The ALLL is reported as a separate line item on the Consolidated Balance Sheets, while the reserve for off-balance sheet credit exposure of $190 million and $260 million at September 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 September 30, 2026				Three Months Ended September 30, 2025
	Commercial		Consumer		Total		Commercial		Consumer		Total
Balance at beginning of period	$	1,353	$	131	$	1,484	$	1,512	$	160	$	1,672
BMO PSL ALLL	5		—		5		—		—		—

Provision (benefit) for loan and lease losses	34		16		50		238		(24)		214

Charge-offs	(127)		(8)		(135)		(244)		(12)		(256)
Recoveries	29		3		32		18		4		22

Balance at end of period	$	1,294	$	142	$	1,436	$	1,524	$	128	$	1,652


	Nine Months Ended September 30, 2026				Nine Months Ended September 30, 2025
	Commercial		Consumer		Total		Commercial		Consumer		Total
Balance at beginning of period	$	1,436	$	130	$	1,566	$	1,518	$	158	$	1,676
BMO PSL ALLL	5		—		5		—		—		—

Provision (benefit) for loan and lease losses	159		28		187		487		(14)		473

Charge-offs	(372)		(25)		(397)		(540)		(27)		(567)
Recoveries	66		9		75		59		11		70

Balance at end of period	$	1,294	$	142	$	1,436	$	1,524	$	128	$	1,652

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 $1.44 billion at September 30, 2026, a decrease of $130 million from $1.57 billion at December 31, 2025, largely due to lower reserves for individually evaluated loans, growth concentrated in capital call lines which have a significantly lower loss rate relative to our other loan portfolios, improvements in credit quality including updates to certain models used to estimate the ALLL as discussed above, and changes in the macroeconomic scenarios, partially offset by the BMO PSL ALLL of $5 million discussed in Note 2—Business Combinations.


dollars in millions	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025

Provision for loan and lease losses	$	50	$	214	$	187	$	473


Provision (benefit) for off-balance sheet credit exposure	6		(23)		(70)		(13)

Benefit for other receivables	(1)		—		—		—
Provision for credit losses	$	55	$	191	$	117	$	460