US Bank 2009 Annual Report Download - page 35

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During 2009, the Company recognized impairment
charges in earnings related to perpetual preferred securities,
primarily issued by financial institutions, of $223 million.
The net unrealized loss for the Company’s remaining
investments in perpetual preferred securities was $60 million
at December 31, 2009.
There is limited market activity for the structured
investment and non-agency mortgage-backed securities held
by the Company. As a result, the Company estimates the fair
value of these securities using estimates of expected cash
flows, discount rates and management’s assessment of
various market factors, which are judgmental in nature. The
Company recorded $363 million of impairment charges in
earnings on non-agency mortgage-backed and structured
investment related securities during 2009. These impairment
charges were due to changes in expected cash flows resulting
from the continuing decline in housing prices and an
increase in foreclosure activity. Further adverse changes in
market conditions may result in additional impairment
charges in future periods.
In 2008, the Company recorded $788 million of
impairment charges on structured investment and related
securities, and $232 million of impairment charges on other
investment securities, including government-sponsored
enterprises, preferred stock and non-agency mortgage-
backed securities.
Refer to Notes 5 and 21 in the Notes to Consolidated
Financial Statements for further information on investment
securities.
Deposits Total deposits were $183.2 billion at December 31,
2009, compared with $159.4 billion at December 31, 2008.
The $23.9 billion (15.0 percent) increase in total deposits
reflected organic growth in core deposits and $15.4 billion
of deposits assumed in the FBOP acquisition. Average total
U.S. BANCORP 33
Table 12 Deposits
The composition of deposits was as follows:
December 31 (Dollars in Millions) Amount
Percent
of Total Amount
Percent
of Total Amount
Percent
of Total Amount
Percent
of Total Amount
Percent
of Total
2009 2008 2007 2006 2005
Noninterest-bearing deposits . . . . . $ 38,186 20.8% $ 37,494 23.5% $ 33,334 25.4% $ 32,128 25.7% $ 32,214 25.8%
Interest-bearing deposits
Interest checking . . . . . . . . . . . 38,436 21.0 32,254 20.2 28,996 22.1 24,937 20.0 23,274 18.7
Money market savings . . . . . . . 40,848 22.3 26,137 16.4 24,301 18.5 26,220 21.0 27,934 22.4
Savings accounts . . . . . . . . . . . 16,885 9.2 9,070 5.7 5,001 3.8 5,314 4.2 5,602 4.5
Total of savings deposits . . . . 96,169 52.5 67,461 42.3 58,298 44.4 56,471 45.2 56,810 45.6
Time certificates of deposit less
than $100,000 . . . . . . . . . . . . . 18,966 10.4 18,425 11.7 14,160 10.8 13,859 11.1 13,214 10.6
Time deposits greater than
$100,000
Domestic . . . . . . . . . . . . . . . . 16,858 9.2 20,791 13.0 15,351 11.7 14,868 11.9 14,341 11.5
Foreign . . . . . . . . . . . . . . . . . . 13,063 7.1 15,179 9.5 10,302 7.8 7,556 6.1 8,130 6.5
Total interest-bearing
deposits . . . . . . . . . . . . . . 145,056 79.2 121,856 76.5 98,111 74.6 92,754 74.3 92,495 74.2
Total deposits . . . . . . . . . . . . . $183,242 100.0% $159,350 100.0% $131,445 100.0% $124,882 100.0% $124,709 100.0%
The maturity of time deposits was as follows:
December 31, 2009 (Dollars in Millions)
Certificates
Less Than $100,000
Time Deposits
Greater Than $100,000 Total
Three months or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,573 $14,229 $18,802
Three months through six months . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,867 3,665 7,532
Six months through one year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,422 3,079 7,501
2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,426 1,276 3,702
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 833 466 1,299
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,390 1,320 2,710
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,443 1,177 2,620
Thereafter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4,709 4,721
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18,966 $29,921 $48,887