Annual Report - CoBank

Reserve for Credit ExposureThe following tables present the changes in the components of our reserve for credit exposure and the details of the endingbalances. The reserve for credit exposure includes the allowance for loan losses and the reserve for unfunded commitments. Theelements of our reserve for credit exposure are presented by operating segment.Strategic RuralAgribusiness Relationships (1) Infrastructure TotalDecember 31, 2011Allowance for Loan LossesBeginning Balance $ 284,217 $ - $ 116,527 $400,744Charge-offs (10,559) - (12,956) (23,515)Recoveries 6,527 - 420 6,947Provision for Loan Losses 37,000 - 21,000 58,000Transfers to Reserve for Unfunded Commitments (2) (47,868) - (6,252) (54,120)Ending Balance 269,317 - 118,739 388,056Reserve for Unfunded CommitmentsBeginning Balance 68,599 - 31,200 99,799Transfers from Allowance for Loan Losses (2) 47,868 - 6,252 54,120Ending Balance 116,467 - 37,452 153,919Reserve for Credit Exposure $ 385,784 $ - $ 156,191 $541,975Reserve for Credit ExposureEnding Balance, Reserve for Credit Exposure Related to Loans:Individually Evaluated for Impairment $ 16,254 $ - $ 7,500 $23,754Collectively Evaluated for Impairment 369,530 - 148,691 518,221Total $ 385,784 $ - $ 156,191 $541,975LoansEnding Balance for Loans and Related Accrued Interest:Individually Evaluated for Impairment $ 80,351 $ 15,275,708 $ 54,511 $ 15,410,570Collectively Evaluated for Impairment 18,837,654 - 12,191,938 31,029,592Total $ 18,918,005 $ 15,275,708 $ 12,246,449 $ 46,440,162December 31, 2010Allowance for Loan LossesBeginning Balance $ 264,540 $ - $ 105,277 $369,817Charge-offs (25,893) - (50,502) (76,395)Recoveries 4,234 - 14,514 18,748Provision for Loan Losses 7,167 - 52,833 60,000Transfers from (to) Reserve for Unfunded Commitments (2) 34,169 - (5,595) 28,574Ending Balance 284,217 - 116,527 400,744Reserve for Unfunded CommitmentsBeginning Balance 102,768 - 25,605 128,373Transfers from (to) Allowance for Loan Losses (2) (34,169) - 5,595 (28,574)Ending Balance 68,599 - 31,200 99,799Reserve for Credit Exposure $ 352,816 $ - $ 147,727 $500,543Reserve for Credit ExposureEnding Balance, Reserve for Credit Exposure Related to Loans:Individually Evaluated for Impairment $ 16,918 $ - $ 23,200 $40,118Collectively Evaluated for Impairment 335,898 - 124,527 460,425Total $ 352,816 $ - $ 147,727 $500,543LoansEnding Balance for Loans and Related Accrued Interest:Individually Evaluated for Impairment $ 93,373 $ 15,435,194 $ 73,600 $ 15,602,167Collectively Evaluated for Impairment 22,644,294 11,917,340 34,561,634Total $ 22,737,667 $ 15,435,194 $ 11,990,940 $ 50,163,801CoBank 2011 Annual Report74