ALLOWANCE FOR CREDIT LOSSES

The following table presents ACL activity by portfolio segment.


(dollar amounts in millions)	Commercial	Consumer	Total
Three months ended September 30, 2026
ALLL balance, beginning of period	$2,339	$910	$3,249
Loan and lease charge-offs	(114)	(86)	(200)
Recoveries of loans and leases previously charged-off	33	21	54
Provision for loan and lease losses	99	20	119
ALLL balance, end of period	$2,357	$865	$3,222
AULC balance, beginning of period	$102	$30	$132
Provision (benefit) for unfunded lending commitments	(3)	7	4
AULC balance, end of period	$99	$37	$136
ACL balance, end of period	$2,456	$902	$3,358
Three months ended September 30, 2025
ALLL balance, beginning of period	$1,548	$783	$2,331
Loan and lease charge-offs	(80)	(57)	(137)
Recoveries of loans and leases previously charged-off	44	18	62
Provision for loan and lease losses	56	62	118
ALLL balance, end of period	$1,568	$806	$2,374
AULC balance, beginning of period	$124	$60	$184
Provision for unfunded lending commitments	1	3	4
AULC balance, end of period	$125	$63	$188
ACL balance, end of period	$1,693	$869	$2,562
Nine months ended September 30, 2026
ALLL balance, beginning of period	$1,731	$806	$2,537
Loan and lease charge-offs (1)	(328)	(236)	(564)
Recoveries of loans and leases previously charged-off	125	63	188
Provision for loan and lease losses	391	103	494
Allowance on PCD loans and leases at acquisition	268	54	322
Allowance on purchased seasoned loans and leases at acquisition	170	75	245
ALLL balance, end of period	$2,357	$865	$3,222
AULC balance, beginning of period	$145	$61	$206
Provision (benefit) for unfunded lending commitments	(49)	(32)	(81)
Allowance for unfunded lending commitments at acquisition	3	8	11
AULC balance, end of period	$99	$37	$136
ACL balance, end of period	$2,456	$902	$3,358
Nine months ended September 30, 2025
ALLL balance, beginning of period	$1,484	$760	$2,244
Loan and lease charge-offs	(210)	(171)	(381)
Recoveries of loans and leases previously charged-off	99	55	154
Provision for loan and lease losses	195	162	357
ALLL balance, end of period	$1,568	$806	$2,374
AULC balance, beginning of period	$144	$58	$202
Provision (benefit) for unfunded lending commitments	(19)	5	(14)
AULC balance, end of period	$125	$63	$188
ACL balance, end of period	$1,693	$869	$2,562

(1)Includes charge-offs of $23 million on certain commercial loans previously charged off by Cadence, which were written up to the unpaid principal balance

at acquisition and then immediately charged off by Huntington as required by purchase accounting.

At September 30, 2026, the ACL was $3.4 billion, a $615 million increase compared to December 31, 2025. The

increase in the ACL was driven by the ACL recorded for loans acquired in the Cadence transaction in addition to

organic loan and lease growth. The ACL coverage ratio at September 30, 2026 is reflective of the current

macroeconomic forecast and changes in various risk profiles intended to capture uncertainty not addressed within

the quantitative reserve.

The commercial ACL was $2.5 billion at September 30, 2026, a $580 million increase compared to December 31,

2025, with the increase driven by $438 million of ALLL recorded for commercial loans acquired in the Cadence

transaction, as well as organic growth in commercial loans during the first nine months of 2026, partially offset by a

lower ACL coverage ratio. The consumer ACL was $902 million at September 30, 2026, an increase of $35 million

from December 31, 2025, with the increase due primarily to $129 million of ALLL recorded for consumer loans

acquired in the Cadence transaction, partially offset by a lower ACL coverage ratio on consumer loans.

The baseline economic forecast used as part of estimating the ACL at September 30, 2026 reflected a modest

softening in the labor market and slowing economic growth. Under this scenario, the unemployment rate is

expected to gradually increase over the next year to 4.7%, while GDP growth is expected to moderate through the

remainder of 2026, not exceeding 2% until the fourth quarter of 2027. These economic expectations, together with

portfolio-specific performance trends and other qualitative factors, were incorporated into the Company’s estimate

of expected credit losses.

The economic scenarios used included elevated levels of economic uncertainty including the impact of specific

challenges in the commercial real estate industry, recent inflation levels, the U.S. labor market, expected interest

rate changes by the Federal Reserve, and the impact of significant conflicts on-going around the world. Given the

uncertainty associated with key economic scenario assumptions, the September 30, 2026 ACL included a general

reserve that consists of various risk profile components to address uncertainty not measured within the quantitative