US Bank 2004 Annual Report Download - page 35
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Please find page 35 of the 2004 US Bank 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.from December 31, 2003. The decrease in interest-bearing decrease in the higher cost time certificates of deposits less
savings deposits was primarily due to decreases in money than $100,000 of $1.1 billion (8.4 percent). Changes in
market accounts of $3.5 billion (10.4 percent), partially these deposit categories were principally due to pricing
offset by an increase of $1.8 billion (8.3 percent) in interest decisions based on the relative cost of funding. Time
checking. The increase in interest checking reflects the certificates of deposit less than $100,000 were essentially
migration of noninterest-bearing deposits to the Silver Elite unchanged in the fourth quarter and represent a source of
interest checking product. The decrease in money market fixed-rate funding in a rising rate environment. Average
savings account balances, in part, reflects pricing decisions time deposits greater than $100,000 increased $1.4 billion
by the Company given the profitability of certain business (11.0 percent) and average time certificates of deposit less
accounts and modest commercial loan growth and business than $100,000 declined $2.4 billion (15.6 percent) during
customer decisions to utilize deposit liquidity during 2004. 2004. Time deposits greater than $100,000 are largely
A portion of money market balances migrated to time viewed as purchased funds and are managed to levels
deposits greater than $100,000 as interest rates increased deemed appropriate given alternative funding sources.
for these products. Average interest-bearing savings deposits Borrowings The Company utilizes both short-term and
were $59.7 billion in 2004, an increase of $2.6 billion long-term borrowings to fund growth of earning assets in
(4.6 percent), compared with 2003. The increase in average excess of deposit growth. Short-term borrowings, which
interest-bearing savings deposits from 2003 to 2004 was include federal funds purchased, securities sold under
primarily driven by increases in interest checking of agreements to repurchase and other short-term borrowings,
$1.8 billion (9.6 percent), along with increases in money were $13.1 billion at December 31, 2004, compared with
market accounts of $.5 billion (1.7 percent) and savings $10.9 billion at December 31, 2003. Short-term funding is
accounts of $.3 billion (4.5 percent). managed to levels deemed appropriate given alternative
Interest-bearing time deposits were $30.6 billion at funding sources. The increase of $2.2 billion in short-term
December 31, 2004, compared with $25.5 billion at borrowings reflected wholesale funding associated with the
December 31, 2003, an increase of $5.1 billion Company’s earning asset growth.
(19.9 percent). The increase in interest-bearing time deposits Long-term debt was $34.7 billion at December 31,
was driven by an increase of $6.2 billion (52.5 percent) in 2004, compared with $33.8 billion at December 31, 2003,
time deposits greater than $100,000, partially offset by a an increase of $.9 billion. The increase in long-term debt
Deposits
The composition of deposits was as follows:
2004 2003 2002 2001 2000
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 ******************* $ 30,756 25.5% $ 32,470 27.3% $ 35,106 30.4% $ 31,212 29.7% $ 26,633 24.3%
Interest-bearing deposits
Interest checking ************************** 23,186 19.2 21,404 18.0 17,467 15.1 15,251 14.5 13,982 12.8
Money market accounts ******************** 30,478 25.2 34,025 28.6 27,753 24.0 24,835 23.6 23,899 21.8
Savings accounts************************** 5,728 4.8 5,630 4.7 5,021 4.4 4,637 4.4 4,516 4.1
Total of savings deposits **************** 59,392 49.2 61,059 51.3 50,241 43.5 44,723 42.5 42,397 38.7
Time certificates of deposit less than $100,000 ***** 12,544 10.4 13,690 11.5 17,973 15.5 20,724 19.7 25,780 23.5
Time deposits greater than $100,000
Domestic********************************* 11,956 9.9 5,902 4.9 9,427 8.2 7,286 6.9 11,221 10.3
Foreign*********************************** 6,093 5.0 5,931 5.0 2,787 2.4 1,274 1.2 3,504 3.2
Total interest-bearing deposits *********** 89,985 74.5 86,582 72.7 80,428 69.6 74,007 70.3 82,902 75.7
Total deposits ***************************** $120,741 100.0% $119,052 100.0% $115,534 100.0% $105,219 100.0% $109,535 100.0%
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, 2004 (Dollars in Millions) Deposit Less Than $100,000 Greater Than $100,000 Total
Three months or less*********************************************** $ 2,324 $14,097 $16,421
Three months through six months************************************ 1,961 1,325 3,286
Six months through one year **************************************** 2,536 940 3,476
2006 ************************************************************* 2,998 825 3,823
2007 ************************************************************* 1,579 445 2,024
2008 ************************************************************* 614 188 802
2009 ************************************************************* 521 220 741
Thereafter********************************************************* 11 9 20
Total ********************************************************** $12,544 $18,049 $30,593
U.S. BANCORP 33
Table 11