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Allowances for Loan and Lease Losses
 6 Months Ended
Jun. 30, 2019
Allowance For Loan And Lease Losses [Abstract]  
Allowance 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 in our 2018 Form 10-K for a description of the accounting policies for the ALLL. A rollforward of the ALLL and associated loan data follows:
Table 43: Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data
 
 
2019
 
2018
 
At or for the six months ended June 30
Dollars in millions
 
Commercial
Lending

 
Consumer
Lending

 
Total

 
Commercial
Lending

 
Consumer
Lending

 
Total

 
Allowance for Loan and Lease Losses
 
 
 
 
 
 
 
 
 
 
 
 
 
January 1
 
$
1,663

 
$
966

 
$
2,629

 
$
1,582

 
$
1,029

 
$
2,611

 
Charge-offs
 
(84
)
 
(358
)
 
(442
)
 
(64
)
 
(322
)
 
(386
)
 
Recoveries
 
40

 
124

 
164

 
51

 
113

 
164

 
Net (charge-offs)
 
(44
)
 
(234
)
 
(278
)
 
(13
)
 
(209
)
 
(222
)
 
Provision for credit losses
 
187

 
182

 
369

 
56

 
116

 
172

 
Net (increase) / decrease in allowance for unfunded loan
  commitments and letters of credit
 
(7
)
 
1

 
(6
)
 
6

 
2

 
8

 
Other
 
 
 
7

 
7

 
(1
)
 
13

 
12

 
June 30
 
$
1,799


$
922


$
2,721

 
$
1,630

 
$
951

 
$
2,581

 
TDRs individually evaluated for impairment
 
$
33

 
$
123

 
$
156

 
$
29

 
$
147

 
$
176

 
Other loans individually evaluated for impairment
 
53

 
 
 
53

 
60

 
 
 
60

 
Loans collectively evaluated for impairment
 
1,713

 
517

 
2,230

 
1,541

 
523

 
2,064

 
Purchased impaired loans
 
 
 
282

 
282

 
 
 
281

 
281

 
June 30
 
$
1,799

 
$
922

 
$
2,721

 
$
1,630

 
$
951

 
$
2,581

 
Loan Portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
TDRs individually evaluated for impairment
 
$
396

 
$
1,381

 
$
1,777

 
$
324

 
$
1,544

 
$
1,868

 
Other loans individually evaluated for impairment
 
287

 
 
 
287

 
240

 
 
 
240

 
Loans collectively evaluated for impairment
 
160,920

 
71,605

 
232,525

 
149,072

 
68,711

 
217,783

 
Fair value option loans (a)
 
 
 
755

 
755

 
 
 
753

 
753

 
Purchased impaired loans
 
 
 
1,871

 
1,871

 
 
 
2,211

 
2,211

 
June 30
 
$
161,603

 
$
75,612

 
$
237,215

 
$
149,636

 
$
73,219

 
$
222,855

 
Portfolio segment ALLL as a percentage of total ALLL
 
66
%
 
34
%
 
100
%
 
63
%
 
37
%
 
100
%
 
Ratio of ALLL to total loans
 
1.11
%
 
1.22
%
 
1.15
%
 
1.09
%
 
1.30
%
 
1.16
%
 
(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.