10-KPeriod: FY2010

US BANCORP \DE\ Annual Report, Year Ended Dec 31, 2010

Filed February 28, 2011For Securities:USBUSB-PHUSB-PPUSB-PRUSB-PQUSB-PSUSB-PA

Summary

US BancORP's 2010 10-K filing highlights the company's robust financial services operations, including lending, depository services, and investment management, across a significant network of 3,031 banking offices and 5,310 ATMs primarily in the Midwest and West regions of the U.S. The company, employing over 60,000 individuals, operates as a financial holding company and is subject to extensive federal and state regulations, including the recently enacted Dodd-Frank Act. This legislation introduces significant changes to the financial services regulatory framework, potentially impacting capital requirements, consumer protection, and resolution processes for large financial institutions like U.S. Bancorp. Investor focus should be on the company's solid capital position, with a total capital ratio of 13.3% and a Tier 1 capital ratio of 10.5% as of December 31, 2010, exceeding regulatory minimums. The filing also details the company's proactive management of capital through various issuances and repurchase programs, underscoring a commitment to shareholder value while navigating a complex and evolving regulatory landscape. The substantial number of incorporated documents suggests detailed financial data and risk factor disclosures available in the full 2010 Annual Report.

Financial Highlights

38 data points
Beta

Net Income

$3.32B

EPS (Diluted)

$1.73

Total Assets

$307.79B

Cash & Equivalents

$14.49B

Free Cash Flow

$5.24B

Financial Statements
Beta
Interest Expense$2.58B
Net Income$3.32B
EPS (Basic)$1.74
EPS (Diluted)$1.73
Shares Outstanding (Basic)1.91B
Shares Outstanding (Diluted)1.92B

Key Highlights

  • 1U.S. Bancorp operates a large, diversified financial services business with a significant physical presence (3,031 banking offices, 5,310 ATMs) and a broad range of services including lending, deposits, cash management, and investment services.
  • 2The company is a financial holding company and is subject to extensive regulation, with the Dodd-Frank Act of 2010 introducing substantial new regulatory requirements and potential impacts on operations.
  • 3As of December 31, 2010, U.S. Bancorp maintained strong capital ratios: Total Capital Ratio of 13.3% and Tier 1 Capital Ratio of 10.5%, both exceeding regulatory minimums.
  • 4The company demonstrates active capital management, including authorized share repurchase programs, with 9,235 shares repurchased in Q4 2010.
  • 5The filing references numerous exhibits and incorporated documents, including the full 2010 Annual Report, which contains detailed financial statements, risk factors, and management's discussion and analysis.
  • 6U.S. Bancorp's banking subsidiaries, U.S. Bank National Association and U.S. Bank National Association ND, held 'outstanding' and 'satisfactory' Community Reinvestment Act (CRA) ratings, respectively, as of their latest examinations.

Frequently Asked Questions

U.S. Bancorp is a multi-state financial services holding company providing a comprehensive range of services including lending, depository services, cash management, foreign exchange, trust and investment management, credit card services, merchant processing, mortgage banking, insurance, brokerage, and leasing. It operates through a network of banking offices and ATMs primarily in the Midwest and West regions of the United States.

The most significant regulatory development highlighted is the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. This act introduces substantial changes to the regulatory framework for financial services companies, including new oversight bodies, enhanced prudential standards for large institutions, broader authority for consumer protection, changes to derivative transaction regulations, revised FDIC assessment bases, and potential impacts on capital requirements and resolution processes.

As of December 31, 2010, U.S. Bancorp reported a strong capital position. Its total consolidated capital ratio was 13.3%, and its Tier 1 capital ratio was 10.5%. These figures significantly exceed the required minimums of 8% for total capital and 4% for Tier 1 capital.

The filing indicates active capital management. U.S. Bancorp had authorized share repurchase programs in place. In the fourth quarter of 2010, the company repurchased 9,235 shares of common stock under these programs, demonstrating a commitment to returning capital to shareholders while managing its overall capital structure.