |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 104 |  |  | $ | 2 |  |  | $ | — |  |  | $ | 2 |  |  | $ | 106 |
Owner-occupied | 32 |  |  | — |  |  | 1 |  |  | 1 |  |  | 33 |
Total commercial | 136 |  |  | 2 |  |  | 1 |  |  | 3 |  |  | 139 |
Commercial real estate: |  |  |  |  |  |  |  |  |
Term | 352 |  |  | 18 |  |  | 10 |  |  | 28 |  |  | 380 |
Construction and land development | 26 |  |  | — |  |  | — |  |  | — |  |  | 26 |
Total commercial real estate | 378 |  |  | 18 |  |  | 10 |  |  | 28 |  |  | 406 |
Consumer: |  |  |  |  |  |  |  |  |
1-4 family residential | 10 |  |  | 1 |  |  | 1 |  |  | 2 |  |  | 12 |
Home equity credit line | 1 |  |  | 1 |  |  | — |  |  | 1 |  |  | 2 |
Total consumer | 11 |  |  | 2 |  |  | 1 |  |  | 3 |  |  | 14 |
Total | $ | 525 |  |  | $ | 22 |  |  | $ | 12 |  |  | $ | 34 |  |  | $ | 559 |
The following schedule presents the aging of loans to borrowers experiencing financial difficulty that were modified on or after October 1, 2023 through September 30, 2024, presented by portfolio segment and loan class:
| September 30, 2024
(In millions) | Current |  | 30-89 days past due |  | 90+ days past due |  | Total past due |  | Total amortized cost of loans
Commercial: |  |  |  |  |  |  |  |  |
Commercial and industrial | $ | 76 |  |  | $ | 4 |  |  | $ | 3 |  |  | $ | 7 |  |  | $ | 83 |
Owner-occupied | 6 |  |  | — |  |  | — |  |  | — |  |  | 6 |
Municipal | 3 |  |  | 8 |  |  | — |  |  | 8 |  |  | 11 |
Total commercial | 85 |  |  | 12 |  |  | 3 |  |  | 15 |  |  | 100 |
Commercial real estate: |  |  |  |  |  |  |  |  |
Term | 170 |  |  | — |  |  | 5 |  |  | 5 |  |  | 175 |
Construction and land development | 24 |  |  | — |  |  | 2 |  |  | 2 |  |  | 26 |
Total commercial real estate | 194 |  |  | — |  |  | 7 |  |  | 7 |  |  | 201 |
Consumer: |  |  |  |  |  |  |  |  |
1-4 family residential | 4 |  |  | — |  |  | — |  |  | — |  |  | 4 |
Home equity credit line | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
Other | 1 |  |  | — |  |  | — |  |  | — |  |  | 1 |
Total consumer | 6 |  |  | — |  |  | — |  |  | — |  |  | 6 |
Total | $ | 285 |  |  | $ | 12 |  |  | $ | 10 |  |  | $ | 22 |  |  | $ | 307 |
Collateral-Dependent Loans When a loan is individually evaluated for expected credit losses, we estimate a specific reserve for the loan based on (1) the projected present value of the loan’s future cash flows discounted at the loan’s effective interest rate, (2) the observable market price of the loan, or (3) the fair value of the loan’s underlying collateral. Select information on loans for which the borrower is experiencing financial difficulties and repayment is expected to be provided substantially through the operation or sale of the underlying collateral, including the type of collateral and the extent to which the collateral secures the loans, is summarized as follows:
| September 30, 2025
(Dollar amounts in millions) | Amortized cost |  | Major types of collateral |  | Weighted average LTV 1
Commercial: |  |  |  |  |
Commercial and industrial | $ | 3 |  |  | Single family residential |  | 75%
Owner-occupied | 11 |  |  | Industrial building |  | 69%
Municipal | 2 |  |  | Multifamily apartments |  | 97%
Commercial real estate: |  |  |  |  |
Term | 61 |  |  | Office building |  | 98%
Consumer: |  |  |  |  |
1-4 family residential | 3 |  |  | Single family residential |  | 42%
Total | $ | 80 |  |  |  |  |
| December 31, 2024
(Dollar amounts in millions) | Amortized cost |  | Major types of collateral |  | Weighted average LTV 1
Commercial: |  |  |  |  |
Owner occupied | $ | 6 |  |  | Retail facility |  | 64%
Municipal | 5 |  |  | Multifamily apartments |  | 174%
Commercial real estate: |  |  |  |  |
Term | 49 |  |  | Office building |  | 98%
Consumer: |  |  |  |  |
1-4 family residential | 3 |  |  | Single family residential |  | 38%
Home equity credit line | 3 |  |  | Single family residential |  | 29%
Total | $ | 66 |  |  |  |  |
1 The fair value is based on the most recent appraisal or other collateral evaluation. Foreclosed Residential Real Estate The balance of foreclosed residential real estate property was $1 million at September 30, 2025, compared with less than $1 million at December 31, 2024. The amortized cost basis of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure was $21 million and $14 million for the same periods, respectively.

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