US Bank 2015 Annual Report Download - page 103

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Changes in the accretable balance for purchased impaired loans for the years ended December 31, were as follows:
(Dollars in Millions) 2015 2014 2013
Balance at beginning of period ............................................................... $1,309 $1,655 $1,709
Accretion ................................................................................ (382) (441) (499)
Disposals ................................................................................ (132) (131) (172)
Reclassifications from nonaccretable difference(a) ................................................. 163 229 258
Other(b) .................................................................................. (1) (3) 359
Balance at end of period .................................................................... $ 957 $1,309 $1,655
(a) Primarily relates to changes in expected credit performance.
(b) The amount for the year ended December 31, 2013, primarily represents the reclassification of unamortized decreases in the FDIC asset, partially offset by the impact of changes in
expectations about retaining covered single-family loans beyond the term of the indemnification agreements.
Allowance for Credit Losses The allowance for credit
losses reserves for probable and estimable losses incurred in
the Company’s loan and lease portfolio, including unfunded
credit commitments, and includes certain amounts that do
not represent loss exposure to the Company because those
losses are recoverable under loss sharing agreements with
the FDIC.
Activity in 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
Balance at December 31, 2014 ......... $1,146 $ 726 $787 $880 $ 771 $4,310 $ 65 $4,375
Add
Provision for credit losses .............. 361 (30) (47) 654 193 1,131 1 1,132
Deduct
Loans charged off .................... 314 22 135 726 319 1,516 – 1,516
Less recoveries of loans charged off ..... (95) (50) (26) (75) (98) (344) – (344)
Net loans charged off ............... 219 (28) 109 651 221 1,172 – 1,172
Other changes(a) ....................... (1) – – – – (1) (28) (29)
Balance at December 31, 2015 ......... $1,287 $ 724 $631 $883 $ 743 $4,268 $ 38 $4,306
Balance at December 31, 2013 ......... $1,075 $ 776 $875 $884 $ 781 $4,391 $146 $4,537
Add
Provision for credit losses .............. 266 (63) 107 657 278 1,245 (16) 1,229
Deduct
Loans charged off .................... 305 36 216 725 384 1,666 13 1,679
Less recoveries of loans charged off ..... (110) (49) (21) (67) (96) (343) (2) (345)
Net loans charged off ............... 195 (13) 195 658 288 1,323 11 1,334
Other changes(a) ....................... – – – (3) – (3) (54) (57)
Balance at December 31, 2014 ......... $1,146 $ 726 $787 $880 $ 771 $4,310 $ 65 $4,375
Balance at December 31, 2012 ......... $1,051 $ 857 $935 $863 $ 848 $4,554 $179 $4,733
Add
Provision for credit losses .............. 144 (114) 212 677 351 1,270 70 1,340
Deduct
Loans charged off .................... 246 92 297 739 523 1,897 37 1,934
Less recoveries of loans charged off ..... (126) (125) (25) (83) (105) (464) (5) (469)
Net loans charged off ............... 120 (33) 272 656 418 1,433 32 1,465
Other changes(a) ....................... – – – – – – (71) (71)
Balance at December 31, 2013 ......... $1,075 $ 776 $875 $884 $ 781 $4,391 $146 $4,537
(a) Includes net changes in credit losses to be reimbursed by the FDIC and reductions in the allowance for covered loans where the reversal of a previously recorded allowance was offset by an
associated decrease in the indemnification asset, and the impact of any loan sales.
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