US Bank 2009 Annual Report Download - page 44

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assets) at December 31, 2009, compared with 1.42 percent
(1.14 percent excluding covered assets) at December 31,
2008, and .45 percent at December 31, 2007. Excluding
covered assets, the $1.9 billion increase in nonperforming
assets was driven by stress in residential home construction
and related industries, deterioration in the residential
mortgage portfolio, as well as an increase in foreclosed
properties and the impact of the economic slowdown on
commercial and consumer customers.
Included in nonperforming loans were restructured
loans that are not accruing interest of $492 million at
December 31, 2009, compared with $151 million at
December 31, 2008.
Other real estate, excluding covered assets, was
$437 million at December 31, 2009, compared with
$190 million at December 31, 2008, and was primarily
related to foreclosed properties that previously secured loan
balances. The increase in other real estate assets reflected
continuing stress in residential construction and related
supplier industries.
The following table provides an analysis of other real estate
owned (“OREO”), excluding covered assets, as a percent of
their related loan balances, including geographical location
detail for residential (residential mortgage, home equity and
second mortgage) and commercial (commercial and
commercial real estate) loan balances:
December 31,
(Dollars in Millions) 2009 2008 2009 2008
Amount
As a Percent of Ending
Loan Balances
Residential
Minnesota . . . . . . . . $ 27 $ 18 .49% .34%
California . . . . . . . . . 15 13 .27 .29
Illinois . . . . . . . . . . . 8 5 .29 .21
Michigan . . . . . . . . . 8 12 1.65 2.39
Colorado . . . . . . . . . 7 6 .20 .19
All other states . . . . . 108 91 .39 .34
Total residential . . . 173 145 .38 .34
Commercial
Nevada . . . . . . . . . . 73 – 3.57 –
California . . . . . . . . . 43 9 .30 .07
Oregon . . . . . . . . . . 28 3 .81 .08
Colorado . . . . . . . . . 15 – .43 –
Utah............ 14 – .80 –
All other states . . . . . 91 33 .16 .05
Total commercial . . 264 45 .32 .05
Total OREO . . . . . $437 $190 .22% .10%
42 U.S. BANCORP