US Bank 2015 Annual Report Download - page 106

The following table provides a summary of loans by portfolio class and the Company’s internal credit quality rating:
Criticized
(Dollars in Millions) Pass
Special
Mention Classified(a)
Total
Criticized Total
December 31, 2015
Commercial(b) ................................................ $ 85,206 $1,629 $1,567 $3,196 $ 88,402
Commercial real estate ........................................ 41,079 365 693 1,058 42,137
Residential mortgages(c) ........................................ 52,548 2 946 948 53,496
Credit card .................................................. 20,775 – 237 237 21,012
Other retail .................................................. 50,899 6 301 307 51,206
Total loans, excluding covered loans ........................... 250,507 2,002 3,744 5,746 256,253
Covered loans ............................................... 4,507 – 89 89 4,596
Total loans ................................................ $255,014 $2,002 $3,833 $5,835 $260,849
Total outstanding commitments ................................. $539,614 $3,945 $4,845 $8,790 $548,404
December 31, 2014
Commercial(b) ................................................ $ 78,409 $1,204 $ 764 $1,968 $ 80,377
Commercial real estate ........................................ 41,322 451 1,022 1,473 42,795
Residential mortgages(c) ........................................ 50,479 5 1,135 1,140 51,619
Credit card .................................................. 18,275 – 240 240 18,515
Other retail .................................................. 48,932 20 312 332 49,264
Total loans, excluding covered loans ........................... 237,417 1,680 3,473 5,153 242,570
Covered loans ............................................... 5,164 – 117 117 5,281
Total loans ................................................ $242,581 $1,680 $3,590 $5,270 $247,851
Total outstanding commitments ................................. $501,535 $2,964 $4,179 $7,143 $508,678
(a) Classified rating on consumer loans primarily based on delinquency status.
(b) At December 31, 2015, $1.1 billion of loans to customers in energy-related businesses had a special mention or classified rating, compared with $122 million at December 31, 2014.
(c) At December 31, 2015, $2.9 billion of GNMA loans 90 days or more past due and $1.9 billion of restructured GNMA loans whose repayments are insured by the Federal Housing
Administration or guaranteed by the Department of Veterans Affairs were classified with a pass rating, compared with $3.1 billion and $2.2 billion at December 31, 2014, respectively.
For all loan classes, a loan is considered to be impaired when, based on current events or information, it is probable the Company
will be unable to collect all amounts due per the contractual terms of the loan agreement. A summary of impaired loans, which
include all nonaccrual and TDR loans, by portfolio class was as follows:
(Dollars in Millions)
Period-end
Recorded
Investment(a)
Unpaid
Principal
Balance
Valuation
Allowance
Commitments
to Lend
Additional
Funds
December 31, 2015
Commercial ............................................................ $ 520 $1,110 $ 25 $154
Commercial real estate ................................................... 336 847 11 1
Residential mortgages .................................................... 2,575 3,248 199 –
Credit card ............................................................. 210 210 57 –
Other retail ............................................................. 309 503 35 4
Total loans, excluding GNMA and covered loans ............................ 3,950 5,918 327 159
Loans purchased from GNMA mortgage pools ................................ 1,913 1,913 40 –
Covered loans .......................................................... 39 48 2 1
Total ................................................................ $5,902 $7,879 $369 $160
December 31, 2014
Commercial ............................................................ $ 329 $ 769 $ 21 $ 51
Commercial real estate ................................................... 624 1,250 23 18
Residential mortgages .................................................... 2,730 3,495 273 –
Credit card ............................................................. 240 240 61 –
Other retail ............................................................. 361 570 44 4
Total loans, excluding GNMA and covered loans ............................ 4,284 6,324 422 73
Loans purchased from GNMA mortgage pools ................................ 2,244 2,244 50 –
Covered loans .......................................................... 43 55 4 1
Total ................................................................ $6,571 $8,623 $476 $ 74
(a) Substantially all loans classified as impaired at December 31, 2015 and 2014, had an associated allowance for credit losses. The total amount of interest income recognized during 2015 on
loans classified as impaired at December 31, 2015, excluding those acquired with deteriorated credit quality, was $274 million, compared to what would have been recognized at the original
contractual terms of the loans of $370 million.
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