US Bank 2005 Annual Report Download - page 75

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LOANS AND ALLOWANCE FOR CREDIT LOSSES
The composition of the loan portfolio at December 31 was as follows:
(Dollars in millions) 2005 2004
Commercial
Commercial ********************************************************************************************* $ 37,844 $ 35,210
Lease financing****************************************************************************************** 5,098 4,963
Total commercial ************************************************************************************* 42,942 40,173
Commercial real estate
Commercial mortgages *********************************************************************************** 20,272 20,315
Construction and development **************************************************************************** 8,191 7,270
Total commercial real estate**************************************************************************** 28,463 27,585
Residential mortgages ********************************************************************************** 20,730 15,367
Retail
Credit card********************************************************************************************** 7,137 6,603
Retail leasing ******************************************************************************************** 7,338 7,166
Home equity and second mortgages *********************************************************************** 14,979 14,851
Other retail
Revolving credit ************************************************************************************** 2,504 2,541
Installment******************************************************************************************* 3,582 2,767
Automobile ****************************************************************************************** 8,112 7,419
Student ********************************************************************************************* 2,019 1,843
Total other retail *********************************************************************************** 16,217 14,570
Total retail ******************************************************************************************* 45,671 43,190
Total loans**************************************************************************************** $137,806 $126,315
Loans are presented net of unearned interest and For detail of the Company’s commercial real estate
deferred fees and costs, which amounted to $1.3 billion and portfolio by property type and geography as of
$1.4 billion at December 31, 2005 and 2004, respectively. December 31, 2005 and 2004, see Table 8 included in
The Company had loans of $44.1 billion at December 31, Management’s Discussion and Analysis which is
2005, and $38.3 billion at December 31, 2004, pledged at incorporated by reference into these Notes to Consolidated
the Federal Home Loan Bank. Loans of $18.1 billion at Financial Statements. Such loans are collateralized by the
December 31, 2005, and $10.3 billion at December 31, related property.
2004, were pledged at the Federal Reserve Bank. Nonperforming assets include nonaccrual loans,
The Company primarily lends to borrowers in the restructured loans not performing in accordance with
24 states in which it has banking offices. Collateral for modified terms, other real estate and other nonperforming
commercial loans may include marketable securities, assets owned by the Company. For details of the
accounts receivable, inventory and equipment. For details of Company’s nonperforming assets as of December 31, 2005
the Company’s commercial portfolio by industry group and and 2004, see Table 14 included in Management’s
geography as of December 31, 2005 and 2004, see Table 7 Discussion and Analysis which is incorporated by reference
included in Management’s Discussion and Analysis which is into these Notes to Consolidated Financial Statements.
incorporated by reference into these Notes to Consolidated
Financial Statements.
The following table lists information related to nonperforming loans as of December 31:
(Dollars in Millions) 2005 2004
Loans on nonaccrual status ***************************************************************************************** $469 $582
Restructured loans ************************************************************************************************* 75 58
Total nonperforming loans ******************************************************************************************* $544 $640
Interest income that would have been recognized at original contractual terms ********************************************* $48 $64
Amount recognized as interest income ******************************************************************************** 18 22
Forgone revenue *************************************************************************************************** $30 $42
U.S. BANCORP 73
Note 7