Quarterly report pursuant to Section 13 or 15(d)

Allowance for Credit Losses (Tables)

v3.19.2
Allowance for Credit Losses (Tables)
6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Changes in the Allowance for Credit Losses
The table below summarizes the changes in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2019 and 2018 .
 
 
 
 
 
 
 
 
 
Consumer
Real Estate
 
Credit Card and Other Consumer
 
Commercial
 
Total
(Dollars in millions)
Three Months Ended June 30, 2019
Allowance for loan and lease losses, April 1
$
822

 
$
3,934

 
$
4,821

 
$
9,577

Loans and leases charged off
(153
)
 
(1,075
)
 
(233
)
 
(1,461
)
Recoveries of loans and leases previously charged off
305

 
232

 
37

 
574

Net charge-offs
152

 
(843
)
 
(196
)
 
(887
)
Provision for loan and lease losses
(239
)
 
879

 
213

 
853

Other (1)
(16
)
 

 

 
(16
)
Allowance for loan and lease losses, June 30
719

 
3,970

 
4,838

 
9,527

Reserve for unfunded lending commitments, April 1

 

 
802

 
802

Provision for unfunded lending commitments

 

 
4

 
4

Reserve for unfunded lending commitments, June 30

 

 
806

 
806

Allowance for credit losses, June 30
$
719

 
$
3,970

 
$
5,644

 
$
10,333

 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2018
Allowance for loan and lease losses, April 1
$
1,530

 
$
3,720

 
$
5,010

 
$
10,260

Loans and leases charged off
(137
)
 
(1,033
)
 
(208
)
 
(1,378
)
Recoveries of loans and leases previously charged off
130

 
210

 
42

 
382

Net charge-offs
(7
)
 
(823
)
 
(166
)
 
(996
)
Provision for loan and lease losses
(121
)
 
878

 
65

 
822

Other (1)
(36
)
 
(1
)
 
1

 
(36
)
Allowance for loan and lease losses, June 30
1,366

 
3,774

 
4,910

 
10,050

Reserve for unfunded lending commitments, April 1

 

 
782

 
782

Provision for unfunded lending commitments

 

 
5

 
5

Reserve for unfunded lending commitments, June 30

 

 
787

 
787

Allowance for credit losses, June 30
$
1,366

 
$
3,774

 
$
5,697

 
$
10,837

 
 
 
 
 
 
 
 
(Dollars in millions)
Six Months Ended June 30, 2019
Allowance for loan and lease losses, January 1
$
928

 
$
3,874

 
$
4,799

 
$
9,601

Loans and leases charged off
(256
)
 
(2,132
)
 
(410
)
 
(2,798
)
Recoveries of loans and leases previously charged off
413

 
449

 
58

 
920

Net charge-offs
157

 
(1,683
)
 
(352
)
 
(1,878
)
Provision for loan and lease losses
(309
)
 
1,779

 
391

 
1,861

Other (1)
(57
)
 

 

 
(57
)
Allowance for loan and lease losses, June 30
719

 
3,970

 
4,838

 
9,527

Reserve for unfunded lending commitments, January 1

 

 
797

 
797

Provision for unfunded lending commitments

 

 
9

 
9

Reserve for unfunded lending commitments, June 30

 

 
806

 
806

Allowance for credit losses, June 30
$
719

 
$
3,970

 
$
5,644

 
$
10,333

 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
Allowance for loan and lease losses, January 1
$
1,720

 
$
3,663

 
$
5,010

 
$
10,393

Loans and leases charged off
(311
)
 
(2,039
)
 
(324
)
 
(2,674
)
Recoveries of loans and leases previously charged off
277

 
413

 
77

 
767

Net charge-offs
(34
)
 
(1,626
)
 
(247
)
 
(1,907
)
Provision for loan and lease losses
(249
)
 
1,754

 
146

 
1,651

Other (1)
(71
)
 
(17
)
 
1

 
(87
)
Allowance for loan and lease losses, June 30
1,366

 
3,774

 
4,910

 
10,050

Reserve for unfunded lending commitments, January 1

 

 
777

 
777

Provision for unfunded lending commitments

 

 
10

 
10

Reserve for unfunded lending commitments, June 30

 

 
787

 
787

Allowance for credit losses, June 30
$
1,366

 
$
3,774

 
$
5,697

 
$
10,837


(1) 
Primarily represents write-offs of purchased credit-impaired loans, the net impact of portfolio sales, consolidations and deconsolidations, foreign currency translation adjustments, transfers to held for sale, and certain other reclassifications.
The table below presents the allowance and the carrying value of outstanding loans and leases by portfolio segment at June 30, 2019 and December 31, 2018.
 
 
 
 
 
 
 
 
 
Consumer
Real Estate
 
Credit Card and Other Consumer
 
Commercial
 
Total
(Dollars in millions)
June 30, 2019
Impaired loans and troubled debt restructurings (1)
 

 
 

 
 

 
 

Allowance for loan and lease losses
$
176

 
$
174

 
$
168

 
$
518

Carrying value (2)
7,252

 
627

 
2,397

 
10,276

Allowance as a percentage of carrying value
2.43
%
 
27.75
%
 
7.01
%
 
5.04
%
Loans collectively evaluated for impairment
 

 
 

 
 

 
 

Allowance for loan and lease losses
$
543

 
$
3,796

 
$
4,670

 
$
9,009

Carrying value (2, 3)
256,811

 
184,386

 
504,464

 
945,661

Allowance as a percentage of carrying value (3)
0.21
%
 
2.06
%
 
0.93
%
 
0.95
%
Total
 

 
 

 
 

 
 

Allowance for loan and lease losses
$
719

 
$
3,970

 
$
4,838

 
$
9,527

Carrying value (2, 3)
264,063

 
185,013

 
506,861

 
955,937

Allowance as a percentage of carrying value (3)
0.27
%
 
2.15
%
 
0.95
%
 
1.00
%
 
 
 
 
 
 
 
 
 
December 31, 2018
Impaired loans and troubled debt restructurings (1)
 

 
 

 
 

 
 

Allowance for loan and lease losses
$
258

 
$
154

 
$
196

 
$
608

Carrying value (2)
8,556

 
566

 
2,433

 
11,555

Allowance as a percentage of carrying value
3.02
%
 
27.21
%
 
8.06
%
 
5.26
%
Loans collectively evaluated for impairment
 

 
 

 
 

 
 
Allowance for loan and lease losses
$
670

 
$
3,720

 
$
4,603

 
$
8,993

Carrying value (2, 3)
248,287

 
189,140

 
493,564

 
930,991

Allowance as a percentage of carrying value (3)
0.27
%
 
1.97
%
 
0.93
%
 
0.97
%
Total
 

 
 

 
 

 
 
Allowance for loan and lease losses
$
928

 
$
3,874

 
$
4,799

 
$
9,601

Carrying value (2, 3)
256,843

 
189,706

 
495,997

 
942,546

Allowance as a percentage of carrying value (3)
0.36
%
 
2.04
%
 
0.97
%
 
1.02
%

(1) 
Impaired loans include nonperforming commercial loans and leases, as well as all TDRs, including both commercial and consumer TDRs. Impaired loans exclude nonperforming consumer loans unless they are TDRs, and all consumer and commercial loans accounted for under the fair value option.
(2) 
Amounts are presented gross of the allowance for loan and lease losses.
(3) 
Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of $7.9 billion and $4.3 billion at June 30, 2019 and December 31, 2018.