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Allowance for Credit Losses on Loans and Leases
 6 Months Ended
Jun. 30, 2023
Credit Loss [Abstract]  
Allowance for Credit Losses on Loans and Leases Allowance for Credit Losses on Loans and Leases
Allowance for Credit Losses on Loans and Leases
The following table summarizes activity in the allowance for credit losses for the periods indicated:

For the Six Months Ended June 30,
20232022
(in millions)MortgageOtherTotalMortgageOtherTotal
Balance, beginning of period$290 $103 $393 $178 $21 $199 
Adjustment for Purchased PCD Loans—1313———
Charge-offs(3)(5)(8)(4)—(4)
Recoveries—99459
Provision for (recovery of) credit losses on loans and leases4314418730(18)12
Balance, end of period$330 $264 $594 $208 $8 $216 
As of June 30, 2023, the allowance for credit losses on loans and leases totaled $594 million, up $201 million compared to December 31, 2022.
The increase in the allowance for credit losses on loans and leases from December 31, 2022 to June 30, 2023 was primarily driven by a combination of increased loan balances as a result of the Signature Transaction and changes in the macroeconomic environment both on a spot and forecasted basis, specifically the inflationary pressures leading to sharp increases in interest rates and a slow-down of prepayment activity leading to longer weighted average lives on the balance sheet.
As of June 30, 2023 and December 31, 2022, the allowance for unfunded commitments totaled $34 million and $23 million, respectively.
The Company charges off loans, or portions of loans, in the period that such loans, or portions thereof, are deemed uncollectible. The collectability of individual loans is determined through an assessment of the financial condition and repayment capacity of the borrower and/or through an estimate of the fair value of any underlying collateral. For non-real estate-related consumer credits, the following past-due time periods determine when charge-offs are typically recorded: (1) closed-end credits are charged off in the quarter that the loan becomes 120 days past due; (2) open-end credits are charged off in the quarter that the loan becomes 180 days past due; and (3) both closed-end and open-end credits are typically charged off in the quarter that the credit is 60 days past the date the Company received notification that the borrower has filed for bankruptcy.
The following table presents additional information about the Company’s nonaccrual loans at June 30, 2023:
(in millions)Recorded InvestmentRelated AllowanceInterest Income Recognized
Nonaccrual loans with no related allowance:
Multi-family$32 $— $— 
Commercial real estate34—1
One-to-four family first mortgage78——
Other (includes C&I)59——
Total nonaccrual loans with no related allowance$203 $— $1 
Nonaccrual loans with an allowance recorded:
Multi-family$1 $— $— 
Commercial real estate2——
One-to-four family first mortgage73—
Other (includes C&I)2015—
Total nonaccrual loans with an allowance recorded$30 $18 $— 
Total nonaccrual loans:
Multi-family$33 $— $— 
Commercial real estate36—1
One-to-four family first mortgage853—
Other (includes C&I)7915—
Total nonaccrual loans$233 $18 $1 

The following table presents additional information about the Company’s nonaccrual loans at December 31, 2022:

(in millions)Recorded InvestmentRelated AllowanceInterest Income Recognized
Nonaccrual loans with no related allowance:
Multi-family$13 $— $— 
Commercial real estate19—1
One-to-four family first mortgage90——
Other (includes C&I)3——
Total nonaccrual loans with no related allowance$125 $— $1 
Nonaccrual loans with an allowance recorded:
Commercial real estate$1 $— $— 
One-to-four family first mortgage2——
Other (includes C&I)1314—
Total nonaccrual loans with an allowance recorded$16 $14 $— 
Total nonaccrual loans:
Multi-family$13 $— $— 
Commercial real estate20—1
One-to-four family first mortgage92——
Other (includes C&I)1614—
Total nonaccrual loans$141 $14 $1