Ameriprise 2012 Annual Report Download - page 144
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Concentrations of credit risk of commercial mortgage loans by property type were as follows:
Loans Percentage
December 31, December 31,
2012 2011 2012 2011
(in millions)
Apartments $ 450 $ 392 17% 15%
Hotel 36 51 1 2
Industrial 474 480 18 18
Mixed use 42 42 2 2
Office 610 694 24 26
Retail 858 845 33 32
Other 136 120 5 5
2,606 2,624 100% 100%
Less: allowance for loan losses 29 35
Total $ 2,577 $ 2,589
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, 2012 and 2011 were $3 million.
Consumer Loans
The Company considers the credit worthiness of borrowers (FICO score), collateral characteristics such as loan-to-value
(‘‘LTV’’) and geographic concentration in determining the allowance for loan losses for consumer loans. At a minimum,
management updates FICO scores and LTV ratios semiannually.
As of December 31, 2012 and 2011, approximately 5% and 7%, respectively, of consumer loans had FICO scores below
640. At December 31, 2012 and 2011, approximately 8% and 2%, respectively, of the Company’s residential mortgage
loans had LTV ratios greater than 90%. The Company’s most significant geographic concentration for consumer loans is in
California representing 38% of the portfolio as of both December 31, 2012 and 2011. No other state represents more
than 10% of the total consumer loan portfolio.
Troubled Debt Restructurings
The following table presents the number of loans restructured by the Company during the period and their recorded
investment at the end of the period:
Years Ended December 31,
2012 2011
Number Recorded Number Recorded
of Loans Investment of Loans Investment
(in millions, except number of loans)
Commercial mortgage loans 4 $ 13 11 $ 51
Syndicated loans 5 2 2 —
Consumer loans 23 — 106 1
Total 32 $ 15 119 $ 52
The troubled debt restructurings did not have a material impact to the Company’s allowance for loan losses or income
recognized for the years ended December 31, 2012 and 2011. There are no material commitments to lend additional
funds to borrowers whose loans have been restructured.
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