US Bank 2014 Annual Report Download - page 47

TABLE 15 DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
At December 31,
90 days or more past due excluding nonperforming loans 2014 2013 2012 2011 2010
Commercial
Commercial ..................................................................... .05% .08% .10% .09% .15%
Lease financing ................................................................. ––– –.02
Total commercial ............................................................. .05 .08 .09 .08 .13
CommercialRealEstate
Commercial mortgages ......................................................... .02 .02 .02 .02 –
Construction and development .................................................. .14 .30 .02 .13 .01
Total commercial real estate ................................................. .05 .07 .02 .04 –
Residential Mortgages(a) .................................................... .40 .65 .64 .98 1.63
Credit Card ................................................................... 1.13 1.17 1.27 1.36 1.86
Other Retail
Retail leasing.................................................................... .02 – .02 .02 .05
Other ............................................................................ .17 .21 .22 .43 .49
Total other retail(b) ............................................................ .15 .18 .20 .38 .45
Total loans, excluding covered loans ....................................... .23 .31 .31 .43 .61
Covered Loans ............................................................... 7.48 5.63 5.86 6.15 6.04
Total loans ................................................................. .38% .51% .59% .84% 1.11%
At December 31,
90 days or more past due including nonperforming loans 2014 2013 2012 2011 2010
Commercial ........................................................................ .19% .27% .27% .63% 1.37%
Commercial real estate ............................................................ .65 .83 1.50 2.55 3.73
Residential mortgages(a) ........................................................... 2.07 2.16 2.14 2.73 3.70
Credit card ......................................................................... 1.30 1.60 2.12 2.65 3.22
Other retail(b) ....................................................................... .53 .58 .66 .52 .58
Total loans, excluding covered loans ....................................... .83 .97 1.11 1.54 2.19
Covered loans ...................................................................... 7.74 7.13 9.28 12.42 12.94
Total loans ................................................................. .97% 1.19% 1.52% 2.30% 3.17%
(a) Delinquent loan ratios exclude $3.1 billion, $3.7 billion, $3.2 billion, $2.6 billion, and $2.6 billion at December 31, 2014, 2013, 2012, 2011 and 2010, respectively, of loans purchased from GNMA
mortgage pools whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Including these loans, the ratio of
residential mortgages 90 days or more past due including all nonperforming loans was 8.02 percent, 9.34 percent, 9.45 percent, 9.84 percent, and 12.28 percent at December 31, 2014, 2013,
2012, 2011, and 2010, respectively.
(b) Delinquent loan ratios exclude student loans that are guaranteed by the federal government. Including these loans, the ratio of total other retail loans 90 days or more past due including all
nonperforming loans was .84 percent, .93 percent, 1.08 percent, .99 percent, and 1.04 percent at December 31, 2014, 2013, 2012, 2011, and 2010, respectively.
Credit card and other retail loans principally reflect the
Company’s focus on consumers within its geographical
footprint of branches and certain niche lending activities that
are nationally focused. Approximately 67.7 percent of the
Company’s credit card balances at December 31, 2014 relate
to cards originated through the Company’s branches or co-
branded, travel and affinity programs that generally
experience better credit quality performance than portfolios
generated through other channels.
Tables 9, 10 and 11 provide a geographical summary of
the residential mortgage, credit card and other retail loan
portfolios, respectively.
Covered assets were acquired by the Company in FDIC-
assisted transactions and include loans with characteristics
indicative of a high credit risk profile, including a substantial
concentration in California and loans with negative-
amortization payment options. Because most of these loans
are covered under loss sharing agreements with the FDIC,
the Company’s financial exposure to losses from these
assets is substantially reduced. To the extent actual losses
exceed the Company’s estimates at acquisition, the
Company’s financial risk would only be its share of those
losses under the loss sharing agreements. Effective
December 31, 2014, the loss share coverage provided by the
FDIC expired on all previously covered assets, except for
residential mortgages and home equity and second
mortgage loans that remain covered under loss sharing
agreements with remaining terms of up to five years.
Loan Delinquencies Trends in delinquency ratios are an
indicator, among other considerations, of credit risk within
U.S. BANCORP The power of potential
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