Lending
Like U.S. Bank, Forster Tool & Manufacturing believes in strong client relationships

Founded in 1958, Forster Tool & Manufacturing is a second-generation business providing precision custom machining services. Today the company, located in Bensenville, Illinois, continues the tradition of dependable service. Forster Tool provides precision machined parts for a variety of industries and applications, including: motion control/instrumentation, medical, dental, electronics, automotive, defense and sporting goods. Customers of U.S. Bank for just one year, owners Maureen and Scott Forster were impressed by our thoroughness in understanding their business, our responsiveness and our willingness to help them meet their financial goals. Left to right: Scott Forster, Maureen Forster, and Joe Minogue, Vice President, Business Banking, U.S. Bank.

See our banker trade places with small business owners.

U.S. Bank leads the industry in loan growth

Driven primarily by commercial loans and residential mortgages, U.S. Bancorp reported a 4.4 percent growth in average total loans for 2011 versus 2010, while credit quality continued to improve. Commercial loans grew by a strong 15.8 percent over the fourth quarter of last year, the fourth consecutive quarter of year-over-year growth in average commercial loans, and the growth rate improved each quarter. This is good news for our company, our customers and an indicator that the nation’s economy is slowly recovering.

Some of the year’s loan growth is due to business refinancing, and many of those refinancing transactions represented large corporate transactions we were invited to participate in for the first time. They represent growth and increased market share for our company, as well as opportunities for potential future business.

Additionally, in the fourth quarter of 2011, total average revolving corporate, commercial and commercial real estate commitments outstanding increased by 21.1 percent year-over-year, continuing a trend we have experienced for several quarters, an indication that loans will likely continue to grow into 2012. However, although we are growing commercial loan commitments, business customers remain cautious, and many are not fully utilizing their lines of credit — at year-end, commercial and commercial real estate utilization remained flat at about 25 percent, below our historic levels of 30 to 35 percent.

Still, it is encouraging that businesses are optimistic about being prepared for the future, and we are ready to be their financing and financial partner when they are ready to expand, to increase inventories, and resume other normal growth activities that come with a robust economy.

Small businesses an economic driver

We’re also seeing substantial growth in Small Business lending through our branch network, up 13.5 percent over 2010. We have focused the past several years on Small Business as critical to our communities and the nation’s economy. Our investments in staffing, training and back-office support systems are paying off for us and for our customers. We added more than 80,000 net new Small Business customers in 2011, growing market share and creating a pipeline of future growth as small business America recovers and retakes its rightful position as job creator and economic driver.

Consumer credit comeback

On the consumer side, our branches have become a significant source of card originations as they market the relationship aspects of new accounts, more closely tying credit and debit cards to their customers’ core accounts. Despite a subdued economy and well-known consumer challenges, we have seen growth in automobile, home equity lending and credit cards, while maintaining our acknowledged standards of underwriting and quality. Residential mortgages, one of our core businesses, increased as well, as homeowners refinanced and consumers took advantage of low rates and historically low housing prices.

Best Bank Award

U.S. Bank won its second “Best Bank in the United States” award in the Euromoney magazine Awards for Excellence.
— Euromoney, July 2011

Small Business is big to us

U.S. Bank works closely with our business customers to anticipate challenges and manage concerns. We continued our “second look” process to help put small business customers in the best position to get the capital they need. In 2011, we held more than 125 seminars, reaching thousands of business owners and providing valuable education and information. U.S. Bank set a new company record for Small Business Administration (SBA) loan approvals with a total of $630 million for the SBA fiscal year, ended September 30, 2011. U.S. Bank was the No. 1 lender in loans and/or dollar volume in Kansas City, Minneapolis, Portland, Seattle, and St. Louis, another sign of our commitment to small businesses and to helping get local economies moving again.