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

6 Months Ended

Jun. 30, 2016

Allowance For Loan And Lease Losses [Abstract]

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

Note 4 Allowances 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 of our 2015 Form 10-K. A rollforward of the ALLL and associated loan data follows.

Table 56: Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data
				Commercial			Consumer
In millions				Lending			Lending				Total
June 30, 2016
	Allowance for Loan and Lease Losses
		January 1		$	1,605		$	1,122		$	2,727
		Charge-offs			(187)			(262)			(449)
		Recoveries			88			78			166
			Net (charge-offs) / recoveries		(99)			(184)			(283)
		Provision for credit losses			153			126			279
		Net change in allowance for unfunded loan commitments and letters of credit			(41)			(1)			(42)
		Net recoveries of purchased impaired loans						4			4
			June 30	$	1,618		$	1,067		$	2,685
		TDRs individually evaluated for impairment		$	103		$	254		$	357
		Other loans individually evaluated for impairment			64						64
		Loans collectively evaluated for impairment			1,407			532			1,939
		Purchased impaired loans			44			281			325
			June 30	$	1,618		$	1,067		$	2,685
	Loan Portfolio
		TDRs individually evaluated for impairment (a)		$	588		$	1,860		$	2,448
		Other loans individually evaluated for impairment			372						372
		Loans collectively evaluated for impairment (b)			135,924			66,225			202,149
		Fair value option loans (c)						851			851
		Purchased impaired loans			138			3,098			3,236
			June 30	$	137,022		$	72,034		$	209,056
	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)				1.18	%		1.48	%		1.28	%
June 30, 2015
	Allowance for Loan and Lease Losses
		January 1		$	1,571		$	1,760		$	3,331
		Charge-offs			(108)			(284)			(392)
		Recoveries			134			88			222
			Net charge-offs		26			(196)			(170)
		Provision for credit losses			20			80			100
		Net change in allowance for unfunded loan commitments and letters of credit			13						13
		Other			(2)						(2)
			June 30	$	1,628		$	1,644		$	3,272
		TDRs individually evaluated for impairment		$	35		$	274		$	309
		Other loans individually evaluated for impairment			65						65
		Loans collectively evaluated for impairment			1,461			582			2,043
		Purchased impaired loans			67			788			855
			June 30	$	1,628		$	1,644		$	3,272
	Loan Portfolio
		TDRs individually evaluated for impairment (a)		$	414		$	2,002		$	2,416
		Other loans individually evaluated for impairment			282						282
		Loans collectively evaluated for impairment (b)			129,791			67,258			197,049
		Fair value option loans (c)						941			941
		Purchased impaired loans			235			4,230			4,465
			June 30	$	130,722		$	74,431		$	205,153
	Portfolio segment ALLL as a percentage of total ALLL				50	%		50	%		100	%
	Ratio of the allowance for loan and lease losses to total loans				1.25	%		2.21	%		1.59	%
(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 $149 million of loans collectively evaluated for impairment based upon collateral values and written down to the respective collateral value less costs to sell at June 30,
	2016. Accordingly, there is no allowance recorded on these loans. The comparative amount as of June 30, 2015 was $174 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 of our 2015 Form 10-K. A rollforward of the allowance is presented below.

Table 57: 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		42		(13)
June 30	$	303	$	246