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DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
At December 31,
90 days or more past due excluding nonperforming loans 2005 2004 2003 2002 2001
Commercial
Commercial ************************************************* .06% .05% .06% .14% .14%
Lease financing ********************************************** — .02 .04 .10 .45
Total commercial ****************************************** .05 .05 .06 .14 .18
Commercial real estate
Commercial mortgages *************************************** — — .02 .03 .03
Construction and development ********************************* — — .03 .07 .02
Total commercial real estate ******************************** — — .02 .04 .02
Residential mortgages*************************************** .32 .46 .61 .90 .78
Retail
Credit card ************************************************** 1.26 1.74 1.68 2.09 2.18
Retail leasing ************************************************ .04 .08 .14 .19 .11
Other retail ************************************************** .22 .29 .41 .54 .74
Total retail************************************************ .36 .47 .56 .72 .90
Total loans ******************************************** .18% .23% .28% .37% .40%
At December 31,
90 days or more past due including nonperforming loans 2005 2004 2003 2002 2001
Commercial***************************************************** .69% .99% 1.97% 2.35% 1.71%
Commercial real estate ******************************************* .55 .73 .82 .90 .68
Residential mortgages (a) ***************************************** .55 .74 .91 1.44 1.79
Retail ********************************************************** .50 .51 .62 .79 1.03
Total loans ************************************************** .58% .74% 1.14% 1.43% 1.28%
(a) Delinquent loan ratios exclude advances made pursuant to servicing agreements to Government National Mortgage Association (‘‘GNMA’’) mortgage pools whose repayments are insured
by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Including the guaranteed amounts, the ratio of residential mortgages 90 days or more past due
was 4.35 percent, 5.19 percent, and 6.07 percent at December 31, 2005, 2004 and 2003, respectively. Information prior to 2003 is not available.
aging, the account must have been open for at least one Accruing loans 90 days or more past due totaled
year and cannot have been re-aged during the preceding $253 million at December 31, 2005, compared with
365 days. An account may not be re-aged more than two $294 million at December 31, 2004, and $329 million at
times in a five year period. To qualify for re-aging, the December 31, 2003. These loans were not included in
customer must also have made three regular minimum nonperforming assets and continue to accrue interest
monthly payments within the last 90 days. In addition, the because they are adequately secured by collateral, and/or
Company may re-age the retail account of a customer who are in the process of collection and are reasonably expected
has experienced longer-term financial difficulties and apply to result in repayment or restoration to current status. The
modified, concessionary terms and conditions to the ratio of 90 day delinquent loans to total loans was
account. Such additional re-ages are limited to one in a five .18 percent at December 31, 2005, compared with
year period, must meet the qualifications for re-aging .23 percent at December 31, 2004.
described above, except that the customer’s three To monitor credit risk associated with retail loans, the
consecutive minimum monthly payments may be based on Company also monitors delinquency ratios in the various
the modified terms and conditions applied to the account, stages of collection. In general, delinquency ratios for retail
and continue to be reported in restructured loans. All re- loans continued to improve relative to December 31, 2004,
aging strategies must be independently approved by the reflecting the Company’s ongoing improvement in collection
Company’s credit administration function and are limited to efforts, underwriting, risk management and stable economic
credit card and other retail accounts. Commercial loans are conditions.
not subject to re-aging policies.
U.S. BANCORP 35
Table 13