US Bank 2001 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2001 US Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 100

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100

Net Interest Income Ì Changes Due to Rate and Volume
2001 v 2000 2000 v 1999
(Dollars in Millions) Volume Yield/Rate Total Volume Yield/Rate Total
Increase (decrease) in
Interest income
Commercial loansÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ .9 ( $ 615.6) ($ 614.7) $ 511.1 $457.8 $ 968.9
Commercial real estateÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.6 (297.9) (294.3) 249.2 116.0 365.2
Residential mortgages ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (204.6) (5.1) (209.7) (233.3) 3.0 (230.3)
Retail loans ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 254.4 (247.1) 7.3 202.0 130.0 332.0
Total loansÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 54.3 (1,165.7) (1,111.4) 729.0 706.8 1,435.8
Loans held for sale ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 47.7 (2.9) 44.8 (10.5) 8.7 (1.8)
Investment securitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 314.1 (190.5) 123.6 (128.2) 71.9 (56.3)
Money market investments ÏÏÏÏÏÏÏÏÏÏÏ (12.7) (14.6) (27.3) (6.3) 15.3 9.0
Trading securitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (.6) 2.3 1.7 11.3 (1.5) 9.8
Other earning assetsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (22.1) (27.7) (49.8) 18.7 19.7 38.4
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 380.7 (1,399.1) (1,018.4) 614.0 820.9 1,434.9
Interest expense
Interest checking ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 19.2 (86.0) (66.8) 2.5 36.9 39.4
Money market accounts ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 94.7 (383.7) (289.0) 9.0 148.8 157.8
Savings accounts ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (6.7) (24.8) (31.5) (17.5) (20.4) (37.9)
Time certiÑcates of deposit less than
$100,000ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (142.9) (74.0) (216.9) (21.9) 157.6 135.7
Time deposits greater than $100,000 ÏÏ 9.2 (195.7) (186.5) 225.6 128.2 353.8
Total interest-bearing depositsÏÏÏÏÏ (26.5) (764.2) (790.7) 197.7 451.1 648.8
Short-term borrowings ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 24.5 (272.1) (247.6) 43.7 155.6 199.3
Long-term debt ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 148.1 (495.8) (347.7) 120.3 263.2 383.5
Company obligated mandatorily
redeemable preferred securities ÏÏÏ 44.4 (6.5) 37.9 Ì 1.0 1.0
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 190.5 (1,538.6) (1,348.1) 361.7 870.9 1,232.6
Increase (decrease) in net interest
income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 190.2 $ 139.5 $ 329.7 $ 252.3 ($50.0) $ 202.3
This table shows the components of the change in net interest income by volume and rate on a taxable-equivalent basis. The eÅect of changes in rates on volume changes is allocated
based on the percentage relationship of changes in volume and changes in rate. This table does not take into account the level of noninterest-bearing funding, nor does it fully reÖect
changes in the mix of assets and liabilities.
to the restructuring of a co-branding credit card higher levels of nonperforming loans and volatility in net
relationship. Refer to Note 4 of the Notes to Consolidated charge-oÅs during the next several quarters.
Financial Statements for further information on merger and Refer to ""Corporate Risk ProÑle'' on pages 29 through
restructuring-related items. 36, for further information on the factors considered by the
The provision for credit losses in 2001, excluding Company in assessing the credit quality of the loan
merger and restructuring-related items, was portfolio and establishing the allowance for credit losses.
$2,146.6 million, an increase of $1,318.6 million over 2000. Noninterest Income Noninterest income in 2001 was
The increase was primarily due to a $160.0 million charge $5.4 billion, compared with $4.9 billion in 2000 and
during the Ñrst quarter of 2001 in connection with an $4.2 billion in 1999. The increase of $476.2 million
accelerated loan workout strategy and a $1,025.0 million (9.8 percent) in 2001 compared with 2000 included
incremental provision recognized in the third quarter of $62.2 million of merger and restructuring-related gains in
2001. The third quarter incremental provision for credit connection with the required sale of 14 branches associated
losses was taken after extensive reviews of the Company's with the merger of Firstar and USBM. Refer to Note 4 of
commercial portfolio in light of declining economic the Notes to Consolidated Financial Statements for further
conditions and company-speciÑc trends. This action information on merger and restructuring-related items.
recognized an increasing probability that the economic Excluding merger and restructuring-related gains,
slowdown already occurring had accelerated and may be noninterest income was $5.3 billion in 2001, an increase of
more prolonged than previously anticipated. Given the $414.0 million (8.5 percent) from 2000. Credit card fee
continuing economic stress in various industry sectors, revenue increased $12.5 million (1.6 percent) in 2001
increasing unemployment and trends in consumer compared to revenue growth of $113.6 million
delinquencies and charge-oÅs, the Company may experience
U.S. Bancorp
Table 4
20