Allowance for Credit Losses

12 Months Ended

Dec. 31, 2018

Allowance for Credit Losses [Abstract]

Allowance for Credit Losses

NOTE 8 - 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 by loan segment is presented in the following tables:

	Year Ended December 31, 2018
(Dollars in millions)	Commercial			Consumer			Total
ALLL, beginning of period		$1,101			$634			$1,735
Provision for loan losses	86			132			218
Loan charge-offs	(131		)	(322		)	(453		)
Loan recoveries	24			91			115
ALLL, end of period	1,080			535			1,615
Unfunded commitments reserve, beginning of period 1	79			—			79
Benefit for unfunded commitments	(10		)	—			(10		)
Unfunded commitments reserve, end of period 1	69			—			69
Allowance for credit losses, end of period		$1,149			$535			$1,684

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

	Year Ended December 31, 2017
(Dollars in millions)	Commercial			Consumer			Total
ALLL, beginning of period		$1,124			$585			$1,709
Provision for loan losses	108			289			397
Loan charge-offs	(167		)	(324		)	(491		)
Loan recoveries	40			84			124
Other 1	(4		)	—			(4		)
ALLL, end of period	1,101			634			1,735
Unfunded commitments reserve, beginning of period 2	67			—			67
Provision for unfunded commitments	12			—			12
Unfunded commitments reserve, end of period 2	79			—			79
Allowance for credit losses, end of period		$1,180			$634			$1,814

¹ Related to loans disposed in connection with the sale of PAC. For additional information regarding the sale of PAC, see Note 3, "Acquisitions/Dispositions."

² The unfunded commitments reserve is recorded in Other liabilities in the Consolidated Balance Sheets.

	Year Ended December 31, 2016
(Dollars in millions)	Commercial			Consumer			Total
ALLL, beginning of period		$1,047			$705			$1,752
Provision for loan losses	329			111			440
Loan charge-offs	(287		)	(304		)	(591		)
Loan recoveries	35			73			108
ALLL, end of period	1,124			585			1,709
Unfunded commitments reserve, beginning of period 1	63			—			63
Provision for unfunded commitments	4			—			4
Unfunded commitments reserve, end of period 1	67			—			67
Allowance for credit losses, end of period		$1,191			$585			$1,776

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

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 for groups of loans with similar risk characteristics. No allowance is

required for loans measured at fair value. Additionally, the Company records an immaterial allowance for loan products that are insured by federal agencies or guaranteed by GSEs, as there is nominal risk of principal loss.

The Company’s LHFI portfolio and related ALLL are presented in the following tables:

	December 31, 2018
	Commercial Loans				Consumer Loans				Total
(Dollars in millions)	Carrying Value		Related ALLL		Carrying Value		Related ALLL		Carrying Value		Related ALLL
LHFI evaluated for impairment:
Individually evaluated		$149		$13		$2,462		$154		$2,611		$167
Collectively evaluated	80,791		1,067		68,274		381		149,065		1,448
Total evaluated	80,940		1,080		70,736		535		151,676		1,615
LHFI measured at fair value	—		—		163		—		163		—
Total LHFI		$80,940		$1,080		$70,899		$535		$151,839		$1,615

	December 31, 2017
	Commercial Loans				Consumer Loans				Total
(Dollars in millions)	Carrying Value		Related ALLL		Carrying Value		Related ALLL		Carrying Value		Related ALLL
LHFI evaluated for impairment:
Individually evaluated		$173		$21		$2,648		$183		$2,821		$204
Collectively evaluated	75,304		1,080		64,860		451		140,164		1,531
Total evaluated	75,477		1,101		67,508		634		142,985		1,735
LHFI measured at fair value	—		—		196		—		196		—
Total LHFI		$75,477		$1,101		$67,704		$634		$143,181		$1,735