ALLOWANCE FOR CREDIT LOSSES

9 Months Ended

Sep. 30, 2022

ALLOWANCE FOR CREDIT LOSSES

Allowance for Credit Losses - Roll-forward

The following tables present ACL activity by portfolio segment for the three-month and nine-month periods ended September 30, 2022 and 2021.


(dollar amounts in millions)	Commercial		Consumer		Total
Three-month period ended September 30, 2022:
ALLL balance, beginning of period	$	1,342	$	732	$	2,074

Loan and lease charge-offs	(35)		(48)		(83)
Recoveries of loans and leases previously charged-off	20		19		39
Provision (benefit) for loan and lease losses	87		(7)		80


ALLL balance, end of period	$	1,414	$	696	$	2,110
AULC balance, beginning of period	$	53	$	41	$	94

Provision (benefit) for unfunded lending commitments	8		18		26


AULC balance, end of period	$	61	$	59	$	120
ACL balance, end of period	$	1,475	$	755	$	2,230
Nine-month period ended September 30, 2022:
ALLL balance, beginning of period	$	1,462	$	568	$	2,030

Loan and lease charge-offs	(77)		(139)		(216)
Recoveries of loans and leases previously charged-off	83		62		145
Provision for loan and lease losses	(54)		205		151


ALLL balance, end of period	$	1,414	$	696	$	2,110
AULC balance, beginning of period	$	41	$	36	$	77

Provision for unfunded lending commitments	20		23		43


AULC balance, end of period	$	61	$	59	$	120
ACL balance, end of period	$	1,475	$	755	$	2,230



(dollar amounts in millions)	Commercial		Consumer		Total
Three-month period ended September 30, 2021:
ALLL balance, beginning of period	$	1,618	$	600	$	2,218

Loan and lease charge-offs	(74)		(32)		(106)
Recoveries of loans and leases previously charged-off	27		24		51
Provision (benefit) for loan and lease losses	(22)		(34)		(56)


ALLL balance, end of period	$	1,549	$	558	$	2,107
AULC balance, beginning of period	$	76	$	28	$	104

Provision (benefit) for unfunded lending commitments	2		(8)		(6)


AULC balance, end of period	$	78	$	20	$	98
ACL balance, end of period	$	1,627	$	578	$	2,205
Nine-month period ended September 30, 2021:
ALLL balance, beginning of period	$	1,236	$	578	$	1,814

Loan and lease charge-offs	(213)		(90)		(303)
Recoveries of loans and leases previously charged-off	58		64		122
Provision (benefit) for loan and lease losses (1)	94		(52)		42

Allowance on PCD loans and leases at acquisition	374		58		432
ALLL balance, end of period	$	1,549	$	558	$	2,107
AULC balance, beginning of period	$	34	$	18	$	52

Provision for unfunded lending commitments (2)	45		2		47

Unfunded lending commitment losses	(1)		—		(1)
AULC balance, end of period	$	78	$	20	$	98
ACL balance, end of period	$	1,627	$	578	$	2,205

(1)Includes $234 million of TCF acquisition initial provision for credit losses related to non-PCD loans and leases.

(2)Includes $60 million from acquired unfunded lending commitments.

At September 30, 2022, the ACL was $2.2 billion, an increase of $123 million from the December 31, 2021 balance of $2.1 billion.

The economic scenarios used in the September 30, 2022 ACL determination contained judgmental assumptions due to elevated levels of economic uncertainty associated with geopolitical instability, high inflation readings, and the expected path of interest rate increases by the Fed. Given the uncertainty associated with key economic scenario assumptions, the September 30, 2022 ACL included a general reserve that consists of various risk profile components to capture uncertainty not addressed within the quantitative transaction reserve.