Quarterly report pursuant to Section 13 or 15(d)

ALLOWANCE FOR CREDIT LOSSES

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ALLOWANCE FOR CREDIT LOSSES
 6 Months Ended
Jun. 30, 2022
Credit Loss [Abstract]  
Allowance for Credit Losses ALLOWANCE FOR CREDIT LOSSES
Allowance for Credit Losses - Roll-forward
The following tables present ACL activity by portfolio segment for the three-month and six-month periods ended June 30, 2022 and 2021.

(dollar amounts in millions) Commercial Consumer Total
Three-month period ended June 30, 2022:
ALLL balance, beginning of period $ 1,514  $ 504  $ 2,018 
Loan and lease charge-offs (12) (40) (52)
Recoveries of loans and leases previously charged-off 24  20  44 
Provision (benefit) for loan and lease losses (184) 248  64 
ALLL balance, end of period $ 1,342  $ 732  $ 2,074 
AULC balance, beginning of period $ 57  $ 34  $ 91 
Provision (benefit) for unfunded lending commitments (4) 7  3 
AULC balance, end of period $ 53  $ 41  $ 94 
ACL balance, end of period $ 1,395  $ 773  $ 2,168 
Six-month period ended June 30, 2022:
ALLL balance, beginning of period $ 1,462  $ 568  $ 2,030 
Loan and lease charge-offs (44) (89) (133)
Recoveries of loans and leases previously charged-off 65  41  106 
Provision for loan and lease losses (141) 212  71 
ALLL balance, end of period $ 1,342  $ 732  $ 2,074 
AULC balance, beginning of period $ 41  $ 36  $ 77 
Provision for unfunded lending commitments 12  5  17 
AULC balance, end of period $ 53  $ 41  $ 94 
ACL balance, end of period $ 1,395  $ 773  $ 2,168 
(dollar amounts in millions) Commercial Consumer Total
Three-month period ended June 30, 2021:
ALLL balance, beginning of period $ 1,197  $ 506  $ 1,703 
Loan and lease charge-offs (1) (78) (24) (102)
Recoveries of loans and leases previously charged-off 19  21  40 
Provision for loan and lease losses (2) 106  39  145 
Allowance on PCD loans and leases at acquisition 374  58  432 
ALLL balance, end of period $ 1,618  $ 600  $ 2,218 
AULC balance, beginning of period $ 27  $ 11  $ 38 
Provision (benefit) for unfunded lending commitments (3) 49  17  66 
AULC balance, end of period $ 76  $ 28  $ 104 
ACL balance, end of period $ 1,694  $ 628  $ 2,322 
Six-month period ended June 30, 2021:
ALLL balance, beginning of period $ 1,236  $ 578  $ 1,814 
Loan and lease charge-offs (1) (139) (58) (197)
Recoveries of loans and leases previously charged-off 31  40  71 
Provision for loan and lease losses (2) 116  (18) 98 
Allowance on PCD loans and leases at acquisition 374  58  432 
ALLL balance, end of period $ 1,618  $ 600  $ 2,218 
AULC balance, beginning of period $ 34  $ 18  $ 52 
Provision (reduction in allowance) for unfunded lending commitments (3) 43  10  53 
Unfunded lending commitment losses (1) —  (1)
AULC balance, end of period $ 76  $ 28  $ 104 
ACL balance, end of period $ 1,694  $ 628  $ 2,322 
(1)Loan and lease charge-offs for the three and six-month periods ended June 30, 2021 exclude $80 million of charge-offs recognized upon completion of the TCF acquisition related to required purchase accounting treatment. The initial ALLL recognized on PCD assets included these amounts and after charging these amounts off upon acquisition, the net impact was $432 million of additional ALLL for PCD loans.
(2)Includes $234 million of TCF acquisition initial provision for credit losses related to non-PCD loans and leases.
(3)Includes $60 million from acquired unfunded lending commitments.
At June 30, 2022, the ACL was $2.2 billion, an increase of $61 million from the December 31, 2021 balance of $2.1 billion.
The economic scenarios used in the June 30, 2022 ACL determination contained judgmental assumptions due to elevated levels of economic uncertainty associated with geopolitical instability, high inflation readings, and the expected path of interest rate increases by the Fed. Given the uncertainty associated with key economic scenario assumptions, the June 30, 2022 ACL included a general reserve that consists of various risk profile components, including the potential economic impact of a near-term recession as the Fed raises interest rates attempting to lower inflation, and the commercial real estate portfolio, to capture uncertainty not addressed within the quantitative transaction reserve.