US Bank 2009 Annual Report Download - page 118

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The following table summarizes losses recognized related to nonrecurring fair value measurements of individual assets or
portfolios for the year ended December 31:
(Dollars in Millions) 2009 2008
Loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2 $ 7
Loans (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 100
Other real estate owned (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 71
Other intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1
(a) Represents write-downs of loans which are based on the appraised value of the collateral, excluding loans fully charged-off.
(b) Represents related losses of foreclosed properties that were measured at fair value subsequent to their initial acquisition.
Fair Value Option
The following table summarizes the differences between the aggregate fair value carrying amount of MLHFS for which the fair
value option has been elected and the aggregate unpaid principal amount that the Company is contractually obligated to receive
at maturity:
December 31 (Dollars in Millions)
Fair Value
Carrying
Amount
Aggregate
Unpaid
Principal
Excess of
Carrying
Amount Over
(Under) Unpaid
Principal
Fair Value
Carrying
Amount
Aggregate
Unpaid
Principal
Excess of
Carrying
Amount Over
(Under) Unpaid
Principal
2009 2008
Total loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,327 $4,264 $63 $2,728 $2,649 $79
Loans 90 days or more past due . . . . . . . . . . . . . . . . . . . . . 23 30 (7) 11 13 (2)
Disclosures about Fair Value of Financial Instruments The following table summarizes the estimated fair value for financial
instruments as of December 31, 2009 and 2008, and includes financial instruments that are not accounted for at fair value. In
accordance with disclosure guidance related to fair values of financial instruments, the Company did not include assets and
liabilities that are not financial instruments, such as the value of goodwill, long-term relationships with deposit, credit card,
merchant processing and trust customers, other purchased intangibles, premises and equipment, deferred taxes and other
liabilities.
The estimated fair values of the Company’s financial instruments are shown in the table below.
December 31 (Dollars in Millions)
Carrying
Amount
Fair
Value
Carrying
Amount
Fair
Value
2009 2008
Financial Assets
Cash and due from banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,206 $ 6,206 $ 6,859 $ 6,859
Investment securities held-to-maturity . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 48 53 54
Mortgages held for sale (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 29 14 14
Other loans held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 416 416 468 470
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 190,329 184,810 181,715 180,311
Financial Liabilities
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183,242 183,504 159,350 161,196
Short-term borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,312 31,674 33,983 34,333
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,580 32,808 38,359 38,135
(a) Balance excludes mortgages held for sale for which the fair value option under applicable accounting guidance was elected.
The fair value of unfunded commitments, standby letters of credit and other guarantees is approximately equal to their
carrying value. The carrying value of unfunded commitments and standby letters of credit was $356 million and $238 million
at December 31, 2009 and 2008, respectively. The carrying value of other guarantees was $285 million and $302 million at
December 31, 2009 and 2008, respectively.
116 U.S. BANCORP