Quarterly report pursuant to Section 13 or 15(d)

Allowance for Credit Losses

v3.19.1
Allowance for Credit Losses
3 Months Ended
Mar. 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 the three months ended March 31, 2019 and 2018.
 
 
 
 
 
 
 
 
 
Consumer
Real Estate
 
Credit Card and Other Consumer
 
Commercial
 
Total
(Dollars in millions)
Three Months Ended March 31, 2019
Allowance for loan and lease losses, January 1
$
928

 
$
3,874

 
$
4,799

 
$
9,601

Loans and leases charged off
(103
)
 
(1,057
)
 
(177
)
 
(1,337
)
Recoveries of loans and leases previously charged off
108

 
217

 
21

 
346

Net charge-offs
5

 
(840
)
 
(156
)
 
(991
)
Provision for loan and lease losses
(70
)
 
900

 
178

 
1,008

Other (1)
(41
)
 

 

 
(41
)
Allowance for loan and lease losses, March 31
822

 
3,934

 
4,821

 
9,577

Reserve for unfunded lending commitments, January 1

 

 
797

 
797

Provision for unfunded lending commitments

 

 
5

 
5

Reserve for unfunded lending commitments, March 31

 

 
802

 
802

Allowance for credit losses, March 31
$
822

 
$
3,934

 
$
5,623

 
$
10,379

 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2018
Allowance for loan and lease losses, January 1
$
1,720

 
$
3,663

 
$
5,010

 
$
10,393

Loans and leases charged off
(174
)
 
(1,006
)
 
(116
)
 
(1,296
)
Recoveries of loans and leases previously charged off
147

 
203

 
35

 
385

Net charge-offs
(27
)
 
(803
)
 
(81
)
 
(911
)
Provision for loan and lease losses
(128
)
 
876

 
81

 
829

Other (1)
(35
)
 
(16
)
 

 
(51
)
Allowance for loan and lease losses, March 31
1,530

 
3,720

 
5,010

 
10,260

Reserve for unfunded lending commitments, January 1

 

 
777

 
777

Provision for unfunded lending commitments

 

 
5

 
5

Reserve for unfunded lending commitments, March 31

 

 
782

 
782

Allowance for credit losses, March 31
$
1,530

 
$
3,720

 
$
5,792

 
$
11,042


(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 March 31, 2019 and December 31, 2018.
 
 
 
 
 
 
 
 
 
Consumer
Real Estate
 
Credit Card and Other Consumer
 
Commercial
 
Total
(Dollars in millions)
March 31, 2019
Impaired loans and troubled debt restructurings (1)
 

 
 

 
 

 
 

Allowance for loan and lease losses
$
209

 
$
155

 
$
207

 
$
571

Carrying value (2)
8,058

 
600

 
2,796

 
11,454

Allowance as a percentage of carrying value
2.59
%
 
25.83
%
 
7.40
%
 
4.99
%
Loans collectively evaluated for impairment
 

 
 

 
 

 
 

Allowance for loan and lease losses
$
613

 
$
3,779

 
$
4,614

 
$
9,006

Carrying value (2, 3)
250,206

 
182,109

 
495,659

 
927,974

Allowance as a percentage of carrying value (3)
0.24
%
 
2.08
%
 
0.93
%
 
0.97
%
Total
 

 
 

 
 

 
 

Allowance for loan and lease losses
$
822

 
$
3,934

 
$
4,821

 
$
9,577

Carrying value (2, 3)
258,264

 
182,709

 
498,455

 
939,428

Allowance as a percentage of carrying value (3)
0.32
%
 
2.15
%
 
0.97
%
 
1.02
%
 
 
 
 
 
 
 
 
 
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 $6.2 billion and $4.3 billion at March 31, 2019 and December 31, 2018.