LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES

12 Months Ended

Dec. 31, 2025

LOANS, LEASES, AND ALLOWANCE FOR CREDIT LOSSES

Loans, Leases, and Loans Held for Sale

At origination, each loan is classified as either held for investment or held for sale based on our intended purpose. We may subsequently change our intent for a loan or portfolio of loans and reclassify them accordingly. Loans held for sale are carried at the lower of cost or fair value. When fair value is less than cost, a valuation allowance is established based on assessments performed at the time of reclassification and reviewed periodically thereafter. Associated gains and losses are determined as the difference between the sales proceeds and the carrying amount and are included in “Loan-related fees and income” on the consolidated statement of income.

In the ordinary course of business, we may syndicate portions of loans or transfer interests under participation agreements to manage credit risk and portfolio concentrations. We review all loan participations to confirm they meet the applicable accounting criteria to qualify for sale treatment.

We elect the fair value option for certain CRE loans designated for sale or securitization that are hedged with derivative instruments, as described further in Note 3. Gains and losses on the sale of these loans are included in “Capital markets fees” on the consolidated statement of income.

The following schedule presents our loan and lease portfolio according to major portfolio segment and specific class:


	December 31,
(In millions)	2025		2024

Loans held for sale	$	201	$	74
Commercial:
Commercial and industrial	$	17,761	$	16,891
Owner-occupied	9,274		9,333
Municipal	4,294		4,364
Leasing	367		377
Total commercial	31,696		30,965
Commercial real estate:
Term	11,234		10,703
Construction and land development	2,162		2,774
Total commercial real estate	13,396		13,477
Consumer:
1-4 family residential	10,462		9,939
Home equity credit line	3,950		3,641
Construction and other consumer real estate	782		810
Bankcard and other revolving plans	515		457
Other	116		121
Total consumer	15,825		14,968
Total loans and leases	$	60,917	$	59,410

Loans and leases classified as held for investment are measured and presented at their amortized cost basis, which includes net unamortized purchase premiums, discounts, and deferred loan fees and costs totaling $61 million and $43 million at December 31, 2025, and December 31, 2024, respectively. These unamortized amounts are amortized into interest income over the life of the loan using the interest method. The amortized cost basis of the loans does not include accrued interest receivables of $276 million and $281 million at December 31, 2025, and December 31, 2024, respectively. These receivables are included in “Other assets” on the consolidated balance sheet.

Municipal loans generally include loans to state and local governments (“municipalities”), with the debt service being repaid from general funds or pledged revenues of the municipal entity, or to private commercial entities or 501(c)(3) not-for-profit entities utilizing a pass-through municipal entity to achieve favorable tax treatment.

Land acquisition and development loans included in the construction and land development loan portfolio totaled $257 million at December 31, 2025 and $260 million at December 31, 2024.

Loans with a carrying value of approximately $43.2 billion at December 31, 2025, and $40.4 billion at December 31, 2024, have been pledged at the Federal Reserve and the Federal Home Loan Bank (“FHLB”) of Des Moines as collateral for current and potential borrowings.

Loans held for sale are measured individually at fair value or the lower of cost or fair value and primarily consist of CRE loans sold into securitization entities and conforming residential mortgages generally sold to U.S. government

agencies. The following schedule presents loans added to, or sold from, the held for sale category during the periods presented:


	Twelve Months Ended December 31,
(In millions)	2025		2024

Loans added to held for sale	$	1,287	$	922
Loans sold from held for sale	1,145		899

Occasionally, we have continuing involvement in sold loans through retained servicing rights or guarantees. The principal balance of loans sold for which we have retained servicing was approximately $679 million at December 31, 2025, and $615 million at December 31, 2024. Income generated from sold loans, excluding servicing, was $12 million in 2025, $8 million in 2024, and $16 million in 2023.

Allowance for Credit Losses

We evaluate loans throughout their lifecycle for indications of credit deterioration, which may affect the loan status, risk grading, and potentially the accounting for that loan. Loan status categories include accruing or nonaccruing, past due as to contractual payments, and modified. The ACL, which consists of the allowance for loan and lease losses (“ALLL”) and the reserve for unfunded lending commitments (“RULC”), represents our estimate of current expected credit losses related to the loan and lease portfolio and unfunded lending commitments as of the balance sheet date. The ACL for AFS and HTM debt securities is estimated separately from loans. For HTM securities, the ACL is estimated consistent with the approach for loans carried at amortized cost. See Note 5 for further discussion on our assessment of expected credit losses on AFS securities and disclosures related to AFS and HTM securities.

The ACL is calculated using the loan’s amortized cost basis, which includes the principal balance, net of unamortized premiums, discounts, and deferred fees and costs. We do not estimate the ACL for accrued interest receivables, as we reverse or write off uncollectible accrued interest receivable balances in a timely manner, generally within one month.

The methodologies we use to estimate the ACL depend on various factors, including the type of loan, the age and contractual term of the loan, expected payments (both contractual and estimated prepayments), credit quality indicators, economic forecasts, and the evaluation method (whether individually or collectively evaluated). Loan extensions or renewals are not considered in the ACL unless they are included in the original or modified loan contract and are not unconditionally cancellable.

Losses are charged to the ACL when recognized. Generally, commercial and CRE loans are charged off or charged down when they are determined to be uncollectible in whole or in part, or when 180 days past due, unless the loan is well secured and in process of collection. Consumer loans are either charged off or charged down to net realizable value no later than the month in which they become 180 days past due. Closed-end consumer loans that are not secured by residential real estate are either charged off or charged down to net realizable value no later than the month in which they become 120 days past due.

We establish the amount of the ACL by analyzing the portfolio at least quarterly, and we adjust the provision for loan losses and unfunded lending commitments to help maintain the ACL at an appropriate level at the balance sheet date. The ACL is determined based on our review of loans with similar risk characteristics, which are evaluated on a collective basis, as well as loans without similar risk characteristics, which are evaluated on an individual basis.

For commercial and CRE loans with commitments greater than $1 million, we assign internal risk grades using a comprehensive loan grading system based on financial and statistical models, individual credit analysis, and loan officer experience and judgment. The credit quality indicators described subsequently are based on this grading system. Estimated credit losses on all loan segments, including consumer and small commercial and CRE loans with commitments less than or equal to $1 million that are evaluated on a collective basis, are derived from statistical analyses of our historical default and loss experience since January 2008.

We estimate current expected credit losses for each loan by considering historical credit loss experience, current conditions, and reasonable and supportable forecasts about the future. We use the following two types of credit loss estimation models:

•Econometric loss models, which rely on statistical analyses of our historical loss experience, dependent on economic factors and other loan-level characteristics. Statistically relevant economic factors vary depending on the type of loan, but include variables such as unemployment, real estate price indices, energy prices, and gross domestic product. The models use multiple economic scenarios that reflect optimistic, baseline, and stressed economic conditions. The results derived using these economic scenarios are weighted to produce the credit loss estimate. Management may adjust the weights to reflect their assessment of current conditions and reasonable and supportable forecasts.

•Loss models based on our long-term average historical credit loss experience since 2008, which rely on statistical analyses of our historical loss experience, dependent upon loan-level characteristics.

Credit loss estimates for the first 12 months of a loan’s remaining life are derived using econometric loss models. Over a subsequent 12-month reversion period, we blend the estimated credit losses from the two model types on a straight-line basis. For the remaining life of the loan, the estimated credit losses are derived from the long-term average historical credit loss models.

For loans that do not share risk characteristics with other loans, we estimate lifetime expected credit losses on an individual basis. These include nonaccrual loans with a balance greater than $1 million. When a loan is individually evaluated for expected credit losses, we estimate a specific reserve for the loan based on either the projected present value of the loan’s future cash flows discounted at the loan’s effective interest rate, the observable market price of the loan, or the fair value of the loan’s underlying collateral.

When we base the specific reserve on the fair value of the loan’s underlying collateral, we generally charge off the portion of the balance that exceeds the fair value. For these loans, subsequent to the charge-off, if the fair value of the loan’s underlying collateral increases according to an updated appraisal, we establish a negative reserve up to the lesser of the amount of the charge-off or the updated fair value.

The methodologies described previously generally rely on historical loss information to help determine the quantitative portion of the ACL. We also consider other qualitative and environmental factors related to current conditions and reasonable and supportable forecasts that may indicate current expected credit losses could differ from the historical information reflected in our quantitative models. Thus, after applying historical loss experience, we review the quantitative portion of ACL for each portfolio segment. We then monitor various qualitative risk factors that influence our judgment regarding the level of the ACL across the portfolio segments. These factors primarily include:

•Actual and expected changes in international, national, regional, and local economic and business conditions and developments;

•The volume and severity of past due loans, the volume of nonaccrual loans, and the volume and severity of adversely classified or graded loans;

•Lending policies and procedures, including changes in underwriting standards and practices for collection, charge-off, and recovery;

•The experience, ability, and depth of lending management and other relevant staff;

•The nature and volume of the portfolio;

•The quality of the credit review function;

•The existence, growth, and effect of any concentration of credit;

•The effect of other external factors such as regulatory, legal, and technological environments; fiscal and monetary actions; competition; and events such as natural disasters and pandemics.

The magnitude of the impact of these factors on our qualitative assessment of the ACL changes from quarter to quarter based on management's assessment of these factors, the extent to which these factors are already reflected in quantitative loss estimates, and the extent to which changes in these factors diverge from one to another. We also consider the uncertainty and imprecision inherent in the estimation process when evaluating the ACL.

Off-balance Sheet Credit Exposures

We estimate current expected credit losses for off-balance sheet loan commitments, including letters of credit that are not unconditionally cancellable. This estimate uses the same procedures and methodologies described previously for loans and is calculated as the difference between the estimated current expected credit loss and the funded balance, if greater than zero.

Changes in the Allowance for Credit Losses

The following schedule presents a roll-forward of the ACL categorized by loan portfolio segment:


	December 31, 2025
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan and lease losses
Balance at beginning of year	$	308	$	300	$	88	$	696
Provision for loan losses	162		(115)		24		71
Gross loan and lease charge-offs	103		4		15		122
Recoveries	24		4		5		33
Net loan and lease charge-offs (recoveries)	79		—		10		89
Balance at end of year	$	391	$	185	$	102	$	678
Reserve for unfunded lending commitments
Balance at beginning of year	$	26	$	11	$	8	$	45
Provision for unfunded lending commitments	(7)		8		—		1
Balance at end of year	$	19	$	19	$	8	$	46
Total allowance for credit losses
Allowance for loan and lease losses	$	391	$	185	$	102	$	678
Reserve for unfunded lending commitments	19		19		8		46
Total allowance for credit losses	$	410	$	204	$	110	$	724


	December 31, 2024
(In millions)	Commercial		Commercial real estate		Consumer		Total
Allowance for loan and lease losses
Balance at beginning of year	$	302	$	241	$	141	$	684
Provision for loan losses	51		67		(46)		72
Gross loan and lease charge-offs	68		11		12		91
Recoveries	23		3		5		31
Net loan and lease charge-offs (recoveries)	45		8		7		60
Balance at end of year	$	308	$	300	$	88	$	696
Reserve for unfunded lending commitments
Balance at beginning of year	$	19	$	17	$	9	$	45
Provision for unfunded lending commitments	7		(6)		(1)		—
Balance at end of year	$	26	$	11	$	8	$	45
Total allowance for credit losses
Allowance for loan and lease losses	$	308	$	300	$	88	$	696
Reserve for unfunded lending commitments	26		11		8		45
Total allowance for credit losses	$	334	$	311	$	96	$	741

Nonaccrual Loans

Loans are generally placed on nonaccrual when the full collection of principal and interest is not expected, or when the loan is 90 days or more past due on principal or interest, unless the loan is both well secured and in the process of collection. The decision to place a loan on nonaccrual considers factors such as delinquency status, collateral valuation, the financial condition of the borrower or guarantor, bankruptcy proceedings, pending litigation, and any other indicators that create uncertainty regarding the full and timely collection of principal and interest.

A nonaccrual loan may be restored to accrual status when the following conditions are met: (1) all delinquent principal and interest are brought current in accordance with the loan agreement; (2) the loan, if secured, is well secured; (3) the borrower has made payments according to the contractual terms for a minimum of six months; and (4) an analysis of the borrower indicates a reasonable assurance of their ability and willingness to continue making payments.

The following schedule presents the amortized cost basis of loans on nonaccrual:


	December 31, 2025
	Amortized cost basis				Total amortized cost basis
(In millions)	with no allowance 1		with allowance				Related allowance



Commercial:
Commercial and industrial	$	44	$	46	$	90	$	18
Owner-occupied	33		18		51		1
Municipal	—		2		2		—
Leasing	—		3		3		1
Total commercial	77		69		146		20
Commercial real estate:
Term	4		68		72		2
Construction and land development	—		1		1		—
Total commercial real estate	4		69		73		2
Consumer:
1-4 family residential	14		51		65		5
Home equity credit line	—		30		30		8

Bankcard and other revolving plans	—		1		1		1

Total consumer loans	14		82		96		14
Total	$	95	$	220	$	315	$	36


	December 31, 2024
	Amortized cost basis				Total amortized cost basis
(In millions)	with no allowance 1		with allowance				Related allowance



Commercial:
Commercial and industrial	$	45	$	69	$	114	$	19
Owner-occupied	18		13		31		1
Municipal	5		6		11		2
Leasing	—		2		2		1
Total commercial	68		90		158		23
Commercial real estate:
Term	27		32		59		4

Total commercial real estate	27		32		59		4
Consumer:
1-4 family residential	12		37		49		4
Home equity credit line	5		25		30		5

Bankcard and other revolving plans	—		1		1		1

Total consumer loans	17		63		80		10
Total	$	112	$	185	$	297	$	37

1 Nonaccrual loans with no allowance primarily consist of loans for which a specific reserve is estimated based on the fair value of the collateral. As a result, we generally charge off the portion of the loan balance that exceeds that fair value, and no reserve or related allowance is established for these loans.

For accruing loans, interest is accrued, and interest payments are recognized as interest income in accordance with the contractual loan agreement. For nonaccruing loans, the accrual of interest is discontinued, and any uncollected or accrued interest is promptly reversed from interest income, generally within one month. Payments received on nonaccruing loans are not recognized as interest income, but are applied to reduce the outstanding principal balance. When the collectibility of the amortized cost basis of a nonaccrual loan is no longer in doubt, interest payments may be recognized as interest income on a cash basis. During 2025 and 2024, no interest income was recognized on a cash basis while the loans were on nonaccrual.

The following schedule presents the amount of accrued interest receivables reversed from interest income categorized by loan portfolio segment during the periods presented:


	Twelve Months Ended December 31,
(In millions)	2025		2024		2023

Commercial	$	16	$	16	$	10
Commercial real estate	5		5		3
Consumer	4		4		2
Total	$	25	$	25	$	15

Past Due Loans

Closed-end loans with monthly payments are reported as past due when the borrower is in arrears for two or more monthly payments. Similarly, open-end credits, such as bankcard and other revolving credit plans, are reported as past due when the minimum payment has not been made for two or more billing cycles. Other multi-payment obligations (e.g., quarterly, semi-annual), single payment, and demand notes are reported as past due when either principal or interest is due and unpaid for 30 days or more.

The following schedules present loans categorized by their past-due or delinquency status:


	December 31, 2025
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total loans		Accruing loans 90+ days past due		Nonaccrual loans that are current1


Commercial:
Commercial and industrial	$	17,676	$	74	$	11	$	85	$	17,761	$	2	$	71
Owner-occupied	9,235		11		28		39		9,274		1		17
Municipal	4,293		1		—		1		4,294		—		2
Leasing	366		1		—		1		367		—		2
Total commercial	31,570		87		39		126		31,696		3		92
Commercial real estate:
Term	11,211		1		22		23		11,234		1		50
Construction and land development	2,161		—		1		1		2,162		—		—
Total commercial real estate	13,372		1		23		24		13,396		1		50
Consumer:
1-4 family residential	10,411		10		41		51		10,462		—		21
Home equity credit line	3,920		19		11		30		3,950		—		15
Construction and other consumer real estate	782		—		—		—		782		—		—
Bankcard and other revolving plans	510		3		2		5		515		1		1
Other	115		1		—		1		116		—		—
Total consumer loans	15,738		33		54		87		15,825		1		37
Total	$	60,680	$	121	$	116	$	237	$	60,917	$	5	$	179


	December 31, 2024
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total loans		Accruing loans 90+ days past due		Nonaccrual loans that are current1


Commercial:
Commercial and industrial	$	16,857	$	20	$	14	$	34	$	16,891	$	1	$	98
Owner-occupied	9,309		10		14		24		9,333		3		16
Municipal	4,348		6		10		16		4,364		10		11
Leasing	377		—		—		—		377		—		2
Total commercial	30,891		36		38		74		30,965		14		127
Commercial real estate:
Term	10,667		2		34		36		10,703		3		28
Construction and land development	2,774		—		—		—		2,774		—		—
Total commercial real estate	13,441		2		34		36		13,477		3		28
Consumer:
1-4 family residential	9,896		16		27		43		9,939		—		15
Home equity credit line	3,609		20		12		32		3,641		—		13
Construction and other consumer real estate	810		—		—		—		810		—		—
Bankcard and other revolving plans	453		2		2		4		457		1		—
Other	121		—		—		—		121		—		—
Total consumer loans	14,889		38		41		79		14,968		1		28
Total	$	59,221	$	76	$	113	$	189	$	59,410	$	18	$	183

1 Represents nonaccrual loans that are not past due more than 30 days; however, full payment of principal and interest is not expected.

Credit Quality Indicators

In addition to the nonaccrual and past due criteria, we also analyze loans using loan risk-grading systems, which vary based on the size and type of credit risk exposure. The internal risk grades assigned to loans follow our definitions of Pass, Special Mention, Substandard, and Doubtful, which align with published regulatory risk classifications.

Definitions of Pass, Special Mention, Substandard, and Doubtful are summarized as follows:

•Pass — A Pass asset is higher-quality and does not fit any of the other categories described below. The likelihood of loss is considered low.

•Special Mention — A Special Mention asset has potential weaknesses that warrant management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or our credit position at some future date.

•Substandard — A Substandard asset is inadequately protected by the current sound worth and paying capacity of the obligor or the collateral pledged, if any. Assets classified as Substandard have well-defined weaknesses and are characterized by the distinct possibility that we may sustain some loss if deficiencies are not corrected.

•Doubtful — A Doubtful asset has all the weaknesses inherent in a Substandard asset, with the added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable.

There were no loans classified as Doubtful at December 31, 2025, compared with $14 million at December 31, 2024.

For commercial and CRE loans with commitments greater than $1 million, we assign one of multiple grades within the Pass classification or one of the previously described risk classifications. We assess our internal risk grades quarterly, or as soon as we identify information that affects the credit risk of the loan.

For consumer loans and for commercial and CRE loans with commitments of $1 million or less, we generally assign internal risk grades similar to those previously described based on automated rules that consider refreshed credit scores, payment performance, and other risk indicators. These loans are generally assigned either a Pass, Special Mention, or Substandard grade, and are reviewed as we identify information that might warrant a grade change.

The following schedules present the amortized cost of loans and leases by vintage year—that is, the year of origination or, when applicable, the year of the most recent renewal, extension, or modification that resets the loan's vintage. The schedules also present these balances by the credit quality classifications used by management in monitoring portfolio risk.


	December 31, 2025
	Term Loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2025		2024		2023		2022		2021		Prior						Total
Commercial:
Commercial and industrial
Pass	$	3,668	$	1,970	$	1,086	$	825	$	335	$	675	$	8,141	$	197	$	16,897
Special Mention	14		29		13		16		28		30		99		1		230
Accruing Substandard	60		139		80		32		17		30		177		9		544
Nonaccrual	4		4		3		36		3		3		14		23		90
Total commercial and industrial	3,746		2,142		1,182		909		383		738		8,431		230		17,761
Owner-occupied
Pass	1,112		1,234		727		1,414		1,492		2,515		227		67		8,788
Special Mention	3		28		—		9		9		30		1		—		80
Accruing Substandard	4		37		15		111		71		89		24		4		355
Nonaccrual	6		8		2		6		3		19		7		—		51
Total owner-occupied	1,125		1,307		744		1,540		1,575		2,653		259		71		9,274
Municipal
Pass	542		614		409		745		849		1,070		1		41		4,271
Special Mention	—		3		—		—		—		—		—		—		3
Accruing Substandard	—		—		—		—		—		18		—		—		18
Nonaccrual	—		—		—		—		2		—		—		—		2
Total municipal	542		617		409		745		851		1,088		1		41		4,294
Leasing
Pass	95		88		57		73		15		23		—		—		351
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		1		2		9		1		—		—		—		13
Nonaccrual	—		1		1		1		—		—		—		—		3
Total leasing	95		90		60		83		16		23		—		—		367
Total commercial	5,508		4,156		2,395		3,277		2,825		4,502		8,691		342		31,696


	December 31, 2025
	Term Loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2025		2024		2023		2022		2021		Prior						Total
Commercial real estate:
Term
Pass	2,643		1,223		1,167		1,741		956		1,747		318		140		9,935
Special Mention	51		—		35		71		—		1		—		—		158
Accruing Substandard	328		43		142		426		53		36		26		15		1,069
Nonaccrual	21		—		16		1		—		5		—		29		72
Total term	3,043		1,266		1,360		2,239		1,009		1,789		344		184		11,234
Construction and land development
Pass	446		540		375		47		1		1		624		49		2,083
Special Mention	—		8		5		—		—		—		—		—		13
Accruing Substandard	53		6		—		—		—		—		6		—		65
Nonaccrual	—		—		1		—		—		—		—		—		1
Total construction and land development	499		554		381		47		1		1		630		49		2,162
Total commercial real estate	3,542		1,820		1,741		2,286		1,010		1,790		974		233		13,396
Consumer:
1-4 family residential
Pass	917		847		867		3,144		1,808		2,812		—		—		10,395
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		1		—		—		—		1		—		—		2
Nonaccrual	1		4		5		15		13		27		—		—		65
Total 1-4 family residential	918		852		872		3,159		1,821		2,840		—		—		10,462
Home equity credit line
Pass	—		—		—		—		—		—		3,799		111		3,910
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		10		—		10
Nonaccrual	—		—		—		—		—		—		26		4		30
Total home equity credit line	—		—		—		—		—		—		3,835		115		3,950
Construction and other consumer real estate
Pass	246		351		87		91		5		2		—		—		782
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and other consumer real estate	246		351		87		91		5		2		—		—		782
Bankcard and other revolving plans
Pass	—		—		—		—		—		—		511		1		512
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		2		—		2
Nonaccrual	—		—		—		—		—		—		1		—		1
Total bankcard and other revolving plans	—		—		—		—		—		—		514		1		515
Other consumer
Pass	55		26		19		11		4		1		—		—		116
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total other consumer	55		26		19		11		4		1		—		—		116
Total consumer	1,219		1,229		978		3,261		1,830		2,843		4,349		116		15,825
Total loans	$	10,269	$	7,205	$	5,114	$	8,824	$	5,665	$	9,135	$	14,014	$	691	$	60,917


	December 31, 2024
	Term Loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2024		2023		2022		2021		2020		Prior						Total
Commercial:
Commercial and industrial
Pass	$	2,479	$	1,951	$	1,504	$	759	$	387	$	679	$	8,043	$	150	$	15,952
Special Mention	37		24		47		8		2		34		85		5		242
Accruing Substandard	53		43		200		26		28		21		200		12		583
Nonaccrual	7		13		31		17		1		4		38		3		114
Total commercial and industrial	2,576		2,031		1,782		810		418		738		8,366		170		16,891
Owner-occupied
Pass	1,346		907		1,606		1,657		900		2,097		234		47		8,794
Special Mention	38		—		38		31		2		18		18		1		146
Accruing Substandard	23		28		75		66		25		133		7		5		362
Nonaccrual	5		1		4		1		—		15		5		—		31
Total owner-occupied	1,412		936		1,723		1,755		927		2,263		264		53		9,333
Municipal
Pass	604		498		939		960		553		753		—		29		4,336
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	10		4		—		—		—		3		—		—		17
Nonaccrual	3		—		—		5		—		3		—		—		11
Total municipal	617		502		939		965		553		759		—		29		4,364
Leasing
Pass	109		79		94		26		12		36		—		—		356
Special Mention	—		—		2		—		—		—		—		—		2
Accruing Substandard	1		3		10		2		1		—		—		—		17
Nonaccrual	—		1		1		—		—		—		—		—		2
Total leasing	110		83		107		28		13		36		—		—		377
Total commercial	4,715		3,552		4,551		3,558		1,911		3,796		8,630		252		30,965
Commercial real estate:
Term
Pass	1,687		1,198		2,093		1,278		1,053		1,608		254		175		9,346
Special Mention	48		—		87		—		—		5		—		—		140
Accruing Substandard	298		105		443		144		13		102		27		26		1,158
Nonaccrual	—		—		23		—		—		10		—		26		59
Total term	2,033		1,303		2,646		1,422		1,066		1,725		281		227		10,703
Construction and land development
Pass	361		701		445		4		1		9		680		52		2,253
Special Mention	—		22		21		17		—		—		—		25		85
Accruing Substandard	57		52		249		78		—		—		—		—		436
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and land development	418		775		715		99		1		9		680		77		2,774
Total commercial real estate	2,451		2,078		3,361		1,521		1,067		1,734		961		304		13,477


	December 31, 2024
	Term Loans												Revolving loans amortized cost basis		Revolving loans converted to term loans amortized cost basis
	Amortized cost basis by year of origination
(In millions)	2024		2023		2022		2021		2020		Prior						Total














Consumer:
1-4 family residential
Pass	1,062		870		2,959		1,877		925		2,197		—		—		9,890
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		3		8		9		2		27		—		—		49
Total 1-4 family residential	1,062		873		2,967		1,886		927		2,224		—		—		9,939
Home equity credit line
Pass	—		—		—		—		—		—		3,506		99		3,605
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		6		—		6
Nonaccrual	—		—		—		—		—		—		22		8		30
Total home equity credit line	—		—		—		—		—		—		3,534		107		3,641
Construction and other consumer real estate
Pass	157		191		420		34		5		3		—		—		810
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total construction and other consumer real estate	157		191		420		34		5		3		—		—		810
Bankcard and other revolving plans
Pass	—		—		—		—		—		—		453		1		454
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		2		—		2
Nonaccrual	—		—		—		—		—		—		1		—		1
Total bankcard and other revolving plans	—		—		—		—		—		—		456		1		457
Other consumer
Pass	52		35		22		8		2		2		—		—		121
Special Mention	—		—		—		—		—		—		—		—		—
Accruing Substandard	—		—		—		—		—		—		—		—		—
Nonaccrual	—		—		—		—		—		—		—		—		—
Total other consumer	52		35		22		8		2		2		—		—		121
Total consumer	1,271		1,099		3,409		1,928		934		2,229		3,990		108		14,968
Total loans	$	8,437	$	6,729	$	11,321	$	7,007	$	3,912	$	7,759	$	13,581	$	664	$	59,410

The following schedules present gross charge-offs categorized by year of loan origination for the periods presented:


	December 31, 2025
	Term loans												Revolving loans gross charge-offs		Revolving loans converted to term loans gross charge-offs
	Gross charge-offs by year of loan origination
(In millions)	2025		2024		2023		2022		2021		Prior						Total
Commercial:
Commercial and industrial	$	—	$	2	$	2	$	3	$	3	$	13	$	75	$	1	$	99
Owner-occupied	—		—		—		—		—		1		—		—		1
Municipal	—		—		—		—		3		—		—		—		3
Leasing	—		—		—		—		—		—		—		—		—
Total commercial	—		2		2		3		6		14		75		1		103
Commercial real estate:
Term	1		—		3		—		—		—		—		—		4


Consumer:
1-4 family residential	—		—		—		—		1		2		—		—		3
Home equity credit line	—		—		—		—		—		—		2		—		2

Bankcard and other revolving plans	—		—		—		—		—		—		8		—		8
Other	—		—		—		—		—		2		—		—		2
Total consumer	—		—		—		—		1		4		10		—		15
Total gross charge-offs	$	1	$	2	$	5	$	3	$	7	$	18	$	85	$	1	$	122

	December 31, 2024
	Term loans												Revolving loans gross charge-offs		Revolving loans converted to term loans gross charge-offs
	Gross charge-offs by year of loan origination
(In millions)	2024		2023		2022		2021		2020		Prior						Total
Commercial:
Commercial and industrial	$	—	$	3	$	19	$	2	$	—	$	9	$	30	$	4	$	67
Owner-occupied	—		—		1		—		—		—		—		—		1


Total commercial	—		3		20		2		—		9		30		4		68
Commercial real estate:
Term	—		7		4		—		—		—		—		—		11


Consumer:
1-4 family residential	—		—		—		—		—		1		—		—		1
Home equity credit line	—		—		—		—		—		—		1		—		1

Bankcard and other revolving plans	—		—		—		—		—		—		8		—		8
Other	—		—		—		—		—		2		—		—		2
Total consumer	—		—		—		—		—		3		9		—		12
Total gross charge-offs	$	—	$	10	$	24	$	2	$	—	$	12	$	39	$	4	$	91

Loan Modifications

Loans may be modified in the normal course of business for competitive reasons or to strengthen our collateral position. Modifications may also occur when the borrower experiences financial difficulty and requires temporary or permanent relief from the original contractual terms. For loans modified due to a borrower experiencing financial difficulty, we apply the same credit loss estimation methods used for the rest of the loan portfolio. These methods incorporate the post-modification loan terms, as well as defaults and charge-offs associated with historically modified loans. All nonaccruing loans greater than $1 million are evaluated individually, regardless of the type of modification.

We generally consider a borrower to be experiencing financial difficulty when available information indicates the borrower is unlikely to meet its contractual obligations without a modification of the loan terms. Indicators include actual or probable payment default; bankruptcy or the likelihood thereof; substantial doubt about the borrower’s ability to continue as a going concern; insufficient expected cash flows to service debt; or an inability to obtain financing at market terms. A borrower is also considered to be experiencing financial difficulty when repayment is dependent on support from a sponsor or guarantor. Additional indicators may include liquidity constraints, declining collateral values, failure to meet loan covenants, adverse industry changes, and sustained deterioration in financial performance.

In determining whether to agree to a loan modification, our objective is to minimize potential loss while helping the borrower. The evaluation includes the borrowers’ current and forecasted future cash flows, their ability and willingness to make current contractual or proposed modified payments, the value of the underlying collateral (if applicable), the possibility of obtaining additional sponsors or guarantees, and the potential costs related to a repossession or foreclosure and the subsequent sale of the collateral.

A modified loan on nonaccrual will generally remain on nonaccrual until the borrower has demonstrated the ability to perform under the modified terms for a minimum of six months, and there is evidence that such payments can and are likely to continue as agreed. Performance prior to the modification, or significant events that coincide with the modification, are considered in assessing whether the borrower can meet the new terms and may result in the loan being returned to accrual at the time of modification or after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is uncertain, the loan remains on nonaccrual.

On an ongoing basis, we monitor the performance of all modified loans in accordance with their modified terms. For the twelve months ended December 31, 2025, the amortized cost of modified loans that experienced a payment default within 12 months of modification and remained in default at period end was approximately $6 million. For the twelve months ended December 31, 2024, the corresponding amount was $1 million, respectively.

The following schedule presents the amortized cost of loans to borrowers experiencing financial difficulty that were modified during the period, categorized by loan class and modification type:


	Twelve Months Ended December 31, 2025
	Amortized cost associated with the following modification types:
(Dollar amounts in millions)	Interest rate reduction		Maturity or term extension		Principal forgiveness		Payment deferral		Multiple modification types 1		Total 2		Percentage of total loans 3
Commercial:
Commercial and industrial	$	—	$	179	$	—	$	—	$	4	$	183	1.0	%
Owner-occupied	—		30		—		—		—		30		0.3

Total commercial	—		209		—		—		4		213		0.7
Commercial real estate:
Term	—		385		—		4		25		414		3.7
Construction and land development	—		27		—		—		—		27		1.2
Total commercial real estate	—		412		—		4		25		441		3.3
Consumer:
1-4 family residential	—		—		—		—		7		7		0.1
Home equity credit line	—		—		—		—		1		1		—

Bankcard and other revolving plans	—		1		—		—		—		1		0.2

Total consumer loans	—		1		—		—		8		9		0.1
Total	$	—	$	622	$	—	$	4	$	37	$	663	1.1


	Twelve Months Ended December 31, 2024
	Amortized cost associated with the following modification types:
(Dollar amounts in millions)	Interest rate reduction		Maturity or term extension		Principal forgiveness		Payment deferral		Multiple modification types 1		Total 2		Percentage of total loans 3
Commercial:
Commercial and industrial	$	19	$	37	$	—	$	1	$	48	$	105	0.6	%
Owner-occupied	—		12		—		—		—		12		0.1
Municipal	—		11		—		—		—		11		0.3
Total commercial	19		60		—		1		48		128		0.4
Commercial real estate:
Term	—		179		—		—		110		289		2.7
Construction and land development	—		18		—		—		25		43		1.6
Total commercial real estate	—		197		—		—		135		332		2.5
Consumer:
1-4 family residential	—		—		2		—		5		7		0.1
Home equity credit line	—		—		1		—		1		2		0.1

Bankcard and other revolving plans	—		—		—		—		1		1		0.2

Total consumer loans	—		—		3		—		7		10		0.1
Total	$	19	$	257	$	3	$	1	$	190	$	470	0.8

1 Includes modifications resulting from combinations of interest rate reductions, maturity or term extensions, principal forgiveness, and payment deferrals. At December 31, 2025 and 2024, $30 million and $185 million, respectively, classified within multiple modification types included both interest rate reductions and maturity or term extensions.

2 Unfunded lending commitments related to loans modified to borrowers experiencing financial difficulty totaled $33 million and $11 million at December 31, 2025 and 2024, respectively.

3 Amounts less than 0.05% are rounded to zero.

The following schedule presents the financial impact of loan modifications to borrowers experiencing financial difficulty during the twelve months ended December 31, 2025 and 2024:


	Twelve Months Ended December 31, 2025			Twelve Months Ended December 31, 2024
	Weighted-average interest rate reduction (in percentage points)		Weighted-average term extension (in months)	Weighted-average interest rate reduction (in percentage points)		Weighted-average term extension (in months)
Commercial:
Commercial and industrial	0.3	%	11	0.7	%	7
Owner-occupied 1	—		17	—		12


Total commercial	0.3		12	0.7		9
Commercial real estate:
Term	0.7		12	0.6		9
Construction and land development	—		9	0.2		9
Total commercial real estate	0.7		12	0.5		9
Consumer: 1
1-4 family residential	0.9		7	1.7		36
Home equity credit line	4.1		64	5.6		39

Bankcard and other revolving plans	—		51	0.3		3

Total consumer loans	3.7		14	2.7		32
Total weighted average financial impact	0.7		12	0.6		10

1 Primarily relates to a small number of loans within each respective loan class.

Loan modifications to borrowers experiencing financial difficulty during the twelve months ended December 31, 2025 and 2024, resulted in no principal forgiveness in 2025 and less than $1 million of principal forgiveness in 2024 for the total loan portfolio.

The following schedule presents the aging of loans to borrowers experiencing financial difficulty that were modified on or after January 1, 2025 through December 31, 2025, categorized by portfolio segment and loan class.


	December 31, 2025
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total amortized cost of loans

Commercial:
Commercial and industrial	$	162	$	21	$	—	$	21	$	183
Owner-occupied	24		5		1		6		30


Total commercial	186		26		1		27		213
Commercial real estate:
Term	409		—		5		5		414
Construction and land development	27		—		—		—		27
Total commercial real estate	436		—		5		5		441
Consumer:
1-4 family residential	7		—		—		—		7
Home equity credit line	1		—		—		—		1

Bankcard and other revolving plans	1		—		—		—		1

Total consumer loans	9		—		—		—		9
Total	$	631	$	26	$	6	$	32	$	663

The following schedule presents the aging of loans to borrowers experiencing financial difficulty that were modified on or after January 1, 2024 through December 31, 2024, categorized by portfolio segment and loan class.


	December 31, 2024
(In millions)	Current		30-89 days past due		90+ days past due		Total past due		Total amortized cost of loans

Commercial:
Commercial and industrial	$	102	$	2	$	1	$	3	$	105
Owner-occupied	11		1		—		1		12
Municipal	3		—		8		8		11

Total commercial	116		3		9		12		128
Commercial real estate:
Term	289		—		—		—		289
Construction and land development	43		—		—		—		43
Total commercial real estate	332		—		—		—		332
Consumer:
1-4 family residential	6		1		—		1		7
Home equity credit line	2		—		—		—		2

Bankcard and other revolving plans	1		—		—		—		1

Total consumer loans	9		1		—		1		10
Total	$	457	$	4	$	9	$	13	$	470

Collateral-dependent Loans

When a loan is individually evaluated for expected credit losses, we estimate a specific reserve for the loan based on (1) the projected present value of the loan’s future cash flows discounted at the loan’s effective interest rate, (2) the observable market price of the loan, or (3) the fair value of the loan’s underlying collateral.

Select information on loans for which the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the underlying collateral, including the type of collateral and the extent to which the collateral secures the loans, is summarized as follows:


	December 31, 2025
(Dollar amounts in millions)	Amortized Cost		Major Types of Collateral	Weighted Average LTV1
Commercial:
Commercial and industrial	$	3	Single family residential	71%
Owner-occupied	23		Agriculture production and industrial buildings	67%
Municipal	2		Multifamily apartments	93%


Commercial real estate:
Term	37		Office building	98%


Consumer:
1-4 family residential	5		Single family residential	62%





Total	$	70


	December 31, 2024
(Dollar amounts in millions)	Amortized Cost		Major Types of Collateral	Weighted Average LTV1
Commercial:

Owner-occupied	$	6	Retail facility	64%
Municipal	5		Multifamily apartments	174%


Commercial real estate:
Term	49		Office building	98%


Consumer:
1-4 family residential	3		Single family residential	29%
Home equity credit line	3		Single family residential	38%




Total	$	66

1 The fair value is based on the most recent appraisal or other collateral evaluation.

Foreclosed Residential Real Estate

The balance of foreclosed residential real estate property was $1 million at December 31, 2025, compared with less than $1 million at December 31, 2024. The amortized cost basis of consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure was $20 million and $14 million for the same periods, respectively.