US Bank 2012 Annual Report Download - page 47

The following tables provide further information on
residential mortgages and home equity and second mortgages
as a percent of ending loan balances by borrower type at
December 31:
Residential mortgages (a) 2012 2011
Prime Borrowers
30-89 days .................................... .65% .92%
90 days or more ............................... .58 .90
Nonperforming ................................ 1.36 1.67
Total ........................................ 2.59% 3.49%
Sub-Prime Borrowers
30-89 days .................................... 6.41% 6.70%
90 days or more ............................... 3.89 4.91
Nonperforming ................................ 9.60 7.99
Total ........................................ 19.90% 19.60%
Other Borrowers
30-89 days .................................... .97% .92%
90 days or more ............................... .97 1.07
Nonperforming ................................ 1.83 1.07
Total ........................................ 3.77% 3.06%
(a) Excludes delinquent and nonperforming information on loans purchased from GNMA
mortgage pools as their repayments are primarily insured by the Federal Housing
Administration or guaranteed by the Department of Veterans Affairs.
Home equity and second mortgages 2012 2011
Prime Borrowers
30-89 days .................................... .64% .78%
90 days or more ............................... .28 .66
Nonperforming ................................ 1.03 .21
Total ........................................ 1.95% 1.65%
Sub-Prime Borrowers
30-89 days .................................... 4.92% 5.11%
90 days or more ............................... 1.36 2.89
Nonperforming ................................ 4.10 .22
Total ........................................ 10.38% 8.22%
Other Borrowers
30-89 days .................................... 1.41% 1.43%
90 days or more ............................... .47 1.43
Nonperforming ................................ 2.35 .47
Total ........................................ 4.23% 3.33%
The following table provides summary delinquency
information for covered loans:
Amount
As a Percent of Ending
Loan Balances
At December 31
(Dollars in Millions) 2012 2011 2012 2011
30-89 days .............. $ 359 $ 362 3.18% 2.45%
90 days or more ......... 663 910 5.86 6.15
Nonperforming .......... 386 926 3.41 6.26
Total .................. $1,408 $2,198 12.45% 14.86%
Restructured Loans In certain circumstances, the Company
may modify the terms of a loan to maximize the collection of
amounts due when a borrower is experiencing financial
difficulties or is expected to experience difficulties in the near-
term. In most cases the modification is either a concessionary
reduction in interest rate, extension of the maturity date or
reduction in the principal balance that would otherwise not be
considered.
Troubled Debt Restructurings Concessionary modifications are
classified as TDRs unless the modification results in only an
insignificant delay in the payments to be received. TDRs
accrue interest if the borrower complies with the revised terms
and conditions and has demonstrated repayment performance
at a level commensurate with the modified terms over several
payment cycles. Loans classified as TDRs are considered
impaired loans for reporting and measurement purposes.
The Company continues to work with customers to
modify loans for borrowers who are experiencing financial
difficulties, including those acquired through FDIC-assisted
acquisitions. Many of the Company’s TDRs are determined
on a case-by-case basis in connection with ongoing loan
collection processes. The modifications vary within each of
the Company’s loan classes. Commercial lending segment
TDRs generally include extensions of the maturity date and
may be accompanied by an increase or decrease to the interest
rate. The Company may also work with the borrower to make
other changes to the loan to mitigate losses, such as obtaining
additional collateral and/or guarantees to support the loan.
The Company has also implemented certain residential
mortgage loan restructuring programs that may result in
TDRs. The Company participates in the U.S. Department of
the Treasury Home Affordable Modification Program
(“HAMP”). HAMP gives qualifying homeowners an
opportunity to permanently modify their loan and achieve
more affordable monthly payments, with the U.S. Department
of the Treasury compensating the Company for a portion of
the reduction in monthly amounts due from borrowers
participating in this program. The Company also modifies
residential mortgage loans under Federal Housing
Administration, Department of Veterans Affairs, and other
internal programs. Under these programs, the Company
provides concessions to qualifying borrowers experiencing
financial difficulties. The concessions may include adjustments
to interest rates, conversion of adjustable rates to fixed rates,
extensions of maturity dates or deferrals of payments,
capitalization of accrued interest and/or outstanding advances,
or in limited situations, partial forgiveness of loan principal.
In most instances, participation in residential mortgage loan
restructuring programs requires the customer to complete a
short-term trial period. A permanent loan modification is
contingent on the customer successfully completing the trial
period arrangement and the loan documents are not modified
until that time. The Company reports loans in a trial period
arrangement as TDRs.
Credit card and other retail loan modifications are
generally part of distinct restructuring programs. The
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