US Bank 2014 Annual Report Download - page 48

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 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
risk management department. Commercial lending loans
are generally not subject to re-aging policies.
Accruing loans 90 days or more past due totaled $945
million ($550 million excluding covered loans) at
December 31, 2014, compared with $1.2 billion ($713 million
excluding covered loans) at December 31, 2013, and
$1.3 billion ($660 million excluding covered loans) at
December 31, 2012. The $244 million (20.5 percent) decrease
in total accruing loans 90 days or more past due from
December 31, 2013 to December 31, 2014, primarily reflected
improvement in the residential mortgages portfolio during
2014. These loans are not included in nonperforming assets
and continue to accrue interest because they are adequately
secured by collateral, are in the process of collection and are
reasonably expected to result in repayment or restoration to
current status, or are managed in homogeneous portfolios
with specified charge-off timeframes adhering to regulatory
guidelines. The ratio of accruing loans 90 days or more past
due to total loans was .38 percent (.23 percent excluding
covered loans) at December 31, 2014, compared with
.51 percent (.31 percent excluding covered loans) at
December 31, 2013, and .59 percent (.31 percent excluding
covered loans) at December 31, 2012.
The following table provides summary delinquency
information for residential mortgages, credit card and other
retail loans included in the consumer lending segment:
At December 31
(Dollars in Millions)
Amount
As a Percent of Ending
Loan Balances
2014 2013 2014 2013
Residential
mortgages(a)
30-89 days ............. $ 221 $ 358 .43% .70%
90 days or more ........ 204 333 .40 .65
Nonperforming......... 864 770 1.67 1.51
Total ................. $ 1,289 $ 1,461 2.50% 2.86%
Credit card
30-89 days ............. $ 229 $ 226 1.24% 1.25%
90 days or more ........ 210 210 1.13 1.17
Nonperforming......... 30 78 .16 .43
Total ................. $ 469 $ 514 2.53% 2.85%
Other retail
Retail leasing
30-89 days ............. $ 11 $ 11 .18% .18%
90 days or more ........ 1 – .02 –
Nonperforming......... 1 1 .02 .02
Total ................. $ 13 $ 12 .22% .20%
Home equity and
second mortgages
30-89 days ............. $ 85 $ 102 .54% .66%
90 days or more ........ 42 49 .26 .32
Nonperforming......... 170 167 1.07 1.08
Total ................. $ 297 $ 318 1.87% 2.06%
Other(b)
30-89 days ............. $ 142 $ 132 .51% .50%
90 days or more ........ 32 37 .12 .14
Nonperforming......... 16 23 .06 .09
Total ................. $ 190 $ 192 .69% .73%
(a) Excludes $431 million of loans 30-89 days past due and $3.1 billion of loans 90 days or more
past due at December 31, 2014, purchased from GNMA mortgage pools that continue to
accrue interest, compared with $440 million and $3.7 billion at December 31, 2013,
respectively.
(b) Includes revolving credit, installment, automobile and student loans.
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