Allowance for Credit Losses

12 Months Ended

Dec. 31, 2015

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 unfunded commitments reserve. Activity in the allowance for credit losses is summarized in the following table:

	Year Ended December 31
(Dollars in millions)	2015			2014			2013
Balance, beginning of period		$1,991			$2,094			$2,219
Provision for loan losses	156			338			548
Provision for unfunded commitments	9			4			5
Loan charge-offs	(470		)	(607		)	(869		)
Loan recoveries	129			162			191
Balance, end of period		$1,815			$1,991			$2,094
Components:
ALLL		$1,752			$1,937			$2,044
Unfunded commitments reserve 1	63			54			50
Allowance for credit losses		$1,815			$1,991			$2,094

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 following tables:

	2015
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$986			$777			$174			$1,937
Provision/(benefit) for loan losses	133			(67		)	90			156
Loan charge-offs	(117		)	(218		)	(135		)	(470		)
Loan recoveries	45			42			42			129
Balance, end of period		$1,047			$534			$171			$1,752
	2014
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, 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, end of period		$986			$777			$174			$1,937

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 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.

	December 31, 2015
	Commercial				Residential				Consumer				Total
(Dollars in millions)	Carrying Value		ALLL		Carrying Value		ALLL		Carrying Value		ALLL		Carrying Value		ALLL
Individually evaluated		$218		$28		$2,527		$252		$131		$7		$2,876		$287
Collectively evaluated	75,034		1,019		36,144		282		22,131		164		133,309		1,465
Total evaluated	75,252		1,047		38,671		534		22,262		171		136,185		1,752
LHFI at fair value	—		—		257		—		—		—		257		—
Total LHFI		$75,252		$1,047		$38,928		$534		$22,262		$171		$136,442		$1,752

	December 31, 2014
	Commercial				Residential				Consumer				Total
(Dollars in millions)	Carrying Value		ALLL		Carrying Value		ALLL		Carrying Value		ALLL		Carrying Value		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