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Deposits Total deposits were $159.3 billion at December 31,
2008, compared with $131.4 billion at December 31, 2007.
The $27.9 billion (21.2 percent) increase in total deposits
consisted of increases in all major deposit categories. The
Company assumed $13.5 billion of deposits in the 2008
acquisitions. Average total deposits increased $15.1 billion
32 U.S. BANCORP
Table 11 INVESTMENT SECURITIES
December 31, 2008 (Dollars in Millions)
Amortized
Cost
Fair
Value
Weighted-
Average
Maturity in
Years
Weighted-
Average
Yield (d)
Amortized
Cost
Fair
Value
Weighted-
Average
Maturity in
Years
Weighted-
Average
Yield (d)
Available-for-Sale Held-to-Maturity
U.S. Treasury and Agencies
Maturing in one year or less.................. $ 517 $ 529 .2 4.89% $ – $ – – –%
Maturing after one year through five years . ........ 112 114 2.7 3.43 ––––
Maturing after five years through ten years ........ 29 32 8.0 4.90 ––––
Maturing after ten years .................... 6 7 10.6 4.72 ––––
Total............................ $ 664 $ 682 1.0 4.64% $ – $ – – –%
Mortgage-Backed Securities (a)
Maturing in one year or less.................. $ 1,969 $ 1,567 .6 3.79% $ – $ – – –%
Maturing after one year through five years . ........ 25,028 24,674 2.7 4.23 ––––
Maturing after five years through ten years ........ 3,826 3,488 6.4 3.07 5 5 5.2 5.89
Maturing after ten years .................... 443 404 11.1 2.42 ––––
Total............................ $31,266 $30,133 3.2 4.04% $ 5 $ 5 5.2 5.89%
Asset-Backed Securities (a)(e)
Maturing in one year or less.................. $ 2 $ 2 .7 11.94% $ – $ – – –%
Maturing after one year through five years . ........ 505 498 3.6 4.22 ––––
Maturing after five years through ten years ........ 108 109 5.0 6.95 ––––
Maturing after ten years .................... 1 1 22.0 7.79 ––––
Total............................ $ 616 $ 610 3.8 4.73% $ – $ – – –%
Obligations of State and Political Subdivisions (b)
Maturing in one year or less.................. $ 20 $ 20 .3 6.79% $ 1 $ 1 .6 6.41%
Maturing after one year through five years . ........ 160 160 2.0 3.78 6 6 2.7 6.61
Maturing after five years through ten years ........ 347 347 6.8 6.09 15 16 7.4 7.16
Maturing after ten years .................... 6,693 5,889 22.6 6.83 16 16 17.9 5.32
Total............................ $7,220 $ 6,416 21.3 6.73% $38 $39 10.9 6.27%
Other Debt Securities
Maturing in one year or less.................. $ 434 $ 434 .1 1.14% $10 $10 1.6 3.92%
Maturing after one year through five years . ........ 44 24 2.9 4.96 ––––
Maturing after five years through ten years ........ 96 54 8.2 6.32 ––––
Maturing after ten years .................... 1,546 882 34.0 5.48 ––––
Total............................ $2,120 $ 1,394 25.2 4.62% $10 $10 1.6 3.92%
Other Investments ........................ $ 397 $ 233 43.1 5.87% $ – $ – – –%
Total investment securities (c) ................... $42,283 $39,468 7.7 4.56% $53 $54 8.5 5.78%
(a) Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities anticipating future prepayments.
(b) Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, yield to maturity if
purchased at par or a discount.
(c) The weighted-average maturity of the available-for-sale investment securities was 7.4 years at December 31, 2007, with a corresponding weighted-average yield of 5.51 percent. The
weighted-average maturity of the held-to-maturity investment securities was 8.3 years at December 31, 2007, with a corresponding weighted-average yield of 5.92 percent.
(d) Average yields are presented on a fully-taxable equivalent basis under a tax rate of 35 percent. Yields on available-for-sale and held-to-maturity securities are computed based on historical
cost balances. Average yield and maturity calculations exclude equity securities that have no stated yield or maturity.
(e) Primarily includes investments in structured investment vehicles with underlying collateral that includes a mix of various mortgage and other asset-backed securities.
December 31 (Dollars in Millions)
Amortized
Cost
Percent
of Total
Amortized
Cost
Percent
of Total
2008 2007
U.S. Treasury and agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 664 1.6% $ 407 .9%
Mortgage-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,271 73.9 31,306 70.9
Asset-backed securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 616 1.4 2,922 6.6
Obligations of state and political subdivisions. . . . . . . . . . . . . . . . . . 7,258 17.1 7,187 16.3
Other debt securities and investments . . . . . . . . . . . . . . . . . . . . . . 2,527 6.0 2,358 5.3
Total investment securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . $42,336 100.0% $44,180 100.0%