US Bank 2015 Annual Report Download - page 102

NOTE 6 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) 2015 2014
Commercial
Commercial .................................................................................... $ 83,116 $ 74,996
Lease financing ................................................................................. 5,286 5,381
Total commercial .............................................................................. 88,402 80,377
Commercial Real Estate
Commercial mortgages .......................................................................... 31,773 33,360
Construction and development .................................................................... 10,364 9,435
Total commercial real estate ..................................................................... 42,137 42,795
Residential Mortgages
Residential mortgages ........................................................................... 40,425 38,598
Home equity loans, first liens ...................................................................... 13,071 13,021
Total residential mortgages ...................................................................... 53,496 51,619
Credit Card ..................................................................................... 21,012 18,515
Other Retail
Retail leasing ................................................................................... 5,232 5,871
Home equity and second mortgages ................................................................ 16,384 15,916
Revolving credit ................................................................................. 3,354 3,309
Installment ..................................................................................... 7,030 6,242
Automobile .................................................................................... 16,587 14,822
Student ....................................................................................... 2,619 3,104
Total other retail ............................................................................... 51,206 49,264
Total loans, excluding covered loans ............................................................ 256,253 242,570
Covered Loans .................................................................................. 4,596 5,281
Total loans ................................................................................. $260,849 $247,851
The Company had loans of $78.1 billion at December 31,
2015, and $79.8 billion at December 31, 2014, pledged at the
Federal Home Loan Bank, and loans of $63.4 billion at
December 31, 2015, and $61.8 billion at December 31, 2014,
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, 2015
and 2014, 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,
2015 and 2014, 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.
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 $550 million at December 31, 2015, and
$574 million at December 31, 2014. 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.”
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