US Bank 2013 Annual Report Download - page 64

Noninterest expense decreased $25 million (2.0
percent) in 2013, compared with 2012, primarily due to lower
costs related to other real estate owned and other
intangibles expense. The provision for credit losses
decreased $99 million in 2013, compared with 2012, due to
lower net charge-offs, partially offset by lower reserve
releases. Nonperforming assets were $322 million at
December 31, 2013, compared with $520 million at
December 31, 2012. Nonperforming assets as a percentage
of period-end loans were .43 percent at December 31, 2013,
compared with .75 percent at December 31, 2012. Refer to
the “Corporate Risk Profile” section for further information on
factors impacting the credit quality of the loan portfolios.
Consumer and Small Business Banking Consumer and
Small Business Banking delivers products and services
through banking offices, telephone servicing and sales, on-
line services, direct mail, ATM processing and mobile
devices, such as mobile phones and tablet computers. It
encompasses community banking, metropolitan banking, in-
store banking, small business banking, consumer lending,
mortgage banking, workplace banking, student banking and
24-hour banking. Consumer and Small Business Banking
contributed $1.4 billion of the Company’s net income in
2013, or a decrease of $21 million (1.5 percent), compared
with 2012. The decrease was due to lower net revenue,
offset by a lower provision for credit losses and noninterest
expense. Within Consumer and Small Business Banking, the
retail banking division contributed $716 million of the total net
TABLE 24 Line of Business Financial Performance
Wholesale Banking and
Commercial Real Estate
Consumer and Small
Business Banking
Year Ended December 31
(Dollars in Millions) 2013 2012
Percent
Change 2013 2012
Percent
Change
Condensed Income Statement
Net interest income (taxable-equivalent basis) ...................... $ 2,088 $ 2,104 (.8)% $ 4,554 $ 4,737 (3.9)%
Noninterest income .................................................. 1,092 1,234 (11.5) 2,904 3,565 (18.5)
Securities gains (losses), net ........................................ ––– – ––
Total net revenue ................................................. 3,180 3,338 (4.7) 7,458 8,302 (10.2)
Noninterest expense ................................................ 1,248 1,265 (1.3) 4,684 4,923 (4.9)
Other intangibles .................................................... 8 16 (50.0) 40 51 (21.6)
Total noninterest expense ........................................ 1,256 1,281 (2.0) 4,724 4,974 (5.0)
Income before provision and income taxes ......................... 1,924 2,057 (6.5) 2,734 3,328 (17.8)
Provision for credit losses ........................................... (97) 2 * 607 1,167 (48.0)
Income before income taxes ........................................ 2,021 2,055 (1.7) 2,127 2,161 (1.6)
Income taxes and taxable-equivalent adjustment ................... 736 748 (1.6) 774 786 (1.5)
Net income .......................................................... 1,285 1,307 (1.7) 1,353 1,375 (1.6)
Net (income) loss attributable to noncontrolling interests ........... – – – – (1) *
Net income attributable to U.S. Bancorp ............................ $ 1,285 $ 1,307 (1.7) $ 1,353 $ 1,374 (1.5)
Average Balance Sheet
Commercial ......................................................... $50,873 $45,091 12.8% $ 8,396 $ 8,225 2.1%
Commercial real estate .............................................. 20,550 19,635 4.7 16,934 16,136 4.9
Residential mortgages .............................................. 26 60 (56.7) 47,081 39,827 18.2
Credit card .......................................................... ––– – ––
Other retail........................................................... 8 7 14.3 44,847 45,594 (1.6)
Total loans, excluding covered loans ............................. 71,457 64,793 10.3 117,258 109,782 6.8
Covered loans ....................................................... 363 921 (60.6) 6,566 7,510 (12.6)
Total loans ........................................................ 71,820 65,714 9.3 123,824 117,292 5.6
Goodwill ............................................................. 1,604 1,604 – 3,515 3,515 –
Other intangible assets .............................................. 25 36 (30.6) 2,406 1,787 34.6
Assets ............................................................... 78,253 71,606 9.3 139,174 134,258 3.7
Noninterest-bearing deposits........................................ 31,153 31,224 (.2) 21,969 20,386 7.8
Interest checking .................................................... 10,515 10,354 1.6 33,006 29,911 10.3
Savings products .................................................... 14,144 9,413 50.3 46,308 43,342 6.8
Time deposits ....................................................... 18,481 17,197 7.5 21,136 23,787 (11.1)
Total deposits ..................................................... 74,293 68,188 9.0 122,419 117,426 4.3
Total U.S. Bancorp shareholders’ equity ............................ 7,356 6,436 14.3 12,148 11,268 7.8
* Not meaningful
62 U.S. BANCORP