This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

U.S. Bancorp Reports Fourth Quarter And Full Year 2012 Earnings

Stock quotes in this article: USB

Commercial and commercial real estate loan net charge-offs decreased to $69 million (.27 percent of average loans outstanding) in the fourth quarter of 2012, compared with $91 million (.37 percent of average loans outstanding) in the third quarter of 2012, and $156 million (.68 percent of average loans outstanding) in the fourth quarter of 2011.

Residential mortgage loan net charge-offs were $96 million (.88 percent of average loans outstanding) in the fourth quarter of 2012, compared with $121 million (1.17 percent of average loans outstanding) in the third quarter of 2012, and $119 million (1.30 percent of average loans outstanding) in the fourth quarter of 2011. Credit card loan net charge-offs were $161 million (3.86 percent of average loans outstanding) in the fourth quarter of 2012, compared with $167 million (4.01 percent of average loans outstanding) in the third quarter of 2012, and $193 million (4.71 percent of average loans outstanding) in the fourth quarter of 2011. Total other retail loan net charge-offs were $135 million (1.12 percent of average loans outstanding) in the fourth quarter of 2012, compared with $157 million (1.30 percent of average loans outstanding) in the third quarter of 2012, and $152 million (1.25 percent of average loans outstanding) in the fourth quarter of 2011.

The ratio of the allowance for credit losses to period-end loans was 2.12 percent (2.15 percent excluding covered loans) at December 31, 2012, compared with 2.19 percent (2.26 percent excluding covered loans) at September 30, 2012, and 2.39 percent (2.52 percent excluding covered loans) at December 31, 2011. The ratio of the allowance for credit losses to nonperforming loans was 228 percent (269 percent excluding covered loans) at December 31, 2012, compared with 202 percent (244 percent excluding covered loans) at September 30, 2012, and 163 percent (228 percent excluding covered loans) at December 31, 2011.

                     
CREDIT RATIOS                   Table 9
(Percent)   4Q   3Q   2Q   1Q   4Q
2012   2012   2012   2012   2011
Net charge-offs ratios (a)
Commercial .32 .41 .41 .61 .41
Lease financing .37 .50 1.07 .55 1.43
Total commercial .32 .42 .48 .61 .52
 
Commercial mortgages .16 .26 .62 .47 .50
Construction and development .33 .33 .41 2.38 2.91
Total commercial real estate .18 .27 .58 .79 .93
 
Residential mortgages .88 1.17 1.12 1.19 1.30
 
Credit card (b) 3.86 4.01 4.10 4.05 4.71
 
Retail leasing .07 -- -- .08 --
Home equity and second mortgages 1.76 2.04 1.44 1.66 1.67
Other .92 1.06 .86 .92 1.19
Total other retail 1.12 1.30 .98 1.11 1.25
 
Total net charge-offs, excluding covered loans .88 1.04 1.04 1.17 1.28
 
Covered loans .24 .06 -- .03 .05
 
Total net charge-offs .85 .99 .98 1.09 1.19
 
Delinquent loan ratios - 90 days or more past due excluding nonperforming loans (c)
Commercial .09 .06 .07 .08 .08
Commercial real estate .02 .03 .03 .04 .04
Residential mortgages .64 .72 .80 .79 .98
Credit card 1.27 1.18 1.17 1.33 1.36
Other retail .20 .20 .19 .34 .38
Total loans, excluding covered loans .31 .31 .33 .38 .43
Covered loans 5.86 5.61 4.96 5.23 6.15
Total loans .59 .61 .61 .70 .84
 
Delinquent loan ratios - 90 days or more past due including nonperforming loans (c)
Commercial .27 .31 .38 .61 .63
Commercial real estate 1.50 1.75 1.92 2.15 2.55
Residential mortgages 2.14 2.52 2.46 2.58 2.73
Credit card 2.12 2.18 2.29 2.58 2.65
Other retail .66 .64 .57 .48 .52
Total loans, excluding covered loans 1.11 1.24 1.27 1.40 1.54
Covered loans 9.28 9.30 9.30 10.86 12.42
Total loans 1.52 1.69 1.76 2.04 2.30
 
(a) Annualized and calculated on average loan balances

(b) Net charge-offs as a percent of average loans outstanding, excluding portfolio     purchases where the acquired loans were recorded at fair value at the purchase     date were 4.00 percent for the fourth quarter of 2012, 4.17 percent for the third     quarter of 2012, 4.25 percent for the second quarter of 2012, 4.21 percent for the     first quarter of 2012 and 4.88 percent for the fourth quarter of 2011.

(c) Ratios are expressed as a percent of ending loan balances.
 
                 
                     

ASSET QUALITY

                  Table 10
($ in millions)          
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
2012   2012   2012   2012   2011
Nonperforming loans
Commercial $107 $133 $172 $280 $280
Lease financing 16   19   23   31   32
Total commercial 123 152 195 311 312
 
Commercial mortgages 308 392 376 380 354
Construction and development 238   239   314   379   545
Total commercial real estate 546 631 690 759 899
 
Residential mortgages 661 757 660 686 650
Credit card 146 163 189 207 224
Other retail 217   210   182   65   67
Total nonperforming loans, excluding covered loans 1,693 1,913 1,916 2,028 2,152
 
Covered loans 386   449   570   798   926
Total nonperforming loans 2,079 2,362 2,486 2,826 3,078
 
Other real estate (a) 381 259 324 377 404
Covered other real estate (a) 197 198 203 233 274
Other nonperforming assets 14   16   16   18   18
Total nonperforming assets (b) $2,671   $2,835   $3,029   $3,454   $3,774
 
Total nonperforming assets, excluding covered assets $2,088   $2,188   $2,256   $2,423   $2,574
 
Accruing loans 90 days or more
past due, excluding covered loans $660   $644   $663   $750   $843
 
Accruing loans 90 days or more past due $1,323   $1,326   $1,315   $1,492   $1,753
 
Performing restructured loans, excluding GNMA
and covered loans $3,421   $3,387   $3,310   $3,380   $3,365
 
Performing restructured GNMA and covered loans $2,159   $2,002   $1,727   $1,675   $1,509
 
Nonperforming assets to loans
plus ORE, excluding covered assets (%) .98 1.06 1.11 1.22 1.32
 
Nonperforming assets to loans
plus ORE (%) 1.19 1.30 1.40 1.63 1.79
 
(a) Includes equity investments in entities whose only asset is other real estate owned.
(b) Does not include accruing loans 90 days or more past due or restructured loans that continue to accrue interest.
 
 

Nonperforming assets at December 31, 2012, totaled $2,671 million, compared with $2,835 million at September 30, 2012, and $3,774 million at December 31, 2011. Total nonperforming assets at December 31, 2012, included $583 million of covered assets. The ratio of nonperforming assets to loans and other real estate was 1.19 percent (.98 percent excluding covered assets) at December 31, 2012, compared with 1.30 percent (1.06 percent excluding covered assets) at September 30, 2012, and 1.79 percent (1.32 percent excluding covered assets) at December 31, 2011. The decrease in nonperforming assets, excluding covered assets, compared with a year ago was driven primarily by reductions in the construction and development portfolio, as well as by improvement in commercial mortgages and other commercial loan portfolios, partially offset by an increase in nonperforming other retail loans, primarily due to a policy change for junior lien lines and loans in the second quarter. In addition, residential mortgage and other retail loan portfolios were impacted by the third quarter regulatory clarification in the treatment of consumer borrowers who have had debt discharged through bankruptcy but continue to make payments on their loans. Other real estate owned increased in the current quarter, reflecting a change by the Company to include in this category, residential real estate-related loans for which the borrower had vacated the property, but foreclosure had not yet occurred. Substantially all of these loans were reported as nonperforming at the time they were reclassified to other real estate owned.

10 of 21

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,042.90 -28.32 -0.17%
S&P 500 1,972.29 -5.51 -0.28%
NASDAQ 4,493.39 -12.4620 -0.28%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs