US Bank 2008 Annual Report Download - page 32

located in the Company’s primary banking region. Table 9
provides a geographic summary of residential mortgages and
retail loans outstanding as of December 31, 2008 and 2007.
The collateral for $7.1 billion of residential mortgages and
retail loans included in covered assets at December 31, 2008
was in California.
Loans Held for Sale Loans held for sale, consisting primarily
of residential mortgages and student loans to be sold in the
secondary market, were $3.2 billion at December 31, 2008,
compared with $4.8 billion at December 31, 2007. The
decrease in loans held for sale was principally a result of a
change in business strategy to discontinue selling federally
guaranteed student loans in the secondary market, and
instead, hold them in the loan portfolio.
Investment Securities The Company uses its investment
securities portfolio for several purposes. It serves as a vehicle
to manage enterprise interest rate risk, generates interest and
dividend income from the investment of excess funds
depending on loan demand, provides liquidity and is used as
collateral for public deposits and wholesale funding sources.
While it is the Company’s intent to hold its investment
securities indefinitely, the Company may take actions in
response to structural changes in the balance sheet and
related interest rate risk and to meet liquidity requirements,
among other factors.
At December 31, 2008, investment securities totaled
$39.5 billion, compared with $43.1 billion at December 31,
2007. The $3.6 billion (8.3 percent) decrease reflected
securities purchases of $6.1 billion, more than offset by
sales, maturities, prepayments, securities impairments and
unrealized losses on the available-for-sale portfolio.
At December 31, 2008, adjustable-rate financial
instruments comprised 40 percent of the investment
securities portfolio, compared with 39 percent at
30 U.S. BANCORP
Table 9 RESIDENTIAL MORTGAGES AND RETAIL LOANS BY GEOGRAPHY,
EXCLUDING COVERED ASSETS
(Dollars in Millions) Loans Percent Loans Percent
December 31, 2008 December 31, 2007
Residential Mortgages
California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,910 8.1% $ 1,426 6.2%
Colorado. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,558 6.6 1,566 6.9
Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,458 6.2 1,450 6.3
Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,221 9.4 2,292 10.1
Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,488 6.3 1,562 6.9
Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,608 6.8 1,605 7.0
Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 966 4.1 968 4.2
Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,298 5.5 1,266 5.6
Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,099 4.7 1,142 5.0
Iowa, Kansas, Nebraska, North Dakota, South Dakota . . . . . . . . . . . . . . . . . . 1,423 6.0 1,502 6.6
Arkansas, Indiana, Kentucky, Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,933 8.2 1,886 8.3
Idaho, Montana, Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 513 2.2 521 2.3
Arizona, Nevada, Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,421 6.0 1,267 5.6
Total banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,896 80.1 18,453 81.0
Outside the Company’s banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,684 19.9 4,329 19.0
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $23,580 100.0% $22,782 100.0%
Retail Loans
California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 7,705 12.7% $ 6,261 12.3%
Colorado. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,000 5.0 2,427 4.8
Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,073 5.1 2,614 5.1
Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,108 10.1 5,247 10.3
Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,858 4.7 2,522 5.0
Ohio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,729 6.2 3,276 6.5
Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,833 4.7 2,244 4.4
Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,064 5.1 2,492 4.9
Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,883 4.8 2,529 5.0
Iowa, Kansas, Nebraska, North Dakota, South Dakota . . . . . . . . . . . . . . . . . . 3,609 6.0 3,203 6.3
Arkansas, Indiana, Kentucky, Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,199 7.0 3,748 7.4
Idaho, Montana, Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,771 2.9 1,564 3.1
Arizona, Nevada, Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,843 4.7 2,231 4.4
Total banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47,675 79.0 40,358 79.5
Outside the Company’s banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,693 21.0 10,406 20.5
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,368 100.0% $50,764 100.0%