US Bank 2015 Annual Report Download - page 50

TABLE 15 DELINQUENT LOAN RATIOS AS A PERCENT OF ENDING LOAN BALANCES
At December 31,
90 days or more past due excluding nonperforming loans 2015 2014 2013 2012 2011
Commercial
Commercial .......................................................... .06% .05% .08% .10% .09%
Lease financing ....................................................... – – – – –
Total commercial .................................................... .05 .05 .08 .09 .08
Commercial Real Estate
Commercial mortgages ................................................. – .02 .02 .02 .02
Construction and development ........................................... .13 .14 .30 .02 .13
Total commercial real estate ........................................... .03 .05 .07 .02 .04
Residential Mortgages(a) ............................................ .33 .40 .65 .64 .98
Credit Card ....................................................... 1.09 1.13 1.17 1.27 1.36
Other Retail
Retail leasing ......................................................... .02 .02 – .02 .02
Home equity and second mortgages ...................................... .25 .26 .32 .30 .73
Other ............................................................... .11 .12 .14 .17 .20
Total other retail (b) ................................................... .15 .15 .18 .20 .38
Total loans, excluding covered loans .................................. .21 .23 .31 .31 .43
Covered Loans .................................................... 6.31 7.48 5.63 5.86 6.15
Total loans ....................................................... .32% .38% .51% .59% .84%
At December 31,
90 days or more past due including nonperforming loans 2015 2014 2013 2012 2011
Commercial ............................................................ .25% .19% .27% .27% .63%
Commercial real estate ................................................... .33 .65 .83 1.50 2.55
Residential mortgages(a) .................................................. 1.66 2.07 2.16 2.14 2.73
Credit card ............................................................. 1.13 1.30 1.60 2.12 2.65
Other retail(b) ............................................................ .46 .53 .58 .66 .52
Total loans, excluding covered loans ...................................... .67 .83 .97 1.11 1.54
Covered loans .......................................................... 6.48 7.74 7.13 9.28 12.42
Total loans ........................................................... .78% .97% 1.19% 1.52% 2.30%
(a) Delinquent loan ratios exclude $2.9 billion, $3.1 billion, $3.7 billion, $3.2 billion, and $2.6 billion at December 31, 2015, 2014, 2013, 2012, and 2011, respectively, of loans purchased from
GNMA mortgage pools whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Including these loans, the ratio of
residential mortgages 90 days or more past due including all nonperforming loans was 7.15 percent, 8.02 percent, 9.34 percent, 9.45 percent, and 9.84 percent at December 31, 2015, 2014,
2013, 2012, and 2011, respectively.
(b) Delinquent loan ratios exclude student loans that are guaranteed by the federal government. Including these loans, the ratio of total other retail loans 90 days or more past due including all
nonperforming loans was .75 percent, .84 percent, .93 percent, 1.08 percent, and .99 percent at December 31, 2015, 2014, 2013, 2012, and 2011, respectively.
Loan Delinquencies Trends in delinquency ratios are an
indicator, among other considerations, of credit risk within 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, as well as student loans
guaranteed by the federal government, 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.
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