Allowance for Credit Losses

6 Months Ended

Jun. 30, 2019

Allowance for Credit Losses [Abstract]

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 by LHFI segment is presented in the following tables:



	Three Months Ended June 30, 2019									Six Months Ended June 30, 2019
(Dollars in millions)	Commercial			Consumer			Total			Commercial			Consumer			Total
ALLL, beginning of period		$1,136			$507			$1,643			$1,080			$535			$1,615
Provision for loan losses	82			41			123			166			113			279
Loan charge-offs	(20		)	(93		)	(113		)	(53		)	(185		)	(238		)
Loan recoveries	4			24			28			9			47			56
Other¹	—			—			—			—			(31		)	(31		)
ALLL, end of period	1,202			479			1,681			1,202			479			1,681

Unfunded commitments reserve, beginning of period ²	66			—			66			69			—			69
Provision for unfunded commitments	4			—			4			1			—			1
Unfunded commitments reserve, end of period ²	70			—			70			70			—			70

Allowance for credit losses, end of period		$1,272			$479			$1,751			$1,272			$479			$1,751

¹ Represents the allowance for restructured loans that were transferred from LHFI to LHFS in the first quarter of 2019 and subsequently sold in the second quarter of 2019.

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



	Three Months Ended June 30, 2018									Six Months Ended June 30, 2018
(Dollars in millions)	Commercial			Consumer			Total			Commercial			Consumer			Total
ALLL, beginning of period		$1,068			$626			$1,694			$1,101			$634			$1,735
Provision for loan losses	17			12			29			1			66			67
Loan charge-offs	(21		)	(80		)	(101		)	(44		)	(163		)	(207		)
Loan recoveries	4			24			28			10			45			55
ALLL, end of period	1,068			582			1,650			1,068			582			1,650

Unfunded commitments reserve, beginning of period ¹	69			—			69			79			—			79
Provision/(benefit) for unfunded commitments	3			—			3			(7		)	—			(7		)
Unfunded commitments reserve, end of period ¹	72			—			72			72			—			72

Allowance for credit losses, end of period		$1,140			$582			$1,722			$1,140			$582			$1,722

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

As discussed in Note 1, “Significant Accounting Policies,” to the Company's 2018 Annual Report on Form 10-K, the ALLL is composed of both specific allowances for certain nonaccrual loans and TDRs, and general allowances for groups of LHFI with similar risk characteristics. No allowance is required for LHFI

measured at fair value. Additionally, the Company records an immaterial allowance for LHFI 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:



	June 30, 2019
	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		$302		$49		$1,908		$116		$2,210		$165
Collectively evaluated	83,689		1,153		70,563		363		154,252		1,516
Total evaluated	83,991		1,202		72,471		479		156,462		1,681
LHFI measured at fair value	—		—		127		—		127		—
Total LHFI		$83,991		$1,202		$72,598		$479		$156,589		$1,681



	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