Wells Fargo 2005 Annual Report Download - page 77

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75
(in millions) Year ended December 31,
2005 2004 2003 2002 2001
Balance, beginning of year $ 3,950 $ 3,891 $ 3,819 $ 3,717 $ 3,681
Provision for credit losses 2,383 1,717 1,722 1,684 1,727
Loan charge-offs:
Commercial and commercial real estate:
Commercial (406) (424) (597) (716) (692)
Other real estate mortgage (7) (25) (33) (24) (32)
Real estate construction (6) (5) (11) (40) (37)
Lease financing (35) (62) (41)(21)(22)
Total commercial and commercial real estate (454) (516) (682) (801) (783)
Consumer:
Real estate 1-4 family first mortgage (111) (53) (47) (39) (40)
Real estate 1-4 family junior lien mortgage (136) (107) (77) (55) (36)
Credit card (553) (463) (476) (407) (421)
Other revolving credit and installment (1,480) (919) (827) (770) (770)
Total consumer (2,280) (1,542) (1,427) (1,271) (1,267)
Foreign (298) (143) (105) (84) (78)
Total loan charge-offs (3,032) (2,201) (2,214) (2,156) (2,128)
Loan recoveries:
Commercial and commercial real estate:
Commercial 133 150 177 162 96
Other real estate mortgage 16 17 11 16 22
Real estate construction 13 61119 3
Lease financing 21 26 8 — —
Total commercial and commercial real estate 183 199 207 197 121
Consumer:
Real estate 1-4 family first mortgage 21 61086
Real estate 1-4 family junior lien mortgage 31 24 13 10 8
Credit card 86 62 50 47 40
Other revolving credit and installment 365 220 196 205 203
Total consumer 503 312 269 270 257
Foreign 63 24 19 14 18
Total loan recoveries 749 535 495 481 396
Net loan charge-offs (2,283) (1,666) (1,719) (1,675) (1,732)
Other 7 8 69 93 41
Balance, end of year $ 4,057 $ 3,950 $ 3,891 $ 3,819 $ 3,717
Components:
Allowance for loan losses $ 3,871 $ 3,762 $ 3,891 $ 3,819 $ 3,717
Reserve for unfunded credit commitments (1) 186 188 — — —
Allowance for credit losses $ 4,057 $ 3,950 $ 3,891 $ 3,819 $ 3,717
Net loan charge-offs as a percentage of average total loans .77% .62% .81% .96% 1.10%
Allowance for loan losses as a percentage of total loans 1.25% 1.31% 1.54% 1.98% 2.22%
Allowance for credit losses as a percentage of total loans 1.31 1.37 1.54 1.98 2.22
(1) Effective September 30, 2004, we transferred the portion of the allowance for loan losses related to commercial lending commitments and letters of credit to other liabilities.
The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded credit commitments.
Changes in the allowance for credit losses were: