US Bank 2006 Annual Report Download - page 57

business segment. Nonperforming assets within Wholesale 2005. The decline in the mortgage banking division was
Banking were $241 million at December 31, 2006, driven by a lower average warehouse portfolio and
compared with $268 million at December 31, 2005. origination gains, adverse changes in the valuation of MSRs
Nonperforming assets as a percentage of end-of-period and related economic hedges due to changes in relative
loans were .47 percent at December 31, 2006, compared interest rates and the Company’s adoption of SFAS 156 in
with .55 percent at December 31, 2005. Refer to the early 2006.
‘‘Corporate Risk Profile’’ section for further information on Total net revenue declined $34 million (.6 percent) in
factors impacting the credit quality of the loan portfolios. 2006, compared with 2005. Net interest income, on a
taxable-equivalent basis, increased $93 million in 2006,
Consumer Banking delivers products and services through compared with 2005. The year-over-year increase in net
banking offices, telephone servicing and sales, on-line interest income was due to growth in average loans of
services, direct mail and ATMs. It encompasses community 7.7 percent and the funding benefit of deposits due to rising
banking, metropolitan banking, in-store banking, small interest rates. Partially offsetting these increases were
business banking, consumer lending, mortgage banking, reduced spreads on commercial and retail loans due to
consumer finance, workplace banking, student banking and competitive pricing within the Company’s markets. The
24-hour banking. Consumer Banking contributed increase in average loan balances reflected strong growth in
$1,793 million of the Company’s net income in 2006, an residential mortgages and more moderate growth in retail
increase of $101 million (6.0 percent), compared with 2005. loans, commercial real estate loans and commercial loans.
While the retail banking business grew net income Residential mortgages, including traditional residential
8.5 percent in 2006, the contribution of the mortgage mortgages and first-lien home equity loans, grew
banking business declined 25.6 percent, compared with
Wealth Payment Treasury and Consolidated
Management Services Corporate Support Company
Percent Percent Percent Percent
2006 2005 Change 2006 2005 Change 2006 2005 Change 2006 2005 Change
$ 505 $ 434 16.4% $ 658 $ 597 10.2% $ (169) $ 374 *% $ 6,790 $ 7,088 (4.2)%
1,446 1,208 19.7 2,578 2,183 18.1 228 47 * 6,832 6,151 11.1
– – – – – – 3 (102) * 14 (106) *
1,951 1,642 18.8 3,236 2,780 16.4 62 319 (80.6) 13,636 13,133 3.8
932 823 13.2 1,231 1,072 14.8 286 183 56.3 5,825 5,405 7.8
88 61 44.3 202 176 14.8 – (47) * 355 458 (22.5)
1,020 884 15.4 1,433 1,248 14.8 286 136 * 6,180 5,863 5.4
931 758 22.8 1,803 1,532 17.7 (224) 183 * 7,456 7,270 2.6
3 5 (40.0) 284 386 (26.4) 5 (12) * 544 666 (18.3)
928 753 23.2 1,519 1,146 32.5 (229) 195 * 6,912 6,604 4.7
339 274 23.7 552 417 32.4 (437) (218) * 2,161 2,115 2.2
$ 589 $ 479 23.0 $ 967 $ 729 32.6 $ 208 $ 413 (49.6) $ 4,751 $ 4,489 5.8
$ 1,774 $ 1,580 12.3% $ 3,800 $ 3,488 8.9% $ 133 $ 158 (15.8)% $ 45,440 $ 42,641 6.6%
686 645 6.4 – – – 65 87 (25.3) 28,760 27,964 2.8
453 397 14.1 – – – 4 6 (33.3) 21,053 18,036 16.7
2,411 2,321 3.9 8,779 7,941 10.6 44 49 (10.2) 45,348 42,969 5.5
5,324 4,943 7.7 12,579 11,429 10.1 246 300 (18.0) 140,601 131,610 6.8
1,400 877 59.6 2,426 2,029 19.6 3 – * 7,289 6,344 14.9
472 310 52.3 1,125 959 17.3 3 4 (25.0) 3,103 2,533 22.5
7,760 6,676 16.2 17,452 15,219 14.7 50,575 51,741 (2.3) 213,512 203,198 5.1
3,982 3,680 8.2 337 171 97.1 71 41 73.2 28,755 29,229 (1.6)
2,427 2,376 2.1 – – – 2 6 (66.7) 23,552 22,785 3.4
5,588 5,578 .2 19 16 18.8 30 18 66.7 32,266 35,133 (8.2)
2,916 1,462 99.5 3 3 – 2,072 2,420 (14.4) 36,016 33,854 6.4
14,913 13,096 13.9 359 190 88.9 2,175 2,485 (12.5) 120,589 121,001 (.3)
2,368 1,670 41.8 4,655 4,001 16.3 1,442 2,257 (36.1) 20,710 19,953 3.8
U.S. BANCORP 55