Outstanding Loans and Leases and Allowance for Credit Losses

v3.25.0.1

Outstanding Loans and Leases and Allowance for Credit Losses	12 Months Ended
	Dec. 31, 2024
Receivables [Abstract]
Outstanding Loans and Leases and Allowance for Credit Losses	Outstanding Loans and Leases and Allowance for Credit Losses The following tables present total outstanding loans and leases and an aging analysis for the Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at December 31, 2024 and 2023. 30-59 Days  Past Due (1) 60-89 Days  Past Due (1) 90 Days or More Past Due (1) Total Past Due 30 Days or More Total  Current or  Less Than  30 Days  Past Due (1) Loans  Accounted  for Under  the Fair  Value  Option Total Outstandings (Dollars in millions) December 31, 2024 Consumer real estate             Residential mortgage $ 1,222  $ 288  $ 788  $ 2,298  $ 225,901  $ 228,199  Home equity 80  40  127  247  25,490  25,737  Credit card and other consumer Credit card 685  552  1,401  2,638  100,928  103,566  Direct/Indirect consumer (2) 290  113  106  509  106,613  107,122  Other consumer —  —  —  —  151  151  Total consumer 2,277  993  2,422  5,692  459,083  464,775  Consumer loans accounted for under the fair value option (3) $ 221  221  Total consumer loans and leases 2,277  993  2,422  5,692  459,083  221  464,996  Commercial U.S. commercial 910  228  345  1,483  385,507  386,990  Non-U.S. commercial 65  17  4  86  137,432  137,518  Commercial real estate (4) 640  121  990  1,751  63,979  65,730  Commercial lease financing 32  9  19  60  15,648  15,708  U.S. small business commercial 190  94  199  483  20,382  20,865  Total commercial 1,837  469  1,557  3,863  622,948  626,811  Commercial loans accounted for under the fair value option (3) 4,028  4,028  Total commercial loans and leases 1,837  469  1,557  3,863  622,948  4,028  630,839  Total loans and leases (5) $ 4,114  $ 1,462  $ 3,979  $ 9,555  $ 1,082,031  $ 4,249  $ 1,095,835  Percentage of outstandings 0.38  % 0.13  % 0.36  % 0.87  % 98.74  % 0.39  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $188 million and nonperforming loans of $174 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $71 million and nonperforming loans of $107 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $229 million and nonperforming loans of $686 million. Consumer real estate loans current or less than 30 days past due includes $1.5 billion, and direct/indirect consumer includes $54 million of nonperforming loans. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $54.9 billion, U.S. securities-based lending loans of $48.7 billion and non-U.S. consumer loans of $2.8 billion. (3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $59 million and home equity loans of $162 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.8 billion and non-U.S. commercial loans of $1.3 billion. For more information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option. (4)Total outstandings includes U.S. commercial real estate loans of $59.6 billion and non-U.S. commercial real estate loans of $6.1 billion. (5)Total outstandings includes loans and leases pledged as collateral of $26.8 billion. The Corporation also pledged $305.2 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank. 30-59 Days Past Due (1) 60-89 Days  Past Due (1) 90 Days or More Past Due (1) Total Past Due 30 Days or More Total Current or Less Than 30 Days Past Due (1) Loans Accounted for Under the Fair Value Option Total Outstandings (Dollars in millions) December 31, 2023 Consumer real estate             Residential mortgage $ 1,177  $ 302  $ 829  $ 2,308  $ 226,095  $ 228,403  Home equity 90  38  161  289  25,238  25,527  Credit card and other consumer           Credit card 680  515  1,224  2,419  99,781    102,200  Direct/Indirect consumer (2) 306  99  91  496  102,972    103,468  Other consumer  —  —  —  —  124    124  Total consumer 2,253  954  2,305  5,512  454,210  459,722  Consumer loans accounted for under the fair value option (3) $ 243  243  Total consumer loans and leases 2,253  954  2,305  5,512  454,210  243  459,965  Commercial               U.S. commercial 477  96  225  798  358,133    358,931  Non-U.S. commercial 86  21  64  171  124,410    124,581  Commercial real estate (4) 247  133  505  885  71,993    72,878  Commercial lease financing 44  8  24  76  14,778    14,854  U.S. small business commercial 166  89  184  439  18,758    19,197  Total commercial 1,020  347  1,002  2,369  588,072    590,441  Commercial loans accounted for under the fair value option (3) 3,326  3,326  Total commercial loans and leases 1,020  347  1,002  2,369  588,072  3,326  593,767  Total loans and leases (5) $ 3,273  $ 1,301  $ 3,307  $ 7,881  $ 1,042,282  $ 3,569  $ 1,053,732  Percentage of outstandings 0.31  % 0.12  % 0.31  % 0.75  % 98.91  % 0.34  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $198 million and nonperforming loans of $150 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $77 million and nonperforming loans of $102 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $252 million and nonperforming loans of $738 million. Consumer real estate loans current or less than 30 days past due includes $1.6 billion, and direct/indirect consumer includes $39 million of nonperforming loans. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $53.9 billion, U.S. securities-based lending loans of $46.0 billion and non-U.S. consumer loans of $2.8 billion. (3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $66 million and home equity loans of $177 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.2 billion and non-U.S. commercial loans of $1.2 billion. For more information, see Note 20 – Fair Value Measurements and Note 21 – Fair Value Option. (4)Total outstandings includes U.S. commercial real estate loans of $66.8 billion and non-U.S. commercial real estate loans of $6.1 billion. (5)Total outstandings includes loans and leases pledged as collateral of $33.7 billion. The Corporation also pledged $246.0 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank. The Corporation has entered into long-term credit protection agreements with FNMA and FHLMC on loans totaling $8.0 billion and $8.7 billion at December 31, 2024 and 2023, providing full credit protection on residential mortgage loans that become severely delinquent. All of these loans are individually insured, and therefore the Corporation does not record an allowance for credit losses related to these loans. Nonperforming Loans and Leases Nonperforming loans were $6.0 billion and $5.5 billion at December 31, 2024 and 2023. Commercial nonperforming loans were $3.3 billion and $2.8 billion at December 31, 2024 and 2023 and were primarily comprised of commercial real estate. Consumer nonperforming loans were $2.6 billion and $2.7 billion at December 31, 2024 and 2023, primarily comprised of residential mortgage. The following table presents the Corporation’s nonperforming loans and leases and loans accruing past due 90 days or more at December 31, 2024 and 2023. Nonperforming LHFS are excluded from nonperforming loans and leases as they are recorded at either fair value or the lower of cost or fair value. For more information on the criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles. Credit Quality Nonperforming Loans and Leases Accruing Past Due 90 Days or More December 31 (Dollars in millions) 2024 2023 2024 2023 Residential mortgage (1) $ 2,052  $ 2,114  $ 229  $ 252  With no related allowance (2) 1,883  1,974  —  —  Home equity (1) 409  450  —  —  With no related allowance (2) 334  375  —  —  Credit Card             n/a             n/a 1,401  1,224  Direct/indirect consumer 186  148  1  2  Total consumer 2,647  2,712  1,631  1,478  U.S. commercial 1,204  636  90  51  Non-U.S. commercial 8  175  4  4  Commercial real estate 2,068  1,927  6  32  Commercial lease financing 20  19  3  7  U.S. small business commercial 28  16  197  184  Total commercial 3,328  2,773  300  278  Total nonperforming loans $ 5,975  $ 5,485  $ 1,931  $ 1,756  Percentage of outstanding loans and leases 0.55  % 0.52  % 0.18  % 0.17  % (1)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At December 31, 2024 and 2023 residential mortgage included $119 million and $156 million of loans on which interest had been curtailed by the FHA, and therefore were no longer accruing interest, although principal was still insured, and $110 million and $96 million of loans on which interest was still accruing. (2)Primarily relates to loans for which the estimated fair value of the underlying collateral less any costs to sell is greater than the amortized cost of the loans as of the reporting date. n/a = not applicable Credit Quality Indicators The Corporation monitors credit quality within its Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments based on primary credit quality indicators. For more information on the portfolio segments, see Note 1 – Summary of Significant Accounting Principles. Within the Consumer Real Estate portfolio segment, the primary credit quality indicators are refreshed LTV and refreshed Fair Isaac Corporation (FICO) score. Refreshed LTV measures the carrying value of the loan as a percentage of the value of the property securing the loan, refreshed quarterly. Home equity loans are evaluated using CLTV, which measures the carrying value of the Corporation’s loan and available line of credit combined with any outstanding senior liens against the property as a percentage of the value of the property securing the loan, refreshed quarterly. FICO score measures the creditworthiness of the borrower based on the financial obligations of the borrower and the borrower’s credit history. FICO scores are typically refreshed quarterly or more frequently. Certain borrowers (e.g., borrowers that have had debts discharged in a bankruptcy proceeding) may not have their FICO scores updated. FICO scores are also a primary credit quality indicator for the Credit Card and Other Consumer portfolio segment and the business card portfolio within U.S. small business commercial. Within the Commercial portfolio segment, loans are evaluated using the internal classifications of pass rated or reservable criticized as the primary credit quality indicators. The term reservable criticized refers to those commercial loans that are internally classified or listed by the Corporation as Special Mention, Substandard or Doubtful, which are asset quality categories defined by regulatory authorities. These assets have an elevated level of risk and may have a high probability of default or total loss. Pass rated refers to all loans not considered reservable criticized. In addition to these primary credit quality indicators, the Corporation uses other credit quality indicators for certain types of loans. The following tables present certain credit quality indicators and gross charge-offs for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by year of origination, except for revolving loans and revolving loans that were modified into term loans, which are shown on an aggregate basis at December 31, 2024. Residential Mortgage – Credit Quality Indicators By Vintage Term Loans by Origination Year (Dollars in millions) Total as of December 31,  2024 2024 2023 2022 2021 2020 Prior Residential Mortgage Refreshed LTV       Less than or equal to 90 percent $ 215,575  $ 18,115  $ 12,910  $ 36,748  $ 71,912  $ 32,504  $ 43,386  Greater than 90 percent but less than or equal to 100 percent 1,848  724  463  471  122  31  37  Greater than 100 percent 863  428  195  144  56  15  25  Fully-insured loans 9,913  288  190  302  3,153  2,568  3,412  Total Residential Mortgage $ 228,199  $ 19,555  $ 13,758  $ 37,665  $ 75,243  $ 35,118  $ 46,860  Residential Mortgage Refreshed FICO score Less than 620 $ 2,619  $ 172  $ 171  $ 484  $ 649  $ 427  $ 716  Greater than or equal to 620 and less than 680 4,687  329  337  826  1,201  736  1,258  Greater than or equal to 680 and less than 740 22,666  2,008  1,553  4,112  6,322  3,431  5,240  Greater than or equal to 740 188,314  16,758  11,507  31,941  63,918  27,956  36,234  Fully-insured loans 9,913  288  190  302  3,153  2,568  3,412  Total Residential Mortgage $ 228,199  $ 19,555  $ 13,758  $ 37,665  $ 75,243  $ 35,118  $ 46,860  Gross charge-offs for the year ended December 31, 2024 $ 21  $ 2  $ 3  $ 6  $ 2  $ 1  $ 7  Home Equity - Credit Quality Indicators Total Home Equity Loans and Reverse Mortgages (1) Revolving Loans Revolving Loans Converted to Term Loans (Dollars in millions) December 31, 2024 Home Equity Refreshed LTV       Less than or equal to 90 percent $ 25,638  $ 780  $ 21,450  $ 3,408  Greater than 90 percent but less than or equal to 100 percent 51  4  42  5  Greater than 100 percent 48  3  34  11  Total Home Equity $ 25,737  $ 787  $ 21,526  $ 3,424  Home Equity Refreshed FICO score Less than 620 $ 645  $ 72  $ 320  $ 253  Greater than or equal to 620 and less than 680 1,115  83  689  343  Greater than or equal to 680 and less than 740 4,373  161  3,429  783  Greater than or equal to 740 19,604  471  17,088  2,045  Total Home Equity $ 25,737  $ 787  $ 21,526  $ 3,424  Gross charge-offs for the year ended December 31, 2024 $ 21  $ 6  $ 9  $ 6  (1)Includes reverse mortgages of $500 million and home equity loans of $287 million, which are no longer originated. Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage Direct/Indirect Term Loans by Origination Year Credit Card (Dollars in millions) Total Direct/ Indirect as of December 31, 2024 Revolving Loans 2024 2023 2022 2021 2020 Prior Total Credit Card as of December 31, 2024 Revolving Loans Revolving Loans Converted to Term Loans (1) Refreshed FICO score     Less than 620 $ 1,483  $ 10  $ 249  $ 452  $ 433  $ 243  $ 53  $ 43  $ 5,866  $ 5,511  $ 355  Greater than or equal to 620 and less than 680 2,360  9  735  699  523  272  67  55  11,580  11,250  330  Greater than or equal to 680 and less than 740 8,071  42  3,038  2,179  1,587  825  226  174  35,037  34,743  294  Greater than or equal to 740 43,141  67  17,889  11,240  7,635  3,908  1,319  1,083  51,083  51,019  64  Other internal credit    metrics (2,3) 52,067  51,433  165  51  127  95  36  160  —  —  —  Total credit card and other    consumer $ 107,122  $ 51,561  $ 22,076  $ 14,621  $ 10,305  $ 5,343  $ 1,701  $ 1,515  $ 103,566  $ 102,523  $ 1,043  Gross charge-offs for the year    ended December 31, 2024 $ 399  $ 5  $ 46  $ 144  $ 109  $ 51  $ 12  $ 32  $ 4,365  $ 4,188  $ 177  (1)Represents loans that were modified into term loans. (2)Other internal credit metrics may include delinquency status, geography or other factors. (3)Direct/indirect consumer includes $51.4 billion of securities-based lending, which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at December 31, 2024. Commercial – Credit Quality Indicators By Vintage (1) Term Loans Amortized Cost Basis by Origination Year (Dollars in millions) Total as of December 31, 2024 2024 2023 2022 2021 2020 Prior Revolving Loans U.S. Commercial Risk ratings         Pass rated $ 374,380  $ 49,587  $ 33,352  $ 34,015  $ 20,801  $ 10,172  $ 34,176  $ 192,277  Reservable criticized 12,610  157  901  1,035  799  340  1,996  7,382  Total U.S. Commercial $ 386,990  $ 49,744  $ 34,253  $ 35,050  $ 21,600  $ 10,512  $ 36,172  $ 199,659  Gross charge-offs for the year ended    December 31, 2024 $ 439  $ 3  $ 122  $ 80  $ 19  $ 4  $ 63  $ 148  Non-U.S. Commercial Risk ratings Pass rated $ 135,720  $ 27,119  $ 14,268  $ 12,220  $ 11,750  $ 1,328  $ 6,777  $ 62,258  Reservable criticized 1,798  22  180  145  310  8  106  1,027  Total Non-U.S. Commercial $ 137,518  $ 27,141  $ 14,448  $ 12,365  $ 12,060  $ 1,336  $ 6,883  $ 63,285  Gross charge-offs for the year ended    December 31, 2024 $ 81  $ —  $ 41  $ 22  $ 16  $ —  $ —  $ 2  Commercial Real Estate Risk ratings Pass rated $ 55,607  $ 5,422  $ 4,935  $ 10,755  $ 8,990  $ 2,911  $ 13,310  $ 9,284  Reservable criticized 10,123  41  211  3,252  2,100  588  3,372  559  Total Commercial Real Estate $ 65,730  $ 5,463  $ 5,146  $ 14,007  $ 11,090  $ 3,499  $ 16,682  $ 9,843  Gross charge-offs for the year ended    December 31, 2024 $ 894  $ —  $ —  $ 57  $ 83  $ 62  $ 663  $ 29  Commercial Lease Financing Risk ratings Pass rated $ 15,417  $ 3,902  $ 3,675  $ 2,465  $ 1,921  $ 1,033  $ 2,421  $ —  Reservable criticized 291  9  96  67  52  23  44  —  Total Commercial Lease Financing $ 15,708  $ 3,911  $ 3,771  $ 2,532  $ 1,973  $ 1,056  $ 2,465  $ —  Gross charge-offs for the year ended    December 31, 2024 $ 2  $ —  $ —  $ —  $ 2  $ —  $ —  $ —  U.S. Small Business Commercial (2) Risk ratings Pass rated $ 9,806  $ 1,926  $ 1,887  $ 1,650  $ 1,302  $ 604  $ 1,992  $ 445  Reservable criticized 443  8  83  104  115  25  105  3  Total U.S. Small Business Commercial $ 10,249  $ 1,934  $ 1,970  $ 1,754  $ 1,417  $ 629  $ 2,097  $ 448  Gross charge-offs for the year ended    December 31, 2024 $ 30  $ —  $ 1  $ 2  $ 1  $ 6  $ 7  $ 13  Total $ 616,195  $ 88,193  $ 59,588  $ 65,708  $ 48,140  $ 17,032  $ 64,299  $ 273,235  Gross charge-offs for the year ended    December 31, 2024 $ 1,446  $ 3  $ 164  $ 161  $ 121  $ 72  $ 733  $ 192  (1)Excludes $4.0 billion of loans accounted for under the fair value option at December 31, 2024. (2)Excludes U.S. Small Business Card loans of $10.6 billion. Refreshed FICO scores for this portfolio are $699 million for less than 620; $1.2 billion for greater than or equal to 620 and less than 680; $3.0 billion for greater than or equal to 680 and less than 740; and $5.8 billion greater than or equal to 740. Excludes U.S. Small Business Card loans gross charge-offs of $489 million. The following tables present certain credit quality indicators for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by year of origination, except for revolving loans and revolving loans that were modified into term loans, which are shown on an aggregate basis at December 31, 2023. Residential Mortgage – Credit Quality Indicators By Vintage Term Loans by Origination Year (Dollars in millions) Total as of  December 31,  2023 2023 2022 2021 2020 2019 Prior Residential Mortgage Refreshed LTV Less than or equal to 90 percent $ 214,661  $ 15,224  $ 38,225  $ 76,229  $ 35,072  $ 17,432  $ 32,479  Greater than 90 percent but less than or equal to 100 percent 1,994  698  911  286  53  25  21  Greater than 100 percent 785  264  342  100  31  14  34  Fully-insured loans 10,963  540  350  3,415  2,834  847  2,977  Total Residential Mortgage $ 228,403  $ 16,726  $ 39,828  $ 80,030  $ 37,990  $ 18,318  $ 35,511  Residential Mortgage Refreshed FICO score Less than 620 $ 2,335  $ 115  $ 471  $ 589  $ 402  $ 136  $ 622  Greater than or equal to 620 and less than 680 4,671  359  919  1,235  777  296  1,085  Greater than or equal to 680 and less than 740 23,357  1,934  4,652  6,988  3,742  1,836  4,205  Greater than or equal to 740 187,077  13,778  33,436  67,803  30,235  15,203  26,622  Fully-insured loans 10,963  540  350  3,415  2,834  847  2,977  Total Residential Mortgage $ 228,403  $ 16,726  $ 39,828  $ 80,030  $ 37,990  $ 18,318  $ 35,511  Gross charge-offs for the year ended December 31, 2023 $ 67  $ —  $ 7  $ 12  $ 6  $ 2  $ 40  Home Equity - Credit Quality Indicators Total Home Equity Loans and Reverse Mortgages (1) Revolving Loans Revolving Loans Converted to Term Loans (Dollars in millions) December 31, 2023 Home Equity Refreshed LTV Less than or equal to 90 percent $ 25,378  $ 1,051  $ 20,380  $ 3,947  Greater than 90 percent but less than or equal to 100 percent 61  17  35  9  Greater than 100 percent 88  35  36  17  Total Home Equity $ 25,527  $ 1,103  $ 20,451  $ 3,973  Home Equity Refreshed FICO score Less than 620 $ 654  $ 123  $ 253  $ 278  Greater than or equal to 620 and less than 680 1,107  118  589  400  Greater than or equal to 680 and less than 740 4,340  240  3,156  944  Greater than or equal to 740 19,426  622  16,453  2,351  Total Home Equity $ 25,527  $ 1,103  $ 20,451  $ 3,973  Gross charge-offs for the year ended December 31, 2023 $ 36  $ 4  $ 21  $ 11  (1)Includes reverse mortgages of $763 million and home equity loans of $340 million, which are no longer originated. Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage Direct/Indirect Term Loans by Origination Year Credit Card (Dollars in millions) Total Direct/Indirect as of December 31, 2023 Revolving Loans 2023 2022 2021 2020 2019 Prior Total Credit Card as of December 31, 2023 Revolving Loans Revolving Loans Converted to Term Loans (1) Refreshed FICO score Less than 620 $ 1,246  $ 11  $ 292  $ 428  $ 336  $ 85  $ 55  $ 39  $ 5,338  $ 5,030  $ 308  Greater than or equal to 620 and less than 680 2,506  11  937  799  501  121  73  64  11,623  11,345  278  Greater than or equal to 680 and less than 740 8,629  48  3,451  2,582  1,641  462  244  201  34,777  34,538  239  Greater than or equal to 740 41,656  74  16,761  11,802  7,643  2,707  1,417  1,252  50,462  50,410  52  Other internal credit    metrics (2, 3) 49,431  48,764  106  183  110  53  57  158  —  —  —  Total credit card and other    consumer $ 103,468  $ 48,908  $ 21,547  $ 15,794  $ 10,231  $ 3,428  $ 1,846  $ 1,714  $ 102,200  $ 101,323  $ 877  Gross charge-offs for the year    ended December 31, 2023 $ 233  $ 5  $ 32  $ 95  $ 53  $ 15  $ 10  $ 23  $ 3,133  $ 3,013  $ 120  (1)Represents loans that were modified into term loans. (2)Other internal credit metrics may include delinquency status, geography or other factors. (3)Direct/indirect consumer includes $48.8 billion of securities-based lending, which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at December 31, 2023. Commercial – Credit Quality Indicators By Vintage (1) Term Loans Amortized Cost Basis by Origination Year (Dollars in millions) Total as of December 31, 2023 2023 2022 2021 2020 2019 Prior Revolving Loans U.S. Commercial Risk ratings         Pass rated $ 347,563  $ 41,842  $ 43,290  $ 27,738  $ 13,495  $ 11,772  $ 29,923  $ 179,503  Reservable criticized 11,368  278  1,316  708  363  537  1,342  6,824  Total U.S. Commercial $ 358,931  $ 42,120  $ 44,606  $ 28,446  $ 13,858  $ 12,309  $ 31,265  $ 186,327  Gross charge-offs for the year ended    December 31, 2023 $ 191  $ 5  $ 38  $ 29  $ 4  $ 2  $ 27  $ 86  Non-U.S. Commercial Risk ratings Pass rated $ 122,931  $ 17,053  $ 15,810  $ 15,256  $ 2,405  $ 2,950  $ 5,485  $ 63,972  Reservable criticized 1,650  50  184  294  90  158  74  800  Total Non-U.S. Commercial $ 124,581  $ 17,103  $ 15,994  $ 15,550  $ 2,495  $ 3,108  $ 5,559  $ 64,772  Gross charge-offs for the year ended    December 31, 2023 $ 37  $ —  $ —  $ 8  $ 7  $ 1  $ —  $ 21  Commercial Real Estate Risk ratings Pass rated $ 64,150  $ 4,877  $ 16,147  $ 11,810  $ 4,026  $ 7,286  $ 10,127  $ 9,877  Reservable criticized 8,728  134  749  1,728  782  2,132  2,794  409  Total Commercial Real Estate $ 72,878  $ 5,011  $ 16,896  $ 13,538  $ 4,808  $ 9,418  $ 12,921  $ 10,286  Gross charge-offs for the year ended    December 31, 2023 $ 254  $ 2  $ —  $ 4  $ —  $ 59  $ 189  $ —  Commercial Lease Financing Risk ratings Pass rated $ 14,688  $ 4,188  $ 3,077  $ 2,373  $ 1,349  $ 1,174  $ 2,527  $ —  Reservable criticized 166  9  22  46  16  32  41  —  Total Commercial Lease Financing $ 14,854  $ 4,197  $ 3,099  $ 2,419  $ 1,365  $ 1,206  $ 2,568  $ —  Gross charge-offs for the year ended    December 31, 2023 $ 2  $ —  $ —  $ 1  $ 1  $ —  $ —  $ —  U.S. Small Business Commercial (2) Risk ratings Pass rated $ 9,031  $ 1,886  $ 1,830  $ 1,550  $ 836  $ 721  $ 1,780  $ 428  Reservable criticized 384  6  64  95  40  63  113  3  Total U.S. Small Business Commercial $ 9,415  $ 1,892  $ 1,894  $ 1,645  $ 876  $ 784  $ 1,893  $ 431  Gross charge-offs for the year ended    December 31, 2023 $ 43  $ 1  $ 2  $ 2  $ 19  $ 3  $ 4  $ 12   Total $ 580,659  $ 70,323  $ 82,489  $ 61,598  $ 23,402  $ 26,825  $ 54,206  $ 261,816  Gross charge-offs for the year ended    December 31, 2023 $ 527  $ 8  $ 40  $ 44  $ 31  $ 65  $ 220  $ 119  (1) Excludes $3.3 billion of loans accounted for under the fair value option at December 31, 2023. (2) Excludes U.S. Small Business Card loans of $9.8 billion. Refreshed FICO scores for this portfolio are $530 million for less than 620; $1.1 billion for greater than or equal to 620 and less than 680; $2.7 billion for greater than or equal to 680 and less than 740; and $5.5 billion greater than or equal to 740. Excludes U.S. Small Business Card loans gross charge-offs of $317 million. During 2024, commercial reservable criticized utilized exposure increased to $26.5 billion at December 31, 2024 from $23.3 billion (to 4.01 percent from 3.74 percent of total commercial reservable utilized exposure) at December 31, 2023, primarily driven by commercial real estate and U.S. commercial Loan Modifications to Borrowers in Financial Difficulty As part of its credit risk management, the Corporation may modify a loan agreement with a borrower experiencing financial difficulties through a refinancing or restructuring of the borrower’s loan agreement (modification programs). Consumer Real Estate The following modification programs are offered for consumer real estate loans to borrowers experiencing financial difficulties, in addition to borrowers affected by natural disasters. Forbearance and Other Payment Plans: Forbearance plans generally consist of the Corporation suspending the borrower’s payments for a defined period, with those payments then due over a defined period of time or at the conclusion of the forbearance period. The aging status of a loan is generally frozen when it enters into a forbearance plan. If a borrower is unable to fulfill their obligations under the forbearance plans, they may be offered a trial offer or permanent modification. Trial Offer and Permanent Modifications: Trial offer for modification plans generally consist of the Corporation offering a borrower modified loan terms that reduce their contractual payments temporarily over a three-to-four-month trial period. If the customer successfully makes the modified payments during the trial period and formally accepts the modified terms, the modified loan terms become permanent. Some borrowers may enter into permanent modifications without a trial period. In a permanent modification, the borrower’s payment terms are typically modified in more than one manner, but generally include a term extension and an interest rate reduction. At times, the permanent modification may also include principal forgiveness and/or a deferral of past due principal and interest amounts to the end of the loan term. The combinations utilized are based on modifying the terms that give the borrower an improved ability to meet the contractual obligations. The term extensions granted for residential mortgage and home equity permanent modifications vary widely and can be up to 30 years, but most are in the range of 1 to 20 years. Principal forgiveness and payment deferrals were insignificant during 2024 and 2023. The table below provides the ending amortized cost of the Corporation’s modified consumer real estate loans at December 31, 2024 and 2023. Consumer Real Estate - Modifications to Borrowers in Financial Difficulty Forbearance and Other Payment Plans Permanent Modification Total As a % of Financing Receivables (Dollars in millions) Year Ended December 31, 2024 Residential Loans $ 46  $ 186  $ 232  0.10  % Home Equity 1  31  32  0.12  % Total $ 47  $ 217  $ 264  0.10  % Year Ended December 31, 2023 Residential Loans $ 429  $ 154  $ 583  0.26  % Home Equity 57  31  88  0.34  Total $ 486  $ 185  $ 671  0.26  The table below presents the financial effect of modified consumer real estate loans. Financial Effect of Modified Consumer Real Estate Loans Year Ended December 31 2024 2023 Forbearance and Other Payment Plans Weighted-average duration Residential Mortgage 7 months 8 months Home Equity n/a 9 months Permanent Modifications Weighted-average Term Extension Residential Mortgage 9.6 years 9.9 years Home Equity 17.7 years 17.7 years Weighted-average Interest Rate Reduction Residential Mortgage 1.25  % 1.41  % Home Equity 2.61  % 2.74  % n/a = not applicable For consumer real estate borrowers in financial difficulty that received a forbearance, trial or permanent modification, there were no commitments to lend additional funds at December 31, 2024 and 2023. The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. During 2024 and 2023, defaults of residential and home equity loans that had been modified within 12 months were $128 million and $287 million. The table below provides aging information as of December 31, 2024 and 2023 for consumer real estate loans that were modified over the last 12 months. Consumer Real Estate - Payment Status of Modifications to Borrowers in Financial Difficulty Current 30–89 Days Past Due 90+ Days Past Due Total (Dollars in millions) December 31, 2024 Residential mortgage $ 123  $ 54  $ 55  $ 232  Home equity 28  2  2  32  Total $ 151  $ 56  $ 57  $ 264  December 31, 2023 Residential mortgage $ 334  $ 101  $ 148  $ 583  Home equity 58  5  25  88  Total $ 392  $ 106  $ 173  $ 671  Consumer real estate foreclosed properties totaled $60 million and $83 million at December 31, 2024 and 2023. The carrying value of consumer real estate loans, including fully-insured loans, for which formal foreclosure proceedings were in process at December 31, 2024 and 2023, was $464 million and $633 million. During 2024 and 2023, the Corporation reclassified $89 million and $106 million of consumer real estate loans to foreclosed properties or, for properties acquired upon foreclosure of certain government-guaranteed loans (principally FHA-insured loans), to other assets. The reclassifications represent non-cash investing activities and, accordingly, are not reflected in the Consolidated Statement of Cash Flows. Credit Card and Other Consumer Credit card and other consumer loans are primarily modified by placing the customer on a fixed payment plan with a significantly reduced fixed interest rate, with terms ranging from 6 months to 72 months, most of which had a 60-month term at December 31, 2024. In certain circumstances, the Corporation will forgive a portion of the outstanding balance if the borrower makes payments up to a set amount. The Corporation makes modifications directly with borrowers for loans held by the Corporation (internal programs) as well as through third-party renegotiation agencies that provide solutions to customers’ entire unsecured debt structures (external programs). The December 31, 2024 amortized cost of credit card and other consumer loans that were modified through these programs during 2024 was $650 million compared to $598 million in 2023. These modifications represented 0.31 percent of outstanding credit card and other consumer loans for 2024 compared to 0.29 percent for 2023. During 2024, the financial effect of modifications resulted in a weighted-average interest rate reduction of 18.89 percent compared to 19.02 percent in 2023, and principal forgiveness of $113 million compared to $61 million in 2023. The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. During 2024 and 2023, defaults of credit card and other consumer loans that had been modified within 12 months were insignificant. At December 31, 2024, modified credit card and other consumer loans to borrowers experiencing financial difficulty over the last 12 months totaled $650 million, of which $546 million were current, $58 million were 30-89 days past due, and $46 million were greater than 90 days past due. At December 31, 2023, modified credit card and other consumer loans to borrowers experiencing financial difficulty totaled $598 million, of which $491 million were current, $59 million were 30-89 days past due, and $48 million were greater than 90 days past due. Commercial Loans Modifications of loans to commercial borrowers experiencing financial difficulty are designed to reduce the Corporation’s loss exposure while providing borrowers with an opportunity to work through financial difficulties, often to avoid foreclosure or bankruptcy. Each modification is unique, reflects the borrower’s individual circumstances and is designed to benefit the borrower while mitigating the Corporation’s risk exposure. Commercial modifications are primarily term extensions and payment forbearances. Payment forbearances involve the Corporation forbearing its contractual right to collect certain payments or payment in full (maturity forbearance) for a defined period of time. Reductions in interest rates and principal forgiveness occur infrequently for commercial borrowers. Principal forgiveness may occur in connection with foreclosure, short sales or other settlement agreements, leading to termination or sale of the loan. The following table provides the ending amortized cost of commercial loans modified during 2024 and 2023. Commercial Loans - Modifications to Borrowers in Financial Difficulty Term Extension Forbearances Interest Rate Reduction Total As a % of Financing Receivables (Dollars in millions) Year Ended December 31, 2024 U.S. commercial $ 1,266 $ 262 $ — $ 1,528 0.39  % Non-U.S. commercial 27 — — 27 0.02  Commercial real estate 1,849 444 100 2,393 3.64  Total $ 3,142 $ 706 $ 100 $ 3,948 0.67  Year Ended December 31, 2023 U.S. commercial $ 1,016 $ 30 $ — $ 1,046 0.29  % Non-U.S. commercial 136 — 24 160 0.13  Commercial real estate 1,656 416 — 2,072 2.84  Total $ 2,808 $ 446 $ 24 $ 3,278 0.59  Term extensions granted increased the weighted-average life of the impacted loans by 1.7 years during 2024 compared to 1.6 years in 2023. The weighted-average duration of loan payments deferred under the Corporation’s commercial loan forbearance program was 9 months during 2024 and 2023. The deferral period for loan payments can vary, but are mostly in the range of 8 months to 24 months. Modifications of loans to troubled borrowers for Commercial Lease Financing and U.S. Small Business Commercial were not significant during 2024. The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. In 2024 and 2023, defaults of commercial loans that had been modified within 12 months were $102 million and $159 million. The table below provides aging information as of December 31, 2024 and 2023 for commercial loans that were modified over the last 12 months. Commercial - Payment Status of Modified Loans to Borrowers in Financial Difficulty Current 30–89 Days Past Due 90+ Days Past Due Total (Dollars in millions) December 31, 2024 U.S. Commercial $ 1,346  $ 70  $ 112  $ 1,528 Non-U.S. Commercial 27  —  —  27 Commercial Real Estate 2,100  90  203  2,393 Total $ 3,473  $ 160  $ 315  $ 3,948 December 31, 2023 U.S. Commercial $ 1,015  $ 3  $ 28  $ 1,046 Non-U.S. Commercial 157  3  —  160 Commercial Real Estate 1,608  122  342  2,072 Total $ 2,780  $ 128  $ 370  $ 3,278 For 2024 and 2023, the Corporation had commitments to lend $1.3 billion and $1.2 billion to commercial borrowers experiencing financial difficulty whose loans were modified during the period. Prior-period Troubled Debt Restructuring Disclosures Prior to adopting the new accounting standard on loan modifications, the Corporation accounted for modifications of loans to borrowers experiencing financial difficulty as TDRs, when the modification resulted in a concession. The following discussion reflects loans that were considered TDRs prior to January 1, 2023. Consumer Real Estate The following table presents the December 31, 2022 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of consumer real estate loans that were modified in TDRs during 2022. The following Consumer Real Estate portfolio segment tables include loans that were initially classified as TDRs during the period and also loans that had previously been classified as TDRs and were modified again during the period. Binding trial modifications are classified as TDRs when the trial offer is made and continue to be classified as TDRs regardless of whether the borrower enters into a permanent modification. At December 31, 2022, remaining commitments to lend additional funds to debtors whose terms have been modified in a consumer real estate TDR were not significant. Consumer Real Estate – TDRs Entered into During 2022 Unpaid Principal Balance Carrying Value Pre-Modification Interest Rate Post-Modification Interest Rate (1) (Dollars in millions) December 31, 2022 Residential mortgage $ 1,144  $ 1,015  3.52  % 3.40  % Home equity 238  191  4.61  4.65  Total $ 1,382  $ 1,206  3.71  3.62  (1) The post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period. The table below presents the December 31, 2022 carrying value for consumer real estate loans that were modified in a TDR during 2022, by type of modification. Consumer Real Estate – Modification Programs TDRs Entered into During (Dollars in millions) 2022 Modifications under government programs $ 2  Modifications under proprietary programs 1,100  Loans discharged in Chapter 7 bankruptcy (1) 14  Trial modifications 90  Total modifications $ 1,206  (1) Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. The table below presents the carrying value of consumer real estate loans that entered into payment default during 2022 that were modified in a TDR during the 12 months preceding payment default. A payment default for consumer real estate TDRs is recognized when a borrower has missed three monthly payments (not necessarily consecutively) since modification. Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months (Dollars in millions) 2022 Modifications under proprietary programs $ 189  Loans discharged in Chapter 7 bankruptcy (1) 2  Trial modifications (2) 25  Total modifications $ 216  (1)Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs. (2)Includes trial modification offers to which the customer did not respond. Credit Card and Other Consumer The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including December 31, 2022 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during 2022. Credit Card and Other Consumer – TDRs Entered into During 2022   Unpaid Principal Balance Carrying Value (1) Pre-Modification Interest Rate Post-Modification Interest Rate (Dollars in millions) December 31, 2022 Credit card $ 284  $ 293  22.34  % 3.89  % Direct/Indirect consumer 6  5  5.51  5.50  Total $ 290  $ 298  22.06  3.92  (1) Includes accrued interest and fees. The table below presents the December 31, 2022 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during 2022 by program type. Credit Card and Other Consumer – TDRs by Program Type (1) (Dollars in millions) 2022 Internal programs $ 251  External programs 44  Other 3  Total $ 298  (1) Includes accrued interest and fees. Credit card and other consumer loans are deemed to be in payment default during the quarter in which a borrower misses the second of two consecutive payments. Payment defaults are one of the factors considered when projecting future cash flows in the calculation of the allowance for loan and lease losses for credit card and other consumer. Commercial Loans During 2022, the carrying value of the Corporation’s commercial loans that were modified as TDRs was $1.9 billion. At December 31, 2022, the Corporation had commitments to lend $358 million to commercial borrowers whose loans were classified as TDRs. The balance of commercial TDRs in payment default was $105 million at December 31, 2022. Loans Held-for-sale The Corporation had LHFS of $9.5 billion and $6.0 billion at December 31, 2024 and 2023. Cash and non-cash proceeds from sales and paydowns of loans originally classified as LHFS were $32.3 billion, $16.3 billion and $32.0 billion for 2024, 2023 and 2022. Cash used for originations and purchases of LHFS totaled $36.2 billion, $15.6 billion and $24.9 billion for 2024, 2023 and 2022. Also included were non-cash net transfers into LHFS of $0, $632 million and $1.9 billion during 2024, 2023 and 2022. Accrued Interest Receivable Accrued interest receivable for loans and leases and loans held-for-sale was $4.3 billion and $4.5 billion at December 31, 2024 and 2023 and is reported in customer and other receivables on the Consolidated Balance Sheet. Outstanding credit card loan balances include unpaid principal, interest and fees. Credit card loans are not classified as nonperforming but are charged off no later than the end of the month in which the account becomes 180 days past due, within 60 days after receipt of notification of death or bankruptcy, or upon confirmation of fraud. During 2024, the Corporation reversed $856 million of interest and fee income against the income statement line item in which it was originally recorded upon charge-off of the principal balance of the loan compared to $584 million in 2023. For the outstanding residential mortgage, home equity, direct/indirect consumer and commercial loan balances classified as nonperforming during 2024 and 2023, interest and fee income reversed at the time the loans were classified as nonperforming was not significant. For more information on the Corporation's nonperforming loan policies, see Note 1 – Summary of Significant Accounting Principles. Allowance for Credit Losses The allowance for credit losses is estimated using quantitative and qualitative methods that consider a variety of factors, such as historical loss experience, the current credit quality of the portfolio and an economic outlook over the life of the loan. Qualitative reserves cover losses that are expected but, in the Corporation's assessment, may not adequately be reflected in the quantitative methods or the economic assumptions. The Corporation incorporates forward-looking information through the use of several macroeconomic scenarios in determining the weighted economic outlook over the forecasted life of the assets. These scenarios include key macroeconomic variables such as gross domestic product, unemployment rate, real estate prices and corporate bond spreads. The scenarios that are chosen each quarter and the weighting given to each scenario depend on a variety of factors including recent economic events, leading economic indicators, internal and third-party economist views, and industry trends. For more information on the Corporation's credit loss accounting policies including the allowance for credit losses, see Note 1 – Summary of Significant Accounting Principles. The December 31, 2024 estimate for allowance for credit losses was based on various economic scenarios, including a baseline scenario derived from consensus estimates, an adverse scenario reflecting an extended moderate recession, a downside scenario reflecting continued inflation and interest rates with minimal rate cuts, a tail risk scenario similar to the severely adverse scenario used in stress testing and an upside scenario that considers the potential for improvement above the baseline scenario. The overall weighted economic outlook of the above scenarios has improved compared to the weighted economic outlook estimated as of December 31, 2023. The weighted economic outlook assumes that the U.S. average unemployment rate will be just below five percent in the fourth quarter of 2025 and will remain near this level through the fourth quarter of 2026. The weighted economic outlook assumes steady growth with U.S. real gross domestic product forecasted to grow at 1.4 percent and 1.8 percent year-over-year in the fourth quarters of 2025 and 2026. The allowance for credit losses decreased $215 million from December 31, 2023 to $14.3 billion at December 31, 2024. The change in the allowance for credit losses was comprised of a net decrease of $102 million in the allowance for loan and lease losses and a decrease of $113 million in the reserve for unfunded lending commitments. The decline in the allowance for credit losses was attributed to decreases in the commercial portfolio of $240 million and the consumer real estate portfolio of $118 million, partially offset by an increase in the credit card and other consumer portfolios of $143 million. The provision for credit losses increased $1.4 billion to $5.8 billion in 2024 compared to $4.4 billion in 2023 and $2.5 billion in 2022. The increase in provision for credit losses in 2024 was primarily driven by credit card as well as small business loan growth, and asset quality deterioration in the commercial real estate office and credit card portfolios. The increase in provision for credit losses in 2023 was driven by the Corporation’s consumer portfolio primarily due to credit card loan growth and asset quality deterioration, partially offset by improved macroeconomic conditions that primarily benefited the Corporation’s commercial portfolio. Outstanding loans and leases excluding loans accounted for under the fair value option increased $41.4 billion in 2024 primarily driven by commercial, which increased $36.4 billion due to broad-based growth. The changes in the allowance for credit losses, including net charge-offs and provision for loan and lease losses, are detailed in the following table. Consumer Real Estate Credit Card and  Other Consumer Commercial Total (Dollars in millions) 2024 Allowance for loan and lease losses, January 1 $ 386  $ 8,134  $ 4,822  $ 13,342  Loans and leases charged off (42) (5,077) (1,935) (7,054) Recoveries of loans and leases previously charged off 83  798  142  1,023  Net charge-offs 41  (4,279) (1,793) (6,031) Provision for loan and lease losses (135) 4,421  1,649  5,935  Other 1  1  (8) (6) Allowance for loan and lease losses, December 31 293  8,277  4,670  13,240  Reserve for unfunded lending commitments, January 1 82  —  1,127  1,209  Provision for unfunded lending commitments (26) —  (88) (114) Other 1  —  —  1  Reserve for unfunded lending commitments, December 31 57  —  1,039  1,096  Allowance for credit losses, December 31 $ 350  $ 8,277  $ 5,709  $ 14,336  2023 Allowance for loan and lease losses, December 31 $ 420  $ 6,817  $ 5,445  $ 12,682  January 1, 2023 adoption of credit loss standard (67) (109) (67) (243) Allowance for loan and lease losses, January 1 353  6,708  5,378  12,439  Loans and leases charged off (103) (3,870) (844) (4,817) Recoveries of loans and leases previously charged off 146  737  135  1,018  Net charge-offs 43  (3,133) (709) (3,799) Provision for loan and lease losses (19) 4,558  186  4,725  Other 9  1  (33) (23) Allowance for loan and lease losses, December 31 386  8,134  4,822  13,342  Reserve for unfunded lending commitments, January 1 94  —  1,446  1,540  Provision for unfunded lending commitments (12) —  (319) (331) Reserve for unfunded lending commitments, December 31 82  —  1,127  1,209  Allowance for credit losses, December 31 $ 468  $ 8,134  $ 5,949  $ 14,551  2022 Allowance for loan and lease losses, January 1 $ 557  $ 6,476  $ 5,354  $ 12,387  Loans and leases charged off (206) (2,755) (478) (3,439) Recoveries of loans and leases previously charged off 224  882  161  1,267  Net charge-offs 18  (1,873) (317) (2,172) Provision for loan and lease losses (164) 2,215  409  2,460  Other 9  (1) (1) 7  Allowance for loan and lease losses, December 31 420  6,817  5,445  12,682  Reserve for unfunded lending commitments, January 1 96  —  1,360  1,456  Provision for unfunded lending commitments (3) —  86  83  Other 1  —  —  1  Reserve for unfunded lending commitments, December 31 94  —  1,446  1,540  Allowance for credit losses, December 31 $ 514  $ 6,817  $ 6,891  $ 14,222