Quarterly report pursuant to Section 13 or 15(d)

Outstanding Loans and Leases and Allowance for Credit Losses (Tables)

v3.20.2
Outstanding Loans and Leases and Allowance for Credit Losses (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Schedule of Loans and Leases Outstanding
The following tables present total outstanding loans and leases and an aging analysis for the Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments, by class of financing receivables, at September 30, 2020 and December 31, 2019.
30-59 Days Past Due (1)
60-89 Days Past Due (1)
90 Days or
More
Past Due (1)
Total Past
Due 30 Days
or More
Total Current or Less Than 30 Days Past Due (1)
Loans Accounted for Under the Fair Value Option Total
Outstandings
(Dollars in millions) September 30, 2020
Consumer real estate            
Core portfolio
Residential mortgage
 $ 1,244  $ 280  $ 829  $ 2,353  $ 221,542  $ 223,895 
Home equity 129  77  261  467  31,871  32,338 
Non-core portfolio
Residential mortgage 308  126  964  1,398  7,425  8,823 
Home equity 29  20  76  125  4,067  4,192 
Credit card and other consumer
Credit card 486  238  546  1,270  78,564  79,834 
Direct/Indirect consumer (2)
209  58  31  298  89,616  89,914 
Other consumer —  —  —  —  140  140 
Total consumer 2,405  799  2,707  5,911  433,225  439,136 
Consumer loans accounted for under the fair value option (3)
          $ 657  657 
Total consumer loans and leases 2,405  799  2,707  5,911  433,225  657  439,793 
Commercial
U.S. commercial 500  213  558  1,271  292,663  293,934 
Non-U.S. commercial 80  22  28  130  96,021  96,151 
Commercial real estate (4)
58  3  206  267  62,187  62,454 
Commercial lease financing 67  92  42  201  17,212  17,413 
U.S. small business commercial (5)
71  51  83  205  38,645  38,850 
Total commercial 776  381  917  2,074  506,728  508,802 
Commercial loans accounted for under the fair value option (3)
          6,577  6,577 
Total commercial loans and leases 776  381  917  2,074  506,728  6,577  515,379 
Total loans and leases (6)
$ 3,181  $ 1,180  $ 3,624  $ 7,985  $ 939,953  $ 7,234  $ 955,172 
Percentage of outstandings 0.33  % 0.12  % 0.38  % 0.83  % 98.41  % 0.76  % 100.00  %
(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $258 million and nonperforming loans of $132 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $118 million and nonperforming loans of $96 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $1.0 billion. Consumer real estate loans current or less than 30 days past due includes $793 million and direct/indirect consumer includes $38 million of nonperforming loans. For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the COVID-19 pandemic, see Note 1 – Summary of Significant Accounting Principles.
(2)Total outstandings primarily includes auto and specialty lending loans and leases of $47.1 billion, U.S. securities-based lending loans of $39.0 billion and non-U.S. consumer loans of $2.9 billion.
(3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $314 million and home equity loans of $343 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $3.4 billion and non-U.S. commercial loans of $3.2 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.
(4)Total outstandings includes U.S. commercial real estate loans of $58.7 billion and non-U.S. commercial real estate loans of $3.7 billion.
(5)Includes PPP loans.
(6)Total outstandings includes loans and leases pledged as collateral of $15.9 billion. The Corporation also pledged $158.4 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank.
30-59 Days
Past Due (1)
60-89 Days Past Due (1)
90 Days or
More
Past Due (1)
Total Past
Due 30 Days
or More
Total
Current or
Less Than
30 Days
Past Due (1)
Loans
Accounted
for Under
the Fair
Value Option		 Total Outstandings
(Dollars in millions) December 31, 2019
Consumer real estate            
Core portfolio
Residential mortgage $ 1,378  $ 261  $ 565  $ 2,204  $ 223,566    $ 225,770 
Home equity 135  70  198  403  34,823    35,226 
Non-core portfolio              
Residential mortgage 458  209  1,263  1,930  8,469    10,399 
Home equity 34  16  72  122  4,860    4,982 
Credit card and other consumer              
Credit card 564  429  1,042  2,035  95,573    97,608 
Direct/Indirect consumer (2)
297  85  35  417  90,581    90,998 
Other consumer  —  —  —  —  192    192 
Total consumer 2,866  1,070  3,175  7,111  458,064  465,175 
Consumer loans accounted for under the fair value option (3)
$ 594  594 
Total consumer loans and leases 2,866  1,070  3,175  7,111  458,064  594  465,769 
Commercial              
U.S. commercial 788  279  371  1,438  305,610    307,048 
Non-U.S. commercial 35  23  8  66  104,900    104,966 
Commercial real estate (4)
144  19  119  282  62,407    62,689 
Commercial lease financing 100  56  39  195  19,685    19,880 
U.S. small business commercial 119  56  107  282  15,051    15,333 
Total commercial 1,186  433  644  2,263  507,653    509,916 
Commercial loans accounted for under the fair value option (3)
7,741  7,741 
Total commercial loans and leases
 1,186  433  644  2,263  507,653  7,741  517,657 
Total loans and leases (5)
$ 4,052  $ 1,503  $ 3,819  $ 9,374  $ 965,717  $ 8,335  $ 983,426 
Percentage of outstandings 0.41  % 0.15  % 0.39  % 0.95  % 98.20  % 0.85  % 100.00  %
(1)Consumer real estate loans 30-59 days past due includes fully-insured loans of $517 million and nonperforming loans of $139 million. Consumer real estate loans 60-89 days past due includes fully-insured loans of $206 million and nonperforming loans of $114 million. Consumer real estate loans 90 days or more past due includes fully-insured loans of $1.1 billion. Consumer real estate loans current or less than 30 days past due includes $856 million and direct/indirect consumer includes $45 million of nonperforming loans.
(2)Total outstandings primarily includes auto and specialty lending loans and leases of $50.4 billion, U.S. securities-based lending loans of $36.7 billion and non-U.S. consumer loans of $2.8 billion.
(3)Consumer loans accounted for under the fair value option includes residential mortgage loans of $257 million and home equity loans of $337 million. Commercial loans accounted for under the fair value option includes U.S. commercial loans of $4.7 billion and non-U.S. commercial loans of $3.1 billion. For more information, see Note 14 – Fair Value Measurements and Note 15 – Fair Value Option.
(4)Total outstandings includes U.S. commercial real estate loans of $59.0 billion and non-U.S. commercial real estate loans of $3.7 billion.
(5)Total outstandings includes loans and leases pledged as collateral of $25.9 billion. The Corporation also pledged $168.2 billion of loans with no related outstanding borrowings to secure potential borrowing capacity with the Federal Reserve Bank and Federal Home Loan Bank.
Schedule of Financing Receivables, Non Accrual Status The table below presents the Corporation’s nonperforming loans and leases including nonperforming TDRs, and loans accruing past due 90 days or more at September 30, 2020 and December 31, 2019. Nonperforming loans held-for-sale (LHFS) are excluded from nonperforming loans and leases as they are recorded at either fair value or the lower of cost or fair value. For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the COVID-19 pandemic, see Note 1 – Summary of Significant Accounting Principles. For more information on the criteria for classification as nonperforming, see Note 1 – Summary of Significant Accounting Principles to the Consolidated Financial Statements of the Corporation’s 2019 Annual Report on Form 10-K.
Credit Quality
Nonperforming Loans
and Leases
Accruing Past Due
90 Days or More (1)
(Dollars in millions) September 30
2020		 December 31
2019		 September 30
2020		 December 31
2019
Residential mortgage (2)
$ 1,675  $ 1,470  $ 837  $ 1,088 
With negative allowance (3)
500  — 
Home equity (2)
640  536  —  — 
With negative allowance (3)
119  — 
Credit Card n/a n/a 546  1,042 
Direct/indirect consumer 42  47  27  33 
Total consumer 2,357  2,053  1,410  2,163 
U.S. commercial 1,351  1,094  199  106 
Non-U.S. commercial 338  43  28  8 
Commercial real estate 414  280  2  19 
Commercial lease financing 14  32  32  20 
U.S. small business commercial 76  50  77  97 
Total commercial 2,193  1,499  338  250 
Total nonperforming loans $ 4,550  $ 3,552  $ 1,748  $ 2,413 
Percentage of outstanding loans and leases
 0.48  % 0.36  % 0.18  % 0.25  %
(1)For information on the Corporation's interest accrual policies and delinquency status for loan modifications related to the COVID-19 pandemic, see Note 1 – Summary of Significant Accounting Principles.
(2)Residential mortgage loans accruing past due 90 days or more are fully-insured loans. At September 30, 2020 and December 31, 2019 residential mortgage includes $561 million and $740 million of loans on which interest had been curtailed by the FHA, and therefore were no longer accruing interest, although principal was still insured, and $276 million and $348 million of loans on which interest was still accruing.
(3)At September 30, 2020, Residential Mortgage and Home Equity include negative allowance on nonperforming loans of $170 million and $106 million.
n/a = not applicable
Financing Receivable Credit Quality Indicators The following tables present certain credit quality indicators for the Corporation's Consumer Real Estate, Credit Card and Other Consumer, and Commercial portfolio segments by class of financing receivables and year of origination for term loan balances at September 30, 2020, including revolving loans that converted to term loans without an additional credit decision after origination or through a TDR.
Residential Mortgage – Credit Quality Indicators By Vintage
(Dollars in millions) Total as of September 30, 2020 2020 2019 2018 2017 2016 Prior
Total Residential Mortgage
Refreshed LTV
     
Less than or equal to 90 percent $ 216,204  $ 60,442  $ 48,822  $ 17,053  $ 24,435  $ 25,616  $ 39,836 
Greater than 90 percent but less than or equal to 100 percent
 3,482  1,743  989  244  104  127  275 
Greater than 100 percent
 1,310  685  207  67  46  39  266 
Fully-insured loans
 11,722  2,746  2,332  441  379  2,215  3,609 
Total Residential Mortgage $ 232,718  $ 65,616  $ 52,350  $ 17,805  $ 24,964  $ 27,997  $ 43,986 
Total Residential Mortgage
Refreshed FICO score
Less than 620 $ 2,776  $ 711  $ 174  $ 157  $ 170  $ 179  $ 1,385 
Greater than or equal to 620 and less than 680
 5,505  1,596  710  471  408  414  1,906 
Greater than or equal to 680 and less than 740
 26,198  7,510  5,268  2,229  2,629  2,420  6,142 
Greater than or equal to 740
 186,517  53,053  43,866  14,507  21,378  22,769  30,944 
Fully-insured loans
 11,722  2,746  2,332  441  379  2,215  3,609 
Total Residential Mortgage $ 232,718  $ 65,616  $ 52,350  $ 17,805  $ 24,964  $ 27,997  $ 43,986 
Home Equity - Credit Quality Indicators
Total
Home Equity Loans and Reverse Mortgages (1)
Revolving Loans Revolving Loans Converted to Term Loans
(Dollars in millions) September 30, 2020
Total Home Equity
Refreshed LTV
     
Less than or equal to 90 percent $ 35,542  $ 1,972  $ 24,067  $ 9,503 
Greater than 90 percent but less than or equal to 100 percent
 415  133  115  167 
Greater than 100 percent
 573  196  116  261 
Total Home Equity $ 36,530  $ 2,301  $ 24,298  $ 9,931 
Total Home Equity
Refreshed FICO score
Less than 620 $ 1,112  $ 246  $ 241  $ 625 
Greater than or equal to 620 and less than 680
 1,912  278  577  1,057 
Greater than or equal to 680 and less than 740
 6,144  569  3,107  2,468 
Greater than or equal to 740
 27,362  1,208  20,373  5,781 
Total Home Equity $ 36,530  $ 2,301  $ 24,298  $ 9,931 
(1)Includes reverse mortgages of $1.3 billion and home equity loans of $974 million which are no longer originated.
Credit Card and Direct/Indirect Consumer – Credit Quality Indicators By Vintage
Direct/Indirect
Term Loans by Origination Year Credit Card
(Dollars in millions) Total Direct/Indirect as of September 30, 2020 Revolving Loans 2020 2019 2018 2017 2016 Prior Total Credit Card as of September 30, 2020 Revolving Loans
Revolving Loans Converted to Term Loans (3)
Refreshed FICO score    
Less than 620 $ 1,041  $ 20  $ 81  $ 204  $ 194  $ 279  $ 181  $ 82  $ 3,878  $ 3,686  $ 192 
Greater than or equal to 620 and less than 680
 2,227  23  498  628  379  357  213  129  9,788  9,572  216 
Greater than or equal to 680 and less than 740
 7,483  84  2,171  2,280  1,188  894  489  377  28,496  28,311  185 
Greater than or equal to 740 36,620  125  9,693  11,729  6,723  4,207  2,164  1,979  37,672  37,628  44 
Other internal credit
   metrics (1, 2)
42,543  41,903  46  120  111  75  52  236  —  —  — 
Total credit card and other
consumer		 $ 89,914  $ 42,155  $ 12,489  $ 14,961  $ 8,595  $ 5,812  $ 3,099  $ 2,803  $ 79,834  $ 79,197  $ 637 
(1)Other internal credit metrics may include delinquency status, geography or other factors.
(2)Direct/indirect consumer includes $41.9 billion of securities-based lending which is typically supported by highly liquid collateral with market value greater than or equal to the outstanding loan balance and therefore has minimal credit risk at September 30, 2020.
(3)Represents troubled debt restructurings that were modified into term loans.
Commercial – Credit Quality Indicators By Vintage (1, 2)
Term Loans
Amortized Cost Basis by Origination Year
(Dollars in millions) Total as of September 30, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans
U.S. Commercial
Risk ratings        
Pass rated $ 273,068  $ 29,791  $ 38,045  $ 19,560  $ 16,259  $ 8,621  $ 18,776  $ 142,016 
Reservable criticized 20,866  1,868  2,430  2,377  906  668  1,925  10,692 
Total U.S. Commercial
 $ 293,934  $ 31,659  $ 40,475  $ 21,937  $ 17,165  $ 9,289  $ 20,701  $ 152,708 
Non-U.S. Commercial
Risk ratings
Pass rated $ 92,125  $ 12,666  $ 13,306  $ 8,519  $ 5,407  $ 1,557  $ 6,842  $ 43,828 
Reservable criticized 4,026  533  491  443  252  49  172  2,086 
Total Non-U.S. Commercial
 $ 96,151  $ 13,199  $ 13,797  $ 8,962  $ 5,659  $ 1,606  $ 7,014  $ 45,914 
Commercial Real Estate
Risk ratings
Pass rated $ 55,528  $ 6,168  $ 15,968  $ 10,438  $ 5,800  $ 3,470  $ 7,503  $ 6,181 
Reservable criticized 6,926  348  1,613  1,430  1,393  617  1,106  419 
Total Commercial Real Estate
 $ 62,454  $ 6,516  $ 17,581  $ 11,868  $ 7,193  $ 4,087  $ 8,609  $ 6,600 
Commercial Lease Financing
Risk ratings
Pass rated $ 16,756  $ 2,292  $ 3,433  $ 3,240  $ 2,753  $ 1,831  $ 3,207  $ — 
Reservable criticized 657  71  89  164  68  63  202  — 
Total Commercial Lease Financing
 $ 17,413  $ 2,363  $ 3,522  $ 3,404  $ 2,821  $ 1,894  $ 3,409  $ — 
U.S. Small Business Commercial (3)
Risk ratings
Pass rated $ 30,787  $ 25,856  $ 1,185  $ 880  $ 780  $ 563  $ 1,340  $ 183 
Reservable criticized 1,339  78  222  216  182  128  500  13 
Total U.S. Small Business Commercial
 $ 32,126  $ 25,934  $ 1,407  $ 1,096  $ 962  $ 691  $ 1,840  $ 196 
 Total (1, 2)
$ 502,078  $ 79,671  $ 76,782  $ 47,267  $ 33,800  $ 17,567  $ 41,573  $ 205,418 
(1) Excludes $6.6 billion of loans accounted for under the fair value option at September 30, 2020.
(2)     Includes $54 million of loans that converted from revolving to term loans.
(3)     Excludes U.S. Small Business Card loans of $6.7 billion. Refreshed FICO scores for this portfolio are $266 million for less than 620; $599 million for greater than or equal to 620 and less than 680; $1.8 billion for greater than or equal to 680 and less than 740; and $4.1 billion greater than or equal to 740.
Troubled Debt Restructurings on Financing Receivables The table below presents the September 30, 2020 and 2019 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of consumer real estate loans that were modified in TDRs during the three and nine months ended September 30, 2020 and 2019. The following Consumer Real Estate portfolio segment tables include loans that were initially classified as TDRs during the period and also loans that had previously been classified as TDRs and were modified again during the period.
Consumer Real Estate – TDRs Entered into During The Three and Nine Months Ended September 30, 2020
and 2019 (1)
Unpaid Principal Balance Carrying
Value		 Pre-Modification Interest Rate
Post-Modification Interest Rate (2)
Unpaid Principal Balance Carrying
Value		 Pre-Modification Interest Rate
Post-Modification Interest Rate (2)
(Dollars in millions) Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020
Residential mortgage $ 103  $ 88  4.06  % 3.99  % $ 294  $ 244  4.07  % 3.90  %
Home equity 12  10  4.25  4.08  56  45  3.85  3.73 
Total $ 115  $ 98  4.08  4.00  $ 350  $ 289  4.03  3.87 
Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019
Residential mortgage $ 148  $ 125  4.29  % 4.25  % $ 368  $ 301  4.24  % 4.22  %
Home equity 34  27  5.28  5.27  129  94  5.19  4.60 
Total $ 182  $ 152  4.48  4.44  $ 497  $ 395  4.49  4.32 
(1)For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.
(2)The post-modification interest rate reflects the interest rate applicable only to permanently completed modifications, which exclude loans that are in a trial modification period.
The table below presents the September 30, 2020 and 2019 carrying value for consumer real estate loans that were modified in a TDR during the three and nine months ended September 30, 2020 and 2019, by type of modification.
Consumer Real Estate – Modification Programs (1)
TDRs Entered into During the
Three Months Ended September 30 Nine Months Ended September 30
(Dollars in millions) 2020 2019 2020 2019
Modifications under government programs $ —  $ 8  $ 8  $ 32 
Modifications under proprietary programs 50  18  136  125 
Loans discharged in Chapter 7 bankruptcy (2)
15  16  44  54 
Trial modifications 33  110  101  184 
Total modifications $ 98  $ 152  $ 289  $ 395 
(1)For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.
(2)Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
The table below presents the carrying value of consumer real estate loans that entered into payment default during the three and nine months ended September 30, 2020 and 2019 that were modified in a TDR during the 12 months preceding payment default. A payment default for consumer real estate TDRs is recognized when a borrower has missed three monthly payments (not necessarily consecutively) since modification.
Consumer Real Estate – TDRs Entering Payment Default that were Modified During the Preceding 12 Months (1)
Three Months Ended September 30 Nine Months Ended September 30
(Dollars in millions) 2020 2019 2020 2019
Modifications under government programs $ 6  $ 7  $ 14  $ 20 
Modifications under proprietary programs 8  19  27  68 
Loans discharged in Chapter 7 bankruptcy (2)
4  8  15  26 
Trial modifications (3)
15  13  45  40 
Total modifications $ 33  $ 47  $ 101  $ 154 
(1)For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.
(2)Includes loans discharged in Chapter 7 bankruptcy with no change in repayment terms that are classified as TDRs.
(3)Includes trial modification offers to which the customer did not respond.
The table below provides information on the Corporation’s Credit Card and Other Consumer TDR portfolio including the September 30, 2020 and 2019 unpaid principal balance, carrying value, and average pre- and post-modification interest rates of loans that were modified in TDRs during the three and nine months ended September 30, 2020 and 2019.
Credit Card and Other Consumer – TDRs Entered into During the Three and Nine Months Ended September 30, 2020
and 2019 (1)
  Unpaid Principal Balance
Carrying
Value (2)
Pre-Modification Interest Rate Post-Modification Interest Rate Unpaid Principal Balance
Carrying
Value (2)
Pre-Modification Interest Rate Post-Modification Interest Rate
(Dollars in millions) Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020
Credit card $ 71  $ 77  18.19  % 6.86  % $ 203  $ 214  18.06 % 5.82 %
Direct/Indirect consumer 35  29  6.02  6.02  50  37  5.87  5.87 
Total $ 106  $ 106  14.85  6.63  $ 253  $ 251  16.29  5.83 
Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019
Credit card $ 100  $ 107  19.62  % 5.36  % $ 267  $ 281  19.50  % 5.35  %
Direct/Indirect consumer 19  11  5.32  5.32  35  19  5.23  5.22 
Total $ 119  $ 118  18.36  5.36  $ 302  $ 300  18.62  5.34 
(1)For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.
(2)Includes accrued interest and fees.
The table below presents the September 30, 2020 and 2019 carrying value for Credit Card and Other Consumer loans that were modified in a TDR during the three and nine months ended September 30, 2020 and 2019, by program type.
Credit Card and Other Consumer – TDRs by Program Type (1)
TDRs Entered into During the Three Months Ended September 30 TDRs Entered into During the Nine Months Ended September 30
(Dollars in millions)
 2020 2019 2020 2019
Internal programs $ 80  $ 76  $ 178  $ 196 
External programs
 19  31  59  86 
Other
 7  11  14  18 
Total $ 106  $ 118  $ 251  $ 300 
(1)Includes accrued interest and fees. For more information on the Corporation's loan modification programs offered in response to the COVID-19 pandemic, which are not TDRs, see Note 1 – Summary of Significant Accounting Principles.
Changes in the Allowance for Credit Losses
The changes in the allowance for credit losses, including net charge-offs and provision for loan and lease losses, are detailed in the table below.
Consumer
Real Estate		 Credit Card and Other Consumer Commercial Total
(Dollars in millions) Three Months Ended September 30, 2020
Allowance for loan and lease losses, July 1 $ 833  $ 10,122  $ 8,434  $ 19,389 
Loans and leases charged off (13) (810) (470) (1,293)
Recoveries of loans and leases previously charged off 39  220  62  321 
Net charge-offs 26  (590) (408) (972)
Provision for loan and lease losses (6) 304  882  1,180 
Other (1)
2  —  (3) (1)
Allowance for loan and lease losses, September 30
 855  9,836  8,905  19,596 
Reserve for unfunded lending commitments, July 1 141  —  1,561  1,702 
Provision for unfunded lending commitments (3) —  212  209 
Other (1)
—  —  (1) (1)
Reserve for unfunded lending commitments, September 30
 138  —  1,772  1,910 
Allowance for credit losses, September 30
 $ 993  $ 9,836  $ 10,677  $ 21,506 
Three Months Ended September 30, 2019
Allowance for loan and lease losses, July 1 $ 719  $ 3,970  $ 4,838  $ 9,527 
Loans and leases charged off (199) (1,093) (220) (1,512)
Recoveries of loans and leases previously charged off 439  231  31  701 
Net charge-offs 240  (862) (189) (811)
Provision for loan and lease losses (312) 876  212  776 
Other (1)
(56) 1  (4) (59)
Allowance for loan and lease losses, September 30
 591  3,985  4,857  9,433 
Reserve for unfunded lending commitments, July 1 —  —  806  806 
Provision for unfunded lending commitments —  —  3  3 
Reserve for unfunded lending commitments, September 30
 —  —  809  809 
Allowance for credit losses, September 30
 $ 591  $ 3,985  $ 5,666  $ 10,242 
(Dollars in millions) Nine Months Ended September 30, 2020
Allowance for loan and lease losses, January 1 $ 440  $ 7,430  $ 4,488  $ 12,358 
Loans and leases charged off (75) (2,916) (1,199) (4,190)
Recoveries of loans and leases previously charged off 147  674  129  950 
Net charge-offs 72  (2,242) (1,070) (3,240)
Provision for loan and lease losses 336  4,648  5,496  10,480 
Other (1)
7  —  (9) (2)
Allowance for loan and lease losses, September 30
 855  9,836  8,905  19,596 
Reserve for unfunded lending commitments, January 1 119  —  1,004  1,123 
Provision for unfunded lending commitments 19  —  768  787 
Reserve for unfunded lending commitments, September 30
 138  —  1,772  1,910 
Allowance for credit losses, September 30
 $ 993  $ 9,836  $ 10,677  $ 21,506 
Nine Months Ended September 30, 2019
Allowance for loan and lease losses, January 1 $ 928  $ 3,874  $ 4,799  $ 9,601 
Loans and leases charged off (455) (3,225) (630) (4,310)
Recoveries of loans and leases previously charged off 852  680  89  1,621 
Net charge-offs 397  (2,545) (541) (2,689)
Provision for loan and lease losses (621) 2,655  603  2,637 
Other (1)
(113) 1  (4) (116)
Allowance for loan and lease losses, September 30
 591  3,985  4,857  9,433 
Reserve for unfunded lending commitments, January 1 —  —  797  797 
Provision for unfunded lending commitments —  —  12  12 
Reserve for unfunded lending commitments, September 30
 —  —  809  809 
Allowance for credit losses, September 30
 $ 591  $ 3,985  $ 5,666  $ 10,242 
(1)Primarily represents write-offs of purchased credit-impaired loans in 2019, and the net impact of portfolio sales, transfers to held-for-sale and transfers to foreclosed properties.
Specific to the three months ended September 30, 2020, there has been improvement in the U.S. and global macroeconomic consensus outlooks, which resulted in an improvement in the economic outlook used to determine the allowance for credit losses when compared to June 30, 2020. The provision for credit losses, including unfunded lending commitments, increased