US Bank 2003 Annual Report Download - page 45

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Summary of Allowance for Credit Losses
(Dollars in Millions) 2003 2002 2001 2000 1999
Balance at beginning of year **************************** $2,422.0 $2,457.3 $1,786.9 $1,710.3 $1,705.7
Charge-offs
Commercial
Commercial ************************************* 555.6 559.2 779.0 319.8 250.1
Lease financing********************************** 139.3 188.8 144.4 27.9 12.4
Total commercial ***************************** 694.9 748.0 923.4 347.7 262.5
Commercial real estate
Commercial mortgages *************************** 43.9 40.9 49.5 15.8 19.1
Construction and development ******************** 13.0 8.8 12.6 10.3 2.6
Total commercial real estate ******************* 56.9 49.7 62.1 26.1 21.7
Residential mortgages ******************************* 30.3 23.1 15.8 13.7 16.2
Retail
Credit card ************************************** 282.1 304.9 294.1 235.8 220.2
Retail leasing************************************ 57.0 45.2 34.2 14.8 6.2
Home equity and second mortgages *************** 105.0 107.9 112.7 * *
Other retail************************************** 267.9 311.9 329.1 379.5 376.0
Total retail *********************************** 712.0 769.9 770.1 630.1 602.4
Total charge-offs ************************** 1,494.1 1,590.7 1,771.4 1,017.6 902.8
Recoveries
Commercial
Commercial ************************************* 70.0 67.4 60.6 64.0 84.8
Lease financing********************************** 55.3 39.9 30.4 7.2 4.0
Total commercial ***************************** 125.3 107.3 91.0 71.2 88.8
Commercial real estate
Commercial mortgages *************************** 15.8 9.1 9.1 10.8 15.1
Construction and development ******************** 2.0 1.4 .8 2.6 1.0
Total commercial real estate ******************* 17.8 10.5 9.9 13.4 16.1
Residential mortgages ******************************* 3.4 4.0 3.2 1.3 1.4
Retail
Credit card ************************************** 27.3 24.6 23.4 27.5 34.6
Retail leasing************************************ 7.0 6.3 4.5 2.0 1.1
Home equity and second mortgages *************** 12.1 10.6 12.9 * *
Other retail************************************** 49.5 54.4 80.0 76.8 88.2
Total retail *********************************** 95.9 95.9 120.8 106.3 123.9
Total recoveries *************************** 242.4 217.7 224.9 192.2 230.2
Net Charge-offs
Commercial
Commercial ************************************* 485.6 491.8 718.4 255.8 165.3
Lease financing********************************** 84.0 148.9 114.0 20.7 8.4
Total commercial ***************************** 569.6 640.7 832.4 276.5 173.7
Commercial real estate
Commercial mortgages *************************** 28.1 31.8 40.4 5.0 4.0
Construction and development ******************** 11.0 7.4 11.8 7.7 1.6
Total commercial real estate ******************* 39.1 39.2 52.2 12.7 5.6
Residential mortgages ******************************* 26.9 19.1 12.6 12.4 14.8
Retail
Credit card ************************************** 254.8 280.3 270.7 208.3 185.6
Retail leasing************************************ 50.0 38.9 29.7 12.8 5.1
Home equity and second mortgages *************** 92.9 97.3 99.8 * *
Other retail************************************** 218.4 257.5 249.1 302.7 287.8
Total retail *********************************** 616.1 674.0 649.3 523.8 478.5
Total net charge-offs *********************** 1,251.7 1,373.0 1,546.5 825.4 672.6
Provision for credit losses ******************************* 1,254.0 1,349.0 2,528.8 828.0 646.0
Losses from loan sales/transfers (a) ********************** — — (329.3) — —
Acquisitions and other changes ************************** (55.7) (11.3) 17.4 74.0 31.2
Balance at end of year********************************** $2,368.6 $2,422.0 $2,457.3 $1,786.9 $1,710.3
Allowance as a percent of
Period-end loans************************************ 2.00% 2.08% 2.15% 1.46% 1.51%
Nonperforming loans ******************************** 232 196 245 233 329
Nonperforming assets ******************************* 206 176 219 206 291
Net charge-offs (a) ********************************** 189 176 159 216 254
(a) In accordance with guidance provided in the Interagency Guidance on Certain Loans Held for Sale, loans held with the intent to sell are transferred to the Loans Held for Sale category based
on the lower of cost or fair value. At the time of the transfer, the portion of the mark-to-market losses representing probable credit losses determined in accordance with policies and methods
utilized to determine the allowance for credit losses is included in net charge-offs. The remaining portion of the losses was reported separately as a reduction of the allowance for credit losses
under ‘‘Losses from loan sales/transfers.’’ Had the entire amount of the loss been reported as charge-offs, total net charge-offs would have been $1,875.8 million for the year ended 2001.
Additionally, the allowance as a percent of net charge-offs would have been 131 percent for the year ended December 31, 2001.
* Information not available
U.S. Bancorp 43
Table 16