US Bank 2009 Annual Report Download - page 84

Download and view the complete annual report

Please find page 84 of the 2009 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 143

  • 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
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143

Note 5 Investment Securities
The amortized cost, other-than-temporary impairment recorded in other comprehensive income, gross unrealized holding gains
and losses, and fair value of held-to-maturity and available-for-sale securities at December 31 were as follows:
(Dollars in Millions)
Amortized
Cost
Unrealized
Gains
Other-than-
Temporary Other
Fair
Value
Amortized
Cost
Unrealized
Gains
Unrealized
Losses
Fair
Value
Unrealized Losses
2009 2008
Held-to-maturity (a)
Agency residential mortgage-backed
securities . . . ............... $ 4 $ – $ – $ – $ 4 $ 5 $ – $ – $ 5
Obligations of state and political
subdivisions . ............... 32 2 – (1) 33 38 2 (1) 39
Other debt securities ............ 11 – – – 11 10 – – 10
Total held-to-maturity . ........ $ 47 $ 2 $ – $ (1) $ 48 $ 53 $ 2 $ (1) $ 54
Available-for-sale (b)
U.S. Treasury and agencies ........ $ 3,415 $ 10 $ – $ (21) $ 3,404 $ 664 $ 18 $ – $ 682
Mortgage-backed securities
Residential
Agency. . . ............... 29,288 501 – (47) 29,742 26,512 426 (410) 26,528
Non-agency
Prime(c)............... 1,624 8 (110) (93) 1,429 3,160 – (729) 2,431
Non-prime .............. 1,359 11 (297) (105) 968 1,574 3 (423) 1,154
Commercial . ............... 14 – (1) – 13 17 – – 17
Asset-backed securities
Collateralized debt obligations/
Collateralized loan obligations . . . 199 11 (5) – 205 101 1 (11) 91
Other..................... 360 12 (5) (10) 357 533 7 (14) 526
Obligations of state and political
subdivisions . ............... 6,822 30 – (159) 6,693 7,220 4 (808) 6,416
Obligations of foreign governments . . . 6 – – – 6 7 – – 7
Corporate debt securities . ........ 1,179 – – (301) 878 1,238 – (482) 756
Perpetual preferred securities ....... 483 30 – (90) 423 777 1 (387) 391
Other investments (d) ............ 607 9 – (13) 603 480 – (11) 469
Total available-for-sale ...... $45,356 $622 $(418) $(839) $44,721 $42,283 $460 $(3,275) $39,468
(a) Held-to-maturity securities are carried at historical cost adjusted for amortization of premiums and accretion of discounts.
(b) Available-for-sale securities are carried at fair value with unrealized net gains or losses reported within accumulated other comprehensive income (loss) in shareholders’ equity.
(c) Prime securities are those designated as such by the issuer or those with underlying asset characteristics and/or credit enhancements consistent with securities designated as prime.
(d) Includes $241 million of securities covered under loss sharing agreements with the FDIC.
The weighted-average maturity of the available-for-sale
investment securities was 7.1 years at December 31, 2009,
compared with 7.7 years at December 31, 2008. The
corresponding weighted-average yields were 4.00 percent
and 4.56 percent, respectively. The weighted-average
maturity of the held-to-maturity investment securities was
8.4 years at December 31, 2009, and 8.5 years at
December 31, 2008. The corresponding weighted-average
yields were 5.10 percent and 5.78 percent, respectively.
For amortized cost, fair value and yield by maturity
date of held-to-maturity and available-for-sale securities
outstanding at December 31, 2009, refer to Table 11
included in Management’s Discussion and Analysis which is
incorporated by reference into these Notes to Consolidated
Financial Statements.
Securities carried at $37.4 billion at December 31,
2009, and $33.4 billion at December 31, 2008, were
pledged to secure public, private and trust deposits,
repurchase agreements and for other purposes required by
law. Included in these amounts were securities sold under
agreements to repurchase where the buyer/lender has the
right to sell or pledge the securities and which were
collateralized by securities with a carrying amount of
$8.9 billion at December 31, 2009, and $9.5 billion at
December 31, 2008.
82 U.S. BANCORP