Not D Allowance for Loan Losses Not E Premises and Equipment The following is a summary of changes in the allowance for loan losses: The $880.0 million increase in allowance for loan losses for the year ended December 31, 2002, reflects an increase in average reported loans, a rise in net charge- offs, the revised application of Subprime Guidelines (see Note O), and the $133.4 million one-time impact resulting from a change in recoveries estimate. Loans totaling approximately $567.4 million and $284.5 million, representing amounts which were greater than 90 days past due, were included in the Company’s reported loan portfolio as of December 31, 2002 and 2001, respectively. Depreciation and amortization expense was $264.8 million, $236.0 million and $180.3 million, for the years ended December 31, 2002, 2001 and 2000, respectively. 58 Year Ended December 31 2002 2001 2000 Balance at beginning of year $ 840,000 $ 527,000 $ 342,000 Provision for loan losses 2,149,328 1,120,457 812,861 Acquisitions/other (9,644) 14,800 (549) Charge-offs (1,490,841) (1,018,350) (772,402) Principal recoveries 231,157 196,093 145,090 Net charge-offs (1,259,684) (822,257) (627,312) Balance at end of year $ 1,720,000 $ 840,000 $ 527,000 Premises and equipment were as follows: December 31 2002 2001 Land $ 103,954 $ 90,377 Buildings and improvements 437,023 305,312 Furniture and equipment 773,092 680,942 Computer software 298,208 216,361 In process 92,550 144,527 1,704,827 1,437,519 Less: Accumulated depreciation and amortization (934,501) (677,836) Total premises and equipment, net $ 770,326 $ 759,683