SunTrust 2013 Annual Report Download - page 149

Notes to Consolidated Financial Statements, continued
133
NOTE 7 - ALLOWANCE FOR CREDIT LOSSES
The allowance for credit losses consists of the ALLL and the reserve for unfunded commitments. Activity in the allowance
for credit losses for the years ended December 31 is summarized in the table below:
(Dollars in millions) 2013 2012 2011
Balance at beginning of period $2,219 $2,505 $3,032
Provision for loan losses 548 1,398 1,523
Provision/(benefit) for unfunded commitments 5(3)(10)
Loan charge-offs (869)(1,907)(2,241)
Loan recoveries 191 226 201
Balance at end of period $2,094 $2,219 $2,505
Components:
ALLL $2,044 $2,174 $2,457
Unfunded commitments reserve150 45 48
Allowance for credit losses $2,094 $2,219 $2,505
1 The unfunded commitments reserve is recorded in other liabilities in the Consolidated Balance Sheets.
Activity in the ALLL by segment for the years ended December 31 is presented in the tables below:
2013
(Dollars in millions) Commercial Residential Consumer Total
Balance at beginning of period $902 $1,131 $141 $2,174
Provision for loan losses 197 243 108 548
Loan charge-offs (219) (531) (119) (869)
Loan recoveries 66 87 38 191
Balance at end of period $946 $930 $168 $2,044
2012
(Dollars in millions) Commercial Residential Consumer Total
Balance at beginning of period $964 $1,354 $139 $2,457
Provision for loan losses 241 1,062 95 1,398
Loan charge-offs (457) (1,316) (134) (1,907)
Loan recoveries 154 31 41 226
Balance at end of period $902 $1,131 $141 $2,174
As discussed in Note 1, “Significant Accounting Policies,” the ALLL is composed of both specific allowances for certain
nonaccrual loans and TDRs and general allowances grouped into loan pools based on similar characteristics. No allowance
is required for loans carried at fair value. Additionally, the Company records an immaterial allowance for loan products that
are guaranteed by government agencies, as there is nominal risk of principal loss.