US Bank 2013 Annual Report Download - page 43

TABLE 15 Delinquent Loan Ratios as a Percent of Ending Loan Balances
At December 31,
90 days or more past due excluding nonperforming loans 2013 2012 2011 2010 2009
Commercial
Commercial .......................................................................... .08% .10% .09% .15% .25%
Lease financing ...................................................................... – – – .02 –
Total commercial .................................................................. .08 .09 .08 .13 .22
Commercial Real Estate
Commercial mortgages .............................................................. .02 .02 .02 – –
Construction and development ...................................................... .30 .02 .13 .01 .07
Total commercial real estate....................................................... .07 .02 .04 – .02
Residential Mortgages (a) .................................................... .65 .64 .98 1.63 2.80
Credit Card ...................................................................... 1.17 1.27 1.36 1.86 2.59
Other Retail
Retail leasing ......................................................................... – .02 .02 .05 .11
Other ................................................................................. .21 .22 .43 .49 .57
Total other retail (b) ................................................................ .18 .20 .38 .45 .53
Total loans, excluding covered loans ........................................... .31 .31 .43 .61 .88
Covered Loans .................................................................. 5.63 5.86 6.15 6.04 3.59
Total loans ...................................................................... .51% .59% .84% 1.11% 1.19%
At December 31,
90 days or more past due including nonperforming loans 2013 2012 2011 2010 2009
Commercial ............................................................................. .27% .27% .63% 1.37% 2.25%
Commercial real estate ................................................................. .83 1.50 2.55 3.73 5.22
Residential mortgages (a) .............................................................. 2.16 2.14 2.73 3.70 4.59
Credit card .............................................................................. 1.60 2.12 2.65 3.22 3.43
Other retail (b) .......................................................................... .58 .66 .52 .58 .66
Total loans, excluding covered loans ........................................... .97 1.11 1.54 2.19 2.87
Covered loans .......................................................................... 7.13 9.28 12.42 12.94 9.76
Total loans ...................................................................... 1.19% 1.52% 2.30% 3.17% 3.64%
(a) Delinquent loan ratios exclude $3.7 billion, $3.2 billion, $2.6 billion, $2.6 billion, and $2.2 billion at December 31, 2013, 2012, 2011, 2010 and 2009, respectively, of loans purchased
from GNMA mortgage pools whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Including these loans,
the ratio of residential mortgages 90 days or more past due including all nonperforming loans was 9.34 percent, 9.45 percent, 9.84 percent, 12.28 percent, and 12.86 percent at
December 31, 2013, 2012, 2011, 2010, and 2009, respectively.
(b) Delinquent loan ratios exclude student loans that are guaranteed by the federal government. Including these loans, the ratio of total other retail loans 90 days or more past due including
all nonperforming loans was .93 percent, 1.08 percent, .99 percent, 1.04 percent, and .91 percent at December 31, 2013, 2012, 2011, 2010, and 2009, respectively.
Loan Delinquencies Trends in delinquency ratios are an
indicator, among other considerations, of credit risk within
the Company’s loan portfolios. The entire balance of an
account is considered delinquent if the minimum payment
contractually required to be made is not received by the
specified date on the billing statement. The Company
measures delinquencies, both including and excluding
nonperforming loans, to enable comparability with other
companies. Delinquent loans purchased from Government
National Mortgage Association (“GNMA”) mortgage pools
whose repayments of principal and interest are primarily
insured by the Federal Housing Administration or
guaranteed by the Department of Veterans Affairs, are
excluded from delinquency statistics. In addition, in certain
situations, a consumer lending customer’s account may be
re-aged to remove it from delinquent status. Generally, the
purpose of re-aging accounts is to assist customers who
have recently overcome temporary financial difficulties, and
have demonstrated both the ability and willingness to
resume regular payments. To qualify for re-aging, the
account must have been open for at least nine months and
cannot have been re-aged during the preceding 365 days.
An account may not be re-aged more than two times in a
five-year period. To qualify for re-aging, the customer must
also have made three regular minimum monthly payments
within the last 90 days. In addition, the Company may re-age
the consumer lending account of a customer who has
experienced longer-term financial difficulties and apply
modified, concessionary terms and conditions to the
account. Such additional re-ages are limited to one in a
five-year period and must meet the qualifications for re-aging
described above. All re-aging strategies must be
independently approved by the Company’s credit
administration function. Commercial lending loans are
generally not subject to re-aging policies.
Accruing loans 90 days or more past due totaled
$1.2 billion ($713 million excluding covered loans) at
December 31, 2013, compared with $1.3 billion ($660 million
excluding covered loans) at December 31, 2012, and
$1.8 billion ($843 million excluding covered loans) at
U.S. BANCORP 41