Wells Fargo 2010 Annual Report Download - page 137

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The following table summarizes the activity in the allowance for credit losses by our commercial and consumer portfolio segments.
Year ended December 31, 2010
(in millions) Commercial
Consumer
Total
Balance, beginning of year $ 8,141
16,890
25,031
Provision for credit losses 4,913
10,840
15,753
Interest income on certain impaired loans
(139)
(127)
(266)
Loan charge-offs
(5,433)
(14,667)
(20,100)
Loan recoveries
678
1,669
2,347
Net loan charge-offs
(4,755)
(12,998)
(17,753)
Allowance related to business combinations/other
9
689
698
Balance, end of year $ 8,169
15,294
23,463
The following table disaggregates our allowance for credit losses and recorded investment in loans by impairment methodology.
December 31, 2010
Allowance for credit losses
Recorded investment in loans
(in millions)
Commercial
Consumer
Total
Commercial
Consumer
Total
Collectively evaluated (1) $
5,424
11,539
16,963
302,392
387,707
690,099
Individually evaluated (2) 2,479
3,723
6,202
11,731
14,007
25,738
PCI (3)
266
32
298
7,935
33,495
41,430
Total $
8,169
15,294
23,463
322,058
435,209
757,267
(1) Represents loans collectively evaluated for impairment in accordance with ASC 450-20, Loss Contingencies (formerly FAS 5), and pursuant to amendments by ASU 2010-20
regarding allowance for unimpaired loans.
(2) Represents loans individually evaluated for impairment in accordance with ASC 310-10, Receivables (formerly FAS 114), and pursuant to amendments by ASU 2010-20
regarding allowance for impaired loans.
(3) Represents the allowance and related loan carrying value determined in accordance with ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated
Credit Quality (formerly SOP 03-3) and pursuant to amendments by ASU 2010-20 regarding allowance for PCI loans.
135