Bank of America 2002 Annual Report Download - page 49

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BANK OF AMERICA 2002 47
Table 15 presents the activity in the allowance for credit losses for 2002 and 2001.
TABLE 15 Allowance for Credit Losses
(Dollars in millions)
2002 2001
Balance, January 1 $ 6,875 $ 6,838
Loans and leases charged off
Commercial – domestic (1,793) (2,120)
Commercial – foreign (566) (249)
Commercial real estate – domestic (45) (46)
Total commercial (2,404) (2,415)
Residential mortgage (56) (39)
Home equity lines (40) (32)
Direct/Indirect consumer (355) (389)
Consumer finance(1) (333) (1,137)
Credit card (1,210) (753)
Other consumer domestic (57) (73)
Foreign consumer (5) (6)
Total consumer (2,056) (2,429)
Total loans and leases charged off (4,460) (4,844)
Recoveries of loans and leases previously charged off
Commercial – domestic 322 171
Commercial – foreign 45 41
Commercial real estate – domestic 8 7
Total commercial 375 219
Residential mortgage 14 13
Home equity lines 14 13
Direct/Indirect consumer 145 139
Consumer finance 78 111
Credit card 116 81
Other consumer domestic 21 23
Foreign consumer –1
Total consumer 388 381
Total recoveries of loans and leases previously charged off 763 600
Net charge-offs (3,697) (4,244)
Provision for credit losses(2) 3,697 4,287
Other, net (24) (6)
Balance, December 31 $ 6,851 $ 6,875
Loans and leases outstanding at December 31 $ 342,755 $ 329,153
Allowance for credit losses as a percentage of loans and leases outstanding at December 31 2.00% 2.09%
Average loans and leases outstanding during the year $ 336,819 $ 365,447
Net charge-offs as a percentage of average outstanding loans and leases during the year 1.10% 1.16%
Allowance for credit losses as a percentage of nonperforming loans at December 31 136.01 152.58
Ratio of the allowance for credit losses at December 31 to net charge-offs 1.85 1.62
(1) Includes $635 related to the exit of the subprime real estate lending business in 2001.
(2) Includes $395 related to the exit of the subprime real estate lending business in 2001.