Annual Report - CoBank

Strategic RuralAgribusiness Relationships (1) Infrastructure TotalDecember 31, 2009Allowance for Loan LossesBeginning Balance $ 230,995 $ - $ 98,203 $329,198Charge-offs (36,958) - (33,240) (70,198)Recoveries 4,850 - 117 4,967Provision for Loan Losses 39,000 - 41,000 80,000Transfers from (to) Reserve for Unfunded Commitments (2) 26,653 - (803) 25,850Ending Balance 264,540 - 105,277 369,817Reserve for Unfunded CommitmentsBeginning Balance 129,421 - 24,802 154,223Transfers from (to) Allowance for Loan Losses (2) (26,653) - 803 (25,850)Ending Balance 102,768 - 25,605 128,373Reserve for Credit Exposure $ 367,308 $ - $ 130,882 $498,190Reserve for Credit ExposureEnding Balance, Reserve for Credit Exposure Related to Loans:Individually Evaluated for Impairment $ 38,760 $ - $ 27,052 $65,812Collectively Evaluated for Impairment 328,548 - 103,830 432,378Total $ 367,308 $ - $ 130,882 $498,190LoansEnding Balance for Loans and Related Accrued Interest:Individually Evaluated for Impairment $ 209,141 $ 15,319,728 $ 98,489 $ 15,627,358Collectively Evaluated for Impairment 17,303,598 11,400,984 28,704,582Total $ 17,512,739 $ 15,319,728 $ 11,499,473 $ 44,331,940(1)As a result of our strong collateral position with respect to loans to Associations, along with the earnings, capital and loss reserves of Associations that serve as an additional layerof protection against losses, no reserve for credit exposure is recorded in our Strategic Relationships operating segment.(2) These transfers generally occur as a result of advances on or repayments of seasonal lines of credit or other loans.CoBank 2011 Annual Report75