US Bank 2010 Annual Report Download - page 24

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$12.0 billion related to deposits assumed in the FBOP
acquisition. Excluding deposits from acquisitions, 2010
average total deposits increased $6.8 billion (4.1 percent)
over 2009. Average noninterest-bearing deposits in 2010
were $2.3 billion (6.1 percent) higher than 2009, primarily
due to growth in Consumer and Small Business Banking and
Wholesale Banking and Commercial Real Estate balances.
Average total savings deposits were $19.0 billion
(23.2 percent) higher in 2010, compared with 2009, due to
an increase in savings account balances of $7.8 billion
(59.5 percent) resulting from continued strong participation
in a product offered by Consumer and Small Business
Banking, higher money market savings balances of
$7.9 billion (24.8 percent) from higher corporate trust and
Consumer and Small Business Banking balances, and higher
interest checking account balances of $3.3 billion
(9.0 percent) resulting from increases in Consumer and
Small Business Banking and institutional trust accounts.
Average time certificates of deposit less than $100,000 were
lower in 2010 by $1.3 billion (7.0 percent), compared with
2009, reflecting the net impact of balances assumed in the
FBOP acquisition, more than offset by expected run-off of
balances assumed in the PFF and Downey acquisitions and
lower renewals given the current interest rate environment.
Average time deposits greater than $100,000 were
$3.1 billion (10.3 percent) lower in 2010, compared with
2009, reflecting the net impact of acquisitions, more than
offset by a decrease in required overall wholesale funding.
Time deposits greater than $100,000 are managed as an
alternative to other funding sources, such as wholesale
borrowing, based largely on relative pricing.
The $.8 billion (10.8 percent) increase in net interest
income in 2009, compared with 2008, was attributable to
growth in average earning assets and lower cost core deposit
22 U.S. BANCORP
Table 3 NET INTEREST INCOME — CHANGES DUE TO RATE AND VOLUME (a)
(Dollars in Millions) Volume Yield/Rate Total Volume Yield/Rate Total
2010 v 2009 2009 v 2008
Increase (Decrease) in
Interest Income
Investment securities . . . . . . . . . . . . . . . . . . $ 205 $(212) $ (7) $ (2) $ (388) $ (390)
Loans held for sale . . . . . . . . . . . . . . . . . . . (10) (21) (31) 111 (61) 50
Loans
Commercial loans . . . . . . . . . . . . . . . . . . (228) 131 (97) (74) (554) (628)
Commercial real estate . . . . . . . . . . . . . . . 22 55 77 150 (468) (318)
Residential mortgage . . . . . . . . . . . . . . . . 182 (126) 56 75 (114) (39)
Retail loans . . . . . . . . . . . . . . . . . . . . . . 137 10 147 480 (489) (9)
Total loans, excluding covered loans . . . . . . 113 70 183 631 (1,625) (994)
Covered loans . . . . . . . . . . . . . . . . . . . . 327 80 407 534 (17) 517
Total loans . . . . . . . . . . . . . . . . . . . . . 440 150 590 1,165 (1,642) (477)
Other earning assets . . . . . . . . . . . . . . . . . . 89 (14) 75 7 (72) (65)
Total earning assets . . . . . . . . . . . . . . . 724 (97) 627 1,281 (2,163) (882)
Interest Expense
Interest-bearing deposits
Interest checking . . . . . . . . . . . . . . . . . . . 7 (8) (1) 46 (219) (173)
Money market accounts . . . . . . . . . . . . . . 36 (49) (13) 69 (254) (185)
Savings accounts . . . . . . . . . . . . . . . . . . 42 8 50 24 27 51
Time certificates of deposit less than
$100,000 . . . . . . . . . . . . . . . . . . . . . . (32) (126) (158) 149 (160) (11)
Time deposits greater than $100,000 . . . . . (46) (106) (152) (5) (356) (361)
Total interest-bearing deposits . . . . . . . . 7 (281) (274) 283 (962) (679)
Short-term borrowings . . . . . . . . . . . . . . . . . 86 (81) 5 (272) (321) (593)
Long-term debt . . . . . . . . . . . . . . . . . . . . . (199) 23 (176) (121) (339) (460)
Total interest-bearing liabilities . . . . . . . . . (106) (339) (445) (110) (1,622) (1,732)
Increase (decrease) in net interest income . . . . $ 830 $ 242 $1,072 $1,391 $ (541) $ 850
(a) This table shows the components of the change in net interest income by volume and rate on a taxable-equivalent basis utilizing a tax rate of 35 percent. This table does
not take into account the level of noninterest-bearing funding, nor does it fully reflect changes in the mix of assets and liabilities. The change in interest not solely due to
changes in volume or rates has been allocated on a pro-rata basis to volume and yield/rate.