Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters Of Credit

3 Months Ended

Mar. 31, 2016

Allowance For Loan And Lease Losses [Abstract]

Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters Of Credit

Note 5Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit

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 use the two main portfolio segments – Commercial Lending and Consumer Lending – and develop and document the ALLL under separate methodologies for each of these segments as discussed in Note 1 Accounting Policies. A rollforward of the ALLL and associated loan data follows.

Table 58: Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data
				Commercial			Consumer
In millions				Lending			Lending				Total
March 31, 2016
	Allowance for Loan and Lease Losses
		January 1		$	1,605		$	1,122		$	2,727
		Charge-offs			(89)			(147)			(236)
		Recoveries			46			41			87
			Net (charge-offs) / recoveries		(43)			(106)			(149)
		Provision for credit losses			84			68			152
		Net change in allowance for unfunded loan commitments and letters of credit			(19)			(2)			(21)
		Net recoveries of purchased impaired loans						1			1
		Other			1						1
			March 31	$	1,628		$	1,083		$	2,711
		TDRs individually evaluated for impairment		$	49		$	261		$	310
		Other loans individually evaluated for impairment			115						115
		Loans collectively evaluated for impairment			1,414			560			1,974
		Purchased impaired loans			50			262			312
			March 31	$	1,628		$	1,083		$	2,711
	Loan Portfolio
		TDRs individually evaluated for impairment (a)		$	500		$	1,891		$	2,391
		Other loans individually evaluated for impairment			436						436
		Loans collectively evaluated for impairment (b)			134,045			66,338			200,383
		Fair value option loans (c)						895			895
		Purchased impaired loans			149			3,231			3,380
			March 31	$	135,130		$	72,355		$	207,485
	Portfolio segment ALLL as a percentage of total ALLL				60	%		40	%		100	%
	Ratio of the allowance for loan and lease losses to total loans (d)				1.20	%		1.50	%		1.31	%
March 31, 2015
	Allowance for Loan and Lease Losses
		January 1		$	1,571		$	1,760		$	3,331
		Charge-offs			(46)			(143)			(189)
		Recoveries			45			41			86
			Net charge-offs		(1)			(102)			(103)
		Provision for credit losses			(2)			56			54
		Net change in allowance for unfunded loan commitments and letters of credit			25						25
		Other			(1)						(1)
			March 31	$	1,592		$	1,714		$	3,306
		TDRs individually evaluated for impairment		$	47		$	295		$	342
		Other loans individually evaluated for impairment			70						70
		Loans collectively evaluated for impairment			1,395			638			2,033
		Purchased impaired loans			80			781			861
			March 31	$	1,592		$	1,714		$	3,306
	Loan Portfolio
		TDRs individually evaluated for impairment (a)		$	510		$	2,020		$	2,530
		Other loans individually evaluated for impairment			278						278
		Loans collectively evaluated for impairment (b)			128,611			67,627			196,238
		Fair value option loans (c)						1,001			1,001
		Purchased impaired loans			276			4,399			4,675
			March 31	$	129,675		$	75,047		$	204,722
	Portfolio segment ALLL as a percentage of total ALLL				48	%		52	%		100	%
	Ratio of the allowance for loan and lease losses to total loans				1.23	%		2.28	%		1.61	%
(a)	TDRs individually evaluated for impairment exclude TDRs that were subsequently accounted for as held for sale loans, but continue to be disclosed as TDRs.
(b)	Includes $143 million of loans collectively evaluated for impairment based upon collateral values and written down to the respective collateral value less costs to sell at March 31,
	2016 Accordingly, there is no allowance recorded for these loans. The comparative amount as of March 31, 2015 was $183 million.
(c)	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.
(d)	See Note 1 Accounting Policies in our 2015 Form 10-K for information on our change in derecognition policy effective December 31, 2015 for certain purchased impaired loans.

Allowance for Unfunded Loan Commitments and Letters of Credit

We maintain the allowance for unfunded loan commitments and letters of credit at a level we believe is appropriate to absorb estimated probable credit losses incurred on these unfunded credit facilities as of the balance sheet date as discussed in Note 1 Accounting Policies. A rollforward of the allowance is presented below.

Table 59: Rollforward of Allowance for Unfunded Loan Commitments and Letters of Credit
In millions		2016		2015
January 1	$	261	$	259
Net change in allowance for unfunded loan commitments and letters of credit		21		(25)
March 31	$	282	$	234