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v3.22.4

Allowance for Credit Losses | 12 Months Ended
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Dec. 31, 2022
Receivables [Abstract] |
Allowance for Credit Losses | ALLOWANCE FOR CREDIT LOSSES The ACL for loans and leases is reported in the allowance for credit losses on the Consolidated Balance Sheets, while the ACL for unfunded commitments is reported in other liabilities. The provision or benefit for credit losses related to both (i) loans and leases and (ii) unfunded commitments is reported in the Consolidated Statements of Income as provision or benefit for credit losses. The ACL methodology is discussed in Note 1 — Significant Accounting Policies and Basis of Presentation. The initial ACL for PCD loans and leases acquired in the CIT Merger (the “Initial PCD ACL”) of $272 million was established through the PCD Gross-Up and there was no corresponding increase to the provision for credit losses. The PCD Gross-Up is discussed further in Note 1 — Significant Accounting Policies and Basis of Presentation. The initial ACL for Non-PCD loans and leases acquired in the CIT Merger was established through a corresponding increase of $454 million to the provision for credit losses (the “Day 2 provision for loans and leases”). The ACL activity for loans and leases and the ACL for unfunded commitments is summarized in the following tables. The increase in the ACL is primarily related to the CIT Merger, loan growth, and deterioration in the economic outlook. ACL for Loans and Leases
dollars in millions | Year Ended December 31, 2022
| Commercial |  | Consumer |  | Total
Balance at December 31, 2021 | $ | 80 |  |  | $ | 98 |  |  | $ | 178 |
Initial PCD ACL(1) | 258 |  |  | 14 |  |  | 272 |
Day 2 provision for loans and leases | 432 |  |  | 22 |  |  | 454 |
Provision (benefit) for credit losses - loans and leases | 101 |  |  | (4) |  |  | 97 |
Total provision for credit losses- loans and leases | 533 |  |  | 18 |  |  | 551 |
Charge-offs(1) | (126) |  |  | (20) |  |  | (146) |
Recoveries | 44 |  |  | 23 |  |  | 67 |
Balance at December 31, 2022 | $ | 789 |  |  | $ | 133 |  |  | $ | 922 |
| Year Ended December 31, 2021
| Commercial |  | Consumer |  | Total
Balance at December 31, 2020 | $ | 92 |  |  | $ | 133 |  |  | $ | 225 |
(Benefit) for credit losses - loans and leases | (7) |  |  | (30) |  |  | (37) |
Charge-offs | (18) |  |  | (18) |  |  | (36) |
Recoveries | 13 |  |  | 13 |  |  | 26 |
Balance at December 31, 2021 | $ | 80 |  |  | $ | 98 |  |  | $ | 178 |
| Year Ended December 31, 2020
| Commercial |  | Consumer |  | Total
Balance at December 31, 2019 | $ | 150 |  |  | $ | 75 |  |  | $ | 225 |
Adoption of ASC 326 | (84) |  |  | 46 |  |  | (38) |
Balance after adoption of ASC 326 | 66 |  |  | 121 |  |  | 187 |
Provision for credit losses - loans and leases | 34 |  |  | 24 |  |  | 58 |
Initial balance on PCD loans | 1 |  |  | 1 |  |  | 2 |
Charge-offs | (20) |  |  | (25) |  |  | (45) |
Recoveries | 11 |  |  | 12 |  |  | 23 |
Balance at December 31, 2020 | $ | 92 |  |  | $ | 133 |  |  | $ | 225 |
(1) The Initial PCD ACL related to the CIT Merger was $272 million, net of an additional $243 million for loans that CIT charged-off prior to the Merger Date (whether full or partial) which met BancShares’ charge-off policy at the Merger Date. ACL for Unfunded Commitments
dollars in millions | Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Beginning balance | $ | 12 |  |  | $ | 13 |  |  | $ | 1 |
Adoption of ASC 326 | — |  |  | — |  |  | 9 |
Balance after adoption of ASC 326 | 12 |  |  | 13 |  |  | 10 |
Provision (benefit) for credit losses - unfunded commitments (1) | 94 |  |  | (1) |  |  | 3 |
Ending balance | $ | 106 |  |  | $ | 12 |  |  | $ | 13 |
(1) Includes the Day 2 provision for unfunded commitments of $59 million related to the CIT Merger.

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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -URI https://asc.fasb.org/topic&trid=2196771 + Details
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- References No definition available. + Details
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