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Table VI Allowance for Credit Losses
(Dollars in millions) 2006 2005 2004 2003 2002
Allowance for loan and lease losses, January 1
$ 8,045
$ 8,626 $ 6,163 $ 6,358 $ 6,278
FleetBoston balance, April 1, 2004
–
– 2,763 – –
MBNA balance, January 1, 2006
577
––––
Loans and leases charged off
Residential mortgage
(74)
(58) (62) (64) (56)
Credit card – domestic
(3,546)
(4,018) (2,536) (1,657) (1,210)
Credit card – foreign
(292)
––––
Home equity lines
(67)
(46) (38) (38) (40)
Direct/Indirect consumer
(748)
(380) (344) (322) (355)
Other consumer
(436)
(376) (295) (343) (395)
Total consumer
(5,163)
(4,878) (3,275) (2,424) (2,056)
Commercial – domestic
(597)
(535) (504) (857) (1,625)
Commercial real estate
(7)
(5) (12) (46) (45)
Commercial lease financing
(28)
(315) (39) (132) (168)
Commercial – foreign
(86)
(61) (262) (408) (566)
Total commercial
(718)
(916) (817) (1,443) (2,404)
Total loans and leases charged off
(5,881)
(5,794) (4,092) (3,867) (4,460)
Recoveries of loans and leases previously charged off
Residential mortgage
35
31 26 24 14
Credit card – domestic
452
366 231 143 116
Credit card – foreign
67
––––
Home equity lines
16
15 23 26 14
Direct/Indirect consumer
224
132 136 141 145
Other consumer
133
101 102 88 99
Total consumer
927
645 518 422 388
Commercial – domestic
261
365 327 224 314
Commercial real estate
4
515 5 7
Commercial lease financing
56
84 30 8 9
Commercial – foreign
94
133 89 102 45
Total commercial
415
587 461 339 375
Total recoveries of loans and leases previously charged off
1,342
1,232 979 761 763
Net charge-offs
(4,539)
(4,562) (3,113) (3,106) (3,697)
Provision for loan and lease losses
5,001
4,021 2,868 2,916 3,801
Other
(68)
(40) (55) (5) (24)
Allowance for loan and lease losses, December 31
9,016
8,045 8,626 6,163 6,358
Reserve for unfunded lending commitments, January 1
395
402 416 493 597
FleetBoston balance, April 1, 2004
–
–85 – –
Provision for unfunded lending commitments
9
(7) (99) (77) (104)
Other
(7)
––––
Reserve for unfunded lending commitments, December 31
397
395 402 416 493
Total
$ 9,413
$ 8,440 $ 9,028 $ 6,579 $ 6,851
Loans and leases outstanding at December 31
$706,490
$573,791 $521,813 $371,433 $342,890
Allowance for loan and lease losses as a percentage of loans and leases outstanding at
December 31
1.28%
1.40% 1.65% 1.66% 1.85%
Consumer allowance for loan and lease losses as a percentage of consumer loans and
leases outstanding at December 31
1.19
1.27 1.34 1.25 0.95
Commercial allowance for loan and lease losses as a percentage of commercial loans and
leases outstanding at December 31
1.44
1.62 2.19 2.40 2.43
Average loans and leases outstanding during the year
$652,417
$537,218 $472,617 $356,220 $336,820
Net charge-offs as a percentage of average loans and leases outstanding during
the year
(1)
0.70%
0.85% 0.66% 0.87% 1.10%
Allowance for loan and lease losses as a percentage of total nonperforming loans and
leases at December 31
505
532 390 215 126
Ratio of the allowance for loan and lease losses at December 31 to net charge-offs
(1)
1.99
1.76 2.77 1.98 1.72
(1) For 2006, the impact of SOP 03-3 decreased net charge-offs by $288 million. Excluding the impact of SOP 03-3, net charge-offs as a percentage of average loans and leases outstanding for 2006 was 0.74 percent, and the
ratio of the Allowance for Loan and Lease Losses to net charge-offs was 1.87 at December 31, 2006.
90
Bank of America 2006