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USB · US BANCORP \DE\

50 filings

10-Q

USB 10-Q Quarterly Reports

US BANCORP \DE\ - 50 quarterly reports

Filing record · 2016–202610-K1110-Q328-K199

USB filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 199 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jan ’17Jan ’17
  2. FY2018 annual report10-K · Feb ’19Feb ’19
  3. Material agreement8-K · Sep ’21Sep ’21
  4. Material agreement8-K · Aug ’25Aug ’25
  1. 2026-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2026

    U.S. Bancorp reported a strong second quarter and first six months of 2026, with net income attributable to U.S. Bancorp increasing by 19.9% to $2.2 billion in Q2 2026 and by 17.0% to $4.1 billion for the first six months compared to the prior year periods. This growth was driven by a combination of higher net interest income and noninterest income, with the latter benefiting from the acquisition of BTIG. Average loans saw a robust increase of 7.1% in the quarter, supported by commercial, commercial real estate, and credit card loans, while average deposits grew by 2.4%, primarily in savings accounts. The company maintained stable credit quality, with a slight decrease in the allowance for credit losses to loans ratio and a notable 15.3% reduction in nonperforming assets. Net charge-offs as a percentage of average loans also improved slightly. Capital ratios remained strong, exceeding regulatory requirements, and the company returned significant capital to shareholders through dividends and share repurchases. The BTIG acquisition, completed on June 1, 2026, is expected to enhance fee revenue in the Wealth, Corporate, Commercial and Institutional Banking segment.

    Aug 6, 2026
  2. 2026-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2026

    US BancORP (USB) reported a solid first quarter for 2026, with net income attributable to the company increasing by 13.8% year-over-year to $1.945 billion, or $1.18 per diluted share. This growth was driven by a 4.2% increase in net interest income, primarily due to loan growth and improved asset mix, and a 5.7% rise in noninterest income across most categories, notably capital markets and trust and investment management fees. The company maintained stable credit quality, with nonperforming assets decreasing by 3.9% and net charge-offs remaining stable. Provision for credit losses saw a modest increase of 7.3%, largely attributable to loan growth. US BancORP's capital position remained strong, with all regulatory capital ratios exceeding requirements. The company also announced a definitive agreement to acquire BTIG for up to $1 billion, expected to close in Q2 2026, which is anticipated to enhance its institutional trading and investment banking capabilities. Operationally, noninterest expense increased by a modest 0.8%, driven by higher technology and marketing spend, partially offset by lower compensation costs. The company's liquidity position remains robust, with a strong liquidity coverage ratio. Overall, the results reflect continued profitable growth and effective risk management, supported by a strategic acquisition that is poised to expand its service offerings.

    May 4, 2026
  3. 2025-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2025

    US BancORP \DE\ (USB) reported a strong third quarter of 2025, with net income attributable to US Bancorp shareholders increasing by 16.7% to $2.0 billion, or $1.22 per diluted share. This growth was driven by a robust increase in total net revenue, up 6.8% year-over-year, fueled by a 14.1% rise in noninterest income and a modest 2.0% increase in net interest income. The company also demonstrated effective expense management, with noninterest expense decreasing by 0.2% despite investments in technology. For the first nine months of 2025, net income rose by 19.2%, showcasing sustained profitability and improved efficiency ratios. Asset quality remains stable, with nonperforming assets decreasing by 9.7% and the allowance for credit losses slightly decreasing by 0.4% while still covering nonperforming assets a healthy 490%. Capital ratios remain strong, exceeding regulatory requirements, with Common Equity Tier 1 capital at 10.9%. The company also repurchased approximately $2.2 billion in common stock during the quarter, signaling confidence and a commitment to returning capital to shareholders. Overall, USB delivered a solid financial performance, demonstrating revenue growth, controlled expenses, and sound risk management.

    Nov 5, 2025
  4. 2025-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2025

    U.S. Bancorp (USB) reported solid results for the second quarter and the first six months of 2025, demonstrating growth in key financial metrics. For the second quarter, net income attributable to U.S. Bancorp increased by 13.2% to $1.815 billion, or $1.11 per diluted common share, compared to the prior year. This growth was driven by a 2.0% increase in total net revenue, reaching $7.0 billion, and a 0.8% decrease in noninterest expense to $4.181 billion. The provision for credit losses also saw a decrease of 11.8%. For the first six months of 2025, the company reported a net income attributable to U.S. Bancorp of $3.524 billion, a significant 20.6% increase year-over-year, with diluted earnings per share rising to $2.14. Total net revenue grew by 2.8% to $13.962 billion, while noninterest expense decreased by 3.0% to $8.413 billion. The provision for credit losses was down 7.4%. The bank maintained strong capital ratios, exceeding regulatory requirements, and saw improvements in its efficiency ratio, reflecting effective cost management and operational efficiencies. The company also highlighted growth in its Payment Services segment and continued focus on managing credit risk, with a stable allowance for credit losses.

    Aug 7, 2025
  5. 2025-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2025

    U.S. Bancorp (USB) reported a strong first quarter for 2025, with net income attributable to the company increasing by a significant 29.6% to $1.709 billion, or $1.03 per diluted share, compared to the prior year's first quarter. This robust performance was driven by a 3.6% rise in total net revenue, fueled by a 2.7% increase in net interest income and a 5.0% growth in noninterest income, particularly from trust and investment management fees and payment services. The company also demonstrated effective cost management, with noninterest expense decreasing by 5.1% year-over-year, largely due to lower merger and integration charges and improved compensation and employee benefits expenses. Asset quality remained solid, with a decrease in nonperforming assets and a stable allowance for credit losses as a percentage of period-end loans. Capital ratios remained strong, exceeding regulatory requirements. The company's effective management of expenses and revenue growth contributed to improved profitability metrics, including a higher return on average assets and return on average common equity, making for a positive start to the fiscal year.

    May 6, 2025
  6. 2024-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2024

    U.S. Bancorp (USB) reported its financial results for the third quarter and the first nine months of 2024. For the third quarter, net income attributable to U.S. Bancorp was $1.714 billion, or $1.03 per diluted share, a notable increase from the prior year's $1.523 billion ($0.91 per diluted share), which was impacted by merger and integration charges. Total net revenue for the quarter decreased by 2.4% year-over-year, primarily due to a decline in net interest income driven by higher deposit costs, partially offset by higher earnings asset yields. Noninterest income also saw a slight decrease, impacted by net losses on investment securities sales. However, noninterest expense was significantly lower, down 7.2%, largely due to the absence of substantial merger and integration charges recorded in the prior year. The company's provision for credit losses increased by 8.2% due to higher net charge-offs, particularly in credit card, commercial, and commercial real estate loans. For the nine-month period, net income remained relatively flat year-over-year, with a slight increase in noninterest income being offset by a decrease in net interest income and lower provision for credit losses.

    Nov 5, 2024
  7. 2024-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2024

    U.S. Bancorp (USB) reported mixed results for the second quarter of 2024, with net income attributable to the company increasing by 17.8% to $1.6 billion, or $0.97 per diluted share, compared to the prior year. This growth was primarily driven by a significant reduction in the provision for credit losses and lower noninterest expenses, both of which benefited from the absence of substantial one-time charges seen in the prior year, such as merger and integration costs related to the MUFG Union Bank acquisition. However, total net revenue declined by 4.3% year-over-year to $6.9 billion, largely due to an 8.9% decrease in net interest income, attributed to the impact of higher interest rates on deposit pricing and mix. Despite the revenue pressure, noninterest income saw a modest 3.3% increase, led by stronger performance in mortgage banking, trust and investment management fees, and payment services. The company also maintained strong capital ratios, with Common Equity Tier 1 capital at 10.3% under the standardized approach.

    Aug 6, 2024
  8. 2024-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2024

    U.S. Bancorp (USB) reported a net income of $1.32 billion for the first quarter of 2024, a decrease of 22.2% compared to $1.70 billion in the prior year. This decline was primarily driven by a 14.0% decrease in net interest income, largely due to higher interest rates impacting deposit pricing, partially offset by higher yields on earning assets. While noninterest income saw a modest 7.7% increase, driven by higher fee revenues across various categories, the provision for credit losses rose by 29.5% year-over-year, reflecting a normalization in the credit environment. Despite the year-over-year profit decline, the company demonstrated solid operational performance and capital strength. Total net revenue saw a decrease of 6.4%, but noninterest expense was down 2.1% due to expense management and MUB acquisition synergies. The company's capital ratios remained robust, exceeding regulatory "well-capitalized" requirements, with Common Equity Tier 1 capital at 10.0% under the Basel III standardized approach. Deposits also saw a slight increase, and the company maintained a strong liquidity position, with its Liquidity Coverage Ratio (LCR) at 109.4%.

    May 1, 2024
  9. 2023-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2023

    U.S. Bancorp's Q3 2023 10-Q shows a quarter with higher revenue but sharply lower profit. Net income attributable to U.S. Bancorp fell 15.9% to $1.5 billion ($0.91 per diluted share, versus $1.16 a year earlier), while total net revenue rose 11.2% to $7.0 billion, driven by a 10.7% increase in net interest income from higher rates and the MUFG Union Bank (MUB) acquisition. Noninterest expense rose 24.6% to $4.5 billion, including $284 million of merger and integration charges, and the provision for credit losses climbed 42.3% to $515 million as net charge-offs rose to $420 million. The efficiency ratio deteriorated to 64.4% from 57.5%, and return on average common equity fell to 11.9% from 15.8%. Balance sheet and capital trends were mixed. Loans declined 3.3% year to date to $375.2 billion, deposits fell 1.3% to $518.4 billion with a sharp shift out of noninterest-bearing accounts, and investment securities were reduced after balance sheet repositioning. Nonperforming assets rose 28.9% to $1.3 billion, and the allowance for credit losses reached 2.08% of loans. Capital strengthened: the common equity tier 1 ratio rose to 9.7% from 8.4% at year-end 2022, helped by the 24 million share issuance to MUFG that also repaid $936 million of acquisition debt. Management flagged a potential FDIC special assessment of about $650 million pre-tax (roughly a 10 basis point hit to CET1) and a proposed Basel III endgame rule that would likely require higher capital. For investors, the central tension is between top-line growth and tighter margins and credit costs. Net interest margin was 2.81% for the quarter, down from 2.83% a year ago, as deposit mix and pricing pressure offset higher asset yields. Credit normalization in commercial real estate and credit cards, integration costs, and regulatory capital uncertainty will be the key items to watch in coming quarters.

    Nov 1, 2023
  10. 2023-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2023

    U.S. Bancorp's second-quarter 2023 results show earnings pressure despite strong revenue growth. Net income attributable to U.S. Bancorp was $1.36 billion, or $0.84 per diluted share, down from $1.53 billion, or $0.99, a year earlier. Total net revenue rose 19.3% to $7.2 billion, driven by a 28.5% jump in net interest income from rising rates and the MUFG Union Bank (MUB) acquisition. However, noninterest expense rose 22.7% to $4.6 billion, including $310 million of merger and integration charges, and the provision for credit losses more than doubled to $821 million. Management attributed roughly $0.28 of the quarter's EPS decline to MUB integration costs, provisions, and balance sheet repositioning losses. Asset quality is normalizing. Quarterly net charge-offs were $649 million (0.67% annualized), compared with $161 million a year ago, though this figure includes charge-offs tied to balance sheet repositioning and capital management actions. Excluding those items, the charge-off ratio was 0.35%. Nonperforming assets rose modestly to $1.1 billion, and the allowance for credit losses increased to 2.03% of period-end loans. The company's regulatory capital position strengthened, with the CET1 ratio at 9.1% (8.9% on a fully phased-in CECL basis), up from 8.4% at year-end 2022. Management also disclosed a potential $650 million pre-tax FDIC special assessment that would reduce CET1 by roughly 10 basis points if finalized as proposed. The balance sheet shows a deliberate shift. Total deposits declined slightly to $521.6 billion, with noninterest-bearing deposits down 24% as customers moved funds into interest-bearing products. Investment securities and loans both shrank during the period as the company sold indirect auto loans and securities to reposition its balance sheet. Long-term debt rose to $45.3 billion, reflecting $7.2 billion of medium-term note issuance. Investors should weigh strong top-line momentum and capital gains against integration costs, higher credit provisions, and deposit mix pressure.

    Aug 7, 2023
  11. 2023-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2023

    U.S. Bancorp reported net income attributable to the company of $1.7 billion ($1.04 per diluted share) for Q1 2023, up from $1.6 billion ($0.99) a year earlier, with ROA of 1.03% and ROE of 14.1%. Results were shaped by the December 2022 acquisition of MUFG Union Bank (MUB), which lifted net interest income 46% to $4.6 billion and net interest margin to 3.10% from 2.44%, but also brought $244 million of merger and integration charges (about $0.12 per share), higher expenses (noninterest expense up 30% to $4.6 billion) and a sharply higher provision for credit losses of $427 million versus $112 million. Credit quality is normalizing: net charge-offs rose to 0.39% of average loans from 0.21%, and nonperforming assets increased 16% to $1.2 billion, largely from commercial real estate loans identified in a post-closing review of the MUB portfolio. The balance sheet and liquidity disclosures were a central focus given the March 2023 banking-sector turmoil. Total deposits fell 3.7% to $505 billion for the quarter, though management said deposits were only down 0.6% from March 8 through quarter-end, and it reported roughly $17 billion of further outflows through April 30, partly seasonal and partly MUB-related. Funding shifted toward short-term borrowings, which rose 82% to $56.9 billion, mainly FHLB advances, while total available liquidity was reported at about $315 billion, or 126% of uninsured deposits. Capital ratios improved modestly, with the CET1 ratio at 8.5% and the CET1 ratio on a fully phased-in CECL basis at 8.3%, and the company has suspended buybacks until CET1 reaches 9.0%. Investors should also note that Moody's downgraded the company after the quarter, and that the MUB merger into U.S. Bank National Association was expected over Memorial Day weekend 2023. Overall, the quarter shows a bank with stronger earnings power from higher rates and the MUB acquisition, offset by integration costs, rising credit provisions, and deposit outflows. The key questions for investors are the pace of deposit stabilization, the trajectory of credit losses in commercial real estate, and whether the acquisition's expected cost and revenue synergies are realized.

    May 8, 2023
  12. 2022-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2022

    U.S. Bancorp (USB) reported third-quarter 2022 net income attributable to the company of $1.8 billion, or $1.16 per diluted share, down from $2.0 billion, or $1.30 per share, in the third quarter of 2021. Return on average assets was 1.22% and return on average common equity was 15.8%. Results were shaped by a 20.7% rise in net interest income, which benefited from higher interest rates and strong loan and securities growth, offset by an 8.3% drop in noninterest income as mortgage banking revenue fell 80.6% amid slowing refinancing activity. Noninterest expense rose 6.1%, including $42 million of merger and integration charges tied to the pending MUFG Union Bank acquisition. The provision for credit losses swung to a $362 million expense from a $163 million benefit a year earlier, reflecting strong loan growth and rising economic uncertainty. For the first nine months of 2022, net income was $4.9 billion, or $3.13 per diluted share, versus $6.3 billion, or $4.04, a year earlier. Net revenue grew 4.6%, but the sharp swing in credit provisioning and the decline in mortgage revenue pushed earnings lower. Balance sheet trends were mixed: loans grew 9.8% to $342.7 billion, while investment securities fell 11.9% to $154.1 billion, largely because of a $14.1 billion unfavorable swing in unrealized securities losses. Common equity tier 1 capital ratio stood at 9.7%, down from 10.0% at year-end 2021, and shareholders' equity declined to $47.5 billion from $54.9 billion, mainly from accumulated other comprehensive losses. The pending acquisition of MUFG Union Bank's core regional banking franchise, expected to add roughly $105 billion in assets, has received all required regulatory approvals and is expected to close on December 1, 2022. Management indicated it will suspend share repurchases until after closing and until the CET1 ratio approaches 9.0%, having targeted about 8.3% at closing.

    Nov 1, 2022
  13. 2022-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2022

    U.S. Bancorp's second-quarter 2022 results show a sharp earnings decline driven by a steep drop in mortgage banking and the costs of its pending MUFG Union Bank acquisition, even as core lending and net interest income grew. Net income attributable to U.S. Bancorp was $1.5 billion, or $0.99 per diluted share, down from $2.0 billion, or $1.28, a year earlier (-22.7% on a per-share basis). Net interest income rose 9.5% to $3.4 billion, supported by higher loan and securities balances and rising rates, with the net interest margin improving to 2.59%. Noninterest income fell 2.7% as mortgage banking revenue dropped 59% on lower refinancing activity, while noninterest expense rose 9.9% to $3.7 billion, including $197 million of merger and integration charges. Credit quality remained sound on an absolute basis but the provision for credit losses swung to a $311 million expense from a $170 million benefit a year earlier, reflecting loan growth and rising economic uncertainty. Total loans grew 6.5% year-to-date to $332.4 billion, while nonperforming assets declined 12.3% to $770 million. The balance sheet also shows pressure from rising rates: net unrealized losses on available-for-sale securities reached $9.4 billion, which cut shareholders' equity 11.5% year-to-date to $48.6 billion and reduced the tangible common equity ratio to 5.5%. The company reclassified $17.1 billion of securities to held-to-maturity and has suspended buybacks until the MUFG Union Bank deal closes, expected in the second half of 2022 pending regulatory approvals.

    Aug 4, 2022
  14. 2022-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2022

    U.S. Bancorp reported a decrease in net income attributable to common shareholders for the first quarter of 2022, down to $1.466 billion from $2.175 billion in the prior year. This was driven by a $712 million increase in the provision for credit losses, primarily reflecting economic uncertainties and loan growth, compared to a significant benefit in the prior year due to improving economic conditions. Total net revenue saw a modest increase of 2.3% to $5.596 billion, largely due to higher net interest income driven by increased loan and investment securities balances. However, net interest margin slightly decreased to 2.44% from 2.50%. Noninterest expense also rose by 3.6%, impacted by higher compensation and professional services costs. The company is progressing with its planned acquisition of MUFG Union Bank's core regional banking franchise, though closing remains dependent on regulatory approvals, making the timing uncertain. Despite the year-over-year decline in profitability, the company maintained solid capital ratios, exceeding regulatory requirements. Key business segments like Payment Services and Wealth Management showed revenue growth, while Consumer and Business Banking experienced a revenue decline, largely due to lower mortgage banking revenue.

    May 3, 2022
  15. 2021-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2021

    U.S. Bancorp's Q3 2021 10-Q shows steady profitability with a sharp rebound in earnings driven by a reserve release rather than operating growth. Net income attributable to U.S. Bancorp was $2.0 billion ($1.30 diluted EPS) for the quarter, up 28.4% from $1.6 billion ($0.99) a year earlier, and $6.3 billion ($4.04) for the first nine months, up 82.8%. The improvement was largely due to a $163 million provision benefit in Q3 (versus a $635 million expense in Q3 2020) as the allowance for credit losses fell to $6.3 billion, or 2.12% of loans, from $8.0 billion at year-end 2020. Net charge-offs fell to 0.20% of average loans for the quarter, from 0.66% a year earlier. Underlying operating trends were weaker. Total net revenue fell 1.2% year over year to $5.89 billion, as net interest income dropped 1.7% and the net interest margin compressed to 2.53% from 2.67%, reflecting lower rates and lower average loan balances (down 4.6%). Noninterest income fell 0.7%, with mortgage banking revenue down 24.4%, offset by gains in payment services, trust fees and deposit charges. Noninterest expense rose 1.7% to $3.43 billion, pushing the efficiency ratio up to 58.4% from 56.6%. Balance sheet growth came mainly from securities (investment securities up 9.2% year to date) and deposits (up 3.1%), while loans were flat. The most significant strategic development is the pending acquisition of MUFG Union Bank's core regional franchise for approximately $8.0 billion ($5.5 billion cash plus about 44 million shares), expected to add roughly $105 billion in assets, $58 billion in loans and $90 billion in deposits, with closing expected in the first half of 2022. The company suspended share repurchases from the start of Q3 2021 to build capital ahead of the deal. Capital ratios remain strong, with a CET1 ratio of 10.2% and a leverage ratio of 8.7%, all above well-capitalized requirements.

    Nov 2, 2021
  16. 2021-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2021

    U.S. Bancorp reported second-quarter 2021 net income attributable to the company of $2.0 billion, or $1.28 per diluted share, up sharply from $689 million ($0.41) a year earlier. The improvement was driven almost entirely by a swing in the provision for credit losses, which was a $170 million benefit in Q2 2021 versus a $1.7 billion expense in Q2 2020, as the company released reserves on improving credit quality and a stronger economic outlook. Underlying operations were softer: total net revenue fell 0.9% to $5.8 billion, with net interest income down 2.0% on lower rates and lower loan balances, while noninterest expense rose 2.1% to $3.4 billion. Return on average assets was 1.44% and return on average common equity was 16.3%, compared with 0.51% and 5.3% a year earlier. Balance sheet trends point to continued liquidity-driven growth alongside pressure on lending. Average investment securities rose 32.9% year over year, while average total loans fell 7.5% as corporate customers paid down capital-markets-funded borrowings and card balances declined. Period-end deposits reached $437.2 billion, up 1.7% from year-end 2020, with noninterest-bearing deposits up 14.4%. Asset quality improved, with nonperforming assets down 18.4% to $1.06 billion and the allowance for credit losses falling to $6.6 billion (2.23% of loans) from $8.0 billion at year-end 2020. Capital remained strong, with common equity tier 1 at 9.9% and the company continuing its share repurchase program under a $3.0 billion authorization. The key investor questions are how much of the earnings strength is repeatable once reserve releases fade and whether net interest income can stabilize in a low-rate environment. Management expects nonperforming assets to keep declining and charge-offs to normalize over time, but notes that rising inflation, diminishing stimulus support, and select COVID-exposed sectors remain risks. Net interest margin compressed to 2.53% from 2.62%, reflecting mix shifts and higher premium amortization on securities.

    Aug 3, 2021
  17. 2021-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2021

    U.S. Bancorp's first-quarter 2021 results show a sharp swing from the prior-year period, driven almost entirely by credit provisioning. Net income attributable to U.S. Bancorp was $2.3 billion, or $1.45 per diluted share, versus $1.2 billion, or $0.72, a year earlier. Return on average assets rose to 1.69% from 0.95%, and return on average common equity rose to 19.0% from 9.7%. The improvement came despite a 5.2% decline in total net revenue to $5.47 billion, as net interest income fell 5.0% on lower rates and higher premium amortization, and noninterest income fell 5.7% on weaker mortgage banking revenue. The swing was driven by a $827 million provision benefit, reflecting a reduced allowance for credit losses as economic conditions improved on stimulus, vaccine availability and fewer COVID-19 cases. Balance sheet trends point to a company holding excess liquidity. Total deposits rose 0.9% to $433.8 billion, with noninterest-bearing deposits up 7.3% in the quarter. Loans declined 1.1% to $294.4 billion as customers paid down residential mortgages, credit cards and commercial real estate, while investment securities grew 14.0% to $156.0 billion. Net interest margin compressed to 2.50% from 2.91%, reflecting lower yields on earning assets, higher premium amortization and deliberate liquidity holdings. Net charge-offs fell to 0.31% of average loans from 0.53%, and nonperforming assets declined 7.4% to $1.2 billion. Capital remained strong and was actively returned to shareholders. The common equity tier 1 ratio rose to 9.9% from 9.7%, and all regulatory ratios exceeded well-capitalized requirements. The company repurchased about 13.4 million shares for roughly $650 million under its $3.0 billion authorization, and it issued $730 million of Series M preferred stock while redeeming Series I. Management noted that Federal Reserve restrictions on capital distributions remain in place through 2021. Investors should weigh the strong headline earnings, which were largely a reserve release, against the structural pressure on net interest income and fee revenue.

    May 4, 2021
  18. 2020-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2020

    U.S. Bancorp's third-quarter 2020 results show a company absorbing the COVID-19 shock through a heavy credit reserve build while its fee businesses held up. Net income attributable to U.S. Bancorp was $1.58 billion, or $0.99 per diluted share, down 17.2% from $1.9 billion, or $1.15, a year earlier. Return on average assets fell to 1.17% from 1.57%, and return on average common equity to 12.8% from 15.3%. The decline was driven by a provision for credit losses of $635 million, up 73%, which included a $120 million increase in the allowance tied to the expected losses on the acquired State Farm Bank credit card portfolio. Nine-month net income was $3.4 billion, or $2.11 per diluted share, versus $5.4 billion, or $3.25, and the nine-month provision reached $3.4 billion. Revenue held up better than earnings. Total net revenue rose 0.7% in the quarter to $5.96 billion, as noninterest income grew 3.7% on strong mortgage banking revenue ($553 million versus $272 million) and commercial products revenue, offsetting a 1.6% decline in net interest income. Net interest margin compressed to 2.67% from 3.02%, reflecting lower rates, higher liquidity holdings and premium amortization, and management expects further pressure in the fourth quarter after the roughly $10 billion State Farm deposit acquisition. Noninterest expense rose 7.2%, including COVID-related costs and digital investment. Payment services revenue fell sharply as consumer and business spending declined. Credit quality deteriorated, with net charge-offs of $515 million (0.66% of average loans), nonperforming assets up 53% to $1.27 billion, and the allowance for credit losses at 2.61% of period-end loans, versus 1.52% at year-end 2019. Management expects nonperforming assets and net charge-offs to rise given current conditions. Capital remained strong, with the common equity tier 1 ratio at 9.4% and all regulatory ratios above well-capitalized levels. Share repurchases were suspended beginning in March 2020, and Federal Reserve restrictions cap dividends at existing rates and prohibit buybacks for the third and fourth quarters of 2020. Book value per share rose to $30.93 from $30.26, while the market value per share fell 35% to $35.85. Investors should weigh the strong fee momentum and capital position against the elevated provisions, margin pressure, and capital distribution limits.

    Nov 5, 2020
  19. 2020-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2020

    U.S. Bancorp reported Q2 2020 net income attributable to the company of $689 million, or $0.41 per diluted share, down 62% from $1.8 billion ($1.09) a year earlier. The decline was driven by a sharp increase in the provision for credit losses to $1.7 billion (from $365 million), as the company adopted expected-loss (CECL) accounting and reserved for deteriorating economic conditions tied to COVID-19. Total net revenue was roughly flat at $5.8 billion, with 0.3% growth: noninterest income rose 2.4% (strong mortgage banking revenue from refinancing) and offset a 3.2% decline in net interest income, while noninterest expense rose 5.2% to $3.3 billion. Return on average equity fell to 5.3% from 15.0%. Balance sheet growth was substantial. Total assets reached $546.7 billion (up 10.3% from year-end 2019), driven by a 14.2% jump in deposits to $413.3 billion, largely from government stimulus and customers holding liquidity. Loans grew 4.8% to $310.3 billion, led by commercial loans (up 15.8%, mainly credit facility draws and Paycheck Protection Program lending), while credit card balances fell 14.2%. The allowance for credit losses rose to $7.9 billion (2.54% of loans) from $4.5 billion, and nonperforming assets increased 41.5% to $1.2 billion. Management expects nonperforming assets and net charge-offs to rise further. Capital remains well above regulatory 'well-capitalized' thresholds (CET1 of 9.0%), but the company suspended buybacks in March 2020 (except for employee-benefit related repurchases), and the Federal Reserve has limited capital distributions for the third quarter. Management guided to a relatively stable net interest margin in Q3 and lower mortgage banking revenue, with payment services revenue expected to remain pressured.

    Aug 6, 2020
  20. 2020-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2020

    U.S. Bancorp's first-quarter 2020 10-Q shows a sharp earnings decline driven by the COVID-19 pandemic. Net income attributable to U.S. Bancorp fell 31.1% to $1.2 billion ($0.72 diluted EPS, versus $1.00 a year earlier), and return on average common equity dropped to 9.7% from 14.3%. The company booked a $993 million provision for credit losses, up $616 million year over year, including a $600 million pandemic-driven reserve build on top of a $1.5 billion day-one CECL adoption increase. The allowance for credit losses rose to 2.07% of period-end loans from 1.52%. Revenue held up better than earnings. Total net revenue rose 3.5% to $5.8 billion, as mortgage banking revenue more than doubled on refinancing activity and trust and investment management fees grew. These gains were partly offset by net interest income falling 1.1% amid declining rates, a net interest margin compressing to 2.91% from 3.16%, and payment services revenue weakening in late March as consumer and business spending collapsed. Noninterest expense rose 7.4%, including roughly $100 million of direct COVID-related costs. Balance sheet growth was rapid and defensive in nature. Loans rose 7.5% to $318.3 billion, driven mainly by commercial borrowers drawing on credit lines, and deposits rose 9.1% to $394.9 billion. Management has suspended its share repurchase program through the second quarter of 2020 to preserve capital, and the common equity tier 1 ratio eased to 9.0% from 9.1%. Management expects further margin pressure, rising nonperforming assets and higher net charge-offs in coming quarters, and it stated that it would be able to maintain the dividend at its current level even if a downturn persisted through most of 2020.

    May 7, 2020
  21. 2019-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2019

    U.S. Bancorp reported third-quarter 2019 net income attributable to the company of $1.9 billion, or $1.15 per diluted share, up from $1.06 a year earlier, with return on average assets of 1.57 percent and return on average common equity of 15.3 percent. Total net revenue rose 3.9 percent to $5.9 billion, driven by a 0.9 percent increase in net interest income and an 8.1 percent increase in noninterest income, led by mortgage banking, payment services and commercial products. Noninterest expense grew 3.3 percent, mainly from personnel and technology costs, and the provision for credit losses rose 7.0 percent to $367 million on loan growth. For the first nine months, diluted EPS was $3.25, up 6.9 percent. Balance sheet growth was steady. Loans reached $294.6 billion, up 2.7 percent year-to-date, led by residential mortgages, commercial and retail loans, while deposits grew 4.1 percent to $359.7 billion. Net interest margin compressed to 3.02 percent from 3.15 percent, reflecting a flatter yield curve, deposit mix shifts and migration out of noninterest-bearing deposits. Credit quality remained stable, with nonperforming assets slightly lower at $979 million and net charge-offs of 0.48 percent of average loans, though commercial, CRE and credit card charge-offs rose year over year. Capital remained strong. The Basel III standardized common equity tier 1 ratio was 9.6 percent, up from 9.1 percent. The board approved a $3.0 billion repurchase authorization for July 2019 to June 2020, and the company repurchased 14.3 million shares in the quarter. The quarterly dividend was raised 13.5 percent to $0.42 per share. Management also flagged the upcoming CECL adoption on January 1, 2020, which is expected to increase the allowance for credit losses by $1.2 billion to $1.6 billion, and said it asked the Federal Reserve to increase its buyback authorization to reduce the CET1 ratio toward roughly 9.0 percent.

    Nov 8, 2019
  22. 2019-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2019

    U.S. Bancorp reported second-quarter 2019 net income attributable to the company of $1.8 billion, or $1.09 per diluted share, up from $1.02 a year earlier. Return on average assets was 1.55% and return on average common equity was 15.0%, compared with 1.54% and 15.3% in the prior-year quarter. Total net revenue rose 3.2% to $5.8 billion, driven by a 3.4% increase in net interest income and a 2.9% increase in noninterest income. Noninterest expense grew 2.2%, so the efficiency ratio improved slightly to 54.3% from 54.8%. Provision for credit losses rose 11.6% to $365 million, largely reflecting loan growth and higher credit card net charge-offs. Balance sheet growth was steady. Total loans reached $292.0 billion, up 1.8% year-to-date, led by residential mortgages, commercial and other retail loans. Deposits grew 2.2% to $353.2 billion, though noninterest-bearing deposits fell about 7% as customers moved balances into interest-bearing products. The net interest margin was essentially flat year over year at 3.13%, as higher short-term rates and securities reinvestment offset a flatter yield curve and higher deposit costs. Asset quality remained stable: nonperforming assets declined 3.6% to $953 million, and the allowance for credit losses was 1.53% of period-end loans. Capital remained strong. The Basel III standardized common equity Tier 1 ratio rose to 9.5% from 9.1%, and the company repurchased about 14.9 million shares in the quarter. The board also authorized a new $3.0 billion repurchase program covering July 2019 through June 2020. Key risks flagged in the filing include an interest rate sensitivity profile that shows net interest income declining under a 200 basis point rate cut, a 12.8% drop in market value of equity under the same scenario, tariff and trade policy uncertainty, and the pending adoption of CECL, which management expects will increase its allowance.

    Aug 1, 2019
  23. 2019-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2019

    U.S. Bancorp (USB) reported a solid first quarter of 2019, with net income attributable to U.S. Bancorp of $1.7 billion, or $1.00 per diluted common share, up from $0.96 a year earlier. Return on average assets was 1.49% and return on average common equity was 14.3%, roughly flat to slightly lower than the prior year's 1.50% and 14.9%. Total net revenue rose 2.0% to $5.58 billion, driven by a 2.9% increase in net interest income (2.8% taxable-equivalent) from rising rates, loan growth and higher securities yields, and a 0.8% increase in noninterest income led by merchant processing and corporate payment products. Noninterest expense grew 1.0%, while the provision for credit losses rose 10.6% to $377 million, with net charge-offs of $367 million (0.52% annualized, up from 0.49%), mainly from credit card and commercial loans. Balance sheet growth was modest. Period-end loans rose 0.3% to $287.7 billion, while deposits grew 0.8% to $348.1 billion. Nonperforming assets edged up 1.6% to $1.0 billion, and the allowance for credit losses held at 1.55% of period-end loans. Capital remained strong: the Basel III standardized common equity tier 1 ratio improved to 9.3% from 9.1%, and tangible common equity to tangible assets reached 7.9%. The company repurchased $648 million of common stock in the quarter under its $3.0 billion program, and book value per share rose 8.6% year over year to $28.81. For investors, the key takeaways are steady earnings growth, improving capital ratios and disciplined expense control, offset by a slight rise in credit costs and some pressure on the net interest income sensitivity profile. Management also flagged that a 200 bps decline in rates would reduce net interest income by about 3.25% over 12 months, and that the company expects its allowance for credit losses to increase when the CECL standard takes effect no later than January 1, 2020.

    May 9, 2019
  24. 2018-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2018

    U.S. Bancorp's Q3 2018 results were strong. Net income attributable to U.S. Bancorp was $1.8 billion, or $1.06 per diluted share, up from $0.88 in Q3 2017, and return on average assets and return on average common equity rose to 1.58% and 15.5%. For the first nine months, diluted EPS was $3.04 (up 19.2%) and net income was $5.2 billion. Total net revenue grew 2.4% in the quarter, driven by a 2.4% increase in net interest income that benefited from rising rates, and a 3.3% increase in noninterest income led by payment services and trust and investment management fees. Noninterest expense rose 1.5%, while the provision for credit losses fell 4.7% to $343 million. Efficiency held at 53.5%, and credit metrics were stable to improving, with nonperforming assets down 16.3% year-to-date to $1.0 billion and net charge-offs steady at 0.46% of average loans. The balance sheet shows some pressure. Total deposits fell 4.6% from year-end 2017 to $331.2 billion, driven by lower noninterest-bearing and savings balances, while time deposits rose 16.7% and long-term debt rose 26.8% to $40.9 billion. Net unrealized losses on available-for-sale securities widened to $2.0 billion from $580 million at year-end, reflecting higher interest rates. Capital remained strong, with a 9.0% CET1 ratio under the Basel III standardized approach, a 7.7% tangible common equity to tangible assets ratio, and a $3.0 billion buyback authorization in effect. The company also raised its quarterly dividend 23% to $0.37 and issued $575 million of Series K preferred stock. For investors, the key takeaways are sustained earnings momentum from rate tailwinds and fee growth, disciplined credit, and high capital return. The main watch items are deposit outflows, funding mix shifts toward wholesale and term funding, and mark-to-market pressure on the securities portfolio.

    Nov 2, 2018
  25. 2018-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2018

    U.S. Bancorp (USB) reported a solid second quarter of 2018, with net income attributable to U.S. Bancorp of $1.8 billion ($1.02 per diluted share), up 16.7% from $1.5 billion ($0.85) a year earlier. Return on average assets rose to 1.54% and return on average common equity to 15.3%, from 1.35% and 13.4%. The improvement was driven by 3.5% total net revenue growth, with net interest income up 4.9% on rising interest rates and earning-asset growth, and noninterest income up 2.8% on payment services and trust fees. Income tax expense fell 21.9% year over year, reflecting the lower federal tax rate under 2017 tax reform, which helped lift net income well ahead of revenue growth. For the first six months, diluted EPS was $1.98, up 19.3%. Credit quality remained stable to improving. The provision for credit losses fell 6.6% to $327 million, net charge-offs were $332 million (0.48% of average loans), and nonperforming assets declined 9.1% to $1.1 billion. The allowance for credit losses stood at 1.57% of period-end loans. Total average deposits grew 1.1%, but noninterest-bearing deposits fell 4.5%, and period-end deposits declined 2.1% since year-end 2017. Funding shifted toward long-term debt, which rose 15.2% to $37.2 billion, and time deposits. Expense growth of 3.4% was modestly ahead of the 3.5% revenue growth, so the efficiency ratio edged down to 54.8%. Capital remained strong. The Basel III standardized common equity tier 1 ratio was 9.1%, and tangible common equity to tangible assets was 7.8%. The board authorized a new $3.0 billion repurchase program for July 2018 to June 2019, and the company repurchased about 13.2 million shares in the quarter. Key risks flagged include interest rate sensitivity (net interest income falls 1.55% in a 50 bps immediate decline), a $1.6 billion net unrealized securities loss, the pending deferred prosecution agreement related to BSA/AML compliance, and an ongoing RMBS trustee lawsuit.

    Aug 2, 2018
  26. 2018-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2018

    U.S. Bancorp (USB) reported a solid first quarter of 2018, with net income attributable to U.S. Bancorp of $1.7 billion, or $0.96 per diluted share, up from $0.82 a year earlier. Return on average assets rose to 1.50% from 1.35% and return on average common equity to 14.9% from 13.3%. Growth was driven by a 6.3% increase in net interest income (5.5% taxable-equivalent) from rising rates and loan growth, and a 1.7% rise in noninterest income led by payment services, trust and investment management fees, and deposit service charges. Total net revenue grew 3.4%, while noninterest expense rose 5.0%, largely from compensation tied to hiring, merit increases, and a shorter stock-award vesting period. Credit costs were stable, with the provision for credit losses essentially flat at $341 million and net charge-offs at 0.49% of average loans. Balance sheet trends were mixed. Period-end loans fell 0.9% to $277.9 billion, mainly from credit card seasonality, lower CRE, and the reclassification of $2.0 billion of federally guaranteed student loans to held-for-sale. Deposits declined 0.8% to $344.5 billion, with noninterest-bearing deposits down 6.1% in the quarter, while time deposits rose 18.7%. Net unrealized losses on available-for-sale securities widened to $1.4 billion as rates rose, which pushed accumulated other comprehensive income to a $2.2 billion loss. Capital remained strong, with a Basel III standardized CET1 ratio of 9.0% versus 9.3% at year-end, and all regulatory ratios above well-capitalized levels. Investors should also note the $453 million net payment under a February 2018 deferred prosecution agreement and related regulatory settlements tied to legacy Bank Secrecy Act/anti-money laundering failures. That amount had been accrued at year-end, and the company paid $613 million in total penalties during the quarter. The quarter also benefited from an effective tax rate of 17.7% after tax reform and a favorable tax settlement, a level that is unlikely to repeat in full.

    May 3, 2018
  27. 2017-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2017

    U.S. Bancorp (USB) reported a solid third quarter of 2017, with net income attributable to U.S. Bancorp of $1.6 billion, or $0.88 per diluted share, up from $0.84 a year earlier. Return on average assets was 1.38% and return on average common equity was 13.6%. Growth was driven mainly by net interest income, which rose 8.4% to $3.1 billion on loan growth and higher rates. Total net revenue increased 4.1% to $5.6 billion, while noninterest income slipped 0.9% as lower mortgage banking revenue offset gains in payment services, trust fees and treasury management. Expenses rose 3.7%, mainly on compensation tied to hiring, compliance programs and merit increases, and the provision for credit losses increased 10.8% to $360 million. Credit quality remained stable and capital strengthened. Nonperforming assets fell 22% from year-end 2016 to $1.25 billion, and the allowance for credit losses was 1.58% of period-end loans. Net charge-offs rose modestly, driven by credit cards. The common equity tier 1 ratio under the Basel III transitional standardized approach reached 9.6%, up from 9.4%, and book value per share rose 4.8% to $25.98. The company also raised its quarterly dividend 7.1% to $0.30 and authorized up to $2.6 billion in share repurchases for July 2017 through June 2018. The main watch items are rising credit card losses, a 2016-to-2017 decline in mortgage banking revenue tied to fewer refinancings, and heavier reliance on time deposits and wholesale funding in parts of the balance sheet. Investors should also note that the company is cooperating with a U.S. Attorney's Office investigation related to its Bank Secrecy Act/anti-money laundering program, with any resolution potentially involving fines.

    Nov 3, 2017
  28. 2017-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2017

    U.S. Bancorp's second-quarter 2017 results show steady, moderately growing earnings. Net income attributable to U.S. Bancorp was $1.5 billion, or $0.85 per diluted share, up 2.4% from $0.83 a year earlier, though net income itself fell 1.4% because the prior-year quarter included a Visa Europe equity gain. For the first six months, diluted EPS rose 4.4% to $1.66, with net income up 2.2% to $3.0 billion. Return on average assets was 1.35% and return on average common equity was 13.4%, with ROA down from 1.43% a year earlier. Revenue growth came mainly from net interest income, which rose 6.0% in the quarter on loan growth and higher rates, with the net interest margin steady at 3.04%. Noninterest income fell 5.5% in the quarter, mostly due to the non-recurring Visa Europe gain, though payment services, trust, and treasury management fees grew. Noninterest expense rose 1.0% in the quarter, held back by the absence of 2016 legal reserves and a charitable contribution, while compensation climbed 10.9% on hiring and merit increases. Provision for credit losses rose 7.0% to $350 million, with net charge-offs of 0.49% of average loans driven by credit card and other retail losses. Balance sheet and capital remained strong. Total loans reached $277.3 billion (up 1.5% year-to-date) and deposits reached $347.3 billion (up 3.8%). Nonperforming assets fell 15.8% to $1.3 billion, and the allowance covered 383% of nonperforming loans. Basel III transitional CET1 was 9.5%, and the company repurchased shares and announced a new $2.6 billion buyback for July 2017 to June 2018. Dividends per share rose 9.8% to $0.28.

    Aug 4, 2017
  29. 2017-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2017

    U.S. Bancorp (USB) reported a solid first quarter of 2017, with net income attributable to U.S. Bancorp of $1.47 billion, or $0.82 per diluted share, up from $0.76 a year earlier. Return on average assets rose to 1.35% and return on average common equity to 13.3%. Total net revenue grew 5.7% to $5.32 billion, driven by a 3.9% rise in net interest income and an 8.4% rise in noninterest income, the latter led by payment services, trust and investment management fees, and mortgage banking. Growth was partly offset by a 7.1% increase in noninterest expense, mainly from compensation tied to hiring, compliance programs, and merit and variable pay, which pushed the efficiency ratio up to 55.6% from 54.6%. Credit quality was broadly stable. The provision for credit losses rose 4.5% to $345 million and net charge-offs were $335 million (0.50% of average loans), with higher credit card and other retail losses offset by lower commercial and residential mortgage losses. Nonperforming assets fell 6.7% to $1.5 billion, and the allowance for credit losses reached 1.60% of period-end loans. Average deposits grew 11.0% year over year, while the net interest margin compressed to 3.03% from 3.06%, reflecting higher deposit rates and loan mix. Capital remained strong: the Basel III transitional CET1 ratio was 9.5%, and the company repurchased $594 million of common stock during the quarter under its $2.6 billion program. For investors, the key points are steady earnings growth and fee-income diversification alongside rising expenses and a margin under modest pressure. The company also issued $1.0 billion of Series J preferred stock and called $1.1 billion of Series G preferred. Management flagged that the forthcoming CECL accounting standard is expected to increase the allowance for credit losses when adopted.

    May 5, 2017
  30. 2016-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2016

    U.S. Bancorp reported Q3 2016 net income attributable to the company of $1.5 billion, or $0.84 per diluted share, up 0.9% in dollar terms and 3.7% per share versus Q3 2015, with return on average assets of 1.36% and return on average common equity of 13.5%. Total net revenue rose 4.7% to $5.4 billion, driven by a 4.5% increase in net interest income (loan growth and higher rates) and a 4.6% rise in noninterest income, led by mortgage banking (up 40%) and trust and investment management fees. Noninterest expense grew 5.6% to $2.9 billion, reflecting compensation, technology and a new FDIC surcharge, while the provision for credit losses rose 15.2% to $325 million, pushing the efficiency ratio up to 54.5%. Net interest margin compressed to 2.98% from 3.04% a year earlier. The balance sheet grew meaningfully: period-end loans reached $271.3 billion (up 4.0% year-to-date), deposits rose 11.4% to $334.6 billion, and total assets reached $454.1 billion. Credit quality showed some pressure concentrated in energy: nonperforming assets rose 9.3% to $1.66 billion, driven by a $240 million increase in energy-related nonperforming commercial loans, while energy loans fell to $2.7 billion but with an allowance coverage of 8.9%. Capital remained strong, with a transitional Basel III CET1 ratio of 9.5% and a fully implemented standardized CET1 ratio of 9.3%, and the board raised the quarterly dividend 9.8% to $0.28 and authorized up to $2.6 billion in buybacks through June 2017. Year-to-date results were supported by a one-time $180 million equity investment gain tied to the Visa Europe sale, partly offset by a $110 million legal and regulatory reserve increase and a $40 million charitable contribution in Q2. Investors should note the underlying trend of modest revenue growth, expense growth running ahead of revenue, a compressing margin, and rising energy-sector credit stress.

    Nov 4, 2016
  31. 2016-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2016

    U.S. Bancorp reported second-quarter 2016 net income attributable to the company of $1.52 billion, or $0.83 per diluted share, up 3.8% from $0.80 a year earlier. Return on average assets was 1.43% and return on average common equity was 13.8%, versus 1.46% and 14.3% in the prior-year quarter. Results were helped by roughly $180 million of equity investment income tied to the sale of its Visa Europe membership, which together with a $110 million legal and regulatory reserve increase and a $40 million charitable contribution netted to about a $0.01 benefit per share. Total net revenue rose 8.1% to $5.45 billion, driven by 4.5% growth in net interest income and a 12.2% increase in noninterest income, while noninterest expense rose 11.6% to $2.99 billion. Balance sheet growth was steady. Average loans rose 8.1% year over year to $266.6 billion, led by commercial, credit card (including a roughly $1.5 billion acquired portfolio), and residential mortgage growth. Period-end deposits grew 5.7% since year-end 2015 to $317.6 billion. Credit quality was stable overall, with net charge-offs at 0.48% of average loans, but nonperforming assets rose 9.8% to $1.67 billion, mainly due to a $203 million increase in energy-related nonperforming commercial loans. Energy loans were 1.1% of total loans, and the allowance for energy loans rose to 8.8% of energy loan balances. Capital remained strong, with Basel III transitional common equity tier 1 at 9.5% and fully implemented standardized CET1 estimated at 9.3%. The board authorized a new $2.6 billion share repurchase program covering July 2016 through June 2017, and the company repurchased about 15.7 million shares in the quarter. Management flagged Brexit as a source of uncertainty and noted a planned FDIC premium surcharge of roughly $20 million per quarter beginning in the third quarter of 2016.

    Aug 5, 2016
  32. 2016-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2016

    U.S. Bancorp reported Q1 2016 net income attributable to the company of $1.4 billion, or $0.76 per diluted share, flat with Q1 2015. Return on average assets fell to 1.32% from 1.44% and return on average common equity to 13.0% from 14.1%. Total net revenue rose 2.7% to $5.04 billion, driven by a 4.9% increase in net interest income to $2.9 billion on loan growth and higher rates. Noninterest income was essentially flat at $2.15 billion, as lower mortgage banking revenue (down 22.1%) offset gains in card and trust fees. Noninterest expense rose 3.2% to $2.75 billion, and the efficiency ratio edged up to 54.6%. Credit quality was the main negative. The provision for credit losses rose 25% to $330 million, and net charge-offs increased to $315 million, reflecting deterioration in the energy-related commercial loan portfolio. Energy loans are only 1.3% of total loans, but criticized commitments more than doubled to $4.2 billion from $1.9 billion, and energy nonperforming assets rose to $276 million from $19 million. Total nonperforming assets increased 12.9% to $1.7 billion, and the allowance for credit losses fell to 1.63% of period-end loans from 1.65%. Excluding energy, nonperforming assets declined 4.1%. Capital and balance sheet remained strong. The Basel III transitional common equity tier 1 ratio was 9.5%, the fully implemented standardized ratio was an estimated 9.2%, and all regulatory ratios exceeded well-capitalized requirements. Shareholders' equity grew 1.4% to $46.8 billion, and the company repurchased about $669 million of stock remaining under its authorization. Loans grew 1.4% to $264.5 billion and deposits rose 2.0% to $306.3 billion. The company also faces ongoing regulatory matters, including a 2015 OCC consent order related to Bank Secrecy Act/anti-money laundering compliance.

    May 6, 2016
  33. 2015-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2015

    U.S. Bancorp's Q3 2015 10-Q shows steady, modest growth. Net income attributable to U.S. Bancorp was $1.5 billion ($0.81 per diluted share) versus $1.5 billion ($0.78) a year earlier, and the nine-month figure was $4.4 billion ($2.36 per diluted share, up 3.1%). Results were supported by a $135 million gain on the sale of Visa Class B shares, partly offset by a $58 million student loan market adjustment. Total net revenue rose 3.1% in the quarter, driven by 2.7% growth in net interest income and 3.7% growth in noninterest income, while noninterest expense rose 6.2% on higher compensation, benefits and risk/compliance costs. The efficiency ratio deteriorated to 53.9% from 52.4%. Credit quality continued to improve. The provision for credit losses fell 9.3% to $282 million, net charge-offs declined to 0.46% of average loans, and nonperforming assets dropped 13.3% to $1.6 billion. The allowance for credit losses covered nonperforming loans 347%. Net interest margin compressed to 3.04% from 3.16%, reflecting a shift in loan mix, lower reinvestment rates on securities and the wind-down of the Checking Account Advance product. Balance sheet growth was broad: loans rose 2.8% year-to-date to $254.8 billion, deposits rose 4.4% to $295.3 billion, and total assets reached $415.9 billion. Capital remained strong. The Basel III transitional CET1 ratio was 9.6% (standardized) and 13.0% (advanced), and all regulatory ratios exceeded well-capitalized thresholds. The company repurchased about 15.6 million shares in the quarter under a $3.0 billion authorization, leaving $1.7 billion remaining, and raised its quarterly dividend 4.1% to $0.255. The filing also discloses a 2015 OCC consent order related to Bank Secrecy Act/AML compliance, entered after the period end, and ongoing mortgage servicing and RMBS trustee litigation.

    Nov 4, 2015
  34. 2015-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2015

    U.S. Bancorp reported net income attributable to the company of $1.5 billion, or $0.80 per diluted share, for Q2 2015, essentially flat with the $0.78 reported a year earlier (EPS up 2.6%). Return on average assets fell to 1.46% from 1.60% and return on average common equity fell to 14.3% from 15.1%. Total net revenue declined 2.8% to $5.04 billion, as a 7.0% drop in noninterest income (driven by lower Visa stock sale gains and mortgage banking revenue) more than offset a 0.9% rise in net interest income. Expense discipline helped: noninterest expense fell 2.6% to $2.68 billion, mainly because the prior-year quarter included an FHA settlement, and the provision for credit losses fell 13.3% to $281 million. Credit quality continued to improve. Nonperforming assets declined 12.8% to $1.58 billion from year-end 2014, the allowance for credit losses was $4.3 billion (1.74% of period-end loans), and annualized net charge-offs were 0.48% of average loans versus 0.58% a year earlier. Balance sheet growth was concentrated in liquidity: total assets rose 4.1% to $419 billion and deposits rose 5.0% to $296.8 billion, while the net interest margin compressed to 3.03% from 3.27% as the company grew lower-yielding securities and lost loan fees from the wind-down of Checking Account Advance. Average investment securities rose 16.9% year over year, largely to meet liquidity coverage ratio requirements. Capital remained strong and the company returned capital to shareholders. Common equity tier 1 under the Basel III transitional standardized approach was 9.5%, down from 9.7% at year-end, while the fully implemented standardized ratio was 9.2% and the advanced-approach ratio was 12.4%. The board raised the quarterly dividend 4.1% to $0.255 per share, and the company repurchased 14.5 million shares in the quarter under a $3.022 billion authorization running through June 2016. Investors should weigh the modest earnings growth against falling revenue, margin compression, and the one-time nature of the prior-year expense comparison.

    Aug 5, 2015
  35. 2015-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2015

    U.S. Bancorp reported net income attributable to U.S. Bancorp of $1.431 billion for Q1 2015, or $0.76 per diluted share, up from $0.73 a year earlier (diluted EPS +4.1%). Return on average assets fell to 1.44% from 1.56%, and return on average common equity to 14.1% from 14.6%. Total net revenue rose 1.9% to $4.906 billion, driven by a 1.7% increase in net interest income and a 2.2% increase in noninterest income. Net interest margin compressed meaningfully to 3.08% from 3.35%, reflecting growth in lower-yielding investment securities, lower loan fees (including the wind-down of the Checking Account Advance product), and lower rates on new loans. Noninterest expense rose 4.8% to $2.665 billion, pushing the efficiency ratio up to 54.3% from 52.9%, largely due to compensation, benefits, pension costs and mortgage servicing expenses. Credit quality improved. The provision for credit losses fell 13.7% to $264 million, net charge-offs declined to $279 million (0.46% of average loans versus 0.59%), and nonperforming assets dropped 6.2% to $1.7 billion. The allowance for credit losses was $4.35 billion, or 1.77% of period-end loans. Capital remained strong: Basel III transitional common equity tier 1 ratio was 9.6% (down from 9.7%), tangible common equity to tangible assets rose to 7.6%, and the fully implemented standardized CET1 ratio improved to 9.2%. The board approved a new repurchase authorization of up to $3.022 billion covering April 2015 through June 2016, and the company repurchased about $464 million of stock during the quarter. Period-end loans declined 1.0% to $245.3 billion, largely because roughly $3 billion of student loans were transferred to held for sale, while investment securities grew 1.4% and long-term debt rose 8.8% to $35.1 billion.

    May 6, 2015
  36. 2014-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2014

    U.S. Bancorp reported third-quarter 2014 net income attributable to the company of $1.5 billion, or $.78 per diluted share, up from $.76 a year earlier, with return on average assets of 1.51% and return on average common equity of 14.5%. Total net revenue rose 2.0% to $4.99 billion, driven by a 1.3% increase in net interest income and a 3.0% increase in noninterest income. Noninterest expense grew 1.9% to $2.6 billion, mainly on higher compensation, and the provision for credit losses rose 4.4% to $311 million even as net charge-offs stayed near historically low levels of 0.55% of average loans. Nine-month results were supported by a second-quarter $214 million gain on the Visa Class B share sale, which was largely offset by a $200 million FHA-related DOJ settlement, leaving diluted EPS of $2.29 versus $2.25. Credit quality continued to improve year over year: nonperforming assets fell 5.6% to $1.9 billion, the allowance covered 1.80% of period-end loans, and the loan-loss provision declined 11.5% for the nine months. Average loans grew 6.3% and average deposits grew 7.4%, while the net interest margin compressed to 3.16% from 3.43%, reflecting lower reinvestment yields and a larger, lower-yielding securities book. Balance sheet growth was substantial. Investment securities rose 21.4% to $96.9 billion, largely in agency MBS ahead of liquidity coverage ratio requirements, and long-term debt rose 53.5% to $30.8 billion, funding loan growth and securities purchases. Capital remained strong: the Basel III transitional common equity tier 1 ratio was 9.7%, and the tangible common equity ratio was 7.6%. The company repurchased about 15.7 million shares in the quarter under a $2.3 billion authorization, and it raised its quarterly dividend 6.5% to $.245. Management expects nonperforming assets and net charge-offs to remain relatively stable in the fourth quarter.

    Nov 6, 2014
  37. 2014-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2014

    U.S. Bancorp reported second-quarter 2014 net income attributable to the company of $1.5 billion, or $.78 per diluted share, versus $1.5 billion, or $.76, a year earlier. Return on average assets was 1.60% and return on average common equity 15.1%, both lower than the prior year. Results included two offsetting items: a $200 million DOJ settlement over FHA mortgage endorsement practices, which pushed noninterest expense up 7.7% year over year, and a $214 million gain on the sale of 3.0 million Visa Class B shares, which lifted noninterest income. Combined, the two items had no impact on diluted EPS. Total net revenue rose 4.9% to $5.2 billion, driven by 2.7% growth in net interest income and 7.7% growth in noninterest income, while the net interest margin compressed to 3.27% from 3.43%. Credit quality continued to improve. The provision for credit losses fell 10.5% to $324 million, and net charge-offs declined to 0.58% of average loans from 0.70%. Nonperforming assets dropped 4.6% to $1.9 billion, and the allowance covered 1.82% of period-end loans. Balance sheet growth was strong: period-end loans rose 3.7% to $243.9 billion, investment securities rose 13.2% to $90.4 billion, and deposits rose 5.4% to $276.3 billion. The June Charter One branch acquisition added roughly $969 million of loans and $4.8 billion of deposits. Long-term debt rose 29% to $25.9 billion to fund that growth. Capital remained strong and the company returned more to shareholders. The Basel III transitional standardized common equity tier 1 ratio was 9.6%, and tangible common equity to tangible assets was 7.5%. Management approved a 6.5% dividend increase to $.245 per quarter and continued a $2.3 billion repurchase authorization, buying back about 15.3 million shares in the quarter. Book value per share rose 10.8% to $20.98.

    Aug 6, 2014
  38. 2014-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2014

    U.S. Bancorp reported first-quarter 2014 net income attributable to U.S. Bancorp of $1.4 billion, or $.73 per diluted share, flat with the prior-year quarter and down 2.2% in dollar terms. Return on average assets fell to 1.56% from 1.65% and return on average common equity fell to 14.6% from 16.0%. Total net revenue declined 1.2% year over year to $4.8 billion, as a 2.6% drop in noninterest income (driven by a 41% decline in mortgage banking revenue) offset flat net interest income. Net interest margin compressed to 3.35% from 3.48%, reflecting lower reinvestment rates on securities and lower loan yields, while average earning assets grew 3.9%. Credit quality continued to improve. The provision for credit losses fell 24.1% to $306 million, net charge-offs fell to $341 million (0.59% of average loans from 0.79%), and nonperforming assets were essentially flat at $2.0 billion. Noninterest expense rose 3.0% to $2.5 billion, mainly on higher compensation tied to business initiatives, partly offset by the prior-year insurance recoveries and the adoption of new affordable housing tax credit accounting. Management guided that net charge-offs will stay relatively stable in the second quarter, with the provision rising modestly. The balance sheet grew over the quarter, with loans up 1.3% to $238.4 billion and investment securities up 7.0% to $85.5 billion, funded by $4.8 billion of new long-term debt issuance. Capital strengthened, with the Basel III transitional common equity tier 1 ratio at 9.7% and all regulatory ratios above well-capitalized levels. The board also approved a new $2.3 billion share repurchase authorization for April 2014 through March 2015, and quarterly dividends per share rose 17.9% year over year to $.23.

    May 7, 2014
  39. 2013-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2013

    U.S. Bancorp reported third-quarter 2013 net income attributable to the company of $1.47 billion, or $0.76 per diluted share, roughly flat with $1.47 billion, or $0.74, a year earlier. Return on average assets was 1.65% and return on average common equity was 15.8%, versus 1.70% and 16.5% in the prior-year quarter. Earnings held up despite a 5.6% decline in total net revenue to $4.89 billion, as lower mortgage banking revenue (down 36.8%) and a 2.5% drop in net interest income offset gains in other fee lines. The improvement was driven mainly by credit: the provision for credit losses fell 38.9% to $298 million, and net charge-offs dropped to 0.57% of average loans from 0.99%. Noninterest expense also fell 1.7% to $2.57 billion. The balance sheet grew, with period-end loans up 3.6% year to date to $231.4 billion, led by residential mortgages (up 14%), commercial and commercial real estate loans. Deposits rose 5.0% to $261.7 billion, while long-term debt fell 26.5% to $18.8 billion, largely from deconsolidating certain VIEs and medium-term note maturities. Nonperforming assets declined 17.2% to $2.2 billion, and capital ratios strengthened: Tier 1 capital was 11.2%, the Basel III CET1 estimate was 8.6%, and the leverage ratio was 9.6%. Management also repurchased 17.8 million shares in the quarter and raised the quarterly dividend 18% to $0.23. For investors, the key tension is between stable earnings and a shrinking revenue base. Net interest margin compressed to 3.43% from 3.59%, and mortgage banking, which had been a major contributor, is declining sharply. Credit quality improvement is the main earnings support, and the company's guidance is for relatively stable nonperforming assets and net charge-offs in the fourth quarter.

    Nov 1, 2013
  40. 2013-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2013

    U.S. Bancorp reported net income attributable to the company of $1.48 billion for Q2 2013, or $0.76 per diluted share, up from $0.71 a year earlier, with ROA of 1.70% and ROE of 16.1%. Results were supported by lower credit costs and expenses, offset by a 2.4% decline in total net revenue. Net interest income fell 1.5% on a lower net interest margin (3.43% vs. 3.58%), while noninterest income declined 4.4%, driven mainly by weaker mortgage banking revenue (down 19%) and other income. The provision for credit losses fell 23% to $362 million, and net charge-offs declined to 0.70% of average loans from 0.98%. Noninterest expense dropped 1.7%, helped by the absence of the prior-year Visa accrual. Balance sheet growth was modest. Period-end loans rose 2.1% to $228.0 billion, led by residential mortgages, commercial and commercial real estate loans, while deposits grew 1.0% to $251.6 billion. Nonperforming assets fell 14.8% to $2.3 billion, and the allowance for credit losses covered 2.02% of period-end loans. Capital strengthened: Tier 1 capital rose to 11.1%, and the Basel III Tier 1 common ratio estimated under the July 2013 final rules was 8.6%. Management also raised the quarterly dividend 18% to $0.23, and repurchased about 17.9 million shares during the quarter under a $2.25 billion authorization. For investors, the key takeaways are improving credit quality and capital return, offset by pressure on top-line revenue from the lower-rate environment and softer mortgage banking. Management expects nonperforming assets and net charge-offs to remain relatively stable in Q3 2013.

    Aug 7, 2013
  41. 2013-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2013

    U.S. Bancorp reported first-quarter 2013 net income attributable to U.S. Bancorp of $1.4 billion, or $.73 per diluted common share, up from $.67 a year earlier. Return on average assets rose to 1.65% from 1.60%, while return on average common equity eased to 16.0% from 16.2%. Earnings growth came mainly from a sharp drop in credit costs: the provision for credit losses fell 16.2% to $403 million, and net charge-offs declined to $433 million (0.79% of average loans) from $571 million. Noninterest expense also fell 3.5% to $2.47 billion, helped by lower litigation, regulatory, and insurance-related costs. Top-line trends were mixed. Total net revenue slipped 1.1% to $4.87 billion as noninterest income declined 3.5%, driven by a 11.3% drop in mortgage banking revenue and lower other income. Net interest income rose 0.7% to $2.7 billion, but net interest margin compressed to 3.48% from 3.60% as higher-yielding assets were replaced by lower-yielding securities and loans. Average loans grew 5.8% year over year, led by residential mortgages and commercial lending, and deposits grew 7.3%. Asset quality and capital both improved. Nonperforming assets fell 9.9% to $2.4 billion, and the allowance for credit losses was $4.7 billion, or 2.11% of loans. Tier 1 capital rose to 11.0% of risk-weighted assets, and Tier 1 common equity under Basel I was 9.1%. The company repurchased $500 million of common stock in the quarter and approved a new $2.25 billion buyback for April 2013 through March 2014.

    May 3, 2013
  42. 2012-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2012

    U.S. Bancorp reported a strong third quarter of 2012, with net income attributable to U.S. Bancorp of $1.47 billion, or $0.74 per diluted share, up from $0.64 in the third quarter of 2011 (up 15.8% in net income). Return on average assets was 1.70% and return on average common equity was 16.5%. For the first nine months, net income was $4.2 billion, or $2.12 per diluted share, versus $1.77 a year earlier. Total net revenue rose 8.0% in the quarter, driven by a 6.1% increase in net interest income and a 9.9% increase in noninterest income, the latter led by a 2.9x jump in mortgage banking revenue to $519 million. Noninterest expense grew 5.4%, while the provision for credit losses fell 6.0% to $488 million, below net charge-offs of $538 million. Credit quality continued to improve. Net charge-offs fell to 0.99% of average loans from 1.31% a year earlier, nonperforming assets declined 24.9% year over year to $2.8 billion, and the allowance for credit losses covered 2.19% of period-end loans. Loans grew 4.0% year to date to $218.2 billion, led by commercial loans, residential mortgages and commercial real estate, while deposits rose 5.8% to $244.2 billion, with noninterest-bearing deposits up 6.4%. Net interest margin compressed to 3.59% from 3.65% as the company held more lower-yielding securities; investment securities grew to $74.1 billion, including $11.7 billion of agency MBS moved to held-to-maturity. Capital strengthened over the period. Tier 1 common equity to risk-weighted assets under Basel I was 9.0%, and the company's estimated Basel III standardized ratio was 8.2%. The dividend was raised 56% to $0.195 per quarter in March, and the company repurchased 17.1 million shares in the quarter under a 100 million share authorization. Among one-time items, the quarter included a gain on a credit card portfolio sale, an equity-method investment charge, and $54 million of incremental charge-offs tied to a regulatory clarification on bankruptcy-discharged consumer loans; together these had no net impact on diluted EPS.

    Nov 5, 2012
  43. 2012-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2012

    U.S. Bancorp reported second-quarter 2012 net income attributable to the company of $1.4 billion, or $.71 per diluted share, up from $.60 a year earlier, with return on average assets of 1.67% and return on average common equity of 16.5%. Total net revenue rose 8.1% to $5.07 billion, driven by a 6.6% increase in net interest income and a 10.2% increase in noninterest income, the latter largely from mortgage banking revenue. Credit quality continued to improve: the provision for credit losses fell 17.8% to $470 million, net charge-offs dropped to $520 million from $747 million, and nonperforming assets declined 19.7% year over year to $3.0 billion. Expenses grew faster than the top line in the quarter, with noninterest expense up 7.3% to $2.6 billion, reflecting higher compensation, professional services tied to mortgage servicing reviews, and a Visa litigation accrual. The efficiency ratio was roughly flat at 51.1%. Balance sheet growth was broad, with loans up 3.0% since year-end to $216.1 billion and deposits up 4.5% to $241.3 billion, while investment securities grew 4.4% as the company built on-balance sheet liquidity. Capital strengthened: Tier 1 common equity under Basel I rose to 8.8%, and the company raised its quarterly dividend 56% to $.195 per share and authorized a 100 million share repurchase program, of which 12.9 million shares were bought back in the quarter. Key watch items include a sharp drop in debit card interchange revenue from recent legislation (an estimated $81 million impact in the quarter), impairment charges on perpetual preferred securities after money center bank downgrades, the Visa litigation accrual, and the company's expectation of modestly lower net charge-offs and nonperforming assets in the third quarter.

    Aug 3, 2012
  44. 2012-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2012

    U.S. Bancorp reported a strong first quarter of 2012, with net income attributable to U.S. Bancorp of $1.3 billion, or $.67 per diluted share, up 28.8% from $.52 a year earlier. Return on average assets rose to 1.60% from 1.38%, and return on average common equity rose to 16.2% from 14.5%. Growth was driven by net interest income up 7.3% to $2.7 billion, noninterest income up 11.3% to $2.2 billion (led by mortgage banking revenue, which more than doubled to $452 million), and a 36.3% decline in the provision for credit losses to $481 million as net charge-offs fell to 1.09% of average loans from 1.65%. Noninterest expense rose 10.6% to $2.6 billion, reflecting higher compensation, benefits, and marketing costs, so the efficiency ratio edged up to 51.9% from 51.1%. Credit quality continued to improve. Total nonperforming assets declined 8.5% to $3.5 billion, and nonperforming assets excluding covered assets fell 5.9% to $2.4 billion. The allowance for credit losses covered 214% of annualized net charge-offs. Management expects nonperforming assets and net charge-offs to trend modestly lower in the second quarter of 2012. Loans grew 1.0% sequentially to $211.9 billion, led by commercial loans, while deposits rose 1.2% to $233.6 billion. Average noninterest-bearing deposits grew 43.9% year over year, which supports lower-cost funding. Capital strengthened over the quarter. Tier 1 capital reached 10.9%, and Tier 1 common equity under Basel I was 8.7%, up from 8.6%. The anticipated Basel III Tier 1 common ratio was 8.4%. The Board raised the quarterly dividend 56% to $.195 per share and authorized repurchases of up to 100 million shares through March 2013. The company repurchased 16.3 million shares in the quarter. Investors should note the company's sizable investment securities growth ($74.3 billion, up 4.9%), which the filing attributes to on-balance-sheet liquidity purchases in anticipation of regulatory requirements, and the continued exposure to residential mortgage and non-agency MBS stress.

    May 7, 2012
  45. 2011-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2011

    U.S. Bancorp reported third-quarter 2011 net income attributable to the company of $1.27 billion, or $.64 per diluted share, up 40.2% from $908 million, or $.45, a year earlier. Return on average assets rose to 1.57% and return on average common equity to 16.1%. Total net revenue grew 4.5% to $4.8 billion, driven by a 5.9% increase in net interest income, while noninterest income rose 2.9%. The headline improvement was credit: the provision for credit losses fell 47.8% to $519 million, below net charge-offs of $669 million, as net charge-offs dropped to 1.31% of average loans from 2.05% a year earlier. Nonperforming assets declined 14% from year-end 2010 to $4.3 billion, and management expects further declines and lower net charge-offs in the fourth quarter. The balance sheet grew meaningfully. Total assets reached $330.1 billion, deposits rose to $222.6 billion (up 9% year to date, with noninterest-bearing deposits up 41.7%), and loans increased 3.9% to $204.8 billion, led by commercial lending. Investment securities jumped 29% to $68.4 billion, largely held-to-maturity Treasury and agency MBS bought to build on-balance-sheet liquidity ahead of anticipated regulatory requirements. Capital strengthened, with Tier 1 common equity under Basel I at 8.5% (up from 7.8%) and the anticipated Basel III ratio at 8.2% (up from 7.3%). Net interest margin compressed to 3.65% from 3.91%, reflecting the shift toward lower-yielding securities and cash held at the Federal Reserve. Key risks flagged include the Durbin Amendment, which management estimates will reduce noninterest income by roughly $300 million annually starting in Q4 2011; the Consent Orders with the OCC and Federal Reserve over mortgage servicing and foreclosure practices; open checking-overdraft fee litigation; and continued stress in commercial real estate and residential mortgage portfolios, where nonperforming assets remain elevated.

    Nov 4, 2011
  46. 2011-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2011

    U.S. Bancorp's second-quarter 2011 Form 10-Q shows a strong earnings rebound. Net income attributable to U.S. Bancorp was $1.2 billion, or $.60 per diluted share, up from $766 million, or $.45, a year earlier. Return on average assets rose to 1.54 percent from 1.09 percent, and return on average common equity rose to 15.9 percent from 13.4 percent. The main driver was a sharp decline in the provision for credit losses, which fell 49.8 percent to $572 million, with net charge-offs down to $747 million from $1.1 billion. Total net revenue grew 3.8 percent, with net interest income up 5.6 percent on earning-asset growth and lower-cost core deposit funding, partly offset by a lower net interest margin of 3.67 percent versus 3.90 percent. Noninterest expense rose 2.0 percent. Credit quality continued to improve. Nonperforming assets fell to $4.7 billion from $5.0 billion at year-end 2010, and excluding covered assets declined to $3.3 billion. Accruing loans 90 days or more past due dropped 26.5 percent excluding covered loans. Management expects nonperforming assets and net charge-offs to trend lower in the third quarter of 2011. The company also flagged headwinds, including an anticipated reduction of roughly $300 million in annualized noninterest income from the Durbin Amendment and a Consent Order with federal banking regulators over residential mortgage servicing and foreclosure processes. Capital and liquidity strengthened. Tier 1 capital was 11.0 percent, total risk-based capital 13.9 percent, and the Tier 1 common equity ratio under Basel I 8.4 percent (anticipated Basel III 8.1 percent), all above well-capitalized requirements. Deposits grew to $214.9 billion, and investment securities rose 23.8 percent to $65.6 billion as the company built on-balance-sheet liquidity in anticipation of regulatory requirements. The company also issued $676 million of perpetual preferred stock and repurchased about 2.5 million common shares in the quarter.

    Aug 8, 2011
  47. 2011-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2011

    U.S. Bancorp (USB) reported a strong first quarter of 2011, with net income attributable to the company of $1.0 billion, or $.52 per diluted share, up from $669 million, or $.34 per diluted share, a year earlier. Return on average assets rose to 1.38% from .96% and return on average common equity rose to 14.5% from 10.5%. The improvement was driven mainly by a 42.4% decline in the provision for credit losses to $755 million, which came in $50 million below net charge-offs. Total net revenue grew 4.6% to $4.5 billion, with net interest income up 4.3% and noninterest income up 3.3%. Results were partly helped by a $46 million gain from the FDIC-assisted acquisition of First Community Bank of New Mexico and a Visa-related gain. Noninterest expense rose 8.3%, mainly from compensation, benefits and pension costs. Credit quality continued to improve. Net charge-offs fell to $805 million from $1.1 billion, and total nonperforming assets were flat at $5.0 billion. Excluding covered assets, nonperforming assets rose to $3.5 billion from $3.4 billion, largely due to the FCB acquisition, while management expects nonperforming assets and net charge-offs to trend lower in the second quarter. The balance sheet grew, with total assets reaching $311.5 billion and deposits $208.3 billion, while the net interest margin compressed to 3.69% from 3.90% because of growth in lower-yielding securities and Federal Reserve cash balances. Capital strengthened meaningfully. Tier 1 common equity under the Basel I definition rose to 8.2% from 7.8%, and the anticipated Basel III ratio was 7.7%. The board raised the quarterly dividend 150% to $.125 per share from $.05 and approved a new repurchase authorization of up to 50 million shares through December 31, 2011. Investors should note an April 13, 2011 consent order with bank regulators over residential mortgage servicing and foreclosure practices, and a pending checking account overdraft fee litigation, though management does not expect the foreclosure matter to be materially adverse.

    May 6, 2011
  48. 2010-Q3

    US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2010

    U.S. Bancorp reported a strong third quarter of 2010, with net income attributable to U.S. Bancorp of $908 million, or $.45 per diluted share, up from $603 million, or $.30 per diluted share, a year earlier. Return on average assets rose to 1.26 percent and return on average common equity to 12.8 percent. Results were driven by 14.8 percent growth in net interest income, fueled by lower-cost core deposit funding and a higher net interest margin of 3.91 percent, along with a sharp 31.7 percent decline in the provision for credit losses to $995 million. Net charge-offs fell year over year in the quarter, and the provision equaled net charge-offs, versus a $415 million excess reserve build a year earlier. Offsetting these gains, noninterest expense rose 16.2 percent to $2.4 billion, largely due to acquisitions, higher compensation and benefits, and costs tied to affordable housing and other tax-advantaged investments. Noninterest income was roughly flat, as payments, commercial products, and mortgage banking revenue growth was offset by a 37.5 percent drop in deposit service charges following overdraft policy revisions. Credit quality showed continued improvement: nonperforming assets excluding covered assets declined 8.7 percent year to date to $3.6 billion, and management expects them and net charge-offs to trend lower in the fourth quarter. Capital strengthened, with Tier 1 common equity to risk-weighted assets rising to 7.6 percent from 6.8 percent, and all regulatory ratios exceeding well-capitalized requirements. Looking ahead, the filing flags meaningful regulatory risk from the Dodd-Frank Act, which management expects to weigh on revenues and expenses once fully implemented, particularly through debit interchange regulation and changes to the deposit insurance assessment base. The company cannot yet quantify the impact. Investors should weigh the strong earnings momentum and improving credit trends against this regulatory headwind and the continued stress in residential mortgage and credit card portfolios.

    Nov 8, 2010
  49. 2010-Q2

    US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2010

    U.S. Bancorp (USB) reported second-quarter 2010 net income attributable to U.S. Bancorp of $766 million, or $0.45 per diluted share, up from $471 million ($0.12) a year earlier, with ROA of 1.09% and ROE of 13.4%. Results were helped by a sharp drop in the provision for credit losses (down 18.4% to $1.1 billion) and by 14.5% growth in net interest income, driven by low-cost core deposit growth, a net interest margin of 3.90% (vs. 3.60%), and acquisitions such as FBOP. Noninterest income rose only 2.7%, and noninterest expense rose 11.6% to $2.4 billion, reflecting acquisitions, higher compensation, and tax-advantaged investment costs. The second-quarter EPS included a one-time $0.05 benefit from the ITS exchange, plus a $28 million Visa gain, partly offset by $21 million of securities losses. Credit quality remains the central issue. Net charge-offs were $1.1 billion (2.34% of average loans annualized), and nonperforming assets, excluding covered assets, fell modestly to $3.7 billion. Total nonperforming assets were $5.9 billion, unchanged from year-end, with covered assets making up a growing share. Management expects nonperforming assets and net charge-offs to trend lower in the third quarter. Capital ratios strengthened: Tier 1 capital rose to 10.1%, Tier 1 common equity to 7.4% (from 6.8%), and tangible common equity to tangible assets to 6.0% (from 5.3%). Shareholders' equity increased to $28.2 billion, and the company remains well capitalized. The filing also flags regulatory risk from the Dodd-Frank Act, signed July 21, 2010. Management estimates roughly $200 million in added annual FDIC assessments and expects a detrimental effect on revenues and expenses once rules are implemented. Tier 1 capital will also lose the benefit of trust preferred instruments, currently worth about 1.4 percentage points of Tier 1 ratio, phased in from 2013.

    Aug 6, 2010
  50. 2010-Q1

    US BANCORP \DE\ Quarterly Report for Q1 Ended Mar 31, 2010

    U.S. Bancorp (USB) reported net income attributable to U.S. Bancorp of $669 million, or $.34 per diluted share, for the first quarter of 2010, up from $529 million, or $.24 per diluted share, a year earlier. Return on average assets was .96% and return on average common equity was 10.5%, compared with .81% and 9.0% in Q1 2009. Results were supported by a 14.7% rise in taxable-equivalent net interest income to $2.4 billion, driven by growth in average earning assets and lower-cost core deposits, and by higher payments-related and commercial products revenue. Net securities losses narrowed to $34 million from $198 million, which also helped the year-over-year comparison. Q1 2009 included a $92 million corporate real estate gain that does not recur. Credit quality remains the central investor issue. The provision for credit losses was $1.3 billion, roughly flat year over year, and exceeded net charge-offs of $1.1 billion by $175 million as the company continued to build its allowance. Total nonperforming assets rose to $6.4 billion from $5.9 billion, though excluding FDIC-covered assets they were $4.0 billion, up 2.3%. Management said delinquencies declined across major loan categories versus the prior quarter and expects nonperforming assets and net charge-offs excluding covered assets to remain relatively stable in Q2 2010. Covered loans from FDIC-assisted acquisitions (Downey, PFF, FBOP) grew to an average of $21.4 billion, and their nonperforming balances are substantially shielded by loss-sharing agreements. Capital strengthened over the period. Tier 1 common equity to risk-weighted assets rose to 7.1% from 6.8%, tangible common equity to tangible assets reached 5.6% from 5.3%, and all regulatory ratios exceeded well-capitalized thresholds. Total U.S. Bancorp shareholders' equity increased to $26.7 billion. Efficiency deteriorated modestly, with noninterest expense up 14.2% to $2.1 billion on acquisition costs, higher FDIC deposit insurance, and affordable-housing investments. The company still has a 20 million share repurchase authorization, though repurchases in the quarter were limited to employee-benefit administration.

    May 7, 2010