The ALLL is reported as a separate line item on the Consolidated Balance Sheets, while the reserve for off-balance sheet credit exposure of $184 million and $260 million at June 30, 2026 and December 31, 2025, respectively, is included in other liabilities. The provision or benefit for credit losses related to (i) loans and leases (ii) off-balance sheet credit exposure, and (iii) other receivables or investment securities available for sale, if any, is reported in the Consolidated Statements of Income as provision or benefit for credit losses.


dollars in millions	Three Months Ended June 30, 2026				Three Months Ended June 30, 2025
	Commercial		Consumer		Total		Commercial		Consumer		Total
Balance at beginning of period	$	1,428	$	130	$	1,558	$	1,517	$	163	$	1,680


Provision for loan and lease losses	28		6		34		111		—		111

Charge-offs	(122)		(8)		(130)		(137)		(7)		(144)
Recoveries	19		3		22		21		4		25

Balance at end of period	$	1,353	$	131	$	1,484	$	1,512	$	160	$	1,672


dollars in millions	Six Months Ended June 30, 2026				Six Months Ended June 30, 2025
	Commercial		Consumer		Total		Commercial		Consumer		Total
Balance at beginning of period	$	1,436	$	130	$	1,566	$	1,518	$	158	$	1,676


Provision for loan and lease losses	125		12		137		249		10		259

Charge-offs	(245)		(17)		(262)		(296)		(15)		(311)
Recoveries	37		6		43		41		7		48

Balance at end of period	$	1,353	$	131	$	1,484	$	1,512	$	160	$	1,672

The ALLL may vary significantly from period to period due to changes in economic conditions, economic forecasts, the composition and credit quality of the loan and lease portfolio, and the related impacts to the ALLL models. We continuously monitor and update our ALLL estimation methodology and models, as appropriate. During the second quarter of 2026, we implemented enhancements to our probability of obligor default, loss given default and exposure at default models for the commercial and industrial, and commercial real estate portfolios which contributed to the decrease in the ALLL compared to December 31, 2025.

The ALLL was $1.48 billion at June 30, 2026, a decrease of $82 million from $1.57 billion at December 31, 2025, largely driven by lower specific reserves, improvements in credit quality including updates to certain models used to estimate the allowance as discussed above, changes in the macroeconomic scenarios, and growth concentrated in capital call lines which have a significantly lower loss rate relative to our other loan portfolios.


dollars in millions	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

Provision for loan and lease losses	$	34	$	111	$	137	$	259


(Benefit) provision for off-balance sheet credit exposure	(44)		4		(76)		10

Provision for other receivables	—		—		1		—
(Benefit) provision for credit losses	$	(10)	$	115	$	62	$	269