US Bank 2008 Annual Report Download - page 31

The Company classifies loans as construction until the
completion of the construction phase. Following
construction, if a loan is retained, the loan is reclassified to
the commercial mortgage category. In 2008, approximately
$327 million of construction loans were reclassified to the
commercial mortgage loan category for permanent financing
after completion of the construction phase. At December 31,
2008, $200 million of tax-exempt industrial development
loans were secured by real estate. The Company’s
commercial real estate mortgages and construction loans had
unfunded commitments of $8.0 billion and $8.9 billion at
December 31, 2008 and 2007, respectively. The Company
also finances the operations of real estate developers and
other entities with operations related to real estate. These
loans are not secured directly by real estate and are subject
to terms and conditions similar to commercial loans. These
loans were included in the commercial loan category and
totaled $2.2 billion at December 31, 2008.
Residential Mortgages Residential mortgages held in the
loan portfolio at December 31, 2008, increased $.8 billion
(3.5 percent) from December 31, 2007. The growth was
principally the result of an increase in mortgage banking
activity and higher consumer finance originations. Most
loans retained in the portfolio are to customers with prime
or near-prime credit characteristics at the date of origination.
Retail Total retail loans outstanding, which include credit
card, retail leasing, home equity and second mortgages and
other retail loans, increased $9.6 billion (18.9 percent) at
December 31, 2008, compared with December 31, 2007.
Average retail loans increased $6.7 billion (13.7 percent) in
2008, compared with 2007. The increases included higher
student loans of $4.2 billion due to the purchase of a
portfolio during 2008 and the reclassification of federally
guaranteed student loans held for sale into the held for
investment portfolio as a result of a change in business
strategy. The increases also reflected growth in home equity,
credit card and installment loans. These increases were
partially offset by a decrease in retail leasing balances.
Of the total retail loans and residential mortgages
outstanding, approximately 79.3 percent were to customers
U.S. BANCORP 29
Table 8 COMMERCIAL REAL ESTATE BY PROPERTY TYPE AND GEOGRAPHY,
EXCLUDING COVERED ASSETS
Property Type (Dollars in Millions) Loans Percent Loans Percent
December 31, 2008 December 31, 2007
Business owner occupied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $11,259 33.9% $10,340 35.4%
Commercial property
Industrial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,362 4.1 818 2.8
Office . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,056 9.2 2,424 8.3
Retail. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,052 12.2 2,979 10.2
Other commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,537 10.7 3,184 10.9
Homebuilders
Condominiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 764 2.3 1,081 3.7
Other residential . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,491 7.5 3,008 10.3
Multi-family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,882 14.7 4,001 13.7
Hotel/motel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,561 4.7 1,051 3.6
Health care facilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 0.8 321 1.1
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33,213 100.0% $29,207 100.0%
Geography
California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,975 21.0% $ 5,783 19.8%
Colorado. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,661 5.0 1,577 5.4
Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,229 3.7 1,110 3.8
Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,694 5.1 1,723 5.9
Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,528 4.6 1,577 5.4
Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,329 4.0 1,314 4.5
Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,860 5.6 1,840 6.3
Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,222 9.7 2,950 10.1
Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,495 4.5 1,460 5.0
Iowa, Kansas, Nebraska, North Dakota, South Dakota . . . . . . . . . . . . . . . . . . 2,225 6.7 2,103 7.2
Arkansas, Indiana, Kentucky, Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,528 4.6 1,402 4.8
Idaho, Montana, Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,295 3.9 1,227 4.2
Arizona, Nevada, Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,288 9.9 2,629 9.0
Total banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,329 88.3 26,695 91.4
Outside the Company’s banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,884 11.7 2,512 8.6
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33,213 100.0% $29,207 100.0%