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Loans and Related Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2023

Summary Of The Classification Of Portfolio Segments


Commercial						Consumer

• Commercial and industrial						• Residential real estate
• Commercial real estate						• Home equity
• Equipment lease financing						• Automobile
						• Credit card
						• Education
						• Other consumer

Analysis of Loan Portfolio

Table 41 presents the composition and delinquency status of our loan portfolio at September 30, 2023 and December 31, 2022. Loan delinquencies include government insured or guaranteed loans and loans accounted for under the fair value option.

Table 41: Analysis of Loan Portfolio (a) (b) (c)


	Accruing
Dollars in millions	Current or Less Than 30 Days Past Due			30-59 Days Past Due			60-89 Days Past Due			90 Days or More Past Due			Total Past Due (d)				Nonperforming Loans			Fair Value Option Nonaccrual Loans (e)			Total Loans (f)(g)
September 30, 2023
Commercial
Commercial and industrial	$	173,487		$	84		$	32		$	102		$	218			$	458					$	174,163
Commercial real estate	35,049			2			2						4				723						35,776
Equipment lease financing	6,432			25			6						31				30						6,493
Total commercial	214,968			111			40			102			253				1,211						216,432
Consumer
Residential real estate	45,958			257			103			182			542			(d)	330			$	529		47,359
Home equity	25,562			59			22						81				446			70			26,159
Automobile	14,718			83			19			6			108				114						14,940
Credit card	6,881			50			38			80			168				11						7,060
Education	1,918			32			22			48			102			(d)							2,020
Other consumer	4,402			15			9			9			33				11						4,446
Total consumer	99,439			496			213			325			1,034				912			599			101,984
Total	$	314,407		$	607		$	253		$	427		$	1,287			$	2,123		$	599		$	318,416
Percentage of total loans	98.74		%	0.19		%	0.08		%	0.13		%	0.40		%		0.67		%	0.19		%	100.00		%
December 31, 2022
Commercial
Commercial and industrial	$	181,223		$	169		$	27		$	137		$	333			$	663					$	182,219
Commercial real estate	36,104			19			4						23				189						36,316
Equipment lease financing	6,484			20			4						24				6						6,514
Total commercial	223,811			208			35			137			380				858						225,049
Consumer
Residential real estate	44,306			281			112			199			592			(d)	424			$	567		45,889
Home equity	25,305			53			20						73				526			79			25,983
Automobile	14,543			106			25			7			138				155						14,836
Credit card	6,906			50			35			70			155				8						7,069
Education	2,058			34			22			59			115			(d)							2,173
Other consumer	4,975			15			12			10			37				14						5,026
Total consumer	98,093			539			226			345			1,110				1,127			646			100,976
Total	$	321,904		$	747		$	261		$	482		$	1,490			$	1,985		$	646		$	326,025
Percentage of total loans	98.73		%	0.23		%	0.08		%	0.15		%	0.46		%		0.61		%	0.20		%	100.00		%

(a)Amounts in table represent loans held for investment and do not include any associated ALLL.

(b)The CARES Act credit reporting rules expired in the third quarter of 2023 and as such, delinquency status at September 30, 2023 is being reported for all loans based on the contractual terms of the loan. Amounts as of December 31, 2022 continue to be presented in accordance with the credit reporting rules under the CARES Act, which required certain loans modified due to pandemic related hardships to not be reported as past due based on the contractual terms of the loan, even when borrowers may not have made payments on their loans during the modification period.

(c)The accrued interest associated with our loan portfolio totaled $1.4 billion and $1.2 billion at September 30, 2023 and December 31, 2022, respectively. These amounts are included in Other assets on the Consolidated Balance Sheet.

(d)Past due loan amounts include government insured or guaranteed Residential real estate loans and Education loans totaling $0.3 billion and $0.1 billion at both September 30, 2023 and December 31, 2022.

(e)Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policy criteria. Given that these loans are not accounted for at amortized cost, they have been excluded from the nonperforming loan population.

(f)Includes unearned income, unamortized deferred fees and costs on originated loans and premiums or discounts on purchased loans totaling $0.8 billion and $0.9 billion at September 30, 2023 and December 31, 2022, respectively.

(g)Collateral dependent loans totaled $1.1 billion and $1.3 billion at September 30, 2023 and December 31, 2022, respectively.

Nonperforming Assets

The following table presents our nonperforming assets as of September 30, 2023 and December 31, 2022, respectively:

Table 42: Nonperforming Assets


Dollars in millions	September 30, 2023			December 31, 2022
Nonperforming loans (a)
Commercial	$	1,211		$	858
Consumer (b)	912			1,127
Total nonperforming loans (c)	2,123			1,985
OREO and foreclosed assets	35			34
Total nonperforming assets	$	2,158		$	2,019
Nonperforming loans to total loans	0.67		%	0.61		%
Nonperforming assets to total loans, OREO and foreclosed assets	0.68		%	0.62		%
Nonperforming assets to total assets	0.39		%	0.36		%

(a)In connection with the adoption of ASU 2022-02, nonperforming loans as of September 30, 2023 include certain loans where terms were modified as a result of a borrower’s financial difficulty. Prior period amounts included nonperforming TDRs, for which accounting guidance was eliminated effective January 1, 2023. See Note 1 Accounting Policies and the Loan Modifications to Borrowers Experiencing Financial Difficulty section of this Note 3 for more information on our adoption of this ASU.

(b)Excludes most unsecured consumer loans and lines of credit, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.

(c)Nonperforming loans for which there is no related ALLL totaled $0.5 billion at September 30, 2023 and primarily include loans with a fair value of collateral that exceeds the amortized cost basis. The comparable amount at December 31, 2022 was $0.7 billion.

Credit Quality Indicators By Loan Class

The following table presents credit quality indicators for our commercial loan classes:

Table 43: Commercial Credit Quality Indicators (a)


	Term Loans by Origination Year
September 30, 2023 In millions	2023			2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Commercial and industrial
Pass Rated	$	18,791		$	29,249	$	8,476	$	6,061	$	4,654	$	12,952	$	84,123	$	603	$	164,909
Criticized	537			1,916		743		355		249		710		4,705		39		9,254
Total commercial and industrial loans	$	19,328		$	31,165	$	9,219	$	6,416	$	4,903	$	13,662	$	88,828	$	642	$	174,163
Gross charge-offs (b)	$	17	(c)	$	19	$	27	$	7	$	2	$	19	$	90	$	11	$	192
Commercial real estate
Pass Rated	$	3,592		$	9,008	$	3,282	$	2,376	$	4,918	$	8,062	$	342			$	31,580
Criticized	109			685		470		370		664		1,880		18				4,196
Total commercial real estate loans	$	3,701		$	9,693	$	3,752	$	2,746	$	5,582	$	9,942	$	360			$	35,776
Gross charge-offs (b)										$	29	$	95					$	124
Equipment lease financing
Pass Rated	$	1,126		$	1,507	$	779	$	761	$	506	$	1,469					$	6,148
Criticized	68			79		56		50		38		54						345
Total equipment lease financing loans	$	1,194		$	1,586	$	835	$	811	$	544	$	1,523					$	6,493
Gross charge-offs (b)	$	1		$	2	$	2	$	4	$	1	$	1					$	11
Total commercial loans	$	24,223		$	42,444	$	13,806	$	9,973	$	11,029	$	25,127	$	89,188	$	642	$	216,432
Total commercial gross charge-offs	$	18		$	21	$	29	$	11	$	32	$	115	$	90	$	11	$	327


	Term Loans by Origination Year
December 31, 2022 In millions	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Commercial and industrial
Pass Rated	$	41,685	$	12,493	$	8,134	$	6,261	$	4,209	$	13,165	$	89,384	$	69	$	175,400
Criticized	1,259		423		277		299		297		551		3,682		31		6,819
Total commercial and industrial	42,944		12,916		8,411		6,560		4,506		13,716		93,066		100		182,219
Commercial real estate
Pass Rated	8,835		4,153		3,266		5,511		3,005		7,454		450				32,674
Criticized	348		37		322		758		807		1,367		3				3,642
Total commercial real estate	9,183		4,190		3,588		6,269		3,812		8,821		453				36,316
Equipment lease financing
Pass Rated	1,797		962		942		670		410		1,495						6,276
Criticized	60		55		56		39		17		11						238
Total equipment lease financing	1,857		1,017		998		709		427		1,506						6,514
Total commercial	$	53,984	$	18,123	$	12,997	$	13,538	$	8,745	$	24,043	$	93,519	$	100	$	225,049

(a)Loans in our commercial portfolio are classified as Pass Rated or Criticized based on the regulatory definitions, which are driven by the PD and LGD ratings that we assign. The Criticized classification includes loans that were rated special mention, substandard or doubtful as of September 30, 2023 and December 31, 2022.

(b)Gross charge-offs are presented on a year-to-date basis, as of the reporting date.

(c)Includes charge-offs of deposit overdrafts.

Residential Real Estate and Home Equity

The following table presents credit quality indicators for our residential real estate and home equity loan classes:

Table 44: Credit Quality Indicators for Residential Real Estate and Home Equity Loan Classes


	Term Loans by Origination Year
September 30, 2023 In millions	2023		2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Residential real estate
Current estimated LTV ratios
Greater than 100%	$	34	$	141	$	103	$	33	$	8	$	34					$	353
Greater than or equal to 80% to 100%	1,770		3,372		1,044		207		69		105						6,567
Less than 80%	2,577		6,661		14,517		6,639		2,196		7,129						39,719
No LTV available	52				13						3						68
Government insured or guaranteed loans	9		18		18		66		37		504						652
Total residential real estate loans	$	4,442	$	10,192	$	15,695	$	6,945	$	2,310	$	7,775					$	47,359
Updated FICO scores
Greater than or equal to 780	$	2,418	$	7,728	$	12,239	$	5,060	$	1,538	$	4,099					$	33,082
720 to 779	1,495		1,857		2,547		1,214		414		1,439						8,966
660 to 719	302		514		670		322		176		782						2,766
Less than 660	86		64		129		110		87		676						1,152
No FICO score available	132		11		92		173		58		275						741
Government insured or guaranteed loans	9		18		18		66		37		504						652
Total residential real estate loans	$	4,442	$	10,192	$	15,695	$	6,945	$	2,310	$	7,775					$	47,359
Gross charge-offs (a)			$	1			$	1			$	4					$	6
Home equity
Current estimated LTV ratios
Greater than 100%					$	2	$	10	$	5	$	13	$	294	$	285	$	609
Greater than or equal to 80% to 100%					5		39		21		27		1,266		1,949		3,307
Less than 80%					161		1,922		871		2,683		6,901		9,705		22,243
Total home equity loans					$	168	$	1,971	$	897	$	2,723	$	8,461	$	11,939	$	26,159
Updated FICO scores
Greater than or equal to 780					$	107	$	1,283	$	503	$	1,685	$	4,700	$	6,039	$	14,317
720 to 779					38		443		223		525		2,203		3,193		6,625
660 to 719					18		185		117		286		1,210		1,756		3,572
Less than 660					5		58		53		219		338		895		1,568
No FICO score available							2		1		8		10		56		77
Total home equity loans					$	168	$	1,971	$	897	$	2,723	$	8,461	$	11,939	$	26,159
Gross charge-offs (a)											$	2	$	4	$	9	$	15


(Continued from previous page)	Term Loans by Origination Year
December 31, 2022 In millions	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Residential real estate
Current estimated LTV ratios
Greater than 100%	$	4	$	52	$	20	$	10	$	4	$	41					$	131
Greater than or equal to 80% to 100%	1,185		678		232		84		24		92						2,295
Less than 80%	9,396		15,844		7,074		2,346		822		7,220						42,702
No LTV available			61				3				4						68
Government insured or guaranteed loans	9		15		66		39		28		536						693
Total residential real estate	$	10,594	$	16,650	$	7,392	$	2,482	$	878	$	7,893					$	45,889
Updated FICO scores
Greater than or equal to 780	$	6,825	$	12,596	$	5,276	$	1,623	$	463	$	4,027					$	30,810
720 to 779	3,172		3,024		1,369		476		180		1,457						9,678
660 to 719	514		744		378		189		98		796						2,719
Less than 660	63		108		110		88		71		740						1,180
No FICO score available	11		163		193		67		38		337						809
Government insured or guaranteed loans	9		15		66		39		28		536						693
Total residential real estate	$	10,594	$	16,650	$	7,392	$	2,482	$	878	$	7,893					$	45,889
Home equity
Current estimated LTV ratios
Greater than 100%			$	4	$	14	$	9	$	2	$	15	$	268	$	137	$	449
Greater than or equal to 80% to 100%			4		51		27		4		31		854		1,149		2,120
Less than 80%			172		2,078		961		285		2,851		7,780		9,287		23,414
Total home equity			$	180	$	2,143	$	997	$	291	$	2,897	$	8,902	$	10,573	$	25,983
Updated FICO scores
Greater than or equal to 780			$	110	$	1,357	$	554	$	155	$	1,791	$	5,093	$	5,545	$	14,605
720 to 779			47		515		248		64		567		2,305		2,843		6,589
660 to 719			19		211		140		42		288		1,146		1,449		3,295
Less than 660			4		57		54		29		242		342		671		1,399
No FICO score available					3		1		1		9		16		65		95
Total home equity			$	180	$	2,143	$	997	$	291	$	2,897	$	8,902	$	10,573	$	25,983

(a)Gross charge-offs are presented on a year-to-date basis, as of the reporting date.

Automobile, Credit Card, Education and Other Consumer

The following table presents credit quality indicators for our automobile, credit card, education and other consumer loan classes:

Table 45: Credit Quality Indicators for Automobile, Credit Card, Education and Other Consumer Loan Classes


	Term Loans by Origination Year
September 30, 2023 In millions	2023			2022		2021		2020		2019		Prior		Revolving Loans		Revolving Loans Converted to Term		Total
Automobile
Updated FICO scores
Greater than or equal to 780	$	2,221		$	1,776	$	1,653	$	624	$	456	$	127					$	6,857
720 to 779	1,454			1,266		892		356		309		115						4,392
660 to 719	804			677		456		218		228		100						2,483
Less than 660	168			261		248		165		230		136						1,208

Total automobile loans	$	4,647		$	3,980	$	3,249	$	1,363	$	1,223	$	478					$	14,940
Gross charge-offs (a)				$	18	$	18	$	13	$	23	$	19					$	91
Credit card
Updated FICO scores
Greater than or equal to 780														$	1,920	$	1	$	1,921
720 to 779														1,967		5		1,972
660 to 719														1,982		13		1,995
Less than 660														1,016		44		1,060
No FICO score available or required (b)														109		3		112
Total credit card loans														$	6,994	$	66	$	7,060
Gross charge-offs (a)														$	212	$	20	$	232
Education
Updated FICO scores
Greater than or equal to 780	$	7		$	25	$	8	$	11	$	19	$	133					$	203
720 to 779	20			45		25		25		32		182						329
660 to 719	19			45		27		23		29		156						299
Less than 660	9			37		16		8		7		94						171
No FICO score available or required (b)	20			13		10		7		2		5						57
Total loans using FICO credit metric	75			165		86		74		89		570						1,059
Other internal credit metrics												961						961
Total education loans	$	75		$	165	$	86	$	74	$	89	$	1,531					$	2,020
Gross charge-offs (a)						$	1	$	1	$	1	$	10					$	13
Other consumer
Updated FICO scores
Greater than or equal to 780	$	195		$	151	$	57	$	27	$	20	$	14	$	40	$	2	$	506
720 to 779	244			189		68		32		25		14		81		1		654
660 to 719	117			155		68		35		29		14		88		2		508
Less than 660	11			51		34		21		19		10		43		1		190

Total loans using FICO credit metric	567			546		227		115		93		52		252		6		1,858
Other internal credit metrics	32			107		32		73		72		23		2,239		10		2,588
Total other consumer loans	$	599		$	653	$	259	$	188	$	165	$	75	$	2,491	$	16	$	4,446
Gross charge-offs (a)	$	54	(c)	$	16	$	14	$	12	$	12	$	7	$	8	$	1	$	124


(Continued from previous page)	Term Loans by Origination Year
December 31, 2022 In millions	2022		2021		2020		2019		2018		Prior		Revolving Loans		Revolving Loans Converted to Term		Total Loans
Updated FICO Scores
Automobile
Greater than or equal to 780	$	2,390	$	2,162	$	922	$	760	$	241	$	75					$	6,550
720 to 779	1,702		1,312		561		538		222		69						4,404
660 to 719	854		660		341		401		187		56						2,499
Less than 660	193		290		230		368		228		74						1,383
Total automobile	$	5,139	$	4,424	$	2,054	$	2,067	$	878	$	274					$	14,836
Credit card
Greater than or equal to 780													$	1,954	$	2	$	1,956
720 to 779													1,994		6		2,000
660 to 719													1,957		13		1,970
Less than 660													1,001		35		1,036
No FICO score available or required (b)													104		3		107
Total credit card													$	7,010	$	59	$	7,069
Education
Greater than or equal to 780	$	42	$	53	$	48	$	61	$	51	$	357					$	612
720 to 779	39		27		24		30		24		143						287
660 to 719	21		8		8		9		8		59						113
Less than 660	4		1		1		2		2		24						34
No FICO score available or required (b)	20		8		7		3				1						39
Education loans using FICO credit metric	126		97		88		105		85		584						1,085
Other internal credit metrics											1,088						1,088
Total education	$	126	$	97	$	88	$	105	$	85	$	1,672					$	2,173
Other consumer
Greater than or equal to 780	$	224	$	97	$	53	$	46	$	14	$	18	$	47	$	2	$	501
720 to 779	302		122		68		62		20		15		89		2		680
660 to 719	229		110		68		66		28		8		95		2		606
Less than 660	32		48		37		40		20		6		44		2		229
Other consumer loans using FICO credit metric	787		377		226		214		82		47		275		8		2,016
Other internal credit metrics	125		43		40		34		7		29		2,720		12		3,010
Total other consumer	$	912	$	420	$	266	$	248	$	89	$	76	$	2,995	$	20	$	5,026

(a)Gross charge-offs are presented on a year-to-date basis, as of the reporting date.

(b)Loans with no FICO score available or required generally refers to new accounts issued to borrowers with limited credit history, accounts for which we cannot obtain an updated FICO score (e.g., recent profile changes), cards issued with a business name and/or cards secured by collateral. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.

(c)Includes charge-offs of deposit overdrafts.

Loan Modifications to Borrowers Experiencing Financial Difficulty

On January 1, 2023, we adopted ASU 2022-02, which eliminates the accounting guidance for TDRs and enhances the disclosure requirements for certain loan modifications when a borrower is experiencing financial difficulty (FDMs).

FDMs occur as a result of our loss mitigation activities. A variety of solutions are offered to borrowers, including loan modifications that may result in principal forgiveness, interest rate reductions, term extensions, payment delays, repayment plans or combinations thereof:

•Principal forgiveness includes principal and accrued interest forgiveness.

•Interest rate reductions include modifications where the interest rate is reduced and/or interest is deferred.

•Term extensions extend the original contractual maturity date of the loan.

•Payment delays consist of modifications where we expect to collect contractual amounts due but that result in a delay in the receipt of payments specified under the original loan terms. We generally consider payment delays to be insignificant when the delay is three months or less.

•Repayment plans are offered for some of our credit card and unsecured line of credit products, which provide for a reduced payment and interest rate for a specific period of time.

Additionally, modifications to borrowers experiencing financial difficulty also result from borrowers that have been discharged from personal liability through Chapter 7 bankruptcy and have not formally reaffirmed their obligations to us, and those that enter into trial modifications.

FDMs exclude loans held for sale and loans accounted for under the fair value option. Our disclosed FDM population also excludes government insured or guaranteed education loans as loss mitigation activities for these loans are either required by law or they are considered separate from PNC’s loss mitigation treatments. Commercial loans with an appraised value of collateral that exceeds the loan value, loans with guarantor support, and residential mortgage government insured or guaranteed loans are included in our disclosed population of FDMs when those loan modifications are granted to a borrower experiencing financial difficulty.

Refer to Note 1 Accounting Policies for additional information around our adoption of ASU 2022-02.

Financing Receivable, Modified

The following table presents the amortized cost basis, as of September 30, 2023, of FDMs granted during the three and nine months ended September 30, 2023:

Table 46: Loan Modifications Granted to Borrowers Experiencing Financial Difficulty (a) (b)


Three months ended September 30, 2023 Dollars in millions	Interest Rate Reduction		Term Extension		Payment Delay		Repayment Plan		Interest Rate Reduction and Term Extension		Payment Delay and Term Extension		Other (c)		Total		% of Loan Class
Commercial
Commercial and industrial	$	15	$	356	$	37					$	7	$	83	$	498	0.29	%
Commercial real estate			307		16										323		0.90	%

Total commercial	15		663		53						7		83		821		0.38	%
Consumer
Residential real estate	1				50								3		54		0.11	%
Home equity					2								5		7		0.03	%

Credit card							$	20							20		0.28	%
Education			1												1		0.05	%
Other consumer							1								1		0.02	%
Total consumer	1		1		52		21						8		83		0.08	%
Total	$	16	$	664	$	105	$	21			$	7	$	91	$	904	0.28	%
Nine months ended September 30, 2023 Dollars in millions
Commercial
Commercial and industrial	$	15	$	704	$	91					$	20	$	130	$	960	0.55	%
Commercial real estate			745		16								61		822		2.30	%

Total commercial	15		1,449		107						20		191		1,782		0.82	%
Consumer
Residential real estate	1				83				$	3			6		93		0.20	%
Home equity					6				7				9		22		0.08	%

Credit card							$	45							45		0.64	%
Education			3												3		0.15	%
Other consumer							1								1		0.02	%
Total consumer	1		3		89		46		10				15		164		0.16	%
Total	$	16	$	1,452	$	196	$	46	$	10	$	20	$	206	$	1,946	0.61	%

(a)At September 30, 2023, there were $0.3 billion of unfunded lending related commitments associated with FDMs.

(b)Excludes the amortized cost basis of modified loans that were paid off, charged off or otherwise liquidated as of period end.

(c)Includes loans where we have received notification that a borrower has filed for Chapter 7 bankruptcy relief, but specific instructions as to the terms of the relief have not been formally ruled upon by the court. Amounts also include trial modifications.

Table 47 presents the financial effect of FDMs granted during the three and nine months ended September 30, 2023:

Table 47: Financial Effect of FDMs (a)


Three months ended September 30, 2023 Dollars in millions	Weighted-Average Interest Rate Reduction		Weighted-Average Term Extension (in Months)	Weighted-Average Payment Delay (in Months)
Commercial
Commercial and industrial	0.25	%	13	6
Commercial real estate			13	8

Consumer
Residential real estate	0.72	%		10
Home equity				5


Education			15
Nine months ended September 30, 2023 Dollars in millions
Commercial
Commercial and industrial	0.25	%	12	6
Commercial real estate			16	8

Consumer
Residential real estate	1.13	%	118	9
Home equity	1.17	%	53	4


Education			16

(a)Excludes the financial effects of modifications for loans that were paid off, charged off or otherwise liquidated as of period end.

After we modify a loan, we continue to track its performance under its most recent modified terms. The following table presents the performance, as of September 30, 2023, of FDMs granted during the nine months ended September 30, 2023:

Table 48: Delinquency Status of FDMs (a)


Nine months ended September 30, 2023 Dollars in millions	Current or Less Than 30 Days Past Due		30-59 Days Past Due		60-89 Days Past Due		90 Days or More Past Due		Nonperforming Loans		Total
Commercial
Commercial and industrial	$	801					$	3	$	156	$	960
Commercial real estate	755								67		822

Total commercial	1,556						3		223		1,782
Consumer
Residential real estate	4		$	1					88		93
Home equity	1								21		22

Credit card	31		4		$	3	6		1		45
Education	3										3
Other consumer									1		1
Total consumer	39		5		3		6		111		164
Total	$	1,595	$	5	$	3	$	9	$	334	$	1,946

(a)Represents amortized cost basis.

Financial Impact and TDRs by Concession Type

Table 49 quantifies the number of loans that were classified as TDRs as well as the change in the loans’ balance as a result of becoming a TDR during the three and nine months ended September 30, 2022. Additionally, the table provides information about the types of TDR concessions. See Note 1 Accounting Policies and Note 4 Loans and Related Allowance for Credit Losses in our 2022 Form 10-K for additional discussion of TDRs.

Table 49: Financial Impact and TDRs by Concession Type (a)


			Pre-TDR Amortized Cost Basis (b)		Post-TDR Amortized Cost Basis (c)
During the three months ended September 30, 2022 Dollars in millions	Number of Loans				Principal Forgiveness		Rate Reduction		Other		Total
Commercial		15	$	96			$	10	$	67	$	77
Consumer		2,232	40				29		6		35
Total TDRs		2,247	$	136			$	39	$	73	$	112
During the nine months ended September 30, 2022 Dollars in millions
Commercial		42	$	184	$	9	$	10	$	135	$	154
Consumer		8,152	126				$	95	18		113
Total TDRs		8,194	$	310	$	9	$	105	$	153	$	267

(a) Impact of partial charge-offs at TDR date is included in this table.

(b) Represents the amortized cost basis of the loans as of the quarter end prior to TDR designation.

Rollforward of Allowance for Credit Losses

We maintain the ACL related to loans at levels that we believe to be appropriate to absorb expected credit losses in the portfolios as of the balance sheet date. See Note 1 Accounting Policies for a discussion of the methodologies used to determine this allowance. A rollforward of the ACL related to loans follows:

Table 50: Rollforward of Allowance for Credit Losses


	Three months ended September 30												Nine months ended September 30
	2023						2022						2023						2022
In millions	Commercial		Consumer		Total		Commercial		Consumer		Total		Commercial		Consumer		Total		Commercial		Consumer		Total
Allowance for loan and lease losses
Beginning balance	$	3,142	$	1,595	$	4,737	$	2,937	$	1,525	$	4,462	$	3,114	$	1,627	$	4,741	$	3,185	$	1,683	$	4,868
Adoption of ASU 2022-02 (a)															(35)		(35)
Beginning balance, adjusted	3,142		1,595		4,737		2,937		1,525		4,462		3,114		1,592		4,706		3,185		1,683		4,868
Charge-offs	(72)		(161)		(233)		(73)		(149)		(222)		(327)		(481)		(808)		(162)		(506)		(668)
Recoveries	49		63		112		25		78		103		110		188		298		78		251		329
Net (charge-offs)	(23)		(98)		(121)		(48)		(71)		(119)		(217)		(293)		(510)		(84)		(255)		(339)
Provision for (recapture of) credit losses	105		48		153		174		67		241		325		246		571		(34)		93		59
Other	(2)				(2)		(2)		(1)		(3)								(6)		(1)		(7)
Ending balance	$	3,222	$	1,545	$	4,767	$	3,061	$	1,520	$	4,581	$	3,222	$	1,545	$	4,767	$	3,061	$	1,520	$	4,581
Allowance for unfunded lending related commitments (b)
Beginning balance	$	555	$	108	$	663	$	630	$	51	$	681	$	613	$	81	$	694	$	564	$	98	$	662
Provision for (recapture of) credit losses	(22)		(1)		(23)		(22)		23		1		(80)		26		(54)		44		(24)		20
Ending balance	$	533	$	107	$	640	$	608	$	74	$	682	$	533	$	107	$	640	$	608	$	74	$	682
Allowance for credit losses at September 30 (c)	$	3,755	$	1,652	$	5,407	$	3,669	$	1,594	$	5,263	$	3,755	$	1,652	$	5,407	$	3,669	$	1,594	$	5,263

(a)Represents the impact of adopting ASU 2022-02 on January 1, 2023. As a result of adoption, we eliminated the accounting guidance for TDRs, including the use of a discounted cash flow approach to measure the allowance for TDRs.

(b)See Note 8 Commitments for additional information about the underlying commitments related to this allowance.

(c)Represents the ALLL plus allowance for unfunded lending related commitments and excludes allowances for investment securities and other financial assets, which together totaled $131 million and $162 million at September 30, 2023 and 2022, respectively.