Regions Bank 2011 Annual Report Download - page 181

Reserve for Unfunded Credit Commitments
The reserve for unfunded credit commitments is based on an analysis of probability of funding and
historical losses. The estimate is calculated based on pools of commitments with similar credit characteristics
(e.g., product type and summary risk rating). The pool-level commitment balance is multiplied by a probability
of funding and a loss factor, which is based on historical losses adjusted for current conditions to arrive at the
reserve.
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES
The following table presents an analysis of the allowance for credit losses by portfolio segment for the year
ended December 31, 2011. The total allowance for credit losses as of December 31, 2011 is then disaggregated to
detail the amounts derived through individual evaluation and the amounts calculated through collective
evaluation. The allowance for credit losses related to individually evaluated loans includes reserves for
non-accrual loans and leases equal to or greater than $2.5 million. The allowance for credit losses related to
collectively evaluated loans includes the remainder of the portfolio.
2011
Commercial
Investor Real
Estate Consumer Total
(In millions)
Allowance for loan losses, January 1, 2011 ................. $ 1,055 $ 1,370 $ 760 $ 3,185
Provision for loan losses ................................ 475 468 587 1,530
Loan losses:
Charge-offs ...................................... (550) (880) (677) (2,107)
Recoveries ....................................... 50 33 54 137
Net loan losses ................................... (500) (847) (623) (1,970)
Allowance for loan losses, December 31, 2011 .............. 1,030 991 724 2,745
Reserve for unfunded credit commitments, January 1, 2011 .... $ 32 $ 16 $ 23 $ 71
Provision for unfunded credit commitments ............ (2) 10 (1) 7
Reserve for unfunded credit commitments, December 31,
2011 ............................................. 30 26 22 78
Allowance for credit losses, December 31, 2011 ............. $ 1,060 $ 1,017 $ 746 $ 2,823
Portion of allowance ending balance:
Individually evaluated for impairment ................. $ 101 $ 169 $ 1 $ 271
Collectively evaluated for impairment ................. 959 848 745 2,552
Total allowance evaluated for impairment .................. $ 1,060 $ 1,017 $ 746 $ 2,823
Portion of loan portfolio ending balance:
Individually evaluated for impairment ................. $ 473 $ 624 $ 7 $ 1,104
Collectively evaluated for impairment ................. 35,552 10,103 30,835 76,490
Total loans evaluated for impairment ...................... $36,025 $10,727 $30,842 $77,594
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