US Bank 2003 Annual Report Download - page 35

deposits was primarily the result of increases in all savings increase of $11.2 billion (24.5 percent), compared with
deposit products, partially offset by declines in noninterest- 2002. The increase in interest-bearing savings deposits from
bearing deposits, time certificates of deposit less than December 31, 2002, to December 31, 2003, was primarily
$100,000 and time deposits greater than $100,000. driven by increases in money market accounts of
Noninterest-bearing deposits were $32.5 billion at $6.3 billion (22.6 percent), along with increases in interest
December 31, 2003, compared with $35.1 billion at checking of $3.9 billion (22.5 percent) and savings accounts
December 31, 2002, a decrease of $2.6 billion (7.5 percent). of $.6 billion (12.1 percent). The favorable change in
The decrease in noninterest-bearing deposits was primarily money market accounts was the result of product pricing
attributable to a decline in deposits related to mortgage initiatives on high-impact money market products, the
banking businesses and lower government banking deposits continued desire by customers to maintain liquidity, specific
relative to a year ago. Mortgage banking declined deposit gathering initiatives and the State Street Corporate
substantially in the third quarter directly related to the Trust acquisition, which contributed approximately
upward movement in interest rates experienced since late $.6 billion of the increase during 2003.
June, 2003. Government banking deposits declined Interest-bearing time deposits were $25.5 billion at
primarily due to a decision by the federal government to December 31, 2003, compared with $30.2 billion at
pay fees for cash management services rather than maintain December 31, 2002, a decrease of $4.7 billion
compensating balances. Average noninterest-bearing deposits (15.5 percent). The decrease in interest-bearing time
were $31.7 billion in 2003, an increase of $3.0 billion deposits was driven by a decrease in the higher cost time
(10.4 percent), compared with 2002. The increase in certificates of deposits less than $100,000 of $4.3 billion
average noninterest-bearing deposits was primarily the result (23.8 percent) and a decrease of $381 million (3.1 percent)
of higher demand deposits of mortgage and government in time deposits greater than $100,000. Average time
banking customers during the first half of 2003, customer deposits greater than $100,000 increased $1.0 billion
decisions to maintain excess liquidity in demand deposit (8.7 percent) and average time certificates of deposit less
balances, and acquisitions. than $100,000 declined $3.8 billion (19.7 percent) during
Interest-bearing savings deposits totaled $61.1 billion at 2003. Time certificates of deposits are largely viewed as
December 31, 2003, an increase of $10.8 billion purchased funds and are managed to levels deemed
(21.5 percent) from December 31, 2002. Average interest- appropriate given alternative funding sources. The decline in
bearing savings deposits were $57.0 billion in 2003, an time certificates of deposits less than $100,000 from a year
Deposits
The composition of deposits was as follows:
2003 2002 2001 2000 1999
Percent Percent Percent Percent Percent
December 31 (Dollars in Millions) Amount of Total Amount of Total Amount of Total Amount of Total Amount of Total
Noninterest-bearing deposits ***************** $ 32,470 27.3% $ 35,106 30.4% $ 31,212 29.7% $ 26,633 24.3% $ 26,350 25.5%
Interest-bearing deposits
Interest checking ************************ 21,404 18.0 17,467 15.1 15,251 14.5 13,982 12.8 13,141 12.7
Money market accounts****************** 34,025 28.6 27,753 24.0 24,835 23.6 23,899 21.8 22,751 22.0
Savings accounts *********************** 5,630 4.7 5,021 4.4 4,637 4.4 4,516 4.1 5,445 5.3
Total of savings deposits************** 61,059 51.3 50,241 43.5 44,723 42.5 42,397 38.7 41,337 40.0
Time certificates of deposit less than $100,000*** 13,690 11.5 17,973 15.5 20,724 19.7 25,780 23.5 25,394 24.5
Time deposits greater than $100,000
Domestic ******************************* 5,902 4.9 9,427 8.2 7,286 6.9 11,221 10.3 9,348 9.0
Foreign ******************************** 5,931 5.0 2,787 2.4 1,274 1.2 3,504 3.2 988 1.0
Total interest-bearing deposits ********* 86,582 72.7 80,428 69.6 74,007 70.3 82,902 75.7 77,067 74.5
Total deposits *************************** $119,052 100.0% $115,534 100.0% $105,219 100.0% $109,535 100.0% $103,417 100.0%
The maturity of time certificates of deposit less than $100,000 and time deposits greater than $100,000 was as follows:
Time Certificates of Time Deposits
December 31, 2003 (Dollars in Millions) Deposit Less Than $100,000 Greater Than $100,000 Total
Three months or less ******************************************** $ 2,747 $ 8,610 $11,357
Three months through six months ********************************* 2,237 831 3,068
Six months through one year************************************** 2,778 745 3,523
One year through three years ************************************* 4,179 1,128 5,307
Three years through five years ************************************ 1,733 508 2,241
Thereafter ****************************************************** 16 11 27
Total ******************************************************** $13,690 $11,833 $25,523
U.S. Bancorp 33
Table 11