US Bank 2011 Annual Report Download - page 44

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The following table provides a summary of TDRs by loan class, including the delinquency status for TDRs that continue to
accrue interest and TDRs included in nonperforming assets:
As a Percent of Performing TDRs
At December 31, 2011
(Dollars in Millions)
Performing
TDRs
30-89 Days
Past Due
90 Days or more
Past Due
Nonperforming
TDRs
Total
TDRs
Commercial ................................................ $ 345 4.1% 1.3% $ 110(a) $ 455
Commercial real estate..................................... 537 1.0 — 341(b) 878
Residential mortgages ..................................... 2,002 6.3 5.7 169 2,171(d)
Credit card ................................................. 360 11.3 9.7 224(c) 584
Other retail ................................................. 121 9.4 7.2 27(c) 148(e)
TDRs, excluding GNMA and covered loans ............. 3,365 5.9 4.8 871 4,236
Loans purchased from GNMA mortgage pools ............ 1,265 12.1 27.5 — 1,265(f)
Covered loans .............................................. 244 2.2 4.1 254 498
Total ..................................................... $4,874 7.3% 10.7% $1,125 $5,999
(a) Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months) and small
business credit cards with a modified rate equal to 0 percent.
(b) Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months).
(c) Primarily represents loans with a modified rate equal to 0 percent.
(d) Includes $75 million of residential mortgage loans in trial period arrangements at December 31, 2011.
(e) Includes $3 million of home equity and second mortgage loans in trial period arrangements at December 31, 2011.
(f) Includes $207 million of Federal Housing Association and Department of Veterans Affairs residential mortgage loans in trial period arrangements at December 31, 2011.
Nonperforming Assets The level of nonperforming assets
represents another indicator of the potential for future credit
losses. Nonperforming assets include nonaccrual loans,
restructured loans not performing in accordance with
modified terms or those that have not met the performance
period required to return to accrual status, other real estate
and other nonperforming assets owned by the Company.
Nonperforming assets are generally either originated by the
Company or acquired under FDIC loss sharing agreements
that substantially reduce the risk of credit losses to the
Company. Interest payments collected from assets on
nonaccrual status are typically applied against the principal
balance and not recorded as income.
At December 31, 2011, total nonperforming assets were
$3.8 billion, compared with $5.0 billion at December 31,
2010 and $5.9 billion at December 31, 2009. Excluding
covered assets, nonperforming assets were $2.6 billion at
December 31, 2011, compared with $3.4 billion at
December 31, 2010 and $3.9 billion at December 31, 2009.
The $777 million (23.2 percent) decrease in nonperforming
assets, excluding covered assets, from December 31, 2010 to
December 31, 2011, was primarily driven by reductions in
construction and development nonperforming loans and by
improvement in the other commercial and commercial
mortgage portfolios. These decreases were partially offset by
higher nonperforming residential mortgages as stress
continued in the residential mortgage portfolios due to the
decline in home values. Nonperforming covered assets at
December 31, 2011 were $1.2 billion, compared with
$1.7 billion at December 31, 2010 and $2.0 billion at
December 31, 2009. These assets are covered by loss sharing
agreements with the FDIC that substantially reduce the risk of
credit losses to the Company. In addition, the majority of the
nonperforming covered assets were considered credit-impaired
at acquisition and recorded at their estimated fair value at
acquisition. The ratio of total nonperforming assets to total
loans and other real estate was 1.79 percent (1.32 percent
excluding covered assets) at December 31, 2011, compared
with 2.55 percent (1.87 percent excluding covered assets) at
December 31, 2010 and 3.02 percent (2.25 percent excluding
covered assets) at December 31, 2009.
Other real estate, excluding covered assets, was
$404 million at December 31, 2011, compared with
$511 million at December 31, 2010 and $437 million at
December 31, 2009, and was related to foreclosed properties
that previously secured loan balances.
42 U.S. BANCORP