Allowance for Credit Losses

9 Months Ended

Sep. 30, 2015

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

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 September 30						Nine Months Ended September 30
(Dollars in millions)	2015			2014			2015			2014
Balance, beginning of period		$1,886			$2,046			$1,991			$2,094
Provision for loan losses	23			93			107			275
Provision/(benefit) for unfunded commitments	9			—			7			(7		)
Loan charge-offs	(102		)	(164		)	(356		)	(473		)
Loan recoveries	31			36			98			122
Balance, end of period		$1,847			$2,011			$1,847			$2,011
Components:
ALLL								$1,786			$1,968
Unfunded commitments reserve 1							61			43
Allowance for credit losses								$1,847			$2,011

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

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

	Three Months Ended September 30, 2015
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$993			$676			$165			$1,834
Provision/(benefit) for loan losses	33			(39		)	29			23
Loan charge-offs	(23		)	(47		)	(32		)	(102		)
Loan recoveries	10			11			10			31
Balance, end of period		$1,013			$601			$172			$1,786
	Three Months Ended September 30, 2014
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$958			$875			$170			$2,003
Provision for loan losses	25			34			34			93
Loan charge-offs	(26		)	(104		)	(34		)	(164		)
Loan recoveries	14			12			10			36
Balance, end of period		$971			$817			$180			$1,968
	Nine Months Ended September 30, 2015
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$986			$777			$174			$1,937
Provision/(benefit) for loan losses	74			(30		)	63			107
Loan charge-offs	(82		)	(177		)	(97		)	(356		)
Loan recoveries	35			31			32			98
Balance, end of period		$1,013			$601			$172			$1,786
	Nine Months Ended September 30, 2014
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$946			$930			$168			$2,044
Provision for loan losses	82			114			79			275
Loan charge-offs	(97		)	(279		)	(97		)	(473		)
Loan recoveries	40			52			30			122
Balance, end of period		$971			$817			$180			$1,968

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 measured 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.

	September 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		$70		$7		$2,491		$255		$129		$7		$2,690		$269
Collectively evaluated	73,232		1,006		36,035		346		21,341		165		130,608		1,517
Total evaluated	73,302		1,013		38,526		601		21,470		172		133,298		1,786
LHFI at fair value	—		—		262		—		—		—		262		—
Total LHFI		$73,302		$1,013		$38,788		$601		$21,470		$172		$133,560		$1,786

	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