Outstanding Loans and Leases and Allowance for Credit Losses

v3.26.1

Outstanding Loans and Leases and Allowance for Credit Losses	6 Months Ended
	Jun. 30, 2026
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 June 30, 2026 and December 31, 2025. 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) June 30, 2026 Consumer real estate Residential mortgage $ 1,442  $ 284  $ 822  $ 2,548  $ 233,768  $ 236,316  Home equity 78  31  105  214  26,900  27,114  Credit card and other consumer Credit card 655  456  1,241  2,352  103,307  105,659  Direct/Indirect consumer (2) 274  130  87  491  117,836  118,327  Other consumer —  —  —  —  182  182  Total consumer 2,449  901  2,255  5,605  481,993  487,598  Consumer loans accounted for under the fair value option (3) $ 159  159  Total consumer loans and leases 2,449  901  2,255  5,605  481,993  159  487,757  Commercial U.S. commercial 431  227  588  1,246  455,386  456,632  Non-U.S. commercial 49  27  153  229  159,665  159,894  Commercial real estate (4) 52  102  699  853  70,244  71,097  Commercial lease financing 43  22  62  127  15,275  15,402  U.S. small business commercial 212  73  188  473  23,164  23,637  Total commercial 787  451  1,690  2,928  723,734  726,662  Commercial loans accounted for under the fair value option (3) 3,200  3,200  Total commercial loans and leases 787  451  1,690  2,928  723,734  3,200  729,862  Total loans and leases (5) $ 3,236  $ 1,352  $ 3,945  $ 8,533  $ 1,205,727  $ 3,359  $ 1,217,619  Percentage of outstandings 0.27  % 0.11  % 0.32  % 0.70  % 99.02  % 0.28  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $148 million and nonperforming loans of $184 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $52 million and nonperforming loans of $105 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $219 million and nonperforming loans of $708 million. Consumer real estate loans current or less than 30 days past due includes $1.4 billion, and direct/indirect consumer includes $61 million of nonperforming loans. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $52.4 billion, U.S. securities-based lending loans of $61.9 billion and non-U.S. consumer loans of $3.2 billion. (3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $55 million and home equity loans of $104 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 $1.0 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option. (4)Total outstandings includes U.S. commercial real estate loans of $65.9 billion and non-U.S. commercial real estate loans of $5.2 billion. (5)Total outstandings includes loans and leases of $47.2 billion pledged as collateral to the Federal Home Loan Bank (FHLB). The Corporation also pledged $322.6 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank (FRB) and FHLB. 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, 2025 Consumer real estate Residential mortgage $ 1,335  $ 304  $ 774  $ 2,413  $ 233,889  $ 236,302  Home equity 87  33  120  240  26,583  26,823  Credit card and other consumer Credit card 711  542  1,351  2,604  103,423  106,027  Direct/Indirect consumer (2) 324  114  109  547  113,583  114,130  Other consumer  —  —  —  —  144  144  Total consumer 2,457  993  2,354  5,804  477,622  483,426  Consumer loans accounted for under the fair value option (3) $ 165  165  Total consumer loans and leases 2,457  993  2,354  5,804  477,622  165  483,591  Commercial U.S. commercial 743  228  702  1,673  434,569  436,242  Non-U.S. commercial 78  10  59  147  154,898  155,045  Commercial real estate (4) 190  41  909  1,140  67,608  68,748  Commercial lease financing 67  17  75  159  16,082  16,241  U.S. small business commercial 228  96  211  535  21,965  22,500  Total commercial 1,306  392  1,956  3,654  695,122  698,776  Commercial loans accounted for under the fair value option (3) 3,333  3,333  Total commercial loans and leases 1,306  392  1,956  3,654  695,122  3,333  702,109  Total loans and leases (5) $ 3,763  $ 1,385  $ 4,310  $ 9,458  $ 1,172,744  $ 3,498  $ 1,185,700  Percentage of outstandings 0.32  % 0.12  % 0.36  % 0.80  % 98.91  % 0.29  % 100.00  % (1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $179 million and nonperforming loans of $164 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $63 million and nonperforming loans of $105 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $207 million and nonperforming loans of $687 million. Consumer real estate loans current or less than 30 days past due includes $1.4 billion, and direct/indirect consumer includes $45 million of nonperforming loans. (2)Total outstandings primarily includes auto and specialty lending loans and leases of $55.3 billion, U.S. securities-based lending loans of $55.0 billion and non-U.S. consumer loans of $3.0 billion. (3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $58 million and home equity loans of $107 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $2.1 billion and non-U.S. commercial loans of $1.2 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option. (4)Total outstandings includes U.S. commercial real estate loans of $62.7 billion and non-U.S. commercial real estate loans of $6.0 billion. (5)Total outstandings includes loans and leases of $39.5 billion pledged as collateral to the FHLB. The Corporation also pledged $313.7 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the FRB and FHLB. The Corporation has entered into long-term credit protection agreements with FNMA and FHLMC on loans totaling $6.9 billion and $7.2 billion at June 30, 2026 and December 31, 2025, 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 $5.8 billion at both June 30, 2026 and December 31, 2025. Commercial nonperforming loans were $3.2 billion at both June 30, 2026 and December 31, 2025, primarily comprised of U.S. commercial and commercial real estate. Consumer nonperforming loans of $2.6 billion at both June 30, 2026 and December 31, 2025 were primarily comprised of residential mortgages. The following table presents the Corporation’s nonperforming loans and leases and loans accruing past due 90 days or more at June 30, 2026 and December 31, 2025. Nonperforming loans held-for-sale (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 to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K. Credit Quality Nonperforming Loans and Leases Accruing Past Due 90 Days or More (Dollars in millions) June 30 2026 December 31 2025 June 30 2026 December 31 2025 Residential mortgage (1) $ 2,049  $ 2,008  $ 219  $ 207  With no related allowance (2) 1,831  1,774  —  —  Home equity (1) 371  392  —  —  With no related allowance (2) 304  310  —  —  Credit Card             n/a             n/a 1,241  1,351  Direct/indirect consumer 170  176  1  5  Total consumer 2,590  2,576  1,461  1,563  U.S. commercial 1,674  1,404  127  302  Non-U.S. commercial 312  80  35  9  Commercial real estate 1,068  1,596  33  10  Commercial lease financing 62  97  25  33  U.S. small business commercial 45  51  181  204  Total commercial 3,161  3,228  401  558  Total nonperforming loans $ 5,751  $ 5,804  $ 1,862  $ 2,121  Percentage of outstanding loans and leases 0.47  % 0.49  % 0.15  % 0.18  % (1)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At June 30, 2026 and December 31, 2025 residential mortgage included $119 million and $104 million of loans on which interest had been curtailed by the Federal Housing Administration (FHA), and therefore were no longer accruing interest, although principal was still insured, and $100 million and $103 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 to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K. Within the Consumer Real Estate portfolio segment, the primary credit quality indicators are refreshed loan-to-value (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 combined loan-to-value (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 June 30, 2026. Residential Mortgage – Credit Quality Indicators By Vintage Term Loans by Origination Year (Dollars in millions) Total as of June 30,  2026 2026 2025 2024 2023 2022 Prior Residential Mortgage Refreshed LTV Less than or equal to 90 percent $ 224,140  $ 12,374  $ 19,225  $ 13,231  $ 12,368  $ 34,806  $ 132,136  Greater than 90 percent but less than or equal to 100 percent 2,230  208  674  561  314  345  128  Greater than 100 percent 1,294  227  462  289  115  112  89  Fully-insured loans 8,652  —  100  159  136  225  8,032  Total Residential Mortgage $ 236,316  $ 12,809  $ 20,461  $ 14,240  $ 12,933  $ 35,488  $ 140,385  Residential Mortgage Refreshed FICO score Less than 620 $ 3,055  $ 62  $ 144  $ 167  $ 166  $ 366  $ 2,150  Greater than or equal to 620 and less than 660 2,328  61  181  147  135  372  1,432  Greater than or equal to 660 and less than 740 24,755  1,116  2,314  1,598  1,451  3,908  14,368  Greater than or equal to 740 197,526  11,570  17,722  12,169  11,045  30,617  114,403  Fully-insured loans 8,652  —  100  159  136  225  8,032  Total Residential Mortgage $ 236,316  $ 12,809  $ 20,461  $ 14,240  $ 12,933  $ 35,488  $ 140,385  Gross charge-offs for the six months ended June 30, 2026 $ 18  $ —  $ 1  $ 5  $ 3  $ 3  $ 6  Home Equity - Credit Quality Indicators Total Home Equity Loans and Reverse Mortgages (1) Revolving Loans Revolving Loans Converted to Term Loans (Dollars in millions) June 30, 2026 Home Equity Refreshed LTV Less than or equal to 90 percent $ 26,955  $ 636  $ 23,237  $ 3,082  Greater than 90 percent but less than or equal to 100 percent 90  5  81  4  Greater than 100 percent 69  7  54  8  Total Home Equity $ 27,114  $ 648  $ 23,372  $ 3,094  Home Equity Refreshed FICO score Less than 620 $ 693  $ 63  $ 418  $ 212  Greater than or equal to 620 and less than 660 573  41  372  160  Greater than or equal to 660 and less than 740 4,980  153  4,046  781  Greater than or equal to 740 20,868  391  18,536  1,941  Total Home Equity $ 27,114  $ 648  $ 23,372  $ 3,094  Gross charge-offs for the six months ended June 30, 2026 $ 14  $ —  $ 10  $ 4  (1)Includes reverse mortgages of $430 million and home equity loans of $218 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 June 30, 2026 Revolving Loans 2026 2025 2024 2023 2022 Prior Total Credit Card as of June 30, 2026 Revolving Loans Revolving Loans Converted to Term Loans (1) Refreshed FICO score Less than 620 $ 1,467  $ 6  $ 92  $ 361  $ 350  $ 319  $ 232  $ 107  $ 5,912  $ 5,527  $ 385  Greater than or equal to 620 and less than 660 1,199  2  156  354  270  202  142  73  5,842  5,579  263  Greater than or equal to 660 and less than 740 8,682  28  1,749  2,980  1,747  1,070  705  403  40,841  40,302  539  Greater than or equal to 740 41,123  38  7,594  14,659  9,120  4,745  2,969  1,998  53,064  52,972  92  Other internal credit    metrics (2,3) 65,856  65,036  131  211  52  34  75  317  —  —  —  Total credit card and other    consumer $ 118,327  $ 65,110  $ 9,722  $ 18,565  $ 11,539  $ 6,370  $ 4,123  $ 2,898  $ 105,659  $ 104,380  $ 1,279  Gross charge-offs for the six months ended June 30, 2026 $ 193  $ 3  $ 2  $ 78  $ 36  $ 32  $ 22  $ 20  $ 2,294  $ 2,210  $ 84  (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 $65.0 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 June 30, 2026. Commercial – Credit Quality Indicators By Vintage (1) Term Loans Amortized Cost Basis by Origination Year (Dollars in millions) Total as of June 30, 2026 2026 2025 2024 2023 2022 Prior Revolving Loans U.S. Commercial Risk ratings Pass rated $ 445,710  $ 26,996  $ 50,745  $ 34,596  $ 20,239  $ 23,850  $ 49,445  $ 239,839  Reservable criticized 10,922  36  340  985  898  791  2,182  5,690  Total U.S. Commercial $ 456,632  $ 27,032  $ 51,085  $ 35,581  $ 21,137  $ 24,641  $ 51,627  $ 245,529  Gross charge-offs for the six months ended    June 30, 2026 $ 339  $ 2  $ 12  $ 12  $ 11  $ 26  $ 52  $ 224  Non-U.S. Commercial Risk ratings Pass rated $ 157,466  $ 13,574  $ 20,461  $ 17,100  $ 8,475  $ 7,269  $ 12,409  $ 78,178  Reservable criticized 2,428  1  192  111  410  159  151  1,404  Total Non-U.S. Commercial $ 159,894  $ 13,575  $ 20,653  $ 17,211  $ 8,885  $ 7,428  $ 12,560  $ 79,582  Gross charge-offs for the six months ended    June 30, 2026 $ 61  $ —  $ 14  $ —  $ 7  $ 16  $ 3  $ 21  Commercial Real Estate Risk ratings Pass rated $ 64,713  $ 6,739  $ 11,610  $ 5,344  $ 3,632  $ 6,954  $ 19,109  $ 11,325  Reservable criticized 6,384  14  105  151  180  1,413  3,901  620  Total Commercial Real Estate $ 71,097  $ 6,753  $ 11,715  $ 5,495  $ 3,812  $ 8,367  $ 23,010  $ 11,945  Gross charge-offs for the six months ended    June 30, 2026 $ 94  $ —  $ —  $ —  $ —  $ 2  $ 92  $ —  Commercial Lease Financing Risk ratings Pass rated $ 14,797  $ 1,538  $ 3,769  $ 2,894  $ 2,376  $ 1,575  $ 2,645  $ —  Reservable criticized 605  1  30  99  161  113  201  —  Total Commercial Lease Financing $ 15,402  $ 1,539  $ 3,799  $ 2,993  $ 2,537  $ 1,688  $ 2,846  $ —  Gross charge-offs for the six months ended    June 30, 2026 $ 15  $ —  $ 1  $ 2  $ 6  $ 4  $ 2  $ —  U.S. Small Business Commercial (2) Risk ratings Pass rated $ 11,460  $ 1,037  $ 2,411  $ 1,815  $ 1,571  $ 1,376  $ 2,414  $ 836  Reservable criticized 604  —  60  128  168  83  158  7  Total U.S. Small Business Commercial $ 12,064  $ 1,037  $ 2,471  $ 1,943  $ 1,739  $ 1,459  $ 2,572  $ 843  Gross charge-offs for the six months ended    June 30, 2026 $ 21  $ —  $ 1  $ —  $ 4  $ 4  $ 3  $ 9  Total $ 715,089  $ 49,936  $ 89,723  $ 63,223  $ 38,110  $ 43,583  $ 92,615  $ 337,899  Gross charge-offs for the six months ended    June 30, 2026 $ 530  $ 2  $ 28  $ 14  $ 28  $ 52  $ 152  $ 254  (1)Excludes $3.2 billion of loans accounted for under the fair value option at June 30, 2026. (2)Excludes U.S. Small Business Card loans of $11.6 billion. Refreshed FICO scores for this portfolio are $796 million for less than 620; $665 million for greater than or equal to 620 and less than 660; $3.7 billion for greater than or equal to 660 and less than 740; and $6.4 billion for greater than or equal to 740. Excludes U.S. Small Business Card loans gross charge-offs of $285 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, 2025. Residential Mortgage – Credit Quality Indicators By Vintage Term Loans by Origination Year (Dollars in millions) Total as of December 31,  2025 2025 2024 2023 2022 2021 Prior Residential Mortgage Refreshed LTV Less than or equal to 90 percent $ 223,761  $ 22,998  $ 14,267  $ 12,431  $ 37,042  $ 69,829  $ 67,194  Greater than 90 percent but less than or equal to 100 percent 2,318  737  644  375  405  94  63  Greater than 100 percent 1,147  453  341  126  137  50  40  Fully-insured loans 9,076  157  198  167  277  2,890  5,387  Total Residential Mortgage $ 236,302  $ 24,345  $ 15,450  $ 13,099  $ 37,861  $ 72,863  $ 72,684  Residential Mortgage Refreshed FICO score Less than 620 $ 3,076  $ 197  $ 242  $ 193  $ 533  $ 724  $ 1,187  Greater than or equal to 620 and less than 660 2,277  192  150  143  408  540  844  Greater than or equal to 660 and less than 740 25,065  2,488  1,854  1,507  4,253  6,668  8,295  Greater than or equal to 740 196,808  21,311  13,006  11,089  32,390  62,041  56,971  Fully-insured loans 9,076  157  198  167  277  2,890  5,387  Total Residential Mortgage $ 236,302  $ 24,345  $ 15,450  $ 13,099  $ 37,861  $ 72,863  $ 72,684  Gross charge-offs for the year ended December 31, 2025 $ 24  $ —  $ 4  $ 6  $ 6  $ 2  $ 6  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, 2025 Home Equity Refreshed LTV Less than or equal to 90 percent $ 26,686  $ 687  $ 22,909  $ 3,090  Greater than 90 percent but less than or equal to 100 percent 70  3  63  4  Greater than 100 percent 67  7  51  9  Total Home Equity $ 26,823  $ 697  $ 23,023  $ 3,103  Home Equity Refreshed FICO score Less than 620 $ 701  $ 67  $ 399  $ 235  Greater than or equal to 620 and less than 660 595  44  375  176  Greater than or equal to 660 and less than 740 5,036  173  4,057  806  Greater than or equal to 740 20,491  413  18,192  1,886  Total Home Equity $ 26,823  $ 697  $ 23,023  $ 3,103  Gross charge-offs for the year ended December 31, 2025 $ 16  $ —  $ 10  $ 6  (1)Includes reverse mortgages of $457 million and home equity loans of $240 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, 2025 Revolving Loans 2025 2024 2023 2022 2021 Prior Total Credit Card as of December 31, 2025 Revolving Loans Revolving Loans Converted to Term Loans (1) Refreshed FICO score Less than 620 $ 1,560  $ 8  $ 274  $ 386  $ 404  $ 306  $ 141  $ 41  $ 6,255  $ 5,872  $ 383  Greater than or equal to 620 and less than 660 1,251  4  352  327  266  186  85  31  5,883  5,640  243  Greater than or equal to 660 and less than 740 9,117  37  3,739  2,236  1,491  986  439  189  41,176  40,679  497  Greater than or equal to 740 43,475  49  18,136  11,534  6,744  4,107  1,865  1,040  52,713  52,632  81  Other internal credit   metrics (2, 3) 58,727  57,999  222  66  31  174  39  196  —  —  —  Total credit card and other   consumer $ 114,130  $ 58,097  $ 22,723  $ 14,549  $ 8,936  $ 5,759  $ 2,569  $ 1,497  $ 106,027  $ 104,823  $ 1,204  Gross charge-offs for the year    ended December 31, 2025 $ 373  $ 6  $ 44  $ 110  $ 92  $ 64  $ 26  $ 31  $ 4,498  $ 4,338  $ 160  (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 $58.0 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, 2025. Commercial – Credit Quality Indicators By Vintage (1) Term Loans Amortized Cost Basis by Origination Year (Dollars in millions) Total as of December 31, 2025 2025 2024 2023 2022 2021 Prior Revolving Loans U.S. Commercial Risk ratings Pass rated $ 424,708  $ 61,845  $ 39,127  $ 23,611  $ 26,931  $ 16,001  $ 36,627  $ 220,566  Reservable criticized 11,534  164  772  965  946  611  2,091  5,985  Total U.S. Commercial $ 436,242  $ 62,009  $ 39,899  $ 24,576  $ 27,877  $ 16,612  $ 38,718  $ 226,551  Gross charge-offs for the year ended   December 31, 2025 $ 536  $ 3  $ 13  $ 35  $ 101  $ 12  $ 34  $ 338  Non-U.S. Commercial Risk ratings Pass rated $ 152,364  $ 25,753  $ 21,446  $ 9,613  $ 8,612  $ 9,223  $ 6,066  $ 71,651  Reservable criticized 2,681  120  117  478  311  63  114  1,478  Total Non-U.S. Commercial $ 155,045  $ 25,873  $ 21,563  $ 10,091  $ 8,923  $ 9,286  $ 6,180  $ 73,129  Gross charge-offs for the year ended   December 31, 2025 $ 33  $ —  $ —  $ 7  $ —  $ 8  $ —  $ 18  Commercial Real Estate Risk ratings Pass rated $ 60,435  $ 11,693  $ 5,607  $ 4,418  $ 8,136  $ 6,175  $ 13,796  $ 10,610  Reservable criticized 8,313  5  249  366  2,294  1,986  2,874  539  Total Commercial Real Estate $ 68,748  $ 11,698  $ 5,856  $ 4,784  $ 10,430  $ 8,161  $ 16,670  $ 11,149  Gross charge-offs for the year ended   December 31, 2025 $ 520  $ —  $ —  $ —  $ 56  $ 102  $ 360  $ 2  Commercial Lease Financing Risk ratings Pass rated $ 15,770  $ 3,916  $ 3,142  $ 2,763  $ 1,847  $ 1,625  $ 2,477  $ —  Reservable criticized 471  13  91  131  119  36  81  —  Total Commercial Lease Financing $ 16,241  $ 3,929  $ 3,233  $ 2,894  $ 1,966  $ 1,661  $ 2,558  $ —  Gross charge-offs for the year ended   December 31, 2025 $ 8  $ —  $ 2  $ 3  $ 2  $ 1  $ —  $ —  U.S. Small Business Commercial (2) Risk ratings Pass rated $ 11,001  $ 2,368  $ 1,908  $ 1,657  $ 1,471  $ 1,131  $ 1,670  $ 796  Reservable criticized 559  14  100  174  95  76  92  8  Total U.S. Small Business Commercial $ 11,560  $ 2,382  $ 2,008  $ 1,831  $ 1,566  $ 1,207  $ 1,762  $ 804  Gross charge-offs for the year ended   December 31, 2025 $ 32  $ —  $ 1  $ 2  $ 3  $ 2  $ 6  $ 18   Total $ 687,836  $ 105,891  $ 72,559  $ 44,176  $ 50,762  $ 36,927  $ 65,888  $ 311,633  Gross charge-offs for the year ended   December 31, 2025 $ 1,129  $ 3  $ 16  $ 47  $ 162  $ 125  $ 400  $ 376  (1) Excludes $3.3 billion of loans accounted for under the fair value option at December 31, 2025. (2) Excludes U.S. Small Business Card loans of $10.9 billion. Refreshed FICO scores for this portfolio are $785 million for less than 620; $651 million for greater than or equal to 620 and less than 660; $3.6 billion for greater than or equal to 660 and less than 740; and $5.9 billion greater than or equal to 740. Excludes U.S. Small Business Card loans gross charge-offs of $555 million. During the six months ended June 30, 2026, commercial reservable criticized utilized exposure decreased to $22.1 billion at June 30, 2026 from $24.7 billion (to 2.89 percent from 3.37 percent of total commercial reservable utilized exposure) at December 31, 2025, primarily driven by commercial real estate. 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. 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 the three and six months ended June 30, 2026 and 2025. The table below provides the ending amortized cost of the Corporation’s consumer real estate loans modified during the three and six months ended June 30, 2026 and 2025. Consumer Real Estate - Modifications to Borrowers in Financial Difficulty Forbearance and Other Payment Plans (1) Permanent Modification Total As a % of Financing Receivables Forbearance and Other Payment Plans (1) Permanent Modification Total As a % of Financing Receivables (Dollars in millions) Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 Residential Loans $ 115  $ 57  $ 172  0.07  % $ 135  $ 94  $ 229  0.10  % Home Equity —  4  4  0.01  3  7  10  0.04  Total $ 115  $ 61  $ 176  0.07  $ 138  $ 101  $ 239  0.09  Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 Residential Loans $ 10  $ 58  $ 68  0.03  % $ 17  $ 98  $ 115  0.05  % Home Equity —  5  5  0.02  —  12  12  0.05  Total $ 10  $ 63  $ 73  0.03  $ 17  $ 110  $ 127  0.05  (1)Limited to those modifications that had an other-than-insignificant delay in payment, including extended residential mortgage relief provided to borrowers for their home rebuilding efforts following the 2025 California wildfires. The table below presents the financial effect of modified consumer real estate loans. Financial Effect of Modified Consumer Real Estate Loans Three Months Ended June 30 Six Months Ended June 30 2026 2025 2026 2025 Forbearance and Other Payment Plans Weighted-average duration Residential Mortgage 5 months 6 months 11 months 6 months Home Equity n/m n/m n/m n/m Permanent Modifications Weighted-average Term Extension Residential Mortgage 10.1 years 9.2 years 10.2 years 9.4 years Home Equity 5.4 years 14.7 years 6.0 years 16.6 years Weighted-average Interest Rate Reduction Residential Mortgage 1.45  % 1.06  % 1.52  % 1.19  % Home Equity 2.29  % 2.27  % 2.93  % 2.23  % n/m = not meaningful For consumer real estate borrowers in financial difficulty that received a forbearance, trial or permanent modification, commitments to lend additional funds were not significant at June 30, 2026 and 2025. The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. If a forbearance plan results in an other‑than‑insignificant payment delay, whether at inception or due to a subsequent extension, the loan’s payment status is based on the original contractual terms. During the three and six months ended June 30, 2026 and 2025, defaults of residential and home equity loans that had been modified within 12 months were insignificant. The table below provides aging information as of June 30, 2026 and 2025 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) June 30, 2026 Residential mortgage $ 152  $ 40  $ 125  $ 317  Home equity 14  2  3  19  Total $ 166  $ 42  $ 128  $ 336  June 30, 2025 Residential mortgage $ 109  $ 44  $ 37  $ 190  Home equity 23  2  1  26  Total $ 132  $ 46  $ 38  $ 216  Consumer real estate foreclosed properties totaled $62 million and $58 million at June 30, 2026 and December 31, 2025. The carrying value of consumer real estate loans, including fully-insured loans, for which formal foreclosure proceedings were in process at June 30, 2026 and December 31, 2025, was $388 million and $411 million. During the six months ended June 30, 2026 and 2025, the Corporation reclassified $21 million and $29 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 June 30, 2026. 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 June 30, 2026 amortized cost of credit card and other consumer loans that were modified through these programs during the three and six months ended June 30, 2026 was $244 million and $447 million compared to $218 million and $405 million for same periods in 2025. These modifications represented 0.11 percent and 0.20 percent of outstanding credit card and other consumer loans for the three and six months ended June 30, 2026 compared to 0.10 percent and 0.19 percent for the same periods in 2025. During the three and six months ended June 30, 2026 and 2025, the financial effect of modifications resulted in a weighted-average interest rate reduction of 18 percentage points for all periods. During the three and six months ended June 30, 2026 the financial effect of modifications resulted in principal forgiveness of $29 million and $54 million compared to $26 million and $51 million for the same periods in 2025. The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. As of June 30, 2026 and 2025, defaults of credit card and other consumer loans that had been modified within 12 months were not significant. At June 30, 2026, modified credit card and other consumer loans to borrowers experiencing financial difficulty over the last 12 months totaled $727 million, of which $622 million were current, $57 million were 30-89 days past due, and $48 million were greater than 90 days past due. At June 30, 2025, modified credit card and other consumer loans to borrowers experiencing financial difficulty totaled $645 million, of which $547 million were current, $53 million were 30-89 days past due, and $45 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 the three and six months ended June 30, 2026 and 2025. Commercial Loans - Modifications to Borrowers in Financial Difficulty Term Extension Forbearances Interest Rate Reduction Total As a % of Financing Receivables Term Extension Forbearances Interest Rate Reduction Total As a % of Financing Receivables (Dollars in millions) Three Months Ended June 30, 2026 Six Months Ended June 30, 2026 U.S. commercial $ 586 $ 399 $ — $ 985 0.22  % $ 1,133 $ 412 $ — $ 1,545 0.34  % Non-U.S. commercial 71 10 — 81 0.05  78 10 — 88 0.06  Commercial real estate 307 — — 307 0.43  363 288 — 651 0.92  Total $ 964 $ 409 $ — $ 1,373 0.20  $ 1,574 $ 710 $ — $ 2,284 0.33  Three Months Ended June 30, 2025 Six Months Ended June 30, 2025 U.S. commercial $ 397 $ 104 $ — $ 501 0.12  % $ 610 $ 134 $ — $ 744 0.18  % Non-U.S. commercial — — — — —  33 9 — 42 0.03  Commercial real estate 769 439 — 1,208 1.84  1,403 551 — 1,954 2.98  Total $ 1,166 $ 543 $ — $ 1,709 0.27  $ 2,046 $ 694 $ — $ 2,740 0.44  Term extensions granted increased the weighted-average life of the impacted loans by 1.6 years and 1.8 years for the three and six months ended June 30, 2026 compared to 10 months and 1.3 years for the same periods in 2025. The weighted-average duration of loan payments deferred under the Corporation’s commercial loan forbearance program was 11 months and 1.0 year for the three and six months ended June 30, 2026 compared to 1.2 years and 1.3 years for the same periods in 2025. The deferral period for loan payments can vary, but are mostly in the range of 8 months to 2.0 years. Modifications of loans to troubled borrowers for Commercial Lease Financing and U.S. Small Business Commercial were not significant during the three and six months ended June 30, 2026 and 2025. The Corporation tracks the performance of modified loans to assess effectiveness of modification programs. As of June 30, 2026, defaults of commercial loans that had been modified within 12 months were $154 million. As of June 30, 2025, defaults of commercial loans that had been modified within the last 12 months were $234 million. The table below provides aging information as of June 30, 2026 and 2025 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) June 30, 2026 U.S. Commercial $ 2,156  $ 3  $ 134  $ 2,293 Non-U.S. Commercial 105  —  —  105 Commercial Real Estate 658  7  292  957 Total $ 2,919  $ 10  $ 426  $ 3,355 June 30, 2025 U.S. Commercial $ 1,249  $ 7  $ 43  $ 1,299 Non-U.S. Commercial 69  —  —  69 Commercial Real Estate 2,756  5  645  3,406 Total $ 4,074  $ 12  $ 688  $ 4,774 For the six months ended June 30, 2026 and 2025, the Corporation had commitments to lend $960 million and $434 million to commercial borrowers experiencing financial difficulty whose loans were modified during the period. Loans Held-for-sale The Corporation had LHFS of $6.5 billion and $5.2 billion at June 30, 2026 and December 31, 2025. Cash and non-cash proceeds from sales and paydowns of loans originally classified as LHFS were $20.1 billion and $20.4 billion for the six months ended June 30, 2026 and 2025. Cash used for originations and purchases of LHFS totaled $21.6 billion and $15.4 billion for the six months ended June 30, 2026 and 2025. For the six months ended June 30, 2026 and 2025, non-cash net transfers into LHFS were not significant. Accrued Interest Receivable Accrued interest receivable for loans and leases and LHFS was $4.2 billion at both June 30, 2026 and December 31, 2025 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 the three and six months ended June 30, 2026, the Corporation reversed $216 million and $438 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 $218 million and $449 million for the same periods in 2025. For the outstanding residential mortgage, home equity, direct/indirect consumer and commercial loan balances classified as nonperforming during the three and six months ended June 30, 2026 and 2025, 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 to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K 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 economic outlook is a significant factor and 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 to the Consolidated Financial Statements of the Corporation’s 2025 Annual Report on Form 10-K. The June 30, 2026 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, 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. When compared to the consensus baseline scenario noted above, the Corporation’s weighted economic outlook remains weighted to the downside and moderately weaker than the consensus baseline as of June 30, 2026, consistent with the Corporation’s weighted economic outlook estimated as of December 31, 2025. The weighted economic outlook assumes that the U.S. average unemployment rate will be approximately five percent in the fourth quarter of 2026 and will remain near this level through the fourth quarter of 2027. It also assumes U.S. real gross domestic product will grow at 1.4 percent and 1.8 percent year-over-year in the fourth quarters of 2026 and 2027. The allowance for credit losses decreased $116 million from December 31, 2025 to $14.3 billion at June 30, 2026. The decrease in the allowance for credit losses was driven by continued improvement in credit card and commercial real estate, partially offset by loan growth and a qualitative reserve build related to uncertainties associated with the ongoing conflicts in the Middle East. The change in the allowance for credit losses was comprised of a net decrease of $89 million in the allowance for loan and lease losses and a decrease of $27 million in the reserve for unfunded lending commitments. The decrease in the allowance for credit losses was attributed to a decrease in the credit card and other consumer portfolios of $159 million, partially offset by an increase in the commercial portfolio of $10 million and the consumer real estate portfolio of $33 million. The provision for credit losses decreased $226 million to $1.4 billion, and $369 million to $2.7 billion for the three and six months ended June 30, 2026 compared to the same periods in 2025. The decrease for the three-month period was attributed to a decrease in consumer of $75 million due to improved asset quality in credit card and a decrease in commercial of $151 million due to improved asset quality in commercial real estate. The decrease for the six-month period was attributed to a decrease in consumer of $211 million and a decrease in commercial of $158 million. The decrease in consumer was primarily driven by improved asset quality within the credit card portfolio. The decrease in commercial was primarily due to improved asset quality in the commercial real estate portfolio, partially offset by loan growth in the commercial and industrial portfolio and a qualitative reserve build related to uncertainties associated with the ongoing conflicts in the Middle East. Net charge-offs for the three and six months ended June 30, 2026 were $1.4 billion and $2.8 billion compared to $1.5 billion and $3.0 billion for the same periods in 2025. The decreases of $113 million and $156 million for the three and six months ended June 30, 2026 as compared to the prior-year periods were driven by asset quality improvement in commercial real estate and credit card. 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) Three Months Ended June 30, 2026 Allowance for loan and lease losses, April 1 $ 417  $ 7,854  $ 4,877  $ 13,148  Loans and leases charged off (16) (1,314) (410) (1,740) Recoveries of loans and leases previously charged off 21  269  38  328  Net charge-offs 5  (1,045) (372) (1,412) Provision for loan and lease losses 19  996  362  1,377  Other —  —  1  1  Allowance for loan and lease losses, June 30 441  7,805  4,868  13,114  Reserve for unfunded lending commitments, April 1 75  —  1,086  1,161  Provision for unfunded lending commitments (5) —  (6) (11) Reserve for unfunded lending commitments, June 30 70  —  1,080  1,150  Allowance for credit losses, June 30 $ 511  $ 7,805  $ 5,948  $ 14,264  Three Months Ended June 30, 2025 Allowance for loan and lease losses, April 1 $ 340  $ 8,212  $ 4,704  $ 13,256  Loans and leases charged off (14) (1,299) (511) (1,824) Recoveries of loans and leases previously charged off 22  232  45  299  Net charge-offs 8  (1,067) (466) (1,525) Provision for loan and lease losses (3) 1,087  476  1,560  Other 1  —  (1) —  Allowance for loan and lease losses, June 30 346  8,232  4,713  13,291  Reserve for unfunded lending commitments, April 1 57  —  1,053  1,110  Provision for unfunded lending commitments 1  —  31  32  Other —  —  1  1  Reserve for unfunded lending commitments, June 30 58  —  1,085  1,143  Allowance for credit losses, June 30 $ 404  $ 8,232  $ 5,798  $ 14,434  (Dollars in millions) Six Months Ended June 30, 2026 Allowance for loan and lease losses, January 1 $ 416  $ 7,964  $ 4,823  $ 13,203  Loans and leases charged off (32) (2,630) (815) (3,477) Recoveries of loans and leases previously charged off 39  524  93  656  Net charge-offs 7  (2,106) (722) (2,821) Provision for loan and lease losses 19  1,946  765  2,730  Other (1) 1  2  2  Allowance for loan and lease losses, June 30 441  7,805  4,868  13,114  Reserve for unfunded lending commitments, January 1 62  —  1,115  1,177  Provision for unfunded lending commitments 8  —  (35) (27) Reserve for unfunded lending commitments, June 30 70  —  1,080  1,150  Allowance for credit losses, June 30 $ 511  $ 7,805  $ 5,948  $ 14,264  Six Months Ended June 30, 2025 Allowance for loan and lease losses, January 1 $ 293  $ 8,277  $ 4,670  $ 13,240  Loans and leases charged off (20) (2,648) (889) (3,557) Recoveries of loans and leases previously charged off 40  450  90  580  Net charge-offs 20  (2,198) (799) (2,977) Provision for loan and lease losses 29  2,154  843  3,026  Other 4  (1) (1) 2  Allowance for loan and lease losses, June 30 346  8,232  4,713  13,291  Reserve for unfunded lending commitments, January 1 57  —  1,039  1,096  Provision for unfunded lending commitments 1  —  45  46  Other —  —  1  1  Reserve for unfunded lending commitments, June 30 58  —  1,085  1,143  Allowance for credit losses, June 30 $ 404  $ 8,232  $ 5,798  $ 14,434