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LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES

9 Months Ended

Sep. 30, 2025

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.