MINNEAPOLIS - U.S. Bancorp has sold its high-loan-to-value mortgage portfolio, which totaled $1 billion to $1.5 billion, according to Lori Appelbaum, an equity analyst at Goldman Sachs Group.
The high-LTV mortgages, which were part of the old U.S. Bancorp's portfolio, incurred annual losses of $100 million to $150 million, she said. Firstar Corp. of Milwaukee bought the company this year for $21 billion and adopted the U.S. Bancorp name.
The company, which now has $160 billion of assets, is not stopping there, Ms. Appelbaum said. It is also working to improve its credit risk profile by reducing its exposure to 300 to 400 loans on which it has high exposure, she said.
A spokeswoman at U.S. Bancorp declined to comment.