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 following table:



	Three Months Ended June 30						Six Months Ended June 30
(Dollars in millions)	2015			2014			2015			2014
Balance, beginning of period		$1,947			$2,086			$1,991			$2,094
Provision for loan losses	28			76			84			182
Benefit for unfunded commitments	(2		)	(3		)	(2		)	(7		)
Loan charge-offs	(123		)	(158		)	(254		)	(309		)
Loan recoveries	36			45			67			86
Balance, end of period		$1,886			$2,046			$1,886			$2,046

Components:
ALLL								$1,834			$2,003
Unfunded commitments reserve ¹							52			43
Allowance for credit losses								$1,886			$2,046

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

Activity in the ALLL by loan segment for the three and six months ended June 30, 2015 and 2014 is presented in the following tables:



	Three Months Ended June 30, 2015
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$976			$743			$174			$1,893
Provision for loan losses	33			(16		)	11			28
Loan charge-offs	(31		)	(61		)	(31		)	(123		)
Loan recoveries	15			10			11			36
Balance, end of period		$993			$676			$165			$1,834

	Three Months Ended June 30, 2014
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$966			$910			$164			$2,040
Provision for loan losses	18			32			26			76
Loan charge-offs	(38		)	(90		)	(30		)	(158		)
Loan recoveries	12			23			10			45
Balance, end of period		$958			$875			$170			$2,003

	Six Months Ended June 30, 2015
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$986			$777			$174			$1,937
Provision for loan losses	40			9			35			84
Loan charge-offs	(59		)	(129		)	(66		)	(254		)
Loan recoveries	26			19			22			67
Balance, end of period		$993			$676			$165			$1,834

	Six Months Ended June 30, 2014
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$946			$930			$168			$2,044
Provision for loan losses	57			80			45			182
Loan charge-offs	(71		)	(175		)	(63		)	(309		)
Loan recoveries	26			40			20			86
Balance, end of period		$958			$875			$170			$2,003

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.



	June 30, 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		$64		$5		$2,499		$273		$128		$7		$2,691		$285
Collectively evaluated	73,237		988		35,974		403		20,373		158		129,584		1,549
Total evaluated	73,301		993		38,473		676		20,501		165		132,275		1,834
LHFI at fair value	—		—		263		—		—		—		263		—
Total LHFI		$73,301		$993		$38,736		$676		$20,501		$165		$132,538		$1,834



	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