US Bank 2004 Annual Report Download - page 39
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Please find page 39 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.and a $8.0 million decrease in nonperforming retail loans, quarters, the ongoing level of nonperforming assets is not
partially offset by an increase of $2.8 million in expected to decline much further after mid-2005.
nonperforming residential mortgages. The decrease in The $225.4 million decrease in total nonperforming
nonperforming assets in 2004 was broad-based across most assets in 2003, as compared with 2002, reflected a decrease
industry sectors within the commercial loan portfolio of $204.9 million in nonperforming commercial and
including capital goods, consumer-related sectors, commercial real estate loans, a decrease of $11.5 million in
manufacturing and certain segments of transportation. nonperforming residential mortgages and a $.9 million
While airline travel has increased from a year ago, the decrease in nonperforming retail loans. The decrease in
industry continues to be economically stressed and has had nonperforming assets in 2003 was also broad-based across
difficulty improving cash flows from operations. Certain most industry sectors within the commercial loan portfolio
health care facilities providers continue to experience including capital goods, consumer-related sectors,
operational stress leading to some deterioration in credit manufacturing, telecommunications, and certain segments of
quality within that sector. While nonperforming assets are transportation.
expected to continue to decline slightly during the next few
Nonperforming Assets (a)
At December 31, (Dollars in Millions) 2004 2003 2002 2001 2000
Commercial
Commercial ******************************** $289.5 $ 623.5 $ 760.4 $ 526.6 $470.4
Lease financing ***************************** 90.6 113.3 166.7 180.8 70.5
Total commercial ************************* 380.1 736.8 927.1 707.4 540.9
Commercial real estate
Commercial mortgages ********************** 174.6 177.6 174.6 131.3 105.5
Construction and development **************** 25.3 39.9 57.5 35.9 38.2
Total commercial real estate *************** 199.9 217.5 232.1 167.2 143.7
Residential mortgages ********************** 43.3 40.5 52.0 79.1 56.9
Retail
Credit card ********************************* ————8.8
Retail leasing ******************************* — .4 1.0 6.5 —
Other retail ********************************* 17.2 24.8 25.1 41.1 15.0
Total retail ******************************* 17.2 25.2 26.1 47.6 23.8
Total nonperforming loans ************** 640.5 1,020.0 1,237.3 1,001.3 765.3
Other real estate**************************** 72.2 72.6 59.5 43.8 61.1
Other assets ******************************** 35.7 55.5 76.7 74.9 40.6
Total nonperforming assets ************* $748.4 $1,148.1 $1,373.5 $1,120.0 $867.0
Restructured loans accruing interest (b)************ $ 10.2 $ 18.0 $ 1.4 $ — $ —
Accruing loans 90 days or more past due ********* $294.0 $ 329.4 $ 426.4 $ 462.9 $385.2
Nonperforming loans to total loans**************** .51% .86% 1.06% .88% .63%
Nonperforming assets to total loans plus other real
estate ************************************* .59% .97% 1.18% .98% .71%
Net interest lost on nonperforming loans *********** $ 42.1 $ 67.4 $ 65.4 $ 63.0 $ 50.8
Changes in Nonperforming Assets
Commercial and Retail and
(Dollars in Millions) Commercial Real Estate Residential Mortgages (d) Total
Balance December 31, 2003 ********************************** $ 1,013.3 $134.8 $ 1,148.1
Additions to nonperforming assets
New nonaccrual loans and foreclosed properties**************** 650.7 41.5 692.2
Advances on loans ***************************************** 39.0 — 39.0
Total additions ****************************************** 689.7 41.5 731.2
Reductions in nonperforming assets
Paydowns, payoffs****************************************** (498.3) (24.1) (522.4)
Net sales ************************************************** (132.0) — (132.0)
Return to performing status ********************************** (106.1) (15.3) (121.4)
Charge-offs (c) ********************************************* (347.3) (7.8) (355.1)
Total reductions ***************************************** (1,083.7) (47.2) (1,130.9)
Net reductions in nonperforming assets ***************** (394.0) (5.7) (399.7)
Balance December 31, 2004 ********************************** $ 619.3 $129.1 $ 748.4
(a) Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due.
(b) Nonaccrual restructured loans are included in the respective nonperforming loan categories and excluded from restructured loans accruing interest.
(c) Charge-offs exclude actions for certain card products and loan sales that were not classified as nonperforming at the time the charge-off occurred.
(d) Residential mortgage information excludes changes related to residential mortgages serviced by others.
U.S. BANCORP 37
Table 12