US Bank 2015 Annual Report Download - page 58

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TABLE 18 SUMMARY OF ALLOWANCE FOR CREDIT LOSSES
(Dollars in Millions) 2015 2014 2013 2012 2011
Balance at beginning of year ................................................ $4,375 $4,537 $4,733 $5,014 $5,531
Charge-Offs
Commercial
Commercial .......................................................... 289 278 212 312 423
Lease financing ....................................................... 25 27 34 66 93
Total commercial .................................................... 314 305 246 378 516
Commercial real estate
Commercial mortgages ................................................ 20 21 71 145 231
Construction and development .......................................... 2 15 21 97 312
Total commercial real estate ........................................... 22 36 92 242 543
Residential mortgages ................................................... 135 216 297 461 502
Credit card ............................................................ 726 725 739 769 922
Other retail
Retail leasing ......................................................... 865910
Home equity and second mortgages ...................................... 73 121 237 327 327
Other ............................................................... 238 257 281 330 396
Total other retail ..................................................... 319 384 523 666 733
Covered loans(a) ........................................................ – 13 37 11 13
Total charge-offs .................................................. 1,516 1,679 1,934 2,527 3,229
Recoveries
Commercial
Commercial .......................................................... 84 92 95 72 74
Lease financing ....................................................... 11 18 31 31 36
Total commercial .................................................... 95 110 126 103 110
Commercial real estate
Commercial mortgages ................................................ 15 30 45 31 22
Construction and development .......................................... 35 19 80 45 23
Total commercial real estate ........................................... 50 49 125 76 45
Residential mortgages ................................................... 26 21 25 23 13
Credit card ............................................................ 75 67 83 102 88
Other retail
Retail leasing ......................................................... 344710
Home equity and second mortgages ...................................... 35 26 26 26 19
Other ............................................................... 60 66 75 92 100
Total other retail ..................................................... 98 96 105 125 129
Covered loans(a) ........................................................ – 2511
Total recoveries ................................................... 344 345 469 430 386
Net Charge-Offs
Commercial
Commercial .......................................................... 205 186 117 240 349
Lease financing ....................................................... 14 9 3 35 57
Total commercial .................................................... 219 195 120 275 406
Commercial real estate
Commercial mortgages ................................................ 5 (9) 26 114 209
Construction and development .......................................... (33) (4) (59) 52 289
Total commercial real estate ........................................... (28) (13) (33) 166 498
Residential mortgages ................................................... 109 195 272 438 489
Credit card ............................................................ 651 658 656 667 834
Other retail
Retail leasing ......................................................... 5212–
Home equity and second mortgages ...................................... 38 95 211 301 308
Other ............................................................... 178 191 206 238 296
Total other retail ..................................................... 221 288 418 541 604
Covered loans(a) ........................................................ – 11 32 10 12
Total net charge-offs ............................................... 1,172 1,334 1,465 2,097 2,843
Provision for credit losses .................................................. 1,132 1,229 1,340 1,882 2,343
Other changes(b) .......................................................... (29) (57) (71) (66) (17)
Balance at end of year ..................................................... $4,306 $4,375 $4,537 $4,733 $5,014
Components
Allowance for loan losses ................................................. $3,863 $4,039 $4,250 $4,424 $4,753
Liability for unfunded credit commitments .................................... 443 336 287 309 261
Total allowance for credit losses ......................................... $4,306 $4,375 $4,537 $4,733 $5,014
Allowance for Credit Losses as a Percentage of
Period-end loans, excluding covered loans ................................... 1.67% 1.78% 1.94% 2.15% 2.52%
Nonperforming loans, excluding covered loans ................................ 360 297 297 269 228
Nonperforming and accruing loans 90 days or more past due, excluding covered
loans ............................................................... 247 215 201 194 164
Nonperforming assets, excluding covered assets .............................. 288 245 242 218 191
Net charge-offs, excluding covered loans .................................... 364 326 306 218 174
Period-end loans ....................................................... 1.65% 1.77% 1.93% 2.12% 2.39%
Nonperforming loans .................................................... 361 298 283 228 163
Nonperforming and accruing loans 90 days or more past due .................... 213 181 163 139 104
Nonperforming assets ................................................... 283 242 223 177 133
Net charge-offs ......................................................... 367 328 310 226 176
(a) Relates to covered loan charge-offs and recoveries not reimbursable by the FDIC.
(b) Includes net changes in credit losses to be reimbursed by the FDIC and beginning in 2013, 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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