US Bank 2004 Annual Report Download - page 41
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Please find page 41 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.The following table provides summary delinquency ratios reported on a concurrent basis. The decline in retail
information for residential mortgages and retail loans: loan delinquencies from a year ago, reflected improving
As a Percent economic conditions as well as ongoing collection efforts,
of Ending Loan
Amount Balances risk management actions taken by the Company and the
December 31
(Dollars in Millions) 2004 2003 2004 2003 effect of portfolio growth on delinquency ratios reported on
a concurrent basis.
Residential Mortgages
30-89 days********* $108.3 $102.9 .70% .76% Analysis of Loan Net Charge-Offs Total loan net charge-offs
90 days or more **** 70.2 82.5 .46 .61
decreased $484.6 million to $767.1 million in 2004,
Nonperforming ****** 43.3 40.5 .28 .30
compared with $1,251.7 million in 2003 and
Total ************** $221.8 $225.9 1.44% 1.68% $1,373.0 million in 2002. The ratio of total loan net
Retail charge-offs to average loans was .63 percent in 2004,
Credit Card compared with 1.06 percent in 2003 and 1.20 percent in
30-89 days********* $142.4 $150.9 2.16% 2.54% 2002. The overall level of net charge-offs in 2004 reflected
90 days or more **** 114.8 99.5 1.74 1.68 the Company’s ongoing efforts to reduce the overall risk
Nonperforming ****** ————
profile of the organization, improved economic conditions,
Total ********** $257.2 $250.4 3.90% 4.22% higher commercial loan recoveries, refinancing by higher
Retail Leasing risk customers with other companies and higher asset
30-89 days********* $ 59.4 $ 78.8 .83% 1.31%
valuations. Net charge-offs are expected to increase
90 days or more **** 5.6 8.2 .08 .14
Nonperforming ****** — .4 — .01 modestly as the level of commercial loan recoveries declines
to more normalized levels in 2005. The improvement in net
Total ********** $ 65.0 $ 87.4 .91% 1.45%
charge-offs in 2003, compared with 2002, was due to credit
Other Retail
30-89 days********* $223.6 $311.9 .76% 1.15% risk management initiatives taken by the Company that
90 days or more **** 84.3 110.2 .29 .41 improved the credit risk profile of the loan portfolio. These
Nonperforming ****** 17.2 24.8 .05 .09 initiatives along with better economic conditions resulted in
Total ********** $325.1 $446.9 1.10% 1.65% improving credit risk classifications and lower levels of
nonperforming assets and consumer loan delinquencies.
The decline in residential mortgage delinquencies from
Commercial and commercial real estate loan net
December 31, 2003, to December 31, 2004, reflected the
charge-offs for 2004 were $195.7 million (.29 percent of
general improvement in economic conditions, collection
average loans outstanding), compared with $608.7 million
efforts and the effect of portfolio growth on delinquency
Net Charge-offs as a Percent of Average Loans Outstanding
Year Ended December 31 2004 2003 2002 2001 2000
Commercial
Commercial ********************************************** .29% 1.34% 1.29% 1.62% .56%
Lease financing ******************************************* 1.42 1.65 2.67 1.95 .46
Total commercial*************************************** .43 1.38 1.46 1.66 .55
Commercial real estate
Commercial mortgages ************************************ .09 .14 .17 .21 .03
Construction and development****************************** .13 .16 .11 .17 .11
Total commercial real estate ***************************** .10 .14 .15 .20 .05
Residential mortgages *********************************** .20 .23 .23 .15 .11
Retail
Credit card*********************************************** 4.14 4.61 4.98 4.80 4.18
Retail leasing ********************************************* .59 .86 .72 .65 .41
Home equity and second mortgages ************************ .54 .70 .74 .85 *
Other retail *********************************************** 1.22 1.60 2.10 2.16 1.32
Total retail********************************************* 1.32 1.61 1.85 1.94 1.69
Total loans (a) ************************************** .63% 1.06% 1.20% 1.31% .70%
(a) In accordance with guidance provided in the Interagency Guidance on Certain Loans Held for Sale, loans held with the intent to sell are transferred to the Loans Held for Sale category
based on the lower of cost or fair value. At the time of transfer, the portion of the mark-to-market losses representing probable credit losses determined in accordance with policies and
methods utilized to determine the allowance for credit losses is included in net charge-offs. The remaining portion of the losses was reported separately as a reduction of the allowance for
credit losses under ‘‘Losses from loan sales/transfers.’’ Had the entire amount of the loss been reported as charge-offs, total net charge-offs would have been $1,875.8 million
(1.59 percent of average loans) for the year ended December 31, 2001.
* Information not available
U.S. BANCORP 39
Table 14