NOTE 6 - ALLOWANCE FOR CREDIT LOSSES

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



	Three Months Ended March 31
(Dollars in millions)	2015			2014
Balance at beginning of period		$1,991			$2,094
Provision for loan losses	55			106
Provision/(benefit) for unfunded commitments	—			(4		)
Loan charge-offs	(130		)	(151		)
Loan recoveries	31			41
Balance at end of period		$1,947			$2,086

Components:
ALLL		$1,893			$2,040
Unfunded commitments reserve ¹	54			46
Allowance for credit losses		$1,947			$2,086

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

Activity in the ALLL by loan segment for the three months ended March 31, 2015 and 2014 is presented in the tables below:



	Three Months Ended March 31, 2015
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance at beginning of period		$986			$777			$174			$1,937
Provision for loan losses	7			25			23			55
Loan charge-offs	(28		)	(68		)	(34		)	(130		)
Loan recoveries	11			9			11			31
Balance at end of period		$976			$743			$174			$1,893

	Three Months Ended March 31, 2014
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance at beginning of period		$946			$930			$168			$2,044
Provision for loan losses	39			48			19			106
Loan charge-offs	(33		)	(85		)	(33		)	(151		)
Loan recoveries	14			17			10			41
Balance at end of period		$966			$910			$164			$2,040

As discussed in Note 1, “Significant Accounting Policies,” to the Company's 2014 Annual report on Form 10-K, 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 presented in the following tables.



	March 31, 2015
	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		$80		$6		$2,561		$285		$126		$7		$2,767		$298
Collectively evaluated	73,367		970		35,616		458		20,362		167		129,345		1,595
Total evaluated	73,447		976		38,177		743		20,488		174		132,112		1,893
LHFI at fair value	—		—		268		—		—		—		268		—
Total LHFI		$73,447		$976		$38,445		$743		$20,488		$174		$132,380		$1,893



	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