Annual report pursuant to Section 13 and 15(d)

Allowance for Credit Losses

v3.19.3.a.u2
Allowance for Credit Losses
12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
Allowance for Credit Losses Allowance for Credit Losses
The table below summarizes the changes in the allowance for credit losses by portfolio segment for 2019, 2018 and 2017.
 
 
 
 
 
 
 
 
 
Consumer
Real Estate
 
Credit Card and Other Consumer
 
Commercial
 
Total
(Dollars in millions)
2019
Allowance for loan and lease losses, January 1
$
928

 
$
3,874

 
$
4,799

 
$
9,601

Loans and leases charged off
(522
)
 
(4,302
)
 
(822
)
 
(5,646
)
Recoveries of loans and leases previously charged off
927

 
911

 
160

 
1,998

Net charge-offs
405

 
(3,391
)
 
(662
)
 
(3,648
)
Provision for loan and lease losses
(680
)
 
3,512

 
742

 
3,574

Other (1)
(107
)
 
1

 
(5
)
 
(111
)
Allowance for loan and lease losses, December 31
546

 
3,996

 
4,874

 
9,416

Reserve for unfunded lending commitments, January 1

 

 
797

 
797

Provision for unfunded lending commitments

 

 
16

 
16

Reserve for unfunded lending commitments, December 31

 

 
813

 
813

Allowance for credit losses, December 31
$
546

 
$
3,996

 
$
5,687

 
$
10,229

 
 
 
 
 
 
 
 
 
2018
Allowance for loan and lease losses, January 1
$
1,720

 
$
3,663

 
$
5,010

 
$
10,393

Loans and leases charged off
(690
)
 
(4,037
)
 
(675
)
 
(5,402
)
Recoveries of loans and leases previously charged off
664

 
823

 
152

 
1,639

Net charge-offs
(26
)
 
(3,214
)
 
(523
)
 
(3,763
)
Provision for loan and lease losses
(492
)
 
3,441

 
313

 
3,262

Other (1)
(274
)
 
(16
)
 
(1
)
 
(291
)
Allowance for loan and lease losses, December 31
928

 
3,874

 
4,799

 
9,601

Reserve for unfunded lending commitments, January 1

 

 
777

 
777

Provision for unfunded lending commitments

 

 
20

 
20

Reserve for unfunded lending commitments, December 31

 

 
797

 
797

Allowance for credit losses, December 31
$
928

 
$
3,874

 
$
5,596

 
$
10,398

 
 
 
 
 
 
 
 
 
2017
Allowance for loan and lease losses, January 1
$
2,750

 
$
3,229

 
$
5,258

 
$
11,237

Loans and leases charged off
(770
)
 
(3,774
)
 
(1,075
)
 
(5,619
)
Recoveries of loans and leases previously charged off
657

 
809

 
174

 
1,640

Net charge-offs
(113
)
 
(2,965
)
 
(901
)
 
(3,979
)
Provision for loan and lease losses
(710
)
 
3,437

 
654

 
3,381

Other (1)
(207
)
 
(38
)
 
(1
)
 
(246
)
Allowance for loan and lease losses, December 31
1,720

 
3,663

 
5,010

 
10,393

Reserve for unfunded lending commitments, January 1

 

 
762

 
762

Provision for unfunded lending commitments

 

 
15

 
15

Reserve for unfunded lending commitments, December 31

 

 
777

 
777

Allowance for credit losses, December 31
$
1,720

 
$
3,663

 
$
5,787

 
$
11,170


(1) 
Primarily represents write-offs of purchased credit-impaired loans, the net impact of portfolio sales, and transfers to LHFS.
The table below presents the allowance and the carrying value of outstanding loans and leases by portfolio segment at December 31, 2019 and 2018.
 
 
 
 
 
 
 
 
 
Consumer
Real Estate
 
Credit Card and Other Consumer
 
Commercial
 
Total
(Dollars in millions)
December 31, 2019
Impaired loans and troubled debt restructurings (1)
 

 
 

 
 

 
 

Allowance for loan and lease losses
$
139

 
$
188

 
$
320

 
$
647

Carrying value (2)
5,982

 
679

 
2,764

 
9,425

Allowance as a percentage of carrying value
2.32
%
 
27.69
%
 
11.58
%
 
6.86
%
Loans collectively evaluated for impairment
 

 
 

 
 

 
 

Allowance for loan and lease losses
$
407

 
$
3,808

 
$
4,554

 
$
8,769

Carrying value (2, 3)
270,395

 
188,119

 
507,152

 
965,666

Allowance as a percentage of carrying value (3)
0.15
%
 
2.02
%
 
0.90
%
 
0.91
%
Total
 

 
 

 
 

 
 

Allowance for loan and lease losses
$
546

 
$
3,996

 
$
4,874

 
$
9,416

Carrying value (2, 3)
276,377

 
188,798

 
509,916

 
975,091

Allowance as a percentage of carrying value (3)
0.20
%
 
2.12
%
 
0.96
%
 
0.97
%
 
 
 
 
 
 
 
 
 
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 $8.3 billion and $4.3 billion at December 31, 2019 and 2018.