Quarterly report pursuant to Section 13 or 15(d)

Allowance for Credit Losses (Tables)

v3.4.0.3
Allowance for Credit Losses (Tables)
3 Months Ended
Mar. 31, 2016
Loans and Leases Receivable, Allowance [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 months ended March 31, 2016 and 2015.

 
Three Months Ended March 31, 2016
(Dollars in millions)
Consumer Real Estate
 
Credit Card
and Other
Consumer
 
Commercial
 
Total Allowance
Allowance for loan and lease losses, January 1
$
3,914

 
$
3,471

 
$
4,849

 
$
12,234

Loans and leases charged off
(378
)
 
(912
)
 
(206
)
 
(1,496
)
Recoveries of loans and leases previously charged off
175

 
198

 
55

 
428

Net charge-offs
(203
)
 
(714
)
 
(151
)
 
(1,068
)
Write-offs of PCI loans
(105
)
 

 

 
(105
)
Provision for loan and lease losses
(150
)
 
552

 
614

 
1,016

Other (1)

 
(7
)
 
(1
)
 
(8
)
Allowance for loan and lease losses, March 31
3,456

 
3,302

 
5,311

 
12,069

Reserve for unfunded lending commitments, January 1

 

 
646

 
646

Provision for unfunded lending commitments

 

 
(19
)
 
(19
)
Reserve for unfunded lending commitments, March 31

 

 
627

 
627

Allowance for credit losses, March 31
$
3,456

 
$
3,302

 
$
5,938

 
$
12,696

 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2015
Allowance for loan and lease losses, January 1
$
5,935

 
$
4,047

 
$
4,437

 
$
14,419

Loans and leases charged off
(552
)
 
(964
)
 
(129
)
 
(1,645
)
Recoveries of loans and leases previously charged off
183

 
216

 
52

 
451

Net charge-offs
(369
)
 
(748
)
 
(77
)
 
(1,194
)
Write-offs of PCI loans
(288
)
 

 

 
(288
)
Provision for loan and lease losses
(28
)
 
647

 
137

 
756

Other (1)

 
(17
)
 

 
(17
)
Allowance for loan and lease losses, March 31
5,250

 
3,929

 
4,497

 
13,676

Reserve for unfunded lending commitments, January 1

 

 
528

 
528

Provision for unfunded lending commitments

 

 
9

 
9

Reserve for unfunded lending commitments, March 31

 

 
537

 
537

Allowance for credit losses, March 31
$
5,250

 
$
3,929

 
$
5,034

 
$
14,213

(1) 
Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments.
The table below presents the allowance and the carrying value of outstanding loans and leases by portfolio segment at March 31, 2016 and December 31, 2015.

Allowance and Carrying Value by Portfolio Segment
 
 
 
 
 
 
 
 
March 31, 2016
(Dollars in millions)
Consumer Real Estate
 
Credit Card
and Other
Consumer
 
Commercial
 
Total
Impaired loans and troubled debt restructurings (1)
 
 
 
 
 
 
 
Allowance for loan and lease losses (2)
$
550

 
$
208

 
$
285

 
$
1,043

Carrying value (3)
18,975

 
722

 
2,903

 
22,600

Allowance as a percentage of carrying value
2.90
%
 
28.81
%
 
9.82
%
 
4.62
%
Loans collectively evaluated for impairment
 
 
 
 
 
 
 
Allowance for loan and lease losses
$
2,284

 
$
3,094

 
$
5,026

 
$
10,404

Carrying value (3, 4)
223,265

 
188,443

 
442,622

 
854,330

Allowance as a percentage of carrying value (4)
1.02
%
 
1.64
%
 
1.14
%
 
1.22
%
Purchased credit-impaired loans
 
 
 
 
 
 
 
Valuation allowance
$
622

 
n/a

 
n/a

 
$
622

Carrying value gross of valuation allowance
15,971

 
n/a

 
n/a

 
15,971

Valuation allowance as a percentage of carrying value
3.89
%
 
n/a

 
n/a

 
3.89
%
Total
 
 
 
 
 
 
 
Allowance for loan and lease losses
$
3,456

 
$
3,302

 
$
5,311

 
$
12,069

Carrying value (3, 4)
258,211

 
189,165

 
445,525

 
892,901

Allowance as a percentage of carrying value (4)
1.34
%
 
1.75
%
 
1.19
%
 
1.35
%
 
 
 
 
 
 
 
 
 
December 31, 2015
Impaired loans and troubled debt restructurings (1)
 
 
 
 
 
 
 
Allowance for loan and lease losses (2)
$
634

 
$
250

 
$
217

 
$
1,101

Carrying value (3)
21,058

 
779

 
2,368

 
24,205

Allowance as a percentage of carrying value
3.01
%
 
32.09
%
 
9.16
%
 
4.55
%
Loans collectively evaluated for impairment
 
 
 
 
 
 
 
Allowance for loan and lease losses
$
2,476

 
$
3,221

 
$
4,632

 
$
10,329

Carrying value (3, 4)
226,116

 
189,660

 
433,379

 
849,155

Allowance as a percentage of carrying value (4)
1.10
%
 
1.70
%
 
1.07
%
 
1.22
%
Purchased credit-impaired loans
 
 
 
 
 
 
 
Valuation allowance
$
804

 
n/a

 
n/a

 
$
804

Carrying value gross of valuation allowance
16,685

 
n/a

 
n/a

 
16,685

Valuation allowance as a percentage of carrying value
4.82
%
 
n/a

 
n/a

 
4.82
%
Total
 
 
 
 
 
 
 
Allowance for loan and lease losses
$
3,914

 
$
3,471

 
$
4,849

 
$
12,234

Carrying value (3, 4)
263,859

 
190,439

 
435,747

 
890,045

Allowance as a percentage of carrying value (4)
1.48
%
 
1.82
%
 
1.11
%
 
1.37
%
(1) 
Impaired loans include nonperforming commercial loans and 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) 
Allowance for loan and lease losses includes $35 million related to impaired U.S. small business commercial at both March 31, 2016 and December 31, 2015.
(3) 
Amounts are presented gross of the allowance for loan and lease losses.
(4) 
Outstanding loan and lease balances and ratios do not include loans accounted for under the fair value option of $8.2 billion and $6.9 billion at March 31, 2016 and December 31, 2015.
n/a = not applicable