Ameriprise 2011 Annual Report Download - page 140

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Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:
Loans Percentage
December 31, December 31,
2011 2010 2011 2010
(in millions)
East North Central $ 252 $ 242 10% 9%
East South Central 65 66 2 3
Middle Atlantic 223 215 9 8
Mountain 284 301 11 11
New England 141 156 5 6
Pacific 584 541 22 21
South Atlantic 648 625 25 24
West North Central 244 271 9 10
West South Central 183 198 7 8
2,624 2,615 100% 100%
Less: allowance for loan losses 35 38
Total $ 2,589 $ 2,577
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
Loans Percentage
December 31, December 31,
2011 2010 2011 2010
(in millions)
Apartments $ 392 $ 351 15% 13%
Hotel 51 57 2 2
Industrial 480 475 18 18
Mixed Use 42 43 2 2
Office 694 747 26 29
Retail 845 843 32 32
Other 120 99 5 4
2,624 2,615 100% 100%
Less: allowance for loan losses 35 38
Total $ 2,589 $ 2,577
Syndicated Loans
The Company’s syndicated loan portfolio is diversified across industries and issuers. The primary credit indicator for
syndicated loans is whether the loans are performing in accordance with the contractual terms of the syndication. Total
nonperforming syndicated loans at both December 31, 2011 and 2010 were $3 million.
Consumer Bank Loans
The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as LTV and
geographic concentration in determining the allowance for loan losses for residential mortgage loans, credit cards and
other consumer bank loans. At a minimum, management updates FICO scores and LTV ratios semiannually.
As of both December 31, 2011 and 2010, approximately 7% of residential mortgage loans and credit cards and other
consumer bank loans had FICO scores below 640. At December 31, 2011 and 2010, approximately 2% and 3%,
respectively, of the Company’s residential mortgage loans had LTV ratios greater than 90%. The Company’s most significant
geographic concentration for consumer bank loans is in California representing 38% and 33% of the portfolio as of
December 31, 2011 and 2010, respectively. No other state represents more than 10% of the total consumer bank loan
portfolio.
Troubled Debt Restructurings
During the year ended December 31, 2011 the Company restructured 119 loans with a recorded investment of
$52 million as of December 31, 2011. Of the total restructured loans, 11 loans were commercial mortgage loans with a
recorded investment of $51 million as of December 31, 2011. The troubled debt restructurings did not have a material
impact to the Company’s allowance for loan losses or income recognized for the year ended December 31, 2011. There
are no material commitments to lend additional funds to borrowers whose loans have been restructured.
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