US Bank 2006 Annual Report Download - page 77

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The following table shows the gross unrealized losses and fair value of the Company’s investments with unrealized losses that
are not deemed to be other-than-temporarily impaired based on the period the investments have been in a continuous
unrealized loss position at December 31, 2006:
Less Than 12 Months 12 Months or Greater Total
Fair Unrealized Fair Unrealized Fair Unrealized
(Dollars in Millions) Value Losses Value Losses Value Losses
HELD-TO-MATURITY
Obligations of state and political subdivisions ************************************ $1 $– $3 $– $4 $–
Total ***************************************************************** $1 $– $3 $– $4 $–
AVAILABLE-FOR-SALE
U.S. Treasury and agencies*************************************************** $ 58 $ – $ 333 $ (6) $ 391 $ (6)
Mortgage-backed securities*************************************************** 2,017 (21) 26,369 (760) 28,386 (781)
Asset-backed securities ****************************************************** –– 7– 7–
Obligations of state and political subdivisions ************************************ 689 (5) 30 (1) 719 (6)
Other securities and investments ********************************************** 150 (1) 312 (5) 462 (6)
Total ***************************************************************** $2,914 $(27) $27,051 $(772) $29,965 $(799)
LOANS AND ALLOWANCE FOR CREDIT LOSSES
The composition of the loan portfolio at December 31 was as follows:
(Dollars in Millions) 2006 2005
COMMERCIAL
Commercial*********************************************************************************************** $ 40,640 $ 37,844
Lease financing******************************************************************************************** 5,550 5,098
Total commercial *************************************************************************************** 46,190 42,942
COMMERCIAL REAL ESTATE
Commercial mortgages ************************************************************************************* 19,711 20,272
Construction and development******************************************************************************** 8,934 8,191
Total commercial real estate ****************************************************************************** 28,645 28,463
RESIDENTIAL MORTGAGES
Residential mortgages ************************************************************************************** 15,316 14,538
Home equity loans, first liens ******************************************************************************** 5,969 6,192
Total residential mortgages ******************************************************************************* 21,285 20,730
RETAIL
Credit card *********************************************************************************************** 8,670 7,137
Retail leasing ********************************************************************************************* 6,960 7,338
Home equity and second mortgages *************************************************************************** 15,523 14,979
Other retail
Revolving credit **************************************************************************************** 2,563 2,504
Installment ******************************************************************************************** 4,478 3,582
Automobile ******************************************************************************************** 8,693 8,112
Student*********************************************************************************************** 590 675
Total other retail ************************************************************************************ 16,324 14,873
Total retail ******************************************************************************************** 47,477 44,327
Total loans ***************************************************************************************** $143,597 $136,462
Loans are presented net of unearned interest and The Company primarily lends to borrowers in the
deferred fees and costs, which amounted to $1.3 billion at 24 states in which it has banking offices. Collateral for
December 31, 2006 and 2005. The Company had loans of commercial loans may include marketable securities,
$44.8 billion at December 31, 2006, and $44.1 billion at accounts receivable, inventory and equipment. For details of
December 31, 2005, pledged at the Federal Home the Company’s commercial portfolio by industry group and
Loan Bank. Loans of $16.2 billion at December 31, 2006, geography as of December 31, 2006 and 2005, see Table 7
and $18.1 billion at December 31, 2005, were pledged at included in Management’s Discussion and Analysis which is
the Federal Reserve Bank.
U.S. BANCORP 75
Note 5