ALLOWANCE FOR CREDIT LOSSES

The following table presents ACL activity by portfolio segment.


(dollar amounts in millions)	Commercial	Consumer	Total
Three months ended June 30, 2026
ALLL balance, beginning of period	$2,305	$938	$3,243
Loan and lease charge-offs	(116)	(75)	(191)
Recoveries of loans and leases previously charged-off	50	22	72
Provision for loan and lease losses	100	25	125
ALLL balance, end of period	$2,339	$910	$3,249
AULC balance, beginning of period	$98	$27	$125
Provision (benefit) for unfunded lending commitments	4	3	7
AULC balance, end of period	$102	$30	$132
ACL balance, end of period	$2,441	$940	$3,381
Three months ended June 30, 2025
ALLL balance, beginning of period	$1,520	$743	$2,263
Loan and lease charge-offs	(56)	(55)	(111)
Recoveries of loans and leases previously charged-off	25	20	45
Provision for loan and lease losses	59	75	134
ALLL balance, end of period	$1,548	$783	$2,331
AULC balance, beginning of period	$158	$57	$215
Provision (benefit) for unfunded lending commitments	(34)	3	(31)
AULC balance, end of period	$124	$60	$184
ACL balance, end of period	$1,672	$843	$2,515
Six months ended June 30, 2026
ALLL balance, beginning of period	$1,731	$806	$2,537
Loan and lease charge-offs (1)	(214)	(150)	(364)
Recoveries of loans and leases previously charged-off	92	42	134
Provision for loan and lease losses	292	83	375
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	$2,339	$910	$3,249
AULC balance, beginning of period	$145	$61	$206
Provision (benefit) for unfunded lending commitments	(46)	(39)	(85)
Allowance for unfunded lending commitments at acquisition	3	8	11
AULC balance, end of period	$102	$30	$132
ACL balance, end of period	$2,441	$940	$3,381
Six months ended June 30, 2025
ALLL balance, beginning of period	$1,484	$760	$2,244
Loan and lease charge-offs	(130)	(114)	(244)
Recoveries of loans and leases previously charged-off	55	37	92
Provision for loan and lease losses	139	100	239
ALLL balance, end of period	$1,548	$783	$2,331
AULC balance, beginning of period	$144	$58	$202
Provision (benefit) for unfunded lending commitments	(20)	2	(18)
AULC balance, end of period	$124	$60	$184
ACL balance, end of period	$1,672	$843	$2,515

(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 June 30, 2026, the ACL was $3.4 billion, a $638 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 June 30, 2026 is reflective of the current macroeconomic

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

The commercial ACL was $2.4 billion at June 30, 2026, a $565 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 and leases during the first six months of 2026. The consumer ACL was

$940 million at June 30, 2026, an increase of $73 million from December 31, 2025, with the increase due primarily to

$129 million of ALLL recorded for consumer loans acquired in the Cadence transaction.

For purposes of determining the ACL at June 30, 2026, we utilized a baseline economic scenario that assumes

the labor market has softened, with the unemployment rate peaking at 4.6% in the fourth quarter of 2026 and

expected to remain elevated at 4.6% in the first half of 2027. The Federal Reserve projected to continue the current

cycle of rate cuts, but cuts are expected later in 2026 and 2027, with the federal funds rate projected to return to 3%

by 2028. Inflation is forecasted to remain above the Federal Reserve’s target level of 2%, with inflation still at or near

3% by the end of 2026. Forecasted GDP growth moderated in the first quarter, with growth projected at

approximately 2.2% in 2026 before easing below 2% in 2027.

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, the expected path of

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 June 30, 2026 ACL included a general

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