Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2021

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Rollforward of the Allowance for Loan Losses by Portfolio Segment

The following table provides a rollforward of the allowance for loan and lease losses and the reserve for unfunded lending commitments by portfolio type for December 31, 2021, 2020 and 2019:

Table 8.5.1

ROLLFORWARD OF ALLL & RESERVE FOR UNFUNDED LENDING COMMITMENTS

(Dollars in millions)	Commercial, Financial, and Industrial (a)		Commercial Real Estate		Consumer Real Estate		Credit Card and Other		Total
Allowance for loan and lease losses:
Balance as of January 1, 2021	$	453	$	242	$	242	$	26	$	963
Charge-offs	(34)		(5)		(5)		(15)		(59)
Recoveries	21		5		27		4		57
Provision for loan and lease losses	(106)		(88)		(101)		4		(291)
Balance as of December 31, 2021	334		154		163		19		670
Reserve for remaining unfunded commitments:
Balance as of January 1, 2021	65		10		10		—		85
Provision for unfunded lending commitments	(19)		2		(2)		—		(19)
Balance as of December 31, 2021	46		12		8		—		66
Allowance for credit losses as of December 31, 2021	$	380	$	166	$	171	$	19	$	736
Allowance for loan and lease losses:
Balance as of January 1, 2020	$	123	$	36	$	28	$	13	$	200
Adoption of ASU 2016-13	19		(7)		93		2		107
Balance as of January 1, 2020, as adjusted	142		29		121		15		307
Charge-offs (b)	(129)		(5)		(8)		(14)		(156)
Recoveries	9		4		18		5		36
Initial allowance on loans purchased with credit deterioration (b)	138		100		44		5		287
Provision for loan and lease losses (c)	293		114		67		15		489
Balance as of December 31, 2020	453		242		242		26		963
Reserve for remaining unfunded commitments:
Balance as of January 1, 2020	4		2		—		—		6
Adoption of ASU 2016-13	17		1		6		—		24
Balance as of January 1, 2020, as adjusted	21		3		6		—		30
Initial reserve on loans acquired	12		26		3		—		41
Provision for unfunded lending commitments	32		(19)		1		—		14
Balance as of December 31, 2020	65		10		10		—		85
Allowance for credit losses as of December 31, 2020	$	518	$	252	$	252	$	26	$	1,048
Allowance for loan losses
Balance as of January 1, 2019	$	99	$	31	$	37	$	13	$	180
Charge-offs	(34)		(1)		(8)		(16)		(59)
Recoveries	7		1		20		4		32
Provision for loan losses	51		5		(21)		12		47
Balance as of December 31, 2019	123		36		28		13		200
Reserve for remaining unfunded commitments:
Balance as of January 1, 2019	4		3		—		—		7
Provision for unfunded lending commitments	—		(1)		—		—		(1)
Balance as of December 31, 2019	4		2		—		—		6
Allowance for credit losses as of December 31, 2019	$	127	$	38	$	28	$	13	$	206

(a)    C&I loans as of December 31, 2021 and 2020 include $1.0 billion and $4.1 billion in PPP loans which due to the government guarantee and forgiveness provisions are considered to have no credit risk and therefore have no allowance for loan and lease losses.

(b)    The year ended December 31, 2020 excludes day 1 charge-offs and the related initial allowance on PCD loans is net of these amounts. Under ASC 326, the initial ALLL recognized on PCD assets included an additional $237 million for charged-off loans that had been written off prior to acquisition (whether full or partial) or which met FHN's charge-off policy at the time of acquisition. After charging these amounts off immediately upon acquisition, the net impact was $287 million of additional ALLL for PCD loans.

(c)    Provision for loan and lease losses for the year ended December 31, 2020 includes $147 million recognized on non-PCD loans from the IBKC merger and Truist branch acquisition.