US Bank 2002 Annual Report Download - page 32

requirements of commercial customers and credit related connection with conforming loan classifications at the time
actions of the Company. The increase in average earning of system conversions. Prior years were not restated, as it
assets was funded with an increase in net free funds, was impractical to determine the extent of reclassification
including an increase in average noninterest-bearing deposits for all periods presented. Average total loans decreased
of $3.6 billion, and an increase in average interest-bearing $3.7 billion (3.1 percent) in 2002, compared with 2001.
liabilities of $.8 billion, consisting principally of higher core The decline in total average loans in 2002, compared with
savings balances and more favorably priced longer-term 2001, was driven by the decline in commercial and
wholesale funding. commercial real estate loans in 2002 and the impact of
For average balance information, refer to Consolidated transfers of high credit quality commercial loans to the loan
Daily Average Balance Sheet and Related Yields and Rates conduit in 2001. The decline in commercial and commercial
on pages 108 and 109. real estate loans was partially offset by growth in retail
loans and residential mortgages. Average total loans on a
Loans The Company’s total loan portfolio was core basis decreased by $2.7 billion (2.2 percent) relative to
$116.3 billion at December 31, 2002, compared with the prior year.
$114.4 billion at December 31, 2001, an increase of $1.9
billion (1.6 percent). The increase in total loans was driven Commercial Commercial loans, including lease financing,
by strong retail loan and residential mortgage growth, totaled $41.9 billion at December 31, 2002, compared with
partially offset by a decline in commercial loans due in part $46.3 billion at December 31, 2001, a decrease of
to current economic conditions. During 2002, there were $4.4 billion (9.5 percent). The decline was driven by
reclassifications between loan categories that occurred in softness in loan demand, credit-related actions including
Commercial Loan Exposure by Industry Group and Geography
December 31, 2002 December 31, 2001
Industry Group (Dollars in Millions) Loans Percent Loans Percent
Consumer products and services ************************************* $ 7,206 17.2% $ 7,622 16.5%
Financials********************************************************** 5,769 13.7 5,859 12.6
Capital goods ****************************************************** 5,486 13.1 6,497 14.0
Commercial services and supplies ************************************ 3,853 9.2 4,178 9.0
Agriculture ********************************************************* 3,153 7.5 3,433 7.4
Transportation ****************************************************** 2,231 5.3 2,560 5.5
Consumer staples ************************************************** 1,924 4.6 2,060 4.5
Private investors **************************************************** 1,759 4.2 1,864 4.0
Paper and forestry products, mining and basic materials **************** 1,664 4.0 2,053 4.4
Health care ******************************************************** 1,475 3.5 1,567 3.4
Property management and development******************************* 1,266 3.0 1,384 3.0
Technology********************************************************* 797 1.9 1,089 2.4
Energy ************************************************************ 575 1.4 410 .9
Other************************************************************** 4,786 11.4 5,754 12.4
Total *********************************************************** $41,944 100.0% $46,330 100.0%
Geography
California ********************************************************** $ 4,127 9.8% $ 3,969 8.6%
Colorado*********************************************************** 1,796 4.3 2,008 4.3
Illinois ************************************************************* 2,214 5.3 2,339 5.0
Minnesota ********************************************************* 6,605 15.7 6,511 14.1
Missouri *********************************************************** 2,895 6.9 2,104 4.5
Ohio ************************************************************** 2,455 5.9 2,896 6.3
Oregon ************************************************************ 1,604 3.8 2,014 4.3
Washington ******************************************************** 3,129 7.5 3,882 8.4
Wisconsin********************************************************** 3,052 7.3 3,115 6.7
Iowa, Kansas, Nebraska, North Dakota, South Dakota ****************** 4,421 10.5 5,059 10.9
Arkansas, Indiana, Kentucky, Tennessee ****************************** 1,865 4.4 1,897 4.1
Idaho, Montana, Wyoming ******************************************* 996 2.4 1,014 2.2
Arizona, Nevada, Utah ********************************************** 986 2.4 1,057 2.3
Total banking region ********************************************* 36,145 86.2 37,865 81.7
Outside the Company’s banking region******************************** 5,799 13.8 8,465 18.3
Total *********************************************************** $41,944 100.0% $46,330 100.0%
30 U.S. Bancorp
Table 8