10-QPeriod: Q1 FY2018

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

Filed May 3, 2018For Securities:USBUSB-PHUSB-PPUSB-PRUSB-PQUSB-PSUSB-PA

Summary

US BancORP (USB) filed its quarterly report for the period ending March 30, 2018. The filing primarily directs investors to previously filed documents for detailed information on legal proceedings, risk factors, and unregistered equity sales. Notably, the report includes Exhibit 12, which details the computation of the ratio of earnings to fixed charges. This exhibit shows a net income of $1,675 million for the three months ended March 31, 2018. Investors should be aware that significant legal and regulatory matters were addressed in February 2018, as indicated by various exhibits referencing agreements with the U.S. Attorney’s Office for the Southern District of New York, the Office of the Comptroller of the Currency, the Financial Crimes Enforcement Network, and the Board of Governors of the Federal Reserve System. While these exhibits do not provide full details within this 10-Q, they signify ongoing regulatory scrutiny and potential impacts on the company's operations and reputation.

Financial Highlights

34 data points
Beta

Revenue

$5.47B

Net Income

$1.68B

30.6% Net Margin

EPS (Diluted)

$0.96

Total Assets

$460.12B

Free Cash Flow

$1.43B

Financial Statements
Beta
Revenue$5.47B
Interest Expense$623.00M
Net Income$1.68B
EPS (Basic)$0.97
EPS (Diluted)$0.96
Shares Outstanding (Basic)1.65B
Shares Outstanding (Diluted)1.66B

Key Highlights

  • 1The report for the period ending March 30, 2018, primarily refers investors to other filings (10-K, 8-K) for comprehensive details on legal proceedings, risk factors, and equity transactions.
  • 2Exhibit 12 provides the Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends for the three months ended March 31, 2018.
  • 3Net income attributable to U.S. Bancorp for the three months ended March 31, 2018, was $1,675 million.
  • 4The company's ratio of earnings to fixed charges, excluding interest on deposits, was 7.64, and including interest on deposits was 4.12 for the quarter.
  • 5The ratio of earnings to fixed charges and preferred dividends, excluding interest on deposits, was 6.22, and including interest on deposits was 3.72 for the quarter.
  • 6The filing references several significant legal and regulatory settlements/agreements executed in February 2018 with various governmental bodies, including the U.S. Attorney’s Office for the Southern District of New York, OCC, FinCEN, and the Federal Reserve.
  • 7The report includes standard certifications from the CEO and CFO regarding the accuracy of financial reporting.

Frequently Asked Questions

For the three months ended March 31, 2018, US BancORP reported a net income attributable to the company of $1,675 million. The company also reported a strong ratio of earnings to fixed charges, both excluding and including interest on deposits, indicating a solid ability to cover its interest obligations.

This filing references several significant legal and regulatory actions that US BancORP and its subsidiary U.S. Bank entered into during February 2018. These include a Deferred Prosecution Agreement with the U.S. Attorney’s Office for the Southern District of New York, and consent orders or stipulations with the Office of the Comptroller of the Currency (OCC), the Financial Crimes Enforcement Network (FinCEN), and the Board of Governors of the Federal Reserve System. The specific details of these matters are found in previously filed 8-K reports.

This 10-Q filing primarily directs investors to refer to the company's Annual Report on Form 10-K for the year ended December 31, 2017, for a discussion of risk factors. Detailed financial statements and notes are also available in the Consolidated Financial Statements included in Part I, Item 1 of this report, and are formatted in eXtensible Business Reporting Language (XBRL).

The filing indicates that information regarding shares repurchased by the company during the first quarter of 2018 can be found in the 'Capital Management' section within Management’s Discussion and Analysis in Part I, Item 2 of this report.