US Bank 2011 Annual Report Download - page 92

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:
Criticized
(Dollars in Millions) Pass
Special
Mention Classified (a)
Total
Criticized Total
December 31, 2011
Commercial .......................................................... $ 54,003 $1,047 $ 1,598 $ 2,645 $ 56,648
Commercial real estate .............................................. 30,733 793 4,325 5,118 35,851
Residential mortgages (b) ............................................ 35,814 19 1,249 1,268 37,082
Credit card ........................................................... 16,910 – 450 450 17,360
Other retail ........................................................... 47,665 24 418 442 48,107
Total loans, excluding covered loans ............................. 185,125 1,883 8,040 9,923 195,048
Covered loans ....................................................... 13,966 187 634 821 14,787
Total loans ........................................................ $199,091 $2,070 $ 8,674 $10,744 $209,835
Total outstanding commitments ..................................... $410,457 $3,418 $ 9,690 $13,108 $423,565
December 31, 2010
Commercial .......................................................... $ 44,595 $1,545 $ 2,258 $ 3,803 $ 48,398
Commercial real estate .............................................. 28,155 1,540 5,000 6,540 34,695
Residential mortgages (b) ............................................ 29,355 29 1,348 1,377 30,732
Credit card ........................................................... 16,262 – 541 541 16,803
Other retail ........................................................... 47,906 70 415 485 48,391
Total loans, excluding covered loans ............................. 166,273 3,184 9,562 12,746 179,019
Covered loans ....................................................... 17,073 283 686 969 18,042
Total loans ........................................................ $183,346 $3,467 $10,248 $13,715 $197,061
Total outstanding commitments ..................................... $370,031 $4,923 $11,576 $16,499 $386,530
(a) Classified rating on consumer loans primarily based on delinquency status.
(b) At December 31, 2011, $2.6 billion of GNMA loans 90 days or more past due and $2.0 billion of restructured GNMA loans whose repayments are insured by the Federal Housing
Administration or guaranteed by the Department of Veterans Affairs were classified with a pass rating, compared with $2.6 billion and $1.1 billion at December 31, 2010, respectively.
For all loan classes, a loan is considered to be impaired when, based on current events or information, it is probable the
Company will be unable to collect all amounts due per the contractual terms of the loan agreement. A summary of impaired
loans, which include all nonaccrual and TDR loans, by portfolio class was as follows:
(Dollars in Millions)
Period-end
Recorded
Investment (a)
Unpaid
Principal
Balance
Valuation
Allowance
Commitments
to Lend
Additional
Funds
December 31, 2011
Commercial ...................................................................... $ 657 $ 1,437 $ 62 $ 68
Commercial real estate .......................................................... 1,436 2,503 124 25
Residential mortgages ........................................................... 2,652 3,193 482 2
Credit card....................................................................... 584 584 219 –
Other retail ....................................................................... 188 197 57 –
Total impaired loans, excluding GNMA and covered loans ................... 5,517 7,914 944 95
Loans purchased from GNMA mortgage pools .................................. 1,265 1,265 18 –
Covered loans ................................................................... 1,170 1,642 43 49
Total .......................................................................... $7,952 $10,821 $1,005 $144
December 31, 2010
Commercial ...................................................................... $ 596 $ 1,631 $ 59 $ 80
Commercial real estate .......................................................... 1,308 2,659 118 17
Residential mortgages ........................................................... 2,440 2,877 334 –
Credit card....................................................................... 452 452 218 –
Other retail ....................................................................... 152 189 32 –
Total .......................................................................... $4,948 $ 7,808 $ 761 $ 97
(a) Substantially all loans classified as impaired at December 31, 2011 and 2010, had an associated allowance for credit losses. The total amount of interest income recognized during 2011 on
loans classified as impaired at December 31, 2011, excluding those acquired with deteriorated credit quality, was $358 million, compared to what would have been recognized at the original
contractual terms of the loans of $523 million.
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