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DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOANS BALANCES
At December 31,
90 days or more past due excluding nonperforming loans 2006 2005 2004 2003 2002
COMMERCIAL
Commercial*************************************************** .06% .06% .05% .06% .14%
Lease financing************************************************ – – .02 .04 .10
Total commercial ******************************************* .05 .05 .05 .06 .14
COMMERCIAL REAL ESTATE
Commercial mortgages ***************************************** .01 – – .02 .03
Construction and development************************************ .01 – – .03 .07
Total commercial real estate ********************************** .01 – – .02 .04
RESIDENTIAL MORTGAGES************************************ .45 .32 .46 .61 .90
RETAIL
Credit card *************************************************** 1.75 1.26 1.74 1.68 2.09
Retail leasing ************************************************* .03 .04 .08 .14 .19
Other retail *************************************************** .23 .23 .30 .43 .56
Total retail ************************************************ .48 .37 .49 .58 .74
Total loans ********************************************* .24% .19% .24% .28% .37%
At December 31,
90 days or more past due including nonperforming loans 2006 2005 2004 2003 2002
Commercial ****************************************************** .57% .69% .99% 1.97% 2.35%
Commercial real estate ********************************************* .53 .55 .73 .82 .90
Residential mortgages (a)******************************************* .62 .55 .74 .91 1.44
Retail *********************************************************** .58 .52 .53 .65 .81
Total loans *************************************************** .57% .58% .75% 1.16% 1.45%
(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 3.11 percent, 4.35 percent, 5.19 percent, and 6.07 percent at December 31, 2006, 2005, 2004 and 2003, respectively. Information prior to 2003 is not available.
(‘‘GNMA’’) mortgage pools whose repayments of principal described above. All re-aging strategies must be
and interest are substantially insured by the Federal independently approved by the Company’s credit
Housing Administration or guaranteed by the Department administration function and are limited to credit card and
of Veterans Affairs are excluded from delinquency statistics. credit line accounts. Commercial loans are not subject to
In addition, under certain situations, a retail customer’s re-aging policies.
account may be re-aged to remove it from delinquent status. Accruing loans 90 days or more past due totaled
Generally, the intent of a re-aged account is to assist $349 million at December 31, 2006, compared with
customers who have recently overcome temporary financial $253 million at December 31, 2005, and $294 million at
difficulties, and have demonstrated both the ability and December 31, 2004. The increase in 90 day delinquent
willingness to resume regular payments. To qualify for re- loans from December 31, 2005, to December 31, 2006, was
aging, the account must have been open for at least one primarily driven by the impact of the bankruptcy legislation
year and cannot have been re-aged during the preceding in 2005. These loans were not included in nonperforming
365 days. An account may not be re-aged more than two assets and continue to accrue interest because they are
times in a five year period. To qualify for re-aging, the adequately secured by collateral, and/or are in the process
customer must also have made three regular minimum of collection and are reasonably expected to result in
monthly payments within the last 90 days. In addition, the repayment or restoration to current status. The ratio of
Company may re-age the retail account of a customer who 90 day delinquent loans to total loans was .24 percent at
has experienced longer-term financial difficulties and apply December 31, 2006, compared with .19 percent at
modified, concessionary terms and conditions to the December 31, 2005.
account. Such additional re-ages are limited to one in a five To monitor credit risk associated with retail loans, the
year period, must meet the qualifications for re-aging Company also monitors delinquency ratios in the various
stages of collection including nonperforming status.
36 U.S. BANCORP
Table 13