Summary
This 8-K/A filing from U.S. Bancorp (USB) amends a previous disclosure regarding nonperforming assets as of December 31, 2005. The amendment corrects an omission in the January 17, 2006 press release, specifically the exclusion of amounts related to a credit card collection management program implemented in June 2005. While this inclusion slightly increases the reported percentage of nonperforming assets to total loans plus other real estate owned from 0.43% to 0.47%, the company emphasizes that this has no impact on reported earnings. U.S. Bancorp states that the credit performance and anticipated charge-offs for this program were already factored into the allowance for credit losses as of year-end 2005. Furthermore, the company does not foresee any significant future increases in nonperforming assets stemming from this or similar consumer credit card collection initiatives. The filing also reconfirms the company's prior guidance that total net charge-offs in early 2006 are expected to be in line with levels seen in the third quarter of 2005.
Key Highlights
- 1Amendment to Nonperforming Asset Disclosure for December 31, 2005.
- 2Omission identified in January 17, 2006 press release related to a credit card collection program.
- 3Inclusion of program increases nonperforming assets percentage from 0.43% to 0.47%.
- 4No impact on reported earnings as credit performance was already accounted for in the allowance for credit losses.
- 5Company anticipates no significant future increases in nonperforming assets from similar programs.
- 6Reaffirms previous guidance on total net charge-offs for early 2006 being similar to Q3 2005 levels.