US Bank 2004 Annual Report Download - page 43
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Please find page 43 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.Summary of Allowance for Credit Losses
(Dollars in Millions) 2004 2003 2002 2001 2000
Balance at beginning of year******************************* $2,368.6 $2,422.0 $2,457.3 $1,786.9 $1,710.3
Charge-offs
Commercial
Commercial *************************************** 243.5 555.6 559.2 779.0 319.8
Lease financing ************************************ 110.6 139.3 188.8 144.4 27.9
Total commercial ******************************* 354.1 694.9 748.0 923.4 347.7
Commercial real estate
Commercial mortgages ***************************** 29.1 43.9 40.9 49.5 15.8
Construction and development ********************** 12.5 13.0 8.8 12.6 10.3
Total commercial real estate ********************** 41.6 56.9 49.7 62.1 26.1
Residential mortgages ********************************* 32.5 30.3 23.1 15.8 13.7
Retail
Credit card**************************************** 281.5 282.1 304.9 294.1 235.8
Retail leasing ************************************** 49.0 57.0 45.2 34.2 14.8
Home equity and second mortgages ***************** 89.6 105.0 107.9 112.7 *
Other retail **************************************** 225.2 267.9 311.9 329.1 379.5
Total retail ************************************* 645.3 712.0 769.9 770.1 630.1
Total charge-offs **************************** 1,073.5 1,494.1 1,590.7 1,771.4 1,017.6
Recoveries
Commercial
Commercial *************************************** 143.9 70.0 67.4 60.6 64.0
Lease financing ************************************ 41.5 55.3 39.9 30.4 7.2
Total commercial ******************************* 185.4 125.3 107.3 91.0 71.2
Commercial real estate
Commercial mortgages ***************************** 11.1 15.8 9.1 9.1 10.8
Construction and development ********************** 3.5 2.0 1.4 .8 2.6
Total commercial real estate ********************** 14.6 17.8 10.5 9.9 13.4
Residential mortgages ********************************* 3.8 3.4 4.0 3.2 1.3
Retail
Credit card**************************************** 29.6 27.3 24.6 23.4 27.5
Retail leasing ************************************** 9.6 7.0 6.3 4.5 2.0
Home equity and second mortgages ***************** 13.8 12.1 10.6 12.9 *
Other retail **************************************** 49.6 49.5 54.4 80.0 76.8
Total retail ************************************* 102.6 95.9 95.9 120.8 106.3
Total recoveries ***************************** 306.4 242.4 217.7 224.9 192.2
Net Charge-offs
Commercial
Commercial *************************************** 99.6 485.6 491.8 718.4 255.8
Lease financing ************************************ 69.1 84.0 148.9 114.0 20.7
Total commercial ******************************* 168.7 569.6 640.7 832.4 276.5
Commercial real estate
Commercial mortgages ***************************** 18.0 28.1 31.8 40.4 5.0
Construction and development ********************** 9.0 11.0 7.4 11.8 7.7
Total commercial real estate ********************** 27.0 39.1 39.2 52.2 12.7
Residential mortgages ********************************* 28.7 26.9 19.1 12.6 12.4
Retail
Credit card**************************************** 251.9 254.8 280.3 270.7 208.3
Retail leasing ************************************** 39.4 50.0 38.9 29.7 12.8
Home equity and second mortgages ***************** 75.8 92.9 97.3 99.8 *
Other retail **************************************** 175.6 218.4 257.5 249.1 302.7
Total retail ************************************* 542.7 616.1 674.0 649.3 523.8
Total net charge-offs ************************* 767.1 1,251.7 1,373.0 1,546.5 825.4
Provision for credit losses ********************************* 669.6 1,254.0 1,349.0 2,528.8 828.0
Losses from loan sales/transfers (a)************************* — — — (329.3) —
Acquisitions and other changes **************************** (1.8) (55.7) (11.3) 17.4 74.0
Balance at end of year ************************************ $2,269.3 $2,368.6 $2,422.0 $2,457.3 $1,786.9
Components
Allowance for loan losses ****************************** $2,080.4 $2,183.6
Liability for unfunded credit commitments (b)************** 188.9 185.0
Total allowance for credit losses ****************** $2,269.3 $2,368.6
Allowance for credit losses as a percentage of
Period-end loans************************************** 1.80% 2.00% 2.08% 2.15% 1.46%
Nonperforming loans ********************************** 354 232 196 245 233
Nonperforming assets ********************************* 303 206 176 219 206
Net charge-offs (a) ************************************ 296 189 176 159 216
(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 the 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 for the year ended 2001. Additionally, the allowance as a percent of net charge-offs would have been 131 percent for the year ended December 31, 2001.
(b) During 2004, the Company reclassified the portion of its allowance for credit losses related to commercial off-balance sheet loan commitments and letters of credit to a separate liability
account included in other liabilities in the Consolidated Balance Sheet. Amounts for 2003 have been restated.
* Information not available
U.S. BANCORP 41
Table 15