US Bank 2014 Annual Report Download - page 103

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Additional detail of the allowance for credit losses by portfolio class was as follows:
(Dollars in Millions) Commercial
Commercial
Real Estate
Residential
Mortgages
Credit
Card
Other
Retail
Total Loans,
Excluding
Covered Loans
Covered
Loans
Total
Loans
Allowance Balance at December 31, 2014
Related to
Loans individually evaluated for impairment(a) ............. $ 5 $4 $–$–$– $ 9 $–$ 9
TDRs collectively evaluated for impairment ............... 12 12 319 61 41 445 4 449
Other loans collectively evaluated for impairment ......... 1,129 678 468 819 730 3,824 1 3,825
Loans acquired with deteriorated credit quality ........... – 32 – – – 32 60 92
Total allowance for credit losses ....................... $1,146 $726 $787 $880 $771 $4,310 $ 65 $4,375
Allowance Balance at December 31, 2013
Related to
Loans individually evaluated for impairment(a) ............. $ 15 $17 $–$–$– $ 32 $–$ 32
TDRs collectively evaluated for impairment ............... 19 26 329 87 55 516 4 520
Other loans collectively evaluated for impairment ......... 1,041 700 546 797 726 3,810 5 3,815
Loans acquired with deteriorated credit quality ........... – 33 – – – 33 137 170
Total allowance for credit losses ....................... $1,075 $776 $875 $884 $781 $4,391 $146 $4,537
(a) Represents the allowance for credit losses related to loans greater than $5 million classified as nonperforming or TDRs.
Additional detail of loan balances by portfolio class was as follows:
(Dollars in Millions) Commercial
Commercial
Real Estate
Residential
Mortgages
Credit
Card
Other
Retail
Total Loans,
Excluding
Covered Loans
Covered
Loans(b)
Total
Loans
December 31, 2014
Loans individually evaluated for impairment(a) .......... $ 159 $ 128 $ 12 $ – $ – $ 299 $ – $ 299
TDRs collectively evaluated for impairment ............ 124 393 4,653 240 237 5,647 34 5,681
Other loans collectively evaluated for impairment ...... 80,093 41,744 46,953 18,275 49,027 236,092 2,463 238,555
Loans acquired with deteriorated credit quality ........ 1 530 1 – – 532 2,784 3,316
Total loans .......................................... $80,377 $42,795 $51,619 $18,515 $49,264 $242,570 $5,281 $247,851
December 31, 2013
Loans individually evaluated for impairment(a) .......... $ 197 $ 237 $ – $ – $ – $ 434 $ 62 $ 496
TDRs collectively evaluated for impairment ............ 155 358 5,064 310 269 6,156 87 6,243
Other loans collectively evaluated for impairment ...... 69,680 39,129 46,090 17,711 47,409 220,019 4,538 224,557
Loans acquired with deteriorated credit quality ........ 1 161 2 – – 164 3,775 3,939
Total loans .......................................... $70,033 $39,885 $51,156 $18,021 $47,678 $226,773 $8,462 $235,235
(a) Represents loans greater than $5 million classified as nonperforming or TDRs.
(b) Includes expected reimbursements from the FDIC under loss sharing agreements.
Credit Quality The quality of the Company’s loan portfolios
is assessed as a function of net credit losses, levels of
nonperforming assets and delinquencies, and credit quality
ratings as defined by the Company. These credit quality
ratings are an important part of the Company’s overall credit
risk management process and evaluation of its allowance for
credit losses.
U.S. BANCORP The power of potential
101