Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters Of Credit

12 Months Ended

Dec. 31, 2015

Allowance For Loan And Lease Losses [Abstract]

Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters Of Credit

Note 5Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit

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 segments as discussed in Note 1 Accounting Policies. A rollforward of the ALLL and associated loan data follows.

Table 67: Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data
				Commercial			Consumer
In millions				Lending			Lending				Total
December 31, 2015
	Allowance for Loan and Lease Losses
		January 1		$	1,571		$	1,760		$	3,331
		Charge-offs			(255)			(550)			(805)
		Recoveries			240			179			419
			Net (charge-offs) / recoveries		(15)			(371)			(386)
		Provision for credit losses			55			200			255
		Net change in allowance for unfunded loan commitments and letters of credit			(3)			1			(2)
		Write-offs of purchased impaired loans (a)						(468)			(468)
		Other			(3)						(3)
			December 31	$	1,605		$	1,122		$	2,727
		TDRs individually evaluated for impairment		$	43		$	276		$	319
		Other loans individually evaluated for impairment			76						76
		Loans collectively evaluated for impairment			1,437			585			2,022
		Purchased impaired loans			49			261			310
			December 31	$	1,605		$	1,122		$	2,727
	Loan Portfolio
		TDRs individually evaluated for impairment (b)		$	434		$	1,917		$	2,351
		Other loans individually evaluated for impairment			309						309
		Loans collectively evaluated for impairment (c)			132,632			66,977			199,609
		Fair value option loans (d)						905			905
		Purchased impaired loans			169			3,353			3,522
			December 31	$	133,544		$	73,152		$	206,696
	Portfolio segment ALLL as a percentage of total ALLL				59	%		41	%		100	%
	Ratio of the allowance for loan and lease losses to total loans (a)				1.20	%		1.53	%		1.32	%
December 31, 2014
	Allowance for Loan and Lease Losses
		January 1		$	1,547		$	2,062		$	3,609
		Charge-offs			(360)			(661)			(1,021)
		Recoveries			305			185			490
			Net charge-offs		(55)			(476)			(531)
		Provision for credit losses			100			173			273
		Net change in allowance for unfunded loan commitments and letters of credit			(18)			1			(17)
		Other			(3)						(3)
			December 31	$	1,571		$	1,760		$	3,331
		TDRs individually evaluated for impairment		$	62		$	324		$	386
		Other loans individually evaluated for impairment			77						77
		Loans collectively evaluated for impairment			1,353			643			1,996
		Purchased impaired loans			79			793			872
			December 31	$	1,571		$	1,760		$	3,331
	Loan Portfolio
		TDRs individually evaluated for impairment (b)		$	542		$	2,041		$	2,583
		Other loans individually evaluated for impairment			309						309
		Loans collectively evaluated for impairment (c)			127,207			68,826			196,033
		Fair value option loans (d)						1,034			1,034
		Purchased impaired loans			310			4,548			4,858
			December 31	$	128,368		$	76,449		$	204,817
	Portfolio segment ALLL as a percentage of total ALLL				47	%		53	%		100	%
	Ratio of the allowance for loan and lease losses to total loans				1.22	%		2.30	%		1.63	%

Table 67: Rollforward of Allowance for Loan and Lease Losses and Associated Loan Data
(continued from previous page)
				Commercial			Consumer
In millions				Lending			Lending				Total
December 31, 2013
	Allowance for Loan and Lease Losses
		January 1		$	1,774		$	2,262		$	4,036
		Charge-offs (e)			(606)			(982)			(1,588)
		Recoveries			357			154			511
			Net charge-offs		(249)			(828)			(1,077)
		Provision for credit losses			36			607			643
		Net change in allowance for unfunded loan commitments and letters of credit			(13)			21			8
		Other			(1)						(1)
			December 31	$	1,547		$	2,062		$	3,609
		TDRs individually evaluated for impairment		$	24		$	446		$	470
		Other loans individually evaluated for impairment			155						155
		Loans collectively evaluated for impairment			1,235			745			1,980
		Purchased impaired loans			133			871			1,004
			December 31	$	1,547		$	2,062		$	3,609
	Loan Portfolio
		TDRs individually evaluated for impairment (b)		$	578		$	2,161		$	2,739
		Other loans individually evaluated for impairment			649						649
		Loans collectively evaluated for impairment (c)			115,245			69,724			184,969
		Fair value option loans (d)						1,150			1,150
		Purchased impaired loans			673			5,433			6,106
			December 31	$	117,145		$	78,468		$	195,613
	Portfolio segment ALLL as a percentage of total ALLL				43	%		57	%		100	%
	Ratio of the allowance for loan and lease losses to total loans				1.32	%		2.63	%		1.84	%
(a)	A portion of the ALLL associated with purchased impaired pooled consumer and residential real estate loans was derecognized on December 31, 2015 due to the change in the derecognition policy for these loans. The December 31, 2015 ratio of ALLL to total loans was impacted by the derecognition. See Note 4 Purchased Loans for additional information.
(b)	TDRs individually evaluated for impairment exclude TDRs that were subsequently accounted for as held for sale loans, but continue to be disclosed as TDRs.
(c)	Includes $150 million of loans collectively evaluated for impairment based upon collateral values and written down to the respective collateral value less costs to sell at December 31, 2015. Accordingly, there is no allowance recorded for these loans. The comparative amounts as of December 31, 2014 and December 31, 2013 were $195 million and $252 million, respectively.
(d)	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.
(e)	Pursuant to alignment with interagency guidance on practices for loans and lines of credit related to consumer lending in the first quarter of 2013, additional charge-offs of $134 million were taken.

Net interest income less the provision for credit losses was $8.0 billion for 2015 compared with $8.3 billion for 2014 and $8.5 billion for 2013.

Allowance for Unfunded Loan Commitments and Letters of Credit

We maintain the allowance for unfunded loan commitments and letters of credit at a level we believe is appropriate to absorb estimated probable credit losses incurred on these unfunded credit facilities as of the balance sheet date as discussed in Note 1 Accounting Policies. A rollforward of the allowance is presented below.

Table 68: Rollforward of Allowance for Unfunded Loan Commitments and Letters of Credit
In millions			2015		2014		2013
January 1		$	259	$	242	$	250
Net change in allowance for unfunded loan commitments and letters of credit			2		17		(8)
	December 31	$	261	$	259	$	242