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Allowance for Loan and Lease Losses | 9 Months Ended
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Sep. 30, 2023
Receivables [Abstract] |
ALLOWANCE FOR LOAN AND LEASE LOSSES | NOTE 5 — ALLOWANCE FOR LOAN AND LEASE LOSSES The ALLL is reported as a separate line item on the Consolidated Balance Sheets, while the reserve for off-balance sheet credit exposure is included in other liabilities as further discussed in Note 13—Other Liabilities. The provision or benefit for credit losses related to (i) loans and leases (ii) off-balance sheet credit exposure, and (iii) investment securities available for sale is reported in the Consolidated Statements of Income as provision or benefit for credit losses. The initial ALLL for PCD loans and leases acquired in the SVBB Acquisition and the CIT Merger (the “Initial PCD ALLL”) were established through a PCD Gross-Up and there were no corresponding increases to the provision for credit losses. The PCD Gross-Ups are discussed further in Note 1—Significant Accounting Policies and Basis of Presentation. The initial ALLL for Non-PCD loans and leases acquired in the SVBB Acquisition and the CIT Merger were established through corresponding increases to the provision for credit losses (the “day 2 provision for loan and lease losses”). The initial reserve for off-balance sheet credit exposure acquired in the SVBB Acquisition and the CIT Merger were established through a corresponding increase to the provision for off-balance sheet credit exposure (the “day 2 provision for off-balance sheet credit exposure”). The ALLL activity for loans and leases is summarized in the following table. Allowance for Loan and Lease Losses
dollars in millions | Three Months Ended September 30, 2023 |  | Nine Months Ended September 30, 2023
| Commercial |  | Consumer |  | SVB |  | Total |  | Commercial |  | Consumer |  | SVB |  | Total
Balance at beginning of period | $ | 915 |  |  | $ | 156 |  |  | $ | 566 |  |  | $ | 1,637 |  |  | $ | 789 |  |  | $ | 133 |  |  | $ | — |  |  | $ | 922 |
Initial PCD ALLL | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 220 |  |  | 220 |
Day 2 provision for loan and lease losses | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 462 |  |  | 462 |
Provision (benefit) for loan and lease losses | 149 |  |  | (11) |  |  | 74 |  |  | 212 |  |  | 379 |  |  | 18 |  |  | 55 |  |  | 452 |
Total provision (benefit) for loan and lease losses | 149 |  |  | (11) |  |  | 74 |  |  | 212 |  |  | 379 |  |  | 18 |  |  | 517 |  |  | 914 |
Charge-offs | (85) |  |  | (7) |  |  | (107) |  |  | (199) |  |  | (209) |  |  | (20) |  |  | (208) |  |  | (437) |
Recoveries | 12 |  |  | 4 |  |  | 7 |  |  | 23 |  |  | 32 |  |  | 11 |  |  | 11 |  |  | 54 |
Balance at September 30, 2023 | $ | 991 |  |  | $ | 142 |  |  | $ | 540 |  |  | $ | 1,673 |  |  | $ | 991 |  |  | $ | 142 |  |  | $ | 540 |  |  | $ | 1,673 |
| Three Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2022
| Commercial |  | Consumer |  | SVB |  | Total |  | Commercial |  | Consumer |  | SVB |  | Total
Balance at beginning of period | $ | 740 |  |  | $ | 110 |  |  | $ | — |  |  | $ | 850 |  |  | $ | 80 |  |  | $ | 98 |  |  | $ | — |  |  | $ | 178 |
Initial PCD ALLL | — |  |  | — |  |  | — |  |  | — |  |  | 258 |  |  | 14 |  |  | — |  |  | 272 |
Day 2 provision for loan and lease losses | — |  |  | — |  |  | — |  |  | — |  |  | 432 |  |  | 22 |  |  | — |  |  | 454 |
Provision (benefit) for loan and lease losses | 43 |  |  | 7 |  |  | — |  |  | 50 |  |  | 53 |  |  | (20) |  |  | — |  |  | 33 |
Total provision for loan and lease losses | 43 |  |  | 7 |  |  | — |  |  | 50 |  |  | 485 |  |  | 2 |  |  | — |  |  | 487 |
Charge-offs | (28) |  |  | (5) |  |  | — |  |  | (33) |  |  | (92) |  |  | (15) |  |  | — |  |  | (107) |
Recoveries | 11 |  |  | 4 |  |  | — |  |  | 15 |  |  | 35 |  |  | 17 |  |  | — |  |  | 52 |
Balance at September 30, 2022 | $ | 766 |  |  | $ | 116 |  |  | $ | — |  |  | $ | 882 |  |  | $ | 766 |  |  | $ | 116 |  |  | $ | — |  |  | $ | 882 |
The following table presents the components of the provision for credit losses: Provision for Credit Losses
dollars in millions | Three Months Ended |  | Nine Months Ended
| September 30, 2023 |  |  |  | September 30, 2022 |  | September 30, 2023 |  | September 30, 2022
Day 2 provision for loan and lease losses | $ | — |  |  |  |  | $ | — |  |  | $ | 462 |  |  | $ | 454 |
Provision for loan and lease losses | 212 |  |  |  |  | 50 |  |  | 452 |  |  | 33 |
Total provision for loan and lease losses | 212 |  |  |  |  | 50 |  |  | 914 |  |  | 487 |
Day 2 provision for off-balance sheet credit exposure | — |  |  |  |  | — |  |  | 254 |  |  | 59 |
(Benefit) provision for off-balance sheet credit exposure | (17) |  |  |  |  | 10 |  |  | (42) |  |  | 20 |
Total (benefit) provision for off-balance sheet credit exposure | (17) |  |  |  |  | 10 |  |  | 212 |  |  | 79 |
Benefit for investment securities available for sale credit losses | (3) |  |  |  |  | — |  |  | — |  |  | — |
Provision for credit losses | $ | 192 |  |  |  |  | $ | 60 |  |  | $ | 1,126 |  |  | $ | 566 |

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- Definition The entire disclosure for allowance for credit losses. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 310 -Publisher FASB -URI https://asc.fasb.org//310/tableOfContent + Details
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