Capital One 2009 Annual Report Download - page 107

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TABLE H—SUMMARY OF ALLOWANCE FOR LOAN AND LEASE LOSSES
Table H sets forth activity in the allowance for loan and lease losses for the periods indicated.
Year Ended December 31
(Dollars In Thousands)
2009(4) 2008 2007 2006 2005
Balance at be
g
innin
g
of
y
ea
r
................... $ 4,523,960 $ 2,963,000 $ 2,180,000 $ 1,790,000 $ 1,505,000
Provision for loan and lease losses fro
m
continuing operations:
Domestic car
d
................................ 1,985,467 2,934,662 1,287,251 1,156,882 954,698
International car
d
........................... 212,891 224,595 148,812 240,349 163,103
Commercial banking (3) .................. 1,003,742 245,976 (16,553) (4,280) 367,966
Consumer bankin
g
(3) ..................... 855,914 1,522,545 1,136,011 79,987
—
Othe
r
(3) ........................................... 172,097 173,262 80,981 3,500 5,305
Total provision for loan and lease losses
from continuin
g
operations ................ $ 4,230,111 $ 5,101,040 $ 2,636,502 $ 1,476,438 $ 1,491,072
Provision for loan and lease losses fro
m
discontinued operations ...................... —
—
80,151
—
—
Acquisitions ............................................ —
—
—
225,890 224,144
Othe
r
....................................................... (59,042) (61,909) 26,888 72,821 (12,731)
Charge-offs:
Domestic car
d
................................ (3,049,676) (2,244,488) (1,315,172) (1,576,016) (1,329,818)
International car
d
........................... (284,453) (255,145) (252,691) (249,332) (193,360)
Comme
r
cial banking ..................... (443,947) (87,115) (17,114) (5,197)
—
Consumer bankin
g
......................... (1,356,937) (1,395,552) (964,642) (93,134) (324,761)
Othe
r
.............................................. (207,010) (168,931) (30,600) (8,774) (17,897)
Total charge-offs ........................... $ (5,342,023) $ (4,151,231) $ (2,580,219) $ (1,932,453) $ (1,865,836)
Principal recoveries:
Domestic car
d
................................ 446,822 424,979 392,544 449,728 342,031
International car
d
........................... 51,825 65,041 71,869 68,280 43,560
Commercial Bankin
g
..................... 10,041 3,868 3,896 477
—
Consumer loans ............................. 263,161 178,190 151,355 27,243 60,119
Othe
r
.............................................. 2,540 982 14 1,576 2,641
Total principal recoveries .............. 774,389 673,060 619,678 547,304 448,351
N
et charge-offs(1) .................................... (4,567,634) (3,478,171) (1,960,541) (1,385,149) (1,417,485)
Balance at end of year ............................. $ 4,127,395 $ 4,523,960 $ 2,963,000 $ 2,180,000 $ 1,790,000
Allowance for loan and lease losses to
loans held for investment at end o
f
y
ea
r
..................................................... 4.55% 4.48% 2.91% 2.26% 2.99%
Allowance for loan and lease losses by
geographic distribution:
Domestic ....................................... $ 3,928,476 $ 4,330,864 $ 2,754,065 $ 1,949,864 $ 1,639,277
International .................................. 198,919 193,096 208,935 230,136 150,723
Allowance for loan and lease losses by
loan cate
g
or
y
:
Domestic car
d
................................ $ 1,926,724 $ 2,543,855 $ 1,428,703 $ 1,064,723 $ 1,023,437
International car
d
........................... 198,919 193,096 208,935 230,136 150,723
Commercial bankin
g
..................... 785,598 300,620 153,419 32,000
—
Consumer bankin
g
......................... 1,076,538 1,314,400 1,005,267 630,950 401,647
Othe
r
(2) ........................................... 139,616 171,989 166,676 222,191 214,193
Allowance for loan and lease losses ....... $ 4,127,395 $ 4,523,960 $ 2,963,000 $ 2,180,000 $ 1,790,000
(1) Does not include charge-offs of $22.3 million and $29.2 million in 2006 and 2005, respectively, relating to certain loans which were
segregated into pools apart from the remaining portfolio and accounted for under ASC 310-10/SOP 03-3.
(2) Includes Hibernia and North Fork Bank acquisition results for 2005 and 2006, respectively, which were allocated to the appropriate segments
in subsequent years.
(3) Reflects the appropriate allocation among segments related to Hibernia and North Fork Bank acquisition results in 2006 and 2007,
respectively.
(4) The loans acquired in the Chevy Chase Bank acquisition are accounted for under ASC 310-10/SOP 03-3. Accordingly no allowance was
recorded at acquisition. See “Note 3 – Loans Acquired in a Transfer” for further details.