US Bank 2002 Annual Report Download - page 35

The weighted-average yield of the available-for-sale in Table 11. The change in investment portfolio mix
portfolio was 4.97 percent at December 31, 2002, reflected sales of tax-exempt municipal securities that were
compared with 5.58 percent at December 31, 2001. The replaced primarily by collateralized mortgage obligations. At
average maturity of the available-for-sale portfolio dropped December 31, 2002, the available-for-sale portfolio included
to 2.8 years at December 31, 2002, down from 5.4 years at a $714 million net unrealized gain, compared with a net
December 31, 2001. The relative mix of the type of unrealized gain of $15 million at December 31, 2001.
investment securities maintained in the portfolio is provided
Investment Securities
Available-for-Sale Held-to-Maturity
Weighted Weighted
Average Weighted Average Weighted
Amortized Fair Maturity in Average Amortized Fair Maturity in Average
December 31, 2002 (Dollars in Millions) Cost Value Years Yield Cost Value Years Yield
U.S. Treasury and agencies
Maturing in one year or less ********** $ 162 $ 164 .44 3.83% $ — $ — — —%
Maturing after one year through
five years************************ 207 218 2.97 4.37 ————
Maturing after five years through
ten years ************************ 41 42 7.33 4.12 ————
Maturing after ten years ************** 11 12 11.38 5.23 ————
Total************************* $ 421 $ 436 2.64 4.16% $ — $ — — —%
Mortgage-backed securities
Maturing in one year or less ********** $ 3,878 $ 3,904 .61 3.33% $ — $ — — —%
Maturing after one year through
five years************************ 20,359 20,988 2.69 5.18 20 20 3.25 7.67
Maturing after five years through
ten years ************************ 725 768 5.61 5.27 ————
Maturing after ten years ************** 5 6 13.85 6.12 ————
Total************************* $24,967 $25,666 2.46 4.90% $ 20 $ 20 3.25 7.67%
Asset-backed securities
Maturing in one year or less ********** $ 1 $ 1 .25 5.50% $ — $ — — —%
Maturing after one year through
five years************************ 446 459 3.39 5.24 ————
Maturing after five years through
ten years ************************ 199 210 7.12 5.72 ————
Maturing after ten years ************** — ——— ————
Total************************* $ 646 $ 670 4.53 5.39% $ — $ — — —%
Obligations of states and political
subdivisions
Maturing in one year or less ********** $ 102 $ 103 .42 7.26% $ 34 $ 35 .47 3.60%
Maturing after one year through
five years************************ 263 275 2.73 7.26 62 66 2.97 6.20
Maturing after five years through
ten years ************************ 140 147 6.89 7.42 48 52 7.20 6.28
Maturing after ten years ************** 53 54 18.32 9.32 69 67 15.07 5.85
Total************************* $ 558 $ 579 4.83 7.50% $213 $220 7.44 5.69%
Other debt securities
Maturing in one year or less ********** $ 33 $ 34 .63 5.50% $ — $ — — —%
Maturing after one year through
five years************************ 165 165 2.57 11.41 ————
Maturing after five years through
ten years ************************ 4 3 6.54 5.15 ————
Maturing after ten years ************** 262 233 24.36 2.30 ————
Total************************* $ 464 $ 435 14.76 5.80% $ — $ — — —%
Other investments ****************** $ 485 $ 469 — —% $ — $ — — —%
Total investment securities *************** $27,541 $28,255 2.77 4.97% $233 $240 7.08 5.86%
Note: Information related to asset and mortgage-backed securities included above is presented based upon weighted average maturities anticipating future prepayments. Average
yields are presented on a fully-taxable equivalent basis. Yields on available-for-sale securities are computed based on historical cost balances. Average yield and maturity
calculations exclude equity securities that have no stated yield or maturity.
2002 2001
Amortized Percent Amortized Percent
At December 31 (Dollars in Millions) Cost of Total Cost of Total
U.S. treasuries and agencies *********************************************************** $ 421 1.5% $ 439 1.7%
Mortgage-backed securities************************************************************* 24,987 90.0 21,965 82.6
Asset-backed securities **************************************************************** 646 2.3 2,091 7.9
Obligations of states and political subdivisions ******************************************** 771 2.8 1,148 4.3
Other securities and investments ******************************************************** 949 3.4 950 3.5
Total investment securities ********************************************************** $27,774 100.0% $26,593 100.0%
U.S. Bancorp 33
Table 11