US Bank 2012 Annual Report Download - page 32

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Commercial Commercial loans, including lease financing,
increased $9.6 billion (16.9 percent) as of December 31, 2012,
compared with December 31, 2011. Average commercial
loans increased $9.2 billion (17.9 percent) in 2012, compared
with 2011. The growth was primarily driven by higher
demand from new and existing customers. Table 7 provides a
summary of commercial loans by industry and geographical
locations.
CommercialRealEstateThe Company’s portfolio of
commercial real estate loans, which includes commercial
mortgages and construction and development loans, increased
$1.1 billion (3.1 percent) at December 31, 2012, compared
with December 31, 2011. Average commercial real estate
loans increased $991 million (2.8 percent) in 2012, compared
with 2011. The increases reflected higher demand from new
and existing customers. Table 8 provides a summary of
commercial real estate loans by property type and
geographical location. The collateral for $1.7 billion of
commercial real estate loans included in covered loans at
December 31, 2012 was in California, compared with
$2.5 billion at December 31, 2011.
The Company classifies loans as construction loans until
the completion of the construction phase. Following
construction, if permanent financing is provided by the
Company, the loan is reclassified to the commercial mortgage
category. In 2012, approximately $978 million of
construction loans were reclassified to the commercial
mortgage category for bridge financing after completion of the
construction phase. At December 31, 2012 and 2011,
$225 million and $289 million, respectively, of tax-exempt
industrial development loans were secured by real estate. The
Company’s commercial mortgage and construction and
development loans had unfunded commitments of $9.0 billion
and $7.0 billion at December 31, 2012 and 2011, respectively.
The Company also finances the operations of real estate
developers and other entities with operations related to real
estate. These loans are not secured directly by real estate but
are subject to terms and conditions similar to commercial
loans. These loans were included in the commercial loan
category and totaled $3.1 billion and $1.9 billion at
December 31, 2012 and 2011, respectively.
TABLE 6 Loan Portfolio Distribution
2012 2011 2010 2009 2008
At 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
Commercial
Commercial ........................... $ 60,742 27.2% $ 50,734 24.2% $ 42,272 21.5% $ 42,255 21.7% $ 49,759 26.9%
Lease financing ....................... 5,481 2.5 5,914 2.8 6,126 3.1 6,537 3.4 6,859 3.7
Total commercial ................... 66,223 29.7 56,648 27.0 48,398 24.6 48,792 25.1 56,618 30.6
Commercial Real Estate
Commercial mortgages ............... 31,005 13.9 29,664 14.1 27,254 13.8 25,306 13.0 23,434 12.7
Construction and development ....... 5,948 2.6 6,187 3.0 7,441 3.8 8,787 4.5 9,779 5.3
Total commercial real estate ....... 36,953 16.5 35,851 17.1 34,695 17.6 34,093 17.5 33,213 18.0
Residential Mortgages
Residential mortgages ................ 32,648 14.6 28,669 13.7 24,315 12.3 20,581 10.6 18,232 9.9
Home equity loans, first liens ......... 11,370 5.1 8,413 4.0 6,417 3.3 5,475 2.8 5,348 2.9
Total residential mortgages ........ 44,018 19.7 37,082 17.7 30,732 15.6 26,056 13.4 23,580 12.8
Credit Card ............................ 17,115 7.7 17,360 8.3 16,803 8.5 16,814 8.6 13,520 7.3
Other Retail
Retail leasing ......................... 5,419 2.4 5,118 2.4 4,569 2.3 4,568 2.3 5,126 2.8
Home equity and second
mortgages.......................... 16,726 7.5 18,131 8.6 18,940 9.6 19,439 10.0 19,177 10.3
Revolving credit....................... 3,332 1.5 3,344 1.6 3,472 1.8 3,506 1.8 3,205 1.7
Installment ............................ 5,463 2.4 5,348 2.6 5,459 2.8 5,455 2.8 5,525 3.0
Automobile ........................... 12,593 5.6 11,508 5.5 10,897 5.5 9,544 4.9 9,212 5.0
Student ............................... 4,179 1.9 4,658 2.2 5,054 2.5 4,629 2.4 4,603 2.5
Total other retail .................... 47,712 21.3 48,107 22.9 48,391 24.5 47,141 24.2 46,848 25.3
Total loans, excluding covered
loans .......................... 212,021 94.9 195,048 93.0 179,019 90.8 172,896 88.8 173,779 94.0
Covered Loans......................... 11,308 5.1 14,787 7.0 18,042 9.2 21,859 11.2 11,176 6.0
Total loans .................... $223,329 100.0% $209,835 100.0% $197,061 100.0% $194,755 100.0% $184,955 100.0%
28 U.S. BANCORP