US Bank 2015 Annual Report Download - page 36

Commercial Commercial loans, including lease financing,
increased $8.0 billion (10.0 percent) at December 31, 2015,
compared with December 31, 2014. Average commercial
loans increased $8.3 billion (11.0 percent) in 2015, compared
with 2014. The growth was primarily driven by higher demand
from new and existing customers. Table 7 provides a
summary of commercial loans by industry and geographical
locations.
Commercial Real Estate The Company’s portfolio of
commercial real estate loans, which includes commercial
mortgages and construction and development loans,
decreased $658 million (1.5 percent) at December 31, 2015,
compared with December 31, 2014, primarily the result of
customers paying down balances in the second half of 2015.
Average commercial real estate loans increased $1.8 billion
(4.5 percent) in 2015, compared with 2014. Table 8 provides a
summary of commercial real estate loans by property type and
geographical location.
The Company reclassifies construction loans to the
commercial mortgage category if permanent financing is
provided by the Company. In 2015, approximately $361
million of construction loans were reclassified to the
commercial mortgage category. At December 31, 2015 and
2014, $155 million of tax-exempt industrial development
loans were secured by real estate. The Company’s
commercial mortgage and construction and development
loans had unfunded commitments of $10.4 billion and
$10.7 billion at December 31, 2015 and 2014, respectively.
The Company also finances the operations of real estate
developers and other entities with operations related to real
estate. These loans are not secured directly by real estate but
are subject to terms and conditions similar to commercial
loans. These loans were included in the commercial loan
category and totaled $5.8 billion and $4.6 billion at
December 31, 2015 and 2014, respectively.
TABLE 6 LOAN PORTFOLIO DISTRIBUTION
2015 2014 2013 2012 2011
At December 31 (Dollars in Millions) Amount
Percent
of Total Amount
Percent
of Total Amount
Percent
of Total Amount
Percent
of Total Amount
Percent
of Total
Commercial
Commercial ........... $ 83,116 31.9% $ 74,996 30.2% $ 64,762 27.5% $ 60,742 27.2% $ 50,734 24.2%
Lease financing ........ 5,286 2.0 5,381 2.2 5,271 2.3 5,481 2.5 5,914 2.8
Total commercial ..... 88,402 33.9 80,377 32.4 70,033 29.8 66,223 29.7 56,648 27.0
Commercial Real Estate
Commercial mortgages . . 31,773 12.2 33,360 13.5 32,183 13.7 31,005 13.9 29,664 14.1
Construction and
development ......... 10,364 3.9 9,435 3.8 7,702 3.3 5,948 2.6 6,187 3.0
Total commercial real
estate ............ 42,137 16.1 42,795 17.3 39,885 17.0 36,953 16.5 35,851 17.1
Residential Mortgages
Residential mortgages . . . 40,425 15.5 38,598 15.6 37,545 15.9 32,648 14.6 28,669 13.7
Home equity loans, first
liens ................ 13,071 5.0 13,021 5.2 13,611 5.8 11,370 5.1 8,413 4.0
Total residential
mortgages ......... 53,496 20.5 51,619 20.8 51,156 21.7 44,018 19.7 37,082 17.7
Credit Card ............. 21,012 8.1 18,515 7.5 18,021 7.7 17,115 7.7 17,360 8.3
Other Retail
Retail leasing .......... 5,232 2.0 5,871 2.4 5,929 2.5 5,419 2.4 5,118 2.4
Home equity and second
mortgages ........... 16,384 6.3 15,916 6.4 15,442 6.6 16,726 7.5 18,131 8.6
Revolving credit ........ 3,354 1.3 3,309 1.3 3,276 1.4 3,332 1.5 3,344 1.6
Installment ............ 7,030 2.7 6,242 2.5 5,709 2.4 5,463 2.4 5,348 2.6
Automobile ............ 16,587 6.3 14,822 6.0 13,743 5.8 12,593 5.6 11,508 5.5
Student ............... 2,619 1.0 3,104 1.3 3,579 1.5 4,179 1.9 4,658 2.2
Total other retail ...... 51,206 19.6 49,264 19.9 47,678 20.2 47,712 21.3 48,107 22.9
Total loans, excluding
covered loans .... 256,253 98.2 242,570 97.9 226,773 96.4 212,021 94.9 195,048 93.0
Covered Loans ......... 4,596 1.8 5,281 2.1 8,462 3.6 11,308 5.1 14,787 7.0
Total loans ....... $260,849 100.0% $247,851 100.0% $235,235 100.0% $223,329 100.0% $209,835 100.0%
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