US Bank 2006 Annual Report Download - page 34

DEPOSITS
The composition of deposits was as follows:
2006 2005 2004 2003 2002
Percent Percent Percent Percent Percent
December 31 (Dollars in Millions) Amount of Total Amount of Total Amount of Total Amount of Total Amount of Total
Noninterest-bearing deposits******************** $ 32,128 25.7% $ 32,214 25.8% $ 30,756 25.5% $ 32,470 27.3% $ 35,106 30.4%
Interest-bearing deposits
Interest checking ************************* 24,937 20.0 23,274 18.7 23,186 19.2 21,404 18.0 17,467 15.1
Money market savings ********************* 26,220 21.0 27,934 22.4 30,478 25.2 34,025 28.6 27,753 24.0
Savings accounts ************************* 5,314 4.2 5,602 4.5 5,728 4.8 5,630 4.7 5,021 4.4
Total of savings deposits**************** 56,471 45.2 56,810 45.6 59,392 49.2 61,059 51.3 50,241 43.5
Time certificates of deposit less than $100,000***** 13,859 11.1 13,214 10.6 12,544 10.4 13,690 11.5 17,973 15.5
Time deposits greater than $100,000
Domestic******************************** 14,868 11.9 14,341 11.5 11,956 9.9 5,902 4.9 9,427 8.2
Foreign ********************************* 7,556 6.1 8,130 6.5 6,093 5.0 5,931 5.0 2,787 2.4
Total interest-bearing deposits *********** 92,754 74.3 92,495 74.2 89,985 74.5 86,582 72.7 80,428 69.6
Total deposits **************************** $124,882 100.0% $124,709 100.0% $120,741 100.0% $119,052 100.0% $115,534 100.0%
The maturity of time certificates of deposit less than $100,000 and time deposits greater than $100,000 was as follows:
Time Certificates of Time Deposits
December 31, 2006 (Dollars in Millions) Deposit Less Than $100,000 Greater Than $100,000 Total
Three months or less **************************************************** $ 3,521 $17,101 $20,622
Three months through six months ***************************************** 3,173 2,071 5,244
Six months through one year ********************************************* 3,304 1,789 5,093
2008 ***************************************************************** 2,673 915 3,588
2009 ***************************************************************** 677 274 951
2010 ***************************************************************** 210 126 336
2011 ***************************************************************** 294 145 439
Thereafter ************************************************************* 7310
Total ************************************************************** $13,859 $22,424 $36,283
Time deposits greater than $100,000 are largely viewed as addition, the Company elected to redeem $1.9 billion of
purchased funds and are managed to levels deemed junior subordinated debentures in connection with
appropriate given alternative funding sources. asset/liability and interest rate risk management decisions.
Refer to Note 12 of the Notes to Consolidated Financial
Borrowings The Company utilizes both short-term and Statements for additional information regarding long-term
long-term borrowings to fund earning asset growth in debt and the ‘‘Liquidity Risk Management’’ section for
excess of deposit growth. Short-term borrowings, which discussion of liquidity management of the Company.
include federal funds purchased, commercial paper,
securities sold under agreements to repurchase and other CORPORATE RISK PROFILE
short-term borrowings, were $26.9 billion at December 31,
Overview Managing risks is an essential part of successfully
2006, compared with $20.2 billion at December 31, 2005.
operating a financial services company. The most prominent
Short-term funding is managed within approved liquidity
risk exposures are credit, residual value, operational,
policies. The increase of $6.7 billion in short-term
interest rate, market and liquidity risk. Credit risk is the
borrowings reflected wholesale funding associated with the
risk of not collecting the interest and/or the principal
Company’s earning asset growth and asset/liability
balance of a loan or investment when it is due. Residual
management activities.
value risk is the potential reduction in the end-of-term value
Long-term debt was $37.6 billion at December 31,
of leased assets or the residual cash flows related to asset
2006, compared with $37.1 billion at December 31, 2005,
securitization and other off-balance sheet structures.
reflecting the issuances of $5.5 billion of medium-term and
Operational risk includes risks related to fraud, legal and
bank notes, $2.5 billion of convertible senior debentures,
compliance risk, processing errors, technology, breaches of
$2.5 billion of junior subordinated debentures and the
internal controls and business continuation and disaster
addition of $3.1 billion of Federal Home Loan Bank
recovery risk. Interest rate risk is the potential reduction of
(‘‘FHLB’’) advances. These additions were partially offset by
net interest income as a result of changes in interest rates,
$7.6 billion of medium-term and bank note maturities, and
which can affect the repricing of assets and liabilities
$3.4 billion of convertible senior debenture repayments. In
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Table 12