v3.26.1
Loans and asset quality
 6 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans and asset quality Loans and asset quality
Loans

The table below provides the details of our loan portfolio.

LoansJune 30, 2026Dec. 31, 2025
(in millions)
Commercial$1,802 $1,748 
Commercial real estate6,719 6,710 
Financial institutions15,297 13,309 
Wealth management loans9,745 9,520 
Wealth management mortgages8,721 8,586 
Other residential mortgages1,665 1,820 
Capital call financing5,532 5,336 
Other4,934 4,533 
Overdrafts4,128 2,800 
Margin loans30,198 26,253 
Total loans (a)
$88,741 $80,615 
(a)    Net of unearned income of $72 million at June 30, 2026 and $86 million at Dec. 31, 2025, primarily related to other loans.


We disclose information related to our loans and asset quality by the class of the financing receivable in the following tables.
Allowance for credit losses

Activity in the allowance for credit losses on loans and lending-related commitments is presented below. This does not include activity in the allowance for credit losses related to other financial instruments, including cash and due from banks, interest-bearing deposits with banks, federal funds sold and securities purchased under resale agreements, held-to-maturity securities, available-for-sale securities and accounts receivable.

Allowance for credit losses activity for the quarter ended June 30, 2026
Wealth management loansWealth management mortgagesOther residential mortgagesCapital call financing
(in millions)CommercialCommercial
real estate		Financial
institutions		Total
Beginning balance$12 $248 $32 $8 $8 $4 $10 $322 
Charge-offs— — — — — — — — 
Recoveries— — — — — 1 — 1 
Net (charge-offs) recoveries— — — — — 1 — 1 
Provision (a)
3 (26)10 — — — 2 (11)
Ending balance$15 $222 $42 $8 $8 $5 $12 $312 
Allowance for:
Loan losses$3 $170 $22 $6 $7 $5 $9 $222 
Lending-related commitments12 52 20 2 1 — 3 90 
Individually evaluated for impairment:
Loan balance (b)
$— $50 $— $— $7 $2 $— $59 
Allowance for loan losses— 6 — — — — — 6 
(a)    Does not include the provision for credit losses related to other financial instruments of $3 million for the quarter ended June 30, 2026.
(b)    Includes collateral-dependent loans of $59 million with $75 million of collateral value.


Allowance for credit losses activity for the quarter ended June 30, 2025
Wealth management loansWealth management mortgagesOther
residential
mortgages		Capital call financingTotal
(in millions)CommercialCommercial
real estate		Financial
institutions
Beginning balance$15 $326 $16 $1 $6 $2 $4 $370 
Charge-offs— (10)— — — — — (10)
Recoveries— 5 — — — — — 5 
Net (charge-offs) recoveries— (5)— — — — — (5)
Provision (a)
(2)(30)9 — — — 3 (20)
Ending balance$13 $291 $25 $1 $6 $2 $7 $345 
Allowance for:
Loan losses$2 $245 $13 $1 $6 $2 $6 $275 
Lending-related commitments11 46 12 — — — 1 70 
Individually evaluated for impairment:
Loan balance (b)
$— $198 $— $— $1 $— $— $199 
Allowance for loan losses— 52 — — — — — 52 
(a)    Does not include the provision for credit losses related to other financial instruments of $3 million for the quarter ended June 30, 2025.
(b)    Includes collateral-dependent loans of $199 million with $169 million of collateral value.


Allowance for credit losses activity for the six months ended June 30, 2026Other
residential
mortgages		Capital call financingTotal
(in millions)CommercialCommercial
real estate		Financial
institutions		Wealth management loansWealth management mortgages
Beginning balance$10 $262 $25 $5 $7 $2 $8 $319 
Charge-offs— — — — — — — — 
Recoveries— 11 — — — 1 — 12 
Net (charge-offs) recoveries— 11 — — — 1 — 12 
Provision (a)
5 (51)17 3 1 2 4 (19)
Ending balance$15 $222 $42 $8 $8 $5 $12 $312 
(a)    Does not include provision for credit losses related to other financial instruments of $4 million for the six months ended June 30, 2026.
Allowance for credit losses activity for the six months ended June 30, 2025Other
residential
mortgages		Capital call financingTotal
(in millions)CommercialCommercial
real estate		Financial
institutions		Wealth management loansWealth management mortgages
Beginning balance$20 $315 $19 $1 $6 $2 $3 $366 
Charge-offs— (20)— — — — — (20)
Recoveries— 5 — — — 1 — 6 
Net (charge-offs) recoveries— (15)— — — 1 — (14)
Provision (a)
(7)(9)6 — — (1)4 (7)
Ending balance$13 $291 $25 $1 $6 $2 $7 $345 
(a)    Does not include provision for credit losses related to other financial instruments of $8 million for the six months ended June 30, 2025.
Nonperforming assets

The table below presents our nonperforming assets.

Nonperforming assetsJune 30, 2026Dec. 31, 2025
Recorded investmentRecorded investment
With an
allowance		Without an allowanceWith an
allowance		Without an allowance
(in millions)TotalTotal
Nonperforming loans:
Wealth management mortgages$9 $7 $16 $9 $8 $17 
Other residential mortgages13 2 15 16 1 17 
Commercial real estate— — — 106 — 106 
Total nonperforming loans22 9 31 131 9 140 
Other assets owned— 2 2 — 3 3 
Total nonperforming assets$22 $11 $33 $131 $12 $143 
Past due loans

The table below presents our past due loans.

Past due loans and still accruing interestJune 30, 2026Dec. 31, 2025
Days past dueTotal
past due		Days past dueTotal
past due
(in millions)30-5960-89≥9030-5960-89≥90
Wealth management loans$53 $1 $— $54 $63 $8 $— $71 
Other residential mortgages16 2 — 18 23 4 — 27 
Wealth management mortgages— 5 — 5 49 2 — 51 
Commercial real estate3 — — 3 7 3 — 10 
Total past due loans$72 $8 $— $80 $142 $17 $— $159 
Loan modifications

Modified loans are evaluated to determine whether a modification or restructuring with a borrower experiencing financial difficulty results in principal forgiveness, an interest rate reduction, an other-than-insignificant payment delay, or a term extension. The modification could result in a new loan or a continuation of the existing loan.
In the second quarter of 2026, we modified two commercial real estate loans, with an aggregate recorded investment of $67 million and unfunded lending commitment of less than $1 million, by extending the maturity date. At June 30, 2026, none of the loans that were modified in the previous 12 months are past due by more than 90 days.

There were no loan modifications in the second quarter of 2025.
Credit quality indicators

Our credit strategy is to focus on investment-grade clients that are active users of our non-credit services. Each customer is assigned an internal credit rating, which is mapped to an external rating agency grade equivalent, if possible, based upon a number of dimensions, which are continually evaluated and may change over time.

The tables below provide information about the credit profile of the loan portfolio by the period of origination.

Credit profile of the loan portfolioJune 30, 2026
Revolving loans
Originated, at amortized costAmortized costConverted to term loans – Amortized costAccrued
interest
receivable
(in millions)YTD262025202420232022Prior to 2022
Total (a)
Commercial:
Investment grade$6 $49 $54 $32 $16 $105 $1,462 $— $1,724 
Non-investment grade17 — 11 — — — 50 — 78 
Total commercial23 49 65 32 16 105 1,512 — 1,802 $1 
Commercial real estate:
Investment grade615 932 498 446 548 1,384 138 — 4,561 
Non-investment grade83 272 88 211 689 731 84 — 2,158 
Total commercial real estate698 1,204 586 657 1,237 2,115 222 — 6,719 26 
Financial institutions:
Investment grade279 491 205 75 10 — 12,564 — 13,624 
Non-investment grade96 36 — — — — 1,541 — 1,673 
Total financial institutions375 527 205 75 10 — 14,105 — 15,297 87 
Wealth management loans:
Investment grade4 11 — 28 26 141 9,131 175 9,516 
Non-investment grade50 — — — — — 179 — 229 
Total wealth management loans54 11 — 28 26 141 9,310 175 9,745 51 
Wealth management mortgages363 599 428 652 1,440 5,230 9 — 8,721 23 
Other residential mortgages286 427 96 122 460 274 — — 1,665 10 
Capital call financing2 231 130 — — — 5,169 — 5,532 21 
Other loans— — — — — 89 4,845 — 4,934 8 
Margin loans14,382 — — — — — 15,816 — 30,198 45 
Total loans (b)
$16,183 $3,048 $1,510 $1,566 $3,189 $7,954 $50,988 $175 $84,613 $272 
(a)    Excludes overdrafts of $4,128 million. Overdrafts occur on a daily basis primarily in the custody and securities clearance business and are generally repaid within two business days.
(b)    There were no gross write-offs in the first six months of 2026.
Credit profile of the loan portfolioDec. 31, 2025
Revolving loans
Originated, at amortized costAmortized costConverted to term loans – Amortized costAccrued
interest
receivable
(in millions)20252024202320222021Prior to 2021
Total (a)
Commercial:
Investment grade$55 $55 $45 $16 $49 $104 $1,357 $— $1,681 
Non-investment grade— 11 — — — — 56 — 67 
Total commercial55 66 45 16 49 104 1,413 — 1,748 $1 
Commercial real estate: (b)
Investment grade989 412 499 617 343 1,280 156 — 4,296 
Non-investment grade262 287 166 707 219 720 53 — 2,414 
Total commercial real estate1,251 699 665 1,324 562 2,000 209 — 6,710 25 
Financial institutions:
Investment grade686 373 75 10 24 — 10,552 — 11,720 
Non-investment grade119 — — — — — 1,470 — 1,589 
Total financial institutions805 373 75 10 24 — 12,022 — 13,309 112 
Wealth management loans:
Investment grade14 — 28 27 52 93 9,003 175 9,392 
Non-investment grade— — — — — — 128 — 128 
Total wealth management loans14 — 28 27 52 93 9,131 175 9,520 49 
Wealth management mortgages (b)
633 270 647 1,486 1,724 3,812 14 — 8,586 24 
Other residential mortgages (b)
416 324 242 492 171 175 — — 1,820 6 
Capital call financing230 130 — — — — 4,976 — 5,336 24 
Other loans— — — — 7 85 4,441 — 4,533 8 
Margin loans12,457 — — — — — 13,796 — 26,253 37 
Total loans$15,861 $1,862 $1,702 $3,355 $2,589 $6,269 $46,002 $175 $77,815 $286 
(a)    Excludes overdrafts of $2,800 million. Overdrafts occur on a daily basis primarily in the custody and securities clearance business and are generally repaid within two business days.
(b)    The gross write-offs related to commercial real estate loans were $25 million, wealth management mortgage loans were $1 million and other residential mortgage loans were less than $1 million in 2025.


Commercial loans

The commercial loan portfolio is divided into investment grade and non-investment grade categories based on the assigned internal credit ratings, which are generally consistent with those of the public rating agencies. Customers with ratings consistent with BBB- (S&P)/Baa3 (Moody’s) or better are considered to be investment grade. Those clients with ratings lower than this threshold are considered to be non-investment grade.

Commercial real estate

Our income-producing commercial real estate facilities are focused on experienced owners and are structured with moderate leverage based on existing cash flows. Our commercial real estate lending activities also include construction and renovation facilities.

Financial institutions

Financial institution exposures are high quality, with 96% of the exposures meeting the investment grade
equivalent criteria of our internal credit rating classification at June 30, 2026. In addition, 59% of the financial institutions exposure is secured. For example, securities industry clients and asset managers often borrow against marketable securities held in custody. The exposure to financial institutions is generally short term, with 75% expiring within one year.

Wealth management loans

Wealth management loans are not typically rated by external rating agencies. A majority of the wealth management loans are secured by the customers’ investment management accounts or custody accounts. Eligible assets pledged for these loans are typically investment grade fixed-income securities, equities and/or mutual funds. Internal ratings for this portion of the wealth management loan portfolio, therefore, would equate to investment grade external ratings. Wealth management loans are provided to select customers based on the pledge of other types of assets. For the loans collateralized by other assets, the credit quality of the obligor is carefully analyzed,
but we do not consider this portion of our wealth management loan portfolio to be investment grade.

Wealth management mortgages

Credit quality indicators for wealth management mortgages are not correlated to external ratings. Wealth management mortgages are typically loans to high-net-worth individuals, which are secured primarily by residential property. These loans are primarily interest-only, adjustable-rate mortgages with a weighted-average loan-to-value ratio of 62% at origination. The delinquency rate is a key indicator of credit quality in our wealth management portfolio. At June 30, 2026, less than 1% of the mortgages were past due.

At June 30, 2026, the wealth management mortgage portfolio consisted of the following geographic concentrations: California – 20%; New York – 14%; Florida – 12%; Massachusetts – 8%; and other – 46%.

Other residential mortgages

The other residential mortgages portfolio primarily consists of 1-4 family residential mortgage loans and totaled $1.7 billion at June 30, 2026 and $1.8 billion at Dec. 31, 2025. These loans are not typically correlated to external ratings.

Capital call financing

Capital call financing includes loans to private equity funds that are secured by the fund investors’ capital commitments and the funds’ right to call capital.
Other loans

Other loans primarily include loans to consumers that are fully collateralized with equities, mutual funds and fixed-income securities.

Margin loans

We had $30.2 billion of secured margin loans at June 30, 2026, compared with $26.3 billion at Dec. 31, 2025. Margin loans are collateralized with marketable securities, and borrowers are required to maintain a daily collateral margin in excess of 100% of the value of the loan. We have rarely suffered a loss on these types of loans.

Overdrafts

Overdrafts primarily relate to custody and securities clearance clients and totaled $4.1 billion at June 30, 2026 and $2.8 billion at Dec. 31, 2025. Overdrafts occur on a daily basis and are generally repaid within two business days.

Reverse repurchase agreements
Reverse repurchase agreements at June 30, 2026 and Dec. 31, 2025 were fully secured with high-quality collateral. As a result, there was no allowance for credit losses related to these assets at June 30, 2026 and Dec. 31, 2025.