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ALLOWANCE FOR LOAN AND LEASE LOSSES
 6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
ALLOWANCE FOR LOAN AND LEASE LOSSES
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 millionsThree Months Ended June 30, 2025Three Months Ended June 30, 2024
CommercialConsumerTotalCommercialConsumerTotal
Balance at beginning of period$1,517 $163 $1,680 $1,582 $155 $1,737 
Provision for loan and lease losses
111 — 111 94 1 95 
Charge-offs
(137)(7)(144)(153)(6)(159)
Recoveries21 4 25 24 3 27 
Balance at end of period$1,512 $160 $1,672 $1,547 $153 $1,700 

dollars in millionsSix Months Ended June 30, 2025Six Months Ended June 30, 2024
CommercialConsumerTotalCommercialConsumerTotal
Balance at beginning of period$1,518 $158 $1,676 $1,581 $166 $1,747 
Provision (benefit) for loan and lease losses
249 10 259 193 (5)188 
Charge-offs
(296)(15)(311)(274)(13)(287)
Recoveries41 7 48 47 5 52 
Balance at end of period$1,512 $160 $1,672 $1,547 $153 $1,700 

The decrease of $8 million in the ALLL at June 30, 2025 compared to March 31, 2025 primarily reflected decreases related to Hurricane Helene, other credit quality improvements, and a modest shift in our weighting from the downside to baseline economic scenario, partially offset by higher specific reserves for individually evaluated loans. The decrease of $4 million in the ALLL at June 30, 2025 compared to December 31, 2024 was mainly due to decreases discussed above and the result of a mix shift from investor dependent loans to global fund banking loans, which has a lower loss rate relative to our other loan portfolios, partially offset by the impact of loan growth.

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

Provision for Credit Losses
dollars in millionsThree Months Ended June 30,Six Months Ended June 30,
2025202420252024
Provision for loan and lease losses
$111 $95 $259 $188 
Provision (benefit) for off-balance sheet credit exposure4 — 10 (29)
Provision for credit losses$115 $95 $269 $159