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Allowances for Loan and Lease Losses
 6 Months Ended
Jun. 30, 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
 
 
2018
 
2017
 
At or for the six months ended June 30
Dollars in millions
 
Commercial
Lending

 
Consumer
Lending

 
Total

 
Commercial
Lending

 
Consumer
Lending

 
Total

 
Allowance for Loan and Lease Losses
 
 
 
 
 
 
 
 
 
 
 
 
 
January 1
 
$
1,582

 
$
1,029

 
$
2,611

 
$
1,534

 
$
1,055

 
$
2,589

 
Charge-offs
 
(64
)
 
(322
)
 
(386
)
 
(106
)
 
(286
)
 
(392
)
 
Recoveries
 
51

 
113

 
164

 
61

 
103

 
164

 
Net (charge-offs)
 
(13
)
 
(209
)
 
(222
)
 
(45
)
 
(183
)
 
(228
)
 
Provision for credit losses
 
56

 
116

 
172

 
107

 
79

 
186

 
Net decrease / (increase) in allowance for unfunded loan
  commitments and letters of credit
 
6

 
2

 
8

 
(1
)
 
(2
)
 
(3
)
 
Other
 
(1
)
 
13

 
12

 
1

 
16

 
17

 
June 30
 
$
1,630


$
951


$
2,581

 
$
1,596

 
$
965

 
$
2,561

 
TDRs individually evaluated for impairment
 
$
29

 
$
147

 
$
176

 
$
50

 
$
194

 
$
244

 
Other loans individually evaluated for impairment
 
60

 
 
 
60

 
61

 
 
 
61

 
Loans collectively evaluated for impairment
 
1,541

 
523

 
2,064

 
1,460

 
488

 
1,948

 
Purchased impaired loans
 
 
 
281

 
281

 
25

 
283

 
308

 
June 30
 
$
1,630

 
$
951

 
$
2,581

 
$
1,596

 
$
965

 
$
2,561

 
Loan Portfolio
 
 
 
 
 
 
 
 
 
 
 
 
 
TDRs individually evaluated for impairment
 
$
324

 
$
1,544

 
$
1,868

 
$
488

 
$
1,718

 
$
2,206

 
Other loans individually evaluated for impairment
 
240

 
 
 
240

 
303

 
 
 
303

 
Loans collectively evaluated for impairment
 
149,072

 
68,711

 
217,783

 
144,896

 
67,119

 
212,015

 
Fair value option loans (a)
 
 
 
753

 
753

 
 
 
819

 
819

 
Purchased impaired loans
 
 
 
2,211

 
2,211

 
78

 
2,613

 
2,691

 
June 30
 
$
149,636

 
$
73,219

 
$
222,855

 
$
145,765

 
$
72,269

 
$
218,034

 
Portfolio segment ALLL as a percentage of total ALLL
 
63
%
 
37
%
 
100
%
 
62
%
 
38
%
 
100
%
 
Ratio of ALLL to total loans
 
1.09
%
 
1.30
%
 
1.16
%
 
1.09
%
 
1.34
%
 
1.17
%
 
(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.