Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2022

The ACL activity for loans and leases and the ACL for unfunded commitments is summarized in the following tables.

ACL for Loans and Leases


	Three Months Ended June 30, 2022						Six Months Ended June 30, 2022
dollars in millions	Commercial		Consumer		Total		Commercial		Consumer		Total
Balance at beginning of period	$	743	$	105	$	848	$	80	$	98	$	178
Initial PCD ACL(1)	(12)		—		(12)		258		14		272
Initial Non-PCD Provision	—		—		—		432		22		454
Provision (benefit) for credit losses - loans and leases	33		3		36		10		(27)		(17)
Total provision (benefit) for credit losses- loans and leases	33		3		36		442		(5)		437
Charge-offs(1)	(36)		(5)		(41)		(64)		(10)		(74)
Recoveries	12		7		19		24		13		37

Balance at June 30, 2022	$	740	$	110	$	850	$	740	$	110	$	850

	Three Months Ended June 30, 2021						Six Months Ended June 30, 2021
	Commercial		Consumer		Total		Commercial		Consumer		Total
Balance at beginning of period	$	86	$	124	$	210	$	92	$	133	$	225
Provision (benefit) for credit losses - loans and leases	1		(20)		(19)		(3)		(28)		(31)
Charge-offs	(3)		(4)		(7)		(7)		(9)		(16)
Recoveries	2		3		5		4		7		11

Balance at June 30, 2021	$	86	$	103	$	189	$	86	$	103	$	189

(1) The Initial PCD ACL related to the CIT Merger was $272 million, net of an additional $243 million for loans that CIT charged-off prior to the Merger Date (whether full or partial) which met BancShares’ charge-off policy at the Merger Date. The $12 million reflects second quarter adjustment to the original amount recorded on the Merger Date, with an equal adjustment to the UPB of PCD loans. There was no income statement impact or adjustment to the purchase price.

ACL for Unfunded Commitments


	Three Months Ended June 30,				Six Months Ended June 30,
dollars in millions	2022		2021		2022		2021
Beginning balance	$	75	$	12	$	12	$	13
Provision (benefit) for credit losses - unfunded commitments	6		(1)		69		(2)
Ending balance	$	81	$	11	$	81	$	11