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Allowance for Credit Losses on Loans and Leases
 9 Months Ended
Sep. 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 Nine Months Ended September 30,
20232022
(in millions)MortgageOtherTotalMortgageOtherTotal
Balance, beginning of period$290 $103 $393 $178 $21 $199 
Adjustment for Purchased PCD Loans—1313———
Charge-offs(19)(15)(34)(5)—(5)
Recoveries—11114610
Provision for (recovery of) credit losses on loans and leases10812823631(17)14
Balance, end of period$379 $240 $619 $208 $10 $218 
As of September 30, 2023, the allowance for credit losses on loans and leases totaled $619 million, up $226 million compared to December 31, 2022. The day 1 impact of the Signature Transaction that closed on March 20, 2023 added $138 million to the reserve. The remaining net increase of approximately $88 million was driven by changes in the macroeconomic forecasts, 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. In addition, the increase reflects unfavorable market conditions in the CRE portfolio (primarily office).
As of September 30, 2023 and December 31, 2022, the allowance for unfunded commitments totaled $48 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 September 30, 2023:
(in millions)Recorded InvestmentRelated AllowanceInterest Income Recognized
Nonaccrual loans with no related allowance:
Multi-family$58 $— $1 
Commercial real estate42—1
One-to-four family first mortgage84——
Acquisition, development, and construction———
Other (includes C&I)38——
Total nonaccrual loans with no related allowance$222 $— $2 
Nonaccrual loans with an allowance recorded:
Multi-family$44 $1 $1 
Commercial real estate11543
One-to-four family first mortgage6——
Acquisition, development, and construction11—
Other (includes C&I)4632—
Total nonaccrual loans with an allowance recorded$212 $38 $4 
Total nonaccrual loans:
Multi-family$102 $1 $2 
Commercial real estate15744
One-to-four family first mortgage90——
Acquisition, development, and construction11—
Other (includes C&I)8432—
Total nonaccrual loans$434 $38 $6 

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