Ameriprise 2015 Annual Report Download - page 145

Download and view the complete annual report

Please find page 145 of the 2015 Ameriprise annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 210

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210

Concentrations of credit risk of commercial mortgage loans by U.S. region were as follows:
Loans Percentage
December 31, December 31,
2015 2014 2015 2014
(in millions)
East North Central $ 211 $ 238 8% 9%
East South Central 74 62 3 2
Middle Atlantic 210 217 8 8
Mountain 248 245 9 9
New England 123 140 4 5
Pacific 741 694 27 25
South Atlantic 782 740 28 27
West North Central 229 233 8 9
West South Central 137 160 5 6
2,755 2,729 100% 100%
Less: allowance for loan losses 21 25
Total $ 2,734 $ 2,704
Concentrations of credit risk of commercial mortgage loans by property type were as follows:
Loans Percentage
December 31, December 31,
2015 2014 2015 2014
(in millions)
Apartments $ 504 $ 500 18% 18%
Hotel 35 34 1 1
Industrial 459 461 17 17
Mixed use 35 45 1 2
Office 541 545 20 20
Retail 984 988 36 36
Other 197 156 7 6
2,755 2,729 100% 100%
Less: allowance for loan losses 21 25
Total $ 2,734 $ 2,704
Syndicated Loans
The recorded investment in syndicated loans at December 31, 2015 and 2014 was $553 million and $511 million,
respectively. 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 December 31, 2015 and 2014 were $6 million and $4 million,
respectively.
Consumer Loans
The recorded investment in consumer loans at December 31, 2015 and 2014 was $636 million and $753 million,
respectively. 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 consumer loans. At a minimum,
management updates FICO scores and LTV ratios semiannually.
As of December 31, 2015 and 2014, approximately 4% and 6%, respectively, of consumer loans had FICO scores
below 640. At both December 31, 2015 and 2014, approximately 2% 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 37% of the portfolio as of both December 31, 2015 and 2014. No other state represents more than 10% of
the total consumer loan portfolio.
Troubled Debt Restructurings
The recorded investment in restructured loans was not material as of December 31, 2015, 2014 and 2013. 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, 2015, 2014 and 2013. There are no commitments to lend additional funds to borrowers
whose loans have been restructured.
123