US Bank 2013 Annual Report Download - page 30

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Commercial Commercial loans, including lease financing,
increased $3.8 billion (5.8 percent) as of December 31,
2013, compared with December 31, 2012. Average
commercial loans increased $6.4 billion (10.6 percent) in
2013, compared with 2012. 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.
Commercial Real Estate The Company’s portfolio of
commercial real estate loans, which includes commercial
mortgages and construction and development loans,
increased $2.9 billion (7.9 percent) at December 31, 2013,
compared with December 31, 2012. Average commercial
real estate loans increased $1.7 billion (4.7 percent) in 2013,
compared with 2012. 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 $726 million of
commercial real estate loans included in covered loans at
December 31, 2013 was in California, compared with
$1.7 billion at December 31, 2012.
The Company reclassifies construction loans to the
commercial mortgage category if permanent financing is
provided by the Company. In 2013, approximately $404 million
of construction loans were reclassified to the commercial
mortgage category. At December 31, 2013 and 2012,
$282 million and $225 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 $10.2 billion
and $9.0 billion at December 31, 2013 and 2012, 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 $3.4 billion and $3.1 billion at
December 31, 2013 and 2012, respectively.
TABLE 6 Loan Portfolio Distribution
2013 2012 2011 2010 2009
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 .............................. $ 64,762 27.5% $ 60,742 27.2% $ 50,734 24.2% $ 42,272 21.5% $ 42,255 21.7%
Lease financing .......................... 5,271 2.3 5,481 2.5 5,914 2.8 6,126 3.1 6,537 3.4
Total commercial .................... 70,033 29.8 66,223 29.7 56,648 27.0 48,398 24.6 48,792 25.1
Commercial Real Estate
Commercial mortgages ................... 32,183 13.7 31,005 13.9 29,664 14.1 27,254 13.8 25,306 13.0
Construction and development ........... 7,702 3.3 5,948 2.6 6,187 3.0 7,441 3.8 8,787 4.5
Total commercial real estate ........ 39,885 17.0 36,953 16.5 35,851 17.1 34,695 17.6 34,093 17.5
Residential Mortgages
Residential mortgages .................... 37,545 15.9 32,648 14.6 28,669 13.7 24,315 12.3 20,581 10.6
Home equity loans, first liens ............. 13,611 5.8 11,370 5.1 8,413 4.0 6,417 3.3 5,475 2.8
Total residential mortgages .......... 51,156 21.7 44,018 19.7 37,082 17.7 30,732 15.6 26,056 13.4
Credit Card .............................
18,021 7.7 17,115 7.7 17,360 8.3 16,803 8.5 16,814 8.6
Other Retail
Retail leasing ............................. 5,929 2.5 5,419 2.4 5,118 2.4 4,569 2.3 4,568 2.3
Home equity and second mortgages ..... 15,442 6.6 16,726 7.5 18,131 8.6 18,940 9.6 19,439 10.0
Revolving credit .......................... 3,276 1.4 3,332 1.5 3,344 1.6 3,472 1.8 3,506 1.8
Installment ................................ 5,709 2.4 5,463 2.4 5,348 2.6 5,459 2.8 5,455 2.8
Automobile ............................... 13,743 5.8 12,593 5.6 11,508 5.5 10,897 5.5 9,544 4.9
Student ................................... 3,579 1.5 4,179 1.9 4,658 2.2 5,054 2.5 4,629 2.4
Total other retail ..................... 47,678 20.2 47,712 21.3 48,107 22.9 48,391 24.5 47,141 24.2
Total loans, excluding covered
loans .......................... 226,773 96.4 212,021 94.9 195,048 93.0 179,019 90.8 172,896 88.8
Covered Loans ........................
8,462 3.6 11,308 5.1 14,787 7.0 18,042 9.2 21,859 11.2
Total loans ..................... $235,235 100.0% $223,329 100.0% $209,835 100.0% $197,061 100.0% $194,755 100.0%
28 U.S. BANCORP