US Bank 2006 Annual Report Download - page 30

Download and view the complete annual report

Please find page 30 of the 2006 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.

Page out of 130

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130

COMMERCIAL REAL ESTATE BY PROPERTY TYPE AND GEOGRAPHY
December 31, 2006 December 31, 2005
PROPERTY TYPE (Dollars in Millions) Loans Percent Loans Percent
Business owner occupied******************************************************** $10,027 35.0% $ 9,221 32.4%
Commercial property
Industrial****************************************************************** 939 3.3 1,025 3.6
Office ******************************************************************** 2,226 7.8 2,306 8.1
Retail********************************************************************* 2,732 9.5 3,558 12.5
Other********************************************************************* 2,745 9.6 2,704 9.5
Homebuilders
Condominiums ************************************************************* 1,117 3.9 911 3.2
Other********************************************************************* 3,440 12.0 2,988 10.5
Multi-family ******************************************************************* 3,850 13.4 3,843 13.5
Hotel/motel ******************************************************************* 1,126 3.9 1,423 5.0
Health care facilities ************************************************************ 443 1.6 484 1.7
Total ********************************************************************* $28,645 100.0% $28,463 100.0%
GEOGRAPHY
California ********************************************************************* $ 6,044 21.1% $ 5,806 20.4%
Colorado ********************************************************************* 1,404 4.9 1,366 4.8
Illinois *********************************************************************** 1,060 3.7 1,025 3.6
Minnesota ******************************************************************** 1,833 6.4 1,765 6.2
Missouri ********************************************************************* 1,461 5.1 1,452 5.1
Ohio************************************************************************* 1,375 4.8 1,537 5.4
Oregon ********************************************************************** 1,747 6.1 1,736 6.1
Washington ******************************************************************* 3,065 10.7 2,846 10.0
Wisconsin ******************************************************************** 1,547 5.4 1,679 5.9
Iowa, Kansas, Nebraska, North Dakota, South Dakota ********************************* 1,948 6.8 1,935 6.8
Arkansas, Indiana, Kentucky, Tennessee ******************************************** 1,404 4.9 1,565 5.5
Idaho, Montana, Wyoming ******************************************************* 1,060 3.7 1,110 3.9
Arizona, Nevada, Utah ********************************************************** 2,406 8.4 2,362 8.3
Total banking region********************************************************* 26,354 92.0 26,184 92.0
Outside the Company’s banking region ********************************************* 2,291 8.0 2,279 8.0
Total ********************************************************************* $28,645 100.0% $28,463 100.0%
(.6 percent) at December 31, 2006, compared with reclassified to the commercial mortgage loan category in
December 31, 2005. Construction and development loans 2006. At December 31, 2006, $233 million of tax-exempt
increased $.7 billion (9.1 percent) despite developers industrial development loans were secured by real estate.
beginning to slow homebuilding and managing their The Company’s commercial real estate mortgages and
inventories of residential homes in response to softening construction loans had unfunded commitments of
market conditions. Additionally, the Company made a $8.9 billion at December 31, 2006, compared with
decision to reduce financing activities for the construction of $9.8 billion at December 31, 2005. The Company also
condominiums and similar housing projects. Commercial finances the operations of real estate developers and other
mortgages outstanding decreased $.6 billion (2.8 percent) entities with operations related to real estate. These loans
reflecting reductions in traditional commercial real estate are not secured directly by real estate and are subject to
mortgages due to customer refinancing activities, given terms and conditions similar to commercial loans. These
liquidity available in the financial markets. Average loans were included in the commercial loan category and
commercial real estate loans increased $.8 billion totaled $1.7 billion at December 31, 2006.
(2.8 percent) in 2006, compared with 2005, primarily Residential Mortgages Residential mortgages held in the
driven by growth in construction and development loans. loan portfolio at December 31, 2006, increased $.6 billion
Table 8 provides a summary of commercial real estate by (2.7 percent) from December 31, 2005. The growth was the
property type and geographical locations. result of an increase in consumer finance originations,
The Company maintains the real estate construction partially offset by the Company’s decision in early 2006 to
designation until the completion of the construction phase resume packaging and selling a majority of its residential
and, if retained, the loan is reclassified to the commercial mortgage loan production in the secondary markets.
mortgage category. Approximately $161 million of Average residential mortgages increased $3.0 billion
construction loans were permanently financed and
28 U.S. BANCORP
Table 8