US Bank 2011 Annual Report Download - page 48

TABLE 18 Summary of Allowance for Credit Losses
(Dollars in Millions) 2011 2010 2009 2008 2007
Balance at beginning of year ................................................................... $5,531 $5,264 $3,639 $2,260 $2,256
Charge-Offs
Commercial
Commercial .............................................................................. 423 784 769 282 154
Lease financing .......................................................................... 93 134 227 113 63
Total commercial ..................................................................... 516 918 996 395 217
Commercial real estate
Commercial mortgages .................................................................. 231 333 103 34 16
Construction and development .......................................................... 312 538 516 139 10
Total commercial real estate .......................................................... 543 871 619 173 26
Residential mortgages ...................................................................... 502 554 493 236 63
Credit card .................................................................................. 922 1,270 1,093 630 389
Other retail
Retail leasing............................................................................. 10 25 47 41 23
Home equity and second mortgages .................................................... 327 348 347 185 82
Other ..................................................................................... 396 490 504 344 232
Total other retail....................................................................... 733 863 898 570 337
Covered loans (a) ........................................................................... 13 20 12 5 —
Total charge-offs ................................................................... 3,229 4,496 4,111 2,009 1,032
Recoveries
Commercial
Commercial .............................................................................. 74 48 30 27 52
Lease financing .......................................................................... 36 43 40 26 28
Total commercial ..................................................................... 110 91 70 53 80
Commercial real estate
Commercial mortgages .................................................................. 22 13 2 1 4
Construction and development .......................................................... 23 13 3 — —
Total commercial real estate .......................................................... 45 26 5 1 4
Residential mortgages ...................................................................... 13 8422
Credit card .................................................................................. 88 70 62 65 69
Other retail
Retail leasing............................................................................. 10 13 11 6 7
Home equity and second mortgages .................................................... 19 17 9 7 8
Other ..................................................................................... 100 88 81 56 70
Total other retail....................................................................... 129 118 101 69 85
Covered loans (a) ........................................................................... 1 2 1 — —
Total recoveries .................................................................... 386 315 243 190 240
Net Charge-Offs
Commercial
Commercial .............................................................................. 349 736 739 255 102
Lease financing .......................................................................... 57 91 187 87 35
Total commercial ..................................................................... 406 827 926 342 137
Commercial real estate
Commercial mortgages .................................................................. 209 320 101 33 12
Construction and development .......................................................... 289 525 513 139 10
Total commercial real estate .......................................................... 498 845 614 172 22
Residential mortgages ...................................................................... 489 546 489 234 61
Credit card .................................................................................. 834 1,200 1,031 565 320
Other retail
Retail leasing............................................................................. — 12 36 35 16
Home equity and second mortgages .................................................... 308 331 338 178 74
Other ..................................................................................... 296 402 423 288 162
Total other retail....................................................................... 604 745 797 501 252
Covered loans (a) ........................................................................... 12 18 11 5 —
Total net charge-offs ............................................................... 2,843 4,181 3,868 1,819 792
Provision for credit losses...................................................................... 2,343 4,356 5,557 3,096 792
Net change for credit losses to be reimbursed by the FDIC .................................... (17) 92 — — —
Acquisitions and other changes ................................................................ — — (64) 102 4
Balance at end of year ......................................................................... $5,014 $5,531 $5,264 $3,639 $2,260
Components
Allowance for loan losses, excluding losses to be reimbursed by the FDIC ................. $4,678 $5,218 $5,079 $3,514 $2,058
Allowance for credit losses to be reimbursed by the FDIC .................................. 75 92 — — —
Liability for unfunded credit commitments .................................................. 261 221 185 125 202
Total allowance for credit losses ......................................................... $5,014 $5,531 $5,264 $3,639 $2,260
Allowance for Credit Losses as a Percentage of
Period-end loans, excluding covered loans ................................................. 2.52% 3.03% 3.04% 2.09% 1.47%
Nonperforming loans, excluding covered loans ............................................. 228 192 153 206 406
Nonperforming assets, excluding covered assets ........................................... 191 162 135 184 328
Net charge-offs, excluding covered loans ................................................... 174 130 136 201 285
Period-end loans ............................................................................ 2.39% 2.81% 2.70% 1.97% 1.47%
Nonperforming loans........................................................................ 163 136 110 170 406
Nonperforming assets ...................................................................... 133 110 89 139 328
Net charge-offs ............................................................................. 176 132 136 200 285
Note: At December 31, 2011 and 2010, $1.8 billion and $2.2 billion, respectively, of the total allowance for credit losses related to incurred losses on credit card and other retail loans.
(a) Relates to covered loan charge-offs and recoveries not reimbursable by the FDIC.
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