Allowance for Credit Losses

12 Months Ended

Dec. 31, 2014

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 is summarized in the table below:

	Year Ended December 31
(Dollars in millions)	2014			2013			2012
Balance at beginning of period		$2,094			$2,219			$2,505
Provision for loan losses	338			548			1,398
(Benefit)/provision for unfunded commitments	4			5			(3		)
Loan charge-offs	(607		)	(869		)	(1,907		)
Loan recoveries	162			191			226
Balance at end of period		$1,991			$2,094			$2,219
Components:
ALLL		$1,937			$2,044			$2,174
Unfunded commitments reserve1	54			50			45
Allowance for credit losses		$1,991			$2,094			$2,219

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

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

	2014
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance at beginning of period		$946			$930			$168			$2,044
Provision for loan losses	111			126			101			338
Loan charge-offs	(128		)	(344		)	(135		)	(607		)
Loan recoveries	57			65			40			162
Balance at end of period		$986			$777			$174			$1,937
	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

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, 2014
	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		$92		$11		$2,563		$300		$126		$8		$2,781		$319
Collectively evaluated	73,300		975		35,940		477		20,819		166		130,059		1,618
Total evaluated	73,392		986		38,503		777		20,945		174		132,840		1,937
LHFI at fair value	—		—		272		—		—		—		272		—
Total LHFI		$73,392		$986		$38,775		$777		$20,945		$174		$133,112		$1,937

	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