US Bank 2004 Annual Report Download - page 81
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Please find page 81 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.Activity in the allowance for credit losses was as follows:
(Dollars in Millions) 2004 2003 2002
Balance at beginning of year*************************************************************** $2,368.6 $2,422.0 $2,457.3
Add
Provision charged to operating expense************************************************** 669.6 1,254.0 1,349.0
Deduct
Loans charged off********************************************************************* 1,073.5 1,494.1 1,590.7
Less recoveries of loans charged off ***************************************************** 306.4 242.4 217.7
Net loans charged off****************************************************************** 767.1 1,251.7 1,373.0
Acquisitions and other changes ************************************************************ (1.8) (55.7) (11.3)
Balance at end of year (a) ***************************************************************** $2,269.3 $2,368.6 $2,422.0
Components
Allowance for loan losses ************************************************************** $2,080.4 $2,183.6
Liability for unfunded credit commitments************************************************* 188.9 185.0
Total allowance for credit losses****************************************************** $2,269.3 $2,368.6
(a) Included in this analysis is activity related to the Company’s liability for unfunded commitments, which is separately recorded in other liabilities in the Consolidated Balance Sheet.
A portion of the allowance for credit losses is allocated to loans deemed impaired. All impaired loans are included in
nonperforming assets. A summary of these loans and their related allowance for credit losses is as follows:
2004 2003 2002
Recorded Valuation Recorded Valuation Recorded Valuation
(Dollars in Millions) Investment Allowance Investment Allowance Investment Allowance
Impaired loans
Valuation allowance required *********** $489 $64 $841 $108 $992 $157
No valuation allowance required ******** ——————
Total impaired loans ********************** $489 $64 $841 $108 $992 $157
Average balance of impaired loans during the
year********************************* $600 $970 $839
Interest income recognized on impaired loans
during the year *********************** 1——
Commitments to lend additional funds to customers Included in noninterest income, primarily in mortgage
whose loans were classified as nonaccrual or restructured at banking revenue, for the years ended December 31, 2004,
December 31, 2004, totaled $61.2 million. During 2004 2003 and 2002, the Company had net gains on the sale of
there were $10.2 million of loans that were restructured at loans of $171.0 million, $162.9 million and $243.4 million,
market interest rates and returned to an accruing status. respectively.
Leases
The components of the net investment in sales-type and direct financing leases at December 31 were as follows:
(Dollars in Millions) 2004 2003
Aggregate future minimum lease payments to be received****************************************************** $12,436 $11,293
Unguaranteed residual values accruing to the lessor’s benefit *************************************************** 615 652
Unearned income ***************************************************************************************** (1,560) (1,533)
Initial direct costs ***************************************************************************************** 264 226
Total net investment in sales-type and direct financing leases ************************************************ $11,755 $10,638
The amount of future minimum lease payments included the following at December 31:
(Dollars in Millions) 2004 2003
Accumulated allowance for uncollectible minimum lease payments ************************************************* $141 $131
U.S. BANCORP 79
Note 9