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)	2016			2015			2016			2015
Balance, beginning of period		$1,831			$1,947			$1,815			$1,991
Provision for loan losses	141			28			243			84
Provision/(benefit) for unfunded commitments	5			(2		)	3			(2		)
Loan charge-offs	(167		)	(123		)	(278		)	(254		)
Loan recoveries	30			36			57			67
Balance, end of period		$1,840			$1,886			$1,840			$1,886

Components:
ALLL								$1,774			$1,834
Unfunded commitments reserve ¹							66			52
Allowance for credit losses								$1,840			$1,886

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 June 30, 2016 and 2015 is presented in the following tables:



	Three Months Ended June 30, 2016
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$1,123			$467			$180			$1,770
Provision/(benefit) for loan losses	114			(4		)	31			141
Loan charge-offs	(99		)	(33		)	(35		)	(167		)
Loan recoveries	9			9			12			30
Balance, end of period		$1,147			$439			$188			$1,774

	Three Months Ended June 30, 2015
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$976			$743			$174			$1,893
Provision/(benefit) 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

	Six Months Ended June 30, 2016
(Dollars in millions)	Commercial			Residential			Consumer			Total
Balance, beginning of period		$1,047			$534			$171			$1,752
Provision/(benefit) for loan losses	212			(37		)	68			243
Loan charge-offs	(131		)	(73		)	(74		)	(278		)
Loan recoveries	19			15			23			57
Balance, end of period		$1,147			$439			$188			$1,774

	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

As discussed in Note 1, “Significant Accounting Policies,” to the Company's 2015 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.



	June 30, 2016
	Commercial				Residential				Consumer				Total
(Dollars in millions)	Carrying Value		ALLL		Carrying Value		ALLL		Carrying Value		ALLL		Carrying Value		ALLL
Individually evaluated		$385		$43		$2,567		$236		$127		$7		$3,079		$286
Collectively evaluated	77,063		1,104		36,636		203		24,632		181		138,331		1,488
Total evaluated	77,448		1,147		39,203		439		24,759		188		141,410		1,774
LHFI at fair value	—		—		246		—		—		—		246		—
Total LHFI		$77,448		$1,147		$39,449		$439		$24,759		$188		$141,656		$1,774



	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