XML 25 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
Allowances for Loan and Lease Losses
 3 Months Ended
Mar. 31, 2018
Allowance For Loan And Lease Losses [Abstract]  
Allowance for Loan and Lease Losses
NOTE 4 ALLOWANCE FOR LOAN AND LEASE LOSSES

We maintain the ALLL at levels that we believe to be appropriate to absorb estimated probable credit losses incurred in the portfolios as of the balance sheet date. We use the two main portfolio segments – Commercial Lending and Consumer Lending, and develop and document the ALLL under separate methodologies for each of these portfolio segments. See Note 1 Accounting Policies in our 2017 Form 10-K for a description of the accounting policies for ALLL.

A rollforward of the ALLL and associated loan data follows:
Table 45: Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data
Dollars in millions
 
Commercial
Lending

 
Consumer
Lending

 
Total

 
March 31, 2018
 
 
 
 
 
 
 
Allowance for Loan and Lease Losses
 
 
 
 
 
 
 
January 1
 
$
1,582

 
$
1,029

 
$
2,611

 
Charge-offs
 
(36
)
 
(157
)
 
(193
)
 
Recoveries
 
26

 
54

 
80

 
Net (charge-offs)
 
(10
)
 
(103
)
 
(113
)
 
Provision for credit losses
 
37

 
55

 
92

 
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit
 
5

 
2

 
7

 
Other
 
 
 
7

 
7

 
March 31
 
$
1,614


$
990


$
2,604

 
TDRs individually evaluated for impairment
 
$
34

 
$
152

 
$
186

 
Other loans individually evaluated for impairment
 
67

 
 
 
67

 
Loans collectively evaluated for impairment
 
1,513

 
556

 
2,069

 
Purchased impaired loans
 
 
 
282

 
282

 
March 31
 
$
1,614

 
$
990

 
$
2,604

 
Loan Portfolio
 
 
 
 
 
 
 
TDRs individually evaluated for impairment
 
$
384

 
$
1,608

 
$
1,992

 
Other loans individually evaluated for impairment
 
313

 
 
 
313

 
Loans collectively evaluated for impairment
 
148,248

 
67,934

 
216,182

 
Fair value option loans (a)
 
 
 
813

 
813

 
Purchased impaired loans
 
 
 
2,314

 
2,314

 
March 31
 
$
148,945

 
$
72,669

 
$
221,614

 
Portfolio segment ALLL as a percentage of total ALLL
 
62
%
 
38
%
 
100
%
 
Ratio of ALLL to total loans
 
1.08
%
 
1.36
%
 
1.18
%
 
March 31, 2017
 
 
 
 
 
 
 
Allowance for Loan and Lease Losses
 
 
 
 
 
 
 
January 1
 
$
1,534

 
$
1,055

 
$
2,589

 
Charge-offs
 
(55
)
 
(143
)
 
(198
)
 
Recoveries
 
32

 
48

 
80

 
Net (charge-offs)
 
(23
)
 
(95
)
 
(118
)
 
Provision for credit losses
 
23

 
65

 
88

 
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit
 
(5
)
 
1

 
(4
)
 
Other
 
1

 
5

 
6

 
March 31
 
$
1,530

 
$
1,031

 
$
2,561

 
TDRs individually evaluated for impairment
 
$
37

 
$
215

 
$
252

 
Other loans individually evaluated for impairment
 
53

 
 
 
53

 
Loans collectively evaluated for impairment
 
1,412

 
526

 
1,938

 
Purchased impaired loans
 
28

 
290

 
318

 
March 31
 
$
1,530

 
$
1,031

 
$
2,561

 
Loan Portfolio
 
 
 
 
 
 
 
TDRs individually evaluated for impairment
 
$
366

 
$
1,764

 
$
2,130

 
Other loans individually evaluated for impairment
 
351

 
 
 
351

 
Loans collectively evaluated for impairment
 
139,863

 
66,797

 
206,660

 
Fair value option loans (a)
 
 
 
874

 
874

 
Purchased impaired loans
 
82

 
2,729

 
2,811

 
March 31
 
$
140,662

 
$
72,164

 
$
212,826

 
Portfolio segment ALLL as a percentage of total ALLL
 
60
%
 
40
%
 
100
%
 
Ratio of ALLL to total loans
 
1.09
%
 
1.43
%
 
1.20
%
 
(a)
Loans accounted for under the fair value option are not evaluated for impairment as these loans are accounted for at fair value. Accordingly, there is no allowance recorded on these loans.