Q2 Quarter 2023
ACL: Reflects Moody's revised economic forecast
ACL/ALLL1/Loans (%) and ACL/ALLL ($)²
$ in millions
Allowance for Credit Losses on Loans and Loan Coverage
ACL
ACL /
Loans
$ in millions
$250
$225
1.71%
2.00%
1.52%
1.80%
ACL as of 3/31/22
$ 178.9
1.49%
1.49%
$200
1.85%
1.41%
1.60%
1.27%
$175
1.40%
Q2 22 Provision
$150
1.20%
1.22% 1.25%
1.25%
Day 2 CECL Provision (Spirit)
30.3
$125
1.00%
$100
0.80%
0.46%
Q2 22 Net Charge-Offs
(0.7)
$75
0.60%
$50
0.40%
Day 1 PCD Allowance (Spirit)
4.1
$25
$68
$220
$238 $205
$179
$213 $198
$197
$207
$210
0.20%
$0
0.00%
ACL as of 6/30/22
$ 212.6
1.41%
2019
1/1/20
2020
2021
Q1 22
Q2 22
Q3 22
Q4 22
Q1 23
Q2 23
CECL
Adoption
Q3 22 Recapture of Provision
(15.9)
Q3 22 Net Charge-Offs
(0.2)
☐
ACL METHODOLOGY AS OF 6/30/23:
Moody's June 2023 scenarios with management's weighting:
Baseline (70%)/S1 (10%) / S3 (20%)
■ Total credit coverage / total commitments: 1.16%
Day 1 PCD Allowance Adjustment (Spirit)
1.1
ACL as of 9/30/22
$ 197.6
1.27%
Q4 22 Provision
Reserve for Unfunded Commitments
$ in millions
Q4 22 Net Charge-Offs
Day 1 PCD Allowance Adjustment (Spirit)
(5.1)
4.5
ACL as of 12/31/22
$ 197.0
1.22%
As of
6/30/22
As of
9/30/22
As of
12/31/22
As of
3/31/23
As of
6/30/23
Q1 23 Provision
10.9
Unfunded Commitments
$4,473
$5,138
$5,000
$4,725
$4,443
Q1 23 Net Charge-Offs
(1.3)
Reserve for Unfunded Commitments
$25.9
$41.9
$41.9
$41.9
$36.9
Provision for Unfunded Commitments
$3.5
$16.0
$(5.0)
Reserve Unfunded Balance
0.6%
0.8%
0.8%
0.9%
0.8%
$5.0 million
recapture of reserve
for unfunded
commitments in the
quarter reflects
decline in unfunded
commitments
ACL as of 3/31/23
$ 206.6
1.25%
Q2 Provision
5.1
Q2 23 Net Charge-Offs
(1.6)
ACL as of 6/30/23
$ 210.0
1.25%
Note: Numbers may not add due to rounding
ACL Allowance for Credit Losses on Loans
$5
(1) ALLL for 2017-2019 and ACL 2020-2023
(2) As of December 31, for each respective year shown above; quarterly data as of the end of the quarter for each respective period
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