ALLOWANCE FOR LOAN AND LEASE LOSSES

3 Months Ended

Mar. 31, 2025

NOTE 5 — ALLOWANCE FOR LOAN AND LEASE LOSSES

The ALLL is reported as a separate line item on the Consolidated Balance Sheets, while the reserve for off-balance sheet credit exposure is included in other liabilities. The provision or benefit for credit losses related to (i) loans and leases (ii) off-balance sheet credit exposure, and (iii) investment securities available for sale, if any, is reported in the Consolidated Statements of Income as provision or benefit for credit losses.

The ALLL activity for loans and leases is summarized in the following table:

Allowance for Loan and Lease Losses


dollars in millions	Three Months Ended March 31, 2025								Three Months Ended March 31, 2024
	Commercial		Consumer		SVB		Total		Commercial		Consumer		SVB		Total
Balance at beginning of period	$	1,063	$	158	$	455	$	1,676	$	1,126	$	166	$	455	$	1,747


Provision (benefit) for loan and lease losses	105		10		33		148		59		(6)		40		93

Charge-offs	(105)		(8)		(54)		(167)		(75)		(7)		(46)		(128)
Recoveries	15		3		5		23		10		2		13		25
Balance at end of period	$	1,078	$	163	$	439	$	1,680	$	1,120	$	155	$	462	$	1,737

The increase in the ALLL at March 31, 2025 compared to December 31, 2024 was primarily due to modest deterioration in the macroeconomic forecast, as well as increases in loan volume, partially offset by the result of a mix shift from the investor dependent portfolio to the global fund banking portfolio, which has a lower loss rate relative to our other loan portfolios, and lower specific reserves for individually evaluated loans.

The following table presents the components of the provision for credit losses:

Provision for Credit Losses


dollars in millions	Three Months Ended March 31,
	2025		2024

Provision for loan and lease losses	$	148	$	93


Provision (benefit) for off-balance sheet credit exposure	6		(29)


Provision for credit losses	$	154	$	64