US Bank 2013 Annual Report Download - page 95

NOTE 5 Loans and Allowance for Credit Losses
The composition of the loan portfolio at December 31, disaggregated by class and underlying specific portfolio type, was as
follows:
(Dollars in Millions) 2013 2012
Commercial
Commercial ....................................................................................................... $ 64,762 $ 60,742
Lease financing ................................................................................................... 5,271 5,481
Total commercial ............................................................................................... 70,033 66,223
Commercial Real Estate
Commercial mortgages ........................................................................................... 32,183 31,005
Construction and development ................................................................................... 7,702 5,948
Total commercial real estate ................................................................................... 39,885 36,953
Residential Mortgages
Residential mortgages ............................................................................................ 37,545 32,648
Home equity loans, first liens ..................................................................................... 13,611 11,370
Total residential mortgages .................................................................................... 51,156 44,018
Credit Card ................................................................................................. 18,021 17,115
Other Retail
Retail leasing ..................................................................................................... 5,929 5,419
Home equity and second mortgages ............................................................................. 15,442 16,726
Revolving credit .................................................................................................. 3,276 3,332
Installment ........................................................................................................ 5,709 5,463
Automobile ........................................................................................................ 13,743 12,593
Student ........................................................................................................... 3,579 4,179
Total other retail ................................................................................................ 47,678 47,712
Total loans, excluding covered loans ........................................................................ 226,773 212,021
Covered Loans ............................................................................................. 8,462 11,308
Total loans ................................................................................................... $235,235 $223,329
The Company had loans of $77.2 billion at
December 31, 2013, and $74.1 billion at December 31,
2012, pledged at the Federal Home Loan Bank (“FHLB”),
and loans of $53.0 billion at December 31, 2013, and
$48.6 billion at December 31, 2012, pledged at the Federal
Reserve Bank.
The majority of the Company’s loans are to borrowers in
the states in which it has Consumer and Small Business
Banking offices. Collateral for commercial loans may include
marketable securities, accounts receivable, inventory and
equipment. For details of the Company’s commercial
portfolio by industry group and geography as of
December 31, 2013 and 2012, see Table 7 included in
Management’s Discussion and Analysis which is
incorporated by reference into these Notes to Consolidated
Financial Statements.
For detail of the Company’s commercial real estate
portfolio by property type and geography as of December 31,
2013 and 2012, see Table 8 included in Management’s
Discussion and Analysis which is incorporated by reference
into these Notes to Consolidated Financial Statements. Such
loans are collateralized by the related property. The Company
has an equity interest in a joint venture, that it accounts for
under the equity method, whose principal activities are to lend
to entities that develop land, and construct and sell residential
homes. The Company provides a warehousing line to this joint
venture. Warehousing advances to this joint venture are repaid
when the sale of loans is completed or the real estate is
permanently refinanced by others. At December 31, 2013 and
2012, the Company had $205 million and $486 million,
respectively, of outstanding advances to this joint venture.
These advances are included in commercial real estate loans.
Originated loans are reported at the principal amount
outstanding, net of unearned interest and deferred fees and
costs. Net unearned interest and deferred fees and costs
amounted to $556 million at December 31, 2013, and $753
million at December 31, 2012. All purchased loans and
related indemnification assets are recorded at fair value at
the date of purchase. The Company evaluates purchased
loans for impairment at the date of purchase in accordance
with applicable authoritative accounting guidance.
Purchased loans with evidence of credit deterioration since
origination for which it is probable that all contractually
required payments will not be collected are considered
“purchased impaired loans.” All other purchased loans are
considered “purchased nonimpaired loans.”
U.S. BANCORP 93