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Allowances for Loan and Lease Losses
 12 Months Ended
Dec. 31, 2018
Allowance For Loan And Lease Losses [Abstract]  
Allowances for Loan and Lease Losses
ALLOWANCE FOR LOAN AND LEASE LOSSES
We maintain the ALLL at levels that we believe to be appropriate to absorb estimated probable credit losses incurred in the portfolios as of the balance sheet date. We have two portfolio segments – Commercial Lending and Consumer Lending, and develop and document the ALLL under separate methodologies for each of these portfolio segments. See Note 1 Accounting Policies for a description of the accounting policies for the ALLL. A rollforward of the ALLL and associated loan data follows.
Table 44: Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data
 
 
2018
2017
2016
At or for the year ended December 31
Dollars in millions
 
Commercial
Lending

 
Consumer
Lending

 
Total

 
Commercial
Lending

 
Consumer
Lending

 
Total

 
Commercial
Lending

 
Consumer
Lending

 
Total

 
Allowance for Loan and Lease Losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
January 1
 
$
1,582

 
$
1,029

 
$
2,611

 
$
1,534

 
$
1,055

 
$
2,589

 
$
1,605

 
$
1,122

 
$
2,727

 
Charge-offs
 
(124
)
 
(640
)
 
(764
)
 
(221
)
 
(565
)
 
(786
)
 
(363
)
 
(523
)
 
(886
)
 
Recoveries
 
99

 
245

 
344

 
116

 
213

 
329

 
178

 
165

 
343

 
Net (charge-offs)
 
(25
)
 
(395
)
 
(420
)
 
(105
)
 
(352
)
 
(457
)
 
(185
)
 
(358
)
 
(543
)
 
Provision for credit losses
 
97

 
311

 
408

 
147

 
294

 
441

 
153

 
280

 
433

 
Net decrease / (increase) in allowance for unfunded loan commitments and letters of credit
 
11

 
1

 
12

 
5

 
(1
)
 
4

 
(39
)
 
(1
)
 
(40
)
 
Other
 
(2
)
 
20

 
18

 
1

 
33

 
34

 
 
 
12

 
12

 
December 31
 
$
1,663

 
$
966

 
$
2,629

 
$
1,582

 
$
1,029

 
$
2,611

 
$
1,534

 
$
1,055

 
$
2,589

 
TDRs individually evaluated for impairment
 
$
25

 
$
136

 
$
161

 
$
35

 
$
195

 
$
230

 
$
45

 
$
226

 
$
271

 
Other loans individually evaluated for impairment
 
48

 
 
 
48

 
41

 


 
41

 
60

 

 
60

 
Loans collectively evaluated for impairment
 
1,590

 
555

 
2,145

 
1,506

 
561

 
2,067

 
1,392

 
546

 
1,938

 
Purchased impaired loans
 
 
 
275

 
275

 
 
 
273

 
273

 
37

 
283

 
320

 
December 31
 
$
1,663

 
$
966

 
$
2,629

 
$
1,582

 
$
1,029

 
$
2,611

 
$
1,534

 
$
1,055

 
$
2,589

 
Loan Portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TDRs individually evaluated for impairment
 
$
409

 
$
1,442

 
$
1,851

 
$
409

 
$
1,652

 
$
2,061

 
$
428

 
$
1,793

 
$
2,221

 
Other loans individually evaluated for impairment
 
232

 
 
 
232

 
310

 
 
 
310

 
371

 

 
371

 
Loans collectively evaluated for impairment
 
151,641

 
69,722

 
221,363

 
146,720

 
68,102

 
214,822

 
137,047

 
67,345

 
204,392

 
Fair value option loans (a)
 
 
 
782

 
782

 


 
869

 
869

 

 
893

 
893

 
Purchased impaired loans
 
 
 
2,017

 
2,017

 
 
 
2,396

 
2,396

 
109

 
2,847

 
2,956

 
December 31
 
$
152,282

 
$
73,963

 
$
226,245

 
$
147,439

 
$
73,019

 
$
220,458

 
$
137,955

 
$
72,878

 
$
210,833

 
Portfolio segment ALLL as a percentage of total ALLL
 
63
%
 
37
%
 
100
%
 
61
%
 
39
%
 
100
%
 
59
%
 
41
%
 
100
%
 
Ratio of ALLL to total loans
 
1.09
%
 
1.31
%
 
1.16
%
 
1.07
%
 
1.41
%
 
1.18
%
 
1.11
%
 
1.45
%
 
1.23
%
 
(a)
Loans accounted for under the fair value option are not evaluated for impairment as these loans are accounted for at fair value. Accordingly there is no allowance recorded on these loans.
Net interest income less the provision for credit losses was $9.3 billion, $8.7 billion and $8.0 billion for 2018, 2017 and 2016, respectively.