QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading symbols |
Name of each exchange on which registered | ||
Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
||||
Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
||||
Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
USB Pr P |
|||
Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
||||
Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
||||
Non-Cumulative Perpetual Preferred Stock, par value $1.00) |
||||
0.850% |
Accelerated filer ☐ | ||
Non-accelerated filer ☐ |
Smaller reporting company Emerging growth company |
Class | Outstanding as of April 30, 2022 | |
Common Stock, $0.01 Par Value |
Part I — Financial Information |
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4 | ||||
4 | ||||
4 | ||||
6 | ||||
30 | ||||
32 | ||||
32 | ||||
9 | ||||
9 | ||||
10 | ||||
21 | ||||
21 | ||||
21 | ||||
21 | ||||
23 | ||||
24 | ||||
26 | ||||
27 | ||||
33 | ||||
Part II — Other Information |
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72 | ||||
72 | ||||
72 | ||||
72 | ||||
73 | ||||
74 |
U.S. Bancorp | 1 |
2 |
U.S. Bancorp |
Table 1 |
Selected Financial Data |
Three Months Ended March 31 |
||||||||||||
(Dollars and Shares in Millions, Except Per Share Data) | 2022 | 2021 | Percent Change |
|||||||||
Condensed Income Statement |
|
|||||||||||
Net interest income |
$ | 3,173 | $ | 3,063 | 3.6 | % | ||||||
Taxable-equivalent adjustment (a) |
27 | 26 | 3.8 | |||||||||
Net interest income (taxable-equivalent basis) (b) |
3,200 | 3,089 | 3.6 | |||||||||
Noninterest income |
2,396 | 2,381 | .6 | |||||||||
Total net revenue |
5,596 | 5,470 | 2.3 | |||||||||
Noninterest expense |
3,502 | 3,379 | 3.6 | |||||||||
Provision for credit losses |
112 | (827 | ) | * | ||||||||
Income before taxes |
1,982 | 2,918 | (32.1 | ) | ||||||||
Income taxes and taxable-equivalent adjustment |
424 | 633 | (33.0 | ) | ||||||||
Net income |
1,558 | 2,285 | (31.8 | ) | ||||||||
Net (income) loss attributable to noncontrolling interests |
(1 | ) | (5 | ) | 80.0 | |||||||
Net income attributable to U.S. Bancorp |
$ | 1,557 | $ | 2,280 | (31.7 | ) | ||||||
Net income applicable to U.S. Bancorp common shareholders |
$ | 1,466 | $ | 2,175 | (32.6 | ) | ||||||
Per Common Share |
|
|||||||||||
Earnings per share |
$ | .99 | $ | 1.45 | (31.7 | )% | ||||||
Diluted earnings per share |
.99 | 1.45 | (31.7 | ) | ||||||||
Dividends declared per share |
.46 | .42 | 9.5 | |||||||||
Book value per share (c) |
29.87 | 30.53 | (2.2 | ) | ||||||||
Market value per share |
53.15 | 55.31 | (3.9 | ) | ||||||||
Average common shares outstanding |
1,485 | 1,502 | (1.1 | ) | ||||||||
Average diluted common shares outstanding |
1,486 | 1,503 | (1.1 | ) | ||||||||
Financial Ratios |
||||||||||||
Return on average assets |
1.09 | % | 1.69 | % | ||||||||
Return on average common equity |
12.7 | 19.0 | ||||||||||
Net interest margin (taxable-equivalent basis) (a) |
2.44 | 2.50 | ||||||||||
Efficiency ratio (b) |
62.8 | 62.1 | ||||||||||
Net charge-offs as a percent of average loans outstanding |
.21 | .31 | ||||||||||
Average Balances |
|
|||||||||||
Loans |
$ | 312,966 | $ | 293,989 | 6.5 | % | ||||||
Loans held for sale |
5,479 | 10,032 | (45.4 | ) | ||||||||
Investment securities (d) |
174,762 | 145,520 | 20.1 | |||||||||
Earning assets |
529,837 | 497,711 | 6.5 | |||||||||
Assets |
577,402 | 548,734 | 5.2 | |||||||||
Noninterest-bearing deposits |
127,963 | 118,352 | 8.1 | |||||||||
Deposits |
454,176 | 426,364 | 6.5 | |||||||||
Short-term borrowings |
19,038 | 13,107 | 45.3 | |||||||||
Long-term debt |
32,972 | 39,463 | (16.4 | ) | ||||||||
Total U.S. Bancorp shareholders’ equity |
53,466 | 52,729 | 1.4 | |||||||||
March 31, 2022 |
December 31, 2021 |
|||||||||||
Period End Balances |
|
|||||||||||
Loans |
$ | 318,934 | $ | 312,028 | 2.2 | % | ||||||
Investment securities |
167,247 | 174,821 | (4.3 | ) | ||||||||
Assets |
586,517 | 573,284 | 2.3 | |||||||||
Deposits |
461,546 | 456,083 | 1.2 | |||||||||
Long-term debt |
32,931 | 32,125 | 2.5 | |||||||||
Total U.S. Bancorp shareholders’ equity |
51,200 | 54,918 | (6.8 | ) | ||||||||
Asset Quality |
||||||||||||
Nonperforming assets |
$ | 811 | $ | 878 | (7.6 | )% | ||||||
Allowance for credit losses |
6,105 | 6,155 | (.8 | ) | ||||||||
Allowance for credit losses as a percentage of period-end loans |
1.91 | % | 1.97 | % | ||||||||
Capital Ratios |
||||||||||||
Common equity tier 1 capital |
9.8 | % | 10.0 | % | ||||||||
Tier 1 capital |
11.5 | 11.6 | ||||||||||
Total risk-based capital |
13.4 | 13.4 | ||||||||||
Leverage |
8.6 | 8.6 | ||||||||||
Total leverage exposure |
7.0 | 6.9 | ||||||||||
Tangible common equity to tangible assets (b) |
6.0 | 6.8 | ||||||||||
Tangible common equity to risk-weighted assets (b) |
8.0 | 9.2 | ||||||||||
Common equity tier 1 capital to risk-weighted assets, reflecting the full implementation of the current expected credit losses methodology (b) |
9.5 | 9.6 |
* |
Not meaningful |
(a) |
Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes. |
(b) |
See Non-GAAP Financial Measures beginning on page 30. |
(c) |
Calculated as U.S. Bancorp common shareholders’ equity divided by common shares outstanding at end of the period. |
(d) |
Excludes unrealized gains and losses on available-for-sale available-for-sale held-to-maturity. |
U.S. Bancorp | 3 |
4 |
U.S. Bancorp |
Table 2 |
Noninterest Income |
Three Months Ended March 31 |
||||||||||||
(Dollars in Millions) | 2022 | 2021 | Percent Change |
|||||||||
Credit and debit card revenue |
$ | 338 | $ | 336 | .6 | % | ||||||
Corporate payment products revenue |
158 | 126 | 25.4 | |||||||||
Merchant processing services |
363 | 318 | 14.2 | |||||||||
Trust and investment management fees |
500 | 444 | 12.6 | |||||||||
Deposit service charges |
177 | 161 | 9.9 | |||||||||
Treasury management fees |
156 | 147 | 6.1 | |||||||||
Commercial products revenue |
266 | 280 | (5.0 | ) | ||||||||
Mortgage banking revenue |
200 | 299 | (33.1 | ) | ||||||||
Investment products fees |
62 | 55 | 12.7 | |||||||||
Securities gains (losses), net |
18 | 25 | (28.0 | ) | ||||||||
Other |
158 | 190 | (16.8 | ) | ||||||||
Total noninterest income |
$ | 2,396 | $ | 2,381 | .6 | % |
U.S. Bancorp | 5 |
Table 3 |
Noninterest Expense |
Three Months Ended March 31 |
||||||||||||
(Dollars in Millions) | 2022 | 2021 | Percent Change |
|||||||||
Compensation |
$ | 1,853 | $ | 1,803 | 2.8 | % | ||||||
Employee benefits |
396 | 384 | 3.1 | |||||||||
Net occupancy and equipment |
269 | 263 | 2.3 | |||||||||
Professional services |
114 | 98 | 16.3 | |||||||||
Marketing and business development |
80 | 48 | 66.7 | |||||||||
Technology and communications |
349 | 359 | (2.8 | ) | ||||||||
Postage, printing and supplies |
72 | 69 | 4.3 | |||||||||
Other intangibles |
47 | 38 | 23.7 | |||||||||
Other |
322 | 317 | 1.6 | |||||||||
Total noninterest expense |
$ | 3,502 | $ | 3,379 | 3.6 | % | ||||||
Efficiency ratio (a) |
62.8 | % | 62.1 | % |
(a) |
See Non-GAAP Financial Measures beginning on page 30. |
6 |
U.S. Bancorp |
Table 4 |
Investment Securities |
March 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||
(Dollars in Millions) | Amortized Cost |
Fair Value | Weighted- Average Maturity in Years |
Weighted- Average Yield (d) |
Amortized Cost |
Fair Value | Weighted- Average Maturity in Years |
Weighted- Average Yield (d) |
||||||||||||||||||||||||
Held-to-maturity |
||||||||||||||||||||||||||||||||
Mortgage-backed securities (a) |
$ | 43,654 | $ | 40,572 | 9.7 | 1.64 | % | $ | 41,858 | $ | 41,812 | 7.4 | 1.45 | % | ||||||||||||||||||
Total held-to-maturity |
$ | 43,654 | $ | 40,572 | 9.7 | 1.64 | % | $ | 41,858 | $ | 41,812 | 7.4 | 1.45 | % | ||||||||||||||||||
Available-for-sale |
||||||||||||||||||||||||||||||||
U.S. Treasury and agencies |
$ | 27,653 | $ | 26,350 | 7.2 | 1.83 | % | $ | 36,648 | $ | 36,609 | 6.7 | 1.54 | % | ||||||||||||||||||
Mortgage-backed securities (a) |
91,277 | 86,955 | 7.3 | 1.80 | 85,394 | 85,564 | 4.9 | 1.58 | ||||||||||||||||||||||||
Asset-backed securities (a) |
4 | 7 | 4.1 | 2.00 | 62 | 66 | 5.2 | 1.53 | ||||||||||||||||||||||||
Obligations of state and political subdivisions (b) (c) |
10,701 | 10,274 | 9.5 | 3.64 | 10,130 | 10,717 | 6.6 | 3.67 | ||||||||||||||||||||||||
Other |
7 | 7 | .1 | 2.07 | 7 | 7 | 3.4 | 2.07 | ||||||||||||||||||||||||
Total available-for-sale |
$ | 129,642 | $ | 123,593 | 7.5 | 1.96 | % | $ | 132,241 | $ | 132,963 | 5.5 | 1.73 | % |
(a) |
Information related to asset and mortgage-backed securities included above is presented based upon weighted-average maturities that take into account anticipated future prepayments. |
(b) |
Information related to obligations of state and political subdivisions is presented based upon yield to first optional call date if the security is purchased at a premium, and yield to maturity if the security is purchased at par or a discount. |
(c) |
Maturity calculations for obligations of state and political subdivisions are based on the first optional call date for securities with a fair value above par and the contractual maturity date for securities with a fair value equal to or below par. |
(d) |
Yields on investment securities are computed based on amortized cost balances. Weighted-average yields for obligations of state and political subdivisions are presented on a fully-taxable equivalent basis based on a federal income tax rate of 21 percent. |
U.S. Bancorp | 7 |
8 |
U.S. Bancorp |
U.S. Bancorp | 9 |
• | Macroeconomic environment and other qualitative considerations, such as regulatory and compliance changes, litigation developments, geopolitical events, and technology and cybersecurity; |
• | Credit measures, including adversely rated and nonperforming loans, leveraged transactions, credit concentrations and lending limits; |
• | Interest rate and market risk, including market value and net income simulation, and trading-related Value at Risk (“VaR”); |
• | Liquidity risk, including funding projections under various stressed scenarios; |
• | Operational and compliance risk, including losses stemming from events such as fraud, processing errors, control breaches, breaches in data security or adverse business decisions, as well as reporting on technology performance, and various legal and regulatory compliance measures; |
• | Capital ratios and projections, including regulatory measures and stressed scenarios; and |
• | Strategic and reputation risk considerations, impacts and responses. |
10 |
U.S. Bancorp |
Residential Mortgages (Dollars in Millions) |
Interest Only |
Amortizing | Total | Percent of Total |
||||||||||||
Loan-to-Value |
||||||||||||||||
Less than or equal to 80% |
$ | 4,097 | $ | 64,696 | $ | 68,793 | 87.6 | % | ||||||||
Over 80% through 90% |
1 | 2,277 | 2,278 | 2.9 | ||||||||||||
Over 90% through 100% |
— | 210 | 210 | .3 | ||||||||||||
Over 100% |
— | 63 | 63 | .1 | ||||||||||||
No LTV available |
— | 19 | 19 | — | ||||||||||||
Loans purchased from GNMA mortgage pools (a) |
— | 7,124 | 7,124 | 9.1 | ||||||||||||
Total (b) |
$ | 4,098 | $ | 74,389 | $ | 78,487 | 100.0 | % |
(a) |
Represents loans purchased from Government National Mortgage Association (“GNMA”) mortgage pools whose payments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. |
(b) |
At March 31, 2022, approximately $399 million of residential mortgage balances were considered sub-prime. |
Home Equity and Second Mortgages (Dollars in Millions) |
Lines | Loans | Total | Percent of Total |
||||||||||||
Loan-to-Value Loan-to-Value |
||||||||||||||||
Less than or equal to 80% |
$ | 9,065 | $ | 681 | $ | 9,746 | 93.2 | % | ||||||||
Over 80% through 90% |
340 | 215 | 555 | 5.3 | ||||||||||||
Over 90% through 100% |
38 | 21 | 59 | .6 | ||||||||||||
Over 100% |
39 | 4 | 43 | .4 | ||||||||||||
No LTV/CLTV available |
52 | 2 | 54 | .5 | ||||||||||||
Total (a) |
$ | 9,534 | $ | 923 | $ | 10,457 | 100.0 | % |
(a) |
At March 31, 2022, approximately $29 million of home equity and second mortgage balances were considered sub-prime. |
U.S. Bancorp | 11 |
Junior Liens Behind | ||||||||||||
(Dollars in Millions) | Company Owned or Serviced First Lien |
Third Party First Lien |
Total | |||||||||
Total |
$ | 2,644 | $ | 4,840 | $ | 7,484 | ||||||
Percent 30—89 days past due |
.43 | % | .33 | % | .36 | % | ||||||
Percent 90 days or more past due |
.10 | % | .09 | % | .09 | % | ||||||
Weighted-average CLTV |
59 | % | 57 | % | 58 | % | ||||||
Weighted-average credit score |
782 | 783 | 783 |
12 |
U.S. Bancorp |
Table 5 |
Delinquent Loan Ratios as a Percent of Ending Loan Balances |
90 days or more past due excluding |
March 31, 2022 |
December 31, 2021 |
||||||
Commercial |
||||||||
Commercial |
.07 | % | .05 | % | ||||
Lease financing |
— | — | ||||||
Total commercial |
.06 | .04 | ||||||
Commercial Real Estate |
||||||||
Commercial mortgages |
— | — | ||||||
Construction and development |
.01 | .10 | ||||||
Total commercial real estate |
— | .03 | ||||||
Residential Mortgages (a) |
.18 | .24 | ||||||
Credit Card |
.74 | .73 | ||||||
Other Retail |
||||||||
Retail leasing |
.03 | .04 | ||||||
Home equity and second mortgages |
.42 | .35 | ||||||
Other |
.05 | .06 | ||||||
Total other retail |
.11 | .11 | ||||||
Total loans |
.14 | % | .15 | % | ||||
90 days or more past due including |
March 31, 2022 |
December 31, 2021 |
||||||
Commercial |
.21 | % | .20 | % | ||||
Commercial real estate |
.55 | .76 | ||||||
Residential mortgages (a) |
.45 | .53 | ||||||
Credit card |
.74 | .73 | ||||||
Other retail |
.37 | .35 | ||||||
Total loans |
.38 | % | .42 | % |
(a) |
Delinquent loan ratios exclude $1.3 billion at March 31, 2022, and $1.5 billion at December 31, 2021, of loans purchased from GNMA mortgage pools whose repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. Including these loans, the ratio of residential mortgages 90 days or more past due including all nonperforming loans was 2.08 percent at March 31, 2022, and 2.43 percent at December 31, 2021. |
Amount | As a Percent of Ending Loan Balances |
|||||||||||||||||||
(Dollars in Millions) | March 31, 2022 |
December 31, 2021 |
March 31, 2022 |
December 31, 2021 |
||||||||||||||||
Residential Mortgages (a) |
||||||||||||||||||||
30-89 days |
$ | 105 | $ | 124 | .13 | % | .15 | % | ||||||||||||
90 days or more |
140 | 181 | .18 | .24 | ||||||||||||||||
Nonperforming |
214 | 226 | .27 | .30 | ||||||||||||||||
Total |
$ | 459 | $ | 531 | .58 | % | .69 | % | ||||||||||||
Credit Card |
||||||||||||||||||||
30-89 days |
$ | 194 | $ | 193 | .88 | % | .86 | % | ||||||||||||
90 days or more |
165 | 165 | .74 | .73 | ||||||||||||||||
Nonperforming |
— | — | — | — | ||||||||||||||||
Total |
$ | 359 | $ | 358 | 1.62 | % | 1.59 | % | ||||||||||||
Other Retail |
||||||||||||||||||||
Retail Leasing |
||||||||||||||||||||
30-89 days |
$ | 27 | $ | 29 | .39 | % | .40 | % | ||||||||||||
90 days or more |
2 | 3 | .03 | .04 | ||||||||||||||||
Nonperforming |
10 | 10 | .14 | .14 | ||||||||||||||||
Total |
$ | 39 | $ | 42 | .56 | % | .58 | % | ||||||||||||
Home Equity and Second Mortgages |
||||||||||||||||||||
30-89 days |
$ | 41 | $ | 55 | .40 | % | .53 | % | ||||||||||||
90 days or more |
44 | 37 | .42 | .35 | ||||||||||||||||
Nonperforming |
129 | 116 | 1.23 | 1.11 | ||||||||||||||||
Total |
$ | 214 | $ | 208 | 2.05 | % | 1.99 | % | ||||||||||||
Other (b) |
||||||||||||||||||||
30-89 days |
$ | 169 | $ | 191 | .38 | % | .43 | % | ||||||||||||
90 days or more |
22 | 26 | .05 | .06 | ||||||||||||||||
Nonperforming |
22 | 24 | .05 | .05 | ||||||||||||||||
Total |
$ | 213 | $ | 241 | .48 | % | .54 | % |
(a) |
Excludes $662 million of loans 30-89 days past due and $1.3 billion of loans 90 days or more past due at March 31, 2022, purchased from GNMA mortgage pools that continue to accrue interest, compared with $791 million and $1.5 billion at December 31, 2021, respectively. |
(b) |
Includes revolving credit, installment, automobile and student loans. |
U.S. Bancorp | 13 |
As a Percent of Performing TDRs | ||||||||||||||||||||
At March 31, 2022 (Dollars in Millions) |
Performing TDRs |
30-89 Days Past Due |
90 Days or More Past Due |
Nonperforming TDRs |
Total TDRs |
|||||||||||||||
Commercial |
$ | 137 | 5.3 | % | 2.2 | % | $ | 76 | (a) | $ | 213 | |||||||||
Commercial real estate |
86 | 2.0 | — | 145 | (b) | 231 | ||||||||||||||
Residential mortgages |
1,521 | 3.3 | 3.5 | 116 | 1,637 | (d) | ||||||||||||||
Credit card |
243 | 11.8 | 5.6 | — | 243 | |||||||||||||||
Other retail |
179 | 9.4 | 4.8 | 39 | (c) | 218 | (e) | |||||||||||||
TDRs, excluding loans purchased from GNMA mortgage pools |
2,166 | 4.9 | 3.6 | 376 | 2,542 | |||||||||||||||
Loans purchased from GNMA mortgage pools (g) |
978 | — | — | — | 978 | (f) | ||||||||||||||
Total |
$ | 3,144 | 3.4 | % | 2.5 | % | $ | 376 | $ | 3,520 |
(a) |
Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months) and small business credit cards with a modified rate equal to 0 percent. |
(b) |
Primarily represents loans less than six months from the modification date that have not met the performance period required to return to accrual status (generally six months). |
(c) |
Primarily represents loans with a modified rate equal to 0 percent. |
(d) |
Includes $222 million of residential mortgage loans to borrowers that have had debt discharged through bankruptcy and $21 million in trial period arrangements or previously placed in trial period arrangements but not successfully completed. |
(e) |
Includes $65 million of other retail loans to borrowers that have had debt discharged through bankruptcy and $14 million in trial period arrangements or previously placed in trial period arrangements but not successfully completed. |
(f) |
Includes $165 million of Federal Housing Administration and United States Department of Veterans Affairs residential mortgage loans to borrowers that have had debt discharged through bankruptcy and $132 million in trial period arrangements or previously placed in trial period arrangements but not successfully completed. |
(g) |
Approximately 9.6 percent and 34.9 percent of the total TDR loans purchased from GNMA mortgage pools are 30-89 days past due and 90 days or more past due, respectively, but are not classified as delinquent as their repayments are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. |
14 |
U.S. Bancorp |
U.S. Bancorp | 15 |
Table 6 |
Nonperforming Assets (a) |
(Dollars in Millions) | March 31, 2022 |
December 31, 2021 |
||||||
Commercial |
||||||||
Commercial |
$139 | $139 | ||||||
Lease financing |
35 | 35 | ||||||
Total commercial |
174 | 174 | ||||||
Commercial Real Estate |
||||||||
Commercial mortgages |
178 | 213 | ||||||
Construction and development |
38 | 71 | ||||||
Total commercial real estate |
216 | 284 | ||||||
Residential Mortgages (b) |
214 | 226 | ||||||
Credit Card |
— | — | ||||||
Other Retail |
||||||||
Retail leasing |
10 | 10 | ||||||
Home equity and second mortgages |
129 | 116 | ||||||
Other |
22 | 24 | ||||||
Total other retail |
161 | 150 | ||||||
Total nonperforming loans (1) |
765 | 834 | ||||||
Other Real Estate (c) |
23 | 22 | ||||||
Other Assets |
23 | 22 | ||||||
Total nonperforming assets |
$811 | $878 | ||||||
Accruing loans 90 days or more past due (b) |
$450 | $472 | ||||||
Period-end loans (2) |
$318,934 | $312,028 | ||||||
Nonperforming loans to total loans (1)/(2) |
.24 | % | .27 | % | ||||
Nonperforming assets to total loans plus other real estate (c) |
.25 | % | .28 | % |
(Dollars in Millions) | Commercial and Commercial Real Estate |
Residential Mortgages, Credit Card and Other Retail |
Total | |||||||||
Balance December 31, 2021 |
$ | 461 | $ | 417 | $ | 878 | ||||||
Additions to nonperforming assets |
||||||||||||
New nonaccrual loans and foreclosed properties |
92 | 58 | 150 | |||||||||
Advances on loans |
4 | — | 4 | |||||||||
Total additions |
96 | 58 | 154 | |||||||||
Reductions in nonperforming assets |
||||||||||||
Paydowns, payoffs |
(134 | ) | (15 | ) | (149 | ) | ||||||
Net sales |
— | (4 | ) | (4 | ) | |||||||
Return to performing status |
(9 | ) | (35 | ) | (44 | ) | ||||||
Charge-offs (d) |
(21 | ) | (3 | ) | (24 | ) | ||||||
Total reductions |
(164 | ) | (57 | ) | (221 | ) | ||||||
Net additions to (reductions in) nonperforming assets |
(68 | ) | 1 | (67 | ) | |||||||
Balance March 31, 2022 |
$ | 393 | $ | 418 | $ | 811 |
(a) |
Throughout this document, nonperforming assets and related ratios do not include accruing loans 90 days or more past due. |
(b) |
Excludes $1.3 billion at March 31, 2022, and $1.5 billion at December 31, 2021, of loans purchased from GNMA mortgage pools that are 90 days or more past due that continue to accrue interest, as their repayments are primarily insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. |
(c) |
Foreclosed GNMA loans of $27 million at March 31, 2022, and $22 million at December 31, 2021, continue to accrue interest and are recorded as other assets and excluded from nonperforming assets because they are insured by the Federal Housing Administration or guaranteed by the United States Department of Veterans Affairs. |
(d) |
Charge-offs exclude actions for certain card products and loan sales that were not classified as nonperforming at the time the charge-off occurred. |
16 |
U.S. Bancorp |
Table 7 |
Net Charge-offs as a Percent of Average Loans Outstanding |
Three Months Ended March 31 | ||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||
Average | Average | |||||||||||||||||||||||||||
Loan | Net | Loan | Net | |||||||||||||||||||||||||
(Dollars in Millions) | Balance | Charge-offs |
Percent | Balance | Charge-offs |
Percent | ||||||||||||||||||||||
Commercial |
||||||||||||||||||||||||||||
Commercial |
$ | 107,819 | $ | 26 | .10 | % | $ | 96,757 | $ | 52 | .22 | % | ||||||||||||||||
Lease financing |
5,003 | 6 | .49 | 5,334 | 4 | .30 | ||||||||||||||||||||||
Total commercial |
112,822 | 32 | .12 | 102,091 | 56 | .22 | ||||||||||||||||||||||
Commercial real estate |
||||||||||||||||||||||||||||
Commercial mortgages |
28,826 | — | — | 27,968 | (12 | ) | (.17 | ) | ||||||||||||||||||||
Construction |
10,258 | (5 | ) | (.20 | ) | 10,818 |