eTrade 2005 Annual Report Download - page 145

Year Ended December31,
2005
2004
2003
Allowance for loan losses, beginning of year
$
47,681
$
37,847
$
27,666
Provision for loan losses
54,016
38,121
38,523
Acquired through acquisitions
—
1,547
2,748
Charge-offs
(56,847
)
(50,341
)
(53,734
)
Recoveries
18,436
20,507
22,644
Allowance for loan losses, end of year
$
63,286
$
47,681
$
37,847
During 2005, the allowance for loan losses increased by $15.6 million. Approximately $12.9 million of this increase is due to higher real
estate loans outstanding which increased by $8.1 billion during 2005. The remaining increase in the allowance was due to slightly
higher expected losses on RV and credit card loans offset by lower automobile loan related losses.
The $8.6 million increase in net charge-offs in 2005 was primarily due to higher net charge-offs on credit cards of $6.7 million, marine
and RV of $4.7 million and real estate loan portfolios of $2.8 million, offset partially by lower net charge-offs on automobile loans of $5.8
million. Higher credit card charge-offs are the
94

2006. EDGAR Online, Inc.