US Bank 2008 Annual Report Download - page 81

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At December 31, 2008, certain investment securities included in the held-to-maturity and available-for-sale categories had a fair
value that was below their amortized cost. The following table shows the gross unrealized losses and fair value of the
Company’s investments with unrealized losses, aggregated by investment category and length of time the individual securities
have been in a continuous unrealized loss position, at December 31, 2008:
(Dollars in Millions)
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Less Than 12 Months 12 Months or Greater Total
Held-to-maturity
Obligations of state and political subdivisions ................... $ 8 $ (1) $ 6 $ – $ 14 $ (1)
Total ........................................... $ 8 $ (1) $ 6 $ – $ 14 $ (1)
Available-for-sale
U.S. Treasury and agencies . ............................. $ 10 $ – $ 1 $ – $ 11 $ –
Mortgage-backed securities . ............................. 7,190 (771) 4,941 (791) 12,131 (1,562)
Asset-backed securities................................. 241 (13) 3 (1) 244 (14)
Obligations of state and political subdivisions ................... 2,280 (204) 3,739 (604) 6,019 (808)
Other securities and investments ........................... 200 (103) 965 (788) 1,165 (891)
Total ........................................... $9,921 $(1,091) $9,649 $(2,184) $19,570 $(3,275)
The Company does not consider these unrealized losses
to be other-than-temporary at December 31, 2008. The
unrealized losses within each investment category have
occurred as a result of changes in interest rates and market
credit spreads. The substantial portion of securities that have
unrealized losses are either obligations of state and political
subdivisions or non-agency securities with high investment
grade credit ratings and limited credit exposure. Unrealized
losses within other securities and investments are also the
result of a widening of market spreads since the initial
purchase date. In general, the issuers of the investment
securities are contractually prohibited from paying them off
at less than par and the Company did not have significant
purchase premiums. The Company has the intent and ability
to hold all of the securities that are in an unrealized loss
position at December 31, 2008, until their anticipated
recovery in value or maturity.
U.S. BANCORP 79