XML 119 R15.htm IDEA: XBRL DOCUMENT v3.23.1
Allowance for Credit Losses on Loans and Leases
 3 Months Ended
Mar. 31, 2023
Credit Loss [Abstract]  
Allowance for Credit Losses on Loans and Leases Allowance for Credit Losses on Loans and Leases
Allowance for Credit Losses on Loans and Leases
The following table summarizes activity in the allowance for loan and lease losses for the periods indicated:

For the Three Months Ended March 31,
20232022
(in millions)MortgageOtherTotalMortgageOtherTotal
Balance, beginning of period$290 $103 $393 $178 $21 $199 
Adjustment for Purchased PCD Loans—13130
Charge-offs(2)(3)(5)(3)—(3)
Recoveries—55—22
Provision for (recovery of) credit losses on loans and leases(5)1491441(2)(1)
Balance, end of period$283 $267 $550 $176 $21 $197 
At March 31, 2023, the allowance for credit losses on loans and leases totaled $550 million, up $157 million compared to December 31, 2022, driven primarily by the initial provision for credit losses and the adjustment for PCD loans acquired in the Signature Transaction.
At March 31, 2023 and December 31, 2022, the allowance for unfunded commitments totaled $29 million and $23 million, respectively.
For the three months ended March 31, 2023 the increase in the allowance for credit losses on loans and leases was primarily driven by a combination of increased loan balances as a result of the Signature Transaction and changes in the macroeconomic environment both on a spot and forecasted basis, specifically the inflationary pressures leading to sharp increases in interest rates and a slow-down of prepayment activity leading to longer weighted average lives on the balance sheet. In addition, the impact of the forecasted macroeconomic factors had resultant decreases on market level factors in Property Prices on the Multi-Family, Commercial Real Estate and 1-4 Family loan portfolios reflecting the changing economic landscape.
The Company charges off loans, or portions of loans, in the period that such loans, or portions thereof, are deemed uncollectible. The collectability of individual loans is determined through an assessment of the financial condition and repayment capacity of the borrower and/or through an estimate of the fair value of any underlying collateral. For non-real estate-related consumer credits, the following past-due time periods determine when charge-offs are typically recorded: (1) closed-end credits are charged off in the quarter that the loan becomes 120 days past due; (2) open-end credits are charged off in the quarter that the loan becomes 180 days past due; and (3) both closed-end and open-end credits are typically charged off in the quarter that the credit is 60 days past the date the Company received notification that the borrower has filed for bankruptcy.

The following table presents additional information about the Company’s nonaccrual loans at March 31, 2023:
(in millions)Recorded InvestmentRelated AllowanceInterest Income Recognized
Nonaccrual loans with no related allowance:
Multi-family$13 $— $— 
Commercial real estate18——
One-to-four family first mortgage77——
Acquisition, development, and construction———
Other (includes C&I)16——
Total nonaccrual loans with no related allowance$124 $— $— 
Nonaccrual loans with an allowance recorded:
Multi-family$— $— $— 
Commercial real estate3——
One-to-four family first mortgage71—
Acquisition, development, and construction———
Other (includes C&I)1414—
Total nonaccrual loans with an allowance recorded$24 $15 $— 
Total nonaccrual loans:
Multi-family$13 $— $— 
Commercial real estate21——
One-to-four family first mortgage841—
Acquisition, development, and construction———
Other (includes C&I)3014—
Total nonaccrual loans$148 $15 $— 
The following table presents additional information about the Company’s nonaccrual loans at December 31, 2022:

(in millions)Recorded InvestmentRelated AllowanceInterest Income Recognized
Nonaccrual loans with no related allowance:
Multi-family$13 $— $— 
Commercial real estate19—1
One-to-four family first mortgage90——
Other (includes C&I)3——
Total nonaccrual loans with no related allowance$125 $— $1 
Nonaccrual loans with an allowance recorded:
Commercial real estate$1 $— $— 
One-to-four family first mortgage2——
Other (includes C&I)1314—
Total nonaccrual loans with an allowance recorded$16 $14 $— 
Total nonaccrual loans:
Multi-family$13 $— $— 
Commercial real estate20—1
One-to-four family first mortgage92——
Acquisition, development, and construction———
Other (includes C&I)1614—
Total nonaccrual loans$141 $14 $1