Capital One 2015 Annual Report Download - page 106

87 Capital One Financial Corporation (COF)
Table 28: Allowance for Loan and Lease Losses and Unfunded Lending Commitments Activity
Consumer Banking
(Dollars in millions)
Credit
Card Auto
Home
Loan
Retail
Banking
Total
Consumer
Banking
Commercial
Banking
Other
Loans(1) Total
Allowance for loan and lease losses:
Balance as of December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . $ 3,214 $ 606 $ 83 $ 63 $ 752 $ 338 $ 11 $ 4,315
Provision (benefit) for credit losses . . . . . . . . . . . . . . . . . . . . . . 2,750 674 (3) 32 703 67 (5) 3,515
Charge-offs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,963) (898) (32) (59) (989) (34) (10) (4,996)
Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,235 279 15 20 314 24 9 1,582
Net charge-offs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,728) (619) (17) (39) (675) (10) (1) (3,414)
Other changes(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (32) — (1) — (1) 0 0 (33)
Balance as of December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . 3,204 661 62 56 779 395 5 4,383
Unfunded lending commitments reserve:
Balance as of December 31, 2013 . . . . . . . . . . . . . . . . . . . . . . . — — — 7 7 80 — 87
Provision for unfunded lending commitments. . . . . . . . . . . . . . — — — — — 26 — 26
Balance as of December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . — — — 7 7 106 — 113
Combined allowance and unfunded reserve as of
December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,204 $ 661 $ 62 $ 63 $ 786 $ 501 $ 5 $ 4,496
Allowance for loan and lease losses:
Balance as of December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . $ 3,204 $ 661 $ 62 $ 56 $ 779 $ 395 $ 5 $ 4,383
Provision (benefit) for credit losses(3) . . . . . . . . . . . . . . . . . . . . 3,417 739 16 64 819 256 (2) 4,490
Charge-offs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,028) (998) (20) (64) (1,082) (76) (7) (5,193)
Recoveries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,110 324 11 16 351 29 8 1,498
Net charge-offs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,918) (674) (9) (48) (731) (47) 1 (3,695)
Other changes(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (49) — 1 — 1 — — (48)
Balance as of December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . 3,654 $ 726 70 72 868 604 4 5,130
Unfunded lending commitments reserve:
Balance as of December 31, 2014 . . . . . . . . . . . . . . . . . . . . . . . — — — 7 7 106 — 113
Provision for unfunded lending commitments(3) . . . . . . . . . . . . — — — — — 46 — 46
Other changes(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ———— — 9—9
Balance as of December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . — — — 7 7 161 — 168
Combined allowance and unfunded reserve as of
December 31, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,654 $ 726 $ 70 $ 79 $ 875 $ 765 $ 4 $ 5,298
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(1) Primarily consists of our discontinued GreenPoint mortgage operations loan portfolio.
(2) Represents foreign currency translation adjustments and the net impact of loan transfers and sales. At acquisition date we also recognized the fair value of
the unfunded lending commitments reserve of the GE Healthcare acquisition. See “Note 2—Business Developments” for additional information about the
GE Healthcare acquisition.
(3) Includes a provision for credit losses of $49 million to establish an initial allowance and reserve related to the loans acquired in the GE Healthcare acquisition.