US Bank 2007 Annual Report Download - page 29

Download and view the complete annual report

Please find page 29 of the 2007 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 126

  • 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

of income tax expense of $94 million related to the
resolution of income tax examinations. The Company
anticipates that its effective tax rate for the foreseeable
future will remain stable relative to the full year rate for
2007 of 30.3 percent of pretax earnings.
For further information on income taxes, refer to
Note 18 of the Notes to Consolidated Financial Statements.
BALANCE SHEET ANALYSIS
Average earning assets were $194.7 billion in 2007,
compared with $186.2 billion in 2006. The increase in
average earning assets of $8.5 billion (4.5 percent) was due
to growth in total average loans (4.8 percent), investment
securities (3.4 percent) and loans held-for-sale (17.3 percent),
partially offset by slightly lower trading and other earning
assets. The change in total average earning assets was
principally funded by increases in wholesale funding.
For average balance information, refer to Consolidated
Daily Average Balance Sheet and Related Yields and Rates
on pages 112 and 113.
Loans The Company’s loan portfolio was $153.8 billion at
December 31, 2007, an increase of $10.2 billion (7.1 percent)
from December 31, 2006. The increase was driven by
growth in all major loan categories with strong growth in
commercial loans (10.6 percent), retail loans (6.9 percent),
and residential mortgages (7.0 percent) and more moderate
U.S. BANCORP 27
Table 6 LOAN PORTFOLIO DISTRIBUTION
At December 31 (Dollars in Millions) Amount
Percent
of Total Amount
Percent
of Total Amount
Percent
of Total Amount
Percent
of Total Amount
Percent
of Total
2007 2006 2005 2004 2003
Commercial
Commercial . . . . . . . . . . . . . . $ 44,832 29.1% $ 40,640 28.3% $ 37,844 27.7% $ 35,210 28.2% $ 33,536 28.7%
Lease financing. . . . . . . . . . . . 6,242 4.1 5,550 3.9 5,098 3.7 4,963 4.0 4,990 4.3
Total commercial . . . . . . . . 51,074 33.2 46,190 32.2 42,942 31.4 40,173 32.2 38,526 33.0
Commercial Real Estate
Commercial mortgages . . . . . . 20,146 13.1 19,711 13.7 20,272 14.9 20,315 16.3 20,624 17.6
Construction and development. . 9,061 5.9 8,934 6.2 8,191 6.0 7,270 5.8 6,618 5.7
Total commercial real estate . . 29,207 19.0 28,645 19.9 28,463 20.9 27,585 22.1 27,242 23.3
Residential Mortgages
Residential mortgages . . . . . . . 17,099 11.1 15,316 10.7 14,538 10.7 9,722 7.8 7,332 6.3
Home equity loans, first liens . . . 5,683 3.7 5,969 4.1 6,192 4.5 5,645 4.5 6,125 5.2
Total residential mortgages . . 22,782 14.8 21,285 14.8 20,730 15.2 15,367 12.3 13,457 11.5
Retail
Credit card . . . . . . . . . . . . . . . 10,956 7.1 8,670 6.0 7,137 5.2 6,603 5.3 5,933 5.1
Retail leasing . . . . . . . . . . . . . 5,969 3.9 6,960 4.9 7,338 5.4 7,166 5.7 6,029 5.2
Home equity and second
mortgages . . . . . . . . . . . . . 16,441 10.7 15,523 10.8 14,979 11.0 14,851 11.9 13,210 11.3
Other retail
Revolving credit . . . . . . . . . 2,731 1.8 2,563 1.8 2,504 1.8 2,541 2.0 2,540 2.2
Installment. . . . . . . . . . . . . 5,246 3.4 4,478 3.1 3,582 2.6 2,767 2.2 2,380 2.0
Automobile . . . . . . . . . . . . 8,970 5.8 8,693 6.1 8,112 6.0 7,419 5.9 7,165 6.1
Student . . . . . . . . . . . . . . . 451 .3 590 .4 675 .5 469 .4 329 .3
Total other retail . . . . . . . 17,398 11.3 16,324 11.4 14,873 10.9 13,196 10.5 12,414 10.6
Total retail . . . . . . . . . . . . . 50,764 33.0 47,477 33.1 44,327 32.5 41,816 33.4 37,586 32.2
Total loans . . . . . . . . . . $153,827 100.0% $143,597 100.0% $136,462 100.0% $124,941 100.0% $116,811 100.0%
Table 7 SELECTED LOAN MATURITY DISTRIBUTION
December 31, 2007 (Dollars in Millions)
One Year
or Less
Over One
Through
Five Years
Over Five
Years Total
Commercial. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,999 $25,092 $ 3,983 $ 51,074
Commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,308 13,182 6,717 29,207
Residential mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 899 2,540 19,343 22,782
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,661 18,607 13,496 50,764
Total loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $50,867 $59,421 $43,539 $153,827
Total of loans due after one year with
Predetermined interest rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52,001
Floating interest rates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,959