Quarterly report pursuant to Section 13 or 15(d)

ALLOWANCE FOR CREDIT LOSSES

v3.22.2.2
ALLOWANCE FOR CREDIT LOSSES
 9 Months Ended
Sep. 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 nine-month periods ended September 30, 2022 and 2021.

(dollar amounts in millions) Commercial Consumer Total
Three-month period ended September 30, 2022:
ALLL balance, beginning of period $ 1,342  $ 732  $ 2,074 
Loan and lease charge-offs (35) (48) (83)
Recoveries of loans and leases previously charged-off 20  19  39 
Provision (benefit) for loan and lease losses 87  (7) 80 
ALLL balance, end of period $ 1,414  $ 696  $ 2,110 
AULC balance, beginning of period $ 53  $ 41  $ 94 
Provision (benefit) for unfunded lending commitments 8  18  26 
AULC balance, end of period $ 61  $ 59  $ 120 
ACL balance, end of period $ 1,475  $ 755  $ 2,230 
Nine-month period ended September 30, 2022:
ALLL balance, beginning of period $ 1,462  $ 568  $ 2,030 
Loan and lease charge-offs (77) (139) (216)
Recoveries of loans and leases previously charged-off 83  62  145 
Provision for loan and lease losses (54) 205  151 
ALLL balance, end of period $ 1,414  $ 696  $ 2,110 
AULC balance, beginning of period $ 41  $ 36  $ 77 
Provision for unfunded lending commitments 20  23  43 
AULC balance, end of period $ 61  $ 59  $ 120 
ACL balance, end of period $ 1,475  $ 755  $ 2,230 
(dollar amounts in millions) Commercial Consumer Total
Three-month period ended September 30, 2021:
ALLL balance, beginning of period $ 1,618  $ 600  $ 2,218 
Loan and lease charge-offs (74) (32) (106)
Recoveries of loans and leases previously charged-off 27  24  51 
Provision (benefit) for loan and lease losses (22) (34) (56)
ALLL balance, end of period $ 1,549  $ 558  $ 2,107 
AULC balance, beginning of period $ 76  $ 28  $ 104 
Provision (benefit) for unfunded lending commitments 2  (8) (6)
AULC balance, end of period $ 78  $ 20  $ 98 
ACL balance, end of period $ 1,627  $ 578  $ 2,205 
Nine-month period ended September 30, 2021:
ALLL balance, beginning of period $ 1,236  $ 578  $ 1,814 
Loan and lease charge-offs (213) (90) (303)
Recoveries of loans and leases previously charged-off 58  64  122 
Provision (benefit) for loan and lease losses (1) 94  (52) 42 
Allowance on PCD loans and leases at acquisition 374  58  432 
ALLL balance, end of period $ 1,549  $ 558  $ 2,107 
AULC balance, beginning of period $ 34  $ 18  $ 52 
Provision for unfunded lending commitments (2) 45  2  47 
Unfunded lending commitment losses (1) —  (1)
AULC balance, end of period $ 78  $ 20  $ 98 
ACL balance, end of period $ 1,627  $ 578  $ 2,205 
(1)Includes $234 million of TCF acquisition initial provision for credit losses related to non-PCD loans and leases.
(2)Includes $60 million from acquired unfunded lending commitments.
At September 30, 2022, the ACL was $2.2 billion, an increase of $123 million from the December 31, 2021 balance of $2.1 billion.
The economic scenarios used in the September 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 September 30, 2022 ACL included a general reserve that consists of various risk profile components to capture uncertainty not addressed within the quantitative transaction reserve.