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ALLOWANCE FOR LOAN AND LEASE LOSSES
 9 Months Ended
Sep. 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 September 30, 2025Three Months Ended September 30, 2024
CommercialConsumerTotalCommercialConsumerTotal
Balance at beginning of period$1,512 $160 $1,672 $1,547 $153 $1,700 
Provision (benefit) for loan and lease losses
238 (24)214 123 — 123 
Charge-offs
(244)(12)(256)(169)(8)(177)
Recoveries18 4 22 27 5 32 
Balance at end of period$1,524 $128 $1,652 $1,528 $150 $1,678 

Nine Months Ended September 30, 2025Nine Months Ended September 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
487 (14)473 316 (5)311 
Charge-offs
(540)(27)(567)(443)(21)(464)
Recoveries59 11 70 74 10 84 
Balance at end of period$1,524 $128 $1,652 $1,528 $150 $1,678 

The decrease of $20 million in the ALLL at September 30, 2025 compared to June 30, 2025 primarily reflects improvements in the economic outlook and other changes, including the elimination of reserves related to Hurricane Helene, partially offset by higher specific reserves for individually evaluated loans, and growth in global fund banking loans which have a lower loss rate relative to our other portfolios. Also, during the three months ended September 30, 2025, we updated our PD, LGD, and exposure at default methodology for certain portfolios which contributed to changes in the ALLL compared to prior periods.

The decrease of $24 million in the ALLL at September 30, 2025 compared to December 31, 2024 was also mainly due to the changes discussed above.

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

Provision for Credit Losses
dollars in millionsThree Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Provision for loan and lease losses
$214 $123 $473 $311 
Benefit for off-balance sheet credit exposure(23)(6)(13)(35)
Provision for credit losses$191 $117 $460 $276