US Bank 2014 Annual Report Download - page 28

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TABLE 3 NET INTEREST INCOME — CHANGES DUE TO RATE AND VOLUME (a)
2014 v 2013 2013 v 2012
Year Ended December 31 (Dollars in Millions) Volume Yield/Rate Total Volume Yield/Rate Total
Increase (decrease) in
Interest Income
Investment securities ................................. $ 359 $(135) $ 224 $ 68 $(240) $(172)
Loans held for sale.................................... (92) 17 (75) (76) (3) (79)
Loans
Commercial ........................................ 272 (212) 60 229 (229) –
Commercial real estate ............................ 98 (112) (14) 78 (127) (49)
Residential mortgages ............................. 157 (115) 42 348 (216) 132
Credit card ......................................... 83 43 126 16 (18) (2)
Other retail ......................................... 60 (237) (177) (42) (128) (170)
Total loans, excluding covered loans ............. 670 (633) 37 629 (718) (89)
Covered loans ...................................... (159) (32) (191) (196) 13 (183)
Total loans ....................................... 511 (665) (154) 433 (705) (272)
Other earning assets .................................. (27) (27) (54) (87) 11 (76)
Total earning assets ............................. 751 (810) (59) 338 (937) (599)
Interest Expense
Interest-bearing deposits
Interest checking ................................... 3 (4) (1) 3 (13) (10)
Money market savings.............................. 12 29 41 11 3 14
Savings accounts ................................... 3 (6) (3) 5 (22) (17)
Time deposits less than $100,000 .................. (25) (40) (65) (29) (33) (62)
Time deposits greater than $100,000 ............... (11) (57) (68) 3 (58) (55)
Total interest-bearing deposits .................. (18) (78) (96) (7) (123) (130)
Short-term borrowings ............................... 33 (123) (90) (14) (76) (90)
Long-term debt ....................................... 189 (231) (42) (253) 15 (238)
Total interest-bearing liabilities.................. 204 (432) (228) (274) (184) (458)
Increase (decrease) in net interest income ............ $ 547 $(378) $ 169 $ 612 $(753) $(141)
(a) This table shows the components of the change in net interest income by volume and rate on a taxable-equivalent basis utilizing a tax rate of 35 percent. This table does not take into account the
level of noninterest-bearing funding, nor does it fully reflect changes in the mix of assets and liabilities. The change in interest not solely due to changes in volume or rates has been allocated on
a pro-rata basis to volume and yield/rate.
The $813 million (1.7 percent) decrease in average other
retail loans was primarily due to lower home equity and
second mortgage and student loan balances, partially offset
by higher auto and installment loan and retail leasing
balances. Average covered loans decreased $3.1 billion (23.7
percent) in 2013, compared with 2012.
Average investment securities in 2013 were $2.5 billion
(3.5 percent) higher than 2012, primarily due to purchases of
U.S. government agency-backed securities made in
anticipation of regulatory liquidity coverage ratio
requirements, net of prepayments and maturities.
Average total deposits for 2013 were $14.7 billion
(6.3 percent) higher than 2012. Average noninterest-bearing
deposits in 2013 were $1.8 billion (2.6 percent) higher than
2012 due to growth in Consumer and Small Business
Banking balances. Average total savings deposits were
$14.3 billion (11.7 percent) higher in 2013, compared with
2012, the result of growth in Consumer and Small Business
Banking, Wholesale and Commercial Real Estate, and
corporate trust balances. Average time certificates of deposit
less than $100,000 were lower in 2013 by $1.7 billion
(11.8 percent), compared with 2012, due to maturities.
Average time deposits greater than $100,000 were
$356 million (1.1 percent) higher in 2013, compared with
2012.
Provision for Credit Losses The provision for credit losses
reflects changes in the size and credit quality of the entire
portfolio of loans. The Company maintains an allowance for
credit losses considered appropriate by management for
probable and estimable incurred losses, based on factors
discussed in the “Analysis and Determination of Allowance
for Credit Losses” section.
26