Recoveries on loans previously charged off are added to the Provision for Loan Losses (PLL)account on a bank's income statement.

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Recoveries on loans previously charged off are not added to the Provision for Loan Losses (PLL); instead, they are typically credited against the charge-offs in the loan loss reserve or directly recognized in the income statement, improving the bank's net income.

Recoveries on Loans Previously Charged Off Are Added to the Provision