Wells Fargo 2012 Annual Report Download - page 167

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PCI ALLOWANCE Based on our regular evaluation of estimates
of cash flows expected to be collected, we may establish an
allowance for a PCI loan or pool of loans, with a charge to
income though the provision for losses. The following table
summarizes the changes in allowance for PCI loan losses.
Other
(in millions) Commercial Pick-a-Pay consumer Total
Balance, December 31, 2008 $ - - - -
Provision for losses due to credit deterioration 850 - 3 853
Charge-offs (520) - - (520)
Balance, December 31, 2009 330 - 3 333
Provision for losses due to credit deterioration 712 - 59 771
Charge-offs (776) - (30) (806)
Balance, December 31, 2010 266 - 32 298
Provision for losses due to credit deterioration 106 - 54 160
Charge-offs (207) - (20) (227)
Balance, December 31, 2011 165 - 66 231
Provision for losses due to credit deterioration 25 - 7 32
Charge-offs (102) - (44) (146)
Balance, December 31, 2012 $ 88 - 29 117
COMMERCIAL PCI CREDIT QUALITY INDICATORS The following
table provides a breakdown of commercial PCI loans by risk category.
Commercial Real Real
and estate estate
(in millions) industrial mortgage construction Foreign Total
December 31, 2012
By risk category:
Pass $ 95 341 207 255 898
Criticized 164 1,629 670 616 3,079
Total commercial PCI loans $ 259 1,970 877 871 3,977
December 31, 2011
By risk category:
Pass $ 191 640 321 - 1,152
Criticized 208 2,630 1,424 1,353 5,615
Total commercial PCI loans $ 399 3,270 1,745 1,353 6,767
165