SUMMARY OF LOAN LOSS EXPERIENCE
## Table 0 ##
(a) Amounts for 2005 reflect the impact of a $53 million loan recovery in that year.
Excluding this recovery, net charge-offs would have been .18% of average loans and the allowance as a multiple of net charge-offs would have been 7.18x.
The following table presents the assignment of the allowance for loan and lease losses and the categories of loans as a percentage of total loans.
Changes in the allocation over time reflect the changes in loan portfolio composition, risk profile and refinements to reserve methodologies.
For purposes of this presentation, a portion of the allowance for loan and lease losses has been assigned to loan categories based on the relative specific and pool allocation amounts to provide coverage for probable losses not covered in specific, pool and consumer reserve methodologies related to qualitative and measurement factors.
At December 31, 2007, the portion of the reserves for these factors was $38 million.
## Table 1 ##
FUNDING AND CAPITAL SOURCES Details Of Funding Sources
## Table 2 ##
Total funding sources increased $32.3 billion at December 31, 2007 compared with the balance at December 31, 2006, as total deposits increased $16.4 billion and total borrowed funds increased $15.9 billion.
Our acquisition of Mercantile added $12.5 billion of deposits and $2.1 billion of borrowed funds.
The Yardville acquisition resulted in $2.0 billion of deposits.
During the first quarter of 2007 we issued borrowings to fund the $2.1 billion cash portion of the Mercantile acquisition.
The remaining increase in borrowed funds was the result of growth in loans and securities and the need to fund other net changes in our balance sheet.
During the second half of 2007 we substantially increased Federal Home Loan Bank borrowings, which provided us with additional liquidity at relatively attractive rates.
The Liquidity Risk Management section of this Item 7 contains further details regarding actions we have taken which impacted our borrowed funds balances during 2007 and early 2008.
Capital We manage our capital position by making adjustments to our balance sheet size and composition, issuing debt, equity or hybrid instruments, executing treasury stock transactions, managing dividend policies and retaining earnings.
Total shareholders’ equity increased $4.1 billion, to $14.9 billion, at December 31, 2007 compared with December 31, 2006.
In addition to the net impact of earnings and dividends in 2007, this increase reflected a $2.5 billion reduction in treasury stock and a $1.0 billion increase in capital surplus, largely due to the issuance of PNC common shares for the Mercantile and Yardville acquisitions.
Common shares outstanding were 341 million at December 31, 2007 and 293 million at December 31, 2006.
The increase in shares during 2007 reflected the issuance of approximately 53 million shares in connection with the Mercantile acquisition and approximately 3 million shares in connection with the Yardville acquisition.
In October 2007, our Board of Directors terminated the prior program and approved a new stock repurchase program to purchase up to 25 million shares of PNC common stock on the open market or in privately negotiated transactions.
This new program will remain in effect until fully utilized or until modified, superseded or terminated.
During 2007, we purchased 11 million common shares under our new and prior common stock repurchase programs at a total cost of approximately $800 million.
The extent and timing of additional share repurchases under the new program will depend on a number of factors including, among others, market and general economic conditions, economic and regulatory capital considerations, alternative uses of capital, regulatory limitations resulting from merger activity, and the potential impact on our credit rating.
We do not expect to actively engage in share repurchase activity for the foreseeable future.
substantially complete.
The following table summarizes the liabilities related to these integration plans (in millions):
## Table 3 ##
We have also recognized other employee termination benefits related to LDR, other acquisitions and our operational excellence initiatives.
Dedicated project personnel expenses include the salary, benefits, travel expenses and other costs directly associated with employees who are 100 percent dedicated to our integration of acquired businesses, employees who have been notified of termination, but are continuing to work on transferring their responsibilities and employees working on our quality enhancement and remediation efforts and operational excellence initiatives.
Relocated facilities expenses are the moving costs, lease expenses and other facility costs incurred during the relocation period in connection with relocating certain facilities.
Certain litigation matters relate to net expenses recognized during the year for the estimated or actual settlement of certain pending litigation and similar claims, including matters where we recognized income from a settlement on more favorable terms than our previous estimate, or we reduced our estimate of a previously recorded contingent liability.
These litigation matters have included royalty disputes, patent litigation matters, product liability litigation matters and commercial litigation matters.
Contract termination costs relate to terminated agreements in connection with the integration of acquired companies and changes to our distribution model as part of business restructuring and operational excellence initiatives.
The terminated contracts primarily relate to sales agents and distribution agreements.
Information technology integration costs are noncapitalizable costs incurred related to integrating information technology platforms of acquired companies or other significant software implementations as part of our quality and operational excellence initiatives.
As part of the Biomet merger, we recognized $209.0 million of intangible assets for in-process research and development (“IPR&D”) projects.
During 2017 and 2016, we recorded impairment losses of $18.8 million and $30.0 million, respectively, related to these IPR&D intangible assets.
The impairments were primarily due to the termination of certain IPR&D projects.
We also recognized $479.0 million of intangible assets for trademarks that we designated as having an indefinite life.
During 2017, we reclassified one of these trademarks to a finite life asset which resulted in an impairment of $8.0 million.
Loss/impairment on disposal of assets relates to assets that we have sold or intend to sell, or for which the economic useful life of the asset has been significantly reduced due to integration or our quality and operational excellence initiatives.
Contingent consideration adjustments represent the changes in the fair value of contingent consideration obligations to be paid to the prior owners of acquired businesses.
Certain R&D agreements relate to agreements with upfront payments to obtain intellectual property to be used in R&D projects that have no alternative future use in other projects.
Cash and Cash Equivalents – We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents.
The carrying amounts reported in the balance sheet for cash and cash equivalents are valued at cost, which approximates their fair value.
Accounts Receivable – Accounts receivable consists of trade and other miscellaneous receivables.
We grant credit to customers in the normal course of business and maintain an allowance for doubtful accounts for potential credit losses.
We determine the allowance for doubtful accounts by geographic market and take into consideration historical credit experience, creditworthiness of the customer and other pertinent information.
We make concerted efforts to collect all accounts receivable, but sometimes we have to write-off the account against the allowance when we determine the account is uncollectible.
The allowance for doubtful accounts was $60.2 million and $51.6 million as of December 31, 2017 and 2016, respectively.
Inventories – Inventories are stated at the lower of cost or market, with cost determined on a first-in first-out basis.
Property, Plant and Equipment – Property, plant and equipment is carried at cost less accumulated depreciation.
Depreciation is computed using the straight-line method based on estimated useful lives of ten to forty years for buildings and improvements and three to eight years for machinery and equipment.
Maintenance and repairs are expensed as incurred.
We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.
An impairment loss would be recognized when estimated future undiscounted cash flows relating to the asset are less than its carrying amount.
An impairment loss is measured as the amount by which the carrying amount of an asset exceeds its fair value.
Software Costs – We capitalize certain computer software and software development costs incurred in connection with developing or obtaining computer software for internal use when both the preliminary project stage is completed and it is probable that the software will be used as intended.
Capitalized software costs generally include external direct costs of materials and services utilized in developing or obtaining computer software and compensation and related

<table><tr><td>Year ended December 31 - dollars in millions</td><td>2007</td><td>2006</td><td>2005</td><td>2004</td><td>2003</td></tr><tr><td>Allowance for loan and lease losses at beginning of year</td><td>$560</td><td>$596</td><td>$607</td><td>$632</td><td>$673</td></tr><tr><td>Charge-offs</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial</td><td>-156</td><td>-108</td><td>-52</td><td>-113</td><td>-168</td></tr><tr><td>Commercial real estate</td><td>-16</td><td>-3</td><td>-1</td><td>-2</td><td>-3</td></tr><tr><td>Consumer</td><td>-73</td><td>-52</td><td>-45</td><td>-43</td><td>-39</td></tr><tr><td>Residential mortgage</td><td></td><td>-3</td><td>-2</td><td>-3</td><td>-4</td></tr><tr><td>Lease financing</td><td></td><td>-14</td><td>-29</td><td>-5</td><td>-46</td></tr><tr><td>Total charge-offs</td><td>-245</td><td>-180</td><td>-129</td><td>-166</td><td>-260</td></tr><tr><td>Recoveries</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Commercial (a)</td><td>30</td><td>19</td><td>82</td><td>31</td><td>32</td></tr><tr><td>Commercial real estate</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td></tr><tr><td>Consumer</td><td>14</td><td>15</td><td>15</td><td>12</td><td>12</td></tr><tr><td>Residential mortgage</td><td></td><td></td><td></td><td>1</td><td>1</td></tr><tr><td>Lease financing</td><td></td><td>5</td><td>1</td><td>6</td><td>3</td></tr><tr><td>Total recoveries</td><td>45</td><td>40</td><td>99</td><td>51</td><td>49</td></tr><tr><td>Net charge-offs<sup>(a)</sup></td><td>-200</td><td>-140</td><td>-30</td><td>-115</td><td>-211</td></tr><tr><td>Provision for credit losses</td><td>315</td><td>124</td><td>21</td><td>52</td><td>177</td></tr><tr><td>Acquisitions</td><td>152</td><td></td><td>23</td><td>22</td><td></td></tr><tr><td>Net change in allowance for unfunded loan commitments and letters of credit</td><td>3</td><td>-20</td><td>-25</td><td>16</td><td>-7</td></tr><tr><td>Allowance for loan and lease losses at end of year</td><td>$830</td><td>$560</td><td>$596</td><td>$607</td><td>$632</td></tr><tr><td>Allowance as a percent of period-end</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Loans</td><td>1.21%</td><td>1.12%</td><td>1.21%</td><td>1.40%</td><td>1.74%</td></tr><tr><td>Nonperforming loans</td><td>190</td><td>381</td><td>314</td><td>424</td><td>238</td></tr><tr><td>As a percent of average loans</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Net charge-offs (a)</td><td>.32</td><td>.28</td><td>.06</td><td>.28</td><td>.59</td></tr><tr><td>Provision for credit losses</td><td>.50</td><td>.25</td><td>.04</td><td>.13</td><td>.49</td></tr><tr><td>Allowance for loan and lease losses</td><td>1.33</td><td>1.13</td><td>1.26</td><td>1.48</td><td>1.76</td></tr><tr><td>Allowance as a multiple of net charge-offs (a)</td><td>4.15x</td><td>4.00x</td><td>19.87x</td><td>5.28x</td><td>3.00x</td></tr></table>
<table><tr><td></td><td colspan="2">2007</td><td colspan="2">2006</td><td colspan="2">2005</td><td colspan="2">2004</td><td colspan="2">2003</td></tr><tr><td>December 31Dollars in millions</td><td>Allowance</td><td>Loans to Total Loans</td><td>Allowance</td><td>Loans to Total Loans</td><td>Allowance</td><td>Loans to Total Loans</td><td>Allowance</td><td>Loans to Total Loans</td><td>Allowance</td><td>Loans toTotal Loans</td></tr><tr><td>Commercial</td><td>$560</td><td>41.8%</td><td>$443</td><td>40.9%</td><td>$489</td><td>39.2%</td><td>$503</td><td>40.1%</td><td>$514</td><td>41.5%</td></tr><tr><td>Commercial real estate</td><td>153</td><td>13.0</td><td>30</td><td>7.0</td><td>32</td><td>6.4</td><td>26</td><td>4.5</td><td>34</td><td>5.1</td></tr><tr><td>Consumer</td><td>68</td><td>26.9</td><td>28</td><td>33.1</td><td>24</td><td>33.1</td><td>35</td><td>35.9</td><td>28</td><td>32.6</td></tr><tr><td>Residential mortgage</td><td>9</td><td>14.0</td><td>7</td><td>12.7</td><td>7</td><td>14.9</td><td>6</td><td>11.0</td><td>7</td><td>8.0</td></tr><tr><td>Lease financing</td><td>36</td><td>3.7</td><td>48</td><td>5.6</td><td>41</td><td>5.7</td><td>33</td><td>7.3</td><td>44</td><td>11.4</td></tr><tr><td>Other</td><td>4</td><td>.6</td><td>4</td><td>.7</td><td>3</td><td>.7</td><td>4</td><td>1.2</td><td>5</td><td>1.4</td></tr><tr><td>Total</td><td>$830</td><td>100.0%</td><td>$560</td><td>100.0%</td><td>$596</td><td>100.0%</td><td>$607</td><td>100.0%</td><td>$632</td><td>100.0%</td></tr></table>
<table><tr><td>December 31 - in millions</td><td> 2007</td><td>2006</td></tr><tr><td>Deposits</td><td></td><td></td></tr><tr><td>Money market</td><td> $32,785</td><td>$28,580</td></tr><tr><td>Demand</td><td> 20,861</td><td>16,833</td></tr><tr><td>Retail certificates of deposit</td><td> 16,939</td><td>14,725</td></tr><tr><td>Savings</td><td> 2,648</td><td>1,864</td></tr><tr><td>Other time</td><td> 2,088</td><td>1,326</td></tr><tr><td>Time deposits in foreign offices</td><td> 7,375</td><td>2,973</td></tr><tr><td>Total deposits</td><td> 82,696</td><td>66,301</td></tr><tr><td>Borrowed funds</td><td></td><td></td></tr><tr><td>Federal funds purchased</td><td> 7,037</td><td>2,711</td></tr><tr><td>Repurchase agreements</td><td> 2,737</td><td>2,051</td></tr><tr><td>Federal Home Loan Bank borrowing</td><td> 7,065</td><td>42</td></tr><tr><td>Bank notes and senior debt</td><td> 6,821</td><td>3,633</td></tr><tr><td>Subordinated debt</td><td> 4,506</td><td>3,962</td></tr><tr><td>Other</td><td> 2,765</td><td>2,629</td></tr><tr><td>Total borrowed funds</td><td> 30,931</td><td>15,028</td></tr><tr><td>Total</td><td> $113,627</td><td>$81,329</td></tr></table>
<table><tr><td></td><td>Employee Termination Benefits</td><td>Contract Terminations</td><td>Total</td></tr><tr><td>Balance, December 31, 2016</td><td>$38.1</td><td>$35.1</td><td>$73.2</td></tr><tr><td>Additions</td><td>12.1</td><td>5.2</td><td>17.3</td></tr><tr><td>Cash payments</td><td>-36.7</td><td>-10.4</td><td>-47.1</td></tr><tr><td>Foreign currency exchange rate changes</td><td>1.3</td><td>0.4</td><td>1.7</td></tr><tr><td>Balance, December 31, 2017</td><td>$14.8</td><td>$30.3</td><td>$45.1</td></tr></table>

Question: What is the growing rate of Residential mortgage in the years with the least consumer? (in %)
Answer: 0.16667