Bank of the West 2014 Annual Report Download - page 27

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5. Allowance for Credit Losses
The allowance for credit losses reflects management’s estimate of credit losses inherent in the loan and lease
portfolio and reserve for unfunded lending commitments. We consider the allowance for credit losses at the end of 2014
to be adequate to cover such losses. Changes in the allowance for credit losses were:
December 31,
(dollars in thousands) 2014 2013
Balance as of January 1, $ 671,735 $ 746,661
Provision for credit losses 64,455 44,686
Charge-offs:
Commercial:
Commercial and industrial (49,544) (47,459)
Commercial real estate (10,901) (12,742)
Construction (101) (7,001)
Equipment financing (7,855) (12,420)
Agriculture (5,578) (20,127)
Total commercial(1) (73,979) (99,749)
Consumer:
Installments and lines (76,116) (92,421)
Residential secured–closed-end (11,231) (32,411)
Residential secured–revolving, open-end (3,311) (8,861)
Total consumer(1) (90,658) (133,693)
Total charge-offs (164,637) (233,442)
Recoveries:
Commercial:
Commercial and industrial 14,966 28,610
Commercial real estate 10,638 15,976
Construction 2,970 12,037
Equipment financing 7,867 10,296
Agriculture 1,201 1,257
Total commercial 37,642 68,176
Consumer:
Installments and lines 29,795 34,163
Residential secured–closed-end 4,869 9,713
Residential secured–revolving, open-end 1,738 1,778
Total consumer 36,402 45,654
Total recoveries 74,044 113,830
Net charge-offs (90,593) (119,612)
Balance as of December 31, $ 645,597 $ 671,735
Components:
Allocated loans and leases $ 536,305 $ 589,573
Unallocated loans and leases 65,000 45,000
Total allowance for loans and leases 601,305 634,573
Reserve for unfunded commitments 44,292 37,162
Allowance for credit losses $ 645,597 $ 671,735
(1) There were no charge-offs due to commercial or consumer loans transferred to held for sale for the years ended
December 31, 2014 and 2013.
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