Bank of America 2010 Annual Report Download - page 127

Table VII Allowance for Credit Losses
(Dollars in millions) 2010 2009 2008 2007 2006
Allowance for loan and lease losses, beginning of period, before effect of the January 1 adoption of new
consolidation guidance
$37,200 $ 23,071 $ 11,588 $ 9,016 $ 8,045
Allowance related to adoption of new consolidation guidance
10,788 n/a n/a n/a n/a
Allowance for loan and lease losses, January 1 47,988 23,071 11,588 9,016 8,045
Loans and leases charged off
Residential mortgage (3,779) (4,436) (964) (78) (74)
Home equity
(7,059) (7,205) (3,597) (286) (67)
Discontinued real estate
(77) (104) (19) n/a n/a
U.S. credit card
(13,818) (6,753) (4,469) (3,410) (3,546)
Non-U.S. credit card
(2,424) (1,332) (639) (453) (292)
Direct/Indirect consumer
(4,303) (6,406) (3,777) (1,885) (857)
Other consumer
(320) (491) (461) (346) (327)
Total consumer charge-offs
(31,780) (26,727) (13,926) (6,458) (5,163)
U.S. commercial
(1)
(3,190) (5,237) (2,567) (1,135) (597)
Commercial real estate
(2,185) (2,744) (895) (54) (7)
Commercial lease financing
(96) (217) (79) (55) (28)
Non-U.S. commercial
(139) (558) (199) (28) (86)
Total commercial charge-offs
(5,610) (8,756) (3,740) (1,272) (718)
Total loans and leases charged off
(37,390) (35,483) (17,666) (7,730) (5,881)
Recoveries of loans and leases previously charged off
Residential mortgage 109 86 39 22 35
Home equity
278 155 101 12 16
Discontinued real estate
9 33n/an/a
U.S. credit card
791 206 308 347 452
Non-U.S. credit card
217 93 88 74 67
Direct/Indirect consumer
967 943 663 512 247
Other consumer
59 63 62 68 110
Total consumer recoveries
2,430 1,549 1,264 1,035 927
U.S. commercial
(2)
391 161 118 128 261
Commercial real estate
168 42 8 7 4
Commercial lease financing
39 22 19 53 56
Non-U.S. commercial
28 21 26 27 94
Total commercial recoveries
626 246 171 215 415
Total recoveries of loans and leases previously charged off
3,056 1,795 1,435 1,250 1,342
Net charge-offs
(34,334) (33,688) (16,231) (6,480) (4,539)
Provision for loan and lease losses
28,195 48,366 26,922 8,357 5,001
Other
(3)
36 (549) 792 695 509
Allowance for loan and lease losses, December 31
41,885 37,200 23,071 11,588 9,016
Reserve for unfunded lending commitments, January 1 1,487 421 518 397 395
Provision for unfunded lending commitments
240 204 (97) 28 9
Other
(4)
(539) 862 – 93 (7)
Reserve for unfunded lending commitments, December 31
1,188 1,487 421 518 397
Allowance for credit losses, December 31 $43,073 $ 38,687 $ 23,492 $12,106 $ 9,413
(1)
Includes U.S. small business commercial charge-offs of $2.0 billion, $3.0 billion, $2.0 billion, $931 million and $424 million in 2010, 2009, 2008, 2007 and 2006, respectively.
(2)
Includes U.S. small business commercial recoveries of $107 million, $65 million, $39 million, $51 million and $54 million in 2010, 2009, 2008, 2007 and 2006, respectively.
(3)
The 2009 amount includes a $750 million reduction in the allowance for loan and lease losses related to credit card loans of $8.5 billion which were exchanged for $7.8 billion in held-to-maturity debt securities that were issued by the
Corporation’s U.S. Credit Card Securitization Trust and retained by the Corporation. The 2008 amount includes the $1.2 billion addition of the Countrywide allowance for loan losses as of July 1, 2008. The 2007 and 2006 amounts
include $750 million and $577 million of additions to allowance for loan losses for certain acquisitions.
(4)
The 2010 amount includesthe remaining balance ofthe acquired Merrill Lynch liability excluding those commitments accounted for under the fair value option, net of accretion, and the impactof funding previously unfunded positions.
The 2009 amount represents primarily accretion of the Merrill Lynch purchase accounting adjustment and the impact of funding previously unfunded positions. The 2007 amount includes a $124 million addition for reserve for
unfunded lending commitments for a prior acquisition.
n/a = not applicable
Bank of America 2010 125