Investor Presentaiton
$300
CECL and Allowance for Credit Losses ("ACL")
ACL Reserve Build
$30
$268
$250
$24
$37
$214
$200
$177
$150
$100
$50
$0
Q4-19
Q4-19
Adoption
Impact
1/1/2020
PF Q4-19
Balance Sheet
Growth
Outlook
Adjustment
& Other
Q1-20
Allowance for Credit Losses
$268
$3
$30
$214
$3
$177
$180
$181
$184
$24
$13
$11
$9
$9
$9
$7
$7
$9
$235
$187
$155
$160
$165
$168
ACL
Q1 2020 Highlights
⚫ CECL adoption impact of $37MM
comprised of ACL for Loans,
Unfunded Loan Commitments and
HTM Securities, $19.1MM,
$15.1MM and $2.6MM, respectively
- Capital impact related to CECL
adoption is phased in over 5
years
Provision expense of $51.2MM for
Q1, mainly driven by balance sheet
growth ($24MM) and change in
macroeconomic outlook ($30MM),
offset by net recoveries of $3.2MM
ACL balance of $268MM at Q1-20,
an increase of $54MM, driven by
the provision expense and $3.2MM
of net recoveries
Q1-19
Q2-19
Q3-19
Allowance for Loan & Lease Losses
■Credit Discounts
Dollars in millions
WA
Q4-19
1/1/2020
Unfunded Loan Commits.¹
■HTM Securities
1) Included as a component of other liabilities on the balance sheet
Q1-20
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