Bank of America 2015 Annual Report Download - page 179

Bank of America 2015 177
NOTE 5 Allowance for Credit Losses
The table below summarizes the changes in the allowance for credit losses by portfolio segment for 2015, 2014 and 2013.
2015
(Dollars in millions)
Consumer
Real Estate
Credit Card
and Other
Consumer Commercial
Total
Allowance
Allowance for loan and lease losses, January 1 $ 5,935 $ 4,047 $ 4,437 $ 14,419
Loans and leases charged off (1,841)(3,620)(644) (6,105)
Recoveries of loans and leases previously charged off 732 813 222 1,767
Net charge-offs (1,109)(2,807)(422) (4,338)
Write-offs of PCI loans (808) — — (808)
Provision for loan and lease losses (70) 2,278 835 3,043
Other (1) (34) (47) (1) (82)
Allowance for loan and lease losses, December 31 3,914 3,471 4,849 12,234
Reserve for unfunded lending commitments, January 1 — — 528 528
Provision for unfunded lending commitments —— 118 118
Reserve for unfunded lending commitments, December 31 — — 646 646
Allowance for credit losses, December 31 $ 3,914 $ 3,471 $ 5,495 $ 12,880
2014
Allowance for loan and lease losses, January 1 $ 8,518 $ 4,905 $ 4,005 $ 17,428
Loans and leases charged off (2,219) (4,149) (658) (7,026)
Recoveries of loans and leases previously charged off 1,426 871 346 2,643
Net charge-offs (793) (3,278) (312) (4,383)
Write-offs of PCI loans (810) — — (810)
Provision for loan and lease losses (976) 2,458 749 2,231
Other (1) (4) (38) (5) (47)
Allowance for loan and lease losses, December 31 5,935 4,047 4,437 14,419
Reserve for unfunded lending commitments, January 1 — — 484 484
Provision for unfunded lending commitments — — 44 44
Reserve for unfunded lending commitments, December 31 — — 528 528
Allowance for credit losses, December 31 $ 5,935 $ 4,047 $ 4,965 $ 14,947
2013
Allowance for loan and lease losses, January 1 $ 14,933 $ 6,140 $ 3,106 $ 24,179
Loans and leases charged off (3,766) (5,495) (1,108) (10,369)
Recoveries of loans and leases previously charged off 879 1,141 452 2,472
Net charge-offs (2,887) (4,354) (656) (7,897)
Write-offs of PCI loans (2,336) — — (2,336)
Provision for loan and lease losses (1,124) 3,139 1,559 3,574
Other (1) (68) (20) (4) (92)
Allowance for loan and lease losses, December 31 8,518 4,905 4,005 17,428
Reserve for unfunded lending commitments, January 1 — — 513 513
Provision for unfunded lending commitments — — (18) (18)
Other — — (11) (11)
Reserve for unfunded lending commitments, December 31 — — 484 484
Allowance for credit losses, December 31 $ 8,518 $ 4,905 $ 4,489 $ 17,912
(1) Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments.
In 2015, 2014 and 2013, for the PCI loan portfolio, the
Corporation recorded a provision benefit of $40 million, $31 million
and $707 million, respectively. Write-offs in the PCI loan portfolio
totaled $808 million, $810 million and $2.3 billion during 2015,
2014 and 2013, respectively. Write-offs included $234 million,
$317 million and $414 million associated with the sale of PCI
loans during 2015, 2014 and 2013, respectively. Write-offs in
2013 also included certain PCI loans that were ineligible for the
National Mortgage Settlement, but had characteristics similar to
the eligible loans, and the expectation of future cash proceeds
was considered remote. The valuation allowance associated with
the PCI loan portfolio was $804 million, $1.7 billion and $2.5
billion at December 31, 2015, 2014 and 2013, respectively.