Allowance for Credit Losses

12 Months Ended

Dec. 31, 2013

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

NOTE 7 - ALLOWANCE FOR CREDIT LOSSES

The allowance for credit losses consists of the ALLL and the reserve for unfunded commitments. Activity in the allowance for credit losses for the years ended December 31 is summarized in the table below:

(Dollars in millions)	2013			2012			2011
Balance at beginning of period		$2,219			$2,505			$3,032
Provision for loan losses	548			1,398			1,523
Provision/(benefit) for unfunded commitments	5			(3		)	(10		)
Loan charge-offs	(869		)	(1,907		)	(2,241		)
Loan recoveries	191			226			201
Balance at end of period		$2,094			$2,219			$2,505
Components:
ALLL		$2,044			$2,174			$2,457
Unfunded commitments reserve1	50			45			48
Allowance for credit losses		$2,094			$2,219			$2,505

¹ The unfunded commitments reserve is recorded in other liabilities in the Consolidated Balance Sheets.

Activity in the ALLL by segment for the years ended December 31 is presented in the tables below:

	2013
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance at beginning of period		$902			$1,131			$141			$2,174
Provision for loan losses	197			243			108			548
Loan charge-offs	(219		)	(531		)	(119		)	(869		)
Loan recoveries	66			87			38			191
Balance at end of period		$946			$930			$168			$2,044
	2012
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance at beginning of period		$964			$1,354			$139			$2,457
Provision for loan losses	241			1,062			95			1,398
Loan charge-offs	(457		)	(1,316		)	(134		)	(1,907		)
Loan recoveries	154			31			41			226
Balance at end of period		$902			$1,131			$141			$2,174

As discussed in Note 1, “Significant Accounting Policies,” the ALLL is composed of both specific allowances for certain nonaccrual loans and TDRs and general allowances grouped into loan pools based on similar characteristics. No allowance is required for loans carried at fair value. Additionally, the Company records an immaterial allowance for loan products that are guaranteed by government agencies, as there is nominal risk of principal loss.

The Company’s LHFI portfolio and related ALLL is shown in the tables below:

	December 31, 2013
	Commercial				Residential				Consumer				Total
(Dollars in millions)	Carrying Value		Associated ALLL		Carrying Value		Associated ALLL		Carrying Value		Associated ALLL		Carrying Value		Associated ALLL
Individually evaluated		$171		$10		$2,878		$345		$110		$8		$3,159		$363
Collectively evaluated	64,139		936		40,010		585		20,267		160		124,416		1,681
Total evaluated	64,310		946		42,888		930		20,377		168		127,575		2,044
LHFI at fair value	—		—		302		—		—		—		302		—
Total LHFI		$64,310		$946		$43,190		$930		$20,377		$168		$127,877		$2,044
	December 31, 2012
	Commercial				Residential				Consumer				Total
(Dollars in millions)	Carrying Value		Associated ALLL		Carrying Value		Associated ALLL		Carrying Value		Associated ALLL		Carrying Value		Associated ALLL
Individually evaluated		$138		$7		$2,859		$348		$81		$9		$3,078		$364
Collectively evaluated	58,750		895		39,961		783		19,302		132		118,013		1,810
Total evaluated	58,888		902		42,820		1,131		19,383		141		121,091		2,174
LHFI at fair value	—		—		379		—		—		—		379		—
Total LHFI		$58,888		$902		$43,199		$1,131		$19,383		$141		$121,470		$2,174