M&T BANK CORP
For the period ended Jun 30, 2026. Filed Aug 4, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 4, 2026
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4. Loans and allowance for loan losses
- Loans and allowance for loan losses
A summary of current, past due and nonaccrual loans as of June 30, 2026 and December 31, 2025 follows.
| (Dollars in millions) | Current | 30-89 Days Past Due | Accruing Loans Past Due 90 Days or More | Nonaccrual | Total (a) (b) |
|---|---|---|---|---|---|
| Commercial and industrial | $65,198 | $371 | $4 | $570 | $66,143 |
| Real estate: | |||||
| Commercial (c) | 20,848 | 168 | 2 | 216 | 21,234 |
| Residential builder and developer | 101 | 9 | — | — | 110 |
| Other commercial construction | 3,082 | 30 | — | 36 | 3,148 |
| Residential (d) (e) | 23,891 | 644 | 587 | 262 | 25,384 |
| Consumer: | |||||
| Home equity lines and loans (e) | 4,781 | 33 | — | 77 | 4,891 |
| Recreational finance | 14,712 | 111 | — | 33 | 14,856 |
| Automobile | 4,899 | 60 | — | 10 | 4,969 |
| Other | 2,420 | 24 | 10 | 4 | 2,458 |
| Total | $139,932 | $1,450 | $603 | $1,208 | $143,193 |
| December 31, 2025 | |||||
| Commercial and industrial | $62,626 | $390 | $5 | $527 | $63,548 |
| Real estate: | |||||
| Commercial (c) | 19,505 | 364 | 3 | 320 | 20,192 |
| Residential builder and developer | 69 | — | — | — | 69 |
| Other commercial construction | 3,436 | 109 | — | 13 | 3,558 |
| Residential (d) (e) | 23,410 | 657 | 543 | 264 | 24,874 |
| Consumer: | |||||
| Home equity lines and loans (e) | 4,690 | 35 | — | 82 | 4,807 |
| Recreational finance | 13,946 | 116 | — | 30 | 14,092 |
| Automobile | 5,097 | 59 | — | 11 | 5,167 |
| Other | 2,357 | 23 | 10 | 5 | 2,395 |
| Total | $135,136 | $1,753 | $561 | $1,252 | $138,702 |
(a)Balances include net discounts, comprised of unamortized premiums, discounts and net deferred loan fees and costs of $260 million and $276 million at June 30, 2026 and December 31, 2025, respectively.
(b)Balances exclude accrued interest receivable of $625 million and $627 million at June 30, 2026 and December 31, 2025, respectively, which is included in Accrued interest and other assets in the Consolidated Balance Sheet.
(c)Commercial real estate loans held for sale were $259 million at June 30, 2026 and $484 million at December 31, 2025.
(d)Residential real estate loans held for sale were $256 million at June 30, 2026 and $441 million at December 31, 2025.
(e)There were $186 million and $182 million at June 30, 2026 and December 31, 2025, respectively, of loans secured by residential real estate that were in the process of foreclosure. At June 30, 2026, approximately 59% of those residential real estate loans in the process of foreclosure were government guaranteed.
As further described in notes 5 and 12, loans totaling $3.1 billion and $2.1 billion at June 30, 2026 and December 31, 2025, respectively, were held in special purpose trusts to settle the obligations of certain asset-backed notes issued by those trusts which have been included in the Company's consolidated financial statements. The Company has also pledged loans to secure outstanding borrowings and available lines of credit from the FHLB and the FRB of New York at June 30, 2026 and December 31, 2025 as summarized in the following table.
| (Dollars in billions) | June 30, 2026 | December 31, 2025 |
|---|---|---|
| Commercial and industrial | $23.6 | $20.7 |
| Commercial real estate | 13.3 | 13.4 |
| Residential real estate | 19.6 | 19.5 |
| Consumer | 17.4 | 18.2 |
- 15 -
Credit quality indicators
The Company utilizes a loan grading system to differentiate risk amongst its commercial and industrial loans and commercial real estate loans. The following table summarizes the loan grades applied at June 30, 2026 to the various classes of the Company’s commercial and industrial loans and commercial real estate loans and gross charge-offs for those types of loans for the six-month period ended June 30, 2026 by origination year.
| Term Loans by Origination Year · RevolvingLoans · Revolving Loans Converted to TermLoans · Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) · 2026 · 2025 · 2024 · 2023 · 2022 · Prior | |||||||||
| Commercial and industrial: | |||||||||
| Pass | $6,787 | $8,417 | $5,539 | $3,315 | $3,285 | $6,176 | $29,143 | $93 | $62,755 |
| Criticized accrual | 49 | 222 | 370 | 405 | 266 | 349 | 1,125 | 32 | 2,818 |
| Criticized nonaccrual | 3 | 33 | 69 | 64 | 75 | 159 | 147 | 20 | 570 |
| Total commercial and industrial | $6,839 | $8,672 | $5,978 | $3,784 | $3,626 | $6,684 | $30,415 | $145 | $66,143 |
| Gross charge-offs six months ended June 30, 2026 | $— | $10 | $18 | $9 | $8 | $8 | $32 | $— | $85 |
| Real estate: | |||||||||
| Commercial: | |||||||||
| Pass | $2,888 | $3,290 | $413 | $1,655 | $1,782 | $9,032 | $388 | $— | $19,448 |
| Criticized accrual | — | 12 | 9 | 155 | 131 | 1,263 | — | — | 1,570 |
| Criticized nonaccrual | — | — | — | 23 | 23 | 170 | — | — | 216 |
| Total commercial real estate | $2,888 | $3,302 | $422 | $1,833 | $1,936 | $10,465 | $388 | $— | $21,234 |
| Gross charge-offs six months ended June 30, 2026 | $— | $— | $— | $9 | $2 | $21 | $— | $— | $32 |
| Residential builder and developer: | |||||||||
| Pass | $47 | $18 | $2 | $— | $— | $4 | $28 | $— | $99 |
| Criticized accrual | — | — | — | — | 11 | — | — | — | 11 |
| Criticized nonaccrual | — | — | — | — | — | — | — | — | — |
| Total residential builder and developer | $47 | $18 | $2 | $— | $11 | $4 | $28 | $— | $110 |
| Gross charge-offs six months ended June 30, 2026 | $— | $— | $— | $— | $— | $— | $— | $— | $— |
| Other commercial construction: | |||||||||
| Pass | $215 | $548 | $240 | $922 | $316 | $166 | $74 | $— | $2,481 |
| Criticized accrual | — | — | 10 | 112 | 349 | 159 | 1 | — | 631 |
| Criticized nonaccrual | — | — | — | — | 7 | 29 | — | — | 36 |
| Total other commercial construction | $215 | $548 | $250 | $1,034 | $672 | $354 | $75 | $— | $3,148 |
| Gross charge-offs six months ended June 30, 2026 | $— | $— | $— | $— | $— | $1 | $— | $— | $1 |
- 16 -
The Company considers repayment performance a significant indicator of credit quality for its residential real estate loan and consumer loan portfolios. A summary of loans in accrual and nonaccrual status at June 30, 2026 for the various classes of the Company’s residential real estate loans and consumer loans and gross charge-offs for those types of loans for the six-month period ended June 30, 2026 by origination year follows.
| Term Loans by Origination Year · RevolvingLoans · Revolving Loans Converted to TermLoans · Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) · 2026 · 2025 · 2024 · 2023 · 2022 · Prior | |||||||||
| Residential real estate: | |||||||||
| Current | $2,081 | $3,074 | $1,636 | $1,023 | $3,947 | $11,995 | $135 | $— | $23,891 |
| 30-89 days past due | 6 | 13 | 8 | 89 | 108 | 420 | — | — | 644 |
| Accruing loans past due 90 days or more | — | 6 | 8 | 25 | 139 | 409 | — | — | 587 |
| Nonaccrual | — | 2 | 4 | 8 | 47 | 201 | — | — | 262 |
| Total residential real estate | $2,087 | $3,095 | $1,656 | $1,145 | $4,241 | $13,025 | $135 | $— | $25,384 |
| Gross charge-offs six months ended June 30, 2026 | $— | $— | $— | $— | $— | $3 | $— | $— | $3 |
| Consumer: | |||||||||
| Home equity lines and loans: | |||||||||
| Current | $— | $— | $— | $— | $— | $68 | $3,444 | $1,269 | $4,781 |
| 30-89 days past due | — | — | — | — | — | 2 | — | 31 | 33 |
| Accruing loans past due 90 days or more | — | — | — | — | — | — | — | — | — |
| Nonaccrual | — | — | — | — | — | 2 | 1 | 74 | 77 |
| Total home equity lines and loans | $— | $— | $— | $— | $— | $72 | $3,445 | $1,374 | $4,891 |
| Gross charge-offs six months ended June 30, 2026 | $— | $— | $— | $— | $— | $— | $— | $3 | $3 |
| Recreational finance: | |||||||||
| Current | $2,349 | $3,580 | $2,702 | $1,527 | $1,516 | $3,038 | $— | $— | $14,712 |
| 30-89 days past due | 4 | 11 | 20 | 18 | 18 | 40 | — | — | 111 |
| Accruing loans past due 90 days or more | — | — | — | — | — | — | — | — | — |
| Nonaccrual | — | 4 | 6 | 9 | 4 | 10 | — | — | 33 |
| Total recreational finance | $2,353 | $3,595 | $2,728 | $1,554 | $1,538 | $3,088 | $— | $— | $14,856 |
| Gross charge-offs six months ended June 30, 2026 | $1 | $10 | $18 | $16 | $13 | $29 | $— | $— | $87 |
| Automobile: | |||||||||
| Current | $864 | $1,643 | $1,360 | $431 | $344 | $257 | $— | $— | $4,899 |
| 30-89 days past due | 2 | 10 | 19 | 12 | 9 | 8 | — | — | 60 |
| Accruing loans past due 90 days or more | — | — | — | — | — | — | — | — | — |
| Nonaccrual | — | 3 | 3 | 1 | 1 | 2 | — | — | 10 |
| Total automobile | $866 | $1,656 | $1,382 | $444 | $354 | $267 | $— | $— | $4,969 |
| Gross charge-offs six months ended June 30, 2026 | $— | $6 | $9 | $5 | $3 | $2 | $— | $— | $25 |
| Other: | |||||||||
| Current | $182 | $237 | $117 | $65 | $41 | $39 | $1,738 | $1 | $2,420 |
| 30-89 days past due | 2 | 2 | 2 | 1 | 1 | — | 15 | 1 | 24 |
| Accruing loans past due 90 days or more | — | — | — | — | — | — | 10 | — | 10 |
| Nonaccrual | 2 | 1 | 1 | — | — | — | — | — | 4 |
| Total other | $186 | $240 | $120 | $66 | $42 | $39 | $1,763 | $2 | $2,458 |
| Gross charge-offs six months ended June 30, 2026 | $4 | $9 | $5 | $2 | $— | $— | $35 | $— | $55 |
| Total loans at June 30, 2026 | $15,481 | $21,126 | $12,538 | $9,860 | $12,420 | $33,998 | $36,249 | $1,521 | $143,193 |
| Total gross charge-offs for the six months ended June 30, 2026 | $5 | $35 | $50 | $41 | $26 | $64 | $67 | $3 | $291 |
- 17 -
The following table summarizes the loan grades applied at December 31, 2025 to the various classes of the Company’s commercial and industrial loans and commercial real estate loans by origination year.
| Term Loans by Origination Year · RevolvingLoans · Revolving Loans Converted to TermLoans | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) · 2025 · 2024 · 2023 · 2022 · 2021 · Prior · Total | |||||||||
| Commercial and industrial: | |||||||||
| Pass | $9,462 | $6,640 | $4,075 | $4,086 | $2,203 | $5,059 | $28,124 | $95 | $59,744 |
| Criticized accrual | 216 | 337 | 479 | 390 | 116 | 348 | 1,355 | 36 | 3,277 |
| Criticized nonaccrual | 8 | 49 | 72 | 65 | 25 | 155 | 136 | 17 | 527 |
| Total commercial and industrial | $9,686 | $7,026 | $4,626 | $4,541 | $2,344 | $5,562 | $29,615 | $148 | $63,548 |
| Real estate: | |||||||||
| Commercial: | |||||||||
| Pass | $3,757 | $400 | $1,535 | $1,681 | $1,121 | $8,970 | $367 | $— | $17,831 |
| Criticized accrual | — | 29 | 283 | 244 | 80 | 1,404 | 1 | — | 2,041 |
| Criticized nonaccrual | 24 | — | 4 | 25 | 49 | 218 | — | — | 320 |
| Total commercial real estate | $3,781 | $429 | $1,822 | $1,950 | $1,250 | $10,592 | $368 | $— | $20,192 |
| Residential builder and developer: | |||||||||
| Pass | $9 | $1 | $2 | $2 | $— | $5 | $38 | $— | $57 |
| Criticized accrual | — | — | — | 12 | — | — | — | — | 12 |
| Criticized nonaccrual | — | — | — | — | — | — | — | — | — |
| Total residential builder and developer | $9 | $1 | $2 | $14 | $— | $5 | $38 | $— | $69 |
| Other commercial construction: | |||||||||
| Pass | $313 | $221 | $1,031 | $606 | $63 | $198 | $45 | $— | $2,477 |
| Criticized accrual | — | 8 | 251 | 493 | 136 | 174 | 6 | — | 1,068 |
| Criticized nonaccrual | — | — | — | 8 | 1 | 4 | — | — | 13 |
| Total other commercial construction | $313 | $229 | $1,282 | $1,107 | $200 | $376 | $51 | $— | $3,558 |
- 18 -
A summary of loans in accrual and nonaccrual status at December 31, 2025 for the various classes of the Company’s residential real estate loans and consumer loans by origination year follows.
| Term Loans by Origination Year · RevolvingLoans · Revolving Loans Converted to TermLoans · Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in millions) · 2025 · 2024 · 2023 · 2022 · 2021 · Prior | |||||||||
| Residential real estate: | |||||||||
| Current | $3,769 | $1,797 | $1,188 | $4,040 | $3,433 | $9,056 | $127 | $— | $23,410 |
| 30-89 days past due | 10 | 11 | 19 | 117 | 93 | 407 | — | — | 657 |
| Accruing loans past due 90 days or more | 1 | 8 | 21 | 126 | 90 | 297 | — | — | 543 |
| Nonaccrual | — | 4 | 3 | 40 | 19 | 197 | 1 | — | 264 |
| Total residential real estate | $3,780 | $1,820 | $1,231 | $4,323 | $3,635 | $9,957 | $128 | $— | $24,874 |
| Consumer: | |||||||||
| Home equity lines and loans: | |||||||||
| Current | $— | $— | $— | $— | $1 | $76 | $3,362 | $1,251 | $4,690 |
| 30-89 days past due | — | — | — | — | — | 2 | — | 33 | 35 |
| Accruing loans past due 90 days or more | — | — | — | — | — | — | — | — | — |
| Nonaccrual | — | — | — | — | — | 2 | 1 | 79 | 82 |
| Total home equity lines and loans | $— | $— | $— | $— | $1 | $80 | $3,363 | $1,363 | $4,807 |
| Recreational finance: | |||||||||
| Current | $4,081 | $3,052 | $1,729 | $1,673 | $1,345 | $2,066 | $— | $— | $13,946 |
| 30-89 days past due | 10 | 20 | 25 | 17 | 15 | 29 | — | — | 116 |
| Accruing loans past due 90 days or more | — | — | — | — | — | — | — | — | — |
| Nonaccrual | 2 | 5 | 6 | 4 | 4 | 9 | — | — | 30 |
| Total recreational finance | $4,093 | $3,077 | $1,760 | $1,694 | $1,364 | $2,104 | $— | $— | $14,092 |
| Automobile: | |||||||||
| Current | $1,933 | $1,690 | $561 | $473 | $336 | $104 | $— | $— | $5,097 |
| 30-89 days past due | 8 | 17 | 13 | 10 | 7 | 4 | — | — | 59 |
| Accruing loans past due 90 days or more | — | — | — | — | — | — | — | — | — |
| Nonaccrual | 2 | 3 | 1 | 2 | 2 | 1 | — | — | 11 |
| Total automobile | $1,943 | $1,710 | $575 | $485 | $345 | $109 | $— | $— | $5,167 |
| Other: | |||||||||
| Current | $312 | $155 | $89 | $56 | $42 | $22 | $1,680 | $1 | $2,357 |
| 30-89 days past due | 3 | 2 | 1 | 1 | — | — | 15 | 1 | 23 |
| Accruing loans past due 90 days or more | — | — | — | — | — | — | 10 | — | 10 |
| Nonaccrual | 2 | 1 | 1 | — | — | 1 | — | — | 5 |
| Total other | $317 | $158 | $91 | $57 | $42 | $23 | $1,705 | $2 | $2,395 |
| Total loans at December 31, 2025 | $23,922 | $14,450 | $11,389 | $14,171 | $9,181 | $28,808 | $35,268 | $1,513 | $138,702 |
- 19 -
Allowance for loan losses
For purposes of determining the level of the allowance for loan losses, the Company evaluates its portfolios by loan type. Changes in the allowance for loan losses and the reserve for unfunded credit commitments for the three-month and six-month periods ended June 30, 2026 and 2025 were as follows.
| Allowance for Loan Losses · Reserve for Unfunded Credit Commitments (a) | ||||||
|---|---|---|---|---|---|---|
| Commercial and Industrial · Real Estate | ||||||
| (Dollars in millions) · Commercial · Residential · Consumer · Total | ||||||
| Beginning balance | $817 | $421 | $99 | $799 | $2,136 | $95 |
| Provision for credit losses | 35 | (7) | 1 | 91 | 120 | — |
| Net charge-offs: | ||||||
| Charge-offs | (39) | (15) | (2) | (82) | (138) | — |
| Recoveries | 19 | 9 | 2 | 28 | 58 | — |
| Net charge-offs | (20) | (6) | — | (54) | (80) | — |
| Ending balance | $832 | $408 | $100 | $836 | $2,176 | $95 |
| Beginning balance | $762 | $610 | $105 | $723 | $2,200 | $60 |
| Provision for credit losses | 69 | (43) | 5 | 74 | 105 | 20 |
| Net charge-offs: | ||||||
| Charge-offs | (57) | (25) | (1) | (73) | (156) | — |
| Recoveries | 19 | 2 | 1 | 26 | 48 | — |
| Net charge-offs | (38) | (23) | — | (47) | (108) | — |
| Ending balance | $793 | $544 | $110 | $750 | $2,197 | $80 |
| Beginning balance | $771 | $472 | $100 | $773 | $2,116 | $80 |
| Provision for credit losses | 106 | (41) | (1) | 181 | 245 | 15 |
| Net charge-offs: | ||||||
| Charge-offs | (85) | (33) | (3) | (170) | (291) | — |
| Recoveries | 40 | 10 | 4 | 52 | 106 | — |
| Net charge-offs | (45) | (23) | 1 | (118) | (185) | — |
| Ending balance | $832 | $408 | $100 | $836 | $2,176 | $95 |
| Beginning balance | $769 | $599 | $108 | $708 | $2,184 | $60 |
| Provision for credit losses | 91 | (13) | 2 | 155 | 235 | 20 |
| Net charge-offs: | ||||||
| Charge-offs | (107) | (47) | (3) | (159) | (316) | — |
| Recoveries | 40 | 5 | 3 | 46 | 94 | — |
| Net charge-offs | (67) | (42) | — | (113) | (222) | — |
| Ending balance | $793 | $544 | $110 | $750 | $2,197 | $80 |
(a)Further information about unfunded credit commitments is included in note 14.
- 20 -
Despite the allocation in the preceding tables, the allowance for loan losses is general in nature and is available to absorb losses from any loan or lease type. In determining the allowance for loan losses, accruing loans with similar risk characteristics are evaluated collectively, generally through the use of statistically developed credit models or other quantitative methodologies. The statistically developed models project principal balances over the remaining contractual lives of the loan portfolios and determine estimated credit losses through a reasonable and supportable forecast period. Individual loan credit quality indicators, including loan grade and borrower repayment performance, can inform the models, which have been statistically developed based on historical correlations of credit losses with prevailing economic metrics, including unemployment, GDP and real estate prices. Model forecasts may be adjusted for inherent limitations or biases that have been identified through independent validation and back-testing of model performance to actual realized results. At each of June 30, 2026 and December 31, 2025, the Company utilized a reasonable and supportable forecast period of two years. Subsequent to this forecast period the Company reverted, ratably over a one-year period, to historical loss experience to inform its estimate of losses for the remaining contractual life of each portfolio. In determining the allowance for loan losses, the Company may adjust forecasted loss estimates for inherent limitations or biases in the models as well as for other factors that may not be adequately considered in its quantitative methodologies including the impact of portfolio concentrations, imprecision in its economic forecasts, geopolitical conditions and other risk factors that might influence its loss estimation process.
The Company also estimates losses attributable to specific troubled credits identified through both normal and targeted credit review processes. The amounts of specific loss components in the Company’s loan portfolios are determined through a loan-by-loan analysis of larger balance commercial and industrial loans and commercial real estate loans that are in nonaccrual status. Such loss estimates are typically based on expected future cash flows, collateral values and other factors that may impact the borrower’s ability to pay. To the extent that those loans are collateral-dependent, they are evaluated based on the fair value of the loan’s collateral as estimated at or near the financial statement date. As the quality of a loan deteriorates to the point of designating the loan as “criticized nonaccrual,” the process of obtaining updated collateral valuation information is usually initiated, unless it is not considered warranted given factors such as the relative size of the loan, the characteristics of the collateral or the age of the last valuation. In those cases where current appraisals may not yet be available, prior appraisals are utilized with adjustments, as deemed necessary, for estimates of subsequent declines in values as determined by line of business and/or loan workout personnel. Those adjustments are reviewed and assessed for reasonableness by the Company’s credit risk personnel. Accordingly, for real estate collateral securing larger nonaccrual commercial and industrial loans and commercial real estate loans, estimated collateral values are generally based on current appraisals and estimates of value. For non-real estate loans, collateral is assigned a discounted estimated liquidation value and, depending on the nature of the collateral, is verified through field exams or other procedures. In assessing collateral, real estate and non-real estate values are reduced by an estimate of selling costs.
Changes in the amount of the allowance for loan losses reflect the outcome of the procedures described herein, including the impact of changes in macroeconomic forecasts as compared with previous forecasts, as well as the impact of portfolio concentrations, imprecision in economic forecasts, geopolitical conditions and other risk factors that might influence the loss estimation process.
- 21 -
Information with respect to loans that were considered nonaccrual at the beginning and end of the reporting period and the interest income recognized on such loans for the three-month and six-month periods ended June 30, 2026 and 2025 follows.
| Amortized Cost with Allowance · Amortized Cost without Allowance · Total · Amortized Cost · Interest Income Recognized | |||||||
|---|---|---|---|---|---|---|---|
| (Dollars in millions) · June 30, 2026 · April 1, 2026 · January 1, 2026 · Three MonthsEndedJune 30, 2026 · Six MonthsEndedJune 30,2026 | |||||||
| Commercial and industrial | $520 | $50 | $570 | $535 | $527 | $8 | $15 |
| Real estate: | |||||||
| Commercial | 162 | 54 | 216 | 294 | 320 | 8 | 9 |
| Residential builder and developer | — | — | — | — | — | — | — |
| Other commercial construction | 29 | 7 | 36 | 10 | 13 | — | — |
| Residential | 111 | 151 | 262 | 272 | 264 | 4 | 6 |
| Consumer: | |||||||
| Home equity lines and loans | 37 | 40 | 77 | 84 | 82 | 1 | 3 |
| Recreational finance | 19 | 14 | 33 | 32 | 30 | 1 | 1 |
| Automobile | 8 | 2 | 10 | 9 | 11 | — | — |
| Other | 4 | — | 4 | 4 | 5 | — | — |
| Total | $890 | $318 | $1,208 | $1,240 | $1,252 | $22 | $34 |
| June 30, 2025 · April 1, 2025 · January 1, 2025 · Three MonthsEndedJune 30, 2025 · Six MonthsEndedJune 30,2025 | |||||||
| Commercial and industrial | $663 | $124 | $787 | $662 | $696 | $6 | $12 |
| Real estate: | |||||||
| Commercial | 289 | 87 | 376 | 394 | 468 | 10 | 17 |
| Residential builder and developer | 1 | — | 1 | 1 | 2 | — | — |
| Other commercial construction | 23 | — | 23 | 28 | 66 | — | — |
| Residential | 115 | 150 | 265 | 284 | 279 | 4 | 7 |
| Consumer: | |||||||
| Home equity lines and loans | 34 | 41 | 75 | 78 | 81 | 2 | 4 |
| Recreational finance | 15 | 10 | 25 | 26 | 31 | — | — |
| Automobile | 7 | 2 | 9 | 11 | 12 | — | — |
| Other | 5 | 7 | 12 | 56 | 55 | — | — |
| Total | $1,152 | $421 | $1,573 | $1,540 | $1,690 | $22 | $40 |
- 22 -
Loan modifications
Loan modifications typically consist of extensions of maturity dates but may also include other modified terms such as payment deferrals and interest rate reductions. The table that follows summarizes the Company’s loan modification activities to borrowers experiencing financial difficulty for the three-month and six-month periods ended June 30, 2026 and 2025.
| Amortized Cost (a) | |||||
|---|---|---|---|---|---|
| (Dollars in millions) | Term Extension | Other | Combination of Modification Types | Total (b) (c) | Percent of Total Loan Class |
| Commercial and industrial | $73 | $6 | $37 | $116 | .18% |
| Real estate: | |||||
| Commercial | 120 | 1 | 23 | 144 | .68 |
| Residential builder and developer | — | — | — | — | — |
| Other commercial construction | 183 | — | 4 | 187 | 5.94 |
| Residential | 39 | 2 | 17 | 58 | .23 |
| Consumer: | |||||
| Home equity lines and loans | — | — | 1 | 1 | .02 |
| Recreational finance | — | — | — | — | — |
| Automobile | — | — | — | — | — |
| Other | 8 | — | — | 8 | .32 |
| Total | $423 | $9 | $82 | $514 | .36% |
| Commercial and industrial | $136 | $9 | $68 | $213 | .32% |
| Real estate: | |||||
| Commercial | 313 | 9 | 96 | 418 | 1.97 |
| Residential builder and developer | 9 | — | — | 9 | 7.85 |
| Other commercial construction | 245 | — | 4 | 249 | 7.92 |
| Residential | 53 | 5 | 21 | 79 | .31 |
| Consumer: | |||||
| Home equity lines and loans | — | — | 1 | 1 | .02 |
| Recreational finance | — | — | — | — | — |
| Automobile | — | — | — | — | — |
| Other | 8 | — | — | 8 | .32 |
| Total | $764 | $23 | $190 | $977 | .68% |
(a)As of the respective period end.
(b)Includes approximately $48 million and $62 million of loans guaranteed by government-related entities (primarily first lien residential mortgage loans) for the three-month and six-month periods ended June 30, 2026, respectively.
(c)Excludes unfunded commitments to extend credit totaling $29 million and $45 million for the three-month and six-month periods ended June 30, 2026, respectively.
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| Amortized Cost (a) | |||||
|---|---|---|---|---|---|
| (Dollars in millions) | Term Extension | Other | Combination of Modification Types | Total (b) (c) | Percent of Total Loan Class |
| Commercial and industrial | $68 | $16 | $3 | $87 | .14% |
| Real estate: | |||||
| Commercial | 266 | 53 | — | 319 | 1.58 |
| Residential builder and developer | — | — | — | — | — |
| Other commercial construction | 12 | — | — | 12 | .27 |
| Residential | 37 | 1 | 6 | 44 | .18 |
| Consumer: | |||||
| Home equity lines and loans | — | — | — | — | — |
| Recreational finance | — | — | — | — | — |
| Automobile | — | — | — | — | — |
| Other | 10 | — | — | 10 | .44 |
| Total | $393 | $70 | $9 | $472 | .35% |
| Commercial and industrial | $130 | $17 | $76 | $223 | .36% |
| Real estate: | |||||
| Commercial | 399 | 53 | — | 452 | 2.24 |
| Residential builder and developer | — | — | — | — | — |
| Other commercial construction | 214 | — | — | 214 | 5.03 |
| Residential | 71 | 4 | 12 | 87 | .36 |
| Consumer: | |||||
| Home equity lines and loans | — | — | — | — | — |
| Recreational finance | — | — | — | — | — |
| Automobile | — | — | — | — | — |
| Other | 10 | — | — | 10 | .44 |
| Total | $824 | $74 | $88 | $986 | .73% |
(a)As of the respective period end.
(b)Includes approximately $36 million and $70 million of loans guaranteed by government-related entities (primarily first lien residential mortgage loans) for the three-month and six-month periods ended June 30, 2025, respectively.
(c)Excludes unfunded commitments to extend credit totaling $10 million and $18 million for the three-month and six-month periods ended June 30, 2025, respectively.
The financial effects of the modifications on the weighted-average remaining term of modified loans for the three-month and six-month periods ended June 30, 2026 and 2025 are summarized in the following table.
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (In years) | 2026 | 2025 | 2026 | 2025 |
| Increase to weighted-average remaining term | ||||
| Commercial and industrial | 1.1 | 0.6 | 1.7 | 0.8 |
| Real estate: | ||||
| Commercial (a) | 1.4 | 0.8 | 1.3 | 0.8 |
| Residential | 10.6 | 9.2 | 10.8 | 9.7 |
(a)Inclusive of residential builder and developer loans and other commercial construction loans.
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The following table summarizes the payment status, at June 30, 2026 and 2025, of loans to borrowers experiencing financial difficulty that were modified during the twelve-month periods ended June 30, 2026 and 2025, respectively.
| Amortized Cost (a) | ||||
|---|---|---|---|---|
| (Dollars in millions) | Current | 30-89 Days Past Due | Past Due 90 Days or More | Total |
| Commercial and industrial | $247 | $8 | $8 | $263 |
| Real estate: | ||||
| Commercial | 458 | 117 | 3 | 578 |
| Residential builder and developer | 3 | 9 | — | 12 |
| Other commercial construction | 272 | 2 | — | 274 |
| Residential (b) | 113 | 36 | 47 | 196 |
| Consumer: | ||||
| Home equity lines and loans | 2 | — | — | 2 |
| Recreational finance | — | — | — | — |
| Automobile | — | — | — | — |
| Other | 11 | — | — | 11 |
| Total | $1,106 | $172 | $58 | $1,336 |
| Commercial and industrial | $281 | $7 | $63 | $351 |
| Real estate: | ||||
| Commercial | 598 | 54 | 1 | 653 |
| Residential builder and developer | — | — | — | — |
| Other commercial construction | 279 | — | 5 | 284 |
| Residential (b) | 77 | 48 | 41 | 166 |
| Consumer: | ||||
| Home equity lines and loans | 1 | — | — | 1 |
| Recreational finance | 1 | — | — | 1 |
| Automobile | — | — | — | — |
| Other | 10 | — | — | 10 |
| Total | $1,247 | $109 | $110 | $1,466 |
(a) At the respective period end.
(b) Includes loans guaranteed by government-related entities classified as 30 to 89 days past due of $30 million and $40 million and as past due 90 days or more of $43 million and $35 million at June 30, 2026 and 2025, respectively.
Modified loans to borrowers experiencing financial difficulty are subject to the allowance for loan losses methodology described herein, including the use of models to inform credit loss estimates and, to the extent larger balance commercial and industrial loans and commercial real estate loans are in nonaccrual status, a loan-by-loan analysis of expected credit losses on those individual loans.
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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.