Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2022

Receivables [Abstract]

Schedule of Allowance for Credit Losses

The ACL activity for loans and leases and the ACL for unfunded commitments is summarized in the following tables. The increase in the ACL is primarily related to the CIT Merger, loan growth, and deterioration in the economic outlook.

ACL for Loans and Leases

dollars in millions	Year Ended December 31, 2022
	Commercial		Consumer		Total
Balance at December 31, 2021	$	80	$	98	$	178
Initial PCD ACL(1)	258		14		272
Day 2 provision for loans and leases	432		22		454
Provision (benefit) for credit losses - loans and leases	101		(4)		97
Total provision for credit losses- loans and leases	533		18		551
Charge-offs(1)	(126)		(20)		(146)
Recoveries	44		23		67
Balance at December 31, 2022	$	789	$	133	$	922
	Year Ended December 31, 2021
	Commercial		Consumer		Total
Balance at December 31, 2020	$	92	$	133	$	225
(Benefit) for credit losses - loans and leases	(7)		(30)		(37)
Charge-offs	(18)		(18)		(36)
Recoveries	13		13		26
Balance at December 31, 2021	$	80	$	98	$	178
	Year Ended December 31, 2020
	Commercial		Consumer		Total
Balance at December 31, 2019	$	150	$	75	$	225
Adoption of ASC 326	(84)		46		(38)
Balance after adoption of ASC 326	66		121		187
Provision for credit losses - loans and leases	34		24		58
Initial balance on PCD loans	1		1		2
Charge-offs	(20)		(25)		(45)
Recoveries	11		12		23
Balance at December 31, 2020	$	92	$	133	$	225

(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.

ACL for Unfunded Commitments

dollars in millions	Year Ended December 31,
	2022		2021		2020
Beginning balance	$	12	$	13	$	1
Adoption of ASC 326	—		—		9
Balance after adoption of ASC 326	12		13		10
Provision (benefit) for credit losses - unfunded commitments (1)	94		(1)		3
Ending balance	$	106	$	12	$	13

(1)     Includes the Day 2 provision for unfunded commitments of $59 million related to the CIT Merger.