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ALLOWANCE FOR LOAN AND LEASE LOSSES | 6 Months Ended
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Jun. 30, 2024
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, presented 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. SVBB Acquisition The initial ALLL for PCD loans and leases acquired in the SVBB Acquisition (the “Initial PCD ALLL”) was established through a PCD gross-up and there was no corresponding increase to the provision for credit losses. The initial ALLL for Non-PCD loans and leases acquired in the SVBB Acquisition was established through a corresponding increase 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 was 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 accounting policy for loans and off-balance sheet credit exposure acquired in a business combination is further discussed in Note 1—Significant Accounting Policies and Basis of Presentation in the Notes to the Consolidated Financial Statements included in our 2023 Form 10-K. 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 June 30, 2024 |  | Three Months Ended June 30, 2023
| Commercial |  | Consumer |  | SVB |  | Total |  | Commercial |  | Consumer |  | SVB |  | Total
Balance at beginning of period | $ | 1,120 |  |  | $ | 155 |  |  | $ | 462 |  |  | $ | 1,737 |  |  | $ | 860 |  |  | $ | 178 |  |  | $ | 567 |  |  | $ | 1,605 |
Initial PCD ALLL | — |  |  | — |  |  | — |  |  | — |  |  | 4 |  |  | — |  |  | 16 |  |  | 20 |
Day 2 (benefit) provision for loan and lease losses | — |  |  | — |  |  | — |  |  | — |  |  | (11) |  |  | 11 |  |  | — |  |  | — |
Provision (benefit) for loan and lease losses | 66 |  |  | 1 |  |  | 28 |  |  | 95 |  |  | 173 |  |  | (13) |  |  | 9 |  |  | 169 |
Total provision (benefit) for loan and lease losses | 66 |  |  | 1 |  |  | 28 |  |  | 95 |  |  | 162 |  |  | (2) |  |  | 9 |  |  | 169 |
Charge-offs | (96) |  |  | (6) |  |  | (57) |  |  | (159) |  |  | (70) |  |  | (6) |  |  | (100) |  |  | (176) |
Recoveries | 13 |  |  | 3 |  |  | 11 |  |  | 27 |  |  | 12 |  |  | 3 |  |  | 4 |  |  | 19 |
Balance at end of period | $ | 1,103 |  |  | $ | 153 |  |  | $ | 444 |  |  | $ | 1,700 |  |  | $ | 968 |  |  | $ | 173 |  |  | $ | 496 |  |  | $ | 1,637 |
dollars in millions | Six Months Ended June 30, 2024 |  | Six Months Ended June 30, 2023
| Commercial |  | Consumer |  | SVB |  | Total |  | Commercial |  | Consumer |  | SVB |  | Total
Balance at beginning of period | $ | 1,126 |  |  | $ | 166 |  |  | $ | 455 |  |  | $ | 1,747 |  |  | $ | 789 |  |  | $ | 133 |  |  | $ | — |  |  | $ | 922 |
Initial PCD ALLL | — |  |  | — |  |  | — |  |  | — |  |  | 14 |  |  | 3 |  |  | 203 |  |  | 220 |
Day 2 provision for loan and lease losses | — |  |  | — |  |  | — |  |  | — |  |  | 39 |  |  | 43 |  |  | 380 |  |  | 462 |
Provision (benefit) for loan and lease losses | 125 |  |  | (5) |  |  | 68 |  |  | 188 |  |  | 230 |  |  | 1 |  |  | 9 |  |  | 240 |
Total provision (benefit) for loan and lease losses | 125 |  |  | (5) |  |  | 68 |  |  | 188 |  |  | 269 |  |  | 44 |  |  | 389 |  |  | 702 |
Charge-offs | (171) |  |  | (13) |  |  | (103) |  |  | (287) |  |  | (124) |  |  | (14) |  |  | (100) |  |  | (238) |
Recoveries | 23 |  |  | 5 |  |  | 24 |  |  | 52 |  |  | 20 |  |  | 7 |  |  | 4 |  |  | 31 |
Balance at end of period | $ | 1,103 |  |  | $ | 153 |  |  | $ | 444 |  |  | $ | 1,700 |  |  | $ | 968 |  |  | $ | 173 |  |  | $ | 496 |  |  | $ | 1,637 |
The following table presents the components of the provision for credit losses: Provision for Credit Losses
dollars in millions | Three Months Ended June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Day 2 provision for loan and lease losses | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 462 |
Provision for loan and lease losses | 95 |  |  | 169 |  |  | 188 |  |  | 240 |
Total provision for loan and lease losses | 95 |  |  | 169 |  |  | 188 |  |  | 702 |
Day 2 provision for off-balance sheet credit exposure | — |  |  | — |  |  | — |  |  | 254 |
Benefit from off-balance sheet credit exposure | — |  |  | (17) |  |  | (29) |  |  | (25) |
Total (benefit) provision for off-balance sheet credit exposure | — |  |  | (17) |  |  | (29) |  |  | 229 |
(Benefit) provision for investment securities available for sale credit losses | — |  |  | (1) |  |  | — |  |  | 3 |
Provision for credit losses | $ | 95 |  |  | $ | 151 |  |  | $ | 159 |  |  | $ | 934 |

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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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