ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2020

Allowance for Loan and Lease Losses and Allowance for Credit Losses - Roll-forward

The following table presents ALLL and AULC activity by portfolio segment for the three-month and nine-month periods ended September 30, 2020 and 2019.


(dollar amounts in millions)	Commercial		Consumer		Total
Three-month period ended September 30, 2020:
ALLL balance, beginning of period	$	1,169	$	533	$	1,702

Loan charge-offs	(101)		(40)		(141)
Recoveries of loans previously charged-off	12		16		28
Provision for loan and lease losses	183		24		207

ALLL balance, end of period	$	1,263	$	533	$	1,796
AULC balance, beginning of period	$	81	$	38	$	119

Provision (reduction in allowance) for unfunded loan commitments and letters of credit	(27)		(3)		(30)
Unfunded commitment losses	(7)		—		(7)
AULC balance, end of period	$	47	$	35	$	82
ACL balance, end of period	$	1,310	$	568	$	1,878
Nine-month period ended September 30, 2020:
ALLL balance, beginning of period	$	552	$	231	$	783
Cumulative-effect of change in accounting principle for financial instruments - credit losses (1)	180		211		391
Loan charge-offs	(272)		(128)		(400)
Recoveries of loans previously charged-off	20		43		63
Provision for loan and lease losses	783		176		959

ALLL balance, end of period	$	1,263	$	533	$	1,796
AULC balance, beginning of period	$	102	$	2	$	104
Cumulative-effect of change in accounting principle for financial instruments - credit losses (1)	(38)		40		2
Provision (reduction in allowance) for unfunded loan commitments and letters of credit	(7)		(7)		(14)
Unfunded commitment losses	(10)		—		(10)
AULC balance, end of period	$	47	$	35	$	82
ACL balance, end of period	$	1,310	$	568	$	1,878

(1)Relates to day one impact of the CECL adjustment as a result of the implementation of ASU 2016-13.


(dollar amounts in millions)	Commercial		Consumer		Total
Three-month period ended September 30, 2019:
ALLL balance, beginning of period	$	560	$	214	$	774

Loan charge-offs	(53)		(49)		(102)
Recoveries of loans previously charged-off	15		14		29
Provision for loan and lease losses	39		43		82

ALLL balance, end of period	$	561	$	222	$	783
AULC balance, beginning of period	$	99	$	2	$	101
Provision (reduction in allowance) for unfunded loan commitments and letters of credit	—		—		—

AULC balance, end of period	$	99	$	2	$	101
ACL balance, end of period	$	660	$	224	$	884
Nine-month period ended September 30, 2019:
ALLL balance, beginning of period	$	542	$	230	$	772
Loan charge-offs	(124)		(145)		(269)
Recoveries of loans previously charged-off	35		42		77
Provision for loan and lease losses	108		95		203

ALLL balance, end of period	$	561	$	222	$	783
AULC balance, beginning of period	$	94	$	2	$	96
Provision (reduction in allowance) for unfunded loan commitments and letters of credit	5		—		5

AULC balance, end of period	$	99	$	2	$	101
ACL balance, end of period	$	660	$	224	$	884