Regions Bank 2012 Annual Report Download - page 101

Activity in the allowance for credit losses is summarized as follows:
Table 17—Allowance for Credit Losses
2012 2011 2010 2009 2008
(In millions)
Allowance for loan losses at January 1 .......................... $ 2,745 $ 3,185 $ 3,114 $ 1,826 $ 1,321
Loans charged-off:
Commercial and industrial ................................ 203 294 429 384 235
Commercial real estate mortgage—owner occupied ............ 193 248 225 89 60
Commercial real estate construction—owner occupied .......... 8 8 25 19 12
Commercial investor real estate mortgage .................... 226 685 879 590 328
Commercial investor real estate construction ................. 46 195 565 488 556
Residential first mortgage ................................ 147 220 240 206 83
Home equity ........................................... 266 353 432 442 243
Indirect ............................................... 23 23 34 68 56
Consumer credit card .................................... 45 13 — — —
Other consumer ........................................ 66 68 83 83 66
1,223 2,107 2,912 2,369 1,639
Recoveries of loans previously charged-off:
Commercial and industrial ................................ 61 36 33 28 26
Commercial real estate mortgage—owner occupied ............ 16 14 11 6 5
Commercial real estate construction—owner occupied .......... — — 1 1 2
Commercial investor real estate mortgage .................... 36 27 14 8 4
Commercial investor real estate construction ................. 9 6 10 4 3
Residential first mortgage ................................53242
Home equity ........................................... 32 25 18 27 17
Indirect ............................................... 8 10 15 21 15
Consumer credit card .................................... 2 ————
Other consumer ........................................ 15 16 16 17 18
184 137 120 116 92
Net charge-offs:
Commercial and industrial ................................ 142 258 396 356 209
Commercial real estate mortgage—owner occupied ............ 177 234 214 83 55
Commercial real estate construction—owner occupied .......... 8 8 24 18 10
Commercial investor real estate mortgage .................... 190 658 865 582 324
Commercial investor real estate construction ................. 37 189 555 484 553
Residential first mortgage ................................ 142 217 238 202 81
Home equity ........................................... 234 328 414 415 226
Indirect ............................................... 15 13 19 47 41
Consumer credit card .................................... 43 13 — — —
Other consumer ........................................ 51 52 67 66 48
1,039 1,970 2,792 2,253 1,547
Allowance allocated to sold loans and loans transferred to loans held
for sale ................................................. ———— (5)
Provision for loan losses ...................................... 213 1,530 2,863 3,541 2,057
Allowance for loan losses at December 31 ....................... $ 1,919 $ 2,745 $ 3,185 $ 3,114 $ 1,826
Reserve for unfunded credit commitments at January 1 ............. $ 78 $ 71 $ 74 $ 74 $ 58
Provision (credit) for unfunded credit commitments ............ 5 7 (3) — 16
Reserve for unfunded credit commitments at December 31 .......... $ 83 $ 78 $ 71 $ 74 $ 74
Allowance for credit losses ................................... $ 2,002 $ 2,823 $ 3,256 $ 3,188 $ 1,900
Loans, net of unearned income, outstanding at end of period ......... $73,995 $77,594 $82,864 $90,674 $97,419
Average loans, net of unearned income outstanding for the period ..... $76,035 $80,673 $86,660 $94,523 $97,601
Ratios:
Allowance for loan losses at end of period to loans, net of
unearned income ...................................... 2.59% 3.54% 3.84% 3.43% 1.87%
Allowance for loan losses at end of period to non-performing
loans, excluding loans held for sale ....................... 1.14x 1.16x 1.01x 0.89x 1.74x
Net charge-offs as percentage of:
Average loans, net of unearned income .................. 1.37% 2.44% 3.22% 2.38% 1.59%
Provision for loan losses .............................. 487.8 128.8 97.5 63.6 75.2
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