Allowance for Credit Losses (Tables)

12 Months Ended

Dec. 31, 2020

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Rollforward of the Allowance for Loan Losses by Portfolio Segment

The following table provides a rollforward of the allowance for loan and lease losses and the reserve for unfunded lending commitments by portfolio type for December 31, 2020, 2019 and 2018:

(Dollars in millions)	Commercial, Financial, and Industrial (a)		Commercial Real Estate		Consumer Real Estate		Credit Card and Other		Total
Allowance for loan and lease losses:
Balance as of January 1, 2020	$	123	$	36	$	28	$	13	$	200
Adoption of ASU 2016-13	19		(7)		93		2		107
Balance as of January 1, 2020, as adjusted	142		29		121		15		307
Charge-offs (b)	(129)		(5)		(8)		(14)		(156)
Recoveries	9		4		18		5		36
Initial allowance on loans purchased with credit deterioration (b)	138		100		44		5		287
Provision for loan and lease losses (c)	293		114		67		15		489
Balance as of December 31, 2020	453		242		242		26		963
Reserve for unfunded lending commitments:
Balance as of January 1, 2020	4		2		—		—		6
Adoption of ASU 2016-13	17		1		6		—		24
Balance as of January 1, 2020, as adjusted	21		3		6		—		30
Initial reserve on loans acquired	12		26		3		—		41
Provision for unfunded lending commitments	32		(19)		1		—		14
Balance as of December 31, 2020	$	65	$	10	$	10	$	—	$	85
Allowance for loan losses:
Balance as of January 1, 2019	$	99	$	31	$	37	$	13	$	180
Charge-offs	(34)		(1)		(8)		(16)		(59)
Recoveries	7		1		20		4		32
Provision (provision credit) for loan losses	51		5		(21)		12		47
Balance as of December 31, 2019	123		36		28		13		200
Reserve for unfunded lending commitments:
Balance as of January 1, 2019	4		3		—		—		7
Provision (provision credit) for unfunded lending commitments	—		(1)		—		—		(1)
Balance as of December 31, 2019	$	4	$	2	$	—	$	—	$	6
Allowance for loan losses:
Balance as of January 1, 2018	$	98	$	28	$	53	$	10	$	189
Charge-offs	(15)		(1)		(10)		(20)		(46)
Recoveries	4		1		21		4		30
Provision (provision credit) for loan losses	12		3		(27)		19		7
Balance as of December 31, 2018	99		31		37		13		180
Reserve for unfunded lending commitments:
Balance as of January 1, 2018	3		2		—		—		5
Provision (provision credit) for unfunded lending commitments	1		1		—		—		2
Balance as of December 31, 2018	$	4	$	3	$	—	$	—	$	7

(a) C&I loans as of December 31, 2020 include $4.1 billion in PPP loans which due to the government guarantee and forgiveness provisions are considered to have no credit risk and therefore have no ALLL.

(b) The year ended December 31, 2020 excludes day 1 charge-offs and the related initial allowance on PCD loans is net of these amounts. Under the new CECL standard, the initial ALLL recognized on PCD assets included an additional $237 million for charged-off loans that had been written off prior to acquisition (whether full or partial) or which met FHN's charge-off policy at the time of acquisition. After charging these amounts off immediately upon acquisition, the net impact was $287 million of additional ALLL for PCD loans.

(c) Provision for loan and lease losses for the year ended December 31, 2020 includes $147 million recognized on non-PCD loans from the IBKC merger and Truist branch acquisition.