US Bank 2015 Annual Report Download - page 104

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Additional detail of the allowance for credit losses by portfolio class was as follows:
(Dollars in Millions) Commercial
Commercial
Real Estate
Residential
Mortgages
Credit
Card
Other
Retail
Total Loans,
Excluding
Covered Loans
Covered
Loans
Total
Loans
Allowance Balance at December 31, 2015
Related to
Loans individually evaluated for impairment(a) ......... $ 11 $ 2 $ – $ – $ – $ 13 $ – $ 13
TDRs collectively evaluated for impairment ........... 10 7 236 57 33 343 2 345
Other loans collectively evaluated for impairment ...... 1,266 703 395 826 710 3,900 – 3,900
Loans acquired with deteriorated credit quality ........ – 12 – – – 12 36 48
Total allowance for credit losses ................. $1,287 $724 $631 $883 $743 $4,268 $38 $4,306
Allowance Balance at December 31, 2014
Related to
Loans individually evaluated for impairment(a) ......... $ 5 $ 4 $ – $ – $ – $ 9 $ – $ 9
TDRs collectively evaluated for impairment ........... 12 12 319 61 41 445 4 449
Other loans collectively evaluated for impairment ...... 1,129 678 468 819 730 3,824 1 3,825
Loans acquired with deteriorated credit quality ........ – 32 – – – 32 60 92
Total allowance for credit losses ................. $1,146 $726 $787 $880 $771 $4,310 $65 $4,375
(a) Represents the allowance for credit losses related to loans greater than $5 million classified as nonperforming or TDRs.
Additional detail of loan balances by portfolio class was as follows:
(Dollars in Millions) Commercial
Commercial
Real Estate
Residential
Mortgages
Credit
Card
Other
Retail
Total Loans,
Excluding
Covered Loans
Covered
Loans(b)
Total
Loans
December 31, 2015
Loans individually evaluated for impairment(a) ........ $ 336 $ 41 $ 13 $ – $ – $ 390 $ – $ 390
TDRs collectively evaluated for impairment ......... 138 235 4,241 210 211 5,035 35 5,070
Other loans collectively evaluated for impairment .... 87,927 41,566 49,241 20,802 50,995 250,531 2,059 252,590
Loans acquired with deteriorated credit quality ...... 1 295 1 – – 297 2,502 2,799
Total loans ................................. $88,402 $42,137 $53,496 $21,012 $51,206 $256,253 $4,596 $260,849
December 31, 2014
Loans individually evaluated for impairment(a) ........ $ 159 $ 128 $ 12 $ – $ – $ 299 $ – $ 299
TDRs collectively evaluated for impairment ......... 124 393 4,653 240 237 5,647 34 5,681
Other loans collectively evaluated for impairment .... 80,093 41,744 46,953 18,275 49,027 236,092 2,463 238,555
Loans acquired with deteriorated credit quality ...... 1 530 1 – – 532 2,784 3,316
Total loans ................................. $80,377 $42,795 $51,619 $18,515 $49,264 $242,570 $5,281 $247,851
(a) Represents loans greater than $5 million classified as nonperforming or TDRs.
(b) Includes expected reimbursements from the FDIC under loss sharing agreements.
Credit Quality The quality of the Company’s loan portfolios is
assessed as a function of net credit losses, levels of
nonperforming assets and delinquencies, and credit quality
ratings as defined by the Company. These credit quality
ratings are an important part of the Company’s overall credit
risk management and evaluation of its allowance for credit
losses.
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