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Allowance for Credit Losses

3 Months Ended

Mar. 31, 2012

Loans, Allowance for Credit Losses and Loans Held for Sale [Abstract]

7. Allowance for Credit Losses

An analysis of the allowance for credit losses is presented in the following table:


Three Months Ended March 31,	2012			2011
	(in millions)
Balance at beginning of period	$	743		$	852
Provision for credit losses		-			(2	)
Charge-offs		(162	)		(92	)
Recoveries		22			13

Balance at end of period	$	603		$	771

The following table summarizes the changes in the allowance for credit losses by product and the related loan balance by product during the three months ended March 31, 2012 and 2011:


	Commercial												Consumer
	Construction and Other Real Estate			Business Banking and Middle Market Enterprises			Global banking			Other Comm’l			Residential Mortgage, Excl Home Equity Mortgages			Home Equity Mortgages			Credit Card			Other Consumer			Total
	(in millions)
Three Months Ended March 31, 2012:
Allowance for credit losses – beginning of period	$	212		$	78		$	131		$	21		$	192		$	52		$	39		$	18		$	743
Provision charged to income		(20	)		6			(22	)		(2	)		15			8			11			4			-
Charge offs		(1	)		(10	)		(84	)		-			(26	)		(17	)		(17	)		(7	)		(162	)
Recoveries		14			2			-			1			1			-			2			2			22

Net charge offs		13			(8	)		(84	)		1			(25	)		(17	)		(15	)		(5	)		(140	)
Allowance on loans transferred to held for sale		-			-			-			-			-			-			-			-			-
Other		-			-			-			-			-			-			-			-			-

Allowance for credit losses – end of period	$	205		$	76		$	25		$	20		$	182		$	43		$	35		$	17		$	603

Ending balance: collectively evaluated for impairment	$	95		$	64		$	25		$	20		$	95		$	39		$	29		$	17		$	384
Ending balance: individually evaluated for impairment⁽¹⁾		110			12			-			-			87			4			6			-			219

Total allowance for credit losses	$	205		$	76		$	25		$	20		$	182		$	43		$	35		$	17		$	603

Loans:
Collectively evaluated for impairment	$	7,122		$	10,750		$	13,834		$	2,962		$	12,990		$	2,477		$	767		$	679		$	51,581
Individually evaluated for impairment		655			139			18			89			596			14			19			-			1,530
Loans carried at the lower of amortized cost or fair value less cost to sell		-			-			-			-			758			-			-			-			758

Total loans	$	7,777		$	10,889		$	13,852		$	3,051		$	14,344		$	2,491		$	786		$	679		$	53,869

Three Months Ended March 31, 2011:
Allowance for credit losses – beginning of period	$	243		$	132		$	116		$	32		$	167		$	77		$	58		$	27		$	852
Provision charged to income		(28	)		(1	)		(5	)		(10	)		19			11			8			4			(2	)
Charge offs		(4	)		(14	)		-			-			(26	)		(20	)		(21	)		(7	)		(92	)
Recoveries		6			2			-			1			1			-			3			-			13

Net charge offs		2			(12	)		-			1			(25	)		(20	)		(18	)		(7	)		(79	)
Allowance on loans transferred to held for sale		-			-			-			-			-			-			-			-			-
Other		-			-			-			-			-			-			-			-			-

Allowance for credit losses – end of period	$	217		$	119		$	111		$	23		$	161		$	68		$	48		$	24		$	771

Ending balance: collectively evaluated for impairment	$	129		$	91		$	41		$	18		$	100		$	64		$	40		$	24		$	507
Ending balance: individually evaluated for impairment⁽¹⁾		88			28			70			5			61			4			8			-			264

Total allowance for credit losses	$	217		$	119		$	111		$	23		$	161		$	68		$	48		$	24		$	771

Loans:
Collectively evaluated for impairment	$	7,462		$	7,857		$	11,808		$	2,497		$	12,668		$	3,669		$	1,157		$	982		$	48,100
Individually evaluated for impairment		819			166			74			104			452			9			25			-			1,649
Loans carried at the lower of amortized cost or fair value less cost to sell		-			-			-			-			748			-			-			-			748

Total loans	$	8,281		$	8,023		$	11,882		$	2,601		$	13,868		$	3,678		$	1,182		$	982		$	50,497

⁽¹⁾

For consumer loans, these amounts represent TDR Loans for which we evaluate reserves using a discounted cash flow methodology. Each loan is individually identified as a TDR Loan and then grouped together with other TDR Loans with similar characteristics. The discounted cash flow analysis is then applied to these groups of TDR Loans.