|
The following table summarizes the activity in the allowance for loan and lease losses by comiercial
<br />and consumer portfolio segments for the year ended December 31, 2011.
<br />December 31, 2011
<br />(dollars in thousands) Commercial Consumer Unallocated Total
<br />Balance at beginning of year $ 454,809 $ 511,591 $92,617 $1,059,017
<br />Provision for loan and lease losses 138,357 155,366 2,383 296,106
<br />Charge -offs (344,628) (263,487) - (608,115)
<br />Recoveries 83,192 39,988 123,180
<br />Net charge -offs (261,436) (223,499) (484,935)
<br />Balance at end of year $ 331,730 $ 443,458 $95,000 $ 870,188
<br />The following table disaggregates our allocated component of the allowance for loan and lease losses
<br />and recorded investment in loans by impairment methodology as of December 31, 2011.
<br />December 31, 2011
<br />Allocated allowance for loan and lease losses Recorded investment in loans
<br />(dollars in thousands) Commercial Consumer Total Commercial Consumer Total
<br />Collectively evaluated $308,185 $443,458 $751,643 $21,437,062 $21,449,077 $42,886,139
<br />Individually evaluated 23,545 - 23,545 541,255 - 541,255
<br />Total $331,730 $443,458 $775,188 $21,978,317 $21,449,077 $43,427,394
<br />The following table summarizes the activity in the allowance for loan and lease losses by commercial
<br />and consumer portfolio segments for the year ended December 31, 2010.
<br />December 31, 2010
<br />(dollars in thousands) Commercial Consumer Unallocated Total
<br />Balance at beginning of year $ 565,146 $ 602,514 $53,001 $1,220,661
<br />Provision for loan and lease losses 270,600 202,566 39,616 512,782
<br />Charge -offs (439,859) (332,795) (772,654)
<br />Recoveries 58,922 39,306 98,228
<br />Net charge -offs (380,937) (293,489) (674,426)
<br />Balance at end of year $ 454,809 $ 511,591 $92,617 $1,059,017
<br />The following table disaggregates our allocated component of the allowance for loan and lease losses
<br />and recorded investment in loans by impairment methodology as of December 31, 2010.
<br />December 31, 2010
<br />Allocated allowance for loan and lease losses Recorded investment in loans
<br />(dollars in thousands) Commercial Consumer Total Commercial Consumer Total
<br />Collectively evaluated $374,779 $511,591 $886,370 $20,164,039 $21,794,944 $41,958,983
<br />Individually evaluated 80,030 80,030 1,048,737 - 1,048,737
<br />Total $454,809 $511,591 $966,400 $21,212,776 $21,794,944 $43,007,720
<br />Our total allowance for credit losses decreased compared to the prior year as a result of modest
<br />improvements in the current economic conditions for most sectors. The improvement is reflected through
<br />our estimate for a lower provision for credit losses for 2011 relative to 2010. While there are some signs of
<br />improvement in economic conditions, there remains considerable underlying potential volatility. High
<br />unemployment, a fragile recovery in the housing sector, commodity volatility and a stressed commercial
<br />real estate sector are all factors that may continue to negatively influence the majority of our loan and lease
<br />portfolios.
<br />-27-
<br />2011 Bank of the West Annual Report
<br />
|