US Bank 2005 Annual Report Download - page 38

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The following table provides summary delinquency assets owned by the Company. Interest payments collected
information for residential mortgages and retail loans: from assets on nonaccrual status are typically applied
against the principal balance and not recorded as income.
As a Percent
of Ending Loan At December 31, 2005, total nonperforming assets were
Amount Balances
December 31 $644 million, compared with $748 million at year-end 2004
(Dollars in Millions) 2005 2004 2005 2004
and $1,148 million at year-end 2003. The ratio of total
Residential mortgages nonperforming assets to total loans and other real estate
30-89 days*********** $112 $108 .55% .70% decreased to .47 percent at December 31, 2005, compared
90 days or more ****** 67 70 .32 .46
with .59 percent and .97 percent at the end of 2004 and
Nonperforming ******** 48 43 .23 .28
2003, respectively. The $104 million decrease in total
Total ************ $227 $221 1.10% 1.44%
nonperforming assets in 2005 principally reflected decreases
Retail in nonperforming commercial and commercial real estate
Credit card loans, partially offset by increases in nonperforming retail
30-89 days*********** $147 $142 2.06% 2.15% loans and residential mortgages. The decrease in
90 days or more ****** 90 115 1.26 1.74
nonperforming commercial loans in 2005 was broad-based
Nonperforming ******** 49 — .69 —
across most industry sectors within the commercial loan
Total ************ $286 $257 4.01% 3.89%
portfolio including capital goods, consumer-related sectors,
Retail leasing
30-89 days*********** $ 43 $ 59 .59% .83% manufacturing and certain segments of transportation. The
90 days or more ****** 3 6 .04 .08 transportation industry, particularly the airline industry,
Nonperforming ******** ————
continues to be economically stressed and has had difficulty
Total ************ $ 46 $ 65 .63% .91% improving cash flows from operations. While airline travel
Other retail continues to improve, the recovery of the industry has been
30-89 days*********** $206 $224 .66% .76% prolonged due to intense competition from low-cost
90 days or more ****** 70 84 .22 .29
providers, the nature of their cost structure and rising fuel
Nonperforming ******** 17 17 .06 .05
prices. The reduction in nonperforming commercial real
Total ************ $293 $325 .94% 1.10%
estate loans during 2005, was broad-based and extended
across most property types. Nonperforming retail loans
Nonperforming Assets The level of nonperforming assets
increased by $49 million from a year ago, primarily due to
represents another indicator of the potential for future
implementing a program for customers having financial
credit losses. The Company’s continued focus on improving
difficulties meeting recent minimum balance payment
the credit process and improving economic conditions since
requirements. Retail customers that meet certain criteria
mid-2003 were the primary factors in reducing the overall
may have the terms of their credit card and other loan
credit risk profile during the past several years. Recent
agreements modified to allow amortization of their balances
changes in regulation and bankruptcy laws may effect
over a period of up to 60 months. The Company has
delinquency levels in the short-term.
considered these loans in the determination of the allowance
Nonperforming assets include nonaccrual loans,
for credit losses.
restructured loans not performing in accordance with
modified terms, other real estate and other nonperforming
36 U.S. BANCORP